Professional Documents
Culture Documents
Eugene Gonzales
January 2007
DISCLAIMER
“The views expressed in this report are strictly those of the authors and do not necessarily reflect those of
the United States Agency for International Development (USAID) and the Ateneo de Manila University”.
Abstract
This primer and workbook is part of a series of publications aimed at promoting
financial literacy among the public. After discussing some basic ideas about saving
and why it is important in our daily lives, this primer offers some suggestions regarding
the management of one’s personal finances, starting with goal setting and the
identification of what the goals entail in terms of financial preparation. Alternative
financial instruments for making savings grow are also discussed and what they imply
in terms of return, safety and liquidity. Appendices describing a number of financial
products relatively accessible to small savers have been included.
PINOY’S
GUIDE
PAG PA PA H A L AG A
SA PERANG KINITA
TO MANAGING
FINANCES
PINOY’S GUIDE TO MANAGING FINANCES © 2007
Ateneo - Economic Policy Reform and Advocacy
(EPRA) Project
Produced by EPRA
Foreword . . . . . . . . . . . . . . . . . . . . . . . 7
B. Financial Planning . . . . . . . . . . . . . . . . . . . 21
References . . . . . . . . . . . . . . . . . . . . . . . . . . 71
P reface
P roviding for the needs of oneself and family for the present as well as the future
is every responsible person’s concern. The ability to keep consumption stable
through good times and bad can often spell the difference between escaping poverty and
sinking deeper into it. Securing future consumption, which is achieved through saving,
is especially important because a good part of the future is uncertain. Thus, apart from
preparing for expenditures that are expected to be incurred in the future, one also saves
in order to have enough resources to deal with unforeseen events.
Unfortunately, while many Filipino families are convinced about the importance of
saving and may actually have the capacity to save, information about where to keep
their savings, in which form it is advisable to save, and what returns as well as risks are
associated with the various alternatives is rarely available in a medium that is easy to
understand for the average Filipino. One result is that many savers content themselves
with the low (and, with inflation, negative) rates of return on regular bank savings
deposits. Alternatively, they shy away from the formal financial system altogether. It
is also not uncommon to hear stories of families that have attained some measure of
financial self-sufficiency backsliding into poverty because of unwise spending decisions
while “the going was good”, or after having lost their entire savings to some financial scam
promising unusually high returns.
This primer is a modest contribution to the effort to raise the level of financial literacy
among our population. It grows out of the conviction that without savers, there will be no
resources available for the investments needed for economic growth. Indeed, no lending
and borrowing can take place amongst individuals, households and firms, whether for
business or for consumption, without saving.
PREFACE 5
Unfortunately, savers, particularly small savers, are typically less the focus of public
attention compared to borrowers who have been the target of many special programs,
both government and private. Microfinance, for example, is more easily associated with
micro-credit in the public consciousness, even if the provision of deposit taking services
for small savers is an equally important function of a microfinance institution. In fact,
such institution cannot hope to become viable and permanent without ever mobilizing
deposits from the saving public.
The fact is that more people save than is readily acknowledged partly because saving
takes various forms, some of which are not easily captured in survey data. And because
not everyone borrows (whether through banks or from informal sources) while the act
of saving is taking place even if people are not conscious about it, savers outnumber
borrowers. This means that measures to improve the returns on saving for small savers
may have a far better chance of improving more lives than the best lending programs.
But this cannot come about if savers are not adequately informed about the alternatives
available to them, and if their hard earned savings are not reasonably protected from
unwarranted risk.
This primer is about the importance of saving as it is about how families who have
savings can make the most out of their savings. Its inspiration derives from earlier
attempts by some non-governmental organizations (NGOs) to assist overseas Filipino
workers (OFWs) and their families maximize the benefits from their hard earned
incomes by identifying productive and profitable uses for these. While it is typical for
families of OFWs to want to use the income remittances received to put up their own
small businesses, operating a small enterprise requires certain entrepreneurial skills not
6 MANAGING YOUR HARD EARNED MONEY
possessed by everyone. For those who may not have the appropriate skills to operate their
own business, investing their savings in financial instruments is one alternative toward
securing their future consumption. This primer deals mainly with the latter option. And
the intended readership is certainly not limited to OFWs and their families.
After discussing some basic ideas about saving and why it is important in our daily
lives, this primer offers some suggestions regarding the management of one’s personal
finances, starting with goal setting and the identification of what the goals entail in terms
of financial preparation. Alternative financial instruments for making savings grow are
also discussed and what they imply in terms of return, safety and liquidity. Appendices
describing a number of financial products currently on offer in the financial market have
been included. This is not meant to be an exhaustive list of such products, although these
are the ones that seem to be relatively accessible to small savers.
This primer, it is hoped, will find use in the various efforts by government, non-
government and grassroots organizations to improve the level of financial literacy of
Filipinos. It has been written and developed in a way that will give trainers the flexibility
to adopt it, either fully or in part, according to the situation and the particular interest of
their audience.
Knowledge is power.
F O R EWORD
A re Filipinos poor savers? Statistics suggest that Filipinos save much less than their
Southeast Asian neighbors. According to data from the Asian Development Bank,
the ratio of our gross domestic savings (GDS) to gross domestic product (GDP)—the
latter being a measure of national income—was 18.8% in 2002, against Singapore’s 44.8%,
Malaysia’s 41.9%, Thailand’s 31.1%, and even Indonesia’s 21.1%. Looking at these figures,
one is tempted to conclude that a country’s level of development is broadly correlated
with—and probably determined by—its ability to save. Or could it be the other way
around, i.e. the level of development determines the saving rate? The fact that Indonesia
has a lower per capita income and yet has a higher saving rate than the Philippines seems
to weaken this argument.
Saving is measured as what gets left after deducting all expenditures and debt payments
from disposable income (i.e. income after taxes). There are four general groups of savers
in an economy: households (private individuals) and unincorporated enterprises, private
corporations, government corporations, and the government itself. Persistently large
budget deficits have made government a non-contributor to national savings. And our
private saving is low compared to the rest of the region.
Why do Filipinos save so little in comparison to their Southeast Asian neighbors? The
standard answer has tended to be, “because most Filipinos are too poor to save.” There
are claims that Filipinos who do save (i.e. those with higher incomes) have saving rates
that exceed that of, say, the Singaporeans. But for the majority of Filipino households who
earn barely enough to support their needs, savings can be expected to be minimal, and
thus the overall saving rate is low.
8 MANAGING YOUR HARD EARNED MONEY
Still, others who have actually studied and worked with the poor argue that the poor do
save. Researchers have documented how poor families especially in the rural areas tend
to stock up on specific commodities—not necessarily durables like jewelry or appliances,
but storable groceries for example—and then sell these off in times of need for cash.
That is saving. It is not uncommon for poor rural households to keep a pig tied up in the
backyard, fattening it with whatever kitchen refuse can be collected from neighbors and
an occasional kilo or two of livestock feed. The intention is to cash it in at a time of need,
as at school opening time. That is saving. And then there are the paluwagan schemes one
seems to find in every squatter neighborhood, especially among the women. Again, that
is saving.
Who says the common people don’t save? They do, except that their savings never find
their way into the formal financial system, or the official statistics on saving. Chances
are that our low saving rate as officially reported is substantially understated, given these
various forms of saving actually undertaken by the poor, which, put together, would
amount to substantial sums. What more if we can channel the daily amount many of
them stake in the illegal numbers game jueteng into savings schemes instead?
only link. In other countries, enterprises have come to depend less and less on bank loans
for their financing requirements, as other financial market mechanisms (equity markets,
commercial paper, mutual funds, pension funds, etc.) have emerged as preferred saving
instruments to low-interest yielding bank deposits. There are active efforts underway in
the Philippines to correct policy distortions that have put these other mechanisms at a
disadvantage vis-à-vis the banks in linking savers to investors.
This manual is motivated by this concern for how to channel the substantial savings
coming from common citizens, including from the lower income groups, into the
financial pool. More important, it is hoped that through this manual, common Filipinos
will be able to substantially improve their financial welfare merely by saving wisely, by
being better-informed on how to do so. In this way, we may find that the apparently low
saving rate of Filipinos is more of a statistical illusion than an actual fact.
Cielito F. Habito
Ateneo de Manila University
Loyola Heights, Quezon City
A. Getting the Basics Right
Others - 0.84%
Leisure - 3.60%
Education - 25.42%
Food - 35.80%
0 5 10 15 20 25 30 35 40
What about you and your family? What do you spend your monthly
income on?
12 MANAGING YOUR HARD EARNED MONEY
2. What is ‘consumption’?
Consumption items are items that you spend on in order to survive and advance
in your work. Except for education and information, once these items are used up,
they are lost forever. That is why they are called ‘consumption’ items.
Using the definition above, tick the items below that may be considered consump-
tion items:
All of the items listed are consumption items. Some items, such as food, clothing,
shelter, transportation, education, information and leisure, are basic needs. Others,
like jewelry, luxury items, cigarettes, alcohol and the like, are non-basic needs.
Ask yourself:
• How much of my income is spent on
consumption items?
• How many of the consumption items that I
spend on are basic needs? How many are
non-basic needs?
GETTING THE BASICS RIGHT 13
3. What is ‘protection’?
Some items that you spend on serve the purpose of protecting you and your
family from the negative impact of unexpected events, such as illness, an accident
or death. These are called ‘protection’ items.
The following are examples of payments for protection. Which of them do you
have? Tick your answers.
Medical/Health Insurance (for example, PhilHealth)
Social Security System (SSS) or Government Service Insurance
System (GSIS) contributions
Life, Accident and/or Disability Insurance
Vehicle and Property Insurance
Memorial Plan
Savings refer to that part of your disposable income (that is, your income after
tax, or your take-home pay) that is not consumed. Some of these may be used
to purchase interest-earning financial assets or directly invested in business. In
either case, there is a return that accrues to you, the saver/investor.
Ask yourself:
• How much of my income am I saving?
• Am I saving enough for myself and my
family’s future needs?
Money that you save and invest accumulates and grows for your future use.
Examples of savings and investments are deposits into—
• A Savings Account
• A Time Deposit
• Long-Term Funds (for example, trust, pension and investment funds)
• Real Estate (a house and a piece of land can be sold at a higher price
in the future)
14 MANAGING YOUR HARD EARNED MONEY
Taxes are payments you make to the government so that public goods and servic-
es can be provided to you and to all other citizens of the country. Taxes constitute
national savings. The amount of taxes you pay is based on your income, the value
of your real property, and the value of goods and services that you purchase.
Overseas Filipino Workers (OFWs) are exempt from income tax but not from
other taxes. Persons who are employed within the Philippines pay all local taxes.
You cannot avoid spending on basic needs. But it is equally important for you to
spend part of your income on protection and savings.
not give you any choice but to live with a bad situation. It also puts all of your
years of hard work to waste as all of your income goes into expenses that do not
improve your and your family’s quality of life.
Obstacles to Saving
Despite the value of saving, few people are able to save enough to finance
their future needs and achieve financial independence or freedom from
poverty and want. This is true of many OFWs. According to Colayco
(2004), “Many OFWs come back with hardly enough money to retire com-
fortably after their many years of hardship. Worse, they end up with just
the same or even less than what they had when they first left. Many have
perhaps been mistreated and many more have been ill advised particularly
with regard to the money they have earned.”
Sources: Colayco, Francisco. 2004. Wealth Within Your Reach. Pera Mo, Palaguin Mo!
Dizon-Añonuevo, Mai. 2002. Migrant Returnees, Return Migration and Reintegration. In Dizon-Añonuevo,
Estrella and Añonuevo, Augustus T. (eds.) Coming Home: Women, Migration & Reintegration.
Salaried employees have “automatic” protection and savings as these items are
deducted from their salaries by their employer and remitted to the appropriate
government agencies for social security (SSS/GSIS), health (PhilHealth), housing
(PAGIBIG), and other benefits. The situation is different for OFWs whose
employers do not deduct for nor provide savings and protection instruments.
Insurance companies can help you save and provide protection for yourself and
your family. The Philippine Insurance Commission regulates the operations
of insurance companies in the Philippines. Visit the Philippine Insurance
Commission’s website (www.insurance.gov.ph) to see the complete list of
licensed and the best performing insurance companies in the country. Do
not buy from companies that are not included in the list of licensed insurance
companies.
GETTING THE BASICS RIGHT 17
Table 1-2 | Top 10 Insurance Companies Ranked by Reported Assets as of 31 December 2005, in pesos
Company Assets
The compulsory deductions from your salary are not enough for your protection
needs. Benefits from the Social Security System (SSS), Government Service In-
surance System (GSIS), and PhilHealth are limited. You will need to supplement
these benefits with your own savings and/or insurance if you want to be able to
cover all medical expenses, acquire a house of your own, or enjoy a comfortable
retirement.
The first thing to remember is that your family should not depend on only one
family member to earn an income, even if he/she is working abroad and earn-
ing in foreign currency. Can you think why? Tick your answers from the choices
given below.
Family expenses do not decrease just because one member of the
family is earning in a foreign currency.
The OFW may not earn enough to cover all of the family’s expenses.
Even if the OFW’s income can cover all of the family’s expenses, it
may not be enough to allow the family to save and pay for
protection, such as health insurance.
The other members of the family develop the mentality of
dependents and do not develop self-reliance, autonomy, concern for
others, and the values of cooperation and collaboration.
Relationships become strained and are sometimes destroyed. For
example, instead of parents supporting children, a child supports
his/her parents. Or family members compete for the support of the
OFW, causing severe conflicts.
Relying solely on the OFW’s income gives the family a false sense
of security and makes them especially vulnerable to the possibility of
a loss of income, such as illness or an accident.
Second, you and your family must PLAN and BUDGET your FAMILY
INCOME. In the same way that all family members who can earn an income
should contribute to meeting the family’s financial needs, it is important for the
whole family to jointly plan how the family income will be spent. Remember
these steps in family financial planning:
1. Set family goals together.
2. Set a time frame for achieving each family goal.
3. Discuss and determine how each member will contribute to achieving
the family goals.
4. Remind everyone of their commitment from time to time.
5. Monitor whether the family is moving towards its goals or not.
GETTING THE BASICS RIGHT 19
Expecting the OFW to shoulder all of the family’s financial obligations puts
a great deal of psychological and financial pressure on him/her.
Because they are often the sole family breadwinners, OFWs end up working
abroad more years than they had originally planned for. Despite their rela-
tively high incomes, they are unable to save enough money to come home
and find alternative means of livelihood.
Sources: Añonuevo, Augustus T. 2002. Reintegration, An Elusive Dream. In Dizon-Añonuevo, Estrella and Añonuevo,
Augustus T. (eds.) Coming Home: Women, Migration & Reintegration.
Valerio, Rosanna Luz F. 2002. Pag-ahon sa Kumunoy ng Utang: The Debt-ridden Life of Migrant Women. In Dizon-
Añonuevo, Estrella and Añonuevo, Augustus T. (eds.) Coming Home: Women, Migration & Reintegration.
B. Financial Planning
c) Health – Health is wealth, as the saying goes. Certainly, ill health can make
you poor as it prevents you from earning a living. Fortunately, people are becom-
ing more health-conscious. People want to eat the right food, exercise, and live a
healthy lifestyle. But being health-conscious is not enough. You must also have
HEALTH INSURANCE. Without health insurance, you can end up spending all
of your savings, or worse, going into debt, when someone in the family gets sick
or has to be hospitalized. SSS/GSIS and PhilHealth benefits cover only a very
small portion of health insurance needs.
d) Retirement – Very few Filipinos plan for their retirement. Many assume that
their children will take care of them when they retire. But while this is part of
the value that Filipinos place on family, financial dependence of parents on their
children can cause conflicts within the family, between siblings and with in-laws.
There are cases where the retired or unemployed mother or father is “jealous”
22 MANAGING YOUR HARD EARNED MONEY
of their child’s dependents, such as his/her spouse and children. There are also
cases of spouses resenting their parents-in-law for being a “drain” on the family
income.
In addition, it is difficult and stressful for one person to provide for the needs of
so many dependents. It is important for you to set aside money from the income
you are earning now for your own retirement, so that you do not become a finan-
cial burden on your loved ones.
e) Protection against negative events - The following are events which you don’t
want to happen but which are often beyond your control. The only way you can
protect yourself against the negative effects of these events is by preparing for
them.
• Sickness, Accident, and Disability – The best way to prepare for these
negative events is to keep yourself healthy and accident-free. You should
also keep your house, car, and other properties safe from fire and other
disasters. But there is no substitute for INSURANCE. Without accident/
disability insurance, you could end up spending all of your income and
even go into debt when you get sick, have an accident, or lose your
properties.
• Death – As the saying goes, “In life, only two things are certain—death
and taxes.” So we might as well prepare for both. You can prepare for
death by obtaining life insurance. Without life insurance, your family is
left with nothing when you die. Worse, they could end up going into debt
just to pay for your funeral expenses.
FINANCIAL PLANNING 23
Family Workshops
There are organizations that can help you and your family set goals
together. An organization that facilitates 1- to 2-hour family visioning
and goal-setting exercises for OFWs and their families is ATIKHA
(www.atikha.org).
The family workshops need not be complicated. They can be fun while
helping family members accomplish the important task of planning their
goals together. Family members should be able to voice out their goals
and hopes for the future and at the same time realize that each one has an
important role in attaining these goals.
• Have all the children received the required vaccinations (for example,
against DPT, polio, measles, BCG, hepatitis B)?
YES NO
YES NO
Health Is Wealth
Health and protection are very much interrelated. If you are not healthy
and you do not take care of yourself, you can get sick, meet an accident,
get disabled, or even die.
You need to make the goals a little more specific by asking the following ques-
tions for EACH GOAL:
• Who?
• What?
• How many?
• What /How much does it take?
• How will each member of the family (including you) contribute?
Fill in each of the tables that follow. The same tables are reproduced in Appendix
B as worksheets. You can copy the tables to a bigger sheet of paper if the space
here is not enough. Let every member contribute information especially about
costs, prices, expenses, etc. This will be a good learning experience for everyone.
Some of you may be surprised at how cheap, or how costly, some items are!
Table 2-1 | Education Goal
• Put the names of the children/siblings who plan to finish college in Column A.
• How much does each year of education/training cost (tuition, books, uniforms, allowances,
etc.)? Put in Column D.
• Add the entries in D to get the Total Cost of Education, D1.
Education • How much will the other family members contribute to your children’s/siblings’ education?
Goal Put these in Column E. Add to get the total E1.
• How much will you contribute to your children’s/siblings’ education? Calculate this and put
your answer in column F. Add to get the totals D1, E1 and F1.
• Divide D1, E1 and F1 by 12 to get the monthly costs, D2, E2 and F2.
• Below are sample computations only. You and your family should know the actual costs.
A. Name D. Cost of Education: E. Family Contribution F. Your Contribution
Tuition, Books, Clothing
and Allowance
1. Anna 80,000 80,000
2. Edgar 60,000 60,000
3.
4.
You 25,000 25,000
Total Cost D1 = 140,000 E1 = 80,000 F1 = 85,000
of Education
From filling in Table 2-1, you and your family should realize the following:
• Given the high costs today, it is impossible to depend on one family
member to support everyone else’s education. Everyone must do his/her
share to pay for this expense. Working family members should never
quit work just because there is an OFW in the family or just because
one family member has a relatively high-paying local job.
• Having more children means higher educational expenses. This is one
reason why planning the size of your family is important.
• Those who are still going to school should realize how much their
parents/siblings are sacrificing to see them through school. Given that
they are not earning an income yet, their main contribution to this
family goal is to save money, study hard, and adopt a simple and
healthy lifestyle.
It is advisable to buy pre-need plans only from the best performing insurance
companies. Visit www.insurance.gov.ph to see a list of the top insurance compa-
nies and ask an agent to explain their education plans to you. (See Appendix C for
a more detailed discussion of pre-need plans.) If you decide to buy an education
plan, include the total annual payments for these under column D. You can also
choose to invest the money you wish to allot for your child’s future education in
another investment instrument, instead of buying a pre-need education plan. Dif-
ferent types of investments instruments are discussed in Part C of this primer.
FINANCIAL PLANNING 27
Renting a house or apartment all the time is expensive in the long run because
you “lose” all your payments to whoever owns the house. When you buy and
make monthly installments for a house, you don’t lose these payments because
you become the owner of the house. You are effectively paying yourself. Later,
you can sell your house or take out a bank loan using the house as collateral.
Are all employable/employed persons in the family members of PAGIBIG or
SSS? If not, visit http://www.pagibigfund.gov.ph/mt_faq.htm to find out how to
become a member.
If you are an OFW and cannot afford to buy a house and lot now, at least make it
your top priority to become a member of the PAGIBIG Overseas Program. Visit
or download http://www.pagibigfund.gov.ph/sp_h2mpl_pop.pdf.
If you are newly employed locally, ask your employer to make you a member of
PAGIBIG and make sure your contributions are actually remitted to the housing
fund.
28 MANAGING YOUR HARD EARNED MONEY
• Make sure that the property you want to buy is properly titled and has
no claimants (“clean title”) other than the owner. You can find this out
from the Register of Deeds of the town or city where the property is
located.
• After doing the above and you find out that you can easily afford to
make a “Cash Payment” (that is, give the property’s total price in one
payment), ask for a big discount (10% or higher) because you are doing
the owner a big favor.
• If you can get a health plan that covers the children too, then so much
the better.
30 MANAGING YOUR HARD EARNED MONEY
Ask yourself:
• If I die today, how much money should I leave
with my immediate family (beneficiaries) in order
for them to still live comfortably?
• This is the basic question to ask when choosing
your life insurance plan. Call this amount Z.
• If you can afford the premium, get the insurance plan that will pay out
Z amount of money to your family. If you cannot afford the premium,
ask your agent for insurance plans that you can afford. Remember that
if you miss even a single premium payment you may forfeit your pre-
vious payments and your insurance! So make sure you choose a plan
that you can afford.
• You cannot be expected by other family members to pay for their life
insurance. By paying for your life/accident/disability insurance, you
FINANCIAL PLANNING 31
are making sure they receive adequate monetary support when you
pass away. However, you and your spouse can discuss how the two of
you can share in insurance payments to make sure that your children
will be properly supported if one or the two of you pass away.
• To set the amount of insurance for your property, ask yourself, “How
much should the insurance be so that I can rebuild my house (in case
of fire and other property damage) to at least the same state it was
before?” Then, as above, find out how much you can actually afford.
Pension
Total P1 = Q1 = R1 =
Monthly P2 = P1/12 = Q2 = Q1/12 = R2 = R1/12 =
A pension fund is simply a pool of money that you build through regular sav-
ings. The company you buy it from invests it so that it can grow substantially. It is
classified as a pre-need product and by itself is not considered insurance. Again,
it is advisable to buy retirement/pension plans only from the best-performing
insurance companies.
Ask yourself:
• How much money should I receive when I
retire so that my family and I can still live
comfortably?
• Some financial advisers suggest that you can still
live comfortably if you receive 70-80% of your
salary before retirement. Calculate this.
Call this amount Z1.
32 MANAGING YOUR HARD EARNED MONEY
• If you can afford the premium, get the retirement/pension plan that
will pay out Z1 amount of money to you when you retire. If you cannot
afford the premium, ask your agent for pension plans that you can af
ford. Again, make sure you choose a plan you can afford.
• For example, you are now 21 years old and you want to receive a lump
sum of more than PhP 2 million when you retire at 60 years old. There
are pension plans offered by insurance companies that will give you
a lump sum of PhP 2.2 million upon retirement for which you have to
pay only PhP 1,442 per month for 5 years. This means you pay only
a total of PhP 86,550 during those 5 years but you get more than PhP 2
million when you reach 60.
• Let us say you want to use your money now for other things and you
start paying your pension plan only when you are 31 years old. Using
the same computation, you will get only around PhP 800,000 when
you retire at 60. So it is better to start building your pension fund when
you are still young. If you still have extra money after paying off your
pension plan in 5 years, then you can buy another plan to give you
more money when you retire.
• Encourage your spouse (and your parents) to save for his/her retire-
ment even if he/she is earning less than you are. You can do this
by “matching” his/share with a contribution from you. For example, if
he/she contributes PhP 1,000/month to his/her pension, “match” it
with PhP 500 or PhP 1,000 aside from paying for your own pension.
That is if you can afford it, of course. Your siblings should be respon
sible for their own retirement.
FINANCIAL PLANNING 33
You MUST:
1. Encourage everyone to participate in listing, comput-
ing, and validating your list of expenses. You will have
a lively discussion for sure.
2. Make a separate list of your own expenses, especially if you
are an OFW. This could help other family members realize how much
you are sacrificing by contributing to their expenses while spending
very little for your own.
34 MANAGING YOUR HARD EARNED MONEY
Fill in the Family Budget table below with the amounts you calculated from the
previous tables.
Negotiate among yourselves the realistic amounts and contributions each mem-
ber can make. You may have to go back to the previous tables to recalculate and
renegotiate.
Remember: Each one should make a contribution no matter how small. For
children, this may mean saving on expenses and putting their money in the bank.
For employable adults, this means looking for employment or maintaining their
present employment even if they are receiving only a modest salary. It also means
diligently paying for their insurance and pension plans. After you have negotiated
your respective contributions, you can compute the totals W, X, and Y.
Now that you have filled in this final table, you have finished most of the Plan-
ning and Budgeting Process. Congratulations!
2. Review the Family Budget and actual costs and contributions twice or
thrice a year to see if it is being met or whether it needs to be revised.
You may have to assign a specific member of the family to lead this
important task.
Don’t worry if you cannot finish the Family Budget quickly. You really need
plenty of information (tuition fees, insurance, housing payments, etc.) to fill it up.
Just make sure you do fill it up somehow and get everyone’s commitment to live
up to it!
You have already done your saving by “paying” for your Education, Housing,
Health, Insurance, and Retirement goals before your consumption needs. This is
“saving before you spend” and “paying yourself first.” Your savings will help you
cover your family’s needs when you are no longer able to work.
Looking back at the family budget, you can say that even if you and your family
spend the amount V completely every month, you would have been able to save
an amount that is at least equal to your payments for Insurance and Retirement/
Pension. If you are paying for the purchase of education plans and a home, these
are additional savings for you.
Compute for the minimum amount that you and your family are actually saving
per month by adding all of your payments for Insurance and Retirement. If you
are buying education plans or a home, add these also. You will see how much you
are already saving automatically without your even knowing it!
C. LETTING YOUR MONEY GROW
14. What do you do with the money left over after you
have met your family’s financial needs?
If you think this excess income or surplus is going to continue for some time,
then you can increase your retirement/pension plans. This has the effect of
“paying yourself more while paying yourself first.” Ask your insurance agent for
advice on how to do this.
If you think the surplus is going to be for a short period only, then you can invest
it directly in short-term investments.
38 MANAGING YOUR HARD EARNED MONEY
As an individual, you can directly put your money into the following:
There are three things to consider when you invest: Safety, Liquidity, and Return.
While you will want to maximize all of these three things, this may not be pos-
sible at all times. One factor will always counteract another. So you have to strike
a balance among the three depending on your objective(s) in investing your
money.
40 MANAGING YOUR HARD EARNED MONEY
Source: Colayco, Francisco. 2004. Wealth Within Your Reach. Pera Mo, Palaguin Mo!
a) Safety
The first rule of safety is to deal only with licensed agents of top-performing
banks and insurance companies. Ask for documents proving that the agent you
are dealing with is an authorized representative of the company. You should also
ask for proof that the company is a bank licensed by the Bangko Sentral ng Pilipi-
nas (BSP) [http://www.bsp.gov.ph/banking/bspsup.asp] or an insurance company
licensed by the Philippine Insurance Commission [http://www.insurance.gov.
ph/htm/_statistics.asp].
Next, ask yourself this question: “What is the worst thing that can happen if I put
my money in this investment?”, or “What is the risk involved?”
The safest investments are Savings and Time Deposits because these are insured
up to a certain amount by the Philippine Deposit Insurance Corporation (PDIC).
LETTING YOUR MONEY GROW 41
Right now, you can deposit up to PhP 250,000 in savings and time deposits in
any bank and no matter what happens to that bank, the PDIC will pay back your
money. However, if your bank closes down, it will take some time before you can
recover your deposit. Also, you will not be able to recover any amount above the
PhP 250,000 limit if no other bank takes over your bank.
Although savings and time deposits up to PhP 250,000 are guaranteed and are
therefore safe investments, they also give you the lowest return on your invest-
ment. This is an example of how the different factors affect each other. In this
case, increased safety brings about low returns. It is difficult to find a highly safe
investment that has very high returns at the same time. That is why when a bank
or financial institution offers you very high returns on their savings and time
deposits, BEWARE! It is highly likely that there is a great danger or risk that they
are not telling you about.
There are other investments that can give you a higher return but which involve
higher risk. These investments will be discussed in the next section. The different
types of risk are explained in Appendix D.
42 MANAGING YOUR HARD EARNED MONEY
b) Liquidity
“How quickly can I withdraw my money when I need it?” This is a question about
liquidity.
Again, savings deposits are the most liquid instruments. You can withdraw from
them anytime if you have access to Automated Teller Machines (ATMs). Time
deposits cannot be withdrawn until their term is finished. These may be 30, 60,
90 days or longer. Again, the disadvantage of these relatively liquid investments is
their low return.
Fortunately, there are now investments that can give you greater liquidity and
higher returns. Banks, especially the large ones, offer Unit Investment Trust
Funds (UITF). Although you cannot withdraw them during the prescribed mini-
mum holding period (which can range from 30 to 90 days), you can withdraw
from them anytime after that subject to certain conditions.
However, unlike savings and time deposits, UITFs are not insured or guaranteed
by any institution. So, theoretically, you can lose most, if not all, of the money
you invested. Also, UITFs, even within one bank, have different returns. Some
perform well and others, poorly. You have to choose the UITF that fits your
requirements and expectations. You need to know and understand what instru-
ments the UITF is investing your money in. We will discuss these in a later sec-
tion. Again, ask your bank about UITFs and their individual performance.
Mutual funds are invested and managed much like UITFs. However, banks are
not allowed to sell mutual funds. You can invest in mutual funds through insur-
ance companies and investment houses.
c) Return
ciation in the value of the asset you invested in, such as land, buildings, or foreign
currency, is another source of return on your investment.
Interest earnings are a common form of return on your investment. Let us say
you invested PhP 100,000. If you earn interest of 10% p.a. (“per annum” or per
year), then you will receive an interest income of 10% of PhP 100,000 or PhP
10,000 for every year that your investment is active. This income may be paid to
you in quarterly, semi-annual, or annual installments. In this kind of investment,
the value of your investment (called “principal”, in this case) remains the same at
PhP 100,000.
If you invest in UITFs or in mutual funds, you will not receive interest payments.
Instead, your PhP 100,000 may grow or lose value across time. If investments are
managed well, you may not have to wait for a year for your money to grow to PhP
110,000. However, if the funds are poorly invested, your money may go down in
value to, say, PhP 90,000. See Appendix F for a description of different types of
mutual funds.
Begin with your investment objective(s). At this point, we are assuming that you
are investing an amount that is over and above what you already planned and
budgeted for your and your family’s Insurance, Retirement, Education, Health,
Housing and Consumption needs. In other words, the amount you wish to invest
is the surplus you generate from your income after you deduct your monthly
contribution, Y, and your monthly expenses, V, from your monthly income.
44 MANAGING YOUR HARD EARNED MONEY
Case 1
Let us say your investment objective is: “To save and invest money to be able to
buy a home in 5 years.”
First, make sure you are a regularly contributing member of PAGIBIG. Your
regular contribution is the main foundation of your savings and investment
objective.
Safety is the main consideration in attaining your stated objective. You want your
savings and investment to be intact so that you can make a down payment or, at
most, fully pay for your dream house at the end of 5 years. You won’t mind if the
investment is not too liquid because you won’t need it before the 5 years is over.
Of course, the return on your investment matters but you are ready to sacrifice
some of it for the sake of safety.
Your best options are retail treasury bonds (RTBs), if these are available. If
RTBs are not available, UITFs or mutual funds invested mostly in long-term
government securities are another option. Your bank should inform you what
instruments their UITFs are invested in. There are high-risk UITFs which have a
significant amount of investments in stocks. There are more conservative UITFs
that are invested mostly in government securities. You should choose the latter.
You should also ask your bank to show you the historical performance of these
UITFs. Some banks post graphs of the past performance of their UITFs. You
can see from these graphs whether the UITFs are increasing or decreasing in
value or whether their values
are fluctuating or have remained
steady. You would want a UITF
that is growing steadily. The
graph on the right shows a fund
that is growing steadily.
LETTING YOUR MONEY GROW 45
You can also consider investing in a mutual fund. See Appendix F for the
different types of mutual funds. To be on the safe side, invest only in the best
performing mutual funds. Below is a list of the Top 10 Mutual Funds in the
Philippines.
Table 3-3 | Top 10 Mutual Funds Ranked by Reported Assets as of 31 December 2003, in million pesos
Still, you have to know the UITFs’ and mutual funds’ terms and conditions
(minimum investment, fees, taxes, holding period, etc.), historical performance,
and the instruments it invests in. Only then can you form an idea of the safety,
liquidity, and return of such funds.
Case 2
Another possible investment objective is: “To make as much money as possible in
the shortest possible time.” Return and liquidity are the main considerations here.
You would want to make investments in short-term (30-60 days) instruments
that give the highest return. You can look for UITFs that are invested in stocks
(you can also invest in individual stocks but you will need a stock broker for
this) which have a definite growth prospect in the short term. However, the most
important guide would be the UITF’s historical and recent performance.
46 MANAGING YOUR HARD EARNED MONEY
Is the value of the UITF growing rapidly? Has it not yet reached its peak?
Unfortunately, you can never get 100% correct answers to these questions.
And that’s where the risk (or lack of safety) lies. Rapid growth can suddenly be
reversed by rapid losses in the stock market. Below is the graph of a fund that
grows and falls rapidly. Analysts call this fund “risky” and “volatile”.
How much of your investment are you prepared to lose? If you are not prepared
to lose any of it, then you might want to rethink and revise your investment
objective to: “To make as much money as possible in the shortest possible time
from low to moderate risk instruments.”
If you change your objective to this, then look for UITFs with a short holding
period (30-60 days) that have been showing significant growth but which are
substantially invested in government securities. The latter moderates the risk but
also brings down the return. However, in life as in investing, you can’t win them
all.
From beginning to end, what you need to be able to balance safety, liquidity,
and return is INFORMATION. The bank or financial institution offering you
investment products should give you all of the information you ask for about
these products. They should also give you information about how their company
itself is performing financially. If they are not willing to give you information
about the performance of their products and their company, DON’T DEAL
WITH THEM.
LETTING YOUR MONEY GROW 47
You should also get independent information from the Bangko Sentral
ng Pilipinas (BSP) [http://www.bsp.gov.ph/banking/bspsup.asp] about the
performance of banks, and from the Philippine Insurance Commission [http://
www.insurance.gov.ph/htm/_statistics.asp] about insurance companies.
Table 3-3 | Top 10 Philippine Commercial Banks Ranked by Reported Assets as of the 2nd Quarter
of 2006, in million pesos
Company Assets
Here are some tips for dealing with banks from the Philippine Deposit Insurance
Corporation (PDIC):
• Read the fine print. Depositors should also be careful to read the
fine print—tiny words, phrases, or sentences in the passbook,
certificate of time deposit, or any document that need to be signed.
• Check for signs that the bank may be in trouble. Depositors should
be wary when they cannot withdraw their money on demand or if
they can withdraw money only on a schedule given by bank officers.
They should also be cautious of aggressive solicitation by bank
marketing personnel. Finally, depositors should take note of their
bank’s past due loan ratios. High levels of unpaid debt may cause a
bank to have difficulty in servicing withdrawals.
• Achievement Cluster
Ability to seek and identify opportunities
for going into business
Persistence
Commitment to work
Ability to take manageable moderate risks
(that is, risks where there is a good chance
of recovery and success)
Efficiency and commitment
to quality standards
• Planning Cluster
Goal setting
Information seeking
Systematic planning and monitoring
• Power Cluster
Ability to persuade and network
Self-confidence
Source: UP Institute for Small Scale Industries. 2002. 13th Start Your own Business Course Module.
If you think you have what it takes to become a successful business person, then
it’s time to plan your business.
First, think about what business you can engage in. Look around you, identify
the business opportunities, and evaluate the business options. Do a situational
analysis, in which you identify the strengths, weaknesses, opportunities and
threats to your proposed business.
50 MANAGING YOUR HARD EARNED MONEY
Ask yourself:
• What type of service or product do I want to offer?
• Will my proposed service or product satisfy a need
or want?
• Do I have a market for your service or product? Are
there people willing to pay for my service or
product?
• Will my intended market continue to patronize my
business for years and years to come?
• Are there others offering the same service or
product? Are they able to meet the demands of the
market? Do I have a competitive advantage over
these others?
• Can I sell my service or product at a profit?
• Am I competent in this field of business?
• Do I have the necessary resources—capital, supplies,
equipment, skill, technology, and labor—for this
type of business?
Once you have satisfied yourself that your business idea will work, then it’s time
to write out a business plan. A typical business plan includes the following:
B. Marketing Plan
• product range
• product specifications
LETTING YOUR MONEY GROW 51
• product mix
• projected demand
• target market
• competition
• selling strategy
C. Production Plan:
• land and building requirements
• location and layout of store/plant facility
• process
• equipment needed
• power requirements
• utilities requirement
• store/plant capacity
• sources of raw materials/goods
D. Organizational Plan
• staffing complement – number of staff and required skills
• business organization, including duties and responsibilities
F. Financial Plan:
• calculation of initial investment required
• operating requirements and costs
• working capital estimate
• projected sales and production program
• total project cost
• project financing sources
• profitability at 100% capacity utilization
• breakeven analysis
• projected Balance Sheet
• Income Statement and Cash Flow
52 MANAGING YOUR HARD EARNED MONEY
Source: UP Institute for Small Scale Industries. 2002. 13th Start Your own Business Course Module.
LETTING YOUR MONEY GROW 53
Hizon says one reason is lack of skills related to the business. Another reason is
poor choice of business to engage in. According to Colayco (2004, p. 177), “Ex-
cept for a really entrepreneurial minority, most…go into businesses that are easy
to enter…[such as] sari-sari stores, FX taxi business, [and] tricycle business…
[These are} businesses that are very often already crowded. They end up going
after small markets that cannot sustain too many sellers such as hot pandesal,
sago drinks and fish balls.”
If you have the right attitude and the skills, lack of capital is a problem that you
can easily solve.
What about having too many dependents or relatives? It depends. If your depen-
dents or relatives can provide loyal, cheap and reliable human power, then they
can contribute to the success of your business. However, if your dependents are
poor workers, unreliable, and unwilling to earn their own keep or pull their own
weight, then they will pull your business down.
Source: UP Institute for Small Scale Industries. 2002. 13th Start Your own Business Course Module.
A ppendi x A
To be insured, you must regularly pay your insurance company monthly, quar-
terly, or annual “premiums”. Insurance companies invest the premiums they
receive from you and other clients in selected financial instruments in ways that
are regulated by the government through the Philippine Insurance Commission
which is under the Department of Finance. Some commercial banks with univer-
sal licenses also offer insurance products. (Ateneo-EPRA Project, 2006)
“The Government Service Insurance System (GSIS) and the Social Security
System serve as the largest pension funds in the Philippines. These two govern-
ment-administered funds invest in government securities, the stock market,
commercial papers, and property development. Their income usually comes from
salary and housing loans, interest income in investments, dividends, and foreign
exchange gains. (EIU, 2004) Apart from GSIS and SSS, there is another smaller
56 APPENDIX A
“At present, GSIS and SSS are experiencing difficulty in meeting their redistribu-
tion goal. Specifically, benefits paid to members have outpaced the amount of
contributions of members. Meager returns on investments, poor compliance and
enforcement in payment of premiums, low collection rate on loans, huge losses
from housing programs, and the lack of regulatory institution are threatening the
viability of GSIS and SSS. Nonetheless, there have been initiatives to reform the
country’s pension system and enhance its role in capital market development.”
(Ateneo-EPRA, Project, 2006)
Two In One
There are now many insurance products that combine life insurance
with pension plans. Study these well and ask yourself the same questions
as above to help you choose the right product. The advantage of these
combined products is the ease of payment. For one payment, you get two
benefits—your life is insured and you continuously build up your retire-
ment/pension fund.
A ppendi x B
• To get the monthly figure for Clothing Expenses, calculate expenses for each
family member per year, get the total for all family members, and then divide
the total by 12.
• Include cell phone loads in the cost of Utilities.
Pre-Need Plans
The Rules on Pre-Need of the Securities and Exchange Commission (SEC)
defines pre-need plans as contracts that provide for the performance of a future
service(s) or payment of an agreed upon amount of money at some time in the
future, in exchange for the payment of the plan holder of a specified amount. It
includes life, pension, education, internment (burial/memorial plans), and other
plans that may be approved by the SEC.
In the Philippines, pre-need pension plans usually have the following features
(Aquino, 2002):
• It usually takes five years of regular monthly, quarterly, or annual
installments to complete payment of a pre-need plan.
• You can choose whether you get the benefits of your pension when you
reach a certain age (for example, 60 years old) or a number of years (for
example, 20 to 30 years) after you complete your payments. When you
get your benefits is called the maturity date.
• You can choose whether you get the benefits of your pension in lump
sum or in installments or both.
• In case of your death before the maturity date, pay-out will still be
made at maturity date to your chosen beneficiaries.
62 appendix C
Types of Risk
(The information below is adapted from the Primer on Savings and Investment Instruments in the
Philippines, 2006, Ateneo-EPRA Project.)
a) Interest Rate Risk. Changing interest rates can have a major effect on fixed-
income investments, such as treasury bills. If you invest in treasury bills at a
fixed rate of 7% per annum (per year) and the interest rates in the market
later increases to 10% per annum, then you lose the opportunity to earn the 3%
difference. You don’t actually lose money. What happens is that you could have
earned more money but didn’t.
c) Credit Risk (or Default Risk). This is the possibility that the issuer of a bond
(for example, a company or a government institution) will fail to make timely
payments of interest and principal to investors in the bond. If the bond is part
of a mutual fund or a UITF, the risk will certainly affect the net asset value
of that fund. For stocks, credit risk is the likelihood that the company issuing
the stock may have financial problems that may cause it to cut or suspend its
dividend payments.
d) Market Risk. This arises from the ups and downs and sentiments of the
markets, which may affect the prices or value of bonds and stocks.
64 appendix D
f) Political Risk. Political risk stems from changes to the political and socio-
economic conditions of the Philippines that may affect market sentiments,
business profits, and investment returns.
A ppendi x E
Government Securities
What are government securities?
From time to time the Philippine National Government or its agencies, such
as the Department of Finance (DoF), issue debt securities to finance deficits
and development projects. These debt securities, commonly referred to as
Government Securities or GS, can be alternative forms of investments. Because
they are either directly or indirectly backed by the Philippine Government,
they carry lower interest rates compared to those issued by private companies.
(Ateneo-EPRA Project, 2006)
1) Treasury Bills
Treasury Bills (T-bills) are direct and unconditional obligations of the national
government. They are issued by the Bureau of Treasury (BTr) of the DoF, to
mature after one year or less. They can also be traded in the secondary market
before maturity. As an investor you can choose between T-bills that mature in 91,
182 or 364 days. Banks, which comprise majority of the Government Security
Eligible Dealers (GSED), bid for T-bills in the weekly auctions held by the BTr.
The banks then resell the T-bills to investors.
Strictly speaking, T-bills do not bear interest. They are issued and sold at a
discount from their face value and are redeemed at maturity for their full face
value. For example, if you buy a 364-day T-bill with a face value of PhP 100,000 at
a discount of 12%, you only pay PhP 88,000 for it. After 364 days, you get repaid
PhP 100,000, giving you a gain of PhP 12,000. (Ateneo-EPRA Project, 2006)
66 appendix E
2) Treasury Notes
Fixed Rate Treasury Notes (FXTNs) are direct and unconditional obligations
of the national government issued by the Bureau of Treasury (BTr). They are
interest-bearing, carry a term of more than one year, and can be traded in the
secondary market before maturity.
FXTNs are considered one of the prime investment instruments in the market.
They are safe, liquid, and offer attractive returns to investors. They may mature
in 2, 5, 7 and 10, years. The interest rate is fixed for the life of the FXTN based on
the results of its auction. Interest can be payable semi-annually or twice a year.
FXTNs are issued and sold at a price that is equal to their face value. They are
redeemed at maturity for the full face value plus interest of the last period. For
example, if you buy a two-year FXTN with a face value of PhP 1,000,000 at an
interest rate of 12% payable semi-annually, you will pay the face value of PhP
1,000,000. Thereafter, you will receive interest payments of PhP 60,000 twice a
year. At the end of two years, you will receive PhP 1,000,000 and the last interest
payment of PhP 60,000. (Ateneo-EPRA Prohect, 2006)
Retail Treasury Bonds (RTBs) are like treasury notes but usually have longer
maturity (5 years and above) periods. They are direct and unconditional
obligations of the national government that primarily caters to the retail market
or the end-users. Issued by the Bureau of Treasury (BTr), they are interest-
earning, carry a term of more than one year, and can be traded in the secondary
market before maturity. RTBs are safe, liquid, and offer attractive returns to
investors. The interest coupons of treasury bonds are paid to the investor each
quarter.
for FXTNs except that the face value is much smaller and the interest payments
are made four times a year (or quarterly). (Ateneo-EPRA Project, 2006)
Dollar Linked Peso Notes (DLPNs) are direct and unconditional obligations
of the national government and are issued by the Bureau of Treasury (BTr).
They bear interest, carry a term of more two or three years, and can be traded
in the secondary market before maturity. The notes track the movement of the
Philippine Peso and US Dollar exchange rate. Payments of interest and principal
are linked to the movement of the exchange rate and computed based on the
foreign exchange factor. So if the dollar goes up compared to the peso, then the
return on these instruments goes up. If the dollar goes down compared to the
peso, then the return will go down. (Ateneo-EPRA Project, 2006)
The institutions that buy government securities include mutual funds, pension
funds, insurance companies, commercial banks, corporations, state and local
governments, central bank, and international investors.
You can buy or hold government bonds through UITFs, mutual funds, or
pension plans. Those who opt to purchase government securities through these
channels tend to look for a dependable income, relative safety, and diversification
(BusinessWorld, 2005). Retail investors may also purchase government securities
(GS) such as RTBs through eligible/qualified dealers or commercial banks.
Although government bonds are the safest of investment instruments and are
relatively “risk-free”, they are not immune to credit or default risk, credit spread
risk, or downgrade risk. Credit or default risk is the possibility that the issuer will
fail to meet the terms of the obligations with respect to the timely payment of
interest and principal. Credit spread risks refer to the probability of an increase in
the spread of the bond over a default-free security (that is, US Treasury security)
68 appendix E
and a decline in the price of that bond. Downgrade risks refer to the possibility
that a credit rating firm (such as Fitchratings, Moody’s, or Standard and Poor’s)
will lower the rating of a bond. Downgrade risks are closely associated with credit
spreads risks. (Ateneo-EPRA Project, 2006)
A ppendi x F
a) Money market fund. This invests in short-term fixed income instruments (that
is, those securities with less than one year of maturity). This portfolio has the
lowest risk.
b) Bond fund. This describes a type of investment company that primarily invests
in long-term bonds and other types of debt securities. Earnings do not
fluctuate as much as those of the other types of funds.
d) Index fund. This fund consists of several stocks in the same proportion as that
of the index that the fund tracks (for example, PSE Composite index), and has
less risk than the equity fund.
e) Equity fund. This fund is mostly placed in the stock market and has wide
fluctuations. Nonetheless, in the long run (for example, 5-10 years) equity
funds tend to perform better than fixed income funds.
70 appendix F
In the Philippines, banks are not allowed to sell mutual funds because it gives
“the impression that the investor is dealing with the parent bank” (USAID-
AGILE, 1999). Mutual funds are distributed and sold by insurance companies
and asset management companies and regulated by the SEC under the
Investment Company Act. In February 2001, the SEC allowed Philippine-
registered mutual funds to invest 20% of their portfolio in foreign funds or
securities in response to weakness in the local equities market. (EIU, 2004)
Since mutual funds are professionally managed, investors need to pay specific
fees called sales fee/load. Like UITFs, the actual price of each share is calculated
in terms of the Net Asset Value Per Share (NAVPS), which is the value of all
assets held by the fund (less any liabilities) divided by the number of shares sold.
To realize earnings on a mutual fund, an investor should compare the current
NAVPS of the fund with its NAVPS at the time he/she bought it, and also take
account of cost of sales and redemption fees. The NAVPS of mutual funds is
regularly published in BusinessWorld, Philippine Daily Inquirer, and Philippine
Star.
R eferences
Print Materials
Añonuevo, Augustus T. 2002. Reintegration, An Elusive Dream. In Dizon-Añonuevo,
Estrella and Añonuevo, Augustus T. (eds.) Coming Home: Women, Migration &
Reintegration. Balikabayani Foundation Inc. and ATIKHA Overseas Workers and
Communities Initiative, Inc.
Aquino, Emilio. 2002. Private Pension Schemes in the Philippines: Regulatory Practices.
OECD, Korean Financial Supervisory Service, Korean Ministry of Labor, and
International Network of Pension Regulators and Supervisors (INPRS) Conference on
Private Pensions. October.
BusinessWorld Research. 2006. BusinessWorld 2nd Quarter Banking Report. August 16.
BusinessWorld. 2005. Unit Investment Trust Fund: Investors trust anew. 1 August.
Colayco, Francisco. 2004. Wealth Within Your Reach. Pera Mo, Palaguin Mo!
Colayco Foundation for Education, Inc.
Mendelson, Lewis. 1999. A Strategic Vision: Strengthening Mutual Funds and Improving
the Public’s Perception of Them. USAID-AGILE.
Mishkin, Frederic. 2001. Economics of Money, Banking, and Financial Markets. Adison
Wesley Longman.
Philippine Daily Inquirer. 2005. Looking for Seminars on Mutual Funds. 24 January.
UP Institute for Small Scale Industries. 2002. 13th Start Your own Business Course
Module.
Valerio, Rosanna Luz F. 2002. Pag-ahon sa Kumunoy ng Utang: The Debt-ridden Life of
Migrant Women. In Dizon-Añonuevo, Estrella and Añonuevo, Augustus T. (eds.)
Coming Home: Women, Migration & Reintegration. Balikabayani Foundation Inc. and
ATIKHA Overseas Workers and Communities Initiative, Inc.
Web Resources
Asiaweek. 2001. Asiaweek Agenda Personal Finance. Risk and Reward. Available online
at http://www.asiaweek.com/asiaweek/97/1017/aa1.html.
Eastern Michigan University. 1998. Basics of Savings and Investing (A Teaching Guide).
Available online at http://apps.nasd.com/investor_Information/tools/teachers/basics_
savings.asp.