September 7, 2018

What is the Cost of Living in PH?



This case shows the income of one mother and her expenses in one month who is living in Metro Manila, Philippines (applicable in year 2018). We can observe that bulk of the expenses goes to food followed by house rent. 

This case is not isolated, since many low-income earners in the Philippines houses 4 or more children. What happened here is that, in the past years the father was contributing to the family income, after things go wrong in the relationship the father left and the responsibility of taking care of the 4 children was shouldered by the mother (the other scenario is that the father died, then the mother shouldered the family responsibilities).




My goal here is to analyze this case and to figure out how we can help these people. We can’t blame the mother since the problem is already there, but if the mother had anticipated the problem, she might as well result to family planning (the mother might have chosen to bear only one child). If she chose to have only one child, the effect on the food cost might have been lowered by 3/5 or 60% equivalent to P2,400 which will reduce the food cost to P1,600 (computation: P4,000 – P2,400 = P1,600). 

Another thing to look at where we can reduce the cost is the housing rent. The government should provide housing facility to low income earners, by this, housing expense could be reduced by half. Developing low cost decent housing facility which can be amortize at P1,500 (or lower) will be lowered compared to prevailing P2,500 monthly rent in substandard home facilities in the metro. 

Electricity bill in this case is high, my assumption is that high electricity bill was due to lighting and use of television. The electricity in this case could be reduced by 50% to P600 if the house use led lights (3watts) and that watching television would not be done whole day. In this case when children are not watching television, they should be engaged in activities that enhances well-being like playing sports, participating in barangay and school activities, and studying.

The price of water is high as well, in the province you can use water regularly every month and have a bill ranging from P150 to P250. The government should review the pricing scheme of monopoly water companies in the metro, and decide whether there is a need for regulation.

Let us look at the new income and expense accounting when reduction in costs are applied:


Look at the big difference in savings from previous P-500 to P3,750, this change is feasible if and only if government will provide the right policies and people cooperate in the changes to be made. 

The P3,750 savings can be used as a security which can be deposited in the bank - which can be invested, or the family can use the money to improve the quality of their food for better nutrition, or they can use it to improve the education and learning of their child; to simplify, increasing savings will open doors to many improvements.


9 comments:

  1. Haha wala sa hulog yann!kulang assessment nyo! Kulang nga yan P10k sa pagkain pa lng hihi..

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    Replies
    1. Hindi po ata yan assessment, base po ata yan data nila sa actual na case

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  2. Maganda ung idea nyo na bigyan ng pabahay ung low income earners para mabawasan gastos sa rent, kung mapapababa ung cost ng kuryente at tubig ayus din!

    ReplyDelete
  3. Dalwa lang yan para matulungan ung mahihirap, pataasin ung minimum wage or pababain ang presyo ng basic na gastusin. ��

    ReplyDelete
  4. Haha masmabuti pa magbasa ng libro kesa manood ng tv, mas lower ang cost, haha

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  5. 1600 sa food in 1 month? Parang may mali.

    ReplyDelete
    Replies
    1. Ung budget nung ina sa pagkain na may 4 na anak ay P4,000 (malamang sa malamang pinagkasya na lng ung pera). Sina sa siguro nung writer e kapag 1 na lang ung anak, mababawasan nang 60% (3/5) ung gastos sa pagkain kaya naging 1,600 n lng, yan yung pagkaintindi ko.

      Delete
  6. So walang mag aaral sa mga anak ng single mom na merong 8k na sahod ?

    ReplyDelete
  7. Sa tingin ko sa case nung nasa article sa public school pumapasok which is libre, ung gastos lang ng ina is ung P300 na allowance

    ReplyDelete

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