In most societies, there are two ways to end a conversation: bring up religion or politics. However, in the Philippines, the topic guaranteed to have dinner party guests make an early exit is money. Even in 2023, discussing money is culturally taboo in the Philippines – much to the detriment of the nation’s youth.

Out of fear of being branded greedy or mukhang pera in Tagalog, Filipino households and schools rarely discuss their salaries, money troubles or even basic financial advice. And this is holding young Filipinos back from making informed decisions on day-to-day spending, savings, credit cards and life-changing investments.

Unfortunately, the Philippines now sits in the bottom 30 out of 144 countries for global financial literacy. This is alarming for a nation whose youths rarely have sufficient savings to help them in the event of a job loss. As such, it is hardly surprising that borrowing money is the main resource for Filipinos to meet all their needs.

Lacking trustworthy educational sources, young Filipinos have to rely on Facebook and other informal outlets to learn about finance. These unregulated networks leave people vulnerable to reckless advice, predatory lenders and potential scams.

However, with the right education, young Filipinos can avoid some of the biggest financial missteps while empowering them to understand everything from budgeting, saving and investing like a professional.

Also Read: Algorithmic trading: The engine powering fintech’s financial revolution

Knowledge is not only helping the Philippines; Generation Z is building a safety net and boosting their mental health. Poor financial security is a significant contributor to poor mental well-being across the world, especially in a climate of high inflation and economic uncertainty.

With financial stability and security having an overwhelmingly positive impact on mental health, young people are much better positioned to achieve long-term goals.

Financial literacy requires time and effort, but it doesn’t necessarily mean getting an economics degree. Rather, now, it can be done with a few simple clicks.

The role of tech

In 2023, the Philippines’ technological and smartphone revolution is well underway, meaning young people have more resources at their fingerprints to understand the financial landscape. Among these are technology applications that are designed specifically for the needs of the Filipino population, both at home and abroad.

The Philippines’ traditional banks have largely remained hesitant to invest in a digital banking ecosystem, but app-based payment services such as GCash and Maya are helping accelerate this market at a rapid pace. Financial technology has meanwhile enabled millions of Filipinos working abroad to send remittance money home, an enormous contributor to the nation’s economy.

Also Read: Startups impacted by the rise of embedded finance in Southeast Asia

On a day-to-day basis, apps help Filipinos lacking banking services to enter the digital payments economy, providing them with better visibility and empowering them to make more informed purchase decisions.

Technology enhances financial education by providing accessible and engaging platforms. Money management apps, such as Lista in the Philippines, excel at this by offering intuitive interfaces that make financial planning enjoyable and easy to understand, especially for young users. This accessibility helps promote financial literacy.

While previous money management and budgeting tools have used tedious spreadsheets, today’s tools are much more user-friendly. Instead of requiring constant manual inputs and updates, today’s apps can leverage data on file to help track expenses, savings and debt. Push notifications alert users to direct debits and payments due, thereby eliminating unnecessary charges and protecting credit scores.

Loans and credit cards can also be managed through financial planning apps when synced with personal bank accounts. Users, therefore, gain a more in-depth picture of their spending habits, assets portfolio and credit score.

Last but not least, in the Philippines market, there are buy-now-pay-later apps, which allow people to make necessary buying decisions conveniently, form a cohesive payment plan, and remain up to date with essential bills and payments.

The Philippines’ economy has a promising future. This year, the nation recorded its strongest economic growth in more than 40 years, with banking revenue projected to triple by 2030.

Nevertheless, with 44 per cent of the Filipino adult population lacking banking access, more work is required to help the population build long-term security and a better future. And thankfully, that no longer requires an awkward conversation.

—

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic

Join our e27 Telegram group, FB community, or like the e27 Facebook page

Image credit: Canva

The post Money talks: How tech can boost Filipinos’ financial literacy appeared first on e27.