Money Management

Guys...I am just wondering, marami ng tao ang nasira ng pera ...do you think it is time na gawing basic subject ang Money management sa HS and/or College..? There's are a lot of people don't know how to spend and save right lalo na sa mga kabataan ngayon, and the worst thing na nakikita ko ngayon ay yung mga ibang kabataan ay nagiging dependent sa mga parents nila yung tipong nakukuha nila lahat ng luho at binigay naman ito ng parents nila... For me, dapat in their age, they should learn how to be independent paunti-unti in terms of house chores and family expenses contribution (for employed) para malaman nila what should they set 1st...

When I was young, my lolo saw me playing with his coins ...Ang sabi niya sa akin

"Apo, hindi ganyan ang pag gamit ng pera...playing money is not easy in real life...money is like a discipline that learn through sacrifice, failures, and success in life pero syempre you should have this called "perseverance" muna...

and I asked him "Nailalaro ba yan sa gameboy?"

and then my lolo laugh at me and said "Apo, GAMITIN ANG PERA AT HINDI MAGPAGAMIT SA PERA".

I said "Hindi ko maintindihan"

and then he said "Apo, you will know what I mean soon..."

Hindi ko maintindihan si lolo pero as I grow up, parang unti-unti ko ng narerealize yung sinabi niya. For example is the difference of Needs from Wants.

So guys what do you think?

Today, my co-worker ask me paano pagaanin ang problema niya sa pera and I said "Saving using 20-80 rule (from BPI) and a Smart Spending. Know your due dates and plan your income allocation. Lastly, Make it a habit"...
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Comments

  • KuyaDannyKuyaDanny Moderator PEx Moderator
    I think there are lessons to be learned, but school might not necessarily be the best place to learn them.

    How many young people take lessons taught in school seriously? How many remember anything after the exams are over?
  • KuyaDanny wrote: »
    I think there are lessons to be learned, but school might not necessarily be the best place to learn them.

    How many young people take lessons taught in school seriously? How many remember anything after the exams are over?

    Right, you have a point kuya danny...saan nila ito matututunan?...money is already basic need...I think kailangan ng pagtuunan ng pansin ang money management...

    Edited "Sorry" :bashful:
  • sentrysentry Zerg Lurker PExer
    actually yan din ang reklamo ko sa educational system natin (at least sa public state univ na saan ako galing)

    elem/high school i dont think so kasi sobrang bata pa so i dont see the need to emphasize

    sa college/univ i believe malaking bagay yan as a GE (i mean we have social science, history, philo, why not financial literacy?)

    pwedeng one or two subjects covering
    - budgeting or money management (big topic)
    - insurance
    - investments (big topic)
    - entreprenuership
    - others (pahapyaw) like inheritance, property purchase, retirement planning, etc.

    come to think of it, we had entreprenuership in high school as sub-topic sa home economics, pero its all lost since walang continuation sa college (where it would be more useful)

    base sa financial knowledge ko ngayon (which is limited, and late) and looking back at my subjects before sa univ na useful, they are:
    - engineering economics (cash-flow, interest)
    - stats/probability (stocks)

    just those two (not counting basic math)
    and the stats/prob is not even thought at the perspective of finance/economy (engineering perspective din ito)

    and mostly covering investment perspective din (even the cash-flow topic was on investment perspective), when i consider budgeting the more important foundation (i leave investment as an advanced topic)
  • sentry wrote: »
    actually yan din ang reklamo ko sa educational system natin (at least sa public state univ na saan ako galing)



    sa college/univ i believe malaking bagay yan as a GE (i mean we have social science, history, philo, why not financial literacy?)

    +1 here...malaking bagay talaga sa GE ang money management kasi basic needs na ang pera...
  • drystiscaliodrystiscalio Member PExer
    magiging utak talangka ako sa topic na to, pero di ako pabor nag magkaron ng subject na ganto, let them learn through experience, I believe in equality, may rason kung bakit may kanya kanyang stado ang tao sa pera, baka pag yumaman, biglang maging masahul sa hayop ang katauhan, mga ganung bagay, maaring maging mas utak talangka pa tayo pag ituturo sa college tong mga bagay na nabanggit:
    budgeting or money management (big topic)
    - insurance
    - investments (big topic)
    - entreprenuership
    - others (pahapyaw) like inheritance, property purchase, retirement planning, etc.

    opinion ko lang naman to, I learned my lesson the hard way, I have to see my brother and my sister fail, I have to sacrifice everything I had last year, and now nagiging mas ok na buhay ko, buhay namin. :)
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    Right, you have a point kuya danny...saan nila ito matututunan?...money is already basic need...I think kailangan ng pagtuunan ng pansin ang money management...

    Most of our schools are already inadequate and ineffective in carrying out the tasks to which they are assigned. Now we are expecting them to do more? I don't think it will happen in your lifetime. Besides, schooling is still not universally available/accessible. We will need to work on other methods.

    Parents, relatives, peers, and other role models, especially those with good personal finance habits can be important influences in the forming a sound money management "culture".
  • I learned my lesson the hard way

    Not everyone survive in the hard way...What my point is how can we spread the knowledge of Money management which everyone can easily access even the less fortunate...Kaya nga education yung naisip ko to spread this one kasi we have public University...
  • KuyaDanny wrote: »
    We will need to work on other methods.

    How po kuya danny..? Can you give examples?

    Thank in Adv...
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    Education yes, but not through schools.

    Raise awareness through media (social and regular). Encourage inquiry and curiosity by making it "cool" if you have to. If enough individuals are internally motivated, they will learn for themselves, if only because doing so might make their lives easier.
  • Money Management Teleserye would do the trick..? I think pwede naman...pero ang mga pilipino are emotional...kaya nga ang mga tv ngayon puro love story and nagiging worst pa kasi pati bakla pinagkakdiskitahan na din...sometimes I ask myself, ano na gain ko nung na nood ako nito...a big word "WALA"...the social media should consider this...
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    How po kuya danny..? Can you give examples?

    Thank in Adv...

    The second paragraph in post #7 is a list of examples, which do not necessarily involve school.

    Think of the other life skills you have acquired which you use regularly, such as counting your change, haggling with vendors, asking for directions if you are lost, using public transportation to get around, trusting or doubting people, forming lasting friendships, cooking, buying fish or vegetables, choosing your leaders, even driving a car or riding a motorcycle. None of these skills need to be learned in school. I would put money management on the same list. What sets these skills apart from academic disciplines is that it is much easier to make people realize how important they are, and sophisticated thinking is not required for anyone to realize an advantage.

    For that matter, why did we start a money management forum here on PinoyExchange? Because people want to talk about the topic. They are curious and actually want to use some of the knowledge shared here in actual life situations. And let's not kid ourselves, more people prefer to read the posts in forums like this than textbooks, if the textbooks were not required and there were no final exams. I would never underestimate the power of informal learning.
  • ^ I got your point kuya...We should learn money management on our own experience as well as other experience too sabi nga ng boss ko when I have doubted my works "Hindi mo matututunan o mapagpapahalagahan ang isang bagay kung hindi mo susubukan"...
  • Guys, since napaguusapan na natin ang money management, I want to share and emphasize a little in the topic of spending of Filipinos.

    Here's the first issue which I think we should take apart it from our culture...Maraming pilipino ang mahilig sa mga bago o makabagong kagamitan tulad na lang ng mga gadgets. Filipinos tend to disregard the real use of gadgets and use gadgets as "Payabangan" or so called "Trending kami".

    The best example here is the Cherry mobile Flare. Kung mapapansinin natin ng maigi, 2-3 months may another version nanaman na inilabas. Since we have this in our culture na mahilig tayo sa mga bago o makabagong kagamitan, several Filipinos will sell 50%-70% from the original price of there current unit (Previous version) and buy the latest version of it kahit 1-3 months pa lang ito nagagamit. If you check sulit.com and ask the seller what is the purpose of selling, many of them reason out "May new version kasi na inirelease".

    In my own POV, I suggest is to have a "Think Twice" decision before buying a certain service/product considering your financial status, capacity, existing expenditures, and upcoming expenses. We should also know first what are the benefits and ask yourself if that benefit is essential to you.I also suggest that always priority the needs rather than your wants because needs are like cars, you need fuel to make you keep going to achieve your goal.

    I also want to discuss this 2 topics:
    1. 5-6 or sometimes called "******"
    2. Gambling (e.g. Lotto)
  • sentrysentry Zerg Lurker PExer
    KuyaDanny wrote: »
    ...

    Parents, relatives, peers, and other role models, especially those with good personal finance habits can be important influences in the forming a sound money management "culture".

    I guess what i want to highlight is that these same people's roles go both ways, that is they can also be the bad models, unintentionally, to be fair.

    In fact most of the old generation i know falls into the low financial literacy group.
    The same people who:
    1. doesnt know what emergency fund is
    2. additional money means more funds for beautifying the house
    3. to say no to a needy relative is a family shame (regardless if you actually have the capacity, nor if the needy one deserved it)
    4. engrande fiesta, bdays, teen weddings
    5. emergency fund is in the form of debts from well-off relatives by virtue of 3 above.
    6. children are investments/retirement fund, especially the youngest one, or the holiest one (i.e. easily falls victim to guilt trip)

    The old generation understandably does not see these as wrong, so what will they teach the new generation then?
    we are seeing them now as:
    - credit card as emergency funds - replaces utang mentality
    - gadgets and facebook yabang pics (travels/foods/etc.) replacing the fiestas
    - children as investment/retirement fund cycle continues

    so as a generation, what did we learn from them that made us among the lowest in financial literacy rate in asia?

    and looking forward, what will our generation appear as a financial role model to the incoming one?

    it is better to have learn nothing, than to learn the wrong things.

    just to unlearn things could set us back years after becoming independent, especially if the unlearning process is done unassisted.

    having financial literacy included in higher education may somehow balance out the wrong things being taught in average households.

    means fewer things to unlearn when they start earning their first salary.
  • sentrysentry Zerg Lurker PExer
    KuyaDanny wrote: »
    Education yes, but not through schools.

    Raise awareness through media (social and regular). Encourage inquiry and curiosity by making it "cool" if you have to. If enough individuals are internally motivated, they will learn for themselves, if only because doing so might make their lives easier.

    why not schools?
    what does the other media have that the school s do not?

    schools have wider access (may public schools naman)

    schools via a centralized chain of organization can better guarantee the content so we wont end up learning the wrong things (see my previous post)

    if a textbook teach us something wrong (it happens even in black/white subjects) it becomes open to scrutiny.

    when a parent tells his son that he should give him 80% of his salary for their whims (and other wrong stuff), the son is left believing this is the status quo and rarely will this scenario be challenged by an outsider as wrong.

    social media compared to schools are even more accessible only to those who are less likely to need this in the first place.
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    sentry wrote: »
    so as a generation, what did we learn from them that made us among the lowest in financial literacy rate in asia?

    and looking forward, what will our generation appear as a financial role model to the incoming one?

    We learned from them that their methods are ineffective, and that we should not emulate them.
  • sentrysentry Zerg Lurker PExer
    hehehe as i've said, i'm not sure the current generation learned the wrongs of the old.

    we sort of just reinvented 'em old principles via modern vehicles as credit cards, gadgets, travels, social media, pyramid scams, ofw-dependence, etc.

    unless may magbago, the current generation will probably teach the same things (albeit packaged differently) to the next.
  • Let us talk about this one...

    Why saving is not recommended... "Hedge" - http://www.youtube.com/watch?v=1AhYev-0ERo

    Finance Intelligence - http://www.youtube.com/watch?v=lF9GiYldYQI

    Filipinos should learn and know these things
  • mezzy0mezzy0 Member PExer
    Hi thank you for this discussion, I got this problem with my money management and I don't really know how to resolve this. I have been working for a year now and since then clothes and phones lang ang naging invesment ko sa mga kinita ko and it's quite disturbing na. I don't really know what to do with this. Parang and daming kong necessities, I tried to control myself but eventually nahihirapan pa din ako. Guys I need your suggestion please
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    I don't buy clothes or shoes anymore, except to replace those that are worn out or damaged. So if one shirt is retired because there's a hole in the armpit, for example, I buy one shirt (not two or more) to replace it.

    Same goes for phones. I use mine until they break.
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