A webinar titled "Financial Literacy to Members to Lessen Delinquency" was conducted on February 21, 2024, to help cooperative members improve their financial literacy and avoid delinquency. Ms. Kathryn "Kathy" Lising led the session, which tackled the importance of financial literacy in the Philippines, outlining key statistics and actionable strategies to empower individuals to make better financial decisions.
Ms. Kathy started the session by sharing statistics from the World Bank, revealing the Philippines' position in the bottom 30 out of over 144 countries in terms of financial knowledge. Alarmingly, only 25% of adult Filipinos have basic financial knowledge, and many lack proper retirement and insurance plans. Financial literacy, as explained by Ms. Kathy, means managing money well for a better financial life. It involves handling income, expenses, savings, investments, and protecting assets. She shared that people who understand finances are more likely to save money, with a 20% increase seen among Filipinos who are financially literate.
Ms. Kathy outlined five
aspects of financial literacy: Earn, Spend, Save, Invest, and Protect. She
emphasized understanding income sources, categorizing expenses, setting savings
goals, deliberate investment strategies, and safeguarding assets. She also
emphasized the advantages of financial literacy, including achieving goals,
making informed decisions, effective debt management, reducing financial
stress, and making ethical decisions.
The webinar also
emphasized the importance of financial literacy in preventing delinquency. A
proactive approach with risk assessment, communication, education, and early
warning systems is vital. Strategies like financial literacy training, credit
counseling, and regular financial updates help prevent delinquency. Ms. Kathy
concluded by emphasizing that knowledge alone does not always translate into
behavioral change, highlighting the importance of addressing lifestyle in
financial decision-making. She highlighted the importance of financial planning
to navigate the present and future financial landscapes, stating that "we
need to do financial planning because it requires an understanding of our
present position as well as our future."
The webinar highlighted
the importance of financial literacy in reducing delinquency and promoting wise
financial management. By giving people the necessary financial knowledge and
empowering them to make smart choices, the webinar helped build a stronger
financial foundation for society. It is a reminder that when we invest in
financial education, we invest in our collective success.
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