Financial literacy among Filipinos remain low and only about 1% of us participate in the stock market and/or are protected with some form of insurance. It is only during times of calamities, disasters, death, or illness that many of us start thinking about it. “Sayang, sana may insurance ako”. “Kung meron lang ako o siyang insurance”.
Insurance Commissioner Emmanuel Dooc, FALIA managing Director Toru Nagashima, PLIA President Gregorio Mercado, and FALIA Director Yoshitaka Masai
In fact, the Philippine Life Insurance Association (PLIA) noted that sales of insurance surged after Ondoy and Yolanda. “It is a very steep price to pay to learn the value of insurance,” says Insurance Commissioner, Emmanuel Dooc.
Because Filipinos lack education in terms of Financial Literacy, there is buyer’s remorse and several misconceptions about investing on insurance. There is also a challenge in terms of our persistence to keep our insurance policies. I first heard about insurance through my mother, whom through her hard work has put us all three children to college by herself with the help of insurance.
Watch: Misconceptions about Life Insurance
Spreading Financial Literacy Awareness to the Filipino Youth
We live in an exciting time where there are now several channels to learn about managing our finances. There are online blogs, financial lectures and seminars on YouTube, and even TV programs. My favorites are ANC’s On The Money and Cathy Yang’s Market Edge. For the youth, Knowledge Channel recently launched a new program called “Estudyantipid”. Still, these are resources that will not come to us if we do not seek for them.
In celebration of Life Insurance Consciousness Week, the Philippine Life Insurance Association (PLIA) in partnership with the Foundation for the Advancement of Life Insurance around the World (FALIA) are coming to different public and private high schools and hold a series of lectures for its students .
The lectures will focus on life insurance and answer questions like how does life insurance strengthen the foundation of my family? How will it help me achieve my financial goals? And, how will life insurance contribute to my well-being?
FALIA managing Director Toru Nagashima noted that in Japan, financial literacy courses are included in the students curriculum and has been running for more than 20 years. In the Philippines, financial literacy is not really taught in schools but there are now ongoing programs backed by different financial institutions.
FALIA-PLIA Essay Writing Contest
To encourage even more students to be financially literate, FALIA and PLIA are also hosting an essay writing competition. The top three winners will get to enjoy an all-expenses-paid trip to Japan while runners up will win up to P30,000 in cash.
If your child’s school is not included in this year’s program, you may still check out PLIA’s Financial Education Curriculum for Philippine Secondary Schools. Here you can learn about identifying your financial needs and increase your financial knowledge with your child. Teachers will also find here interactive multimedia materials, curricular toolkit containing sample lesson plans, student activities, and other teaching aids.
Tips on How to Teach Children About Money
FALIA Director Yoshitaka Masai advice parents to teach children about finances as early as 8 or 9 years old. In Japan, he noted that by this age – Japanese children already have a solid idea of what savings and insurance are all about.
Insurance Commissioner Emmanuel Dooc adds that the best way to educate children is by setting a good example. Start them young to develop practice of saving. For instance, part of their allowance must be put to their savings i.e. coin banks. Parents must also show children how to prepare family for any contingency, this means that you do not borrow “utang” and you must know how to use credit cards responsibly. Paying just the minimum amount on your credit card bill means you may not be managing your finances very well.
PLIA President Gregorio Mercado advice parents that when they invest, be careful not to be a victim of scam. Greed turns into loss, be careful of promises of very high returns. Mr. Mercado notes that right now, it is easier to be invested in many ways – not just life insurance but also in mutual funds for as low as P5,000. He reminds everyone that no one is exempted from dying, getting sick, or being a victim of disasters. Having insurance allows us to live with peace of mind and enjoy a quality life.
How do you teach your children about money? Please share your tips via comments below 🙂
Mommy Lace is a blogger from the Philippines. She started this blog to share information on pregnancy, breastfeeding, childcare, family, and health.
