1

RISKY FINANCIAL BEHAVIOR OF UM DIGOS COLLEGE EMPLOYEES

An Undergraduate Thesis
Presented to the Faculty of the Department of Business Administration
UM Digos College
Digos City

In Partial Fulfillment of the Requirements for the Degree

Bachelor of Science in Business Administration
Major in Financial Management

By

Gicel M. Taneza
Gina Fe J. Pacatan
Jenita V. Garcia

July 2019
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ABSTRACT

This study was conducted to determine the level of the risky financial behavior of 97
employees at UM Digos College. The researcher used a quantitative-comparative
method to conduct the study. The statistical tools used in this study are mean,
frequency, percentage, t-test and anova analysis to determine the differences between
the risky financial behavior of employees. The result revealed that financial related
behavior, financial related personality, financial attitude towards risk and returns and
financial confidence level of employee’s has no significant difference when analyzed
according to gender, age, marital status, working status, and income level. Moreover,
researchers recommend the employees to have a knowledge about managing
finances.
Keywords: Risky financial behavior, Employees, Finance
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CHAPTER 1

THE PROBLEM AND ITS SETTING

Background of the Study

Risky financial behavior has been a productive topic particularly in financial

management. Due to its great impact to a people’s day to day living, the study on

human financial decision making has become important. A notable theme within the

risk perception is the demographic profile that affected on someone’s behavior,

personality, confidence level and attitude towards risks and returns. The issue on

demographic profile is essential from the perspective of individual interest as well as

for the economy of the whole country (Walczak and Pienkowska-Kamieniecka, 2018).

Recent evidence indicates that experiencing certain types of shocks can affect

on an individual’s risk preferences. Experiencing macroeconomic shocks affect an

individual’s willingness to take financial risk and invest in certain types of assets. The

difference in financial behavior is also attributed in the demographic profile of an

individual. Consistent gender differences in financial knowledge have been

documented (Carducci, 2013).

Gender differences in financial behavior have been identified. Male college

graduates reported more financial knowledge than female graduates. The lack of

knowledge in handling emotional awareness towards risky financial behavior and the

lack of financial literacy correlates to poor financial decision which affects financial

behavior is the main reason for such (Garman, Kim, Kratzner, and Bruson, 2009).

In University of Mindanao Digos College employees face financial decisions be

it savings, budgeting, spending, and investments. Very little research has explored the
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influence of attitude, emotional and hormonal factors for risk in financial behavior. The

goal of this study is to know the level of risky financial behavior and examine the role

and differences of employee risky financial behavior.

Statement of the Problem

This study aims to identify the level of Risky Financial Behavior of UM Digos

College Employees. Specifically, this sought to answer the following questions:

1. What is the demographic profile of the respondents in terms of:

1.1 Gender;

1.2 Age;

1.3 Marital Status;

1.4 Working Status; and

1.5 Income Level?

2. To what extent is the level of risky financial behavior in terms of:

2.1 Financial Related Behavior;

2.2 Financial Related Personality;

2.3 Financial Attitude towards Risk and Returns; and

2.4 Financial Confidence Level?

3. Is there any significant difference in the level of risky financial behavior when

analyzed according to profile gender, age, marital status, working status and income

level.

Hypothesis

The null hypothesis of the study was tested at 0.05 level of significance.

Ho. There is no significant difference between risky financial behaviors when

analyzed by profile.
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Review Related Literature

The review of the related literature herein that contains several studies that

gave empirical support to the relationship between the level of risky financial behavior

among college employees. And the local and global studies conducted by

professionals to develop certain variables.

Financial Related Behavior

Financial behavior can be related to the concept of financial management at

individual level planning, management, and controlling. Financial activities of

individual predict and plan, make decisions on capitalization, investment and control.

In planning, it has to be able to plan what financial activities can be done in the future.

For this reason, he or she has to write financial budgeting to do the activities in the

coming time. In performing control, is required to be able control financial activity so

that it can run in accordance with the financial budget that has been planned. Based

on the explanation above it can be concluded that financial behavior is an activity of

financial management at individual level consisting of planning, management, and

controlling (Kasmir, 2010).

Financial behavior can play a very important role on individuals in influencing

the welfare of a household, society, nation and the world. Its best describes a set of

observable financial activities such completely to the mind behavior is mainly

influenced by one’s identity, wants, knowledge, performance, achievement, personal

characteristics, significance and psychological factors. Behavioral researcher believes

that market system is riddled with imperfections, risk, uncertainty and rigidities that

prevent information from being readily available. Behavior contends that financial

knowledge interacts with financial attitudes, subjective norms and perceptions to make
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financial behaviors. It is driven from individual preferences and financial literacy

(Garcia, 2013).

Individuals lack of financial education were found to be eager. On financial

behavior there is variation risk preferences, confidence, decision making status and

time preferences of individuals with different levels of financial literacy. In addition, it

is needed to examine factors that influence financial behavior of individuals. Variables

that significantly influence financial behavior are location, degree graduated, age,

decision maker status, gender, working status, and income (Meier and Sprenger,

2013). Financial behavior greatly affects risky financial decision of every individuals

that young people were able to take risk than older people. (Jain, and Mandot, 2012).

However, according to Finke and Huston, (2011) young individuals take fewer financial

risks as compared with older persons. Also married individuals generally do not make

decisions on their own. Rather their choices tend to influenced by their spouse, either

because their spouse acts as the household decision-maker in financial matters or

because couple make joint financial decisions. (Lyons and Yilmazer, 2007). As

Wagland and Taylor (2009), mentioned that gender is not a barrier in decision making.

Individuals income either high or low, does not affect the individual’s financial behavior.

Financial behavior may vary between younger and older people (Jurgerfen and Savla,

2010).

Financial behavior is the credential to captive all the decision making of an

individual, family, society or a state by understanding the impact of these decisions on

a specific situation for right decisions related to their money management and also

give them a chance for planning their expenses, investments and savings.
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Financial Related Personality

Personality is a structure of thoughts, feelings, behaviors and motives to every

person and determined how individuals recognize and react to the environment (Gillen

and Kim, 2014). Risk tolerance normally can be defined by personality of the

individuals. Financial risk tolerance is one of the major issues for a person to make

decision on investment. The willingness of a person to suffer the negative impact of

the investment, or the return earns different with expectation refers to the risk

tolerance. More aggressive, high venturesome in investment is the personality of risk

takers, whereby in comparison to risk taker, personality of risk averse much less

aggressive (Levin and Lejuez, 2013).

One factor affects the financial behavior or decision of an individual is

personality trait. Personality is the total traits which distinguish an individual from other

people and that individual has all the traits such as abilities, emotions, motives, nature,

social, physical skills, capacity, values, beliefs, attitudes and opinions of people are

also one of the concepts including man’s behavior (Kleinman, 2014). High risk

tolerance investment has risk taking behavior. The researcher concluded that those

people tend to invest in riskier investment. Risk taking was positively related negatively

with neuroticism, agreeableness and conscientiousness, openness to experience, and

extroversion. The investors investment decision may have affected by risk tolerance

that combined of few components. Those components included personality traits,

demographics, education, emotion and others. (Pak and Kannadhasan, 2015).

One of the personality traits is extroversion. Extroverted individual’s

characteristics prefer to involve friendly, warm blooded, outside world and sociable

which can also define as level of sociability. In addition, extrovert individual make

decision easily and more focus on investments (Sadi et al., 2011). Agreeableness is
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the personality differences with social co operations and the personality tendency to

respect the others; they can easily attract people's trustfulness. The person is truthful,

straightforward and deceiving people is hard for them and they will restrict their

demand and will give the other people’s needs as priority (Gambetti and Giusberti,

2012). The conscientiousness is an individual’s cognitive ability in making decisions

(Chitra and Sreedevi, 2011). Some researcher explained neuroticism personality is

that when the market condition becomes poor highly neuroticism people tend to

overrate the risk but when the market condition is good, they tend to underrate the

gain on investment (Kleine, Wagner and Weller, 2015). Willingness to try different

activities or to consider unconventional idea relates as openness to experience.

Individuals with high degree of openness to experience are more will attempt different

approaches and creative in their field. People with high tolerance for uncertainty and

demand for change are considered having tendency towards sensation seeking and

risk-taking. People with high openness to experience have greater risk tendency and

risk-taking (Camgoz, 2011).

Personality is defined as the characteristics and traits that demonstrate

consistency in how a person typically behaves among the various contexts of life. The

characteristics nature of personality traits may be defined as a set innate trait

possessed by individuals that impact their financial behavior in numerous situations.

Financial Attitudes towards Risks and Returns

Financial attitude refers to the general attitude toward money and finances.

An individual financial behaviors and habits may be extremely varied in both space

and time, as the formulation and modification of these are influenced by a number of

factors. Individuals' relationship with money is fundamentally influenced by childhood

experiences as people will, even involuntarily, either keep on following then acquired
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patterns, or contrarily, rebuffing them. The global crisis is at the source of such

economic and social changes that, in turn, have induced a novel competitive

environment on the retail banking market in terms of consumer retention and

acquisition. A deeper knowledge and understanding of clients' financial behavior is a

tool in the hand of banks to foster adaptation to change (Németh et al., 2016). A

method segmentation that allows institutions to characterize individuals based on their

financial attitudes. This segmentation practice enables financial institutions to offer

financial products that are tailored to suit each segment and also makes it possible to

forecast individual’s behavior (willingness to repay loan). An attitude-based

segmentation approach allows for financial institutions to provide financial products to

the various segments and to identify less financially-conscious consumers in order to

assist them with supplementary services. (Hornyák, 2015).

The risky assets need to be analyzed as a two-step process: including

participation decision, which refers to the decision to hold or not to hold risky financial

assets, and allocation decision, meaning the fraction of disposable financial wealth

invested in risky financial assets. Also, their research includes a control variable which

captures individual risk preferences along with gender and socioeconomic variables.

The researcher concluded that males are more likely to hold risky assets than females

this relationship gets stronger when one focuses on the ownership of directly held

stocks. In respect for allocation decision, the regression analysis shows that males

and females invest equal shares of their wealth in risky financial assets (Badunenko,

2010).

Financial risk tolerance is one among the factors that determine the risky

behavior of an individual. Financial risk tolerance plays a very important part of an

individual’s choices about wealth, portfolio allocation, insurance and other all finance
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related decisions. (Hanna et Al., 2001) Risk tolerance tends to be measured and

assessed using the three methods personal or professional judgment, heuristics,

objectively. Those that rely on personal or professional judgments have a use assess

the risk tolerance of other people. A judgment can be made based on the assumption

that others have the same risk tolerance as the judge. The use of heuristics is another

way that some attempt to assess risk tolerance. In terms of risk assessment, for

instance, some people believe that, holding all other factors constant, females are

more risk tolerant than males or that those that are employed tend to be riskier than

others. Individual’s attitudes and perception of financial risks and determinants of

variety of financial decisions. Financial risk is a decisive factor affecting how

individuals exercise regular saving and planning. Financial risk incorporates different

aspects of risk including investment, borrowing and saving (Van Rooij, 2011).

As mentioned, financial risk tolerance is one factor that determine the risky

financial behavior of individual when making a decision, there is a tradeoff of the risk

tolerance level of an individual and the risk tolerance depends on the behavior and

previous actions of individual. Financial attitude of an individual is subjective factor on

the following demographic age, gender, marital status, education income, and primary

occupation. This demographic factor in fluences the financial decisions/behavior of

individual.

Financial Confidence Level

Financial confidence is important in making savings and investment decisions.

Stated that confidence in financial knowledge will helps individuals make better

financial decisions. In addition, on financial perceptions, knowledge and financial

behavior (Parker and Stone, 2014). The researcher concluded financial behavior is

influenced by actual and perceived financial literacy. On the other hand, in a survey
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conducted in Hungary, Nemeth found that higher education students are generally

overconfident and risk averse (Németh, 2014).

As per Gyarmati (2016), money and debt management, those with high

confidence and low knowledge tend to have poor planning and saving outcomes. It

may be that good planning and saving practices require more complex information

processing. Low confidence despite high knowledge may be an indicator of poor

financial practices stemming from a susceptibility to various kinds of cognitive biases

in decision-making. The factors associated with confidence are very important when it

comes to financial decision-making. Indeed, this research reveals a complex

relationship between self-perceived skills and financial knowledge that varies based

on confidence levels and is indicative of underlying factors influencing financial

behavior.

Financial confidence levels of economic are mixed. Researchers conclude that

overconfidence leads to investing in riskier stocks (Barber and Odean, 2011).

Confidence level plays an important role in financial behavior. Over confidence or less

confidence my lead to suboptimal choice (Asaad, 2015). Financial confidence in

making investment and savings decisions Confidence in financial knowledge helps

individuals make better financial decisions (Hung, Parker, and Yoong, 2009). Being

over- or under-confident can increase challenges in making financial decisions either

by increasing cognitive biases and making short cuts (Garcia, 2013).

Confidence built through ongoing success in day-to-day money and debt

management may actually undermine planning and saving, since practices developed

in the context of managing current financial needs may be unrelated to the information-

processing demands associated with planning future needs. Designing interventions

to target the potentially detrimental effects of overconfidence on financial decision-

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making would also require more detailed and direct measures of investing and saving

behavior.

Theoretical and Conceptual Framework

In order to better understand the feasibility of the proposal and the study,

theoretical and conceptual framework need to be introduced.

The theoretical base for this study is drawn from the study of the development

of the risky financial behavior scale: a measure of financial risk tolerance, as indicated

by Zheng, Yilong (2013). It states an individual’s daily financial risk behaviors in four

domains of financial risk tolerance: financial related decisions, financial related

personality, attitudes toward risks and returns, and financial confidence level.

This study is supported by Jawaheer and Vikneswaran (2016), who found that

risky financial behavior greatly affects financial decisions. Findings revealed that

women show hesitation to make financial decisions whereas men show eagerness to

make financial decisions. Men tend to be more likely than women to engage in risky

financial behavior and men more willing to accept financial risk than women. Gender

differences in financial knowledge are documented. Women generally show lesser

financial knowledge, have more financial concerns and are less confident about their

financial situation. Men have higher subjective knowledge and objective knowledge

than female they often take more on risk taking behavior. In addition, individuals

should have a financial knowledge to give them the appropriate confidence to ensure

beneficial financial behavior. Because financial knowledge is information that is

learned, organized, represented and stored in memory. To create inherent and useful

property of the knowledge itself and make reasoning and elaboration regarding their

financial decisions.
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DEMOGRAPHIC PROFILE RISKY FINANCIAL BEHAVIOR

 Gender  Financial Related Behavior

 Age  Financial Related Personality

 Marital Status  Financial Attitude towards Risk

 Working Status and Returns

 Income Level  Financial Confidence Level

Figure 1. Schematic diagram showing the variable of the study

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Significance of the Study

This study risky financial behavior of employees at UM Digos College have

never been established. It is important to test and determine the risky financial

behavior of employees. The result of this study will guide them about their personal

finances.

University of Mindanao Management. The result of this study can be used

as baseline data of the University of Mindanao for future risk management plan of their

employees.

Employees. This study will make the employees informed about the effective

decisions regarding earning, investing, spending and money management.

Future Researcher. The findings of this study will benefit the future

researcher from the data derived in this study and its availability for references. This

study will give initial information on the risky financial behavior that might help in

gathering primary and secondary information in studying risky financial behavior

Definition of Terms

It is the researchers’ scope to give simple definition of terms to present a clear

understanding of words defines in the study.

Risky financial behavior. Referred to a behavior that can affect to financial

decisions and can a be financial loss in the future. In this study, risky financial behavior

is the factor that affects UM Digos College employee’s decision making.

Employees. An individual who engaged in risky financial behavior. In this

study, employees are the main participant.

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CHAPTER 2

METHOD
In this chapter, the researchers deliberately provide knowledge of the research

design, research participants, research instrument, research procedures and

interpretation processes. Consequently, in this chapter the researcher will also discuss

the treatment of the data gathered in statistical manner.

Research Design

The researchers used a non-experimental quantitative research design

following a descriptive-comparative method as they conducted the research work. This

involved analyzing, comparing and evaluating if certain phenomenon varies when

perceived in different situations (Calmorin, 2005). The design is suitable in a sense

that the employees’ risky financial behavior will be sought for differences when they

are grouped as to their demographic profile.

Research Participants

The data were gathered at the UM Digos College. The participants of the study

were the employees of UM Digos College with a total number of 97 employees using

random sampling.

Research Instruments

In this study, the researchers used an existing questionnaire authored by

Zheng, Yilong (2013), "The development of the risky financial behavior scale: A

measure of financial risk tolerance". The questionnaire is divided into two parts. Part

one is the demographic profile of employees in terms of gender, age, marital status,

working status and income level. In part two we ask respondents about the risky
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financial behavior in terms of financial related behavior, financial related personality,

financial attitude towards risks and returns and financial confidence level. The purpose

of this questionnaire is to collect and gather information came from the answers and

responses of the respondents to come up with the findings.

The following below is the 5-point Likert scale was used in giving interpretation.

Numerical Range of Verbal Descriptive Interpretation

Scale Means Descriptive
5 4.50-5.00 Strongly Agree If the scale described at all times.
This indicates the risky behavior is
very high.

4 3.50-4.49 Agree If the scale described at oftentimes.

This indicates the risky behavior is
high.

3 2.50-3.49 Moderate If the scale described sometimes.

This indicates the risky behavior
is moderate.

2 1.50-2.49 Disagree If the scale described seldom

This indicates the risky behavior
is low.

1 1.1-2.49 Strongly Disagree If the scale described not at all.

This indicates the risky behavior
is very low.
Research Procedure

To conduct the study and data gathering in the researchers undergone the

following procedures:

1. Asking Permission to Conduct the study. The researcher proponents

wrote a formal letter permission to the AVP of UM Digos College to give consent to

the researchers in undertaking the study.

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2.Administration and Retrieval of Instruments. The researchers

administered personally the survey questionnaires to the respondents and retrieved

them after they completely answered the questions.

3. Processing of Data. After the questions have been answered tallying of

raw scores and collation of the data gathered for statistical treatment.

4. Analysis and Interpretation of Data. The data are subject for statistical

analysis and to find out the answers of the research problems.

Statistical Treatment of Data

The following are the appropriate statistical tools used in the examination of

results.

Frequency. This tool is used in profiling the characteristics of UM Digos

College employees.

Percentage. It is used to determine the percentage of employees in UM Digos

College as our respondents in the study.

Mean. This tool is used in determining the level of the risky financial behavior

of employees.

T-test. It is used to determine if there is significant difference of employees

when group according to profile and the risky financial behavior.

Anova. It is used to determine whether there are any statistically significant

differences between the means.

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Chapter 3

PRESENTATION AND ANALYSIS OF FINDINGS

This chapter deals on the presentation and analysis of findings of the study.

The basis of this was the set of the specific problems raised in Chapter 1: (1)What is

the demographic profile of the respondents in terms of gender, age, marital status,

working status and income level; (2) To what extent is the level of risky financial

behavior in terms of Financial Related Behavior, Financial Related Personality,

Financial Attitude towards Risk and Returns and Financial Confidence Level, (3) Is

there any significant difference in the level of risky financial behavior when analyzed

according to profile: gender, age, marital status, working status, and income level.

Demographic Profile of the Employees

Table 1, represents the characteristics of the respondents in terms of gender,

age marital status, working status and income level.

Gender. Data revealed that male respondents obtained the frequency of 33 in

the percentage of 34% and the female respondents obtained the frequency of 64 in

the percentage of 66%. This indicates that majority of the respondents are female who

take financial risk.

Age. Data revealed that male and female respondents from the age bracket of

20-29 years old obtained the frequency of 69 in the percentage of 71.1%, respondents

from the age bracket of 30-39 years old obtained the frequency of 22 in the percentage

of 22.7%, respondents from the age of 40 and onwards obtained the frequency of6 in

the percentage of 6.2%.

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Table 1. Characteristics of the Respondents (n= 97)

PROFILE f %
GENDER
Male 33 34.0
Female 64 66.0
AGE
20 – 29 69 71.1
30 – 39 22 22.7
40 and onwards 6 6.2
MARITAL STATUS
Single 64 64.0
Living Together 0 0.0
Married 33 33.0
Divorced / Legally Separated 0 0.0
WORKING STATUS
Teaching 64 64.0
Non – Teaching 33 33.0
INCOME LEVEL
Less than 10,000 0 0.0
Between 10,000 and 50,000 97 100.0
Between 50,000 and 100,000 0 0.0
Over 100,000 0 0.0
TOTAL 97 100.0

Marital Status. Data revealed that single respondents obtained a frequency of

64 and 64.0 in percentage and married respondents obtained a frequency of 33 and

33.0 in percentage. This signifies that most of the respondents are single.

Working Status. Data revealed that teaching respondents obtained a

frequency of 64 and 64.0 in percentage and non-teaching respondents obtained a

frequency of 33 and 33.0 in percentage. This signifies that most of the respondents

are teaching.

Income Level. Data revealed that all of the respondents with an income level

between 10,000 and 50,000 obtained a frequency of 97 and 100.0 in percentage. This

signifies that all of the respondents are having the same income.

According to Jain, and Mandot, (2012) conducted a study in Rajasthan found

that decisions was affected by the demographic factors. People have different
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attitudes towards decision making some were risk seekers and some were risk averse.

People with different ages, gender, income, marital status, occupation and knowledge

makes different decisions.

The Level of Risky Financial Behavior

Table 2, presents the overall mean result on the level of risky financial behavior

of employees which is 4.01 indicating that the risky financial behavior is high. This

result is further elaborated per indicator.

Financial Related Behavior. In Table 2, it is clearly shown that financial related

behavior has the highest mean among the other indicators which is 4.40 which

described as high that indicates that the risky financial behavior of employees in terms

of financial related behavior is high. The highest mean in terms of financial related

behavior is 4.67, the execution of this data shows that employees agrees that they do

not like taking high interest loans mainly because it would create stress and lowest

mean in terms of financial related behavior is 3.85 this is show employees do not

change their loan and interest plan once they made a major purchase.

The result of the study is in conformity on the study of Jurgerfen and Savla

(2010) mentioned, financial behavior may vary between younger and older people.

Although the repeated experience and practice of financial activities influence people’s

skills to manage their finances. The result showed that young people practice financial

tasks such as budgeting or planning.

Financial Related Personality. The result evident in table 2 reveals the overall

mean of the second indicator in determining risky financial behavior of employees in

4.38 that described as high which indicates that the risky financial behavior of
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employees in terms of financial related personality is high. This explains that

employee’s personality is a structure of their behavior on how they react and take risk.

The lowest mean is 3.88 which states that employees, most of the time do not feel like

handling any investment involving risk. Employees always consider taking investment

with risk has different returns include how safe their money will be, how fast their

money will grow and the fact that it could be financial loss investment.

The result of the study is in conformity of the study Gillen and Kim, (2014)

Personality is a structure of thoughts, feelings, behaviors and motives to every person

and determined how individuals recognize and react. Many researchers consider the

five personality traits (openness to experience, extraversions, conscientiousness,

agreeableness and neuroticism or emotional stability) this term used to describe

human personality and behavior. The result showed that personality has an impact on

decision making and influence choices.

Financial Attitude Towards Risks and Returns. Based on the table 2 shown

the overall mean of the third indicator in determining risky financial behavior of

employees is 3.96 which indicates that the risky financial behavior of employees in

terms of financial attitude towards risks and returns is high. This depicts that

employees agree that attitude towards risks and returns influenced their risk-taking

behavior. While the lowest mean is 3.47 shows that employees is moderate on their

decisions that the idea of taking loans for further education.

The result of the study is in conformity of the study Van Rooij (2011) mentioned,

individual’s attitudes and perception of financial risks and determinants of variety of

financial decisions. The result shows financial risk is a decisive factor affecting how
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Table 2. Level of Risky Financial Behavior n=97

INDICATORS 𝑥̅ SD
Financial Related Behavior 4.40 0.349
Financial Related Personality 4.38 0.407
Financial Attitude Towards Risk and Return 3.96 0.588
Financial Confidence Level 3.28 0.829
OVERALL 4.01 0.391

individuals exercise regular saving and planning. Financial risk incorporates different

aspects of risk including investment, borrowing and saving.

Financial Confidence Level. The overall mean of last indicator of determining

risky financial behavior of employees is 3.28 which indicates that the risky financial

behavior of employees in terms of confidence level is moderate. This means that

employees do not feel confident making financial decisions even when they have the

knowledge to do. The lowest mean is 2.84 this indicates that employees do not believe

that they have the talent to manage money investment.

The result of the study is in conformity of the study Asaad (2015) who

mentioned that confidence level plays a significant role in financial behavior. Over

confidence or less confidence my lead to sub optional choices. The result shows that

even the employees being overconfident or less confident leads to make suboptimal

choice in making decisions.

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Table 3. Summary of Analysis of Variance in terms of Age

Sum of df Mean F Sig.
Squares Square
Between Groups .156 2 .078 .637 .531
Financial Related
Within Groups 11.517 94 .123
Behavior
Total 11.673 96
Between Groups .721 2 .360 2.232 .113
Financial Related
Within Groups 15.175 94 .161
Personality
Total 15.896 96
Financial Attitude Between Groups .273 2 .136 .389 .679
Towards Risk and Within Groups 32.910 94 .350
Return Total 33.183 96
Between Groups 1.701 2 .851 1.243 .293
Financial
Within Groups 64.341 94 .684
Confidence Level
Total 66.042 96
Between Groups .079 2 .039 .253 .777
OVERALL Within Groups 14.630 94 .156
Total 14.709 96
*p<0.05

Significant difference of
Risky Financial Behavior of Employees
in UM Digos College when analyzed by Age

In table 3, it represents the overall result that age has no significant difference

in the risky financial behavior of employees that has an overall p value of 0.777. In the

significant value of age on the risky financial behavior, financial related behavior has

no significant difference with the p value of 0.531 in terms of age. Same as with the

financial related personality it has no significant difference with the p value of 0.113 in

terms of age. Same with the third indicator financial attitude towards risks and returns

it has no significant difference with the p value of 0.679 in terms of age. Also, the last

indicator financial confidence level it has no significant difference with the p value of

0.293.

The result was opposing to the study of Jain, D and Mandot, N (2012), age has

significant different to decision making stated that young people were willing to take

risk than elder. However, in the study of Finke and Huston (2011), young individuals

take fewer financial risks as compared with older individual.

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Table 4. Summary of Analysis of Variance in terms of Marital Status

Sum of Df Mean F Sig.

Squares Square
Between Groups .095 1 .095 .783 .379
Financial Related
Within Groups 11.578 95 .122
Behavior
Total 11.673 96
Between Groups .154 1 .154 .932 .337
Financial Related
Within Groups 15.741 95 .166
Personality
Total 15.896 96
Financial Attitude Between Groups .112 1 .112 .322 .572
Towards Risk and Within Groups 33.071 95 .348
Return Total 33.183 96
Between Groups 1.333 1 1.333 1.958 .165
Financial
Within Groups 64.709 95 .681
Confidence Level
Total 66.042 96
Between Groups .001 1 .001 .006 .940
OVERALL Within Groups 14.708 95 .155
Total 14.709 96
*p<0.05

Significant difference of
Risky Financial Behavior of Employees
in UM Digos College when analyzed by Marital Status

In table 4, it represents the overall result that marital status has no significant

difference in the risky financial behavior of employees that has a p value of 0.940. In

the significant value of marital status on the risky financial behavior, financial related

behavior has no significant difference with the p value of 0.379 in terms of marital

status. The second indicator which is financial related personality has no significant

difference with the p value of 0.337 in terms of marital status. Same as the third

indicator which is financial attitude towards risks and returns has no significant

difference with the p value of 0.572 in terms of marital status. Also, the last indicator

has no significant difference with the p value of 0.165 in terms of marital status.

The result was contradicting to the study of Lyons and Yilmazer (2007) marital

status has significant different in making decisions, revealed that married individuals

do not usually make risky decisions on their own. However, in the study of Laurie and

Rose (2010) explained that couples have independent management to their income.
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Table 5. Independent Sample t – test on the Level of Risky in Financial Behavior

when Analyzed by Gender
INDICATOR GROUP N 𝑥̅ SD t p
Financial Female 64 4.42 0.341 0.546 0.586
Related
Behavior Male 33 4.38 0.366
Financial Female 64 4.41 0.431 0.824 0.412
Related
Personality Male 33 4.36 0.356
Financial -2.375 0.020*
Attitude Female 64 3.86 0.600
Towards
Risk and Male 33 4.15 0.521
Return
Financial Female 64 3.14 0.785 -2.347 0.021*
Confidence
Level Male 33 3.55 0.859
OVERALL Female 64 3.96 0.385 -1.769 0.080
Male 33 4.10 0.391
*p<0.05

Significant difference of
Risky Financial Behavior of Employees
in UM Digos College when analyzed by Gender

Table 5 shows the overall result that there is no significant difference on risky

financial behavior of employees in UM Digos College when analyzed by gender. On

first indicator, the t-test result for the male and female in the financial related behavior

got a score of 0.546. Second, financial related personality got a score of 0.824 for the

male and female. Third, financial attitude towards risks and returns got a score of -

2.375. And the last indicator financial confidence level got a score of -2.374. Overall,

the result for the t-test of the male and female got a score of -1.769. The t-test result

shows that the gender has no significant difference in the risky financial behavior of

employees that has a p value of 0.080. In the financial related behavior both male and

female has no significant difference with the p value of 0.586. In the financial related

personality both male and female has no significant difference with the p value of

0.412. In financial attitude towards risks and returns both male and female has
 26

Table 6. Independent Sample t – test on the Level of Risky in Financial Behavior

when Analyzed by Working Status
INDICATOR GROUP N 𝑥̅ SD t P
Financial Teaching 64 4.42 0.328 0.505 0.615
Related
Behavior Non-Teaching 33 4.38 0.390
Financial Teaching 64 4.44 0.371 1.904 0.060
Related
Personality Non-Teaching 33 4.27 0.455
Financial -0.640 0.523
Attitude Teaching 64 3.93 0.595
Towards
Risk and Non-Teaching 33 4.01 0.579
Return
Financial Teaching 64 3.08 0.763 -3.602 0.001*
Confidence
Level Non-Teaching 33 3.68 0.819
Teaching 64 3.97 0.345 -1.448 0.151
OVERALL
Non-Teaching 33 4.09 0.464
*p<0.05

significant difference with the p value of 0.020. And for the financial confidence

level both male and female has significant difference with the p value of 0.021.

The result supported by the study of Wagland and Taylor (2009), who found

that gender has no significant difference in the University in Western Sydney decision

making ability. This showed that gender is not a barrier in decision making.

Significant difference of
Risky Financial Behavior of Employees
in UM Digos College when analyzed by Working Status

In table 6 clearly shows the overall result for the difference on risky financial

behavior of employees in UM Digos College when analyzed by working status. On the

first indicator, the t-test result for the teaching and non-teaching in the financial related

behavior got a score of 0.505. Second, financial related personality got a score of

1.904. Third, financial attitude towards risks and returns got a t-test score of -0.640.

And the last indicator financial confidence level got a t-test score of -3.602. Overall the

result for the t-test of the teaching and non-teaching got a score of -1.448. The t-test
 27

result shows that the working status has no significant difference in the risky financial

behavior of employees that has a p value of 0.151. In the financial related behavior,

both teaching and non-teaching has no significant difference with the p value of 0.615.

In financial related personality, both teaching and non-teaching has no significant

difference with the p value of 0.060. In financial attitude towards risks and returns, both

teaching and non-teaching has no significant difference with the p value of 0.523. In

financial confidence level, both teaching and non-teaching has a significant difference

with the p value of 0.001.

The result is supported by the study of Kholilah and Iramani (2013) shows that

income has no influence on financial behavior, which means that an individual’s

income either high or low, does not affect the individual’s financial behavior.