3.

Comparison of respondent’s assessment

The discrepancies in respondents' perceptions of financial

management in a household with a relative working abroad in Bauan,

Batangas in terms of basic needs, efficiency funds, insurance, quality of life

and investment when grouped according to profile with age, gender, marital

status, educational attainment, average monthly income, and number of years

working abroad.

Table 13
Comparison of respondent’s assessment when group based on Age
Age
15 – 24 years old 25 – 30 years 31 – 40 years 41 – 50 years
Variables old old old
Adjectiv Adjectiv Adjectiv
Adjectiv Mea Mea Mea
Mean al al al
al Rating n n n
Rating Rating Rating
Basic Needs 3.56 Strongly 3.61 Strongly 3.58 Strongly 3.54 Strongly
Agree Agree Agree Agree
Efficiency 3.55 Strongly 3.56 Strongly 3.50 Strongly 3.45 Agree
Funds Agree Agree Agree
Insurance 3.30 Agree 3.36 Agree 3.36 Agree 3.22 Agree
Quality of Life 3.35 Agree 3.38 Agree 3.51 Strongly 3.45 Agree
Agree
Investment 3.11 Agree 3.15 Agree 3.22 Agree 3.14 Agree

Table 13 analyzed the mean scores of households with a relative working

abroad in terms of basic needs, efficiency funds, insurance, quality of life, and

investment. Results showed that households with a relative working abroad

who aged 25 to 30 years old obtained the highest mean score in basic needs

and efficiency funds, while those aged 31 to 40 years old had the highest

mean score in quality of life and investment. On the other hand, households

with a relative working abroad aged between 41 to 50 years old got the lowest

mean score in most categories, except for investment. The households with a
relative working abroad aged between 15 to 24 years old had the lowest

mean score in efficiency funds, insurance, and quality of life.

The findings suggest that having a relative working abroad can have

varying impacts on households depending on the age of the family member.

Specifically, households with a relative working abroad who are between 25 to

40 years old tend to have better outcomes in terms of basic needs, efficiency

funds, quality of life, and investment. However, households with a relative

working abroad who are 41 to 50 years old tend to have lower mean scores in

most categories except for investment. Meanwhile, households with a relative

working abroad who are between 15 to 24 years old tend to have lower mean

scores in efficiency funds, insurance, and quality of life. These results

highlight the importance of considering the age of the family member working

abroad when examining the effects of international migration on households.

The findings of Wilson's (2019) study are relevant to the current study as

they both examine age differences and financial decision-making. Wilson's

study found that greater financial literacy and experience accounted for older

adults' normatively correct preferences for sequences of receiving money.

Similarly, the current study found that households with a relative working

abroad who are between 25 to 40 years old tend to have better outcomes in

terms of financial well-being, while those with a relative who is between 41 to

50 years old tend to have lower mean scores. These findings suggest that

age and financial literacy/experience play important roles in financial decision-

making and outcomes. However, the current study focuses on the impact of
having a relative working abroad on households, while Wilson's study focuses

on individual financial decision-making.

Wilson, Jenna M., "Financial Literacy, Experience, and Age Differences in

Monetary Sequence Preferences"

(2021). Graduate Theses, Dissertations, and Problem Reports. 3864.

https://researchrepository.wvu.edu/etd/3864

Table 14
Comparison of respondent’s assessment when group based on Sex
Sex

Variables Male Female

Adjectival Adjectival
Mean Mean
Rating Rating
Basic Needs 3.59 Strongly Agree 3.57 Strongly Agree
Efficiency Funds 3.53 Strongly Agree 3.50 Strongly Agree
Insurance 3.32 Agree 3.31 Agree
Quality of Life 3.41 Agree 3.42 Agree
Investment 3.17 Agree 3.14 Agree

The table above presents the mean and adjectival rating of the respondents'
assessment on financial budgeting when grouped based on their sex. The
mean scores for both male and female respondents are high, indicating that
they strongly agree with the importance of basic needs, efficiency funds, and
quality of life in financial budgeting. The mean scores for insurance and
investment are also high, although slightly lower than the other variables.
There is no significant difference in the mean scores and adjectival rating
between male and female respondents in all variables.

The results suggest that both male and female respondents have a similar
understanding and perception of financial budgeting in terms of basic needs,
efficiency funds, insurance, quality of life, and investment. This finding
contradicts the literature that there is a gender gap in financial literacy, which
posits that women display less financial literacy than men. The literature also
suggests that women's financial behavior is affected by built-in prejudices
about gender and finance, which undermine their performance in finance-
related tasks. However, the results of our study show that the observed
gender gap in financial literacy is not present in the context of financial
 budgeting in the Philippines. This implies that the cultural and societal factors
in the Philippines may not have the same effect as those in the studies cited
in the literature.

Tinghög et al. (2021) investigated the gender differences in financial literacy

and explored the role of stereotype threat in this gender gap. The authors
found that the observed gender gap in financial literacy is robust even in
nonnumerical financial contexts and that it cannot be attributed to a difference
in displayed confidence. Moreover, the study showed that a stereotype threat
for women in the financial domain contributes to the observed gender gap.
However, our study's results contradict this literature by showing that there is
no significant difference between male and female respondents' financial
budgeting perceptions in Bauan, Batangas. This implies that the cultural and
societal factors in Bauan, Batangas may not have the same effect as those in
the studies cited in the literature.

Table 15
Comparison of respondent’s assessment when group based on Marital
Status
Marital Status
Variables Legally
Single Married Widowed
Separated
Adjectiv Adjectiv Adjectiv
Mea Mea Adjectiv Mea Mea
al al al
n n al Rating n n
Rating Rating Rating
Strongly Strongly
Basic Needs 3.60 3.37 Agree 3.33 Agree 3.63
Agree Agree
Efficiency Strongly Strongly Strongly
3.55 3.50 3.19 Agree 3.54
Funds Agree Agree Agree
Insurance 3.31 Agree 3.32 Agree 3.19 Agree 3.31 Agree
Strongly
Quality of Life 3.38 Agree 3.44 Agree 3.52 3.48 Agree
Agree
Strongly
Investment 3.14 Agree 3.15 Agree 2.95 Agree 3.51
Agree

The table shows a comparison of respondents' assessments based on their

marital status. The variables are Basic Needs, Efficiency Funds, Insurance,
Quality of Life, and Investment, with Mean and Adjectival Rating columns.
Married individuals had lower mean scores and adjectival ratings in Basic
Needs and Efficiency Funds compared to single and legally separated
individuals. However, married individuals had a higher mean score and
adjectival rating in Quality of Life and Investment. Widowed individuals had
the highest mean score and adjectival rating in Quality of Life. Legally
separated individuals had the highest mean score and adjectival rating in
Basic Needs.
The study found that married and partnered individuals generally exhibit
greater income and wealth, more security, and a more positive outlook across
all generations compared to single individuals. Married and partnered
individuals were also more likely to see themselves as savers and planners,
with a focus on saving for retirement. On the other hand, single individuals
prioritize affording everyday bills and paying down student debt. The study
also revealed significant differences in retirement preparation between the two
groups, with married or partnered individuals having a more positive outlook
and longer planning horizons. These findings are consistent with previous
research by the Society of Actuaries, which found that married couples
nearing and in retirement were likely to be better off financially than single
individuals.

The study by the Society of Actuaries supports the findings of previous

research that married couples tend to be better off financially than single
individuals. In particular, a report titled "Segmenting the Middle Market:
Retirement Risks and Solutions—Phase 1 Report Update to 2010 Data" found
that married individuals were more likely to have retirement savings and
pensions than their single counterparts. The report also noted that single
individuals were more likely to rely on Social Security as their primary source
of retirement income. This supports the findings of the current study, which
found that single individuals prioritize affording everyday bills and paying
down debt, while married or partnered individuals have a focus on saving for
retirement.

Society of Actuaries. (2019). Relationship of Marital Status to Financial

Priorities of Five Generations of Americans. Aging and Retirement, 2.
Retrieved from
https://www.soa.org/globalassets/assets/Files/resources/research-report/
2019/relationship-of-marital-status-to-financial-priorities.pdf
 Table 16
Comparison of respondent’s assessment when group based on
educational attainment
Educational Attainment
High School
College Graduate Post Graduate
Variables Graduate
Adjectival Adjectival Adjectival
Mean Mean Mean
Rating Rating Rating
Basic Needs 3.50 Strongly 3.56 Strongly 3.60 Strongly
Agree Agree Agree
Emergency Funds 3.51 Strongly 3.52 Strongly 3.52 Strongly
Agree Agree Agree
Insurance 3.30 Agree 3.31 Agree 3.36 Agree
Quality of Life 3.47 Agree 3.35 Agree 3.50 Strongly
Agree
Investment 3.17 Agree 3.11 Agree 3.25 Agree

The table shows the mean and adjectival rating of respondents' assessment
based on their educational attainment. The mean for basic needs, emergency
funds, and quality of life increase as the educational attainment level
increases from high school graduate to post-graduate. For basic needs,
emergency funds, and quality of life, respondents with post-graduate degrees
had a mean score of 3.60, 3.52, and 3.50, respectively, indicating a strongly
agree rating. The mean score for investment also increases as educational
attainment increases, with post-graduates having the highest mean score of
3.25.

The data suggests that there is a positive correlation between educational

attainment and financial priorities. Respondents with higher educational
attainment appear to have a greater understanding of the importance of basic
needs, emergency funds, quality of life, and investment. This result aligns with
previous studies, which suggest that education is positively related to financial
literacy and decision-making (Baihaqqy et al., 2020). The higher adjectival
rating for basic needs, emergency funds, and quality of life for respondents
with higher educational attainment suggests that they are more likely to
prioritize these aspects of their financial lives. The findings also suggest that
respondents with post-graduate degrees are more likely to prioritize
investment, which could indicate a greater awareness of the importance of
long-term financial planning.

The study by Baihaqqy et al. (2020) supports the positive correlation between
education level and understanding of financial literacy, which was observed in
this study. Their study found that there is a significant correlation between
education level and financial literacy, which influences investment decision-
making in the capital market. The authors recommend that education and
 training on financial literacy be provided to increase investor understanding of
financial literacy in the capital market. The findings of the current study
suggest that higher educational attainment is associated with a greater
understanding of financial priorities, which supports the need for financial
literacy education to improve financial decision-making. Therefore, the current
study's results are in agreement with Baihaqqy et al.'s (2020) findings, which
suggest that education plays a crucial role in financial literacy and decision-
making.

Insan Baihaqqy, M. R., Disman, Nugraha, & Sari, M. (2020). The Correlation
between Education Level with Understanding of Financial Literacy and its
Effect on Investment Decisions in Capital Market. Journal of Education and e-
Learning Research, 7(3), 306-313. doi:10.20448/journal.509.2020.73.306.313

Table 17
Comparison of respondent’s assessment when group based on Income
Income
Below 50,000 50,001 – 150,000 250,000 & above
150,001 – 250,000
Variables
Adjectival Adjectival Adjectival Adjectival
Mean Mean Mean Mean
Rating Rating Rating Rating

Basic Needs 3.59 Strongly 3.58 Strongly 3.48 Agree 3.61 Strongly
Agree Agree Agree
Emergency 3.53 Strongly 3.50 Strongly 3.47 Agree 3.86 Strongly
Funds Agree Agree Agree
Insurance 3.34 Agree 3.30 Agree 3.11 Agree 3.62 Strongly
Agree
Quality of 3.45 Agree 3.40 Agree 3.36 Agree 3.43 Agree
Life
Investment 3.18 Agree 3.13 Agree 3.17 Agree 3.10 Agree

Results from Table 17 show that there are slight differences in the means of
adjectival ratings across the four income groups for the five variables
examined. For basic needs, emergency funds, and quality of life, all income
groups had means above 3.0, indicating agreement with the corresponding
statements. For insurance an d investment, all income groups had means
above 3.0, indicating agreement with the corresponding statements. The
mean for investment was slightly lower than for the other variables. Among
those earning 250,000 & above, the mean for emergency funds and insurance
were the highest, both with a rating of Strongly Agree.

Interpreting the data from Table 17, there appears to be a general consensus
among all income groups on the importance of basic needs, emergency
funds, insurance, quality of life, and investment. Although there are slight
differences in the means of adjectival ratings across the four income groups,
they do not indicate any significant difference in the importance of these
 variables. Therefore, the data suggests that financial concerns are universal
and independent of income levels.

Supporting literature by Behrman et al. (2013) agrees with the findings from
Table 17, which show that financial literacy positively affects wealth
accumulation. The study found that financial literacy and schooling attainment
strongly positively affect wealth outcomes in linear regression models.
However, the study's instrumental variables (IV) approach showed even
stronger effects of financial literacy on wealth accumulation. The estimated
impacts suggest that financial literacy investments could yield large wealth
gains. These findings support the importance of financial education and its
potential to help individuals make informed financial decisions, leading to
better financial outcomes.

Behrman, J. R., Mitchell, O. S., Soo, C. K., & Bravo, D. (2012). How Financial
Literacy Affects Household Wealth Accumulation. American Economic
Review, 102(3), 300-304. doi:10.1257/aer.102.3.300

Table 18
Comparison of respondent’s assessment when group based on Number
of years Working Abroad

Number of Years Working Abroad

1 – 5 years 6 – 10 years 15 years &
11 – 15 years
Variables above
Adjectiv Adjectiv Adjectiv
Mea Adjectiv Mea Mea Mea
al al al
n al Rating n n n
Rating Rating Rating
Basic Needs 3.61 Strongly 3.58 Strongly 3.57 Strongly 3.54 Strongly
Agree Agree Agree Agree
Emergency 3.58 Strongly 3.50 Strongly 3.47 Agree 3.43 Agree
Funds Agree Agree
Insurance 3.37 Agree 3.32 Agree 3.28 Agree
Agree 3.20
Quality of Life 3.42 Agree 3.45 Agree 3.42 Agree 3.56
Strongly
Agree
Investment 3.18 Agree 3.15 Agree 3.15 Agree 3.10 Agree
Table 18 shows the mean scores and adjectival ratings of the

assessment of respondents on basic needs, emergency funds, insurance,

quality of life, and investment, based on the number of years their relative has

been working abroad. For basic needs, emergency funds, and quality of life,

the highest mean score and adjectival rating were found in households with a

relative who had been working abroad for 1-5 years, followed by those with a
relative who had been working abroad for 6-10 years and 11-15 years. Those

with a relative who had been working abroad for 15 years and above obtained

the lowest mean score and adjectival rating in these categories. For

insurance, households with a relative who had been working abroad for 1-5

years obtained the highest mean score and adjectival rating, while those with

a relative who had been working abroad for 15 years and above obtained the

lowest mean score and adjectival rating. For investment, households with a

relative who had been working abroad for 1-5 years obtained the highest

mean score and adjectival rating, followed by those with a relative who had

been working abroad for 6-10 years and 11-15 years, while those with a

relative who had been working abroad for 15 years and above obtained the

lowest mean score and adjectival rating.

The results of the study indicate that the number of years a relative has

been working abroad can significantly affect the financial well-being of the

households left behind. Specifically, households with a relative who has been

working abroad for 1-5 years tend to have better outcomes in terms of basic

needs, emergency funds, insurance, quality of life, and investment compared

to those with a relative who has been working abroad for longer periods.

Meanwhile, households with a relative who has been working abroad for 15

years and above tend to have the lowest mean scores and adjectival ratings

in most categories. These findings suggest that the initial years of having a

relative working abroad may bring financial benefits to the household, but this

effect may lessen over time. This highlights the importance of providing

support and resources to households left behind, especially those with a

relative who has been working abroad for a longer period.

 A study by Mazzucato and Schans (2011) found that remittances sent

by migrants to their families back home can have a positive impact on

household well-being, but this impact may be limited over time. The study

found that the positive effects of remittances on household consumption tend

to decrease as the length of time the migrant has been away increases. This

finding supports the results of the present study, which also suggest that the

initial years of having a relative working abroad may bring financial benefits to

the household, but this effect may lessen over time.

Reference:

Mazzucato, V., & Schans, D. (2011). Transnational families and the well-being

of children: Conceptual and methodological challenges. Journal of Marriage

and Family
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