A quiet caution has settled over Filipino households, despite rising incomes. Even with a generally positive outlook, families are bracing for increased expenses in the months ahead, carefully considering every peso.
Recent findings reveal a deliberate shift in spending habits. Filipinos aren’t necessarily cutting back entirely, but they are becoming far more intentional with their money, meticulously planning purchases and cautiously approaching credit.
The upcoming holiday season will see noticeably tighter budgets for half of all families surveyed. A mere 27% are planning to indulge in significant purchases, a stark contrast to the more free-spending attitudes of previous years.
This restraint arrives alongside a wave of optimism – a remarkable 75% of Filipinos anticipate income growth over the next year. An even larger 80% express confidence in their household’s financial stability for the coming year.
Experts describe this dynamic as a reflection of the broader economic landscape: growth continues, but at a more measured pace. It’s a “practical optimism,” where participation in the economy is deliberate and financially considered.
Underlying this cautious optimism are persistent concerns. Inflation on essential goods remains the top worry for 81% of households, followed by job security (57%) and rising interest rates (45%).
These anxieties highlight a focus on long-term financial stability, shaping budgeting decisions more powerfully than fleeting trends. Filipinos are prioritizing resilience against enduring economic pressures.
Despite the caution, access to credit remains vital for many, with 58% of Filipinos viewing it as essential to achieving their financial goals. Confidence in accessing credit is relatively high, particularly among Gen X (47%) and Millennials (46%).
However, the *type* of credit sought is evolving. A clear preference is emerging for smaller-scale loan products, with personal loans (49%) and “buy now, pay later” schemes (35%) gaining significant traction.
This signals a fundamental shift in perspective. Credit is no longer seen as a necessity, but as a tool – a choice to be carefully weighed against job security and existing savings. It’s a move towards responsible financial management.
The emphasis is now on thoughtful utilization, leveraging credit strategically rather than relying on it as a financial lifeline. This evolving mindset underscores the importance of regularly monitoring one’s credit health and staying informed.
The findings are based on a survey of 961 Filipino adults, conducted over several weeks in late September and October, offering a detailed snapshot of the nation’s financial sentiment.
