WITH age comes wisdom. This is scientifically supported by the maturity of the human brain's frontal lobe around the age of 25. The frontal lobe is the part of the brain responsible for complex decision-making and behavior regulation. It was around this age that I recognized the critical importance of financial responsibility. At 25, my goal was to purchase a car to gain freedom, flexibility and convenience. To achieve this, I took out a bank loan to cover the cost, while my savings covered other incidental expenses such as insurance, maintenance and registration. As I drove this new car, I realized that managing finances is much like navigating a journey.

In the Philippines, financial planning has never been more crucial. According to Sprout Solutions' 2024 Report, 41 percent of Filipinos have no savings at all, while only 25 percent feel confident about their financial situation. This highlights a significant gap in financial literacy and planning that needs to be addressed. The lack of savings leaves a large portion of the population vulnerable to financial shocks, such as medical emergencies or job loss. Without adequate savings or a solid financial plan, many Filipinos are at risk of falling into debt or poverty.