Savings

Number of households with falling savings – survey

A NATIONAL survey conducted by Bangko Sentral ng Pilipinas (BSP) showed that fewer Filipino households saved money for emergencies and other needs during the second quarter (Q2) of this year.

According to its latest survey of consumer expectations, the proportion of households with savings rose from 31.1% in the previous quarter to 29.7% in April-June.

“This was seen across all income groups. By geography, the number of savers in the NCR (National Capital Region) remained stable, but declined in the AONCR (non-NCR regions),” said he declared.

Reasons given by respondents for why they save money include emergencies, health and medical expenses, retirement, education, buying a home, and capital and investing the company.

The central bank said that “respondents with savings kept some or all of their money in various institutions.”

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The percentage of household savers who kept their money in banks rose from 71% in the previous survey to 69.3%.

Fifty percent of respondents said they kept their money at home, but 35.7% said they had consulted cooperatives, paluwagan (savings clubs), credit/loan groups, investments and other businesses, including microfinance and insurance, to protect their funds.

“When asked if households would set aside money to save in the second quarter of 2022, the percentage of respondents saying yes increased to 34.3% from 32% in the first quarter of 2022,” said BSP.

Notably, he said more people – 31.7% compared to 29.3% in the previous quarter – would spend between 5 and 9% of their monthly gross household income on savings.

The central bank also noted that the proportion of respondents who would save less than 5% of their gross monthly family income rose from 35.5% a quarter earlier to 33.5%.

Meanwhile, he said the proportion of people who would save at least 10% of their income remained stable at 34.8%, down from 35.2% in the previous survey.