How should Filipinos spend their holiday money?

Hindrances to budgeting for Filipinos

Financial literacy influencer Jax Reyes identifies the primary hurdle to budgeting for Pinoys as the challenge of creating and sticking to a realistic spending plan when funds are scarce.

"Yung talagang tipong parang nauubos kaagad yung pera because of the fact na parang kulang, nandyan na yung bonus natin, nandyan na yung 13th-month pay natin, pero paminsan nagkukulang pa rin siya," the TikTok content creator said. "It's because hindi nagpa-plan ng early or paminsan, we don't like to budget."

He also said that impulse buying is a trend every holiday season, as people are more emotionally driven in their spending habits.

Reyes cited peer pressure during holiday celebrations that we tend to "overcommit" to those whom we "need" to give presents.

"Napre-pressure tayo, keeping up with the Joneses or keeping up with the kapitbahay natin," he said. "Magkano ba yung budget allotted for gifts? Magkano yung budget to [dine] out? So this one will also let you prioritize ano ba at sino ba yung mas importante talaga? Who brings more value to you?"

For wealth coach and motivational speaker Chinkee Tan, it boils down to a feeling when one has cash on hand. "Feeling natin unlimited ang 13th month, so todo gastos sa gifts at parties. Swipe lang nang swipe ng card, parang walang January na paparating.

He also cited the habit of Filipinos to owe more money than they can spend. "Napapa-utang pa para makasabay sa holiday hype. Kaya ayun, wallet na nagda-diet pag New Year."


Christmas budgeting tips

For one to really save money for the holidays, Reyes said one has to have a pre-determined budget in mind. "Whatever works for you. Is it the 50-30-2 rule? Yung 50% for your needs, yung kailangan mo talaga para mabuhay. 30% for your wants, yung mga gusto mo."

To manage spending, Reyes suggested implementing the 'kurot' principle, which involves limiting spending to only 10% of one's current earnings. He shared the advice passed down from his family: "My mom always taught me na dapat may 10 times ako ng money na yun sa bank account. Kahit gumastos ka ng 10% of it, you still have 90% money or 9 times that amount in your bank account."

Beyond saving, Reyes advocates for open family discussions regarding finances, "Para hindi lang ikaw mag-isa. It's also good na dapat whoever will enjoy, pinag-uusapan rin."

Gift pulling or sharing funds to purchase a gift is also a good idea for the content creator. "Kayo magkakapatid, share one meaningful gift sa parents mo, or sa kapatid mo, or sa friends nyo, di ba? You can pull your funds together to buy one meaningful gift, which usually might cost less."

For Tan, making the traditional shopping list is essential. "Gumawa ng list para hindi ka mag-impulse buy ng 'cute kasi.' Iwas last-minute shopping kasi doon lumalabas ang tunay na shopaholic."

Using cash over credit cards is also preferable, according to Tan, "para maramdaman mo yung sakit. Needs muna bago wants, wag ka munang pa-fancy."

Should we take advantage of sales?

Around this time of year, end-of-season sales and bazaars are aplenty, but the real question is: Should Filipino shoppers seize every deal they see, or practice prudent spending?

"If you need it, utilize it," said Reyes. "Kasi kung may sale naman, kailangan mo, binudget mo yun, go."

"Pero kung hindi mo siya kailangan for the sake of gusto mo lang mag-browse, biglang nakita mo na gusto mo lang makipag-compete sa mga kapitbahays mo or keeping up with the Jones, I would say hold it off," he said.

Tan said spending should always prioritize essentials such as appliances, shoes, or gadgets in need of replacement.

"Wag magpadala sa sale fever kasi hindi lahat ng naka-sale worth it. Lalo na kung 70% off pero 0% ang laman ng wallet," Tan adviced.

Practical gifts Pinoys can give

For Reyes, gift checks and cash will never go out of style because of their flexibility. "Kasi, at least with this, hindi ka napipilitan to buy something na mamaya hindi na pala niya gusto. And they can buy whatever they want as well."

For him, nothing beats the personal gifts. "Maybe a food that you've baked. Di ba? Yung mga tipong pagkain na homemade na ginawa mo."

He added that self-care items like vitamins and massage vouchers are also valuable. 

Tan, on the other hand, said one can never go wrong with planners, tumblers, kitchen tools, and food packs.

"Walang tapon, walang drama, walang 'sana socks nalang ulit.' Wallet-friendly, everyone's happy," he said.

Both content creators agree that to enjoy the festivities without financial stress, people shift their focus from impulse buying to planned spending, ensuring their celebration budget aligns with long-term financial health.