A Presentation for PSU Economics Society Lingayen Campus, Lingayen, Pangasinan November 12, 2019

1. THE ART OF SAVINGS
Arlenne C. Espinoza, CDS II
A Presentation for PSU Economics Society
Lingayen Campus, Lingayen, Pangasinan
November 12, 2019

2.  We are living in an age where we are almost forced
to learn how to save money and to try to save in
almost every aspect of life in order to improve our
living standard
 It sometimes takes attention and persistence and our
monthly income will look much higher
 We save, basically, because we can’t predict the
future
 Saving money helps us to become financially secure
and provide safety net in case of an emergency
Why do we need to save money?

3. Reasons why we save
• Emergency cushion – a new roof for your house, medical expenses, sudden
loss of income
• Retirement – you will need savings and/or investments to take the place of
the income you’ll no longer get from your job
• Average Life Expectancy – with more advances in medicine and public
health, people are now living longer and needing more money to get by
• Volatility of Social Security – social security was never to the primary source
of income and should be treated as a supplement to income
• Education – the costs for private and public education are rising every year
and it’s getting tougher to meet these demands

4. Saving Tips
1. Learn how to save on small things;
2. Look for stores offering discounts;
3. Don’t forget the do-it-yourself principle;
4. Make a budget;
5. Make your own food;
6. Use your local library;
7. Dine out with care and coupons;
8. Seek out free entertainment;
9. Use your student ID; and
10. Use coupons.

5. SAVINGS MOBILIZATION & CAPITAL
BUILD-UP PROGRAM (SMCBUP)
• Capital Build Up (CBU) - it means increasing
a member’s paid-up share capital in the cooperative.
• Savings Mobilization - it means depositing a member’s
unused or idle money in the coop so that it could be borrowed by
other members who are in need for productive or providential
purposes

6. Legal Basis :
• Article 75 of R.A. 9520 - Capital Build-Up
The by-laws of every cooperative shall provide
for a reasonable and realistic member capital build-
up program to allow the continuing growth of the
members’ investment in their cooperative as their
own economic conditions continue to improve.

7. By-Laws
Article VII - Capital Structure
Section 1. Source of Funds. The Cooperative may derive its funds from any or all of
the following sources:
• Members’ Share capital contribution;
• Loans and borrowings including deposits;
• Revolving Capital - which consist of the deferred payment of patronage
or interest on share capital;
• Subsidies, grants, legacies, aids, donation and such other assistance from any
or foreign institution, public or private;
• Retentions from the proceeds of services acquired/goods procured by
and
• Other sources of funds as may be authorized by law.

8. OBJECTIVES OF THE
PROGRAM
Create awareness / consciousness on the
importance of savings generation
 Encourage cooperatives to implement and
institutionalize Savings and Capital Build up
Program
 Improve productivity of target cooperatives

9. GOAL
Improve the financial status
of cooperatives
 Upscale the category of
cooperatives from micro to
small and small to medium

10. UNDERSTANDING THE PROGRAM
SMCBUP shall promote thriftiness and strategies to increase share
capital of members and generate additional capital to respond and
meet the demands and needs of the members for innovative
business undertakings and services.
 SMCBUP shall encourage members to save with the cooperatives
for the growth and financial stability of their cooperative through
the generated internal resources from the individual savings of
members.

11. RELEVANCE OF
SMCBUP
Cooperative Member
Principles and Values
Cooperatives contributes to local economy as
steady and bankable sector in the
countryside
Cooperatives as financially independent, self
supporting, self-reliant and socio-economic
sector
Values of discipline, thriftiness and habit of
savings are instilled on the members.

12. IMPORTANCE OF SMCBUP
To encourage cooperative members to become thrifty and
participate in the generation of funds to provide better
services to all cooperators;
To sustain the continuous growth of the cooperative;
To minimize outside loans;
Coop to be self-reliant/independent
Could be used for expansion of the enterprise/services.

13. SCHEMES IMPLEMENTED
BY COOPERATIVES
Automatic loan
reduction
/retention
Piso Piso Para sa
Koop (1 Piso a
Day)
Birthday Regalo
Savings Raffle
Promo
Share Capital
Raffle Promo
Voluntary Savings
Deposit
Special Time
Deposit
Tipid Movement,
Kiddie Savings and
Family Savings
Plan
Commodity
Savings Plan

14. SOME TIPS/GUIDE OF
EFFECTIVE SMCBUP
Have a good plan, realistic targets and implementing guidelines for the
continuous CBU and savings mobilization program of your cooperative;
Have the CBU and savings mobilization plans, targets and implementing
guidelines approved by the General Assembly;
Let your members understand why they should save in the coop and continue
to increase their paid-up capital share;
Encourage your members to participate in continuing CBU and savings
mobilization activities of your cooperative;
Have an accurate and up-to-date recording and accounting of the members’
capital and savings contribution.

15. Laboratory Cooperative
“A cooperative organized by minors shall be considered a laboratory cooperative
and must be affiliated with a registered cooperative. A laboratory cooperative shall
be governed by special guidelines to be promulgated by the Authority.”
A Cooperative may assist in the organization of a laboratory cooperative composed
of fifteen (15) or more individuals who are minors, who may be students or out of
school minors, Filipino citizens and are actually studying or residing within the
nearest area of operation of the intended guardian cooperative. (Rule 6, Sec. 2 of RA
9520)
Legal Basis…Art. 26, RA 9520

16. Affiliation
A Laboratory Cooperative shall be affiliated with
a duly registered cooperative, to be known as
the Guardian Cooperative, before the
Cooperative Development Authority shall issue a
Certificate of Recognition.

17. Purposes
1. To serve as a training ground for its members to prepare them
for membership in regular cooperatives;
2. To teach the values of thrift and savings mobilization among its
members;
3. To instill cooperative values, principles, financial discipline,
business skills and leadership skills among its members; and
4. To promote and advocate Filipino social and cultural values,
financial education, ecological awareness and sustainable
development.

18. Cooperative in Region I with
Laboratory Cooperatives
1. Saint Louis Credit Cooperative - Saint Louis Laboratory Cooperative
2. Sta. Cruz Savings and Development Cooperative (SACDECO) -
SACDECO Laboratory Cooperative
3. Tubao Multipurpose Cooperative – Laboratory Cooperative of Tubao
Credit Cooperative
4. Sacred Heart Savings Cooperative – Laboratory Cooperative of Sacred
Heart Savings Cooperative
5. United Christians Multipurpose Cooperative – United Christians MPC
Laboratory Cooperative

19. Cooperative in Region I with
Laboratory Cooperatives
2. San Juan Teachers and Employees Multipurpose Cooperative – SJTEMPC
Laboratory Cooperative
3. Nueva Segovia Consortium of Cooperatives – NSCC Laboratory
Cooperative
4. Pangasinan State University Multipurpose Cooperative – PSU-Lingayen
Laboratory Cooperative
5. La Union Multipurpose Cooperative – Agoo Montessori Laboratory
Cooperative
6. Teachers, Retirees and Urban Employees Credit Cooperative (TRUE)-
Teachers, Retirees and Urban Employees (TRUE) Credit Cooperative
Laboratory Cooperative

20. SACDECO
SHSC
NSCC
AMLP
Status of Savings
FY 2018
P 92
M
P 23M
P 10
M
P 3 M

21. No. of Members and Savings
No. of Members Amount of Savings
Saint Louis Laboratory Cooperative 89 PhP 201,371.31
SACDECO Laboratory Cooperative 43,636 92,021,540.99
Laboratory Cooperative of Tubao Credit Cooperative 1,003 0.00
Laboratory Cooperative of Sacred Heart Savings Cooperative 15,142 23,613,019.48
United Christians MPC Laboratory Cooperative 129 818,424.87
SJTEMPC Laboratory Cooperative 109 636,952.00
NSCC Laboratory Cooperative 8,054 10,266,967.85
PSU-Lingayen Laboratory Cooperative 56 24,347.66
Agoo Montessori Laboratory Cooperative 5,959 3,095,935.63
Teachers, Retirees and Urban Employees Credit Cooperative
(TRUE) Laboratory Cooperative
65 0.00

22. Activities and Services
• Depository/Savings Mobilization
• Financial Education Program/Financial Literacy
Training
• Capital build up/Thrift and Savings Services
• Participation in Various Cooperative Activities and
Events
• Feeding Program
• Child Protection Insurance
• Youth Camp
• Tree Planting, Clean up Drive, Gulayan sa
Paaralan

23. CDA Dagupan Extension Office
Website:
www.cda.gov.ph
Email address:
r1@cda.gov.ph or
cda_dagupan@yahoo.com
CDA Region 1 Dagupan
Extension Office

24. References
RA 9520, Revised IRR
www.cda.gov.ph
https://www.modestmoney.com/the-art-of-saving-a-basic-guide-to-saving-money/16838
https://www.chartercollege.edu/news-hub/7-money-saving-tips-students
https://www.google.com/

25. Thank you