5 Bad Money Habits Filipinos Need to Kick this 2020

5 Bad Money Habits Filipinos Need to Kick this 2020Filipinos are known for being one of the most kindhearted and generous people in the world. But those admirable qualities can also make Filipinos guilty of indulging themselves with things that they can’t afford.

Many Filipinos are suffering from money problems, no thanks to bad spending habits that prevent them from having a financially rewarding life. If any of these practices are part of your money mindset and routine, be ready to get rid of them so you can attain financial wellness next year.

  • Spending extravagantly on pasalubong

You probably know an overseas Filipino worker (OFW) from among your family or friends. You yourself could be an OFW, too.

If so, you may agree that OFWs don’t mind spending lavishly on pasalubong whenever they come home for Christmas, their kids’ graduation, or any other special occasion. OFWs tend to feel obliged to make everyone happy by buying something out of their earnings.

Although people who receive gifts from OFWs find the gesture thoughtful, one shouldn’t forget the risk and sacrifices that OFWs invested to earn money abroad. OFWs shouldn’t be pressured to give pasalubong to every single relative and neighbor.

How to kick this habit?

Instead of splurging on material pasalubong, treat your loved ones to frugal but priceless experiences. For instance, treat them a day at the movies. You can save a good amount by making the best out of online vouchers. You can use Cashalo’s PayLater and avail of discounted coupons to GMovies or Robinsons Movies.

  • Love for celebrations

Filipinos are a fun-loving bunch. We are fond of throwing parties, from birthdays, baptismal celebrations, and despedida to wedding anniversaries… the list goes on.

Sometimes, the host of the party has to pay for a caterer to make sure that there’s good food and matching drinks to greet the guests. However, this can add costs to party expenses.

While celebrating special occasions is one of the joys in life, hosting parties now and then can be needlessly extravagant. If you would be spending a lot of money in one day, you might want to evaluate if the occasion really calls for it.  Otherwise, it’s not practical and economical.

How to kick this habit?

You may want to reconsider having parties and inviting a lot of guests, and instead opting for a simpler but equally enjoyable moment with the celebrator or immediate members of your family.


If you’re a Cashalo app user, you’re in luck! You can avail of Cashalo’s PayLater to get online vouchers, which allow you to save up to 50% off on Jollibee, Red Ribbon, and Chowking meals. 

  • Bahala na si Batman

This expression pertains to Filipinos’ belief that the future will take care of itself—represented by the superhero character Batman who will fly down to save the day. Instead of saving for the future, Filipinos would rather deal with a situation as it happens.

When emergencies like job loss, family sickness, or death happens, that’s the only time that some Filipinos will start raising funds to cover expenses. Unfortunately, the most common and easiest recourse for many Pinoys is to borrow money from loan sharks at high-interest rates.

The problem doesn’t end at this point. Paying off loans can leave Filipinos penniless, so they are often forced to take out another loan. This starts a cycle that leaves Filipino borrowers deep in debt.


How to kick this habit?

Financial planning can save you from a whole range of money problems. You can start by creating a weekly or monthly budget, and then set aside something for your savings. Even if you only get to save small amounts, as long as you do it consistently, you can build an emergency fund that you can use when the need arises.

If you need to take out a loan, download the Cashalo app. As a top loan app in the Philippines, Cashalo can help you with your emergency expenses through personal loans with low-interest rates starting at 3.95%.

  • Mañana attitude

Filipinos have the habit of doing things at a later or more convenient time. When it comes to financial planning, Filipinos may come up with varied reasons why they can’t afford to save, invest, or build a retirement fund early.

However, delaying these things often leads to not getting anything done at all. Thus, Filipinos have a hard time coping with financial problems until the only solution left is to borrow from family, friends, or informal lenders.

How to kick this habit?

It pays to remember that every time you put off saving or investing, you’re losing an opportunity to grow your money. Don’t let your current financial difficulties make you think that you should wait for things to get better. Instead, review your finances to see the areas where you can cut spending so that you’ll have enough cash to put toward your savings or retirement fund.

  • Irresponsible borrowing

Loans per se are not bad if they help you improve your finances in the long run. Perhaps you need to buy a new laptop after your old one broke so that you can continue with your freelance work. Or maybe you need to consolidate your debt with one loan provider that charges the lowest interest rate.

However, there is such a thing as irresponsible borrowing, which makes it hard for many Filipinos to dig themselves out of debt. Borrowing from informal 5-6 lenders is one example. This type of lending charges a whopping 20–60% interest rate, which only worsens the situation since it’s difficult to pay everything off in one go or without taking out another loan the next time around.

How to kick this habit?

Before borrowing, make sure that it’s for your essential needs only and not for unnecessary expenses. Be a prudent borrower by limiting the number or amount of loans you take out. Shop for the lowest loan interest rates, such as those offered by Cashalo. This will help you avoid getting into the cycle of endless borrowing with outrageous fees.

Being Smart with Money

Bad money habits can cause a lot of financial distress for the whole family, so try to steer clear of them as early as possible. As they say, old habits die hard, and you don’t want to get stuck with them.

Whatever money decision you make, be sure that they help you manage your finances more effectively instead of causing more woes for you. Cashalo’s credit app offers loan products that are suitable for your financial goals. 

Download the app to start becoming smart with your money needs!