More Than Half of Filipinos Are Saving up for Emergency Funds

According to a survey done by global information and insights company TransUnion, more than half of Filipinos are saving up for emergency funds amid the predicted economic slowdown and continuous increase in prices of commodities.

The survey was conducted from the period of May 26 to June 7 and had a sample size of 1,005 adults. Out of the survey respondents, 56% indicated that they decided to save more money to put into their emergency funds.

The survey also showed that 43% of the respondents lessened their discretionary spending such as travel, entertainment, and dining out compared to the 22% that spent more on these activities.

TransUnion says that “This is highly attributed to the election season affecting spending and investment of both the government and private sectors,”

The inflation rate of the Philippines increased from 5.4% in May to 6.1% last June.

For 46% of the respondents, they attest that they are not able to pay at least one bill or loan in full. From this number, these people intend to use their money from their savings.

To attain their financial goals, around 96% of the respondents feel that it is vital for them to have access to credit.

Despite this high number, only 43% say that they have access to lending and credit products, with boomers at 55%, millennials at 44%, and then Gen Z at 41%.

55% or more than half of the survey respondents plan on applying for new credit or refinancing their existing credit in 2023.

“Credit can act as a catalyst for economic growth, but many consumers feel excluded or are rejected for credit because lenders can’t accurately assess their credit risk,” says TransUnion Philippines President and CEO Pia Arellano.

Source: Philstar