Many Filipino adults consider themselves financially literate, but a significant share may still struggle to cover basic expenses when an emergency hits.

Around 48% of Filipino adults said they could pay for at least one month of living expenses without borrowing, according to the Bangko Sentral ng Pilipinas’ (BSP) 2025 Consumer Finance and Inclusion Survey.

That leaves more than half unable to cover a month’s expenses on their own, highlighting a gap between financial awareness and the ability to withstand unexpected costs.

Half of adults have an account, but cash remains widely used

The BSP survey found that 50% of Filipino adults own a financial account, while 85% of households use cash for transactions.

Electronic money, or e-money, was identified as the main driver of account ownership. Its role was particularly prominent among urban residents, women, and adults aged 20 to 49.

Account ownership was also more common among people with higher incomes and better educational attainment.

The findings suggest that access to formal financial services remains uneven, even as digital financial products help bring more Filipinos into the financial system.

Financial confidence does not always mean financial readiness

Around 60% of Filipino adults consider themselves financially literate.

However, 74% were able to answer at least half of six basic financial literacy questions correctly. The results point to a difference between how people assess their financial knowledge and what they demonstrate in a basic knowledge test.

Digital security awareness was also reflected in the survey. Around 78% of adults said they avoid sharing personal information online, while 64% check whether financial institutions are regulated before using online services.

Meanwhile, 73% were aware of their rights under the Financial Consumer Protection Act.

These figures show that many adults recognize key financial safety practices, but financial knowledge and protection awareness do not necessarily translate into having enough savings to handle an emergency.

Borrowers report mixed repayment experiences

The survey found that formal borrowing is more common than informal borrowing among Filipino adults.

However, repayment experiences vary. Around 56% of borrowers said they could easily repay their loans.

The figure also means that a substantial share of borrowers do not describe repayment as easy, adding to concerns about household financial resilience.

Insurance, pension, and investment coverage remain largely supported by government programs, according to the survey.

What the findings mean for your finances

The survey’s findings highlight why financial literacy involves more than knowing how to budget or recognizing financial products.

An emergency fund can help cover essential expenses when income is disrupted or an unexpected cost arises. Without enough savings, households may have to rely on loans or other forms of borrowing to make ends meet.

For KKBuddies, building a financial buffer can start with setting aside a small, consistent amount from each paycheck. The amount can grow over time, with a first goal of saving enough to cover essential expenses for one month.

It can also help to review existing debts, understand repayment terms, and check whether financial providers are regulated before opening an account or borrowing.

The BSP survey offers a snapshot of financial inclusion, knowledge, and household financial health in the Philippines. Its findings show that while awareness and access to financial services are important, the ability to manage unexpected expenses remains a challenge for many adults.