Filipino households are ending 2025 on solid financial ground but are adopting a more deliberate approach to spending and credit use amid persistent economic pressure, according to the Q4 2025 Consumer Pulse Study by TransUnion.
The study indicates that while inflation remains the top concern, consumers are maintaining confidence in their future financial stability.
Income stability is a key factor, with 42 percent of consumers reporting an increase in income over the past three months and 41 percent reporting no change.
Looking ahead, optimism is strong: 75 percent expect their income to rise in the next 12 months and 80 percent are positive about their household finances for the year ahead.
This resilience is paired with caution, as inflation for everyday goods remains the primary worry for 81 percent of Filipinos, followed by job stability at 57 percent and interest rates at 45 percent.
The balanced mindset is reflected in spending habits. Nearly half (47 percent) of households have scaled back on discretionary activities such as dining out and travel.
About 25 percent have cut back on digital services and another 25 percent have dropped subscriptions or memberships. A sign of increased restraint, 50 percent of Filipinos expect to spend less on holiday shopping compared to last year.
Looking into the next quarter, 47 percent foresee rising bills and loan payments, 42 percent expect medical costs to increase, and 36 percent anticipate higher retail spending, but only 27 percent plan to increase spending on large purchases like appliances or vehicles.
“The trend mirrors the wider economy — still expanding but at a calmer pace after two years of rebound,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion.
“Consumers are managing spending more pragmatically especially with Filipinos looking to spend less this holiday season compared to last year. It’s a sign of practical optimism. People are still participating in the economy but are doing so on their own terms and with greater financial intent,” said Sun.
Attitudes toward credit are also shifting. While 58 percent of Filipinos say access to credit is very important for their financial goals, this figure is a slight dip from last year, suggesting less dependence on borrowing for immediate needs.
Intent to apply for or refinance credit fell to 47 percent from 53 percent last year, with planned borrowing skewing toward smaller products like personal loans (49 percent) and buy now pay later (BNPL) arrangements (35 percent). Confidence in credit access remains steady at 42 percent, with Gen X (47 percent) and Millennials (46 percent) being the most confident.
“We’re seeing a real shift in how Filipinos view credit. It’s moving from being a necessity to becoming a choice,” said Sun.
“Credit remains available but consumers are weighing their options more carefully guided by how secure they feel about their jobs and savings. It’s a more thoughtful use of credit as a tool not a crutch,” said Sun.
TransUnion teamed up with the Bangko Sentral ng Pilipinas (BSP) to introduce an interactive credit education module on the BSP E-Learning Academy (BELA), set to be available next year.
The TransUnion Consumer Pulse Study surveyed 961 adults from Sept. 25 to Oct. 15, 2025, covering Gen Z (18-28 years old), Millennials (29-44 years old), Gen X (45-60 years old) and Baby Boomers (age 61 and above).
