The value of money should be taught early on in our lives – this has been the advocacy of Sun Life Asia Service Centre-Philippines (ASCP), a company providing Business Processing, Information Technology, and Investment Research shared services to Sun Life’s global businesses.
Based on a study conducted SOLAR (Study of Lifestyles, Attitudes and Relationships) 49% of Filipinos are open to learning about managing their finances, while 51% are not open to learning it. However, being financially secure is not something that can be learned overnight. Low financial literacy could lead to financial mistakes and undesired economic consequences. Hence, it is imperative to keep worries at bay through making smart decisions when it comes to your own finances.
Dedicated to promoting financial literacy among the youth, Sun Life ASCP held a webinar entitled “Building Brighter Habits for your Future,” an initiative that encourages young Filipinos to build good financial habits. Attended by students from SOS Children’s Village and House Foundation, the virtual event was graced by certified wealth planner Teresa Joy Panganiban and Sun Life ASCP Head of Finance and Operations Dennis Bocoy.
Time is your advantage in making money
According to Panganiban, the benefit of building good financial habits at a young age is that people will have more time to save, plan their future, and expand their finances. Contrary to the belief of Filipinos, she shared that working for a company is not the only way to earn money at a young age.
“Money is everywhere and we also need to find ways to get it. Right where you are, using your resources, using your talents, you can earn money because you have access to information now,” said Panganiban.
She advised everyone to maximize the use of the internet, as it presents unlimited ways to make money from the comforts of our home. For instance, you can explore managing social media pages or groups for companies that need social media support, another would be selling your pre-loved items online, or by selling homemade food or creative crafts and putting them up online on e-commerce platforms. These can potentially open opportunities for expanding your craftsmanship and grow your earnings in the long run.
When a person begins earning money, their actions afterwards will influence their financial security. Panganiban shared that setting a goal for oneself is important in establishing good money habits. Doing so gives meaning and direction to the upcoming financial decisions that someone will take during their lifetime.
Additionally, putting effort in budgeting your finances ensures that you will always have enough money for your expenses, prepare for emergency situations, and manage long-term financial goals. You can start with a 50-30-20 budget rule where 50% of your money goes to your essential needs, 30% on wants, and the 20% on savings. It is a smart budgeting method that can help anyone manage their money effectively, simply, and sustainably.
Grow your money the smart way
From being a fast-food service crew to becoming the Head of Finance and Operations of Sun Life ASCP, Dennis Bocoy, proved through his experience that being strategic with your finances can take you to a brighter future.
“Don’t be afraid to do more than what we are paid for, because it exposes you to additional experiences,” he advised.
Being more open to such opportunities is key to personal growth. Bocoy believes that investing in advancing your skills through self-learning or training can lead you to better financial situations — being able to save more, plan for retirement, and do other long-term investments.
When you start earning more money, Bocoy recommended buying assets to grow your money instead of putting expenses on liabilities. Some examples of assets include cash, savings, properties, investments like bonds, the cash value of life insurance policies, mutual funds, stocks. For instance, if you bought land in a premium location, its value increases over time and you can sell it for more than what you had paid for.
Finally, Bocoy advised that expanding your sources of income also builds up your financial security. One can utilize their skills or talents to service customers while working for an eight-to-five-job. Likewise, you can explore launching a small business or buying a franchise to help you grow your money along the way.
While managing your finances let alone grow it could be overwhelming for a young individual, it is never wrong to plan ahead and start even with small steps towards financial freedom.