Being family oriented, we Filipinos usually do what it takes to help and support our family and relatives. In the process, we overlook our own needs — leaving very little for our own future. I realized that long-term, this is a win-lose solution and it’s time to change the way we think we are helping others.
We could help our family far more than the money we can give or share — by empowering them through financial literacy. And this is my personal advocacy.
If each of our family member learns to
1) set aside a certain amount of their income for savings and budgeting what is left;
2) identify purchases between ‘needs’ and ‘wants’ — and thinking twice (or 100x!) before purchasing those items under the ‘wants’; and
3) break big ticket-expenses (eg. tuition fee) into small and fixed amount then setting aside these small amounts monthly in advance (say 6 to 12 months) —
then in short term, they could avoid having to borrow money from other family members.
I also encourage my siblings, cousins and friends to try various forms of investment (eg. life insurance or mutual fund) for their long term savings– but not before setting aside their emergency fund first. Also, I refer to them deposit products that allow them to save automatically (auto-debit) and apply online for time deposit accounts when needed.
Indeed, there is no way to convince my family than practicing first what I preach. With dedication and perseverance, the good change that I am hoping for will happen — one family member at a time.
