By Merlina Hernando-Malipot
The Department of Education (DepEd) said thousands of its retirees, both teachers and nonteaching personnel, are not able to enjoy their retirement due to poor financial literacy.
According to Education Undersecretary for Finance Victoria Catibog, more than 23,000 of the department’s retirees – both teachers and nonteaching staff – are “not able to get anything from their retirement because they had unpaid loans.” This, she noted, is also due to “poor financial literacy.”
To address this, DepEd has partnered with City Savings Bank (CitySavings) to help DepEd personnel to manage their finances. Catibog asked the bank if it is possible that aside from the products that it offers, “can you also teach them how to manage their finances…that’s why they came up with this initiative especially for DepEd.”
A total of 25 DepEd central office personnel from different support units recently participated in City Savings Bank’s Project “Peraparasyon.”
The term is derived from the amalgamation of the words “Pera” and “Preparasyon” translated as “Money” and “Preparation” respectively, and is designed “to enhance the public school teaching and nonteaching personnel’s knowledge on practical wealth management.”
CitySavings chairman of the board Eugene Acevedo said their objective is not just to be in this business but really to elevate people’s lives. “You see, if we don’t do that, there’s no purpose in being a banker,” he said.
Acevedo also told the participants to put their “money in something that will grow at a pace greater than five percent or 6 percent because if you only put your money in time deposits, then you only make one and a half, you will not be able to cope with even the ordinary cost of living.” He added that the “only instrument that can give you that are equities, trust funds and mutual funds.”
CitySavings EVP (executive vice president) – Channel Management Levi Villanueva, who facilitated the project, said the program also aims to show in simple terms “how to achieve financial wellness through fiscal prudence.” He further mentioned that “wealth management is all about changing your mindset [and that] spending less does not mean less quality of life.”
All Credit Goes There : Source link