Year: 2019

Taking care of kids at early age may be stressful for a parent, but it’s also one of the most rewarding experiences ever. You may scold them, discipline them, teach them what’s right and wrong, but at the end of the day, they will always be the cuddliest part of the household. Playtime, meal time, storytelling hour, all of these would be an enjoyable activity with your kids, however, you should not forget one of the most important lessons you may teach them at an early age, financial management. It is common knowledge by now (even to first time parents) that the best time to teach kids something very important is from an early age. There are various studies proving this theory, most notably:

“Some evidence suggests that young children do have episodic memories of their infancy but lose them later. A six-year-old, for instance, can remember events from before her first birthday, but by adolescence, she has probably forgotten that celebration. In other words, young children can likely make long-term-like memories, but these memories typically fade after a certain age or stage of brain development. Memories made in later childhood and beyond are more likely to stick because the young brain, especially the hippocampus and the frontoparietal regions, undergoes important developmental changes that improve our ability to bind, store and recall events.”

Now, do not be discouraged by one of the mentioned facts above, that toddlers tend to forget information somewhere past adolescence, the thing is, a lesson that is taught over and over again has a higher chance of being retained in the long run, due to the fact that repetitive information can overcome the fading memory of youngsters when continuously fed to them on a daily basis. Any important lesson in life is as important as being taught to your kids at an early age, but out of all the vital things, the way they should handle their finances should be one of them.

 

The Candy Parable

Of course, this doesn’t mean that you should allow your toddlers to hold a huge amount of cash at a very early age, but rather, teach them the main concept of saving, handling, and managing limited resources such as money. You may start out, not by coins, but by candies. Younger kids tend to learn more if you were to interpret the lesson via something that they can definitely relate with. Using a candy would not only catch their attention, it would also retain it. Start out by giving them one or two candies, and then, tell them that it would be the only candy that they’ll be given for the whole week, and that they should “budget” how they’re going to consume it. Let them know that they can’t eat the whole lot within the day, otherwise, they wouldn’t be given any further pieces anymore.

Now, you may be wondering, “Even if I were to teach my kids consistently, how can I be sure that they’ll be able to retain those lessons while growing up?” Well, the thing about teaching your kids how to manage their resources while growing up is that it isn’t merely a vocal lesson about how to do things the right way, it’s also about experiencing the lesson itself. Case in point, the candy parable. Further evidence on toddler memory studies states that:

“For parents who worry that their toddler will not remember their special early years together, a memory is essentially a unit of experience, and every experience shapes the brain in meaningful ways. Specific memories may be forgotten, but because those memories form the fabric of our identities, knowledge and experiences, they are never truly or completely gone.”

Think of it as a way of schooling them, but instead of having a seat down class, this would be more of a practical activity.

 

What’s the point of teaching them at an early age?

Teaching them about the value of money and the hard work done behind the scenes to acquire them would mold their outlook towards their future as whole. This doesn’t mean that you’ll open their eyes towards the luxuries that money can buy, no, as a matter of fact, it’s the opposite. It’s all about the basic needs that money would be able to purchase, and that overspending would actually put people in more trouble that they can handle. Let them know of a human being’s basic needs. According to American Psychologist, Abraham Maslow, we all have five of them:

1. Physiological needs – these are biological requirements for human survival, e.g. air, food, drink, shelter, clothing, warmth, sex, sleep.
2. Safety needs – protection from elements, security, order, law, stability, freedom from fear.
3. Love and belongingness needs – after physiological and safety needs have been fulfilled, the third level of human needs is social and involves feelings of belongingness. The need for interpersonal relationships motivates behavior
4. Esteem needs – which Maslow classified into two categories: (i) esteem for oneself (dignity, achievement, mastery, and independence) and (ii) the desire for reputation or respect from others (e.g., status, prestige).
5. Self-actualization needs – realizing personal potential, self-fulfillment, seeking personal growth and peak experiences. A desire “to become everything one is capable of becoming” (Maslow, 1987, p. 64).

Notice that three out of five can be attainable with the help of family, friends, and loved ones, so we will not focus on that. Instead, we will go back to the topic at hand, proper financial management. Both the first and second factors are attainable with cash in tow. The very first need is what basic needs are in general, food, drink, shelter, clothing, etc. Even if you were to attain the four other needs, if you do not have access to the first few ones, then you would definitely not survive.

As children grow, they will realize more about the lessons that they’ve learned at an early age, the things that you’ve taught them. And while you’re orienting them, let them know that they may encounter mistakes along the way, but learning doesn’t really stop when they do, a mistake is just the starting point for a new lesson.

 

Banking at an Early Age

The thing about learning is that, it doesn’t always have to be boring. Many parents role play with their kids in order to have both quality time and family time. Role play the setting of a bank, for example. Let them know of the various scenarios involved whenever a person saves (or even overspends). Show them through role play the cons and pros of managing their money for the future. Better yet, when they’re already age seven (7), feel free to apply them for a “junior account.” Here is something we may recommend, none other than Cebuana Lhuillier’s Micro Savings service. It aims to provide easier banking access to Filipinos. The product is almost the same with any regular savings account in the Philippines and doesn’t require a maintaining balance.

Filipino citizens as young as 7 years old are even qualified to open an account, which can be considered as a “kids savings” or “junior savings” account. They can open a Micro Savings account with the help of their parent/guardian as they need to provide a valid ID together with the child’s student ID.

Pawnshops are very convenient and practical. Just think about it, nowhere can you undergo a transaction which doesn’t even last for ten minutes. They are basically the quickest way to earn cash, especially when you’re in need. Aside from that, they are a major part of Filipino culture. TV commercials aside, pawnshops are rooted in the Filipino system since the time of the Spaniards, when they allowed the Chinese to sail the Philippine shores in order to do their trades. This has been a long running business model in the Philippines, much so that the number of branches that pawnshops have in the country now outnumber banks. So regardless of area, social stature, and occupation, Filipinos will always approach a pawnshop as a first resort.

Of course, not many pawnshop clienteles have expensive items to pawn off, it’s just that they manage to come up with valid items that qualify according to the pawnshop’s standards. With that in mind, it is understandable that many are still unaware of the exact lists of items which can be pawned off. Not everyone has financial concerns, after all, so some haven’t even been in a pawnshop before. No worries, as we have listed the correct items which can count towards you having extra cash by the end of the day:

1. Gold
   Gold is one of the most common items to be pawned off. Of course, the pawnbroker has to double check its authenticity. Not everything that glitters is gold, after all. But once proven that an item is indeed gold, the broker would come up with the price appropriately reflecting the condition, quality, and authenticity of the item. Be sure to declare whether an item is full gold or gold-plated, as those are also two separate things. Just be honest about the condition of the item and answer the pawnbroker’s questions about the item as well. Who knows, you might get a great deal in the process.
2. Diamond
   According to a famous song, they are timeless, they are indestructible, they are “forever.” Yes, diamonds may be one of the strongest and fanciest jewels to date, but the same process of evaluation for a fair appraisal is basically the same as that of gold items. It would all depend on the quality and authenticity of the item, though there would even be lesser things to worry about if your diamond is authentic, due to the fact that it can only be scratched by other diamonds. They can also be polished well, which is why you wouldn’t have a hard time cleaning them up if you ever decide to pawn them off.
3. Platinum
   There is a reason why it is heralded as the “king of the metals.” It is 15 times rarer than gold. As a matter of fact, is the only precious metal used in fine jewelry design that is up to 95% pure, making it the purest metal of them all (gold is only 75%). But do not let its purity fool you, it’s definitely a tough metal, so if ever you’re going to pawn off one, even in spite of over usage, your jewels would still look great in quality.
4. Cellphones
   Smartphones are a staple of pawnshops as well. Accordingly, only a few types and models of cellphones are accepted, depending on the standard of the pawnshop itself. Nonetheless, they are a welcome addition to the already huge plethora of items you may pawn off. Take note that just like any other items, the quality will come into play. Also be reminded that this falls under the category of gadgets, so they should be in great working condition when pawned off. Much better if you were to pawn off a smartphone while still in mint condition. They have a higher appraisal.
5. Laptops
   Much like cellphones, laptops which are pawned off while still in high quality and mint condition are prone to a higher appraisal. Of course, the more branded they are, the better. Be sure that the battery and charger is still intact and fully-functioning.

Take note that these are just the basic items you can typically pawn off, depending on the pawnshop, other items may still be qualified for a good appraisal. Feel free to ask your local pawnshop for more details.

Now that we’ve got that out of the way, we should look at the technicalities when it comes to pawning off your items. Aside from the usual verification process, you may also need to present one or two of the following:

• Passport; including those issued by foreign governments
• Driver’s License
• Professional Regulation Commission (PRC) ID
• National Bureau of Investigation (NBI) Clearance
• Police Clearance
• Postal ID
• Voter’s ID
• Barangay Certification
• Government Service Insurance System (GSIS) e- Card
• Social Security System (SSS) Card
• Senior Citizen Card
• Overseas Workers Welfare Administration (OWWA) ID
• OFW ID
• Seaman’s Book
• Alien Certification of Registration/ Immigrant Certificate of Registration
• Government Office and GOCC ID, e.g., Armed Forces of the Philippines (AFP ID), Home Development Mutual Fund (HDMF ID)
• Certification from the National Council for the Welfare of Disabled Persons (NCWDP)
• Department of Social Welfare and Development (DSWD) Certification
• Integrated Bar of the Philippines ID
• Company IDs issued by private entities or institutions registered with or supervised or regulated either by the BSP, SEC or IC
• Passports issued by foreign government

A Well-Rounded Pawnshop That’s Always Ready to Serve

If you would ask, “What would you recommend? Is there any pawnshop that can guaranty a balance of good service and high appraisal?” As a matter of fact, yes, there is. Look no further than Cebuana Lhuillier, a leader in the pawning industry. Cebuana Lhuillier offers up to 35% higher appraisal rate compared to other pawnshops in its 2,500branches nationwide. The company’s business has evolved with the needs of the Filipino people by accepting an array of valuable items—from jewelry to gadgets—in exchange for a fair loan amount.

With every competing pawnshop in existence, each one has their own set of transactions and processes to follow. But for Cebuana Lhuillier, a simplified transaction will always make it stand out from the rest:

• Visit any Cebuana Lhuillier Pawnshop branch and present the item to be pawned.
• Accomplish the customer information sheet.
• Present a valid I.D. (see list below)
• Let the appraiser assess the value of your item. Advise the branch personnel if you agree with the appraised value and net proceeds.
• Sign the Prenda card and the pouch containing your item to ensure its authenticity and safety for when you get it back.
• Count the money received and secure the pawn ticket, which is required to be presented during renewal or redemption of the pawned item.

Cebuana Lhuillier also assures the highest appraisal and security for pawned items. Advance interest will be charged Php4 for every Php100 loan amount. To maintain the excellent standard of service offered by Cebuana Lhuillier, clients are charged five pesos  (Php 5) service fee, no other hidden charges will be deducted from the loan, whatsoever.

For any further clarifications or inquiries, please feel free to visit any  of our nearest branch. Our staff would be more than happy to answer your questions and feedback.

Have you ever imagined a world in which everything was much easier to accomplish? Have you imagined a world where complicated tasks are far simpler to process than usual? Somehow, this dream was made possible by three important factors: technology, reforms, and workarounds.

The same thing can be said about your applications – government benefits application, job application (verifications and references), and bank account application. While the first two are understandably slow-paced due to the insurmountable number of people submitting their applications at the same time, the third one doesn’t necessarily have to suffer the same fate. After all, it isn’t the number of people that affects the process the most, rather, the meticulous nature of banks when it comes to the requirements. Think of it this way, while the number of pre-requisites may be small, the matter in which they are required definitely impacts an applicant’s chances of acquiring one. The typical requirements for a normal bank account are:

1. a) The minimum initial deposit
2. b) Two valid IDs
3. c) Two copies of your most recent 1×1 ID picture
4. d) Proof of billing

Seems easy right? Well, here’s the thing, some banks would require a high amount when it comes to their “minimum” deposit. Aside from that, your proof of billing may not turn out to be valid, especially if you’re renting. The owner name would point towards your landlord, and not your very own. These simple technicalities may be an obstacle between you and your ultimate goal of opening a typical savings account.

Now, there are those who live out their lives thinking that a savings account isn’t really a major necessity, that it is something they can set aside for the sake of practicality. Consider these particular statistics, in its 2017 Financial Inclusion Survey (FIS), the national central bank announced that only an estimated 15.8 million adult Filipinos, or 22.6 percent, have bank accounts, while an approximate 52.8 million, or 77.4 percent, remain unbanked. While it may seem like a harmless amount of people being able to live with no bank account at all, take note of the actual hassles they may have to go through each and every day. Case in point, the following scenarios:

1. Having no savings account of your own means you have no safe place to keep your money.
   The thing about having a savings account is that you’ll at least be able to keep your hard-earned money secured. Just think about it, even if you have a sturdy metallic safe back at home, chances are, you still wouldn’t have a peace of mind, knowing that thieves are always on the loose. Aside from that, your home isn’t exactly the wisest option when it comes to safekeeping. Whatever happens to your home, the money would go down with it. Fire, flood, earthquake, etc. By keeping your cash stacked at home, you’re putting all of your hard-earned cash
2. Having no savings account of your own would make it quite difficult to retrieve your cash.One of the main perks of having a savings account is that you’ll at least be provided with an ATM card. With that, you’d be able to withdraw any amount from your account without much of a hassle (considering that there’s an available ATM machine nearby). If you have no savings account of your own, just think about how difficult it would be to retrieve your very own money. Even if you decide to keep it safe at home, you’d need to go back and forth just to acquire a small amount off your savings.
3. Having no savings account of your own would prevent you from experiencing any potential investment opportunities.
   Depending on the bank type, opening up a savings account would actually entitle you to earn a small percentage from your deposits. Of course, when we say small, it usually involves just a few centavos of earnings, nonetheless, it accumulates and stacks up with your savings from time to time. Again, this would all depend on the bank and whether or not they implement this type of feature.
4. Having no savings account of your own may cause lack of documents or requirements in the future, as some non-banking transactions would require for you to have an account.
   This is evident in some government applications and loans, you have to get a savings account of your own as they would deposit your loan directly to the account itself. You also have to consider other crediting companies, as bank accounts usually help them understand the financial habits of people who are hoping to borrow money from them. In such case, your personal account may function as a major requirement in itself already, being a direct pre-requisites for other financial entities.
5. Having no savings account of your own may cause another hassle in itself, with no easy way to receive salaries and donations from relatives during times of need.
   It’s normal for people to communicate with their relatives during times of need. If you find yourself stuck in a similar situation, no worries, everyone has their moments. What would make this situation awkward, however, is the fact that money transfer isn’t going to be easy for you, especially if you do not have an account of your own. If your relatives or friends were to donate money for your cause, they may send it over your savings account, after which you may visit a nearby ATM machine to withdraw. For those without bank accounts, they may need to fall in line within a money remittance stall, endure a long wait time, and rummage through their ID collections just to acquire a few amounts.

   With all of that being said, there is definitely a need to open up a savings account, may it be for personal use or for externally checking a requirement list. The question is, is there a much convenient alternative to a bank? Is there a much better alternative to the usual savings account? Well, good news, both can be found at the same place and at the same time, none other than Cebuana Lhuillier’s Micro Savings services.

   Cebuana Lhuillier Micro Savings aims to provide easier banking access to Filipinos. The product is almost the same with any regular savings account in the Philippines, with the huge difference of its requirements being way easier to accomplish. Filipino citizens as young as 7 years old are even qualified to open an account, which can be considered as a “kids savings” or “junior savings” account. You may visit any of Cebuana Lhuillier’s 2,500 branches nationwide and fill-out the Client Customer Information File Sheet and bring the following:

   • Government issued ID
   • Birth Certificate (applicable to minors only)
   • Student ID (applicable only if student is currently enrolled)
   • P50 minimum initial deposit
   • P100 card fee (for clients w/o 24k card)

The list of accepted Government/Valid IDs are:

• Passport
• Driver’s License
• Professional Regulation Commission (PRC) ID
• National Bureau of Investigation (NBI) Clearance
• Police Clearance
• Postal ID
• Voter’s ID
• Government Service Insurance System (GSIS) e-Card
• Social Security System (SSS) ID
• Senior Citizen’s ID
• Overseas Workers Welfare Administration (OWWA) ID
• OFW ID
• Seaman’s Book
• Alien Certification of Registration (ACR)
• Barangay Certificate or ID (with picture and signature)
• Birth Certificate (applicable to minors only)
• Firearm License
• Immigrant Certificate of Registration
• Marriage License
• National Council for the Welfare of Disabled Persons
• New TIN ID
• OWWA ID
• Student ID
• Alien Certification of Registration (ACR) / Immigrant Certificate of Registration
• Government Office or Government Owned and Controlled Corporations (GOCC) ID (e.g. AFP ID, HDMF (Pag-ibig Fund) ID, etc.
• Certification from the National Council for the Welfare of Disabled Persons (NCWDP)
• Department of Social Welfare and Development (DSWD) Certification
• Integrated Bar of the Philippines ID (IBP)
• Company IDs issued by private entities or institutions registered with or supervised or regulated either by the BSP (Bangko Sentral ng Pilipinas), SEC (Securities and Exchange Commission) or IC (Insurance Commission)

 

So, what are you waiting for? Visit your nearest Cebuana Lhuillier branch now andopen a Micro Savings account, deposit atleast P500 get a chance to win P5,000 in our #KaCebuanaIponaryo challenge, more info on this link: https://www.cebuanalhuillier.com/ka-cebuana-iponaryo-contest/

Most of the time, we Filipinos would choose to pawn off our valuable items instead of borrowing from our neighbors. Traditionally, the latter was a common option amongst people living within a single community, however, things began to change during the occurrence of countless pawnshops, featuring various appraisals that offered a much better deal. You may ask, “What changed? Why do the people go for pawnshops? And why is it a recurring choice nowadays?” All of these questions can be answered by the mere history of pawnshops in our country, its popularity in small towns, as well as the economic stature of the country itself. Buckle up, as we delve deep into the heart of this industrial dragon, an industry that has been etched into the history and culture of Filipinos, the industry known as pawn shops.

 

A Brief History

Believe it or not, the act of pawning didn’t even originate from the Western world. Various sources traced it back at least 3,000 years to ancient China. This, however, shouldn’t come as a surprise, as the Chinese people are some of the most proficient business-oriented people in the world. The mere concept of numbers, sales, and even loans are something that China can boast to execute well, even by today’s standards. Perhaps their proficiency is what lead to its worldwide influence, with written historical evidences of it being found in the Greek and Roman civilizations as well.

But the influence didn’t stop there. The industry of pawnbroking took on a life of its own, evolving its business structure along the way. Old documents would further demonstrate its benevolent rise and influence, particularly in 1462, when the Franciscans set up the Montes Pietatis, which granted interest-free loans to the poor (a preliminary concept of pawnbroking), though they were later forced to charge interest to prevent premature exhaustion of their funds (forming a system that would stand the hands of time).

 

Its Arrival in the Philippines

During the Spanish reign, Chinese traders would usually traverse Philippine waters to conduct business. It was in this particular stage in our history that the act of pawning may have been passed on and taught to our ancestors. Of course, we were not the only ones to adapt this particular type of business, as pawnshops may be found around the world, however, we were one of the first to definitely learn it.

 

The Better Alternative

As mentioned before, Filipinos would usually borrow cash from their neighbors in order to pay up their debts, but this brought them another dilemma in the process – more debts. Yes, the mere fact of having the debt collectors next door may have intimidated people into ever borrowing money from others who live nearby, hence why “almost” everyone decided to find alternatives. Pawning would become that alternative, provided that the people pawning off their items wouldn’t be borrowing afterwards, they at least have no further pending balances after. Of course, there are interest rates, but even that is a much better option than having your neighbors knock on your door during the early hours just to collect.

So far, this lead to a total of 18,500 pawnshops (as of 2012) in the Philippines. Take note that that count only represents the different brands of pawnshops in the country, and not their individual branch count, hence, the total branch numbers may dwell into the hundred thousands, so to speak.

 

A Cultural Phenomena

Believe it or not, pawnshops have somehow become synonymous with the Filipino culture, even going as far as reaching pop culture status. If social media memes aren’t enough, they’ve somehow found their way in your daily teleseryes, in which the strong-willed protagonist would pawn off a valuable family heirloom in order to pay up for a sick sibling’s medical bills. If this scenario sounds familiar, well, it has become a somewhat cliché of a plot among Philippine television, especially programs which deal with dramatic stories and such. Change up the family member angle and you’d still be presented with a similar focal point, pawnshops are solutions that our beloved protagonists would usually look forward to, and why wouldn’t they? They are fast, convenient, and are very practical when it comes to making a few extra amounts.

 

A Practical Solution

Pawnshops can be found everywhere. Think of them as your local fast food chain, the only difference is, you’ll end up with more cash right after the transaction. Aside from that, your most prized possessions will be handled with utmost care, seeing that every item has an equivalent value. Regardless if you’re going to pawn off your jewelries, your gadgets, your appliances, etc., you can expect a fast and convenient process which, for the most part, would only take a few minutes. Pawnbrokers understand the urgency of gaining extra cash without running into a road block, hence, why they would give an upright computation of the item’s value. An honest appraisal is all that a hopeful customer would ever ask for, and they’ll get it immediately after every item evaluation.

With all of these in mind, you may already have an idea of why people choose to pawn rather than to borrow money from other people. Simply put, it is a much quicker process in earning a few thousands rather than having to borrow money from hesitant people who might just lend a few hundreds.

 

Factors which May Affect Your Appraisal

Of course, you can’t just simply barge into a pawnshop and expect to automatically get a great deal in one go. There are several factors to consider when trying to get a good appraisal on your items:

1) Are they in good condition? – Simply put, damaged items rate lower than those which are in mint condition. What we’re talking about here is the quality. Make sure to double check your prized possessions before having them validated by the pawnbroker.

2) How much do they currently cost? – Current market value may also affect item appraisal. The older they are, the lower their current market value is, hence, your cellphone of five years (in spite of it still being in mint condition) would definitely have a much lower return than a newer model.

3) What is the reputation of the pawnshop itself? – This is where the honesty and good business practice of the pawnbrokers would come into play. Evaluate your options and choose wisely.

 

Out of all the pawnshops, is there one you can really trust?

Short answer: Yes! The thing about pawnshops is that, you’ll never run out of options to choose from. As a wise consumer and investor towards this kind of service, you’ll probably run into a well-trusted name with a clean track record. Most of the time, people would get a low appraisal from lesser known pawnshops. Transacting with lesser known establishments would usually yield less than desirable results, which is why you should avoid committing this critical mistake. You may be looking for a pawn shop that would provide you with the most honest return possible. No worries, as Cebuana Lhuillier has got your back. With their Pawning Service you can never go short in any amount, as they accept an array of items, from jewelry to gadgets. Amazingly, they also have a 35% higher appraisal VS other pawnshops in the Philippines. They also lead the pawning industry by offering safety and the highest appraisal rate in the industry in its 2,500 branches nationwide. Visit your nearest Cebuana Lhuillier branch now – we assure a fast, easy and secure transaction.

Overseas Filipino Workers (OFWs) and money remittance has a longstanding love story. The thing about this relationship is that one strongly depends on the other while the other gladly opens its arms to serve without objection. And while it may seem one-sided, it has been a very healthy relationship throughout the years. The routine of sending money back home after every payday is one which can always be expected of from OFWs, and repetitive as it may seem, they would never grow tired of it. Which is why the parallel existence of OFWs and money remittance stood the test of time, rich in history, rich in progress, and rich in purpose, it is a part of modern culture that will always be associated with Filipinos.

From the Very Beginning

There is no money remittance without immigrants and overseas workers, hence, let us turn back the hands of time and take a peek into the history of Filipino’s conquest for employment around the world. First of all, there are two types of Filipinos who would send money back home. You might have caught a glimpse of them in the first sentence of this paragraph:

1) Immigrants – These are people who have fully migrated towards foreign territory. They take oath in being citizens of their chosen country (with due process, of course) and are entitled to the benefits of being citizens of that foreign land. Immigration took its roots in the 20^th century (at least for us Filipinos), following the Spanish-American war, which lead to the Philippines becoming a US territory.

The common misconceived destination for OFWs is the Middle East, however, the influx of Pinoys towards the said location didn’t even begin ‘till the 70’s, made possible by an overseas employment program launched by the government, which enabled the Filipinos to work in the Middle East, especially those countries which are members of the Gulf Cooperation Council (GCC).

So, you may ask, “If the Middle East wasn’t our first choice of destination back then, where did Pinoys of the golden years choose to migrate to?” Well, remember when we said that immigration took its roots in the 20th century,   following the event that lead to the Philippines becoming a US territory? One of the main territories affiliated with US back then was Hawaii (as evident by the happenings in Pearl Harbor), hence, why it was estimated that there was an influx of around 120,000 Filipino workers between 1906 and 1934. Their employment choice? Sugarcane and pineapple plantations. Definitely a sweet lasting career.

2) Overseas Workers – Unlike immigrants, who take on permanent residency in foreign countries, overseas workers usually sign a temporary contract to work within a given amount of time, more or less lasting for a few months or years. Having a temporary contract doesn’t entitle them much to citizen benefits, since they aren’t local nationals under oath of that region, nonetheless, they enjoy the benefits given out by the company that they work for.

Overseas workers make up the bulk of Filipinos who were given the chance to work in the Middle East during the 70’s, forming the current cultural trend of Pinoys signing up for employment in the Arab lands. This extended towards the pop culture reference of Filipino entertainment, with movies and primetime dramas giving a routine image of protagonists going abroad to provide financial support for their families, with Dubai and Saudi Arabia as their backdrop.

Do take note that the aforementioned countries aren’t the only chosen locations for both immigrants and OFWs. You can also find Pinoys in the US, Canada, New Zealand, and Australia. Non-Pacific and Middle East countries have become the focal point of some Filipinos in the early 2000’s, obviously the result of foreign influences in film, TV, and radio. Some Pinoys would even factor in the cultural dominance of a country in their list of reasons to work for a particular region, perhaps preferring to bask in the wonderful sights as an additional inspiration for their work abroad.

Now that we have an understanding of the two types of Filipinos sending money back home to their families, we should also understand the significance of these remittances to the Philippine economy. If you think that their families are the only ones harvesting the fruit of their loved ones labors from the foreign lands, you’re definitely mistaken. Here are two important factors to consider:

 

1) Remittances from OFWs are vital to the country. It helps in sustaining the country’s domestic consumption and growth. As a matter of fact, remittances actually represent 10% of the nation’s GDP (Gross Domestic Products).

2) According to data gathered by Bangko Sentral ng Pilipinas (BSP) in 2017, the total cash remittances sent home by overseas Filipino workers rose to 4.3%. If that percentage doesn’t look much at first glance, then you may be surprised to find out that it amounts to $28.1 billion. Take note, that’s in Dollars and not in Philippine Peso.

Now, you may think, “Okay, the country definitely receives a “share” of those remittances, but how much impact do they have towards the economy in the long run?” According to a financial coaching website:

“The bulk of remittances in the country are important because it plays a pivotal role in boosting the economic standing of a nation in the world, by keeping it competitive through its dominance in providing services in export business, like in the export of goods and merchandise.”

Much like how the import and export of goods makes our economic cycle go round, money remittances somehow assists in that process. You’re not going to find a much better spin cycle than that of our economic structure. For the most part, it is a knowledge that only our avid marketers would understand, but for the average Filipino, it is an unseen part of their lives which are integral for their lifestyle. Needless to say, OFWs are the unsung heroes of this process, being the participating initiators of this cycle, even without their physical presence within the country.

To make the long story short, the timeless parallel of money remittances and Filipinos can be traced all the way back to the 20^th century, throughout the 70’s, and up to this present day. As long as there are OFWs and Filipino immigrants/expats, remittances will continue to flow and assist within our economic structure and financial make up, signifying a much stronger economic stance and a brighter future for the OFW’s families.

But that is made possible only by a well-trusted remittance center, and nothing indicates a more trusted name than Cebuana Lhuillier. With Cebuana Lhuillier’s Pera Padala Service, you are ensured an easy, quick, and safe way to send and receive money. With 2,500 branches nationwide and accredited international partners, this money transfer service is made available to clients within and outside the Philippines. All transactions are real time, which enables clients to claim the money as soon as the sender completes the sending process in the branch. So for our beloved OFW patrons, feel free to visit any of our international partners – we assure a fast, easy and secure transaction.

For a complete list of our international partners, you may visit our website at https://www.cebuanalhuillier.com/pera-padala/.

Banks – what would we do without them? They’ve been around for centuries, allowing everyone to undergo and process their financial transactions within their preferred branches (given that they have an account, of course). People may choose to apply for a new account, or apply for a bank-sponsored loan, make a deposit, make a withdrawal, and even pay their bills. Indeed, banks are the one-stop spots when it comes to financial transactions. Every process is delicate and is handled by a well-trusted staff of the bank itself, may it be the teller or the bank manager. Nonetheless, one of the main commodity within a bank isn’t even the huge stash of money within the safe, but rather, the trust given by its countless clients. If a majority of people doesn’t trust a particular bank or one of its branch, you can bet that the daily crowd size would decrease within a short amount of time. No one likes to conduct business with an establishment grazed with a bad review, after all.

With all of that in mind, you may probably be wondering, “How do I make sure that the bank I’m dealing with is a “Triple A” choice? What are the traits of a well-trusted bank? How convenient are they than other banks which I’ve already had the pleasure of transacting with before?” All of these may be answered by taking a peek into the work structure of a bank itself, it’s relevance in our community, as well as a short history of how it was made.

 

A Brief History about Banks

Believe it or not, the first few set of banks weren’t even handling money transactions back then. Around 2000 BC in Assyria, India, and Sumeria, the first prototype banks (which were the merchants of the world), made grain loans to farmers and traders who carried goods between cities. It wasn’t until the reign of the Roman Empire did they adapt and implement what would become the system that we have in our modern banks right now, with lenders based in temples making loans while accepting deposits and performing the change of money.

Another important part of banking history dates all the way back to Italy, citing the crucial development of banking’s business structure during the medieval and Renaissance period. Now that’s the literal meaning of history, right there.

 

What are the traits of a well-trusted bank?

Each individual deserves to experience an exemplary service from their own choice of bank. It has nothing to do with the economic status of the clients as well (whether they deposit a big amount or not), as it is up to the bank and its staff to make each and every person feel that they are the kings and queens of the hour. It will always be the bank and its underlying staff’s responsibility to uphold the good reputation and trust given to them by their clients. With that being said, here are a few vital indicators that the bank you’re transacting with may be deemed exemplary and trustworthy:

1) Transparency – Whether a client’s loan application would come with an interest rate or not, it should be mentioned first hand, before any contract or agreement were to be signed. Of course, the bank representatives do not necessarily need to divulge all of the bank secrets to the client, but rather, the underlying fees involved in each transaction, including interest rates and other possible service charges. Some clients are willing to pay up these said fees anyway out of goodwill towards the bank, hence, why hiding any detail from them would be counter intuitive at best. Speaking of fees..

2) No Unnecessary Fees – It’s normal for any establishment to charge service fees in order to keep the ecosystem of their business running. However, this shouldn’t be abused to the extent that the client would need to shell out hundreds if not thousands of Pesos just for a single transaction. A trustworthy bank would always have the client’s goodwill in mind, which is why they should avoid overcharging them at all cost. Aside from that, the mere act of withdrawing and depositing money shouldn’t have any additional fees with them, unless of course a client were to withdraw money from one of the bank’s ATMs using a debit/cash card from another bank (inter-banking charges will always apply in this case).

3) Exemplary Service – Bank representatives should be active in helping out their clients with their various banking needs. A bank is considered exemplary if it has a good reputation that would precede it. Good services would always translate into short lines, quick flow and process of transactions, and good reviews from the clients themselves.

All of these may signify that your typical bank would definitely be the best place for you to trust your money with. But what if we were to tell you that there is a much better alternative to this? What if we were to tell you that such alternative is purely unique, unorthodox, and very trustworthy? Well, look no further than your local pawnshop.

 

“A Pawnshop?” You may ask. Yes, you’ve read that right, a pawnshop that also functions as a bank. Believe it or not, such an establishment exists, and it is none other than a longstanding name that you can trust, Cebuana Lhuiller, or more specifically, Cebuana Lhuiller’s Micro Savings Account.

Initially offered in their Rural Bank branches, it is now available through their entire Cebuana Lhuillier branch networks. But that’s not all, as there are still other advantages in signing up for Cebuana Lhuiller’s Micro Savings Account:

1) You will be able to use your 24K Plus and 4C Cards at any of the 2,500 Cebuana Lhuillier Pawnshop and Cebuana Lhuillier Rural Bank branches in order to withdraw or deposit on your savings. with 2,500 branches nationwide.

2) With a minimum deposit amount of only P50 and no minimum maintaining balance, it’s incredibly easy to apply for one. Other banks have a higher required amount when it comes to the initial deposit, going as high as P1,000 – P2,000. And we’ve only mentioned the deposit amount, as there may be other fees involved if you decide to open an account in your typical bank. Cebuana Lhuillier Micro Savings account would not require you to do that at all. Aside from submitting a few paper works and documents for the processing of your account, you’ll be good to go in no time. How is that for unparalleled convenience?

3) It is now much easier to check your balance without even breaking a sweat. Remember when we said that one of the main characteristics of an exemplary bank is their smooth work flow and short lines? Well, Cebuana Lhuiller’s Micro Savings account beats that by a mile, by not even requiring your physical presence in order to check on your account balance. Instead, you may accomplish that via their SMS service, a much reliable way, ready to serve you 24/7.

So, what are you waiting for? Visit your nearest Cebuana Lhuillier branch now for more details.

 

 

Insurance, everyone needs them but not everyone can afford them. For the most part, people are conflicted whether or not they should get one, as the application and approval process gets a bit confusing after a while. Nonetheless, there is a far better alternative for those who wouldn’t want to get hassled in attaining a proper insurance plan. If you’re not updated on the latest trend, there is no need to look any further than microinsurance. You may ask, “What is microinsurance? What are its advantages over the usual insurance? How do I get one?” These questions are best answered with these following information. Get your pens out and take notes as we’ve got you covered:

 

What is Microinsurance?

Microinsurance is defined as an affordable alternative against specific perils in exchange for regular premium payment proportionate to the likelihood and cost of the risks involved. This is typically offered to the working class who may not be able to afford the premiums of a regular insurance, due to the rate difference. Of course, the scope of coverage may vary, however, the purpose is still the same, for people to get a financial assistance in times of need and calamity. The term “need” and “calamity” may also have varying definitions and interpretations, but those who have microinsurance shouldn’t worry as, in spite of that, they would still reap the full benefits of their chosen coverage package.

 

What are the differences between a Microinsurance and a Traditional Insurance?

Of course, there are significant variations between traditional insurance and microinsurance. Their general purpose are similar in perspective, but dwell deeper into their structure and you may find that one is definitely unlike the other. Here are just a few examples:

1) The intended clients – Microinsurance focuses on individuals with no insurance awareness. There is a reason why it’s a more affordable choice, due to the fact that microinsurance establishments aim to make it more accessible towards our fellow Filipinos who aren’t even aware that such services exists. These establishments are aware that the mere concept of getting insured isn’t exactly a well-conceived notion for many, hindered by the higher rates of traditional insurance. Speaking of which, the opposite can be said about traditional insurance, with the intended clients to be people who are well aware of their options and are willing to shell out a lot for any form of coverage.

2) The simplicity of contents – Simply put, microinsurance features are easier to understand. Microinsurance establishments are less about the complications and more about the understanding of their clients, hence, if you’re going to apply for one, you’ll be surprised at how easy it is to learn about the ins and outs of the coverage that you’re planning to acquire.

3) The pricing – If you’re going to apply for a microinsurance coverage, fear not about the prices, as they are definitely way lower than traditional insurance. You do not need to spend thousands just to have a modest coverage or plan, all you need to do is to discuss your options and choose from a wide range of premiums.

4) The requirements – This is one of the main reasons why most people aren’t too enthusiastic about getting insurance, due to the fact that the mere application itself would require lots of paperwork and documents. Especially in a country such as the Philippines, the amount of processing time just for the requirements alone would really test your patience, having to fill up countless forms, just to stand in line thereafter, then be told to come back another day due to an unfulfilled checklist of documents which you may or may have not even come across before.

5) The collection period – Microinsurance payments are mostly collected every week, with some even on an irregular basis. The opposite can be said about traditional insurance, where they collect annually or every month, which would then coincide with some due date bill payments, leading to a more expense-filled week.

6) The damage assessment – Both microinsurance and traditional insurance have that general aim of providing financial assistance when a client experiences a sudden roadblock, either in the form of illness or calamity. However, the way that they assess these situations vary to a certain degree. For example, microinsurance has a simpler and faster method of assessment than a traditional insurance, so you wouldn’t have to wait long in times of emergencies, unlike the typical insurance method which would require several documents as proof, in turn using up an extended period of time for the process to be completed.

 

What coverage and premiums may a microinsurance offer?

In spite of the fact that it is a more affordable option, it still offers a lot of perks that may cover various aspects of a client’s everyday life. Whether they’re at work, at school, or even when they’re home, they can still enjoy the premiums that microinsurance has to offer.

1) For students – All parents are concerned about the safety and well-being of their kids, hence, why it would be a good choice to sign them up for a student premium. During their time inside and outside the classroom, anything can happen. Accidents during play may occur and such may bring a sudden influx of expenses. A student premium would definitely help out with that. Some premiums would even allow parents to sign up their kids as early as 4 years of age.

2) For employees – Going from young kids to adults, an employee coverage works in a similar style as a student premium, with the main difference of sudden occurrences happening within the workplace rather than a school ground. Simply put, it covers accidental death, Disablement & Dismemberment (ADD&D), accidental medical cash aid, burial benefit (accident/sickness), Unprovoked Murder & Assault (UMA), motorcycling and personal liability. Now, that’s what you would definitely call a complete coverage.

3) For automobiles (personal vehicle) – Basically, microinsurance does not limit its services towards humans alone, it also protects your car. A standard vehicle coverage covers Own Damage (OD), theft, loss and/or damage, Excess Bodily Injury (EBI), Excess Property Damage (EPD), and Acts of God/Nature (AOG/AON). Now, having your vehicle repaired wouldn’t be too much of a hassle (as long as they’re within the given set of premiums).

4) For your home – The Philippines itself is one of the most calamity-prone countries in the world. There are certain months in which we’d be hit with two or more storms in succession, hence why a microinsurance premium aiming to provide coverage for our home is definitely well needed. The average premium offers loss protection to buildings and residential dwellings including their contents against perils of fire, lightning and other allied perils such as earthquake, typhoon and flood.

With all of these in mind, it may be no surprise that you’re weighing in your options, analyzing which establishment would be best for availing a well-trusted microinsurance premium and coverage. Look no further than with Cebuana Lhuillier’s Microinsurance Services, affordable insurance products to help Filipinos avail of financial services and privileges that higher-income earners have easy access to, with innovative microinsurance products and services that promise to minimize impact of distress and misfortune on one’s financial position. Feel free to visit your nearest branch for more information.