Savings

More households are turning to savings and investments

MANILA, Philippines – More Filipino households, including Filipino Overseas Workers (OFW) recipients, turned to savings and investments in the first quarter, according to quarterly survey results from Bangko Sentral. ng Pilipinas (BSP).

Based on the Consumer Expectations Survey (CES) for the first quarter of 2022, the percentage of households with savings increased to 31.1% in the first quarter from 30.2% in the fourth quarter of the year last.

“According to respondents, they saved money for emergencies, health and medical expenses, retirement, education, capital and business investment,” the BSP said.

Similarly, the percentage of households with savings accounts in banks also increased to 71% from 68.9% in the previous quarter.

However, about 44.8% of respondents kept their savings at home, while 36.6% considered other institutions such as cooperatives, paluwagan, credit or loan associations, investments and other institutions , including microfinance and insurance, for safekeeping their savings.

When asked if households would put money aside to save, the percentage of respondents saying yes fell to 32% from 34.4% in the fourth quarter of last year.

In particular, the percentage of those who would put less than 10% aside for their savings fell to 64.8% from 67.6% a quarter earlier.

On the other hand, the proportion of those who would set aside at least 10% of their gross monthly family income for savings rose from 32.4% to 35.2%.

According to the survey, Filipino consumers expect lower unemployment, higher interest rates and further depreciation of the peso. They also expect inflation to exceed the BSP’s 2-4% target.

Meanwhile, survey results showed the percentage of households receiving OFW remittances turning to savings rose to 38% in the first quarter from 31.7% in the fourth quarter of the year. last.

Similarly, the percentage that turned to investments also fell from 9.2% to 10.9%.

“The number of OFW households that either set aside their remittances for savings or invested some increased in the first quarter of 2022,” the BSP said.

In terms of the pattern of remittance use by region, a higher percentage of OFW households in the National Capital Region (NCR) earmarked a portion of their remittances for food and other household needs. household, medical expenses, debt repayment, savings, buying a house and buying a house. investments as opposed to their counterparts in areas outside the NCR.

The survey of 5,000 households was conducted from March 21-31.