Simple investments not enough for Pinoy families

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Simple investments not enough for Pinoy families
Posted: 6:55 PM | May 08, 2005
Tina Arceo-Dumlao
Inquirer News Service

FAMILIES today are more careful about their money and are less likely to take out a loan.

This was one of the main findings of a study on the dreams, aspirations and attitudes of married couples toward money and loans, which was commissioned by BPI Family Savings Bank.

Asked about how they looked at life today, newly married couples aged 35 and below generally said that they needed to keep their life simple because of life's uncertainties.

Couples married for some time, on the other hand, said that they have seen better days, financially speaking. Life was quite different, as recently as five years ago.

"We had a good life. We could buy branded clothes. We could go to Hong Kong and Bangkok. Now, we just stay here," said one couple, and the attitude was typical among many couples included in the survey.

Married couples, however, especially those just starting out, were driven to pursue their dreams, but in a responsible and practical way.

Their core belief when it comes to money is to live within their means, and fulfill dreams--such as buying a car and house--one at a time.

These couples are looking for "a practical, realistic way to live in the present while working for one's dreams."

Being practical for many means setting aside funds, which they put into simple investments such as independent or joint savings accounts, time deposits, educational plans, life insurance policies and small businesses, such as catering or multi-level marketing.

But at the same time, they know that simple investments will not do.

The study said couples knew they should: have more than one business, invest in a piece of property and search for new opportunities.

Taking out a loan is not an option for most of the couples included in the study. They are afraid of going into debt.

They are afraid of: risking money, ruining the marriage, failing to meet the obligations and tarnishing their reputation.

"If thing's go wrong, it won't speak well of you as a person," said one of those studied.

But the study said couples were willing to get a loan if banks gave them low interest rates, flexible terms and good service. The banks must also be perceived as stable amid these trying times.

BPI Family Bank, the country's biggest consumer lending bank, took these findings into consideration when it launched its "Get Started On Tomorrow" campaign yesterday to get more Filipinos to take out loans by offering lower rates and longer repayment periods.

By offering affordable loan packages, BPI Family president Alfonso Salcedo Jr. hopes that Filipinos will become more confident about taking out a loan to buy that car or dream house.

BPI Family is concentrating its campaign on three core products: auto loans, housing loans and a high-yielding deposit product.

Salcedo says the campaign is targeted toward families that are financially responsible and willing to work for their dreams.

By training the staff to be more customer friendly and able to explain the facets of taking out a loan, Salcedo is confident that the fear of taking out a loan would subside.

At the end of the day, Salcedo says committing to a loan is all about having confidence in one's ability and the prospects of the Philippines.

"Hope is becoming scarce, and as the country's biggest savings bank, we thought that we ought to spread the culture of optimism and tell people that they can get started on a brighter tomorrow," he says.

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