Young Filipinos have always had big dreams—but when it comes to money, many of us simply didn’t get the chance to learn the basics early on. In fact, the Bangko Sentral ng Pilipinas (BSP) says only 27% of 15–19-year-olds have a formal bank account, and just 21% are actively saving. It’s time to change that.
Start with this simple money management guide. Stick with it, and you’ll move from living paycheck to paycheck to building real financial freedom.
Money Management Basics
Confronting Reality
The first step to getting ahead is being honest about where you stand. No sugarcoating—just the truth. Right now, Filipinos in their 20s earn an average of ₱33,000, with lows around ₱19,000 and highs near ₱50,000.
Sure, these numbers depend on your industry, location, and job level. But here’s the good news: even at the lower end, you can start building something solid if you begin early and stay consistent.
Move beyond ‘Sakto Lang’
One of the biggest hurdles? Settling too soon. Many young Filipinos—especially those who started earning while studying—get stuck in the “sakto lang” mindset. It feels safe, but it holds you back.
Your goal should be steady progress. It doesn’t have to be huge leaps; small steps add up. Ask yourself regularly: Do I have enough? Where can I grow? That’s how you keep moving forward.
Watch Out for Spending Red Flags
The formula for financial security is simple: cash in should always be greater than cash out. But day-to-day spending can easily throw you off track. Emergencies and improper credit card use are common disruptors that can derail even the most disciplined savers.
One expense often leads to another, and before you know it, things feel unmanageable. While these challenges may seem inevitable, you can prepare so they don’t hit as hard.
For example, insurance is a strong safeguard against unexpected costs—it steps in when you need it most.
Likewise, drawing a clear line between needs and wants is a simple yet powerful way to keep your finances healthy.
Manage a Realistic Budget
Adaptive Budgeting
Traditional budgeting methods often feel too restrictive and fail to account for your real needs—especially for young Filipinos. The good news? There are flexible strategies that work well with typical Philippine salaries.
Need a little help? The BPI app offers a free budgeting tool that tracks your financial activity and even suggests smarter ways to invest.
Take Charge of Family Contributions
This might feel a little unconventional, but if you’re contributing most of the family budget, it’s okay to take the lead—even if that means stepping in where your parents usually decide. For breadwinners, having control over the budget isn’t about power; it’s about making sure the money works for everyone.
Yes, this can lead to some tough conversations, especially with traditional parents. But remember: a family budget only succeeds with discipline and mutual respect. Frame it as teamwork, not takeover.
Money Management: Avoiding Debt
No Saving is Too Small
Daily wage earners (arawan) find it the most difficult to save because smaller amounts are easier to spend. But even Php 500 put aside every week can have surprising effects on either savings or paying off debt.
Nothing is Easy
“Easy credit” almost always comes with a catch. Avoid unregulated lenders or anyone offering loans without collateral—they often hide fees or charge sky-high interest. That’s how they profit.
We’ve all heard horror stories: families taking new loans just to pay old ones, or dealing with relentless collectors. If something sounds too good to be true, it probably is. Protect yourself by asking questions and reading the fine print.
Money Management: Escaping Debt
Talk to Your Credit Card
Here’s a tip most young Filipinos don’t know: you can negotiate with your credit card provider. These companies want to keep you as a customer—they can’t earn if you default.
Be honest about your situation and ask what options they can offer. Sometimes, they’ll temporarily lower your interest rate. Just keep in mind this might affect your credit score. But ask yourself: what’s more important right now—getting out of debt or borrowing later?
Transfer Your Credit Balance
Banks often offer a limited-time 0% interest promo rate to attract new customers. They just require a small fee, usually a percentage of the amount you transfer to be added to the debt, to process the transfer.
This effectively suspends your interest for the period when the promo rate is effective. That gives you more time to pay off the debt without running against a clock in the background.
Aggressive Payments
Take every opportunity to pay more than the minimum rate. This requires a lot of discipline and sacrifice in the short term. But promises to end your debt status sooner.
Use Cash for Small to Medium Purchases
Here’s a simple trick: pay with cash. Physically handing over money makes you more aware of what you’re spending. Digital transactions feel detached, and that delay can lead to overspending. Cash keeps you grounded.
Protect Your Progress
Insurance, Insurance, Insurance
Ask anyone over 30, and they’ll tell you: “I wish I started insurance earlier.” Why? Because premiums are lowest when you’re young, coverage is broader, and it gives you peace of mind knowing your loved ones are protected.
Learn from their experience. Start now, and you’ll thank yourself later when you hit milestones without worrying about what-ifs.
Ready to take the next step? Talk to a Bancassurance Sales Executive today to explore insurance products tailored to your goals and secure your future.
