FILIPINO households continue to build their wealth primarily through non-financial assets, with home appliances and equipment (96.6 percent), residential properties (69.9 percent) and vehicles (35.3 percent) as the most commonly owned assets, according to the latest Consumer Finance Survey (CFS) by the Bangko Sentral ng Pilipinas (BSP).
Among vehicle owners, motorcycles remained the most preferred mode of transport, accounting for 61.7 percent of total vehicle ownership.
Meanwhile, a shift in homeownership trends was observed, with 11.3 percent of households opting for rental accommodations, up from 10.2 percent in the previous survey.
CFS is a nationwide study conducted by the Bangko Sentral ng Pilipinas (BSP) to assess the financial condition of Filipino households, including their assets, liabilities, income and spending patterns.
In the appliance category, mobile phones (92.8 percent) continued to surpass televisions (81.1 percent) as the most commonly owned household item since 2018. This underscores the growing importance of digital connectivity, which is important in times of crisis.
Financial assets, digital shift
The financial behavior of Filipino households is evolving, with more families adopting digital financial products. Deposit accounts (35.3 percent) remained the most widely held financial asset, followed by cash savings stored at home (28.7 percent) and e-money accounts (24.3 percent)—a category that has expanded rapidly post-pandemic.
The rise of digital banking was largely driven by financial institutions accelerating the development of user-friendly digital services, catering to consumers’ increasing need for remote banking access during lockdown periods.
The Covid-19 pandemic significantly influenced household saving and borrowing behavior. Due to economic uncertainty, families increased their precautionary savings, benefiting from reduced discretionary spending on travel, dining and entertainment.
Household debt levels dropped sharply, with only 29.3 percent of households carrying any form of debt, compared to 40.4 percent in 2018.
The majority of liabilities consisted of household bills (16.4 percent) and outstanding loans (15.2 percent), while only 0.7 percent of households had credit card debt, mostly used for purchasing essential goods.
Wages remained the primary source of income, with 91.5 percent of households reporting wage earnings in 2021, up from 73.7 percent in 2018.
This increase was attributed to government employment initiatives designed to offset job losses caused by the pandemic.
Meanwhile, 9.8 percent of households earned income from businesses, particularly sole proprietorships in retail and food service, while 55.6 percent relied on other sources, mainly pandemic-related government assistance (ayuda), which included cash subsidies and food aid.
Household spending priorities
Filipino households remained focused on essential spending, with food and beverages consumed at home accounting for 55.4 percent of total expenditures—consistent with previous survey results.
Among non-food expenses, housing and utilities (10.6 percent) and transportation (7.2 percent) were the biggest spending categories.
Non-essential spending, including alcohol, tobacco, recreational activities and miscellaneous expenses, made up 8.6 percent of total household expenditures, with personal care, celebrations and gifts having the highest share at 4.8 percent.
With an average household size of four members, the Philippines’ young population presents an opportunity for a demographic dividend.
Nearly half of household members are under 28 years old and 37.1 percent of individuals aged three and above are currently enrolled in school.
To fully leverage this advantage, experts emphasize the need for investment in quality education and healthcare to create a highly skilled, productive workforce that can drive long-term economic growth. / KOC
