A friend once told me she lent another friend money for a small business idea. It was a verbal agreement — no contract, no clear timeline, just trust. The business failed, and so did their friendship. The borrower now acts as if the debt never existed. The anger my friend felt wasn’t about the financial bounty she lost. It was a repetitive story that many Filipinos can relate to; the culture of informal lending, lack of planning, and almost no sense of financial accountability. That sequence, unfortunately, mirrors deeper issues in our everyday Filipino money behavior.
Many Filipinos are quick and confident when asking for financial help, often appealing to friendship, or emotional urgency. But once the crisis has passed, many borrowers fail to honour their payment promises, delaying repayment or avoiding the lender altogether. On the other side, those who lend money become hesitant to follow up, fearing that reminders may be taken as offensive or could trigger hostility.
Growing up, my mother had to borrow money from formal institutions like Banco Davao to support our studies and daily expenses, while my father turned to exploitative unlicensed money lenders to keep his small business afloat.
Besides keeping a small coconut bank supposedly to store our spare change, we learned little to nothing about financial literacy at home and in school. My aunt helped set up my first deposit account at Metrobank on my first day at the university, but even then, I haven’t appreciated the value of saving up for the future. In school, we learned Algebra, Differential Equations, and other branches of mathematics, yet financial concepts were treated merely as footnotes or sample problems, like calculating compound interest, without ever exploring their deeper significance as tools of real fiscal power.
According to a Standard & Poor’s survey, only about 25% of Filipino adults are financially literate — one of the lowest rates in Southeast Asia. Around 23% had a bank account in 2023, trailing the global 76% average. Even with wider financial access, capability has lagged — people open accounts but still struggle to budget or invest wisely. Meanwhile, the Philippines received US$37 billion in remittances in 2023 — a lifeline that often fuels spending rather than long-term savings.
Table of Contents
Poor money habits
Many Filipinos have poor money habits, based on both formal surveys, and anecdotal evidence from personal accounts of friends like the above.
1. Spending-first mindset among youth
Many young Filipinos prioritise spending over saving, often influenced by lifestyle trends and social pressure. New gadgets, frequent café visits, and online shopping are treated as “essentials.” For example, a student may buy the latest iPhone through instalments instead of setting aside money for emergencies or long-term goals.
2. Heavy dependence on remittances
Some families rely almost entirely on their OFW relatives to cover daily expenses, from groceries to school fees. This dependence discourages developing local income streams or skills. For instance, instead of starting a small sari-sari store or part-time work, households wait for monthly remittance deposits to stay afloat.
3. Low formal investment participation
Only a small portion of Filipinos invest in insurance, mutual funds, or stocks, often due to fear, lack of knowledge, or belief that investing is only for the rich. As a result, many of them keep savings in low-interest bank accounts, missing opportunities for wealth growth, like earning dividends or compound returns. Some Filipinos, sadly are quick to try get-rich-quick “investments” that are either multilevel marketing that are not sustainable or outright fraudulent transactions masqueraded by personalities who flout wealth on social media.
4. Acceptance of informal borrowing
Borrowing without clear terms—common in barkada circles or barangay neighbours—creates confusion and conflict. People lend money based on trust, with no repayment schedule or interest agreement. For example, someone may borrow ₱2,000 “for now,” but delay repayment for months, straining relationships and disrupting personal budgets.
This isn’t exclusive to Filipinos back in the country, of course. I had people approach me randomly borrow money for bus fare because they forgot their wallet or someone make a discreet request for favor to fund their bank account as a requirement for entry to Canada or Italy as a cross-country worker.
The apparent lack of regard for financial security shown through aversion to stock investment or insurance policies can have devastating impact. Many end up trapped in a vicious debt cycle, borrowing repeatedly just to stay above the water. Others are forced to seek help from relatives or even coworkers to cover unexpected hospital bills. In some cases, unpaid debt tarnishes not only their credit ratings but also long-standing friendships as we occasionally observe on Facebook rage posts.
If money lending has become a chronic habit for the grown ups, younger Filipinos can reverse this trend with early exposure to responsible wealth management. Embedding age-appropriate financial education into the Filipino curriculum can strengthen household stability, reduce reliance on debt, and help young Filipinos make informed, long-term financial choices.
What schools teach and the areas of opportunity
DepEd’s K–12/MATATAG revision already includes elements of financial education. However, most of it sits in subjects like Edukasyong Pantahanan at Pangkabuhayan, Technology and Livelihood Education, or math — often theoretical and not linked to real-life applications like budgeting or credit use. The intent is there, but the approach is uneven. While it’s good to include Technology and Livelihood Education, which helps prepare students to enter the job market, I wish there was also a similar weight placed on fiscal awareness and money management.
This is helpful in many aspects of Filipino life.
Emergency resilience
Building emergency savings helps families avoid high-interest borrowing when crises strike. Whether it’s a sudden job loss, medical emergency, or urgent home repair due to floods or typhoons, having even three months’ worth of expenses prevents people from turning to loan sharks, payday lenders, or informal “5–6” lending that quickly traps households in escalating debt.
Responsible borrowing
Promoting responsible borrowing discourages the common Filipino “loan without record” culture, where money is lent based purely on trust with no terms or accountability. This practice often leads to misunderstandings, delayed payments, and broken relationships. When people follow proper agreements such as clear repayment schedules and written terms, they protect both their finances and their personal ties.
Remittance productivity
Redirecting OFW remittances toward productive uses transforms them from survival funds into tools for growth. Instead of being spent on short-term wants, remittances can support education, small businesses, or long-term investments like insurance and mutual funds. This creates more stable income sources at home and reduces overdependence on overseas work. OFW relatives will become more appreciative of such initiatives.
Intergenerational benefits
Early exposure to sound financial habits creates lasting behavioural patterns. Children who see their parents budgeting, saving, or investing grow up understanding money not as something to spend instantly, but to manage wisely. These learned behaviours compound over time, leading to more stable futures and healthier attitudes toward debt and saving.
National gains
A financially literate population strengthens the country as a whole. When more citizens invest formally, capital markets deepen, businesses gain more funding, and economic growth accelerates. At the same time, fewer people relying on emergency government assistance reduces fiscal pressure, allowing public funds to be redirected toward development programs and infrastructure. Of course, the national government needs to play a role model, through elimination of corruption and efficient budget spending.
Many overseas countries demonstrate how structured, consistent financial education can transform behaviour. In Singapore, programs like MoneySense and CPF outreach integrate money lessons from early childhood, blending values-based teaching, digital tools, and hands-on classroom activities.
Australia’s MoneySmart program similarly embeds financial topics across all subjects, equipping teachers with training and ready-to-teach kits so implementation is uniform nationwide. The shared insight is clear: when a curriculum is consistent, teachers are well-trained, and students engage in practical, real-life tasks, financial education produces measurable long-term impact.
Even within our own formation at Missionary Families of Christ, financial stewardship is taught as part of Christian living, rooted in biblical principles such as Luke 16:10, which emphasises faithfulness in managing resources. This stewardship mindset promotes generosity, helping families experience the spiritual and practical benefits of giving like stronger community ties, a grateful heart, and God’s provision in times of need.
“The wise store up choice food and olive oil, but fools gulp theirs down.” (Proverbs 21:20)
“The borrower is slave to the lender.” (Proverbs 22:7)
These verses remind us that financial prudence is both a moral discipline and an act of foresight.
So, how do we integrate this financial literacy into the Filipino classroom?
Primary (Grades 1–6)
Teach needs vs wants, saving basics, and delayed gratification through activities and stories. Use local examples: building a coconut piggy bank, managing baon/allowance, or thrift stories.
Junior High (Grades 7–10)
Lessons in budgeting, digital payments, basic consumer rights. A “class micro-market” can teach planning, cost, and profit.
Senior High (Grades 11–12)
Modules may include banking, credit, insurance, taxes, and investment basics. Exposure to real-world situations such as how the Philippine Stock Market works and how peso-dollar exchanges impact not just remittance value but the economy.
Cross-cutting features of an effective financial literacy program include strong teacher training delivered through BSP–DepEd partnerships, hands-on activities such as family budget plans and mock investment exercises, and parent-community mentoring that reinforces lessons at home.
However, implementation comes with challenges. Teacher capacity can be addressed through modular professional development and accessible online resources. Uneven access to devices or internet can be solved by offering both high-tech and low-tech versions, from apps to paper simulations or even guided visits to local banks.
There may be cultural resistance to discussing money but this can be eased by integrating values, ethics, and communication skills into lending and borrowing lessons. By using relatable role-play scenarios—like negotiating repayment terms or handling peer pressure around debt, students learn not only financial principles but also respect, responsibility, and healthier ways to navigate money-related conflicts.
Imagine a future Philippines where families keep three months of emergency savings, OFWs invest part of remittances back home, and more citizens open formal savings or investment accounts. Fewer people live paycheck to paycheck, and social lending among relatives becomes documented and respectful, not a source of resentment.
If that friend who lost money had grown up learning how to write simple contracts, plan contingencies, and talk about money without shame, that painful story might have ended differently. Without reform, countless more repeat the same scene — trust misplaced, debts unpaid.
The cure isn’t a law or a lecture; it’s a lesson plan — one that starts early, grows with every grade, and equips Filipinos not just to earn, but to think, plan, and act wisely with every peso they hold.