Non-financial assets continued to form the foundation of Filipino household wealth portfolios.

Home appliances and equipment remained the most commonly owned assets (96.6 percent), followed by residential properties (69.9 percent), and vehicles (35.3 percent).

Among vehicles, motorcycles (61.7 percent) continued to be the most commonly owned. A notable shift occurred in home ownership trends, with more families choosing rental accommodations (11.3 percent) compared to the previous survey round (10.2 percent).

Within the appliance category, mobile phones (92.8 percent) continued to surpass television (81.1 percent) as the most common household item since the 2018 survey, highlighting the increasing importance of digital connectivity, especially during times of crisis.

The composition of financial assets revealed interesting patterns of financial behavior. Deposit accounts recorded the highest ownership rates at 35.3 percent, followed by traditional cash savings kept at home (28.7 percent), and the rapidly growing category of e-money accounts (24.3 percent).

The post-pandemic recovery period witnessed substantial growth across financial asset categories, particularly in formal banking relationships and digital financial products. Financial institutions played a pivotal role in this transition by accelerating the development of user-friendly digital services. These services addressed the evolving needs of consumers who increasingly required remote access to financial resources during lockdown periods.

The pandemic prompted a significant reorientation of Filipino households' approach to debt and savings. Faced with economic uncertainty, households increased their precautionary savings to protect against the risks of job losses and falling incomes.

Government-imposed restrictions on movement and business operations severely limited traditional spending opportunities such as travel, dining, and entertainment. However, these restrictions inadvertently raised savings, which offered households some respite during the crisis. Furthermore, households benefited from government financial assistance programs.

Households were more reluctant to take on additional debt during this uncertain period, resulting in a significant decline in overall debt levels.

The survey data indicated that only 29.3 percent of households carried any form of debt during this period, representing a substantial decrease from 40.4 percent in the 2018 survey.

The composition of these liabilities primarily consisted of household bills (16.4 percent) and outstanding loans (15.2 percent). Only 0.7 percent of households had outstanding credit card debt, most of which were incurred for the purchase of basic goods.

Wages remained the leading source of income among households in 2021. The percentage of households receiving wage income rose to 91.5 percent, up from 73.7 percent in 2018.

Government employment initiatives implemented to counteract pandemic-related job losses largely drove this increase. About 9.8 percent of households received income from businesses, primarily sole proprietorships in retail or food service, while 55.6 percent relied on other sources, mainly government pandemic assistance or ayuda.

These ayuda, which included cash subsidies and food packs. played a crucial role during the COVID-19 pandemic, providing essential financial support to many households facing economic hardships due to lockdowns and job losses.

Spending patterns of households in 2021 revealed that food and beverages consumed at home accounted for the largest expenditure share at 55.4 percent, consistent with findings from previous survey rounds.

For non-food items, housing and utilities accounted for 10.6 percent, while transportation took up 7.2 percent of the budget. This spending distribution underscores the importance of government price management for essential goods and services.

Meanwhile, non-essential items, including miscellaneous expenses, alcoholic beverages, tobacco, narcotics, and recreation and culture, made up 8.6 percent of total expenditure, with miscellaneous expenses such as personal care, celebrations, and gifts having the highest share at 4.8 percent.

The country's relatively young and healthy population presents potential for a demographic dividend. The average household consisted of four members, with about half of the members under 28 years of age, and an almost equal distribution of males and females.

Furthermore, about 37.1 percent of household members aged 3 years and over were currently studying, while 49.8 percent of those not attending school were at least high school graduates.

Most household members (92 percent) reported good self-assessed health status. To capitalize on this demographic advantage, investing in high-quality education and robust health services is crucial to ensure a well-educated, healthy, and productive young workforce that can drive higher economic growth. Bangko Sentral ng Pilipinas