pdic_UsapangPera_GuideBook
pdic_UsapangPera_GuideBook pdic_UsapangPera_GuideBook
“In our case, we are saving up for your and Tessie’s high school and college education. Your Tatay is able-bodied right now and capable of working hard in a foreign land. But that will not be forever. We just want to make sure that even if things do not work out as we planned, we will still have more than enough money for you and Tessie to complete your education,” Mang Domeng adds. Just then Aling Lorna and Tessie walk in on the two and ask what they are talking about. Mang Domeng repeats what he had just told Sonny. The two children look at each other and then burst into laughter. 18 Why and How to Save
Financial Expert’s Corner The reasons for saving will vary depending on the life-event stage of the individual or family. Please refer to Figure 1 for an overview of life-event stages and the corresponding reasons for saving. As the individual hits the workforce, his reasons for saving will be focused on himself. The reasons for saving will be mostly for shortterm needs and wants like night-outs with friends, the purchase of gadgets, clothes and sometimes, even a car. Some would be more open-minded and will save up for a post-graduate degree. Still others may discover the entrepreneurial spirit within them and save up to eventually start and run a small business. Typically, people would be in their early to mid-twenties in this life-event stage that we can call, “Building a Career.” The call to “Building a Family” can come as early as 26 up to 35 years old. Those following this normal track will initially be focused on the wedding. With the way weddings are being conducted nowadays, couples-to-be would need to save up to several hundreds of thousand pesos just for the wedding ceremonies and honeymoon. This is probably why those getting married prefer to receive cash instead of non-cash wedding gifts. Newsflash: children’s education just got longer with the implementation of the Kindergarten (K) + 12 program of the Department of Education. The total cost of a K + 12 and four-year college education nowadays could run up to over Php 2 million for just one child 2 . 2 Assumes Php80,000 for kindergarten inflated by 5% every year up to 12 th grade. College tuition fee now is assumed at Php125,000 and inflated also by 5% every year. Why and How to Save 19
- Page 2 and 3: Copyright 2013 by the Philippine De
- Page 5 and 6: Foreword Through the Philippine Dep
- Page 7 and 8: insured deposits. This Guidebook is
- Page 9 and 10: Table of Contents A Brief History o
- Page 12 and 13: Just like in the United States of A
- Page 14: Table 1 1 Maximum Deposit Insurance
- Page 17 and 18: Money is Important 7
- Page 19 and 20: A Brief History of Money At the hou
- Page 21 and 22: Different Forms of Money Seeing his
- Page 23 and 24: Financial Expert’s Corner They sa
- Page 26 and 27: The Different Life-Event Stages Six
- Page 30 and 31: The next life-event stage is where
- Page 32 and 33: How to Save Mang Domeng, as if to r
- Page 34 and 35: Financial Expert’s Corner Saving
- Page 36: Why and How to Save 1. There are ma
- Page 39 and 40: A few minutes later, Tessie is alre
- Page 41 and 42: • Suspicious transactions are tra
- Page 43 and 44: Financial Expert’s Corner In acco
- Page 45 and 46: Banks may or may not issue an ATM c
- Page 47 and 48: He says that all that bank tellers
- Page 49 and 50: Tessie expresses some concerns. “
- Page 51 and 52: Aling Lorna smiles and continues,
- Page 53 and 54: Located on the upper left hand corn
- Page 55 and 56: Financial Expert’s Corner To avoi
- Page 57 and 58: Mang Domeng says to Aling Lorna,
- Page 59 and 60: Financial Expert’s Corner It shou
- Page 61 and 62: In closing the deposit account, you
- Page 64 and 65: It’s 5:30 AM on a Wednesday, and
- Page 66 and 67: The over-reliance on heuristics giv
- Page 68 and 69: Financial Expert’s Corner Money a
- Page 70 and 71: Financial Expert’s Corner It can
- Page 72 and 73: Ponzi Schemes and Pyramiding Aling
- Page 74 and 75: But before the couple leaves, Harry
- Page 76: More Than Just Interest Rates 1. He
“In our case, we are saving up for your and Tessie’s high school<br />
and college education. Your Tatay is able-bodied right now and<br />
capable of working hard in a foreign land. But that will not be forever.<br />
We just want to make sure that even if things do not work out as<br />
we planned, we will still have more than enough money for you and<br />
Tessie to complete your education,” Mang Domeng adds.<br />
Just then Aling Lorna and Tessie walk in on the two and ask what<br />
they are talking about. Mang Domeng repeats what he had just told<br />
Sonny.<br />
The two children look at each other and then burst into laughter.<br />
18 Why and How to Save