The Importance Of Financial Literacy In The Philippines

Financial literacy is the knowledge on how money works. Specifically, it is a skills and understanding of Individual that allow them to make an effective and sound financial decision. Financial Literacy is more important than ever in today’s world. It is very essential that each person should have the ability to understand how money works ; how to manage it to earn and to invest or how to donate it to others. Financial Literacy provides the necessary knowledge, skills and tools for individual to make informed financial decision with confidence, to manage personal wealth with efficiency and to increase financial competence to demand for better financial services (Ali, 2013).

State of Financial Literacy in the Philippines
The Ratings Services survey of Standard & Poor in 2015 showed that only 25% of Filipinos are financially literate which means that about 75 million Filipinos have

To have the capacity to put resources into their future and in addition that of their children
Financial literacy isn't just about taking care of the money issues of the present. When you've sufficiently adapted and have effectively aced the way you handle your money, you can begin putting resources into something that you can harvest later on. For example, you know at some point or another that you need to leave your occupation because of one of the numerous conceivable reasons—and you should be arranged fiscally regardless of the reason. Besides, you may likewise need to desert something for your children’s future. When you are financially educated, you can do these things and more.
3. To have the capacity to add to the nation's economy
Financial literacy contributes enormously to the nation's economy, particularly if a good majority of the population know how to manage their personal finances. For example, if individuals know how to save a little money in the banks, then it can positively affect their economy. Not exclusively will you profit by the marvels of financial