Filipinos are the “most dishonest” among Southeast Asians when it comes to money matters, with nearly one out of every two citizens misrepresenting their financial situation, according to a study by Singapore-based fintech ROSHI.
The study said that financial education gaps, economic stress, and ‘face saving’ cultural norms have forced Filipinos to misrepresent their finances, making the Philippines the most dishonest country in the region when it comes to money.
The Financial Honesty Study: Southeast Asia report said that the Philippines had the highest financial misreporting rate in the region at 47 percent, which means that about half are not likely to give an accurate picture of their financial situation. Indonesia came second at 45 percent, then Singapore at 41 percent.
Vietnam was the most honest, with a dishonesty rate of 34 percent, followed by Thailand at 36 percent.
ROSHI noted that the problem for Filipinos is that our society tends to place strong emphasis on social reputation despite financial hardship and literacy gaps, making it hard for financially challenged individuals to seek help.
It noted that there was enormous pressure to keep face despite financial struggles in Philippine culture.
“Admitting difficulties brings shame to the entire family and risks exclusion from social support networks that provide vital help,” ROSHI noted in the report based on a survey across different age groups in six Southeast Asian markets.
Economic challenges are also directly connected with financial dishonesty. The Philippines currently has limited economic opportunities, along with a high cost of living.
Overconfidence bias, or believing that one is better at handling finances than they actually are, is also among the factors that can affect financial transparency. This can lead to risky investments, low savings, and poor spending habits.
ROSHI stressed the need to intertwine financial education and policy with cultural values and economic realities.
It may be less a matter of honesty, and more of an incorrect perception of financial realities, but what is important is that Filipinos need better financial education in order to better assess their own situations, which is necessary whenever making crucial decisions that could affect a family’s finances.
That is an effort that the government and the private sector, particularly financial institutions, should focus on, so more Filipinos can make better informed decisions whenever their finances are concerned.*
