Around 1.9 million government workers by now have received their 2024 midyear bonus.
The amount of the midyear bonus, according to the Department of Budget and Management (DBM), is equivalent to one month’s basic pay.
Government employees, the DBM added, should be in the service at least four months from July 1, 2023 to May 15, 2024 to be eligible.
Having spent more than two decades in government service, I’ve always looked forward to receiving the yearly midyear bonus – apart from the yearend and Christmas bonuses, of course.
I share the joy of my former colleagues in government in getting the midyear bonus, which from experience, is timely.
The month of May is enrollment period and the prompt release of the midyear bonus, usually starting on the 15th of every May, supports many families in paying tuition fees.
Paying school fees is one of the budget priorities where a significant chunk of the bonus has to be set aside.
On the other hand, those with lesser family obligations, especially the millennials and Generation Z, have to be mindful of their budget as well to steer away from the temptation of impulse buying.
It is unfortunate that only 37% of Filipino adults had savings as revealed by the Bangko Sentral ng Pilipinas 2021 Financial Inclusion Survey. While low income is a factor, this must not get in the way to develop a savings habit.
Here are some practical tips about managing money and savings.
First, follow the 50/30/20 budgeting rule. Allocate 50% of your income to needs; 30% to wants, and 20% to savings.
Second, make sure you prioritize your needs first than your wants and desires. This is a tough balancing act especially to many millennials and Gen Z who care so much about work-life balance as part of their job satisfaction and who popularize the YOLO (you only live once) mantra while in the workplace.
Third, monitor your expenses. Expenses must never be higher than income and avoid bad debt at all costs.
Finally, teach ‘em while they are young. Financial literacy must be part of lifelong learning skills of any child. Having a piggy bank is a good starter to develop a financial mindset and instill a sound financial practice, a savings habit which will benefit the child throughout his life.
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Dennis Ting is a former director at the Department of Budget and Management.
