Pinoys not aware where nearly half of expenses go

Filipinos lose track of almost half of their average weekly expenses due to what is termed as mystery spending, according to a recent online survey from Visa.

The survey, carried out by international market research firm YouGov on behalf of Visa, showed how much money consumers in 14 Asian markets were unable to account for because they fail to track their spending.

It 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 differentiates the concept of mystery spending from misplaced or stolen cash—it is about cash spent, but the consumer is unsure of 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,” Stuart Tomlinson, Visa Country Manager for the Philippines and Guam, said.

Seventy percent of Filipino respondents believe their mystery spending went into the purchase of snacks, well above the regional average of only 45 percent.

Filipinos say their mystery spend also went to shopping for non-essential items (49 percent); shopping for food and groceries (46 percent); dining out with family and friends (33 percent); paying for entertainment (night-outs, movies, parties), daily lunch, and coffee breaks (30 percent each); and paying for taxis, toll, and parking fees (24 percent).

Among the Asian markets covered in the study, Hong Kong has the biggest weekly estimated expenses of $113.03 and the biggest mystery spend at an average of $58.39 weekly. Vietnam has the second smallest estimated expenses at $49.36 weekly and the smallest mystery spend at $23.72 weekly.

“One of the ways Filipinos can closely monitor their expenses is through using electronic payment cards, such as debit and credit cards. Electronic cards offer greater control, security, rewards, and convenience over cash. Filipinos can stick to their budget and keep their mystery spending to a minimum when they use electronic cards in their transactions,” Tomlinson said.