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Personal-Financial-Management of HUMSS and GAS
Personal-Financial-Management of HUMSS and GAS
August, 2019
INTRODUCTION
Financial experts agree that while people have much more money today than
they did generations ago, the amount of knowledge on how to manage that money
hasn’t kept pace- not at all (Maura, Fogarty. 2012).Every human being should have
their personal financial management. Taking charge of managing our finance and
implementing it well is very important not to the students only but of course also in all
people who have the capability to use money. We must know how to control our own
money. It is important as individual would like to be free in debt and will not suffer
budgeting, saving, investing, debt management and other aspects in life that are
related to any personal money where you can handle all your prospects. In other
coming in, and tailoring the use of money to fit expenses provides a systematic way
and utilizing income (Joseph Wilner, 2009). The more successfu managing our
finances, the better our lives will be either today or down in the line because it is the
financial discipline. Many definitions are given with regarding to this concept, for
individual motives and enterprise goals. Joo (2008) indicates that effective financial
manage personal finances can lead to serious long term, negative social and
various definitions to financial literacy, but have one thing in common— everything
Mandell (2009) defines financial literacy as “the ability to use knowledge and skills to
manage one’s financial resources effectively for lifetime financial security.” Huston
(2010) explains that financial literacy is made up of two elements: understanding and
personal finance, and applies such knowledge in dealing with one’s finances.
This study aimed to determine how the respondents manage their own money
3. What makes some ABM students relatively more knowledgeable than non-
ABM students?
The researcher has high hopes findings of this study will be used by and shall
DedEd - The result of this study may help DepEd to determine how non-ABM
Faculty - Faculty can reflect and see if the respondents are managing properly their
own money.
Teachers. The teachers wil gain knowledge about managing the personal finance so
that she/he will persue teaching related in Personal Financial Management in their
students.
Students. In this study, the result may directly benifit the students. It will encourage
Parents. The result will help the parents guide their children on handling their
personal finance as well as they can control and estimate how much money that will
Future Researcher. The result of this study will personally benifit the researchers.
The researcher will made fully aware of managing their personal money.
(L.R Sebastian Site). The respondents are the Grade 12 (HUMMS and GAS). The
information needed will be gathered and preserve for the final output.
Definition of Terms
For a better clarification of the terms we used in this study, the following terms are
defined conceptually:
Financial Management. A concept that explains how financial assets are managed.
taxes. It is therefore a strategy used to ensure that investment assets yield the
highest interest value. Several academic works indicate that money management
Savings. Defined as the variation between net worth at the end of the period and the
net worth at the beginning of the period which should equal the excess of income
money management. Common financial behaviors include cash, credit and saving
behavior.
Money. Money is any item or verifiable record that is generally accepted as payment
for goods and services and repayment of debts, such as taxes, in a particular
knowledge that allows an individual to make informed and effective decisions with all
CHAPTER II
This chapter presents the review of related literature and studies that give relevant
information helped the researcher in establishing the justification and additional insights to
Financial Management
education level, gender, parents, peers etc. several academic works have been conducted
across countries to confirm it. Literature has shown that there is a direct correlation between a
person‟s age and his or her personal finance understanding. The personal finance
understanding of children and the youth tend to be low compared to the old age. The
acquisition of financial management therefore tends to increase with age and experience.
Hogarth and Hilgert (2010) reveals that students within the ages 18 –24 years are those that
are financially least knowledgeable whilst those within the ages 36 – 40 years are more likely
there is financial literacy gap between women and men as men tend to be equipped with
knowledge, information, instruction and ability to apply ideas and concepts relating to
finance more than women. It has been generally established that females display much lower
knowledge and use of financial literacy than the males due to several reasons. Among the
reasons include the fact that women have limited access to capital compared to men and also
risk averse during investment decisions. From the literature, men tend to perform creditably
well in most personal finance quizzes compared to the women. This consequently urges men
to take more financial risk which puts them in higher debt accumulation in relation to women
(Davies and Lea, 2015). Men have the perception that having enough money will make them
well respected in the society. A person‟s education level has consistently found to have a
direct effect on personal finance. The level of education tends to have a positive relationship
with personal finance. However, there is a contraction as many university graduates have
proven to have inadequate personal finance (Van Rooiji, Lusardi and Alessie, 2009). This
implies that having the University education does not necessarily mean that one has high
financial autonomy. Individuals who are illiterate have proven not to appreciate the basic
financial concepts such as risk diversification (Lusardi and Mitchell 2011).Many scholars in
the field of personal finance have indicated that parents have essential impact on their
children consumption pattern as it has been shown in the literature that children tend to
develop their money management processes from parents (Pinto et al., 2016). Students then
learn from their parents how to manage their finance. This implies that parents are principal
agent on the consumer socialization of their children (Alhabeeb, 2014). Parents then
influence the way children handle money and instill the attitudes their children have towards
parents are able to pass their choice for goods and services to their kids as they learn the
specific products as they grow older and thus reiterates the fact that parents are the principal
source of learning since they are the first point of learning for children.Another factor that
influences the behavior of children is the peer group influence although children are
influenced by the attitudes of their parents. Peer influence however becomes more significant
when they reach adolescence stage. The interaction with the peers exposes the youth to the
current trends of fashion and consequently affects the consumption and the buying pattern of
the youth. The impact of peer groups on children is however centered on the attitude of the
children as literature has shown that peer group influence impacts positively towards the
Financial Education
Bernheim, et al (2001) believe that although financial literacy is a somewhat new, policy
initiatives in financial literacy is not. In 1950s, the United States began recommending
policies to improve the quality of personal financial decision making through financial
education thru the “inclusion of personal finance, economics, and other consumer education
Financial education should be the best tool to effectively come up with better financial
outcomes. Previous studies have shown that lower levels of financial literacy is associated
with lower rates for planning for retirement, lower rates of asset accumulation, using higher-
cost financials services, lower participation in the stock market, and higher levels of debt.
Financial Literacy
The Filipino mindset upon receipt of salaries, as commonly-known, is that upon receipt of
salaries, spending comes in before saving. What is left, is saved. If there’s none left, then,
are concerned about their own and their family’s health, however, only 16 percent of them
are prepared to pay for medical costs in case they are diagnosed with a critical illness.There is
a rising number of senior-dependents or those retirees who depend on their children for
financial help, due to lack of financial education. a financial literacy measure may be used to
predict financial behaviors or outcomes, it does not necessarily imply that individuals will
behave in a way that many scholars, policymakers or educators would deem optimal. In
other words, the mere assumption that the presence of more information and skills will
institutional influences, can determine the nature of the individual decisions. Point out that
the individuals’ financial well-being is dependent on their actions, besides the external
influences of politic and economic forces. That is why it is increasingly recognized the
financial issues. However, it is generally recognized that the level of financial knowledge
lack of financial sophistication is a widely pointed reason for many financial mistakes
made by individuals
Financial Planning
Financial planning teaches individuals to be responsible when it comes to their finances, and
instills the discipline needed in order to keep track of their financial goals. Financial planning
involves educating Filipinos on the different types of goals that they should set: short-term,
medium-term, and long-term. Short-term goals involve monthly living expenses that need to
be paid, or the person’s basic needs, including the setting-up of an emergency fund. In
contrast, medium term goals are those you want to achieve in one to five years like buying a
house or a car, while long term goals are those that take longer than five years to achieve.To
address the growing demand for more investments in the country, the financial industry
advises that Filipinos should save first and spend whatever is left after putting their savings
aside.
Financial Behaviour
Financial Behaviour Several studies in the past have tried to investigate the impact of
students involvement in savings and investment, freeing themselves from debt, effective
money management through living on a budget. Add to this argument stating lack of
financial knowledge has often leans to face financial difficulties in students lives. Suggest
towards quality of life which ultimately leads to better decision making resulting with
CHAPTER III
Methodology
This chapter presents the research design, locale of the study, respondents of the
Research Design
The study adopted the descriptive method that assessed the Personal
method in conducting the investigation. The method was deemed most appropriate
This study will be conducted at the CCNHS - Annex (L.R Sebastian Site) located at
The respondents of the study will be the Grade 12 HUMSS AND GAS Students of
Sampling Technique
but rather use their judgement to select a sample that they believe, based on prior
Research Instrument
name, gender, age, civil status. The second part is the infleunce of students knowldge to
his/her opinions and decisions. The third part is the advantage of ABM students over the
Non-ABM students.
In order to gather the necessary data, the researcher consulted it in internet, read
articles, books and will also conduct survey questionnaire to gain more data and
proof. Researcher will personally distribute the questionnaire to the students who are
prioritized and included in this research. After the distribution is the validation of the
questionnaire. It its analysed and interpreted through the data gathered and
In analysing the data gathered in this study, the researcher use a descriptive
analysis which the researcher will describe basic features of the data in a study. It