COTABATO CITY—The Bangsamoro Planning and Development Authority (BPDA) was successfully capacitated on Financial Literacy by the Bangko Sentral ng Pilipinas (BSP) Central Office thru a two-day webinar on October 5-6, 2021.
The activity aimed to equip its employees on financial planning in terms of budgeting, savings, securing investments, managing debts, and to promote awareness on frauds and investment scams.
BPDA Bangsamoro Director General Engr. Mohajirin T. Ali emphasized that knowing which to prioritize despite having personal and steady income must be considered regardless of one’s age.
“Frauds and scams are very common nowadays even during this pandemic. I hope we could avoid these worse scenarios and focus on financial growth instead,” Ali said.
Financial planning is considered as a comprehensive evaluation of an individual’s current and future financial state to predict and manage future cash flows, expenditure, and asset values.
Faith Miguel, resource speaker from the BSP said, “this could further control overspending, having security from risk, freedom from worry, sustainable lifestyle, freedom from debt, and realizing one’s goals.”
Another resource speaker, Ms. Hajilyn Javier, reminded the participants to avoid unnecessary spending through budgeting, balancing their earnings and spending, and allocating a percentage of their income for savings.
“You need to save to ensure that you are always prepared for different life events. You need to save for emergency fund, tuition, savings goals, business, and retirement fund,” Javier said.
Javier further advised to save in banks for their savings’ safety and security, earning annual interest, and liquidity. She also provided other saving options such as savings and credit cooperatives, self-help groups, savings and loans associations, and non-financial assets.
In terms of borrowing, Atty. Clarence Zosa explained that debt cannot be a cause of imprisonment, unless it involves fraud. He also discussed the pros and cons of borrowing through a credit card.
Resource speaker Sarah Padilla, meanwhile, discussed the basic concept of investments, types of investment instruments available in the Philippines, and the risks and factors to consider before investing.
“Investments increase in value over time. It earns and can build wealth,” Padilla stressed.
BSP Accountant Jennifer C. Villena urged everyone to protect themselves from investment scams, emphasizing the checking of the company’s profile and its investment products being sold were licensed by the Securities and Exchange Commission (SEC).
Villena cautioned the employees and said, “do not believe if someone offers you that are too good to be true, like ‘double your money, no risks, and returns guaranteed’”.
BSP reiterated that the BPDA employees should report immediately any suspicious companies to Stocks and Exchange Commission or SEC. (Bangsamoro Information Office)