COLUMN | Breaking the Piggy Bank: The Reality of the Youth’s Financial Savvy

Anybody in college will be stricken by the fact that budgeting is not a mere skill. It is a survival tool. 

Like many students, I am living on a modest weekly allowance that has to support my academic needs, daily expenses, and the occasional craving for a sweet treat. Shockingly, how tight money could get became the least of my anxieties. What perturbed me the most was how much I did not know about managing it.

It is easy to become trapped in the pitfalls of overspending when you are young and finally in charge of your finances. My first semester, I was naïve. I thought PHP 500 a week was more than enough, but this amount did not account for transportation costs, group project expenses, unplanned hangouts that can eat away at your budget, and of course; the fluctuating prices of goods. By mid-week, I’d be pondering texting my parents for “extra allowance” to keep me afloat despite my reluctance to do so. 

Humbled by that humiliating experience, I was prompted to create a Google Sheet for my budgeting. I listed fixed expenses like rent and transportation, set a weekly food allowance, and gave myself a fair fund for non-essentials. Breaking down my finances in this manner provided a clear view of my spending patterns and allowed me to plan more effectively.

At first, sticking to the plan felt restrictive, as if I were saving up coins in an alkansya without knowing their exact worth. The problem with traditional piggy banks is that they encourage blind saving, which means setting money aside without tracking the total amount or planning its use. While saving is important, financial literacy requires more than just putting money away. We need to know exactly how much we have and how it can be allocated effectively. Over time, this approach became liberating. Knowing where each peso would go gave me control over my finances and made decision-making more intentional, something I never thought a simple spreadsheet could provide.

While personal budgeting strategies like tracking expenses and setting spending limits help in managing finances, they do not exist in isolation. Many students, especially those depending on scholarships or financial aid, face challenges beyond their control that impact their financial stability.

Some of my peers rely on academic or athletic scholarships to get by, which often come with their own set of challenges. One example would be the DOST Undergraduate S&T Scholarship, whose scholars face delays in the distribution of stipends. My friend, a recipient of this scholarship, has experienced these delays and had to rely on savings and borrowed money to cover basic needs during those waiting periods. These financial uncertainties place additional stress on scholars, forcing them to choose between focusing on their academics or taking on part-time work just to stay afloat. In the long run, these disruptions could impact their performance, well-being, and even their ability to complete their degree.

As a dorming student far from home, I’ve faced the unique reality of stretching every peso. Meal prepping in bulk and relying on references like photocopied readings are only a few of the instances I exemplify “broke student core”. My roommate once shared how she stretched her stipend by walking to and from classes instead of using public transport. While individual cost-cutting methods are essential, they often serve as band-aid solutions to a larger, systemic problem. These strategies can alleviate immediate financial strain, but they are unable to address the root causes of financial insecurity. 

Beyond personal budgeting strategies, structural barriers make it difficult for many students to access formal financial services. Those from rural areas often lack access to banks or digital platforms, limiting their ability to save or invest. Expanding digital banking networks, increasing the presence of financial service kiosks in underserved areas, and promoting financial literacy programs in schools are concrete steps toward bridging this gap. Initiatives such as the BSP’s Digital Payments Transformation Roadmap aim to increase digital payment adoption, while private sector efforts, like GCash’s financial inclusion programs, provide opportunities for students to access high-interest savings accounts and affordable investment tools.

Systemic issues, such as delayed scholarship stipends and a lack of accessible savings or investment platforms, perpetuate the cycle of financial instability, especially among students and low-income families. By combining individual efforts with systemic reforms, we can create an environment where financial stability is not just a personal achievement but a societal norm, ensuring that the youth are better prepared to navigate economic challenges.

As I navigated my early financial challenges, it became clear that youth financial illiteracy is a widespread problem. Studies show that  only 25% of young Filipinos aged 15-24 have a working understanding of budgeting, saving, and investing. This lack of knowledge leaves them vulnerable to financial missteps such as impulsive spending or an overreliance on informal borrowing.

A financial inclusion study by the Bangko Sentral ng Pilipinas (BSP) found that 38% of Filipino youth rely on borrowing from friends or relatives rather than saving or seeking formal loans. One reason for this is that many young adults have limited access to formal lending institutions due to their lack of credit history or steady income. However, another key factor is impulsive spending. Without a solid understanding of budgeting, many young Filipinos struggle to distinguish between needs and wants. I have personally experienced this when, after receiving extra allowance for academic expenses, I would justify impulsive purchases under the guise of rewarding myself for a stressful week. It was only when I reviewed my spending habits that I realized how small, frequent, and seemingly harmless purchases could add up and leave me short on cash when I needed it most.

Part of this issue stems from cultural norms unique to Filipino youth. Many grow up in households where financial matters are considered taboo or solely the responsibility of elders. The traditional concept of utang na loob (debt of gratitude) can discourage discussions about money, creating a sense of obligation that often supersedes financial stability. As a result, young Filipinos may prioritize supporting family needs over personal savings, feeling indebted to the people who raised them. This makes it even more crucial to foster open financial discussions within families and integrate financial education into the school curriculum. Notably, the Philippines ranks in the bottom 30 out of 144 countries in terms of financial literacy, according to a global study cited by the BSP.

The education system also plays a role in this gap. Many students struggle with personal finance simply because no one has taught them how to manage money effectively. While the Department of Education (DepEd) mandated in 2021 that personal finance be integrated into the curriculum, it remains an optional topic rather than a core subject. If every high school student graduated with basic financial skills, the impact would be significant.

But it’s not all doom and gloom. The power to change this narrative lies in our hands. Start small by tracking your expenses, setting financial goals, and educating yourself through free online resources. Platforms like YouTube, podcasts, and even TikTok now offer valuable tips on saving and investing. However, personal efforts alone are not enough. Policymakers must prioritize making personal finance education a mandatory subject in schools to equip future generations with the knowledge they need to make informed financial decisions. Encouragingly, the BSP reported that 65% of Filipino households now have bank accounts, indicating progress in financial inclusion. By taking both individual and systemic steps, we can bridge the financial literacy gap and create a generation that is better prepared for the realities of financial independence.

Despite the challenges, Filipino youth hold immense potential to turn the tide on financial illiteracy. Our generation is uniquely positioned to leverage technology and access financial tools that previous generations could only dream of. Mobile banking apps, digital wallets, and investment platforms are more accessible than ever, breaking down barriers to entry and empowering young Filipinos to take control of their financial future. Drawing from my own experiences, opening a savings account can be done by simply filling out an online application form and verifying your identity through scanning a valid ID and biometrics. Standing as evidence, Maya Bank, a leading digital bank in the Philippines, reported having 5.4 million customers as of January 2025, reflecting the growing adoption of digital financial services. Additionally, nearly 80% of Filipinos are expected to adopt financial technology services through mobile applications by the end of 2024, according to consumer finance company Digido.  

The shift is already happening. Students are leading conversations about budgeting hacks, exploring entrepreneurship, and venturing into investments. However, financial literacy isn’t just about saving; it’s about making money work for you. Through utilizing high-interest digital banks, exploring low-risk investments, or starting entrepreneurial ventures, the youth can maximize their resources. By fostering a culture of financial responsibility and expanding these practices, we can rewrite the narrative of financial illiteracy and set an example for the generations to come. Markedly, the digital banking market in the Philippines is projected to grow significantly, with a market volume of US$2.16 billion by 2029, indicating a robust environment for financial innovation.  

Looking back, I wish pragmatic financial literacy was taught early on in school and at home. Simple lessons on budgeting, saving, and even investing could go a long way in preparing young people for adulthood. Many of us stumble through our early financial lives, learning through mistakes that could have been avoided. For instance, applying for government financial aid, like the CHED and DOST undergraduate scholarships, taught me the importance of planning and persistence in navigating bureaucratic processes.

Financial literacy is more than just knowing how to budget; it’s about making informed decisions that align with your goals and values. For me, it meant trading impulsive buys for the security of having savings, and it’s a journey I’m still on. If you’re reading this and thinking, “I’ll start tomorrow,” let me tell you—shatter the good ol’ piggy today. Your future self will thank you.