Why Gen Z is thinking beyond savings
‘Life insurance has become an essential financial tool for young adults who want the confidence to pursue their goals, knowing they have a safety net in place for life’s unexpected turns.’
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‘Life insurance has become an essential financial tool for young adults who want the confidence to pursue their goals, knowing they have a safety net in place for life’s unexpected turns.’
For previous generations, financial responsibility meant budgeting, paying bills, and saving for the future. For many in Generation Z, however, that definition has evolved.
Today’s young professionals are entering adulthood amid economic uncertainty, rising costs, and rapid change. As a result, they are adopting a broader view of financial security — one that extends beyond saving and investing to include preparedness for unexpected events.
This shift comes as financial awareness continues to improve. The Bangko Sentral ng Pilipinas’ (BSP) 2025 Consumer Finance and Inclusion Survey found that 74 percent of Filipinos correctly answered at least half of financial literacy questions, up from 69 percent in 2021.
The BSP also reported account ownership at the household level expanded with 85 percent of households reporting at least one member having an account in 2025, showing just how inclusive financial awareness has become.
The trend is evident among DAILY TRIBUNE’s Gen Z employees.
For TRIBUNE online editor Jason Mago, the growing push for financial inclusion is especially important for younger generations.
“We weren’t taught these sorts of things [financial literacy, basic saving tips, insurance] in school,” he said.
“That’s why I take it upon myself to be educated on how to save more and better protect myself and my loved ones.”
Business reporter Mico Virata agreed, saying increased access to financial services has made everyday transactions more convenient for people of all ages.
“I think it’s made things easier, especially with paying for things without cash becoming so commonplace,” he said.
For many young adults, financial responsibility now includes building safeguards against disruptions that could derail long-term goals.
BSP data highlights the gap. While more Filipinos are financially included, only 17 percent reported having insurance coverage in 2021. This suggests that while engagement with financial services is rising, protection against financial shocks remains limited.
Gen Z’s approach reflects a growing focus on resilience — the ability to withstand unexpected events without sacrificing future plans. Unlike previous generations that often prioritized wealth accumulation above all else, many young professionals today value flexibility, preparedness, and peace of mind.
Balancing careers, travel, entrepreneurship, and family responsibilities, they recognize that achieving goals requires more than ambition — it requires planning. Financial tools once associated primarily with older adults, such as life insurance, are now entering conversations much earlier.
This shift toward protection is also reflected in how financial institutions are responding. BDO Life, for instance, has highlighted the importance of having a “Plan B” as part of a well-rounded financial strategy, encouraging individuals to safeguard their goals and loved ones while building wealth.
BDO Life president and CEO Renato A. Vergel De Dios said the growing interest among younger Filipinos reflects a broader shift in how financial security is viewed today.
“Life insurance is no longer just for later in life. For Gen Z, insurance protects their most valuable asset: their capacity to earn increasing amounts over the many working years ahead of them. This is their very asset that is key to meeting their aspirations and building a more resilient future. Life insurance has become an essential financial tool for young adults who want the confidence to pursue their goals, knowing they have a safety net in place for life’s unexpected turns,” Vergel de Dios said.
BDO Life offers a range of solutions that resonate with Gen Z’s priorities, including flexible life insurance plans that combine protection with savings or investment components, allowing policyholders to grow their funds while staying covered.
“I got life insurance because it makes me feel more secure,” Mago said.
“Long-term financial stability is so important to me as a young professional, so I appreciate the added security. I want to be prepared whenever I decide I want to start a family,” he added.
For many, life insurance is no longer viewed solely as an end-of-life benefit but as part of a broader financial strategy. It helps address risks such as medical emergencies, income disruptions, or sudden family obligations — realities that can quickly derail even the best-laid plans.
“For me, life insurance is something that all people my age should look into,” Virata said.
“I don’t want to end up in a situation and panic because I have no safety net. There’s no need to take on the risk when so many options are available. Foresight is key,” he added.
What distinguishes Gen Z is its pragmatism. Young professionals continue to pursue opportunities but also recognize the importance of having a backup plan. This “Plan B” mindset reflects a simple truth: financial security is not only about preparing for the future you want but also about preparing for uncertainties you cannot predict.
The BSP has long emphasized financial resilience as a pillar of financial inclusion, encouraging Filipinos to use financial tools that support stability and well-being. For young professionals, this means combining savings, investments and protection.
As Gen Z reshapes the meaning of financial responsibility, preparedness — not just savings — is becoming the new standard.
