Impact of Different Factors To The Level of Financial Literacy Among Senior Students in Cataingan - GROUP 3

Division of Masbate
Cc. Cataingan National High School
CATAINGAN, MASBATE
IMPACT OF DIFFERENT FACTORS TO
THE LEVEL OF FINANCIAL LITERACY
AMONG SENIOR STUDENTS IN
CATAINGAN
A Research Proposal
Presented to the
Faculty of Cataingan National High School
In Partial Fulfillment
of the Requirements for the
SENIOR HIGH SCHOOL PRACTICAL RESEARCH 2
RESEARCHERS:
Kerby A. Mayordomo Jeneva Marie H.

Mark Jhon Paul B. Optana
Centino Leah V. Pagunsan
Jujie A. Ancajas Rose Jane Y. Romeo
Aires E. Caleza
PRACTICAL RESEARCH 1 1
Impact of Different Factors to the Level of Financial Literacy Among Senior Students in Cataingan
Academic Performance S.Y 2022-2023
TABLE OF CONTENTS
Chapter I – Introductions
Background of the Study………………………………………………………………….. 3
Significance of the Study………………………………………………………………….. 6
Statement of the Problem……………………………………………………………….... 7
Hypothesis…………………………………………………………………………………. 8
Scope and Delimitation…………………………………………………………………… 9
Conceptual Framework ………………………………………………………………......10
Definition of Terms …………………………………………………………………….....11
Chapter II – Review of Related Literature
Foreign Literature……………………………………………………………………..... 13
Foreign Studies………………………………………………………………………...... 15
Local Literature………………………………………………………………………..... 17
Local Studies…………………………………………………………………………......19
Bibliography ……………………………………………………………………............ 21
CHAPTER I
THE PROBLEM AND ITS BACKGROUND
I. INTRODUCTION
BACKGROUND OF THE STUDY
Financial literacy is one of our most pressing concerns as expenditures increase. Financial
literacy is a skill that individuals should be able to master, as it is a necessary tool for daily living
(Philippas & Avdoulas, 2019). It is highly significant for our senior students to know how to
manage their money due to many factors that may affect their competencies in managing money.
Financial literacy is a crucial topic for consumers and in particular is essential for young people
(Lusardi,2015). In India, the spending and savings of youth have changed drastically over the
past few years because of westernization and higher spending power (Birari, & Patil, 2014). A
study has shown that youth spend more money on shopping and especially on branded items.
(Hasan,Subhani, & Osman. 2012). Handling money seems easy but it takes a lot of effort to do
so. Students learning to manage their money is a vital process during their maturing age.
There are so called factors that influences our financial management skills that we have to
deal with. Having proper knowledge and experiences in monetary management we can easily
handle the difficulties in this matter. Studying how financial literate a person is will be able to
formulate better outcomes and suggestions for us to improve the level of being financially
literate in the society. In such a way that we can control and limit our actions in spending money
uncontrollably.
Students learn how to save their allowance as they grow and meet different requirements in
school as well as things they want to buy for their own. With their young age and lack of
experience, it is hard for college students to budget their allowance on their own (De Guzman et
al., 2012). Westwood College from the United States conducted a research; the said research
found out that most college students spend the at least 60% of their allowance in transportation,
books, and supplies while the remaining 40% is spent on optional activities – entertainment,
apparel and services, travel and vacation.
As financial markets and products become increasingly complex in ever-growing developed
and emerging economies, new and updated knowledge of financial matters is necessary for
individuals and households to manage their resources (Mitchell, & Lusardi, 2011). As the
expenses keep growing, the more students struggle to keep their money manageable that can
leads to financially illiteracy.
SIGNIFICANCE OF THE STUDY
The research believes that this study will not only yield data that will help in
strengthening the knowledge of the learners but will also provide a proper guide to make
better choices in dealing with monetary matters. Financial literacy is not only the
knowledge and understanding of financial concepts and risks but also the skills,
motivations, and confidence to apply such knowledge and understanding in order to make
effective decisions across a range of financial context, to improve the financial well-
being of student and to enable participation in economic life. Conducting about financial
literacy can help both students and researchers to be aware and to develop their skills of
managing money and budgeting
• Students - as the main participants in the study will develop efficient management
skills and knowledge to help them build strong money habits early on and avoid many
of the mistakes that lead to lifelong money struggles. Students who are financially
literate, are likely to develop positive financial decisions.
• Parents - they will be able to budget everything in giving allowances. They will
better understand where their children spend most of their money and can guide them
through the process of spending money as financial management starts at home
• Teachers - can help in giving proper information towards financial management by
providing projects that are less costly.
• Schools - may be able to adjust their curriculum requirements that suits best for the
students and promote financial literacy.
• Future researchers - can broaden their knowledge in that particular field and use the
findings of the study as a basis in formulating their financial education plans for the
ensuing year. They will be able to formulate better outcomes and questions in
advance to ensure that there will be no issues or challenges during participation. It
would help them to better analyst and can be helpful as a future references for more
studies in the future.
STATEMENT OF THE PROBLEM
This study aims to determine the impacts of the different factors on to the level of financial
literacy among senior high school students in Cataingan National High School, Academic Year
2022-2023.
Specifically, this study will answer the following questions:
1. What is the profile of the participants in terms of:
1.1 Gender
1.2 Age
1.3 Year Level
1.4 Average monthly allowance
I.3 Parents’ monthly average income
2. What is the level of financial literacy of senior high school students as a whole and in the
following areas:
A. Spending Habits
B. Personal Savings Habit
C. Borrowing Habits
3. Why financial literacy important for senior high school students?
4. Is there a significant difference in the factors that influence the students when grouped
according to profile variables?
HYPOTHESIS
This study aim to determine the impact of different factors to the level of financial
literacy among student in Cataingan National High School. The researchers formulated a Null
and Alternative Hypothesis to serve as a guide for the research study.
 The null hypothesis (H0) in this research tells that there is no significant impact
of different factors on the level of financial literacy among student
 The alternative hypothesis (Ha) tells that there is a significant impact of different
factors on the level of financial literacy among student.
SCOPE AND DELIMITATION
This research gives focus on testing the level of financial literacy among student and to
develop efficient management skills on handling money. This study is only limited to the Senior
High School Students in Cataingan National High School. It will not involve anyone from junior
high school student or other departments. The objectives were limited to evaluating the financial
literacy among student, determining the impact of different factors and analyzing the capabilities
of the students in terms of managing the effects of these factors. A limitation of the study is the
fact that the students researcher cannot assure that the respondents will participate in answering
the questions with 100% honesty despite being encouraged, so the researchers conducted a
survey to those students who can accommodate the request and willing to participate. The
methodology used was through online survey forms like Google Forms as a tool in gathering
data and respondents were selected through purposive sampling method. The period of the study
was also limited to School Year, 2022-2023.
CONCEPTUAL FRAMEWORK
Impact of Different Factors to the Level of

Financial Literacy Among Senior Students
Factors that Influence Financial literacy

• Spending Habits
Personal and Family Background • Personal Saving Habits
• gender • Borrowing Habits
• age
• year level
• average monthly allowance
• parents monthly average income
Figure 1. Conceptual Framework
The level of financial literacy among Cataingan National High School students will be
described in the research in terms of independent variables (personal and family background and
the factors that influence the financial literacy). Personal and family background has five sub-
variables: (a) gender; (b) age; (c) year level, (d) average monthly allowance; and (e) parents
monthly average income. Factors that influence financial literacy also has three sub-variables: (a)
spending habits; (b) personal savings habit; and (c) borrowing habits. In this research, this
variable is seen to posses a hypothesized relationship with Senior High School students financial
literacy. This hypothesized relationship is represented by two-branched arrow with its head
connecting all the (independent) sub-variables to the dependent variable.
This conceptual framework aims to show the hypothesized relationship between the two
variables in the study. A double arrow line is placed to represent the one-directional relationship
between the Independent and the Dependent variable.
DEFINITION OF TERMS
The following are the terms used by the researchers in the study to have parallel
understanding for the readers either operational or conceptual:
 Spending Habits – is the repeated and sometimes involuntary routines and practices you
have around using money to purchase experiences, services, and things.
 Personal Saving Habits – are the money that you have saved, especially in a bank or a
building society ; refers to the money that a person has left over after they subtract out
their consumer spending from their disposable income over a given time period.
 Borrowing Habits – to get or receive something from someone with the intention of
giving it back after a period of time
 Financial Literacy – The confident understanding of concepts including saving,
investing and debts that leads to an overall sense of financial well-being and self-trust.
(www.experian.com)
 Financial Markets – A place that provides avenue for the sale and purchase of assets
such as stocks, bonds, foreign exchange and derivatives. (www.cfi.com)
 Financial Planning – The long-term method of managing your finances so you can
achieve your goals and dreams, while at the same time negotiating the financial barriers.
(www.fpamn.org)
 Financial Concepts – A quick reference guide, a way to further your education, or as a
resource to train others.(www.business-literacy.com)
CHAPTER II
II. REVIEW OF RELATED LITERATURE
This section contains a summary of the related literature from both local and foreign
sources. This exemplifies the synthesis of the art as evidenced by studies, dissertations, and
journals, and is meant to acquaint researchers with the literature surrounding the study.
Foreign Literature
Financialization and the rapid advances in information technology throughout the world have
created a more complex and dynamic financial sector, in terms of both products and systems
(Marcolin and Abraham 2006). Individuals in low, middle, and high income countries are
increasingly engaging with this financialized world and this has made money management more
complex generally while also opening people up to new vulnerabilities such as risky financial
transactions, misleading information, fraud and so on. Younger generations today are in a
particularly challenging situation.
Jiang and Dunn (2013) revealed that young people had higher levels of debt, spent more
money on credit cards, and tended to pay of bills relatively slowly compared to the previous
generation at the same stage of life due to stagnating wages, low incomes, and paying of
education fees. Furthermore, Jiang and Dunn (2013) point to easier access to credit and more
permissive attitudes to debt as potentially contributing to young people’s financial problems.
University or college students are a particularly interesting group to study in relation to financial
capability issues. Financial literacy is alarmingly affected by demographic characteristics such as
age, education level, gender, parents, peers etc. Several academic works have been conducted
across countries to confirm it. Literature has shown that there is a direct correlation between a
person’s age and his or her personal finance understanding. The personal finance understanding
of children and the youth tend to be low compared to the old age.
The acquisition of financial literacy therefore tends to increase with age and experience.
Hogarth and Hilgert (2002) reveals that students within the ages 18 – 24 years are those that are
financially least knowledgeable whilst those within the ages 36 – 40 years are more likely to
budget their expenditure. A person’s education level has consistently found to have a direct
effect on person finance. The level of education tends to have a positive relationship with
personal finance. However, there is a contraction as many university graduates have proven to
have inadequate personal finance (Van Rooiji, Lusardi and Alessie, 2007). This implies that
having the University education does not necessarily mean that one has high financial autonomy.
Individuals who are illiterate have proven not to appreciate the basic financial concepts such as
risk diversification (Lusardi and Mitchell 2006).
Foreign Studies
Several studies suggest that support to increase financial knowledge, skills,
attitudes, and behavior (collectively referred to as ‘financial capability’–see Kempson and
Collard 2006; Atkinson et al. 2006) can be provided through education (for example, Shim et al.
2009; Sekita 2011; Klapper et al. 2013; Xiao and O’Neill 2016).
A Nellie May report (2005) indicated that 56% of undergraduate college students
have four or more credit cards in their final year and that these students have an average balance
of close to $3,000. Only 21% of the undergraduates with credit cards pay their balances in full
each month, and 11% paid less than the minimum amount. The average balance was over $999
for 49% of the students while 7% had balances greater than $7,000. Several researchers have
reported that poor financial decisions hurt productivity in the workplace (Garman, Kim,
Kratzner, & Brunson, 1999; Garman, Leech, & Grable, 1996; Joo & Grable, 2000; Kim,
Bagwell, & Garman; Kim & Garman, 2004). Volpe, Chen, and Liu (2006) surveyed corporate
benefit administrators who cited basic personal finance as an important area in which employee
knowledge is deficient and recommended educational programs that focus on improving basic
personal finance knowledge.
However, it was advised that more observations are needed in order to support a
deeper understanding about suitable programmes (U.S. Department of the Treasury 2015). A
study by Peng et al. (2007) showed that financial education delivered during college contributes
positively and significantly to financial knowledge about investment patterns.
However, contrary results were recorded by Mandell and Klein (2009) who did
not find any difference in term of financial literacy and behaviour between those who took
personal finance classes and those who had not. An experimental study by Cole et al. (2009) also
found that financial education had no significant impact in increasing the use of bank/savings
account. The study recorded that financial training only had a modest impact among those with
low level of education, while it had no effect among the other groups/general population.
Local Literature
The Philippines is one of the fastest growing economies in the region and at this point,
financial Literacy is very important. We need to help educate students and other individuals to
understand basic money management, financial planning, and investments so that we can
empower a larger portion of the population to be able to provide for themselves and their
families and invest in the future.
Learning financial literacy is a promising way to improve financial capacity for
todays young people (Duquette, 2018). Students tend not to know what to value first, and they
tend to spend it on things that are not important. Financial planning teaches individuals to be
responsible when it comes to their finances, and instills the discipline needed in order to keep
track of their financial goals. Financial planning involves educating Filipinos on the different
types of goals that they should set: short-term, medium-term, and long-term. Short-term goals
involve monthly living expenses that need to be paid, or the person’s basic needs, including the
setting-up of an emergency fund. The incompetency exhibited by the senior high school students
therefore limits their ability to make sound financial decisions and hence more likely to have
financial related issues in the real world. The low level of financial literacy could also make
small financial issues become overwhelming which could turn into financial stress and
consequently affects the other aspects of live such as personal relationships or performance at
work.
Students with the amount of money entrusted to them, are the main subjects of unwise
use of funds. To satisfy or solve the problem of financial illiteracy among students, exposure to
sessions, training, and workshops is necessary.
They should be able to gain internet access for it was found out that the internet is
where most students get their basis, knowledge, and understanding. A study done by The Money
Advice Service in 2017 said that: managing money is seen to be part of growing up, and young
adults are both excited and daunted by this.
Local Studies
According to the student researchers in Bacolod Public School, they gathered data
thru thorough research and survey in the form of questionnaires. A total of 140 out of 9636
students from different private schools of Bacolod City were surveyed for this study.
The findings of the study include conclusion of having no significant difference in
the level of financial literacy when participants are grouped according to grade level, district and
family monthly income. But there is a significant difference in the level of financial literacy
when grouped according to sex. Further results show that there are existing relationships between
spending habits, saving habits and financial knowledge amongst each other. Another study
wherein they assess the level of financial literacy of Senior High School students in the Kumasi
Metropolis. The study surveyed 320 students to investigate their level of financial literacy
through the administration of questionnaires. Findings from the study reveal that students need to
improve their personal finance knowledge. The results show that the students answered about
48.7% of the questions correctly. The results also reveal that many of the students are seen to be
familiar with issues relating to simple interest, compounding and loan guarantee. In contrast, the
students are less knowledgeable and inexperienced with issues concerning personal financial
planning, budgeting and overdraft.
In the Philippines, the Bangko Sentral ng Pilipinas (BSP) has made financial
literacy as one of its major advocacies and the focus of its consumer education program.
The said institution has started embarking on activities which consisted of learning
sessions that seek to promote greater awareness and understanding of essential economic and
financial issues among Filipino public (Bunye, 2011).
In a study conducted by the Bangko Sentral ng Pilipinas among overseas Filipino
supported households, findings revealed the continuing priority in spending for food, education.
Medical expenses and debt payments (Dumlao, 2008). According to the studies in investigating
the Financial Management of Senior High School student in Davao City National High School,
about 50% of the students states that financial management affect them in a good way which can
help them to bypass their areas of weakness in spending money uncontrollably. Financial literacy
has continued to gain attention in the field of education and beyond. In today’s society, financial
knowledge has become an instrument in ensuring a financially healthy society (Odek, 2015).
BIBLIOGRAPHY
REFERENCES:
Chen, H. And Volpe, R. P. (2002).Gender differences in personal financial literacy
Braunstein, S. And Welch, C. (2002). Financial literacy: An overview of practice,
research and policy.
Retrieved from https://www.Investopedia.com/terms/s/savings.asp
Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy:
theory and evidence. Journal of Economic Literature, 52(1), 5–44. Retrieved from
https://link.springer.com/article/10.1007/s10834-020-09721-9#citeas
Federal Reserve Bulletin, 88, 445-457. Chen, H. And Volpe, R. P. (1998).An analysis of
personal financial literacy Garman, E.T., Sorhaindo, B., Prawitz, A., O‟Neill, B., Osteen,
S., Kim, J., Drentea, P.,Haynes, G., and Weisman, R.L. (2005).
Retrieved from https://www.ResearchGate.net/publication/3204
Research and policy. Federal Reserve Bulletin, 88, 445-457. Retrieved from
https://www.sdrc.org/media/199921/fcac-full-report-on-retirement-preparedness-en.pd
Lusardi, A., Samek, A., Kapteyn, A., Glinert, L., Hung, A., & Heinberg, A. (2017).
Visual tools and narratives: new ways to improve financial literacy. Journal of Pension
Economics & Finance, 16(3), 297–323. Retrieved from
https://www.frugalconfessions.com/spend-less/list-of-spending-habits
P.,Haynes, G., and Weisman, R.L. (2005). Development of and norms for the
In charge financial distress/financial well-being scale: A summary. Consumer
Retrieved from https://psycnet.apa.org/record/2006-11384-002
Interests Annual,51, 233-238.Hilgert, M. A., Hogarth, J. M., and Beverly, S. G. (2003).
Household financial Retrieved from https://dr.lib.iastate.edu/bitstreams/5c776161-a528-
44f5-b692-3cdd9398236c/download
Management The connection between knowledge and behavior. Federal Reserve
Bulletin, 89, 309-322. Retrieved from
https://econpapers.repec.org/RePEc:fip:fedgrb:y:2003:i:jul:p:309-322:n:v.89no.7
Mandell, L. (2001). Improving Financial Literacy: What Schools and Parents Can and
Cannot Do. Washington, D.C.: Jumpstart Coalition
Mandell, L. (2006). Financial literacy: Improving education results of the 2006
National Jump$tartsurvey. Washington, DC: Ju5mpstart Coalition.
Mandell, L. (2008). Financial Education in High School, in A. Lusardi (ed.),
Overcoming the Saving Slump: How to Increase the Effectiveness of Financial
Education and Saving Programs, Chicago: University of Chicago Press, pp.
257-279.
Retrieved
fromhttps://www.academia.edu/3972908404/Financial_Literacy_of_Senior_High_School_Stude
nts_in_Bacolod
Adam, A., Frimpong, S. And Boadu, M.,(2017). “Financial literacy and financial
Planning: Implication for the financial well-Being of retirees”, Retrieved February 10, 2019
From https://www.researchgate.net/publication/3204
Anastacio, M.F., et. Al., (2010). “Fundamentals Of Financial Management (With Industry-
Based Perspective)”, REX Book Store 856 Firli, A., (2017). “Factors that Influence
Financial Literacy: A Conceptual Framework”,
Retrieved February 10, 2019 from https://www.researchgate.net/publication/3155
Hui, T., Nguyen, C., Palameta, B. And Gyarmati, D., (2016). “The role of financial
Literacy in financial decisions and retirement Preparedness among seniors and near-seniors”,
Retrieved February 10, 2019 from http://www.srdc.org/media/199921/fcac-full-
report-on-retirement-preparedness-en.pd
Research in Economics 70(2) 360-374 [2] Hassan A H A and Anood B K 2009 Financial literacy
and investment decisions of UAE Retrieved from
https://ideas.repec.org/a/eme/jrfpps/v10y2009i5p500-516.html
Investors The Journal of Risk Finance 10(5) 500-516 [3] Titko J, Ciemleja G and Lace N 2015
Financial Literacy of Latvian Citizens: Preliminary Survey Results Procedia-Social and
Behavioral Sciences 213, 12-17 Retrieved from https://cyberleninka.org/article/n/1333417
[4] Bayrakdaroğlu A and Şan F B 2014 Financial literacy training as a strategic management tool
Among small–medium sized businesses operating in Turkey Procedia-Social and Behavioral
Sciences 150 148-155. Retrieved from https://www.semanticscholar.org/paper/Financial-
Literacy-Training-as-a-Strategic-Tool-%E2%80%93-Bayrakdaroglu-%C5%9Ean/
7f7c2ee5847d7b6af1681b5ed45dc012472d221f
[5] Chen H and Volpe R 1998 An Analysis of Financial Literacy among Collage Student
Financial Service Review 5(2) pp 225-32 Retrieved from
https://iopscience.iop.org/article/10.1088/1757-899X/180/1/012254

Impact of Different Factors To The Level of Financial Literacy Among Senior Students in Cataingan - GROUP 3

Uploaded by

Copyright:

Available Formats

You might also like

Impact of Different Factors To The Level of Financial Literacy Among Senior Students in Cataingan - GROUP 3

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Impact of Different Factors To The Level of Financial Literacy Among Senior Students in Cataingan - GROUP 3

Uploaded by

Copyright:

Available Formats

Division of Masbate

Cc. Cataingan National High School

IMPACT OF DIFFERENT FACTORS TO

THE LEVEL OF FINANCIAL LITERACY

AMONG SENIOR STUDENTS IN

of the Requirements for the

SENIOR HIGH SCHOOL PRACTICAL RESEARCH 2

Kerby A. Mayordomo Jeneva Marie H.

Background of the Study………………………………………………………………….. 3

Significance of the Study………………………………………………………………….. 6

Statement of the Problem……………………………………………………………….... 7

Scope and Delimitation…………………………………………………………………… 9

Conceptual Framework ………………………………………………………………......10

Definition of Terms …………………………………………………………………….....11

Chapter II – Review of Related Literature

THE PROBLEM AND ITS BACKGROUND

BACKGROUND OF THE STUDY

apparel and services, travel and vacation.

As financial markets and products become increasingly complex in ever-growing developed

leads to financially illiteracy.

SIGNIFICANCE OF THE STUDY

managing money and budgeting

literate, are likely to develop positive financial decisions.

through the process of spending money as financial management starts at home

• Teachers - can help in giving proper information towards financial management by

providing projects that are less costly.

students and promote financial literacy.

advance to ensure that there will be no issues or challenges during participation. It

studies in the future.

STATEMENT OF THE PROBLEM

Specifically, this study will answer the following questions:

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

1.3 Year Level

1.4 Average monthly allowance

I.3 Parents’ monthly average income

B. Personal Savings Habit

3. Why financial literacy important for senior high school students?

according to profile variables?

and Alternative Hypothesis to serve as a guide for the research study.

of different factors on the level of financial literacy among student

factors on the level of financial literacy among student.

SCOPE AND DELIMITATION

was also limited to School Year, 2022-2023.

Impact of Different Factors to the Level of

Factors that Influence Financial literacy

connecting all the (independent) sub-variables to the dependent variable.

between the Independent and the Dependent variable.

understanding for the readers either operational or conceptual:

have around using money to purchase experiences, services, and things.

giving it back after a period of time

 Financial Literacy – The confident understanding of concepts including saving,

such as stocks, bonds, foreign exchange and derivatives. (www.cfi.com)

 Financial Concepts – A quick reference guide, a way to further your education, or as a

resource to train others.(www.business-literacy.com)

II. REVIEW OF RELATED LITERATURE

particularly challenging situation.

permissive attitudes to debt as potentially contributing to young people’s financial problems.

capability issues. Financial literacy is alarmingly affected by demographic characteristics such as