Technology and everyday ways of living are evolving faster than ever before. Though these are very exciting times for those in the prime of their lives, keeping track of all the new developments can be a challenge for seniors who retired before today’s era of digital transformation.
This can be a serious issue when it comes to managing one’s finances. Seniors’ difficulties navigating digital banking and finance tools make them a clear target for scammers, for one. In the Philippines, a long-running spate of scams targeting seniors and more vulnerable individuals has even led lawmakers to push for a bill to protect vulnerable citizens. Further complicating the challenge is the fact that many seniors rely on pensions, making financial planning even more challenging—particularly as fixed incomes seldom rise fast enough to match inflation.
Thankfully, digital banking app user experiences are much better than they were a generation ago. User-friendly interfaces and consistent improvements in personal financial services have made managing budgets effectively a lot simpler for vulnerable groups like seniors. That, in turn, means that senior citizens can reap the benefits upon opening their own bank accounts online–for example, high interest rates and interest credited daily on their easy-to-use, easy-to-maintain Maya Savings accounts.
This simply underscores the fact that seniors and working-age individuals alike can always stand to learn more about what it means to be financially literate here and now. To that end, here are some key financial literacy lessons that seniors should brush up on today:
1) How to Take Finances Online
Many seniors struggle with online banking because it requires new foundational knowledge in navigating smartphone applications, cloud services, digital security, and many other areas. Younger working individuals may not appreciate this struggle if they have been using these technologies their whole lives. Furthermore, seniors may not fully understand the benefits of online banking until they have tried it for themselves, delaying their transition to online finance.
To take seniors’ finances online, they need to break down each challenge and take them on one at a time. They can start by learning how to navigate their bank’s website or mobile app and how to perform basic tasks like checking balances, transferring money, and using QR codes. Thankfully, many banks these days offer step-by-step tutorials to help seniors understand these various processes, and it may only take these plus a little assistance from a tech-savvy loved one.
2) Using Digital Wallets
Digital wallets like those of Maya have started to enjoy wider use in the Philippines, particularly for online transactions. Learning to use these platforms can simplify transactions and reduce the need to carry around physical cash, opening up a new world of financial freedom for seniors. Families should keep their elderly members educated on setting up these accounts, adding funds, and using them for everyday purchases.
3) Recognizing and Avoiding Scams
Seniors can be highly vulnerable to scams due to their limited support network, which constrains their practical knowledge of common online scams and phishing attacks. They may also have difficulty recognizing red flags, such as too-good-to-be-true offers and unknown contacts requesting money. Because new scams come up all the time, seniors and those close to them must make it a habit to discuss online security regularly.
4) Understanding and Creating Account ProtectionsSenior citizens should be guided on creating complex passwords and mastering other security methods like biometrics and OTPs. Throughout these learning processes, they must also educate themselves about the very real threat of identity theft and online attacks so that they see these protections as necessary.
5) Budgeting and Expense Tracking
The elderly can definitely benefit from apps that track expenses and provide insights into their financial habits. Learning to use these tools and keeping up to date with the current cost of goods and services will allow them to manage their fixed incomes more effectively.
6) Staying on Top of Health Insurance and Medical Expenses
Managing health expenses for maintaining a good quality of life should be a primary concern for seniors. In the Philippines, a range of both public and private insurance options are available to help manage medical costs.
However, seniors who buy policies late in life may have to contend with higher premiums or more challenging fee structures. With that in mind, they should also be aware of the benefits they are already entitled to, as well as the steps to access them.
7) Understanding Interest Rates and Loans
Because of their fixed incomes, seniors may have to take out loans more frequently than working-age individuals, perhaps more often than at any point in their life. With that in mind, they should be educated on the implications of taking out loans, how interest accumulates, and the importance of paying off debts promptly to avoid high interest rates and penalties.
8) Estate Planning
Proper estate planning minimizes family conflicts after a senior’s passing. At the most basic, this includes making a will, setting up trusts, and learning about Philippine inheritance laws. Taking the time to consult with a legal estate planning service can provide peace of mind for the senior during their lifetime and, crucially, pave the way for future financial security for their heirs.
9) Seeking Financial Advice
Good professional financial advice can be far more valuable than what you pay to get it. Seniors should be encouraged to consult with legitimate financial advisors who can provide them tailored advice on maximizing their limited income. To supplement their knowledge, they can also attend financial literacy workshops aimed at improving financial knowledge and skills, particularly those focused on maximizing fixed incomes.
A Brighter, Digitally-Empowered Future for Filipino Seniors
The digital era has presented several new challenges that seniors must navigate to keep themselves and their finances protected. Fortunately, with the resources currently available, most can transition from in-person to online banking and financial management with few serious difficulties. With sufficient guidance, every Filipino—no matter how young—can avoid being left behind, better secure their finances, and seize new opportunities in our digitally transformed environment.
