Taysan High School and Child

Development Center
Financial Literacy: A Method for Efficient Saving Practices of Junior High

School Students in Taysan High School and Child Development Center

A Research Study Submitted to

Taysan High School and Child Development Center

Poblacion West, Taysan, Batangas

As a Partial fulfillment for the

Second Semester – SHS Department

Accountancy, Business and Management (ABM)

By

Andal, Christhyle Joy D.

Gerundio, Francine Jenelle M.

Lontoc, Mary Joy B.

2022
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CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

Introduction

Alan Greenspan said, “the number one problem in today’s generation is the

lack of financial literacy.” One of the nation’s problem is the poverty and one of the

major causes of poverty is the lack of knowledge on how to spend and save our

money effectively. In other word, our awareness about financial literacy, which is the

knowledge and skills of an individual on how to manage their finances, can affect not

only ourselves, but also the country.

As stated by Dr. Jose Rizal, “kabataan ang pag-asa ng bayan”, youth must

have a comprehension about the effects and benefits of financial literacy in able to

come up with an efficient saving practices for the country’s development as well as

themselves. According Melanie Maur (2018), one of the solution to make people

financially-literate is to empower teenagers in influencing children about saving

practices because young people tend to listen more to their peers . Through that

strategy, we can promote youth as the agents of our community.

Due to the fact that schools does not emphasize in teaching financial literacy,

students are not well informed on how to manage their money. According to Rufino

Rios (2017), students nowadays have the best gadgets but does not even know about

their tuition. He also added that students would not miss a night out even if that cost

them of being absent the next day. His statement pointed out that youth focuses on

keeping with the trend than saving their money for the future.

According to the study of Jeni Theresa Bona (2018), the major factor that

affects an individual’s spending or saving habits is their family. Her study states that
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we are being influenced by our parents as we observe and follow their saving and

spending habits. Aside from family, Bona also includes in her study the lifestyle and

attitude of an individual as a factor that affects our saving habits. She explained that

lifestyle is how the person expressed her living through buying and consuming his/her

likes in the society. On the other hand, attitude makes up one’s interest of saving and

spending habit.

According to the research of Gabriella Angela and Ary Satria Pamungkas

(2022), parental socialization is a factor of student’s saving practices because parental

teaching is more effective than any formal teaching in schools. They also added peer

influence as a factor of saving practices because when youth became less dependent

on their parents, they became more dependent with their peers. Students tend to

discuss with their peers and classmates how much pocket money they have, they

talked about what food or things to buy, and they often share to each other how much

money they save. Angela and Pamungkas also stated that self-control is one of the

factors that affects that student’s saving practices. Self control is the ability to regulate

your responses to avoid undesirable behaviors and achieve long-term goals. They

explained that when someone has a good self-control, they know how to prioritize

their needs over their temporary desire and often have a better saving practices.

Since efficient saving practices does not only help an individual, but can also

help in country’s economy, the nation provided a law that reinforce the evidence of

benefits we got from efficient saving practices. One of the purpose of Republic Act

9505 or the PERA act of 2008 is to promote saving mobilizations by establishing

legal and regulatory framework of comprised voluntary personal savings and

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investments. Through the declaration of this study, individuals got a support from the

nation on regarding on their saving practices.

The researchers focused on the strategies of having an efficient saving

practices among junior high school students of Taysan High School and Child

Development Center. Since our country is currently facing a crisis, it is essential for

us to have a knowledge about the proper budgeting. Hence, knowledge is not just for

a temporary use, but for lifetime, that is why it is a must, especially to the youth to be

aware about financial literacy.

Considering those factors, this study aims to know whether junior high school

students have an efficient saving practices or not. Aside from that, the researchers will

also identify what are the possible problems and complications that they might

encounter such as lack of knowledge about financial literacy, current financial

situation, the influence of their peers, and the parental socialization. After identifying

the problems, researchers will suggest a strategies on how they are going to prevent or

mitigate it. The purpose of this research is to help the junior high school students of

Taysan High School and Child Development Center to have the strategies for efficient

saving practices.

Statement of the Problem

This study aims to assess the common problems encountered by Junior High

School students and to determine how that problems affects the saving practices

among Junior High School students. The major focus of this study is to determine if

Junior High School students in Taysan High School and Child Development Center

have enough knowledge to come up with efficient saving practices. Specifically, this

study seeks to answer the following question:

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

1.1 Grade Level

1.2 Section

2. What are the factors that affects the Junior High School students’ saving habits in

terms of:

2.1 Financial Literacy

2.2 Saving Behavior

2.3 Peer Influence

2.4 Parental Socialization

3. To what extent does financial literacy helps Junior High School students to have

efficient saving practices?

4. What are the problems encountered by the students that affects their saving

practices?

5. Based from the result, what are the suggested activities for efficient saving

practices of Junior High School students?

Conceptual Framework

Systematic process is necessary in creating research study. This will serve as a

pilot of information cycle and as framework of reliable foundation. This is the

combination of different concept and theories, the same with researcher’s knowledge

to attain expected and positive result. The main goal is to promote the efficient saving

practices among Junior High School students.

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Being aware of money management and savings can equip young people with

knowledge to fight fraud and take good care of their finances (Tschache, 2009).

Efficient saving practices has a lot of benefits to an individual so we must learn the

proper methods to achieve it.

Figure no. 1

INPUT OUTPUT
PROCESS

Distribution of
Common problems Suggested
survey
that affects the questionnaires activities for

saving practices of efficient saving

Application of
Junior High School practices of Junior
related studies
students High School

Interpretation of students
results

The paradigm (Figure no. 1) represents the process that the researchers will

undertake to reach the conclusion in the Method for Efficient Saving Practices of

Junior High School Students in Taysan High School and Child Development Center.

The means of collecting the input is through diagnosing the knowledge of the

respondents via survey questionnaire. Through this, the researchers will identify the

common problems that affects the saving practices of Junior High School students.

After acquiring the essential data for the study, the information will be merged to

produce the output, which will include suggested activities for efficient saving

practices of Junior High School students

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Scope and Limitation of the Study

This study examine the financial literacy among Junior High School students

in Taysan High School and Child Development Center. This study displays the

researcher’s knowledge of the subject and their ability to produce thoughtful and

meaningful ideas from the information provided.

The scope of this study covers Junior High School students in Taysan High

School and Child Development Center. The researcher limits this study to 103

respondents, 23 students of grade 7, 30 students of grade 8, 21 students of grade 9,

and 29 students of grade 10 at Taysan High School and Child Development Center.

This study is limited to those respondents because the response of Junior High

School students is very useful to know if the youth has the knowledge about financial

literacy. Elementary and Senior High School students of Taysan High School and

Child Development Center is not included in this study.

Significance of the study

The result of this study will be a great help to the school administration,

teachers, students, parents, future researcher, and readers. It will serve as their basis to

find new strategies and methods in efficient saving practices of Junior High School

Students.

To the School Administrators

This study will help them to have an accurate perception about the students'

saving practices. Through this, administrators will be more considerate in terms of

financial literacy among students.

To the Teachers
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The result of the study can help them to assess the needs of teaching financial

literacy specially among junior high school students.

To the Students

This study will help them to understand the benefits of having an efficient

saving practices. This can also help them on applying the gained knowledge on their

lives.

To the Parents

The result of this study will help them to lessen their worries regarding on how

their children spends their money. This can also serve as a guide to the parents on

how they should influence their children in terms of saving their money.

To the Readers

Through this study, the readers will be informed about the methods of efficient

saving practices. Readers can also use this study to reflect about their saving practices

and apply in their lives what they have learned in this study.

To the Future Researcher

This study will help the future researchers to conduct studies relating to this

matter. Contents of this research will serve as a reliable basis for their future studies.

Definition of Terms

For better understanding of the concepts and words included in this study, the

following terminologies are defined operationally.

Financial Literacy. it is the knowledge of an individual on how to manage their

money in terms of spending and saving efficiently.

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Knowledge. the understanding and comprehension of a person about a certain and

specific topic.

Method. it is a strategy in achieving a certain thing with the use of orderliness of

ideas and thoughts.

Parental Socialization. is the parents’ authority on how they influence and control

their children.

Peer Influence. is the act or decisions made by the students similarly to their friends’

action to feel accepted and validated.

Saving Behavior. is how the students act in terms of managing their money

specifically about savings.

Saving. an act of not spending some of your money for the future purposes.