Bless Aubrey Ogerio

MIDDLE-aged and senior Filipinos are less likely to stick to their budgets compared to younger adults, according to a study by the Bangko Sentral ng Pilipinas (BSP) Research Academy.


Drawing from the 2018 BSP Consumer Finance Survey, the research found that while the 1,803 respondents reported average savings of P17,982, significant disparities exist across age groups.

Young adults (18-39 years) typically have around P13,402 in savings, middle-aged individuals (40-59 years) average P15,935, and seniors (60 and above) have the highest savings, averaging P36,722. Despite this, older adults are more prone to overspending.

Middle-aged and senior individuals are also less likely to adhere to their budgets, even though financial literacy—measured by financial attitude and aptitude—is statistically significant. Higher financial literacy, however, does not necessarily lead to spending within one's means.

This trend may be attributed to increased consumption needs among older adults, including healthcare and family support, as suggested by a 2021 study on financial behavior.

Non-singles and higher-income individuals are better at managing their finances. The former, likely managing household expenses, are more disciplined in sticking to their budgets, while wealthier individuals are better equipped to cover their costs.

In managing debt, those with a positive financial attitude are more diligent in paying off loans on time. Other factors, however, did not significantly impact loan repayment behavior due to the smaller sample size.

Middle-aged Filipinos are more likely to have a higher loan-to-income ratio compared to younger adults, reflecting a tendency to take on more debt for major purchases. In contrast, higher-income individuals tend to maintain a lower loan-to-income ratio due to their ability to repay larger loans.

For retirement and insurance, seniors, individuals with higher education, and those with higher incomes are generally better protected financially, while females and those dependent on remittances are less likely to have insurance.

The need for tailored financial education programs for middle-aged and senior individuals was suggested. It also noted that while financial education has advanced within the K to 12 curriculum, a gap in meeting the specific needs of older adults exists.

According to the BSP’s 2021 Financial Inclusion Survey, only 29.3 percent of Filipino adults are considered financially literate. Further, a 2022 global financial literacy study by S&P Global Ratings showed that only 25 percent of Filipino adults were financially literate, placing the Philippines among the bottom 30 of 144 countries evaluated.