Financial literacy among Filipinos should increase

Do you know that consumer confidence in the economy continues to be negative? That's according to the Bangko Sentral ng Pilipinas quarterly consumer confidence index. People are still cautious particularly on buying big-ticket items. And that's understandable.

The thing that strikes me most is that people are saving instead of investing, something which perplexes me. Other nationalities, if they have money, would think of ways of growing such funds and opening a savings account is not the way to do it. Interest being given by banks are pitifully low compared with, say, investing it into a new business or buying stocks.

Save money, that's something which advertising ingrained into our brains. I'm not saying that saving money is bad. All I'm saying is, there are other means, actually better ones, which merits our time more than savings.

Investing in government bonds is one. Treasury bonds have a steady and fixed yield. Global bonds and other instruments, such as Pag-ibig, etc. give higher interest rates than a regular savings or even a time deposit account.

Playing in the money market gives one a higher yield with higher risks. Moreso, risking some money in the stock market gives one a higher latitude in terms of revenues yet of course, there are attendant risks to consider.

I think Government should consider launching a campaign to increase the financial literacy of the people. A highly educated people stand a greater chance of surviving today's natural calamities. For example, government should explain the benefits of insurance. When one's property is ensured, you can be sure that if a natural disaster strikes, and you lost some of your valuable property, if you're insured, greater and speedier ways of recouping the loss than, say, an unensured.