According to Standard and Poor’s (S&P) Global Financial Literacy Survey in the Philippines, only one out of four Filipinos are financially literate. We can say the unfortunate group is at risk in financial abuse – resulting victims of fraudulent investment scams. Hence, the unfortunate group should seek financial literacy.

Now, try to ask yourself. Do you belong to the financially literate Filipinos? Or are you part of the unfortunate majority?

If you are uncertain of your answer, I understand. Perhaps, you already have an idea of financial literacy. Right now, you are probably thinking of your current financial standpoint. And, you are likely justifying yourself financially secured.

Whatever that reason is, I bet clicking this post is not a coincidence. And today, you are taking another step on your financial journey:

The importance of financial literacy.

To put everything in simple terms, financial literacy is having a thorough understanding on how financial resources work. It is a vital knowledge that enables you to effectively manage your finances and attain financial goals.

Have you ever imagined yourself having financial security? I, myself, am also a huge fan of such an idea. I believe everyone wants to have that peace of mind.

One big step towards financial security is possession of the right information. Being a financially literate individual lets you:

Make smarter financial decisions.

Once you understand that money is more than just a resource to spend anything, utilizing money to work for you is my favorite agenda. Budgeting properly, prioritizing savings and investments and having good debt management are few of the financial skills you will enjoy doing.

Turning smarter financial decision as a habit will provide you an edge to attain your financial goals.

Dictate the quality of your life.

Haven’t you noticed how your emotion changes when encountering financial issues? Imagine experiencing how financial anxiety affects your daily life. It would create ripple effects on any aspect of your life, wouldn’t it? It requires being realistic on your finances and seeking professionals on finance to achieve quality life.

Having control of your financial situation and guidance from your financial consultant provides better quality of life.

Help boost the country’s economy.

When you invest in the government treasury bills/ bonds (I will discuss more on my next article), you are helping the country’s economy. You are lending your cash to the government in exchange for interest. This cash will use for government projects like building roads and bridges – resulting in more jobs to the people.

Try to picture out what would Philippines be if there will be more financial literate individuals contributing to its economy. A more progressive and flourishing country, wouldn’t it?

The list does not end here. There are a lot more reasons to justify its importance. It should be a good step to discuss more with your financial advisors.

But haven’t you noticed? If financial literacy is that important, then why spreading financial awareness is given less concern?

Here’s what I thought. If 25% of Filipinos are financial literate and 75% are not, then there’s a possibility that even those financial advocate groups may have failed to practice financial literacy themselves.

In that case, how can you expect to acquire realistic and sensible advice from someone who flunk at it in the first place? Who should you ask for financial counseling then?

I am certain most people are unaware of this but there are a few individuals, specifically the Registered Financial Planners or Registered Financial Consultants (we have this!), who spent a considerable amount of time meeting the high standards of education, experience and integrity relating to financial literacy.

Seeking guidance from an RFP or RFC is something I highly recommend for he or she will address all financial concerns. A consultation with an RFP or RFC would be a good start before he or she provides complete and comprehensive Financial Planning.

Final Thoughts:

Now that you have a good grasp of the importance of being financially literate, I’ll leave a challenge to you, my valued reader. Financial literacy is a necessary life skill you need to acquire in order to save yourself from financial distresses. And you must act now before various finance risks pile up as you age.

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