More households report savings in 4th quarter

MORE households set aside money in the fourth quarter, the period during which most workers receive bonuses and cash gifts, the Bangko Sentral ng Pilipinas’ (BSP) latest Consumer Expectations Survey showed.

According to the BSP, the percentage of households that saved up during the October-to-December period rose to 30.2 percent from 28.9 percent in the third quarter, mainly driven by an increase in savers in areas outside Metro Manila.

The fourth quarter figure also improved from 25.7 percent a year ago.

The BSP also noted a rise in the number of middle-income households with savings in the fourth quarter.

“According to respondents, they save money for the following reasons: Emergencies, education, health and hospitalization, retirement, and business capital and investment,” the BSP said.

In the fourth quarter, two-thirds of respondents said they maintained bank accounts; two-fifths were keeping their savings at home, and less than a third invested their money in insurance and stocks or paid contributions to pension funds, among other informal financial institutions.

Households that have members overseas likewise saved up more during the fourth quarter—41.4 percent of respondents said they used remittances for savings, up from 38.2 percent in the previous quarter.

The bulk of remittances from Filipinos abroad remained spent on basic necessities such as food and other household needs (95.9 percent of respondents), education (69.5 percent) and medical expenses (59.7 percent).

Remittances were likewise used to pay debt (42.7 percent), buy appliances and consumer durables (21.8 percent), purchase houses (11.9 percent), invest (6.6 percent) and buy motor vehicles (6.4 percent).