PAGE 1

CHAPTER I
INTRODUCTION

Background of the Study

Minimum wage earners are those who earn the statutory minimum wage as

determined by the Regional Tripartite Wage and Productivity Board (RTWPB) of the

Department of Labour and Employment's. Financial literacy refers to the cognitive grasp of

financial concepts and abilities such as budgeting, investing, borrowing, taxation, and

personal finance management. Financial illiteracy refers to the lack of such abilities (Jones,

2015).

Financial literacy poses a significant challenge in developing countries due to the

increasing availability of financial services. In the past, access to financial resources was a

major issue in these countries, but now, with the elimination of geographical, technological,

and national barriers, this problem is being overcome. Factors such as mobile phone

technology, urbanization, the growth of microfinance, and the prevalence of remittances have

made it easier for even the poorest and most rural populations to open bank accounts through

mobile phones or the Internet. However, it is important to note that simply providing access

to financial services without promoting financial literacy can lead to difficulties for new

account holders who lack the knowledge and skills to effectively manage their savings and

investments. Therefore, it is crucial to prioritize the enhancement of financial literacy in

developing countries. This can be achieved through collaborative efforts between foreign

assistance programs, financial service companies, civil society organizations, educators, and

financial regulators (Runde et al., 2015).

Financial literacy plays a crucial role in ensuring the stability of any economy. In the

case of the Philippines, an emerging country, it is imperative to establish a more tangible

PAGE 1

solution that emphasizes the significance of financial education for all individuals. By

implementing comprehensive financial education programs, Filipinos can make informed and

prudent financial choices to safeguard and enhance their earnings. The key to achieving this

lies in promoting inclusive financial education initiatives.

According to a survey on fundamental financial literacy questions, only 20% of

Filipinos achieved perfect scores, while 70% answered at least half of the questions correctly.

In terms of understanding the impact of inflation on purchasing power in 2021, only 42% of

adults provided the correct response. Additionally, the World Bank discovered that only 25%

of adult Filipinos possess a solid understanding of basic financial concepts (Radcliffe, 2023).

The primary objective of this research is to assess the level of financial literacy among

minimum wage earners in Talisay City. The study aims to uncover the significance of being

financially literate, which involves the ability to recognize affordable financial products,

comprehend their mechanisms, and decipher complex financial terminology.

Statement of the Problem

This study aims to determine the level of Financial Literacy of Minimum Wage

Earner’s in Northern Negros Occidental. Specifically, this study seeks to answer the

following questions;

1. What is the level of financial literacy of minimum wage earners when taken as a

whole and grouped according to:

a. Sex

b. Educational attainment

c. Civil status

2. Is there a significant difference in the level of financial literacy of minimum wage

PAGE 1

earners in Northern Negros Occidental when grouped according to;

a. Sex

b. Educational attainment

c. Civil Status

Theoretical Framework

The study was affixed in the Financial Literacy of Minimum Wage Earners is The

human capital theory by Gary Becker that is published in the year 1964.

Human capital theory states that a different level of education and training

contribute to a different level of wages and salaries, the more knowledge, skill and ability,

the more likely to get a better job. According to Gary Backer (1964), human capital is a

physical means of production. human capital can be accumulated in different forms of

education, training, migration, and health. Through such forms, employees gain knowledge,

skills and abilities in different ways.

Guest (2000) argued that the number of consulting firms measure human capital investment

by using financial measurement, output and/or goods and service measurement. In addition, Mayo

(2012) also stated that human capital must be measured by integrating human capital measurement

and using other audiences’ requirement related to measurement. Human capital must be measured

by workforce analytics which includes various breakdowns of human capital such as job type, grade,

gender, location, ethnic origin, and view of human capital such as temporary, subcontract and

consultant resources.

This theory is anchored to the current study because of the relevance and connection to the

variables. Educational attainment can be anchored to the Human Capital Theory by Gary Becker

(1964), while Guests’ (2000) argument focuses on Sex and Civil Status, the independent variables of

this study.
PAGE 1

Conceptual Framework

This study focuses on two main variables: Financial Literacy and Minimum Wage

Earners.

The level of Financial literacy is dependent on the characteristics of the Minimum

Wage Earners namely the Sex, Educational attainment, and Civil status. It is intended to

establish the significant difference between the individuality of Minimum Wage Earners and

the level of Financial Literacy. The Figure 1 below illustrates the independent and dependent

variables.

Characteristics of Minimum
Wage Earners:
 Sex Level of Financial Literacy
 Educational attainment
 Civil status

Figure 1. Schematic diagram of Financial Literacy of Minimum Wage Earners

Significance of the Study

This study is primarily beneficial to the following:

Minimum Wage Earners. This study of Financial literacy is of paramount

importance to minimum wage earners as it provides them with the knowledge and skills

necessary to manage their finances effectively, overcome financial challenges, and work

towards a brighter financial future. It's not just about making ends meet today but also

about building a foundation for greater financial security and well-being in the years to

come.
PAGE 1

Community. Employees can help shape better policies and educational programs

tailored to their needs, potentially reducing vulnerability to financial crises and increasing

economic stability.

City of Talisay. The city can enhance workforce development initiatives, improve

job retention rates, and increase productivity, ultimately strengthening the city's economic

competitiveness.

Future researchers. This study offers a rich and multifaceted area of inquiry for

future researchers. By delving into the complexities of financial knowledge, behaviors, and

outcomes among this demographic, researchers can contribute to broader academic

discourse, policy development, and social change aimed at promoting financial well-being

and economic equity.

Delimitation of the Study

This research study is purposely conducted to identify the level of Financial Literacy

and the significant difference according to the characteristics of Minimum Wage Earners who

are currently employed in any establishments in Northern Negros Occidental. There are 120

selected respondents in total for this study among the Minimum Wage Earners. However,

there were 18 out of 120 sample respondents considered invalid because there were parts of

the questionnaire that has been left blank.

The researchers utilized a researcher-made questionnaire consists of items about the

respondent’s profile and a 30-item trimmed down from 50-item Likert scale questionnaire

where respondents assessed the Level of Financial Literacy of Minimum Wage Earners. This

was validated by 3 teachers with LPT degrees using the Lawshe validation instrument for its

accuracy and consistency. For the reliability of the research instrument, pilot testing was
PAGE 1

conducted by the researchers who were not the respondents of the study itself. Cronbach’s alpha

test tool was utilized to test the consistency of the items in the questionnaire. The data gathered was

analyzed using the Pearson product-moment correlation coefficient to determine the relationship

between the variables since the data was normally distributed.

Definition of Terms

Financial Literacy. The ability to understand and effectively use various financial

skills, including personal financial management, budgeting, and investing (Watson, 2022).

According to this study, It is a dependent variable to determine if Minimum Wage Earners are

Financial literate or not.

Minimum Wage Earners. Individuals who are paid does statutory minimum wage

(Grett, 2024). They are the chosen respondents that is accurate for this study.

Northern Negros Occidental. Refers to the northern region of the province of Negros

Occidental, located in the Western Visayas region of the Philippines (Guadalquiver, 2023). In

relation to this study, it is where the respondents of the research study settles.

Sex. Describes the anatomical, chromosomal, and hormonal characteristics that

determine an organism's gender (Mcleod, 2023). A basis to determine if there is any

significant difference of being Financial Literate as being a male or a female.

Educational attainment. The highest level of education, whether from formal

schooling, a college education, or vocational training, is referred to as educational

achievement (Dickens, 2023). According to this study, it's the greatest degree or level of

education that a person has obtained, such as a PhD, bachelor's, master's, or high school

certificate.

Civil status. Your legal relationship status, such as being single, married, divorced, or
PAGE 1

widowed, is referred to as your civil status (Jones, 2022). In relation to this study, its the legal

relationship status, such as being single, married, divorced, or widowed.

CHAPTER II
Review of Related Literature
PAGE 1

This chapter presents the significant contributions and findings of various researchers

and scholars in the context of financial literacy of minimum wage earner. By examining a

multitude of studies, theories, and methodologies, this review seeks to identify trends, gaps,

and inconsistencies, thereby providing a comprehensive background and foundation for

financial literacy of minimum wage earner.

Foreign

According to Ananat et al., (2022). The increasing importance of financial well-being

and a better quality of life, there is a growing demand for people to navigate the globalized

capital market, which offers a variety of savings and investment options. Personal financial

planning is becoming more essential, if not mandatory, as individuals strive to achieve their

financial goals. It is crucial for individuals to be knowledgeable about how they handle

financial matters and mitigate risks.

A survey found that 65% of adults in major advanced economies possess strong

financial literacy, but South Asia has the lowest percentage. This highlights the potential for

enhancing financial literacy to drive economic growth in a nation. Daily wage workers, rural

communities, and small-medium businesses are especially affected by lower financial literacy

levels (Karger, H. 2015)

To conclude, financial literacy goes beyond personal wealth management and has the

potential to shape a nation's economy. Regions with lower levels of financial literacy, such as

South Asia, require educational initiatives to address this gap.

According to Arianti (2018), The study seeks to examine and quantify the impact of

financial literacy, financial behaviour, and income on investing decisions.

The research method chosen was quantitative descriptive. The types and data sources

used are primary data, which is data acquired and processed by the researcher directly from
PAGE 1

the item. The population in this study is 29, 231 students, and the sampling strategy is

random sampling using the Slovin formula. In this study, data were obtained using the

questionnaire approach from 100 students who served as the sample population. Data

analysis procedures employed in this study include descriptive statistical analysis, data

quality testing, the classical assumption test, multiple linear regression testing, the F test, the t

test, and the coefficient of determination, all performed using the SPSS version 22 software.

The findings of this study show that financial literacy has no substantial impact on investing

decisions, whereas financial and income behaviour does.

According to Abdeldayem (2016), The study aims to assess the level of financial

literacy among Bahraini individual investors. In addition, investigate the link between

financial literacy and investment decisions in the Kingdom of Bahrain.

The analysis is based on 228 questionnaire surveys conducted among Bahraini

investors. In order to assess the level of financial literacy of Bahraini investors, the Lusardi

and Mitchell technique was used in this study. The data were analysed using Pearson

Correlation, t-test, and Chi-square tests.

The results show that Bahraini investors have a poor degree of financial literacy

(38.6%), which is well below the required level. When we examined the level of financial

literacy using demographic characteristics, we discovered that women are generally less

financially literate than males; respondents aged 41-50 are more knowledgeable than all other

age groups; and financial literacy is strongly connected with education. Furthermore,

members in the high financial literacy group (HFLG) are more aware of all financial

instruments, with the exception of certificates of deposit and post office savings.

Local

According to Lusardi et al. (2012), college students are more financially updated than
PAGE 1

high school students. Furthermore, Monticone (2010) observed that those with higher

incomes were more inclined to learn financial skills on their own, however those with lower

incomes found it prohibitively costly or did not have the same incentives to do so.

In 2016, Standard & Poor (S&P) discovered that just 25% of Filipinos are financially

educated, with over 75 million having no knowledge of insurance, inflation, or even the

concept of savings accounts. Middle-class families take into account just approximately 25%

of the total population, with about 0.1 belonging to the top class.

In relation to the above, Wahyuwono, (2020) further explained that majority of the

problems with financial literacy in Southeast Asia comes from the major

population’s financial ignorance.

Menike, (2018) states that financial literacy is greatly influenced by an individual's

financial attitude. This refers to how they perceive and approach saving, spending, and using

their future earnings to achieve their financial goals.

According to their research, there is a clear connection between organizational

performance and financial literacy. This aligns with the findings of Kanyundo (2018), who

conducted a quantitative study and concluded that financial literacy has a strong positive

impact on business performance.

Furthermore, the studies conducted by Utami et al. (2021) and Kibobi et al. (2020)

also confirmed that financial literacy is positively associated with business performance.

These findings highlight the importance of financial proficiency for organizations to remain

economically competitive.

According to Casingal, (2022). Having complete awareness of and comprehension of

Financial literacy is crucial, even in its most basic form. Gives persons a benefit when
PAGE 1

handling things cautiously and correctly financial plan that they have.

Using a hybrid technique, the current study specific convergence in a mixed method

that is parallel. With this approach, Combining qualitative and quantitative methods, the

researchers methodology of research. Survey participants provided responses to query

methods include surveys and interviews. Concentration group The data was also gathered

through discussion sessions. To ensure the validity and reliability of the instruments,

inquiries were expertly crafted and verified. The obtained information evaluated public

schools' financial knowledge professors.

In particular, financial literacy was the main focus. standing of educators in public

schools. Public school teachers are primarily concerned about two aspects of their current

financial situation and issues. First of all, the majority of them are having financial difficulties

and are not happy with their existing wage. They anticipate receiving a larger pay rise.

Second, they have too much on their plate in terms of financial obligations, which essentially

means they have a lot of expenses. The majority of teachers are the heads of their families

or the primary providers, and budget distribution is a major concern.

CHAPTER III

METHODOLOGY
PAGE 1

A thorough explanation of the study’s Research design, Respondents of the study,

Research Instrument, Data gathering procedure and Data analysis procedure are all covered

in this section.

Research Design

Descriptive-comparative method will be used in this study as the approach to asses

the level of financial literacy of minimum wage earners in the City of Talisay. It entails

gathering information to find out whether and to be extent there is any association between

two or more quantifiable factors. Descriptive research is a quantitative design where

measurable variables can be determined (McCombes, 2020). A comparative design is a

method that identifies a phenomena and joined them together to figure out similarities and

differences (Mokhtarian, 2016). This research design is appropriate because the researchers

aims to identify the Level of Financial Literacy of Minimum Wage Earners and if there is a

significant difference based on their sex, educational attainment, and civil status.

Respondents of the Study

The study respondents were the Minimum Wage Earners in Northern Negros

Occidental. There were a total of 120 respondents that are selected that is specifically earning

a minimum wage. However, only 102 questionnaires were validated because the other

questionnaires weren’t entirely filled with answers.

The criteria for eligibility were (1) respondents must be a Minimum Wage Earner, (2)

a resident within Northern Negros Occidental (3) and willing to participate in the study.

The distribution of respondents according to Sex, Educational attainment, and Civil

status will be shown in Table 1.

Table 1
PAGE 1

Distribution of Respondents
Grouping Variable N n %
A. As a whole 120 102 85.00
B. Sex
Male 52 47 46.08
Female 68 55 53.92
C. Educational attainment
Elementary Graduate 6 4 3.92
High School Graduate 33 25 24.51
Bachelor’s Graduate 8 7 6.86
Vocational Graduate 58 51 50.00
Post-studies Graduate 15 15 14.71
D. Civil status
Single 60 54 52.94
Married 55 46 45.10
Widowed 3 omitted omitted
Separated 2 omitted omitted
Table 1 shows the distribution of respondents according to Sex, Educational attainment,

and Civil status.

Based on Sex there are 68 Females and 52 Males. Based on Educational attainment,

there are 15 Post-studies Graduates, 58 Vocational Graduates, 8 Bachelor Graduates, 33 High

School Graduates and, 6 Elementary Graduates. Lastly, Based on Civil status, 2 were

Separated, 3 were Widowed, 55 were Married and, 60 were Single.

Research Instrument

The process of collecting the data from the participants will be conducted in a

researcher-made questionnaire method.

PAGE 1

The first section of the questionnaire is profiling which includes name (optional), sex,

educational attainment and civil status. The second section is to determine the level of

financial literacy of a minimum wage earner in northern negros occidental. The researchers

utilized a Likert-scale test that consists of 50 created test items narrowed down to 30 that is

answerable by the level of frequency and if it is not attainable it will be treated as invalid.

The levels were arranged into five (5) categories that determines the level of Financial

Literacy of the Minimum Wage Earners.

Mean Score Verbal Interpretation Verbal Description

4.50 - 5.00 Very High 81% to 100% Literate
3.50 - 4.49 High 61% to 80% Literate
2.50 - 3.49 Moderate 41% to 60% Literate
1.50 - 2.49 Low 21% to 40% Literate
1.00 - 1.49 Very Low 01% to 20% Literate

Validity infers that it is something or a piece of information that can be trusted (Collins,

2024). the research instrument to determine the level of Financial Literacy of Minimum

Wage Earners was validated by 3 employed teachers with a LPT degree, using the Lawshe

cnotent validation instrument. The sample questions were assessed into one of the three

categories namely:”essential”, “useful, but not essential”, and “not necessary”. It has been

used on a larger area to promote and quantify content validity in different fields.

Reliability means achieving the same results repeatedly or consistently (Cherry, 2023).

The researchers conducted the validated questionnaires to the selected respondents

through online by sending a Jot form link in messenger.

Data Gathering Procedure

The researchers observes the following procedures in gathering the data:

PAGE 1

First, the researchers directly asked the qualified respondents permission if they are

willing to participate in the survey.

Second, upon approval, the researchers forwarded the web made questionnaire Jot

form link to the respondent and gave instructions to not leave any of the tick boxes blank

except for the Name since it is optional.

Third, the respondents were given 3 days to answer the questionnaire. After the

respondents are finished answering, they are advised to click the submit button so that their

entry will be recorded. The expected complete answered entries were 120: however, the

researchers only collected 102 entries with complete answers, which might be due to

confidentiality reasons.

Lastly, the researchers gathered all the questionnaires and proceeded to submit the

quantified data to the statistician for analysis and interpretation.

Data Analysis Procedure

In this study, the researchers utilized the appropriate statistical tools to analyze the

gathered data with computer-generated software or SPSS.

For statement of the problem number 1, mean and standard deviation will be utilized

to identify the level of financial literacy within each group.

For statement of the problem number 2, Analysis of variance (ANOVA) and T-test

will be used for parametric data. Significant differences regarding with the obtained means

between sex (male and female), educational attainment (elementary, high school, bachelor’s,

vocational and post-studies) and civil status (single, married, widowed and separated) were

determined. On the other hand, Kruskal-Wallis and Mann-Whitney will be used for non-
PAGE 1

parametric data to distinguish if there are any significant differences in the level of financial

literacy across the different categories of sex (male and female), educational attainment

(elementary, high school, bachelor’s, vocational and post-studies) and civil status (single,

married, widowed and separated).

Ethical Consideration
The researchers provide the respondents a consent form before conducting the study.

The consent form is place at the top of research instrument and will read by the respondents

who agree to participate in the study. The researchers reassure the researcher instrument does

not necessitate or demand names. Before they respond to the questions, the researchers

provide details of the study, its nature and purpose, potential, subjects, and whoever may

have the access to the responses. The record of the responses is keep privately to protect the

confidentiality of the data collect and only the researchers have access to all information.

After the data were gather ,they were straightforwardly deleted to make certain that it was use

for this study alone. The researchers anticipate for these papers to be upload a variety of

websites so that it may be simpler to find and serve as another reference. As a result, this may

likely be recognize by promoting the research findings once it was publish.

PAGE 1

CHAPTER IV

PRESENTATION, ANALYSES, AND INTERPRETATION OF DATA

This chapter presents the results and its discussion. The discussion of the results includes

interpretation and analysis of the data gathered in connection to the specific problems in this

study.

Level of Financial Literacy of Minimum Wage Earners

The first objective of this study is aimed to determine the level of Financial Literacy of

Minimum Wage Earners when taken as a whole and when grouped according to sex,

educational attainment, and civil status. Summary statistics of the results are shown on

Table2.
PAGE 1

Table 2
Level of Financial Literacy of Minimum Wage Earners when taken as a Whole and when
Grouped According to Variables
Grouping Variable Mean Interpretation SD
A. As a Whole 4.21 High 0.63
B. Sex
Male 4.20 High 0.69
Female 4.23 High 0.59
C. Educational attainment
Elementary Graduate 2.88 Low 0.61
High School Graduate 4.13 High 0.51
Bachelor’s Graduate 4.30 High 0.34
Vocational Graduate 4.31 High 0.62
Post studies Graduate 4.37 High 0.61
C. Civil Status
Single 4.10 High 0.64
Married 4.38 High 0.53
Widowed Omitted Omitted Omitted
Separated Omitted Omitted Omitted
Note: 1.00 - 1.49 — Very Low; 1.50 - 2.49 — Low; 2.50 - 3.49 — Moderate; 3.50 - 4.49 —
High; 4.50 - 5.00 — Very High
As shown in table, the level of Financial literacy of Minimum Wage Earners when

grouped as a whole (M=4.31, SD=0.62) is High. When grouped according to sex, male

(M=4.20, SD=0.69) and female (M=4.23, SD=0.59) is also both High. But when grouped

according to educational attainment, Elementary graduate (M=2.88, SD=0.61) is only Low by

itself, while High school graduate (M=4.13, SD= 0.51), Bachelor’s graduate (M=4.30,

SD=0.34) , Vocational graduate (M=4.31, SD=0.62) and Post-studies graduate (M=4.37,

SD=0.61) are respectively High. Whilst when grouped according to civil status, single

(M=4.10, SD=0.64) and married (M=4.38, SD=0.53) are similarly High. However, widowed

and separated are both omitted due to a low number of respondents with the given observable

characteristics.
PAGE 1

The results suggested that both sex, male and female have the same level of Financial

Literacy which is high. Also, the results projects that in the educational attainment group,

only the elementary graduate respondents shows that they have a low level of Financial

literacy than high school graduates, bachelor’s graduates, vocational graduates and post-

studies graduates; these respondents altogether have a high level of Financial literacy. While

in the results is the civil status group suggests that both single and married have a high level

of Financial Literacy. However, widowed and separated are both omitted due to a low number

of respondents that can be recognized with the required observable characteristics.

As expected, Singh (2018) , in her study entitled “Financial Literacy among Youth” ,

The financial literacy level among youth is low across the most part of the world. Also, it has

been observed that various socio-economic and demographic factors such as age, gender,

income, marital status and educational attainment influence the financial literacy level of

youth and there exists an interrelationship between financial knowledge, financial attitude

and financial behaviour.

Difference in the level of Financial Literacy of Minimum Wage Earners

The second objective of this study focuses on the difference in the level of Financial

Literacy of Minimum Wage Earners when grouped according to sex, educational attainment

and civil status. Since the sex variable only recognizes two groups, Mann-Whitney will be

utilized to determine the difference in the Level of Financial Literacy, While Kruskal-Wallis

Test will be used for educational attainment and civil status because it acknowledges two or

more groups.

The Mann-Whitney results for the difference in the Level of Financial Literacy of

Minimum Wage Earners when grouped according Sex is presented on Table 3.

PAGE 1

Table 3
Mann-Whitney Results for the Difference in the Level of Financial Literacy of Minimum
Wage Earners when Grouped according to Sex
Groups n Mean Ranks Sum of Ranks Mann-Whitney U Test
U-ratio W Z p
Male 47 52.06 2447.00
Female 55 51.02 2806.00 1266.000* 2806.00 -
1.79 .858
*p<0.05

The evaluation revealed that there is no significant differences across two groups of sex,

male (n = 47) and female (n = 55) to their level of Financial Literacy. Based on the results,

there is no group that have a higher Financial Literacy on the other.

Average women know less about personal finance than men (Chen and Volpe, 2002).

The differences between men's and women's financial literacy scores are more than ten

percentage points and find that women score lower in these cases because they either do

not know the basic fact, terminology, or concept of personal finance or they do not perform

well in mathematics related questions. Also the researchers found supporting evidence that

gender is associated with financial literacy. Even after controlling the impact of other factors,

the gender factor is still statistically significant, indicating women are less knowledgeable

about finance than men. The weight of evidence leads us to conclude that women are less

knowledgeable about personal finance than men.

The Kruskal-Wallis Results for the difference in the Level of Financial Literacy when

Grouped according to Educational Attainment and civil status is shown on Table 5.

Table 5
Kruskal-Wallis Results for the difference in the Level of Financial Literacy of Minimum
Wage Earners when Grouped according to Educational Attainment and Civil status
PAGE 1

Kruskal-Wallis H Test
Groups n Mean Ranks
df H-ratio p
A. Educational attainment
Elementary Graduate 4 5.88
High School Graduate 25 44.92
4 12.932* 0.12
Bachelor’s Graduate 7 55.14
Vocational Graduate 51 55.72
Post-studies Graduate 15 58.60
B. Civil Status
Single 54 45.43
Married 46 58.84 3 9.971* 0.19
Widowed 1 92.00
Separated 1 1.50
*p<0.05
The results revealed that there is a significant difference between groups of educational

attainment, elementary graduate (n = 4), high school graduate (n = 25), bachelor’s graduate (n

= 7), vocational graduate (n = 51), post-studies (n = 15) to the level of Financial Literacy.

Based on the results, there is a group that have a lower Financial Literacy. On the other hand,

the results also revealed that there is a significant difference between groups of civil status,

single (n = 54), married (n =46), widowed (n = 1) and separated (n = 1) to the level of

Financial Literacy. According to the results, there are groups that have a higher Financial

Literacy. However, both widowed and separated groups are omitted due to a low number of

responses that requires the observable characteristics.

Since the result of the groups of the Kruskal-Wallis Test is significant, a Post Hoc

Analysis was used to identify where the differences occurred in Educational attainment and

Civil Status as shown on Table 6.

Table 6
Post Hoc Analysis Results for the Significant Difference in the Level of Financial literacy
PAGE 1

of Minimum Wage Earners when Grouped According to Educational attainment and Civil
Status
Groups Groups Test Statistic p
A. Educational attainment
Elementary Graduate High School Graduate -39.045 .136
Bachelor’s Graduate -49.268 .075
Vocational Graduate -49.841 .011
Post-studies Graduate -52.725 .014
High School Graduate Bachelor’s Graduate -10.223 1.000
Vocational Graduate -10.796 1.000
Post-studies Graduate -13.680 1.000
Bachelor’s Graduate Vocational Graduate -.573 1.000
Post-studies Graduate -3.457 1.000
Vocational Graduate Post-studies Graduate -2.884 1.000
B. Civil Status
Single Married 43.926 .138
Separated 57.337 .831
Widowed 90.500 .698
Married Separated -13.411 .321
Widowed -46.574 1.000
Separated Widowed -33.163 .176
**p<0.01
The Post Hoc Analysis test showed that Elementary Graduate has a significantly lower

level of Financial Literacy compared to High School Graduate ( TS = -39.045, p = .136),

Bachelor’s Graduate ( TS = -49.268, p = .075), Vocational Graduate ( TS = -49.841, p = .011)

and Post-studies Graduate ( TS = -52.725, p = .014). With the rest of the remaining pairs of

sections, no statistically significant difference was found.

The results suggested that the Elementary Graduate have a lower chance to be

financially literate than all of the other groups. This means that Elementary Graduate might

have a hard time to manage their income. However, no significant difference occurred in
PAGE 1

other pair of groups, which implies that respondents in these groups have the same level of

Financial Literacy or to be most likely Financial Literate.

There is a significant difference between elementary graduate and vocational graduate

(p 0.11). This suggest that there a large gap of being financial literate if you only completed

the elementary level. On the other hand, results also showed that there is also a significant

difference between elementary graduate and post-studies graduate ( p = .014). This indicates

that post-studies graduates is most likely to be financial literate than elementary graduates.

Financial literacy is found to be very low even among respondents with high levels of schooling

(Scheresberg, 2013). Promoting financial literacy and financial education among the young could be

particularly important. Policies aimed at improving financial literacy could help young people

minimize the costs incurred in managing their debt and improve their financial cushion in case of an

income shock or other emergency and greatly enhance their retirement security. Therefore, there is

a growing gulf between the amount of financial responsibility given to young individuals and their

demonstrated ability to manage financial decisions and take advantage of financial opportunities.

Hence, financial illiteracy remains a significant obstacle to both financial market efficiency and to full

participation of young people in the current financial environment.

CHAPTER V

SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS

This section presents the summary of the findings, conclusions, and the

recommendations to be offered by this study.

Summary

This study utilized a descriptive-comparative research design to identify whether there is

a relationship Financial Literacy when grouped according to sex, educational attainment and,
PAGE 1

civil status in Northern Negros Occidental during the year 2023-2024. The respondents of

this study were 102 out of 120 employees using purposive sampling that is a minimum wage

earner and willingly participated in this study.

This study aimed to determine the level of Financial literacy of Minimum Wage Earners.

Also, the researchers aimed to find out if there was a significant difference between the

Level Financial Literacy of when grouped according to Sex, Educational attainment and Civil

status.

A 50-item researcher-made questionnaire was constructed and reduced by validators to

30 items that determines the objectives. The data analysis was conducted using Mean,

Standard Deviation, ANOVA, T-test, Kruskal-Wallis and Mann-Whitney.

The following are the findings of the study;

1. Mean results indicate that the Level of Financial Literacy of Minimum Wage Earners

when grouped as a whole was High. When grouped according to sex, male and females the

mean was high. When grouped according to educational attainment, high school graduate,

bachelor’s graduate, vocational graduate and post-studies graduate was high, while the

elementary graduate was low. When grouped according to civil status, single, married,

widowed and separated was also High. However, married and widowed response was omitted

due to a low number of respondents with the given observable characteristics.

Standard deviation was also indicated similarities of responses.

2. Mann-Whitney revealed that there is no significant differences across two groups of

sex, male and female to their level of Financial Literacy. Based on the results, there is no

group that have a higher Financial Literacy on the other.

3. Kruskal-Wallis results showed that there is a significant difference between groups of

PAGE 1

educational attainment, elementary graduate, high school graduate, bachelor’s graduate,

vocational graduate, and post-studies to the level of Financial Literacy. Based on the results,

there is a group that have a lower Financial Literacy. On the other hand, the results also

revealed that there is a significant difference between groups of civil status, single, married,

widowed and separated to the level of Financial Literacy. According to the results, both

groups have a high Financial Literacy. However, both widowed and separated groups are

omitted due to a low number of responses that requires the observable characteristics.

4. Post Hoc Analysis results revealed that Elementary Graduate have a lower chance to

be financially literate than all of the other groups. This means that Elementary Graduate

might have a hard time to manage their income. However, no significant difference occurred

in other pair of groups, which implies that respondents in these groups have the same level of

Financial Literacy or to be most likely Financial Literate.

Conclusions

This study aimed to determine the Level of Financial Literacy of Minimum Wage

Earners and if there is a significant difference as a whole and when grouped according to Sex,

Educational attainment and Civil status. Throughout the investigation, the following are the

conclusions.

1. The results suggests that there is a high chance to be financially literate if you are a

High School Graduate, Bachelor’s Graduate, Vocational Graduate, and Post-studies

Graduate, However, Elementary Graduate have a low chance to be Financially Literate.

2. The results suggested that the Elementary Graduate have a lower chance to be

financially literate than all of the other groups. This means that Elementary Graduate might

have a hard time to manage their income. However, no significant difference occurred in

other pair of groups, which implies that respondents in these groups have the same level of
PAGE 1

Financial Literacy or to be most likely Financial Literate.

3, There is a significant difference between elementary graduate and vocational

graduate. This suggest that there a large gap of being financial literate if you only completed

the elementary level. On the other hand, results also showed that there is also a significant

difference between elementary graduate and post-studies graduate. This indicates that post-

studies graduates is most likely to be financial literate than elementary graduates.

4. In conclusion, the level of Financial Literacy of Minimum Wage Earners is low if

their educational attainment is elementary level.

Recommendations
PAGE 1

References
PAGE 1
PAGE 1

APPENDICES

Appendix A
PAGE 1

Letter to the Adviser

January 31,2024

CLAUDINE G. CHAVEZ, LPT

Teacher, Senior High School Teacher
Notre Dame of Talisay
Talisay City, Negros Occidental

Dear Teacher Claudine:

Good day!

We, the grade 12 students of Notre Dame Talisay pursuing Accountancy, Business and
Management, are currently required to conduct a quantitative research 3i’s subject.
We would like to request for your expertise to serve as an adviser to our quantitative research
study. We believe that your knowledge and insights will be valuable and will greatly enrich
with out work.
We are hoping that you fulfill our request.

Hoping for your kindness and consideration,

Respectfully yours,

The RESEARCHERS

JOLINA A. ALIPALO KRYSTEL ANN VELEZ ALEXA A. EGIDO

JOLINA DELA TORRE DIANE NACO GODWIN PINEDA

AIRA MILES B. DE OCA

Noted by:

EMADEL QUIÑANOLA
3I’S Teacher
Letter to the Validators
PAGE 1

February 23, 2024

Ms. Irish Jalandoni

Notre Dame of Talisay City, Inc.
Talisay City, Negros Occidental

Dear Ms. Jalandoni

Warm Greetings!

We are Accounting, Business and Management students, are presently conducting a study

entitled Financial Literacy of Minimum Wage Earners.

The study aims to determine the level of Financial literacy of Minimum Wage Earners in

Northern Negros Occidental.

In this regard, your expertise is needed to establish the validity of this instrument. Hence, we

are requesting a portion of your precious time to look into the different aspects for further

improving the instrument.

Attached herewith are the research instrument, evaluation and the validity rating sheet.

Thank you so much!

Respectfully yours,

AIRA MILES B. DE OCA

Member/Researcher

Noted:

CLAUDINE CHAVEZ

Research Adviser
PAGE 1

February 23, 2024

Mr. Rollen Gardose

Notre Dame of Talisay City, Inc.
Talisay City, Negros Occidental

Dear Mr. Gardose,

Warm Greetings!

We are Accounting, Business and Management students, are presently conducting a study
entitled Financial Literacy of Minimum Wage Earners.
The study aims to determine the level of Financial literacy of Minimum Wage Earners in
Northern Negros Occidental.
In this regard, your expertise is needed to establish the validity of this instrument. Hence, we
are requesting a portion of your precious time to look into the different aspects for further
improving the instrument.
Attached herewith are the research instrument, evaluation and the validity rating sheet.
Thank you so much!

Respectfully yours,

AIRA MILES B. DE OCA

Member/Researcher

Noted:

CLAUDINE CHAVEZ
Research Adviser
PAGE 1

February 23, 2024

Ms. Delacruz
Notre Dame of Talisay City, Inc.
Talisay City, Negros Occidental

Dear Ms. Delacruz

Warm Greetings!

We are Accounting, Business and Management students, are presently conducting a study

entitled Financial Literacy of Minimum Wage Earners.

The study aims to determine the level of Financial literacy of Minimum Wage Earners in

Northern Negros Occidental.

In this regard, your expertise is needed to establish the validity of this instrument. Hence, we

are requesting a portion of your precious time to look into the different aspects for further

improving the instrument.

Attached herewith are the research instrument, evaluation and the validity rating sheet.

Thank you so much!

Respectfully yours,

AIRA MILES B. DE OCA

Member/Researcher

Noted:

CLAUDINE CHAVEZ

Research Adviser
Appendix B
PAGE 1

Instrument

Questionnaire of Financial Literacy of Minimum Wage Earners

Dear Respondents:
Greetings!
We are conducting a research study entitled Financial Literacy of Minimum Wage
Earners. The questionnaire below will be used for our research study in the subject Research
in Investigation, Inquiry and Immersion. We are hoping for your cooperation and please
answer the following statements as honest as you can be regarding your experiences as a
Minimum Wage Earners.
Rest assured that all your responses will be treated with utmost confidentiality.
Thank you very much!
The Researchers

PART I. Profile of the Respondents

Name (Optional) :

Sex: □ Female Educational Attainment: □ Elementary Graduate

□ Male □ High School Graduate

Civil Status: □ Single □ Bachelor’s Graduate

□ Married □ Vocational Graduate

□ Widowed □ Post-studies Graduate

□ Separated

PART II.

Instruction: Please out a check mark in the box that corresponds to your answer.

SA- Strongly Agree A- Agree N- Neutral D - Disagree SD - Strongly Disagree

SA A N D SD
1. Tracking my spending to avoid overspending and stay within
my budget.
2. I make sure to have a money put away in an emergency fund
PAGE 1

for unexpected life events.

3. I put the extra money into my savings.
4. I can figure out what matters most when I list down
everything and weigh what's more important.
5. When I start managing my finances, I have a better
perspective of where and how I'm spending my money.
6. When my paycheck is deposited, that money disappears
before i can count it as spending money.
7. A specific portion of my earnings is consistently allocated for
savings.
8. I am confident in my knowledge and comprehension of
budgeting.
9. To manage my budget effectively, I consistently monitor my
income and expenditures.
10. A comprehensive understanding of how investments operate
is something I possess.
11. A part of my earnings is consistently invested for future
financial growth.
12. My saving and investing habits give me a sense of security
about my financial future.
13. Regularly reassessing and adjusting the budget based on
changes in financial
14. I am assured of my capability to reach my financial
objectives through effective budgeting.
15. Managing my expenditures within my means is something I
am confident in.
16. I am aware that obtaining a loan carries a certain level of
risk.
17. A variety of financial products, such as savings accounts and
credit cards, are within my knowledge.
18. The importance of having emergency savings is clear to me.
19. Monthly review of credit card, bank, and other financial
statements is part of my routine.
20. A retirement savings plan has been established by me.
21. As minimum wage earner, I can manage my finances very
well.
22. I can balance my work and lifestyle as a Minimum Wage
Earners.
23. My Minimum Wage salary affects my financial obligations.
24. I am able to support my family and personal need as a
Minimum Wage Earners.
PAGE 1

25. Paying labor and taxes using my savings is within my

capability.
26.My savings are sufficient to cover my tax obligations.
27. I possess the ability to engage in activities involving
investments.
28. I have the skills to handle tasks related to budgeting.
29.Tasks involving savings are well within my capabilities.
30. Making adjustments to the budget when unexpected
expenses arise is something I am comfortable with.
PAGE 1

Appendix C
Validity Results

Level of Financial Literacy of Minimum Wage Earners

No. of
Item Essential CVR
Validators
1. Tracking my spending to avoid overspending and
stay within my budget.
2. I make sure to have a money put away in an
emergency fund for unexpected life events.
3. I put the extra money into my savings.
4. I can figure out what matters most when I list down
everything and weigh what's more important.
5. When I start managing my finances, I have a better
perspective of where and how I'm spending my
money.
6. When my pay check is deposited, that money
disappears before i can count it as spending money.
7. A specific portion of my earnings is consistently
allocated for savings.
8. I am confident in my knowledge and
comprehension of budgeting.
9. To manage my budget effectively, I consistently
monitor my income and expenditures.
10. A comprehensive understanding of how
investments operate is something I possess.
11. A part of my earnings is consistently invested for
future financial growth.
12. My saving and investing habits give me a sense of
security about my financial future.
13. Regularly reassessing and adjusting the budget
based on changes in financial
14. I am assured of my capability to reach my
financial objectives through effective budgeting.
15. Managing my expenditures within my means is
something I am confident in.
16. I am aware that obtaining a loan carries a certain
level of risk.
17. A variety of financial products, such as savings
accounts and credit cards, are within my knowledge.
PAGE 1

18. The importance of having emergency savings is

clear to me.
19. Monthly review of credit card, bank, and other
financial statements is part of my routine.
20. A retirement savings plan has been established by
me.
21. As minimum wage earner, I can manage my
finances very well.
22. I can balance my work and lifestyle as a Minimum
Wage Earners.
23. My Minimum Wage salary affects my financial
obligations.
24. I am able to support my family and personal need
as a Minimum Wage Earners.
25. Paying labor and taxes using my savings is within
my capability.
26.My savings are sufficient to cover my tax
obligations.
27. I possess the ability to engage in activities
involving investments.
28. I have the skills to handle tasks related to
budgeting.
29.Tasks involving savings are well within my
capabilities.
30. Making adjustments to the budget when
unexpected expenses arise is something I am
comfortable with.
PAGE 1

Appendix D
Computer-Generated Outputs

Statement of the Problem 1: The Level of Financial literacy of Minimum Wage Earners