59% of Filipinos know their personal finances well

Filipinos scored an all-time high of 52.6 out of a possible 100 points in the latest Citi Financial Quotient Survey.

According to Citi, Filipinos passed the 50-point mark for the first time since the survey was launched in 2007.

The Filipinos’ high Fin-Q score can be credited to a better understanding of money management, according to the survey. Fifty-nine percent feel they have a “good” or “very good” understanding about money management and personal finances. This also explains why 94% reported attempting a monthly budget, the highest number across all countries participating in the research.

In this latest survey, respondents were scored on 11 different questions closely related to financial well-being for a maximum possible score of 100. The questionnaire consisted of over 50 questions and covered a range of topics closely related to financial decision-making and smart financial habits.

More than 60% surveyed said they were “better off” compared to 2010, the highest reported level since 2007. Optimism on one’s financial future is also up, with four out of five respondents saying they are “very optimistic” or “optimistic” about their financial future. On savings, 42% reported they save money from every pay.

With better access to financial education, Filipinos are able to manage their current finances, and have become even more conscious about saving for the future.

Sixty per cent indicated that they pay off their full outstanding credit card balance on a monthly basis, up 12% from 2010. Filipinos are also looking at investments in the form of cash, real estate and insurance to ensure a comfortable retirement.

Average retirement savings is pegged at P1.56 million, marking an 11% increase from 2010. On the average, Filipinos reported having 10.4 weeks of savings in reserve.

Filipinos have embraced digital banking with fully 70% saying they use the Internet or mobile phone for banking transactions. Given a choice, a majority (52%) expressed a preference for banking online from a home or office computer – the highest number registered among the participating countries.

The Citi Fin-Q Survey is an annual survey designed to measure the Financial Quotient or financial well-being of consumers. All respondents were over 18 years of age with either a bank account or a major credit card.