Average Monthly Income
According to Atkinson and Messy (2012), a high level of financial literacy is conceivable
at all income levels. Income itself does not affect the capacity of somebody to pick up
information, frame states of mind helpful for their own financial well-being or to display positive
conduct. However, low income is regularly seen as a clarification for certain practices, for
example, borrowing to make a decent living, and being used as a reason not to embrace
activities, for example, saving or making long-term plans. Furthermore, low income might
likewise be connected with other socio-demographic factors that have been demonstrated to be
connected with financial literacy, such as age. Monticone (2010) finds that people with higher
incomes are likewise more prone to be financially knowledgeable. Therefore, the people that
have the lowest financial literacy scores with less education and income may be people that need
financial education the most.
Research revealed that financial education would improve financial literacy which is
consistent with much of previous research (Lusardi & Mitchell, 2014). Furthermore, Monticone
(2010) found that people with lower incomes found it too costly and with fewer incentives than
wealthier people to acquire financial literacy on their own. Therefore, because those who have
lower incomes are not going out and acquiring the information on their own, it would be
expected that financial education would be especially beneficial to this group. Income recording
for the survey was done categorically, where a person could answer whether or not their income
was less than $25,000, $25,000– 50,000, $50,000–75,000, $75,000–150,000, or greater than
$150,000. It was revealed that those
who make less than $50,000 were considered low income while those who make more than
$50,000 were considered high income.
The Filipino mindset upon receipt of salaries, as commonly known, is that upon receipt of
salaries, spending comes in before saving. What is left, is saved. If there’s none left, then, there’s
nothing saved. According to a study conducted by Philam Life cited by NEDA (2018) 96 percent
of Filipinos are concerned about their own and their family’s health, however, only 16 percent of
them are prepared to pay for medical costs in case they are diagnosed with a critical illness.
There is a rising number of senior dependents or those retirees who depend on their children for
financial help, due to a lack of financial education.
According to the Philippines Statistics Authority (PSA). The country's nominal wage rate
of agricultural workers in 2019 averaged PhP 331.10 per day. On the average, male farm workers
were paid PhP 335.00 per day, higher than the average wage rate of female farm workers at PhP
304.60 per day. Farming is where the money is. This may be hard to believe in a country where
farmers are mostly old and poor. Based on a 2017 survey of the Department of Agriculture (DA),
the average age of farmers in the Philippines is 60 years old. And their average income is around
P100,000 a year, according to the latest Family Income and Expenditure Survey, or just over
P8,000 a month, which is well below the poverty line.
REFRENCE:
Mylenko, N. (2015, October 21). How good are Filipinos with their finances? World Bank
Blogs.https://blogs.worldbank.org/eastasiapacific/how-good-are-filipinos-with-their-finances
Philippines Statistics Authority:Trends in OFW Dependent Scholarship
ProgramAgricultural Wage Rates. (2020, August 28). Retrieved March 6, 2022, from
https://psa.gov.ph/content/farm-workers-are-paid-average-daily-wage-php-33110-
2019-calabarzon-farm-workers-are-highest
National Economic and Development Authority. (2018, May 11). Financial literacy for
Filipinos: Understanding for better living. GOVPH. Retrieved March 8, 2022, from
https://nro13.neda.gov.ph/financial-literacy-for-filipinos-understanding-for-better-
living/
