From $50 To Over $14k In A Decade: Filipina Worker's Financial Literacy Journey | Money Mind

Key Concepts

• Financial literacy
• Budgeting
• Savings goals
• Emergency fund
• Debt-free status
• Net worth
• Investment (chicken farming)
• Financial independence
• Migrant worker challenges
• Remittances
• Financial planning
• IDA (charity)

Isa Ramos's Financial Journey

Initial Situation

• Isa Ramos arrived in Singapore with only 2,000 pesos (approximately $50) after paying for her taxi from the airport, she only had 800 pesos left.
• She was 23 years old and left her daughters, aged five and three, in the Philippines.
• Her first salary in Singapore in 2011 was $380 per month.
• For the first eight months, she had to pay off her agent's fee, leaving her with only $80.
• She sent $50 home and used the remaining $30 for mobile phone credits to stay in touch with her family.

Early Financial Habits

• After paying off the agency fee, she sent half her salary home and saved the other half in bank accounts in Singapore and the Philippines.
• She opened a bank account to prevent impulsive spending on "food" and "cravings."
• She realized she needed to differentiate between "needs" and "wants."

Financial Literacy Education with IDA

• Isa enrolled in financial literacy classes with IDA, a charity that empowers migrant workers and low-income women.
• Financial literacy is defined as "the ability to understand the fundamentals of money and how to make money work for you."
• IDA teaches budgeting, the importance of paying yourself first, breaking down savings goals, and setting up an emergency fund.
• Students also learn basic computing skills.
• Isa meticulously planned and tracked her finances using budget templates.

Managing Family Relationships and Remittances

• Financial literacy includes learning to set boundaries for money and manage family expectations.
• Migrant workers need to learn how to say "no" to family requests for money.
• Example: Explaining to family that 15% of earnings will be set aside for an emergency fund instead of sending the entire amount home.

Overcoming Personal Challenges

• Within six months of arriving in Singapore, Isa's husband spent all the money she sent home.
• She later separated and became a single parent and sole breadwinner.

Current Financial Status

• Isa now earns $11,000 a month.
• She saves $500 and sends $500 home.
• She is debt-free and has a net worth of over $4,000 Singapore dollars.
• She is able to provide her daughters with experiences she never had as a child, such as birthday cakes.

Future Financial Goals

• Isa is investing in chicken farming as a form of diversification.
• She plans to return to the Philippines to manage her own business.
• Her long-term financial goal is to build her own home with her daughters.
• She desires "peace of mind" in retirement.

Synthesis/Conclusion

Isa Ramos's story highlights the transformative power of financial literacy and disciplined saving. Starting with very little, she overcame significant personal challenges, acquired financial knowledge through IDA, and achieved financial independence. Her journey demonstrates the importance of budgeting, setting financial goals, managing family expectations, and investing for the future. Her ultimate goal is to provide a secure future for her daughters and retire with peace of mind in her own home.