According to the results of the recent annual Consumer Financial Survey (CFS) of the Banko Sentral ng Pilipinas (BSP), the Philippines remain a consumer-spending driven economy. In a way, the Filipinos themselves help…read more >>
What do Filipinos Spend Their Money On?
According to the results of the recent annual Consumer Financial Survey (CFS) of the Banko Sentral ng Pilipinas (BSP), the Philippines remain a consumer-spending driven economy. In a way, the Filipinos themselves help prop up their nation’s economy through their ways of spending. That simply means, each spoonful serving of food, bottle of beer consumed, and every tick of a taxi meter ran goes a long, long way of helping boost the economy.
The survey reported that the average income of a common Filipino family stood at PHP 20,000.00 and, salaries and wages are the main sources of household income. Below is the typical Filipino family’s surveyed distribution of budget expenditures from a PHP 20,000-average monthly income.
PARTICULARS EXPENSES, PHP %
Food and Beverage 7,700 38.5
Children’s Education 2,200 11
Transportation 2,000 10
House/Utilities 2,100 10.5
Health/Medical Services 1,600 8
Bank Savings 1,200 6
Communication 1,200 6
Clothing/Apparel 1,000 5
Miscellaneous 1,000 5
TOTALS 20,000 100%
Out of the pie of expenses, Filipinos put high priority on food and beverages consumed at home, racking up an average of a little more than a third of their monthly income, while clothing expenses took the least priority. It is therefore interesting to note that Filipinos prefer to survive spending their money on food rather than having more clothes on, pun unintended.
But it is nicer to know that a Filipino would never compromise getting a good education than getting to wear lesser clothes. No wonder that the usual sight of a bare-chested Pinoy out in the streets is somehow more knowledgeable enough when asked pertinent questions that may showcase their educational background. Oftentimes, he is just misconstrued to be uneducated and unmindful of decorum with his bare and brusque outlook.
The survey also showed that a quarter of Filipino households own and retain expenses on a motor vehicle; and, more than half of Filipinos own motorcycles. The reason could be the ease of maintenance of motorcycles, and the ideal mode of transport in maneuvering thoroughfares midst heavy traffic. The most popular mode or source of motor vehicle loans that Filipinos avail is thru in-house financing.
Knowing the top items on which Filipinos spend their hard-earned money on, this record could ably serve as a guide for Filipinos of aspiring to become entrepreneurs by searching for, or creating business opportunities in thefood and beverage, education and transportation sectors; or to prospective investors planning to expand their businesses. Based on the feedback results provided by the Filipino consumers themselves, they could grasp ideas on which sectors potentially generate profits.