Why financial literacy matters in a growing economy

ABS-CBN News

Posted at Jan 02 2018 11:34 AM

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MANILA - Having more money-smart Filipinos will help economic growth more sustainable, as savings are converted into investments, financial planners said.

The take-home pay of most taxpayers are poised to increase this year under the first package of President Rodrigo Duterte's tax reform program.

“If people start saving, if they start to save money then those savings will be translated into investments and then it will also create more jobs in the future, it will be sustainable,” registered financial planner Henry Ong told ANC's On the Money.

Sustainable growth should also help alleviate poverty, financial planner Marvin Germo said.

“We need to make the middle class bigger and stronger, if you make them bigger they create opportunities for people on the lower strata of the society,” he said.

Gross domestic product grew by 6.9 percent in the third quarter of 2017, beating analysts' forecasts, and maintaining the country's status as one of the world's fastest-growing economies.