7 Filipino Money Myths That Keep You Broke — And How to Finally Break Free

From ‘Investing is only for the rich’ to ‘More income means more wealth,’ here’s how to replace outdated beliefs with financial truths

Why Money Myths Hold Filipinos Back

The Philippines has a long way to go in improving financial literacy. According to a World Bank study, only 2% of Filipino adults answered all financial literacy questions correctly. In a culture where financial education is rarely taught in schools, many of us inherit our money habits—and misconceptions—from family, friends, and tradition.

These myths might seem harmless, but they shape how we save, invest, and spend. Left unchallenged, they can trap even hardworking, middle-class Filipinos in a cycle of paycheck-to-paycheck living.

Let’s break down the most common myths and replace them with practical, empowering truths.

1️⃣ Myth: “Investing is only for the rich.”

Many Filipinos still think investing requires millions of pesos or an advanced finance degree. This mindset keeps them from starting early—missing out on years of potential growth.

Reality Check:

You can start investing with as little as ₱50 through platforms like GInvest or around ₱5,000 with stock brokers like COL Financial. Beginner-friendly options include Pag-IBIG MP2, mutual funds, and retail treasury bonds.

Mindset Shift:

Investing isn’t a luxury for the wealthy—it’s a necessity for everyone who wants to outpace inflation and build long-term wealth. The sooner you start, the more your money compounds.

2️⃣ Myth: “I’ll save whatever’s left at the end of the month.”

This habit seems logical—pay bills and expenses first, then save what’s left. But in reality, most people find there’s nothing left to save.

Reality Check:

If savings are an afterthought, they rarely happen. The 50/30/20 rule—allocating 50% of income to needs, 30% to wants, and 20% to savings—flips this habit by making saving a priority.

Mindset Shift:

Treat savings like a bill you must pay yourself every month. Automate transfers to your savings account so it happens without relying on willpower.

3️⃣ Myth: “Banks can’t be trusted.”

In a Bangko Sentral ng Pilipinas (BSP) survey, 77% of Filipino adults had no bank account. Some fear hidden fees or believe banks are only for the rich.

Reality Check:

Philippine banks are insured by the Philippine Deposit Insurance Corporation (PDIC) up to ₱500,000 per depositor. Keeping money at home leaves it vulnerable to theft, fire, or flooding—and misses out on earning interest.

Mindset Shift:

Banks aren’t perfect, but they’re far safer than a drawer at home. Digital banks like Maya Bank and Tonik even offer higher interest rates and simplified online account opening.

4️⃣ Myth: “Insurance is a waste of money.”

Many Filipinos skip insurance, thinking it’s unnecessary—especially if they’re young and healthy.

Reality Check:

One hospital stay can wipe out years of savings. Health and life insurance protect your income, assets, and family’s future. It’s not about expecting the worst—it’s about being prepared for it.

Mindset Shift:

Insurance is not an expense—it’s a financial safety net. It buys peace of mind so emergencies don’t derail your financial plans.

5️⃣ Myth: “Superstitions can attract or repel wealth.”

From not sweeping floors at night to never placing a wallet on the floor, Filipino culture is rich in money-related superstitions.

Reality Check:

While traditions can be respected, wealth is built on consistent financial habits—earning, budgeting, investing, and avoiding unnecessary debt—not lucky charms or rituals.

Mindset Shift:

Honor your heritage, but focus on actions that truly grow your finances. Your future depends on discipline, not folklore.

6️⃣ Myth: “Debt is always bad.”

Debt often carries a negative stigma, with many believing it signals financial failure.

Reality Check:

Not all debt is harmful. Good debt—like housing loans, educational loans, or business financing—can help you grow your income or assets. Bad debt—like unpaid credit cards or predatory loans—keeps you trapped.

Mindset Shift:

Debt can be a tool when used strategically. The key is understanding interest rates, repayment terms, and your ability to pay.

7️⃣ Myth: “More income means more wealth.”

It’s easy to assume that earning more automatically makes you rich. But without money management skills, a bigger paycheck can lead to bigger spending.

Reality Check:

This is called lifestyle inflation—your expenses rise as your income rises, leaving you with the same savings rate (or less).

Mindset Shift:

Wealth is not how much you earn—it’s how much you keep and grow. Track your net worth, not just your income. That’s the true measure of financial health.

Breaking Free from the Myths

The financial landscape is evolving—digital banks, investment apps, and side hustles are more accessible than ever. But if you’re still holding on to old beliefs, you’ll miss these opportunities.

Here’s how to start breaking the cycle:

• • ✅ Question inherited beliefs — Don’t accept financial advice without checking facts.

• • ✅ Start small, but start now — Even ₱50 invested is better than zero.

• • ✅ Focus on habits, not quick wins — Consistency beats luck.

Money myths are more than just bad advice—they’re invisible barriers that keep hardworking Filipinos from reaching their financial potential. By replacing these outdated beliefs with informed strategies, you take control of your financial story.

You don’t need to be rich to be financially free—you just need the right mindset, the right habits, and the courage to challenge what you’ve been taught.

As financial advocate Salve Duplito-Ibanez says, “You can’t control the economy, but you can control your financial decisions.” And that’s where true wealth begins.

Download the Credit Kaagapay app for a complete guide to your financial freedom and success.