What Is The High-5 Banking Method? 6 Valuable Money Management Lessons We Learned From TikTok
#TikTokSkwela is surprisingly educational!
Most of us know that TikTok is one of the top-rated mobile applications today because of the comedic skits and its ability to shape the week’s trending topics. What most people don’t realize, however, is that it can be educational too! Just scroll through the hashtag #TikTokSkwela and educational videos about money, family, career, and life will take you by surprise. These free and accessible lessons, condensed into short, easy-to-digest videos, are definitely helpful and valuable for those who are starting their #adulting journey.
If you’re one of them, here are 6 money management tips we learned from the app!
Tip #1: Complete your emergency fund before anything else.
@kebcuevas What was the best FINANCIAL ADVICE that you’ve heard that had a big impact in your life? #Finance101 #MoneyTokPH #InvestmentPH @tiktokphilippines
? Finance101 Best Financial Advice - KebCuevas
Once you get a stable job, it’s easy to get swayed by the newfound freedom you have over your finances. Monthly budols and discounts can convince you to think that self-care only comes in online shopping parcels. However, it’s best to know how to prioritize.
Keb Cuevas is known for sharing facts about agriculture, adulting, and food to his 17,000 followers on TikTok. He shared that the best financial advice he ever received was to complete your emergency fund before investing or starting a business.
An emergency fund is your safety net should any unexpected circumstances happen. “That way, you won’t have to think about too [many] risks because you have a safety net. Before you risk it all for a business or a start-up, have yourself protected first,” he says.
Tip #2: Withdraw money at the bank itself to avoid debit card skimming.
@missinvest Reply to @dreamerwisherthinker Real Talk: Debit Card Skimming 👮??? #storytime #personalfinance #tiktokskwela #learnontiktok #edutok
? original sound - Cha | Miss Invest
Debit or credit card skimming is a technique used by thieves, where they copy or steal information from a legitimate credit card (including the magnetic stripe) by fitting the ATM with a small device called a skimmer. The deed happens when you use your credit or debit card and make transactions like a withdrawal or inquiry in an unsafe ATM.
Engr. Cha Gomez, popularly known as “Miss Invest” on TikTok, shared her experience when she was victimized by debit card skimming in 2015.
“Nawalan ako ng 20k savings sa debit card ko. I think na-skim yung card ko sa isang standee ATM,” she says. “Mula noon, nag-wi-withdraw na lang talaga ako sa mga ATMs na nasa bank talaga, kasi meron silang CCTV at security guard.”
Tip #3: Split your money into separate accounts.
@missinvest Reply to @rendm11 We need 5 Bank Accounts Part 1 of 3 🏦 #moneymanagementtips #moneyjar #edutok #tiktokskwela #learnontiktok
? original sound - Cha | Miss Invest
Miss Invest explained the “High 5 Banking Method”, a budgeting technique that requires you to have 5 different bank accounts into which your money will go. She discussed the similarities it has with the money jar system, wherein you are required to split your money into 6 “jars”: 55% for necessities, 10% for long-term savings, 10% for financial freedom, 10% for play jar, 10% for education jar, and 5% for the “give” jar.
For the High 5 Banking Method, however, you will have 5 bank accounts for each category: bills account, long-term savings, short-term savings, lifestyle account, and emergency fund.
By following this technique, it’s easier for you to manage your finances and you are less likely to go overboard in your spending.
Tip #4: Create separate joint accounts if you’re a couple.
@thesavvypinay Money Management Tips for Couples - part 1 #tiktokskwela #edutokph #adulting #tiktokph #learnontiktok #moneytokph #fyp #coupleph #fyp
? original sound - Bea | The Savvy Pinay
The Savvy Pinay, known for her business and personal finance videos on TikTok, shared a money management tip specifically for couples: having a separate joint account.
“Open a separate joint account para sa inyo ng partner mo, but still keep individual accounts,” she says. “This individual account, walang pakialamanan.” The fund you build in your joint account will be used for your common goals.
After opening a separate joint account, The Savvy Pinay suggests using the money jar system to manage your finances.
Tip #5: Get rent-to-own units, only if you can.
@chinkeetan Reply to @abseedeej What do you think its a better alternative?? #Finance101 #chinkpositive #tiktokskwela #learnontiktokph
? Monkeys Spinning Monkeys - Kevin MacLeod
Finance and entrepreneurship motivational speaker Chinkee Tan entertained a TikTok question from a follower: “Umuupa ako nang tatlong taon na 6k per month. Mas maganda ba umupa o mag rent-to-own?”
Chinkee says, “Kung yung six thousand pesos mo ay ipinang-uupa mo lang, at may nag-o-offer sa’yo ng rent-to-own na 6k din, mag rent-to-own ka na lang, magiging iyo pa.” However, it’s important to note that this is not a black and white scenario!
“What if sabihin sa’yo, rent-to-own pero kailangan mo bayaran doble, 12 thousand a month?” Chinkee says that if this doesn’t disrupt your budget, and you can pay the 12 thousand fee without any problems, then go for it. But if it does not fit your budget and you think you might end up in debt, it’s best that you rent first.
Tip #6: Don’t be afraid to use your credit card.
@thesavvypinay Answer to @dokyeoms 5 reasons to use a credit card 💳 #learnontiktok #moneytokph #edutokph #tiktokskwela #finance101 #adulting #tiktokph #fyp
? original sound - Bea | The Savvy Pinay
Getting a credit card may sound promising—imagine having the freedom to pay your purchases without using cash! However, if you don’t have any discipline in managing your expenses and paying your credit card bill on time, then that’s a completely different story.
The Savvy Pinay recommends using your credit card only if you know how it works and you are disciplined to pay on time to avoid interests. This way, you can build your credit history and utilize your points!
