Due to ongoing financial pressures, more Filipinos are prioritizing their basic needs to adapt to the changing market landscape, a study revealed.
A study commissioned by EastWest Ageas Insurance showed that 56% of Filipinos prioritized necessities and reduced spending on other expenses.
The study aimed to understand how Filipinos adjust and adapt to market conditions. Consumers aged 22 to 55 from Metro Manila, Broad Luzon, Metro Cebu and Metro Davao participated in the research.
Aces Montealegre, the insurance agency’s senior insights manager, explained that Filipinos were allocating more of their budgets to protect what matters most to them.
“They are adjusting their budgets. They are not asking what they would like to buy now,” she said.
“Instead, they are asking what they could not afford most…They are working to protect their essentials, basic necessities,” she added.
The study also showed that 42% of respondents were cutting expenses on non-essential items.
Montealegre said individuals stretched their resources when their budgets were not enough to cover their expenses.
“So what they do is they take on additional work…However, they would also use their savings for taking care of their basic necessities,” she added.
According to the study, 19% of respondents sought additional work or income, while 14% used their savings to cover recurring expenses.
The study also found that some Filipinos struggled to manage their budgets and borrowed more frequently as their options became more limited due to rising financial pressures.
Montealegre said Filipinos also adjusted their lifestyles by continuing to purchase their preferred products and avail of services, but at lower costs or in smaller portions.
To help Filipinos cope with financial pressures, the insurance company offered options to secure their future financial needs in wealth, health and life.