Filipino values in personal finance - BusinessWorld Online

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OPINION | Filipino values in personal finance By Amelia H. C. Ylagan READ:

My mother was aghast. Her jaw dropped and froze her face to a stunned grimace. Her housemaid of 10 years, Agring, then already retired and married, with three young girls, was like family and was always welcome to come and visit, but this urgent request for a special loan perplexed Mom.

This time, Mom had to say, “No!” to Agring’s requested “loan” to enroll her daughter in expensive ballet classes and buy imported leotards and tights, tutus, and ballet shoes and pay for all the appurtenances of the training. The daughter was not a child prodigy who needed a break to crash into the limelight — she did not even show much interest in ballet, only, her mother was ambitious for her to learn how to dance ballet, like the children of middle-class parents.

Data from the Bangko Sentral ng Pilipinas show that as of 2015, around 47% of all Filipino adults had an outstanding loan. Much of these borrowings are not from formal sources like banks or cooperatives, but a stunning 62% borrowed from family members, relatives, and friends, while 10% borrowed from informal lenders like loan sharks and “5-6” lenders .

 

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