Millennials, born between 1980 and late 1990’s, make up about one-third of the Philippines’ overall population today, wrote Marc Adrian, described by iMoney as a “wordsmith of financial literacy pieces tailored for Filipinos.”
“Although the millennials are considered an exceptional generation, the economic and social climate of the day haven’t spared them from financial problems,” he said in a piece for the money-matters web portal.
‘Although in upscale cities like Metro Manila, millennials can be seen flocking hipster cafes and living in high rise condominiums, they don’t necessarily present the majority of the millennials in the Philippines’
The paycheck to paycheck lifestyle has never been more apparent than the current lifestyle led by this group of young people; and this, he said, can be attributed to the following:
1. Lacks financial literacy
Contrary to what most millennials think, they aren’t as financially savvy as they perceive themselves to be. According to a data presented by The Global Filipino investor: The Philippines is one of the 30 least financially literate countries in the world, with only 0.7% of the population investing in stocks, bonds, mutual funds, and government securities.
“Despite the Philippines having about ⅓ of its population in the millennial age group, the ratio of those who are financially literate to the entire population aren’t even close to a fraction of the millennial population in the country,” said the “wordsmith.”
2. Financially vulnerable
The iMoney piece cited a survey done by Manulife, which stated that despite being cautious with spending, four out of 10 Filipino investors carry debt, majority of which are below 35 years old.
Despite having a strong grasp of real life financial discipline, many of them are burdened with high levels of personal debts, not including mortgages.
3. Burdened with more financial responsibilities
While millennials may be generally pictured as affluent young professionals by many — an image highly influenced by the western culture, it is far from the truth in the Philippines, said Adrian. “The country is overpopulated by young adults, who are neither affluent nor the stereotypical millennial, generalizing them as such is a mistake,” he added.
More and more young Filipinos are burdened by financial responsibilities inherited from their parents.
Although in upscale cities like Metro Manila, millennials can be seen flocking hipster cafes and living in high rise condominiums, they don’t necessarily present the majority of the millennials in the Philippines.
4. Stagnant income
According to findings of the National Youth Assessment Study 2015, seven out of 10 respondents reported that their household income on average is less than ₱10,000, while 18.8% of households are recipients of 4Ps, which means they are indigents. Close to half (42.5%) of surveyed youth are hoping for a job within the next five years.
