Bank Accounts

Filipinos Should Have Bank Accounts, Here’s Why!

As we all know, saving money is one of the most important things in life. Saving money is one of the hardest discipline to follow since the urge to spend your money on things that you want to buy or food that you want to eat is always there.

In addition, having the thought that you have saved a lot of money will let your brain think that it is okay to spend some since you will still have some money left. Today, we will discuss the reasons why Filipinos should have bank accounts.

As we grow old, we must understand the value of saving money. From a discipline, saving money should be a responsibility as adults since you must no longer depend on other people in sustaining your daily needs.

Young people or teenagers can go out from their saving duty since their parents will still support them financially. On the other hand, employed adults should already embrace the idea that it is the right time to save some money for the future.

 

Budgeting Jars

 

Saving money comes in different ways. Some tend to keep their money on a piggy bank, or some in sock that they keep on their closets. In anyway, keeping your money for future use is a good thing however, like what almost all successful businessmen say, you should never let your money sleep.

What!? Never let your money sleep!?

Let me explain further, if you are a teenager, putting your money in a piggy bank is justifiable. As part of your motivation in spending, you want to see your piggy bank being full. It gives you the motivation to put more and sacrifice more just to fill it up completely. 

However, if you are already an adult, placing your money on some things and keeping them at your house is not very practical.

Yes, you get to keep your money but you are not letting it grow. Letting your money sleep means that you are not letting it work for you and thus grow and earn more for you.

 

These  are the primary reason why some Filipinos should have bank accounts.

 

Ipon-Ipon Din: A Savings Video

 

BANK ACCOUNTS HAVE INTERESTS

This is where the value of having a bank account comes in. If you put your money in a bank account, your money can be used by your bank as a loan to other people.

These loans come with interests that people who borrow them need to pay. When they pay their debts, the interest that your bank earns is divided to you and to bank.

 

This is the primary reason why your bank account can earn up to 0.025% to 3% per year.

In this way, you let the money work for you and earn for you without you doing anything to it. You just have to put your savings into a bank account.

 

BANK ACCOUNTS ARE SECURED

Also, placing your money in a bank account gives you security about your money. This mean that even though the bank where you opened a bank account got bankrupt, you can still get your money back since most of the banks in the Philippines are covered with an insurance policy.

 

This insurance policy comes from the Philippine Deposit Insurance Corporation who gives each depositor a 500,000 pesos insurance.

This means that if your bank account has an amount less than 500,000, you can still get your money back even if the bank of your choice got bankrupt.

 

You can know if your account is secured by contacting your local banks or by looking this logo in banks in the Philippines.

PDIC Logo, Filipinos should have bank accounts
PDIC Logo

Another kind of security that a bank account could give is security from robbery or disaster. We hope that you’ll never experience this but if that happens, you can rely on your bank accounts.

If your money is in your bank account and for example, your wallet got stolen from you, the robber can get you ATM Card but will never be able to withdraw your money since he/she has to know your Personal Identification Number or PIN.

 

On the other hand, if your house, for example, got flooded or caught on fire, your money will still be in your bank accounts thus letting you withdraw your saved money for restoration.

 

IT HELPS THE ECONOMY

Finally, saving your money in banks let you help the economy. Like what I mentioned earlier, placing your money in bank accounts let other people borrow it. Most of the times, these people borrow money to start their own businesses.

 

When these businesses start and hire people, they earn money and pay their taxes. If this cycle continues, more and more businesses will start and grow. In addition, more and more people will be hired and a lot of opportunities will open for our fellow Filipinos. 

Philippine Money

CONCLUSION

Yes, I know it is hard to put your money in some place where you cannot see it nor touch it. I know the feeling but like what I mentioned, saving money in bank accounts will give you more.

Saving money in general is already hard and saving money in bank accounts makes it more difficult.

This is the reason why I mentioned that when you grow up, saving money is not just a discipline. It becomes more difficult and more important as the same time. You will realize that at some point, saving has to be a responsibility.

After all, we must be responsible in spending our money and saving our money.

 

“Saving money should no longer be a choice but a responsibility.”

Learn more here:

How to Open a Bank Account in the Philippines from PinoyMoneyTalk

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