Minding the Gap: A High Schooler’s Mission to Simplify Finance for Filipinos

The Philippines faces a persistent challenge with financial literacy. In 2022, a study conducted by Standard & Poor revealed that only 25% of Filipinos are considered financially literate. Another 2021 Financial Inclusion Survey found that only 2% of respondents answered all six basic financial literacy questions correctly, and just 69% could answer half.

Most Filipinos lack access to essential private healthcare, have no savings, and are one medical emergency or job loss away from falling into debt or poverty. Erich Paredes, an 18-year-old high-school graduate from Manila, is determined to change this—one step at a time.

“I see how the lack of financial literacy affects Filipinos on a day-to-day basis. Many don’t know how to manage their money, whether it’s budgeting, saving, or investing. The awareness gap is huge, and it has direct consequences for everyone. The need of the hour here is accessible and easy routes to financial literacy. I realized that the best way to do this is to create a platform that simplifies financial planning, with information that’s jargon-free and actionable,” says Erich.

“My parents didn’t have formal financial education, but they understood the basics of managing money. They saved, budgeted, and maximized opportunities, which directly improved our family’s social mobility. I saw how this impacted our lives firsthand. I want every Filipino family to have that same opportunity,” she adds.

Erich’s financial literacy platform, “Cash Compass,” was born out of her work with Females for Finance, an initiative to promote financial independence for women. Taking inspiration from her work here, she created the platform to boost financial knowledge among teenagers, aiming to provide sustainable learning opportunities. Today, her platform offers comprehensive modules and interactive content designed to make finance both fun and easy to understand.

“Financial literacy is a broad topic. My biggest challenge was narrowing down the information while creating the curriculum. Finance, in its raw form, isn’t helpful to the average person—you have to break it down into actionable steps. My curriculum currently focuses on budgeting, saving, investing, and taxes. These are the core areas where I hope to instill good financial habits in students,” Erich explains.

Only two out of five Filipinos have private health insurance. Most either go without insurance or rely on government-provided healthcare. “While PhilHealth is available, many people don’t understand how it works, what coverage it offers, or how to navigate the insurance process. By the time they figure it out, it’s too late and they are already in debt from medical bills. The lack of information and transparency makes health insurance harder to manage,” says Erich.

Her platform, “Health Finder,” a health insurance simplifier, aims to educate Filipinos on their private insurance options. “My goal is to give people access to clear information and help them choose the best insurance plan for their needs. Public or private, insurance is complex, and I want to make it easier to understand at every level. Healthcare needs to be accessible to everyone, and this is a foundational step towards it,” she comments.

Erich’s interest in financial awareness began with her studies in math and economics. “I learned about moral hazards in economics, especially in relation to insurance, and quickly saw why the Philippines has such a major issue with health insurance. The lack of data, transparency, and relevant information all contribute to the problem,” she says.

As a student passionate about behavioral finance, Erich also worked with renowned research teams from University College London and King’s College London to study how legalizing gambling impacts economies. “I learned a lot about the relationship between individual behaviors and their effects on larger economies. Our research showed that legalizing gambling can benefit the economy without necessarily increasing the number of gamblers. My current goal is to present my findings and explore practical solutions,” she shares.

In the short term, Erich aims to increase awareness around healthcare and finance. In the long run, she plans on working with service partners, organizations, and NGOs to provide lasting solutions and free information through her platforms. She hopes her initiative will be the first step toward improving financial situations in the homes of millions of Filipinos.