Filipinos have difficulty keeping their budgets and lose a significant amount of their weekly budget to “mystery spending”, a study conducted by a credit-card giant revealed.
In particular, Filipinos lose 42 percent of their weekly estimated expenses to unexplained spending, or cash spent without knowing where it went, an online survey conducted by Visa showed.Such are the unconscious, unplanned and unaccounted for bouts of expenditure in a consumer’s daily life.
“It is revealed that Filipinos spend an average of P2,416 weekly, but lose track of an average of P1,010 [42 percent], which amounts to more than P54,000 of money unaccounted for in a year,” Visa said.
Visa differentiates the concept of mystery spending from misplaced or stolen cash, saying that this is cash spent, but the consumer is unsure where it went.
“The survey highlights how mystery spending can cause financial setbacks for Filipinos in the long run. It also tells us that Filipino consumers need to closely monitor their budget to better manage their finances,” said Stuart Tomlinson, Visa country manager for the Philippines and Guam.
Seven out of 10 Filipinos believe their mystery spending went into the purchase of snacks. The number is above the regional average of only 45 percent.
Among other “distractions,” Filipinos say their mystery expense also went to shopping for nonessential items at 49 percent; shopping for food and groceries, 46 percent; dining out with family and friends, 33 percent; paying for entertainment, such as nightouts, movies, parties, daily lunch and coffee breaks, 30 percent each; and paying for taxis, toll and parking fees, 24 percent.
“One of the ways Filipinos can closely monitor their expenses is through using electronic payment cards, such as debit and credit cards,”
Tomlinson said.
“Filipinos can stick to their budget and keep their mystery spending to a minimum when they use electronic cards in their transactions,” he said.