Financial capability of a Filipino family for education in the philippines

1. THE FINANCIAL CAPABILITY OF A FILIPINO FAMILY FOR EDUCATION 1
The Financial Capability Of A Filipino Family For Education
Jeffrey D. Bermudez
Universidad De Zamboanga
Graduate School
Researcher’s Note
This course paper will conducts finding on the expenditure of Filipino family in terms in
investing in education

2. THE FINANCIAL CAPABILITY OF A FILIPINO FAMILY FOR EDUCATION 2
Abstract
On the Annual Financial Education Summit in the Philippines, Amando M. Tetangco Jr.
Governor of Banko Sentral ng Pilipinas stated “Indeed, the ability to make sound financial
choices and decisions is essential... to ensure one’s financial well-being. And yet, most people
are sorely lacking in this necessary skill’’. The summit’s keynote session pushes to raise the
social, economic and moral imperatives of bridging the financial capability gap. On the present
education trend in the Philippines can be considered as critical competency that need to address
the unique financial education need of students. There has been great news about the Philippines
with respect to economic gains, increasing remittances, record-breaking stock market
performance, strengthening of the peso—all pointing to breakthrough economic growth. With all
these great news, how the benefits will result to improving quality of life, specially the quality of
education? The target of this study is to present the low level income, the middle income, the
high income Filipino families on their expenditures as their capacity to educate young people
inside the family. The quality of poverty estimates relies heavily on the data sources. One of the
sources of data for poverty estimation in the Philippines is the Family Income and Expenditure
Survey (FIES). “ The FIES is the source of detailed information on income and expenditures
of Filipino families. Conducted by the National Statistics Office every three year, it is an
input to the calculation of critical poverty data necessary to monitor the condition of the
poor in the country. In this document, one will be able to look into how the FIES is
administered, how it evolved through time, how the concepts of family and income are

3. THE FINANCIAL CAPABILITY OF A FILIPINO FAMILY FOR EDUCATION 3
defined, what the survey covers, how much it costs to conduct the FIES, how detailed the
survey questions are, how long it takes to complete the enumeration, and what the issues
surrounding it are” (Ericta and Fabian 2009). One of the basis of identifying the capability of the
Filipino family in education is the report of FEIS 2012 publish on December 26, 2013 of the
National Statistics Office, Consumer Expectation Survey of 2013 conducted by Bangko Sentral
ng Pilipinas respectively.

4. THE FINANCIAL CAPABILITY OF A FILIPINO FAMILY FOR EDUCATION 4
The Financial Capability Of A Filipino Family For Education
In 2012, Filipino families had an annual income of 235 thousand pesos, on average. In
comparison, their expenditure for the same year was 193 thousand pesos, on average. These
figures translate to an average annual savings of 42 thousand pesos per family (Table 1). These
estimates are based on the results of the 2012 Family Income and Expenditure Survey (FIES),
and were computed at prices in year 2012. Considering the inflation in the period 2009-2012, the
average annual family income in 2012 would be valued at 180 thousand pesos at 2006 prices,
while the average annual family expenditure would be valued at 148 thousand pesos (Table 1).
The gap in income between the richest decile and the poorest decile remains wide. Families in
the richest decile, earned an annual income of 715 thousand pesos in 2012 or 60 thousand pesos
monthly, on average. On the other hand, the families in the poorest decile, earned an average
annual income of 69 thousand pesos or about 6 thousand pesos monthly. The income of the
families in the richest decile is 10 times that of the poorest decile. This finding is true for both
2009 and 2012. For this report, families were ranked according to their per capita income and
were grouped into per capita income deciles. The richest decile represents families belonging to
the top 10 percent in terms of per capita income, while the poorest decile represents families in
the bottom 10 percent, ( source Philippine Statistics Authority)

5. THE FINANCIAL CAPABILITY OF A FILIPINO FAMILY FOR EDUCATION 5
TABLE 1
Number of Families, Total and Average Annual Family Income and Expenditure by Region:
2012
Region
Number of
Families in
Thousand
Income Expenditure
Total
(In Million)
Average
(In Thousand)
Total
(In Million)
Average
(In Thousand)
Philippines 21,426 5,026,798 235 4,125,312 193
NCR 2,917 1,106,169 379 947,599 325
CAR 375 96,351 257 70,633 188
I-Ilocos Region 1,105 225,050 204 175,220 159
II-Cagayan Valley 771 150,089 195 107,884 140
III- Cental Luzon 2,386 618,893 259 503,995 211
IVA-CALABARZON 3,082 876,006 284 748,129 243
IVB-MIMAROPA 638 114,117 179 88,215 138
V-Bicol Region 1,165 189,185 162 167,256 144
VI-Western Visayas 1,604 324,028 202 260,971 163
VII-Central Visayas 1,577 329,415 209 258,635 164
VIII-Eastern Visayas 902 149,493 166 118,998 132
IX-Zamboanga Peninsula 772 124,903 162 93,829 122
X-Northern Mindanao 976 185,015 190 139,353 143
XI-Davao Region 1,078 209,405 194 167,651 156
XII-SOCCKSARGEN 988 160,674 163 138,089 140
XIII-Caraga 532 95,809 180 75,352 142
ARMM 557 72,196 130 63,506 114
Source: NSO, 2012 Family Income and Expenditure Survey

6. THE FINANCIAL CAPABILITY OF A FILIPINO FAMILY FOR EDUCATION 6
TABLE 2
Total and Average Annual Family Income and Expenditure by Income Class : 2012
Philippines
Income Class
Income Expenditure
Total
(In Million)
Average
(In
Thousand)
Total
(In Million)
Average
(In Thousand)
Philippines 5,026,798 235 4,125,312 193
Under 40,000 20,303 30 22,540 33
40,000 ‐ 59,999 71,530 51 75,18 54
60,000 ‐ 99,999 325,936 80 320,853 79
100,000 ‐ 249,999 1,443,751 159 1,307,091 144
250,000 and over 3,165,277 508 2,399,641 385
Source: NSO, 2012 Family Income and Expenditure Survey
The survey results also showed that families in the richest decile spent 503 thousand pesos in
2012, on average. They generated savings of 213 thousand pesos for the year, on average. In
contrast, the families in the poorest decile had expenses exceeding their income (Table
2A). However, at 2006 prices, the income of families in all per capita income deciles had hardly
changed within the period 2009-2012 (Table 2B). At the regional level, at 2012 prices, all
regions exhibited an increase in average annual family income. Families in the National Capital
Region (NCR), had the highest annual income at 379 thousand pesos, on average. In contrast,
families in Autonomous Region in Muslim Mindanao (ARMM) had the lowest annual income at
130 thousand pesos, on average.

7. THE ICT CAPABILITY OF PHILIPPINE SECONDARY SCHOOL 8
BIBLIOGRAPHY
Bangko Sentral ng Pilipinas, http://www.bsp.gov.ph/publications/speeches.asp?id=426
Business Inquirer, http://business.inquirer.net/99439/we-need-to-pay-attention-to-financial-
education-too
NSCB, http://www.census.gov.ph/content/2012-fies-statistical-tables
Retrieve from , http://www.ipedr.com/vol54/021-ICHSD2012-F10026.pdf
Retrieve from, http://dirp4.pids.gov.ph/ris/dps/pidsdps0918.pdf