FINANCIAL BEHAVIOR AND FINANCIAL WELL-BEING

AMONG HIGH-VALUE CROPS FARMERS IN MUNICIPALITY OF MABINI,

DAVAO DE ORO

A Thesis
Presented to
The Thesis Committee
Department of Accounting Education
UM Tagum College, Tagum City

In Partial Fulfillment
of the Requirements for the Degree of
Bachelor of Science in Accountancy

AUGUSTINE B. PASTOR
JOHN NOEL H. TAGUD
RODKEN J. VALLENTE

March 2023
 INTRODUCTION

While everyone is trying to recover financially from the aftermath of

COVID-19, interests towards financial well-being are thriving rapidly.

Unfortunately, despite previous efforts, governments and researchers around

the world are still in quest of understanding financial well-being and have

recognized the urgency to address the issue with the goal to formulate

national strategies that could alleviate the financial well-being of their people

(Mahendru 2021, p.46). In terms of the agricultural industry, however,

research shows that during the transition of farmers to retirement, they face

several barriers and stressors in planning their retirement which if left

disregarded, could bring significant implications to their health and wellbeing

(Fletcher et al 2023, p.56). On top of that, farmers are also vulnerable to

financial pressure as they are most likely to experience insufficient/irregular

cash flow but high input costs, taxes, and debt (Daghagh et al 2019, p.49).

This actively demonstrates that people including farmers face a financial

strain, which according to Zia-ur-Rehman et al (2021, p.69), is caused by

unhealthy financial well-being that affects the individual, their family, and

society.

Considering the constant growth of the world’s population, people of all

statuses need to plan their personal finances to be able to have increased

financial well-being both in the present and future, especially retirement

(Riitsalu and Murakas 2019, p.2). Study of Sabri et al (2020, p.40) claimed

that stability in financial well-being is essential because it influences the

efficiency of an organization. They clarified that factors of financial well-being

such as wise expenditure pattern and savings account balance strengthens

the employee’s mental and physical well-being which helps them to perform

their duties and enhance the work environment at large. Similarly, the study of

Iannello et al (2021, p. 35) shows the importance of improving one’s financial

well-being since it is related or contributes to the overall subjective and

psychological well-being.

This study is anchored in the Cognitive Developmental Theory of

Cartwright (2001, p.214) which suggests that identifying the most appropriate

behavior that matches the current knowledge, experiences and beliefs of an

individual will contribute to their development. The study of Guptan et al

(2021, p.5) utilized the theory to determine and understand the effect of

financial behavior towards the financial well-being among working adults.

Also, the study of Selvia et al (2020, p.1) also determined that financial

behavior along with financial knowledge and financial inclusion have a strong

positive effect on financial well-being. Furthermore, the result obtained by

Younas et al (2019, p.1) in their study shows the strong impact of financial

behavior towards financial well-being. It is deemed to be stronger than the

impact of other financial variables used in their study such as financial literacy

and self-control.

In fact, “it is necessary to ensure a better orientation about financial

behavior towards improving financial well-being” (Rahman et al 2021, p.12).

They have concluded that a high degree of financial behavior is the key

predictor of increased financial well-being that can be done through

maintaining a balance between monthly income and expenses, paying bills on

time and considering savings buffers. However, based on the informal

interview performed by the researchers among some farmers in Mabini,

Davao de Oro, paying bills on time and saving are some of their challenges.

They also added that they are having a hard time in matching their income to

their expenditures which pushes them to sometimes disregard this dilemma.

This might result in decreased financial well-being because financial behavior

is essential in identifying the person’s capability in improving their financial

well-being (Megananda & Faturohman 2022, p.214). Hence, the conduct of

this study is necessary to understand the possible implications of bad financial

behavior towards the financial well-being of the farmers in Mabini, Davao de

Oro.

Given that there is only limited understanding on how important it is for

farmers to have increased financial well-being, this study aims to determine

the domains of financial behavior that significantly influence financial well-

being of high-value crops farmers in Mabini, Davao de Oro. Therefore, the

future success of this research endeavor will benefit the high-value crops

farmers by contributing knowledge about good financial behavior that could

possibly affect their financial well-being. The Department of Agriculture and

Local Government Unit could somehow ponder ideas in developing programs

with the goal to improve the financial well-being of farmers. Since financial

well-being can influence efficiency, it might also increase the productivity of

the farmers which greatly affects the economy. Moreover, as the increasing

attention towards the subject of financial well-being continues, this study will

contribute ideas and relevant sources to the interested students and other

researchers. Specifically, researchers of this study aim to assess the level of

financial behavior in terms of cash, credit and saving, and the level of financial
well-being in terms of buying behavior, perception of current finances,

perception of financial future and attitude toward long term care insurance of

high-value crops farmers in Mabini, Davao de Oro. Also, to ascertain if there

is a significant relationship between financial behavior and financial well-

being.

Therefore, the null hypothesis of the study will be measured at 0.05

level of significant correlation, which will state that there is no significant

relationship between financial behavior and financial well-being. Lastly, there

are no domains of financial behavior that have a significant influence on

financial well-being.
 METHOD

Research Participants

Farmers who are involved in growing High-Value Crops such as

cardava, lanzones and durian will receive the survey questionnaire. These

three (3) crops were picked based on the highest number of population of

farmers out of 11 High-Value Crops considered and listed in the data

gathered from the HVCDP Coordinator of the Municipality of Mabini Davao de

Oro. Since it has the greatest number of farmers, they are the crops that are

most beneficial to the Local Government Unit (LGU) and is significant

because it gives livelihood to citizens. A sample size of 354 respondents

were acquired through the usage of Raosoft Online Calculator out of the

original population of 4,488. Then, 10% of the sample size is added to the 354

total sample size as allowance with a total of 390 participants. The sample

size for each of the High-Value Crops (cardava, lanzones and durian) was

prorated once more in twelve (12) barangays to identify how many

participants will be selected in each barangay for each of the High-Value

Crops. The researchers used random sampling method to select the

participants who will take part in the survey after having the total number of

participants in each barangay for each of the High-Value Crops. In order to

ensure there would be no bias and no repeating participant records in the

survey, the researchers used research randomizer to determine the precise

number of each participant who would be interviewed from the Department of

Agriculture master list. The participants, who have been farming for three

years or more and are of middle age, are identified since they are listed in the

data collected by the Department of Agriculture in Mabini Davao De Oro.

Farmers who aren’t residing in the said area of interest will be excluded.

Simple random sampling method will be utilized as the sampling method to

gather the data. With simple random selection, each person in a population

has an equal probability of being selected as a respondent (Thomas 2020, p.

6).

Research Material and Instrument

To be able to collect the data necessary to back up the study, the

researchers will use adapted and modified research questionnaires. The

adapted and modified research questionnaire used for the dependent variable

was acquired from the research of Malone et al (2009, p.70). While the

adapted and modified research questionnaire used for the independent

variable was acquired from the research of Xiao et al (2008, p.60). Both the

survey questionnaire for independent and dependent variables incorporates

or adapts the Five-Point Likert scale.

Research Design and Procedure

This study employs quantitative non-experimental research design

utilizing correlational techniques to measure and examine the association of

financial behavior and financial wellbeing among farmers. Quantitative data

includes statistical summaries with correlations, comparisons of means, and

statistical significance of findings and is based on accurate measurements

utilizing organized and validated data-collection tools (Johnson et al. 2008, p.

34). Moreover, correlational quantitative research study determines the

relationship between variables. A correlation shows how strong the direction

of the relationship between two variables are, whether the correlation can be

positive or negative.

The researchers will inquire the following before starting the data

collection, by a formal letter signed by the research coordinator, dean, and

research adviser, approval is granted to carry out the study and request the

subject's involvement. The letters will be used by the researchers to conduct a

study on the responders by sending out printed survey questionnaires after

gaining approval. The respondents' free time was taken into consideration

when administering the survey and the data provided from the respondents

during the survey will be assured and kept confidential. The researchers will

personally hand questionnaires to the participants. The survey participants will

then be asked to respond by checking the appropriate box on the survey form,

and the researchers will then enter those responses into Google Forms.

Eventually, the data gathered from the survey will be collected and statistically

analyzed by the researchers. Lastly, the study’s statistical tool will be utilizing

“mean” to ascertain the level of financial behavior and financial well-being.

Furthermore, this study will be utilizing “pearson-r” as a statistical tool to

determine the significant relationship between variables. And “regression

analysis” will be used as the statistical tool to identify the most pertinent
indicators that may contribute to the behavior and well-being financially of

farmers in Mabini, Davao del Oro.

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