BPI CEO Limcaoco: Building Savings Habits Early is Key for Filipino Children

MANILA, Philippines – Building savings habits from an early age is crucial for Filipino children, not just for immediate financial gain but for fostering lifelong financial discipline, according to BPI President and CEO TG Limcaoco. Speaking to Rappler, Limcaoco emphasized that the concept of setting aside a portion of money before spending it, a principle he shares as "Lolo TG" (Grandpa TG) to children, lays the foundation for future financial well-being. Limcaoco explained that for children to grasp the concept of saving, a clear goal and a formal structure to manage their money are essential. Instead of simply telling them not to spend, parents can help them work out how much they need to save and how long it may take to reach a specific objective. While saving for the future might be abstract for an eight-year-old, saving for a bicycle, new shoes, a gadget, or even a dog is more relatable. This process also helps children distinguish between needs and wants. Ginbee Go, BPI's head of consumer banking, added that children need to learn the importance of budgeting, saving, and understanding the effort required to grow their money over time. Linking money to simple household chores, where children earn a small amount for completing tasks, helps them understand that "money is earned" and not simply acquired upon request. BPI's Disney-themed Jumpstart account, designed for ages 7 to 17, includes a web app to teach basic saving habits and transitions to a regular adult savings account once the child turns 18. The Philippines, being a consumption-driven economy, faces challenges with low household savings. The World Bank reported that only 23.9% of Filipino adults saved through a formal account in 2024, significantly lower than the East Asia and Pacific average of 58.9%. Furthermore, a substantial portion of surplus money remains outside the formal banking system. According to the Bangko Sentral ng Pilipinas' (BSP) 2025 Consumer Finance and Inclusion Survey, 44% of Filipino adults kept surplus money in piggy banks or vaults, while only 17% deposited it in banks. "If we want to build a stronger and more resilient economy, we must cultivate the habit of saving early," Go stated. "We must teach our children not only how to dream, but how to prepare for those dreams." Savings accounts are just the beginning. As children mature and understand the importance of saving for emergencies and near-term goals, parents can introduce longer-term investments like index funds, which offer the advantage of time for young investors and can be started with relatively small amounts.