Cash Flow for the Poor?

[northtoalaska]

I’m pretty certain this is in the wrong sub-forum, but I’m not sure where to place it. Please move it as needed. Tx.

 

Hello,

I’m helping a friend and her family get started in the piggery business. (See pic — they are all named after me! 🤣)

In a few weeks she’ll be going to market and we expect a payday of about 40—50k. The next batch of pigs will be double the current, so maybe another 80—100k when they get sold off in 3 months or so. 

The family is out in the provinces of southern Leyte not too far from Sogod. 

My question is, how do poor families handle cash flow? They’ll have to budget for the cost of new piglets and feed. I’ve not detected any sign that either mom or dad get their hands on the money or that dad goes off drinking etc. The few pesos I’ve supplied are all accounted for by receipts and pics of feed/pigs/etc. onsite. My friend pretty much runs the household in terms of money and it seems everything else. 🙂

My concern is if they just keep that amount of money hidden in the house it might go walk-about. But, do folks at this socioeconomic level in the RP even use banks? 

I’m thinking a savings account at Metrobank, there’s a Sogod branch, might be a good idea. Something with no debit card. So she’d have to physically go to the bank to get money. (Debit cards are fairly dangerous to use even in the USA, I can’t imagine they are any safer in the RP.)

Or, are there alternative ways to handle cash flow?

Thanks so much. 

 

[JJReyes]

Unless the family already has a checking or savings bank account, my suggestion is to accompany them to the bank branch.  In other words, help them open an account or multiple accounts.  Don't assume they know how.  The procedure can be alien and intimidating if you don't  have experience.

 

[Snowy79]

I agree with JJ Reyes.  The amount of locals I've seen who ask the security guard to do the transactions for them is scary. 

 

[Mike J]

A friend of mine here was helping his young wife's family in a situation much as you describe.  He was also provided receipts, pictures, etc of the pigs being raised.  In addition he and his wife closely monitored the raising of the pigs and spending of allocated funds.  The first batch of pigs was raised and taken to the market.  The father then took the pig money to the cock fights and lost it all.  

[northtoalaska]

2 hours ago, Mike J said:

A friend of mine here was helping his young wife's family in a situation much as you describe.  He was also provided receipts, pictures, etc of the pigs being raised.  In addition he and his wife closely monitored the raising of the pigs and spending of allocated funds.  The first batch of pigs was raised and taken to the market.  The father then took the pig money to the cock fights and lost it all.  

 

Yep. That’s always a risk. It’s one of the reasons I’d like to see her establish a bank account without a debit card. Of course, even that doesn’t eliminate the risk you mention. All you can do is play the odds and make such foolishness as hard as possible. 

But, I’m glad you made mention of it. Those with zero experience with the pitfalls that await them in the RP need to understand such risks. 

Thanjs. 

[northtoalaska]

11 hours ago, JJReyes said:

Unless the family already has a checking or savings bank account, my suggestion is to accompany them to the bank branch.  In other words, help them open an account or multiple accounts.  Don't assume they know how.  The procedure can be alien and intimidating if you don't  have experience.

 

 

That would be best. But I’m no longer in the RP. 

My friend is no dummy, but also has zero experience with banks. 

Thanks for the input. I’ll make sure to go over the process as much as possible. 

[JJReyes]

13 hours ago, northtoalaska said:

Yep. That’s always a risk. It’s one of the reasons I’d like to see her establish a bank account without a debit card. Of course, even that doesn’t eliminate the risk you mention. All you can do is play the odds and make such foolishness as hard as possible. 

I wonder if Philippine banks have joint savings account requiring two signatures to withdraw funds.  Two signatures are often required to withdraw from a corporate checking account.

[Gary D]

We have a joint savings account and I'm sure we have sent the sister in law to the bank with a signed withdrawal slip.

[sonjack2847]

We have a joint account and only 1 signature is required, as we have been building I have taken out large amounts without my wife being present.

[sonjack2847]

7 hours ago, JJReyes said:

I wonder if Philippine banks have joint savings account requiring two signatures to withdraw funds.  Two signatures are often required to withdraw from a corporate checking account.

As he says he is not here so 2 signatures are a little impractical.