FINANCIAL LITERACY OF THE SCHOOL OF EDUCATION STUDENTS OF

AURORA STATE COLLEGE OF TECHNOLOGY

PANTALUNAN, XYLENE GRACE B.

CALDOZA, MARIANE V.
BINOMAN, JESSA G.
SUBANG, ALEXIS V.

A Thesis Presented to the faculty of School of Education,

Aurora State College of Technology, Baler Aurora,
Philippines in Partial Fulfillment of the
Requirements for the Degree

BACHELOR OF ELEMENTARY EDUCATION

February 2024
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CHAPTER I

THE PROBLEM AND ITS BACKGROUND

Introduction

Financial literacy is broadly defined as one’s ability to understand and manage its

finances. The phrase can also refer to the knowledge of financial institutions, products,

and concepts; financial skills, such as being able to compute compound interest

payments; and, more generally, financial competence in terms of money

management and financial planning, and these concepts and ideas may also coexist (Xu

and Xia, 2013). This helps to orientate in financial services and make sensible

judgements which is a vital skill in life that is necessary for people to improve their living

standards and well-being. Being financially illiterate on the other hand is the lack of

appropriate financial knowledge that may result in ill-advised financial decisions that are

detrimental to each individual as well as their household, society, and the economy as a

whole (Fenton et al., 2016).

Financial literacy, as defined by Lampa et al., (2019), refers to the ability of

consumers to understand and use various financial concepts to make decisions about

money management based on their needs or desires. It combines knowledge and

financial habits. To be considered financially literate, a consumer needs to be

knowledgeable about budgeting, saving, and spending. A sufficient level of financial

literacy leads to sound financial well-being as it helps avoid possible financial strain

or overspending (Sabri and Zakaria, 2015). Some of the benefits of being financially

literate include reduced financial stress, effective budgeting, and debt avoidance.

Therefore, there is a need for comprehensive and meticulous financial education

for consumers. Despite its renowned importance, Filipinos still do lack financial literacy.

Studies have shown adults in the Philippines have low levels of financial literacy.
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Villanueva (2021) cited the 2015 World Bank (WB) assessment on adult financial

literacy stating that Filipinos have the lowest level of financial literacy among its

neighboring countries. In the same survey, Filipino respondents correctly answered an

average of three out of seven financial literacy questions and performed poorly on

inflation, interest calculation, and basic division. In addition, a study conducted by

Indefonso and Yazon, (2020) presented data wherein more than half, which is at 52.40%

of its high school respondents, have a low level of financial literacy. The same study has

also cited the 2014 Standard and Poor’s (S&P) Financial Literacy Survey, which showed

that only 25% of Filipinos adults polled were judged to be financially literate.

This problem however is not experienced in the Philippines alone, low level of

financial literacy is a worldwide issue. In fact, the same S&P survey revealed that only

one out of three adults are financially literate. Jayaraman et al., (2018) also cited the

results of the 2015 Program for International Student Assessment (PISA) survey among

15-year-old individuals stating that financial literacy is low among youth To be

considered financially literate, a consumer needs to be knowledgeable about budgeting,

investing, and financial management. Some of the benefits of being financially literate

include reduced financial stress, effective budgeting, and debt avoidance. Therefore,

there is a need for comprehensive and meticulous financial education for

consumers.

The researchers are pursuing this research because this can help the SoED

students understand the basic financial concepts such as budgeting, saving, and

spending and will help them make informed decisions about their income and expenses.

SoED will eventually become a teacher or educator, and managing your finances

effectively is vital.

Theoretical Framework
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The study is bounded on the theory of the role of cognitive abilities on financial

literacy by Munoz et al., (2019), which claims that cognitive abilities such as numeracy,

memory, and processing speed are crucial in developing financial literacy. This theory

argues that higher cognitive abilities are associated with greater financial literacy and

also stated that improving the aforementioned cognitive abilities may lead to better

financial literacy, which in turn can lead to better financial outcomes.

Students
Profile Financial
Literacy

Figure 1. Relationship Between Students Profile and Financial Literacy

A conceptual framework was created to show the focus of the study. Presented

in Figure 1 is the goal of the research which is to discover and assess whether there is a

relationship between two variables; (1) Students Profile and (2) Financial Literacy.

A student's profile has a strong connection to their financial literacy, with key

factors being age, major, weekly allowance, and parent's monthly income. Students'

exposure to financial responsibilities tends to increase with age, and their major choice

might have an impact on both specific financial issues and future earning potential. The

weekly allowance that students receive not only molds their spending patterns but also

provides a real-world setting in which to practice financial literacy skills, such as saving

and budgeting. A student's financial status is greatly impacted by their parents' monthly
 7

income, which also affects their priorities and obstacles. All things considered, financial

literacy is shown to be an essential ability that helps students successfully manage their

personal finances, establish and work toward financial objectives, and overcome

obstacles specific to their own situations. Financial education should be a part of both

known academics and personal educational initiatives because of the connection

between financial literacy and the complicated aspects of a student's life.

Statement of the Problem

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This study aims to identify the financial literacy of students of Aurora State

College of Technology. Specifically, it seek answers to the following questions:

1. How may the profile of the respondents be described in terms of:

1.1 age,

1.2 major,

1.3 monthly income of parents,

1.4 weekly allowance,

2. How may the financial literacy of BEED students be described in terms of:

2.1 budgeting,

2.2 saving, and

2.3 spending?

3. What is the significant relationship between the students profile and financial literacy

of the SOED students?

Significance of the Study

This study is all about the financial literacy of the School of Education Students of

Aurora State College of Technology. The conduct of this study provides importance and

benefits to the following:

To the Students. As the main participants of the study, they will be more

knowledgeable about the allocation of their allowances. They will also manage to cut

costs in everyday life to better manage their budgets. Furthermore, this can raise their

awareness in the way they are handling money. This study also provides financial

knowledge thus promotes learning.

To the Teachers. It is best if teachers know how school works affect daily

budgeting and expenses of a student. Teachers can support their students not just

academically but also financially by giving projects that cost less.

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To the Parents. They are the primary source of financial support for a

student's school and personal life. This study can provide transparency of the

budgeting ability of youth in a certain age range. The research could also help parents

understand as to where do teenagers spend most and how they spend the money

and when do students spend the most. Additionally, the study is promoting early

education that is likely to start at homes regarding financial management.

To the School Administrators. Depending on the results of the study, the

school administration may be able to adjust their curriculum and insert money

management classes. This type, of course, can further help a child be more equipped for

the future, therefore raise the potential of having successful graduates. The study would

also be advocating the importance of financial literacy.

To the Researchers. Students with financial difficulties are taken into account by

the researchers. This research study might aid them in overcoming its consequences.

To the Future Researchers. It will give them a foundation or references for a

research study that is relevant to this subject. They will know more about the topic and

broaden their knowledge in the said field. They will be able to craft better questions and

engage better in other participants. They will then become more confident in their

answers and have better outcomes.

Scope and Delimitation of the Study

This study focused on the financial literacy of SOED students at ASCOT. This

involved a survey to the SOED students from 1st to 4th year.

Definition of Terms

The following terms are operationally defined according to their use in this study.
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Age refers to the amount of time that someone has lived. It can be used to

describe how old a person is, or how long something has existed.

Allowance refers to amount of money given or allotted usually at regular

intervals or purpose. In the context of children, parents may provide an allowance to

their children their miscellaneous personal spending.

Budgeting refers to a way to plan and track income and expenses, keep

spending under control, and avoid debt.

Income refers to the amount of money or its equivalent received during a period

of time in exchange for labour or services, from the sale of goods or property, or as profit

from financial investment.

Parents refer to the people who support the student for their basic needs.

Major refers to something that is significant or important in a particular field or

area.

Saving refers to a process of setting aside a portion of current income for future

use, or the accumulated in this way over a given period of time.

Spending refers to the action or practice of spending money, especially

excessive amounts of money.

Students refer to a person formally engaged in learning, especially one enrolled

in a school or college
 CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter presents the review of related literature and studies including the

ideas, finished thesis, conclusion, and others. They serve as guide of the researchers in

developing the study and help to familiarise information that are relevant to the present

study.

Age

According to Banks and Sharpe (2019) his study investigated age differences in

financial knowledge and behavior among a sample of Canadian adults aged 18-75 years

old. The findings revealed that younger adults tended to have higher levels of financial

knowledge and better financial behaviors compared to older adults. On the study of

Khang and Lee (2019) they conducted a meta-analysis of 35 studies on age and

financial literacy across different countries and found that older adults tend to have lower

levels of financial literacy compared to younger adults. The authors suggested that this

may be due to decreased cognitive abilities with aging.

However, Zhang and Liu (2018) examined the relationship between age and

financial literacy among a sample of American adults aged 18-80 years old. The results

showed that financial literacy scores decreased with increasing age, with the oldest age

group scoring significantly lower than the youngest age group. According to Hirst and

Tucker (2020) in his study explored how age affects financial decision-making among a

sample of British adults aged 18-80 years old. The results showed that older adults were

more likely to make impulsive financial decisions due to cognitive decline, while younger

adults were more likely to engage in risky financial behaviors due to lack of experience.
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Older adults tend to have higher levels of financial literacy compared to younger

adults (Kirchheimer, 2017). This may be due to the fact that older adults have had more

time to accumulate wealth and experience with managing their finances. According to

Fang and Zinman 2019 in his study investigated age differences in financial knowledge

and behavior among a sample of Canadian adults aged 18-75 years old. The findings

revealed that younger adults tended to score higher on measures of financial knowledge

and engage in more financial planning activities than older adults.

Major

There are four factors which most commonly influence what a college student

chooses to major in (Dudley et al., 2015). They are expectations regarding gainful

employment, hope of a more promising career, financial rewards, and personal interest.

Three of the four most common determinants are economic. Among business majors,

the two most common factors affecting students' decisions are employment opportunities

and higher starting salaries. Friends and family also influence a student's choice of

major, but Kim et al., 2017 found parental influence and influence of friends were two of

the lowest reported reasons for choosing a major. Interestingly, however, accounting

majors and management majors reported more parental influence on their choice of

major than did finance, marketing, or MIS majors. Findings from this study also suggest

that expectations surrounding income and personal interest in a business career seem

to be the primary factors influencing the choices of business students. Kim et al., 2018

concluded that more research should be conducted to determine how someone decides

to pursue a business major rather than another kind of major. According to Le and Lee

2018 in his study showed that financial literacy is positively related to financial well-

being, as individuals with higher levels of financial literacy tend to have better financial

outcomes.
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Students who are non-business majors, female, under 30 years of age, with

minimal work experience, and members of a lower class all show lower levels of

financial literacy and tend to hold more wrong opinions which could affect their

functioning in the world (Chen and Volpe 2019).None of the students involved in the

study chose their majors in a vacuum. It is possible that their levels of financial literacy

may have affected the majors they chose. Many college majors prepare students for

particular careers. It is often possible to predict a worker's yearly income based upon

what field they are in. If given the choice, most students will select careers which offer a

higher, rather than lower, lifetime earning potential (Berger, 2018). Of course, to make

such a distinction, an individual must have knowledge as to the relative earning

potentials of various careers, business majors made significantly more than education

majors and saw more growth in yearly income over the course of their careers.

According to Kho and Chang (2013) his study found that investors with higher

levels of financial literacy tend to have better investment knowledge and make more

profitable investment decisions while Cohen and Zyla (2017) found that individuals with

lower levels of financial literacy are more likely to accumulate credit card debt and

struggle with debt management.

Monthly Income

Chua and Tan (2018) study looked into the connection between low-income

Filipino families' financial welfare and financial literacy. The results showed a substantial

correlation between financial literacy and higher financial health, which included better

saving practices and a lower reliance on unofficial credit sources. In his research, (Lopez

and Panganiban 2017) reported that he used information from the Philippine Integrated

Survey on Family and Employment to investigate the connection between financial

literacy and household spending habits in the Philippines. The findings indicated that
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better budgeting techniques and lower levels of household debt were linked to higher

financial literacy levels. De Leon and Dumagan (2016) Using information from the

Philippine National Demographic and Health Survey, this study determined the factors

influencing financial literacy in Filipino households. The findings demonstrated that

financial literacy was significantly predicted by variables like income, education, and

access to financial services. Yusof (2017) This study evaluated the Philippines' present

situation regarding financial inclusion and education and offered suggestions for further

initiatives. Even though the nation has made efforts to encourage financial education,

the authors pointed out that more work has to be done to raise financial literacy among

under-served populations.

A study by Dorjana et al., (2015) showed different family income level will also

influence students’ saving and spending behaviors. They found that students from lower

family income level are more likely to have a positive financial attitude than others. From

the study, majority of the students informed that their studies and living cost are fully

sponsored by their family. This may result in inability for them to understand the value of

working for money. Students are not expected to prioritize their saving and spending

behaviors, monitoring expenses and cultivating a monthly budget. Thus, students with

high parental income tend to spend money, do not bother on financial matters and

unaware of precautionary savings.

Weekly Allowance

Weekly allowances have been shown to increase children's knowledge of

personal finance concepts, such as saving, investing, and credit (Hamnett, 2019). By

providing children with regular opportunities to practice these concepts, parents can help

them build a strong foundation for future financial success. Weekly allowances can

improve financial literacy by teaching children how to manage money (Kirby and
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Kornacki, 2017). When children receive a set amount of money each week, they learn

how to budget, save, and make purchasing decisions. This helps them develop

important financial skills that will benefit them throughout their lives.

Research has also found that children who receive weekly allowances tend to be

more financially responsible than those who do not (Lusardi, 2013). They are more likely

to save a portion of their allowance, avoid debt, and make better financial decisions

overall. Another study found that weekly allowances can help children develop problem-

solving skills related to money management (Mueller, 2017). As they encounter different

financial situations, children learn how to apply what they have learned about budgeting,

saving, and spending. This helps them become more confident and capable decision-

makers when it comes to managing their own finances. Teaching financial literacy to

children at a young age ensures that they have a better understanding of how money

works, allowing them to make better decisions as they grow up. Teaching this subject

will help children improve their ability to plan, save, spend, donate, and invest

(Washington, 2021). As a result, students will learn to save money and avoid

unnecessary expenses in their daily lives. As a result, students will develop a culture of

reusing their belongings and spending wisely on other things. Meanwhile, financial

literacy will encourage students to earn money for housework.

Budgeting

Good money management skills are the process of budgeting, saving, investing,

spending the cash usage. Though it is not something we are born with, they are

acquired over one's lifetime through many successes and some failures as well "An

allowance is not an entitlement or a salary. It is a tool for teaching children how to

manage money" Allowance was an amount of money given. It was a need for students

where they can save up for their wants or daily needs. Allowance also serves as salary
 16

that you need to divide for expenses at school as well as the students' needs. (Godfrey,

2013).

Allowance is an amount of money given. It is a need for teenagers where they

can save up for their wants or daily needs. Its history concerns the development means

of carrying out transactions involving a medium of exchange. Money is any clearly

identifiable object of value that is generally accepted as payment. There is a motion that

is working on teaching basic personal finances to high school students before they

graduate. A budget is clearly the key to succeeding financially. Students think that a way

to pay for college is student loans, but there are other options like scholarships, financial

aid or work options. Some can take investing classes where students can learn the

process of investing and budgeting. As a student there are also other things to spend on,

it can be wants or needs not just school supplies. Most people recommend parents to

have a long-term planning for their teen (Caldwell, 2017).

In addition, according to Caldwell (2019), budgeting was one of the biggest keys

to managing your money. Many people were often turned off by the simple term budget.

They associate it with restriction s and a lot of hassle and headaches. They may feel like

they were too poor to budget or have other budgeting excuses. Through budgeting, a

student makes decision on how to budget their money rather spend to their daily needs

in academic purposes. Decision making can help students to budget and manage their

money or allowance. According to Singh et al. (2020), their study of student budgeting

and spending behavior depicts a clear picture: more than half of the students in 138

universities in Delhi and Mumbai in India are living on a relatively limited budget to pay

their bills and support their lifestyle, which often goes unmaintained. The majority of

these students' spending is on their lifestyle and entertainment, which impacts their

allowance budgeting. The researchers discovered that students consider dining out to be

their most unavoidable expense, preceded by movies. However, an intriguing finding

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was also revealed: when faced with a budget deficit, more students reduced their daily

expenditure than those who asked their parents for money. Students also prefer to save

a portion of their monthly allowance, usually in cash or in the bank,demonstrating good

budgeting habits.

Saving

Saving is recognized as positive financial behavior that leads to families'

improved well-being in the short and long term (Robb, 2014). Savings facilitate balanced

consumption throughout individuals life cycle and maintain purchasing power regardless

of income shocks due to unemployment, disability, unanticipated medical expenses or

the costs entailed by purchasing a home or car (Heckman, 2017). Saving refers to the

excess cash an individual is in possession of after expenses have been subtracted, this

action is done with the intention to utilize cash for future expenditures In addition,

various studies revealed that knowledge and behavior on investment and savings are

positively associated with an individual's level of financial literacy (Britt and Grable,

2021).The relationship between financial literacy and saving behavior across different

countries and found that higher levels of financial literacy were associated with better

saving habits. The authors suggested that improving financial literacy could lead to

increased savings rates (Khang and Lee, 2019).

Saving behavior of people has always been in the focus of attention both on the

part of scholars and policy-makers. Over the past two centuries, there has been a

thorough research on the subject matter. And, as of now, we know that the propensity to

save is influenced by a great deal of different factors, including such exotic ones as the

language that the person speaks (Chen, 2013). The need for students to manage money

wisely is, therefore critical. The federal government, the parents, the higher learning

institutions, and the students are benefits from the wise money management behavior.
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Images related to saving behavior among university students shape societies

impressions about the future leader, commitment and responsibility to public money

(Chambers, 2015).

Financial literacy has a relationship, both directly and indirectly, with saving

behavior. Indirect effects are mediated through saving intention and attitude towards

saving. The direct relationship between the variable's financial literacy, saving intention

and attitude towards saving has a positive relationship with saving behavior. This proves

that financial literacy, saving intention, and attitude towards saving has a very important

role to encourage saving behavior. The positive relationship between financial literacy

and saving behavior will be encouraged by increasing the ability to control financial

statements since this indicator provides the largest contribution from the financial literacy

variable. Saving intention mediates the relationship between financial literacy with saving

behavior proves that the saving intention variable will strengthen the relationship of

financial literacy with saving behavior. Saving intention is a strong determination to save

(Jamal et al., 2015). The magnitude of this power depends on (a) saving for a purpose,

(b) saving for risk, and (c) saving barrier (Widyastuti et al., 2016).

Spending

Research has shown that emotions play a significant role in spending behavior.

For instance, when people experience positive emotions such as happiness or

excitement, they are more likely to engage in impulsive and unplanned purchases (Kirby

and Runnels, 2016). On the other hand, negative emotions such as anxiety or anger can

lead to more cautious and deliberate spending decisions (Hartmann and Zhang, 2017).

Our perception of value can significantly affect our spending behavior. If something is

perceived as valuable or necessary, we are more likely to spend money on it (Schneider,

2015). Conversely, if something is seen as less valuable or unnecessary, we may be

 16

less inclined to spend money on it. Cognitive biases can also impact spending decisions.

The confirmation bias, for example, can lead us to selectively seek out information that

confirms our existing beliefs about a product or service, rather than considering

alternative perspectives (Lopes and Loomes, 2017). Impulsive spending can lead to

financial difficulties, as it often involves making purchases without careful consideration

or planning. A study published in the Journal of Marketing found that impulse buying is

more common among younger consumers, particularly those aged between 18-24 (Ham

and Keller, 2017).

Spending refers to the utilization of monetary resources in trading for products or

services (Inocian, 2020). In this study, spending is a component of financial literacy as it

is a necessity to make purchases that aligns with an appropriate spending plan and

retain discipline to the plans created (Dwiastanti, 2015), this is supported by a statement

made by Inocian (2020) stating that “spending of money comes with a purpose,” which

she elaborates to be substantially observable and well- defined in order prevent

underspending or overspending. Strategies for reducing impulsive spending include

setting shopping goals, using price comparison tools, and practicing delayed

gratification. Andreassen, et al., (2017) To manage spending effectively in financial

problems, several strategies can be employed. Budgeting and financial planning

techniques help individuals prioritize needs over wants. Spending and consumptive

behavior which is a function of the financial literacy level of an individual employee

seems to have received less attention in the empirical literature. However, recently,

researchers Andriani and Nugraha, (2018) have explored this subject area. The former

found out that poor spending habit occasioned by lack of financial management skills

creates problems for individuals in the future.

 CHAPTER III

METHODOLOGY

This chapter will discuss the methods of research used by the researchers in

order to obtain and treat the data that will be used to conduct the study. It deals with the

research design, locale of the study, respondents of the study, sampling procedure, data

gathering procedure, research instrument, statistical analysis of the data, and scoring

method.

Research Method

The researchers will use the quantitative-inferential research method. This

particularly correlational method of Pearsons r. A correlational study seeks to ascertain

relationships between two or more variables. Simply put, it examines whether an

increase or decrease in one variable corresponds to an increase or decrease in another

variable. Findings from a correlational study enable researchers to determine whether or

not-and the degree to which-two variables change together. In a positive correlation, two

variables change together in the same direction (Tan, 2014).

Locale of the Study

The study will be conducted at Aurora State College of Technology. This place

was selected to identify the financial literacy. Specifically in the School of Education

Department A.Y 2023-2024.

Respondents of the Study

The research focuses on collecting data from first to fourth-year students in the

School of Education (SOED) at ASCOT. A total of 400 respondents will be surveyed to

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gather insights. The collected data will be analyzed to draw conclusions and insights

aligned with the study's objectives.

Distribution of the Respondents

Major Sample Size Stratified Sample Size

BEED 201 100

BSED MATH 58 29
BSED SCIENCE 81 40
BSED SOCIAL STUDIES 65 32
BSED ENGLISH 137 68
BSED FILIPINO 134 67
BTLED HE 80 40
BTLED ICT 48 24

TOTAL 804 400

Sampling Procedure

The sample size of the respondents (804) will be determined using proportionate

stratified random sampling. Proportional stratified random sampling involves taking

random samples from stratified groups, in proportion to the population.

Data Gathering Procedures

The researchers construct a questionnaire checklist which is validated by the

adviser, and then the questionnaire checklists will be distributed. The researchers will

conduct the research at Aurora State College of Technology through survey

questionnaires because of the advantages of the survey method. The researchers will

explain to the respondents the importance of their response to the study. The

researchers will clarify some terms for the respondents so that they can answer the

questionnaire with full knowledge of their responsibility as the subject of the study.

The researchers will request that the respondents answer with all honesty. In this

study, since the researchers goal is to determine the financial literacy of the SOED

students, they believe that this method is the most appropriate in choosing the sample
 21

for the research. After the respondents answer the questionnaire, the researchers will

collect and tally the data for interpretation. The researchers will ask a statistician to help

in determining the appropriate statistical tools to use and in interpreting the data. Based

on the data, the researchers will come up with conclusions and recommendations for

this study.

Research Instrument

The researchers will use a survey questionnaire to conduct the research. The

questionnaire is a set of carefully arranged questions prepared to be answered by a

group of people and designed to collect facts and information. The first part of the

questionnaire is about the questions to be answered by the respondent about their

profile in terms of age, major, general weighted average,monthly income of parents, and

weekly allowance. Lastly, the financial literacy of students in terms of budgeting, saving,

and spending.

In the context of financial literacy, a rating scale using 4 for "always," 3 for

"often," 2 for "sometimes," and 1 for "never" can be a useful tool to assess an

individual's proficiency in various financial skills and behaviors.

A score of four reflects high financial literacy, with consistent excellence in

budgeting, saving, spending, and wise financial decision-making. A three indicates

regular adherence to responsible financial habits and solid literacy, showcasing good

judgment and overall positive behaviors. A score of two suggests occasional use of

financial knowledge, with proficiency in some areas despite sporadic application. A one

signals poor financial literacy, as the individual rarely or never demonstrates

understanding or application of basic money management concepts, potentially

struggling with spending, saving, and budgeting.

Data Analysis
 21

The researchers will analyze and interpret the data being gathered through the

use of Pearsons r. The pearson correlation measures the strength of the linear

relationship between two variables. With the spectrum of financial literacy, individuals

failing within the range of 3.28 to 4.00 exhibit a commendable grasp of financial

concepts, demonstrating high financial literacy. Those scoring between 2.56 and 3.25

embody a moderate level of financial literacy, showcasing a balanced understanding of

financial principles. Individuals in the bracket of 1.76 to 2.25 possess a lower level of

financial literacy, while those scoring between 1.1 and 1.75 represent individuals with

very low financial literacy. indicating a significant need for further education and

guidance in financial matters.

By using this scale, individuals and educators can identify specific areas of

strength and weakness in financial literacy, tailor educational efforts accordingly, and

track improvements over time. It provides a clear framework for assessing and

addressing financial literacy skills on a spectrum from consistently proficient to areas

requiring more attention and development.

I. Rating Scale and Verbal Descriptor

Rating Scale Verbal Descriptor

4 Always
3 Often
2 Sometimes
1 Never

II. Interval Scale and Verbal Interpretation

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Interval Scale Verbal Interpretation

3.28 - 4.00 High financial literacy

2.56 - 3.25 Moderate financial literacy
1.76 - 2.25 Low financial literacy
1.1 - 1.75 Very low financial literacy
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