Getting people started on road to wealth

MANILA, Philippines—When it comes to financial products, most Filipinos are only familiar with savings accounts—the basic service offered by any number of savings banks in the neighborhood.

What’s more, most Filipinos do not think long term, preferring to save their cash for what they consider to be immediate and primary needs, such as health and education.

There is minimal interest in thinking about or putting money in income protection, retirement and investments, thus leaving them in dire financial straits when the unexpected—like a serious illness or death—strikes.

These were among the key findings of a ground-breaking nationwide Lifestyle, Attitude and Relationships Study on Financial Products commissioned by Sun Life of Canada (Philippines) Inc., one of the country’s leading providers of financial products, such as insurance policies and mutual funds.

It’s Time

These are also the same outdated attitudes toward financial products that the Philippine unit of the Canadian insurance giant wants to see forever changed through its financial literacy campaign called “It’s Time!”

In marking the third year of its campaign, Sun Life launched a dedicated

website—www.itstime.com.ph—where Filipinos here and abroad can get words of wisdom from Sun Life experts, as well as other finance advocates, on a variety of subjects such as balancing the household budget.

People may also get to know other financial products such as mutual funds and life insurance.

At the same time, Sun Life has set up a traveling booth in different malls so that the public can readily ask for advice from Sun Life financial experts, who can talk about the value of saving for a financially secure future. They are out to convince people that it is never too late to start building a nest egg, so it’s time to make a change.

Good habits

Mylene Lopa, chief strategic marketing officer, said that Sun Life has gone out of its way to spread the message that it is possible for every Filipino to be financially secure as the study has shown that one of the barriers to savings and investments is the simple lack of education/appreciation for financial products.

This is indicated by their hesitation to take risks, uncertainty in choosing a good insurance policy or savings vehicle and fear of making a bad financial decision.

Sun Life believes that by increasing knowledge of the features of different financial products, and by increased awareness of their own spending and saving habits, Filipinos will be better able to make a financial decision.

Since it’s best to form good habits as early as possible, Sun Life has expanded its advocacy to include college students. The idea is for them to be armed with the basic financial tenets so that they will know what to do with their money once they finish school and start earning a living.

Accumulating wealth

Sun Life, which implements the It’s Time financial advocacy campaign through Sun Life Foundation, considers 2011 a banner year, having reached out to more than 400 students from the University of the Philippines (UP), Ateneo de Manila University and De La Salle University (DLSU).

At UP, through the help of UP Pan Xenia, the foundation’s experts talked to some 50 students from the UP College of Business Administration about the basics of money management, getting started on financial planning and accumulating wealth.

The Ateneo Management Economics Organization, on the other hand, got the foundation to give the students a glimpse of the world of mutual funds and how to start investing. Volunteer financial advisors were also on hand to provide on-site advice to students looking to invest immediately.

For the DLSU Management of Financial Institutions Association, Sun Life conducted one-hour Financial Planning 101 sessions to interested students during the MaFIA’s Finance Week.

Customizing sessions

“The sessions usually take up about one and a half hours. We give the students basic money management tips like keeping an expense diary and setting a budget, and we show them the earning potential of money. After the sessions, the students can consult with a financial advisor on how they can start crafting their own financial plan. They are usually more interested in investing or opening a mutual fund account after the sessions,” said Carla Gonzalez, Sun Life strategic marketing manager.

Given the encouraging response from the students, the company plans to reach out to even more college students and expand its reach to include other audiences, such as elementary and high school students, Gonzalez said.

“Mothers and young professionals are also among our target audiences for this year. We will be conducting more financial planning sessions and customizing the sessions to fit the lifestyle of these target groups,” Gonzalez added.