Personal Financial Literacy and Spending Behavior of TPC Students

The goal of financial literacy is to empower financial decision making at all stages of life

preferably the students who might be a nation’s leader in the future. It provides financial

knowledge and skills on how to manage their finances in order to make decisions that could

create a better life in the forthcoming, not just on them but also to the lives of others.

Considering the facts that many young people budgeting behavior are not well guided

thoroughly. There is a need to build a strong foundation of understanding on how important it

is to wisely control their own monetary resource is a better solution. This creates tool to well-

equipped students in preparation to real life situation along the road to success. As Kat Delgado

Kirkwood told Oppu that “without financial literacy education, the economic prosperity of the

country is a whole is at risk.”

Most of the college students leave their hometown which is their comfort zone in order

to study their desired degree and reached their ambitions in life. Upon entering the college

vivacity, a college student should bravely embrace independence in managing their way of life

such as doing chores on their own, taking good care of one self and most specially managing

personal finances without the aid of parents. Budgeting is the most common problem in the life

of a college student. According to Investopedia.com that “Budget” is defined “as an estimation

of revenue and expenses over a specific period of time and is utilized by governments, business

and individuals at any income levels.

Conforming to a recent survey conducted by EVER FI in March,2013, (an education

technology company that teaches, assesses and certifies students’ critical skills including

financial literacy), it was found out that students between ages 13 and 18 disclosed that the

state of financial literacy among the nation’s youth grim. Based on the survey, more than a

quarter of students believe that they will be unprepared to manage their own finances upon

high school graduation. Furthermore, about 60% of students said on that survey that their

parents are responsible for educating them. However, it was reported on the survey of

Networks Financial Institute that only 26% of parents felt prepared to educate their children

and 83% of the students said that personal finance education should be mandatory in school

however, only some states required to devote into this subject.

In conclusion, we the researchers believe that there is a need of having financial literacy,

as it is relatable to the life of the college students who are generally striving the life of being

independent where some are struggling to control their allowance for their daily needs while

they are away from their parents, and for some who are struggling in controlling their bad

spending habits. In relation to the statements above, we are challenge to anchor our study on

the benefits of having Financial Literacy Education as early as possible in the students’ life as a

key element on how to help improve the Talibon Polytechnic College Students spending

behavior for them to be financially more empowered and independent.

Statement of the Problem

Financial knowledge is an important part of an individual s financial well-being specially

on students who lived far from the comfort of their parents allowing them to take full

responsible of their own finances. while some students struggles to budget their allowance

responsibly ,there are also some students facing difficulties on the consequences they made

due to their bad spending habits

This study focused on determining the financial literacy and spending behavior of TPC students.

Specifically, this study aimed to answer the following question:

1. What is the profile of respondents in terms of

1.1 sex

1.2 age

1.3 department course

1.4 average monthly allowance

2. What is the level of financial literacy and spending behavior of the TPC Students?

3. Is there a significant correlation in the level student financial literacy and spending behavior
Research Design

This study focuses on the Personal Financial Literacy and Spending Behavior of the

TPC Students. The data gathering will be conducted in Talibon Polytechnic College. The

respondents will be randomly selected from each Department of the said school with a total of

75 respondents.

This study will cover the relationship between the Personal Financial Literacy and Spending

Behavior of the TPC Students. This study will answer if there is a significance for Personal

Financial Literacy to aid the Spending Problem of the TPC Students. The research instruments to

be used are questionnaires that will be distributed by the researchers.

Significance of the study

This study was conducted by the researchers in order to help and understand of knowing how

money is made, spend, and saved. Students should understand how money works on their

hands, how to spend money with their decision, and how to spend the money on the right

things. It also gives recommendation to Talibon Polytechnic College student. The result of this

study would benefit the following:

Students. This is beneficial to the student because it will help them to become independent and

self- sufficient. Thus, it empowers them with basic knowledge of investment options, financial

markets, capital Budgeting, and understanding money mitigation the danger of facing a fraud-

like situation.

Future research. This research study will help to the upcoming researchers as their reference in

seeking more information on the matters involving financial literacy on budgeting behavior.

Researchers. This study will set an asset to the researchers for showing their good qualities

which are the key for the completion of the study.

Research Member

GRACE FUENTES

NIÑA MARIE BONGATOR

MELANIE BAUTISTA