FILE

Despite some good news about growing income, many Filipinos are still feeling the pinch when it comes to managing household finances. A recent study by TransUnion shows that while 42% or nearly half of Filipinos have seen an increase in their income during the second quarter of 2024, about 44% are concerned they won’t be able to pay their bills and loans in full. It's a bit of a mixed bag—optimism about income on one hand and rising financial anxiety on the other.

According to the Q2 2024 Consumer Pulse Study, which looks at changing behaviors and attitudes towards household finances, Filipinos are cautiously balancing their budgets while hoping for a brighter financial future. While 78% of Filipinos expect their income to rise over the next 12 months, there’s still a noticeable worry about paying the bills, with more people feeling the pressure compared to last year.

This growing concern isn't just about keeping up with monthly payments. Inflation, job security, and rising interest rates are major factors weighing on household finances. Although only 22% of respondents increased their spending on things like dining out and entertainment, 47% said they had to cut back during Q2 2024.

Looking ahead, though, there's a bit more optimism. Even though over half of Filipinos expect their bills to increase, nearly 40% believe they’ll be able to spend more on retail shopping in the coming months. There’s also an expectation of increased spending on medical needs and big-ticket items.

In addition to income concerns, the study also sheds light on Filipinos’ views about credit. More people are seeing credit as a crucial tool for reaching financial goals—especially younger generations like Gen Z and Millennials. However, access to credit remains an issue. Only 38% of Filipinos feel they have enough access to credit and lending products, which is down slightly from last year. This problem is particularly felt by Gen Z consumers, who show the least confidence in getting approved for the credit they need.

Meanwhile, fraud remains a persistent threat. While most Filipinos are aware of fraud schemes, a growing number are falling victim to smishing—a type of scam where fraudulent text messages trick people into revealing personal data. Around 10% of Filipinos reported being scammed in the past three months, a slight increase from the previous year.

So, while there’s hope on the horizon with expected income growth, Filipinos are staying vigilant. Balancing optimism with caution seems to be the way forward as they navigate these uncertain financial waters.