SARAH2

Immaculate Conception Academy 1
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CHAPTER I
THE PROBLEM AND ITS BACKGROUND
Introduction
Financial literacy is important in today’s world. Awareness of money
management, income, saving, and spending can equip the young people with the
necessary knowledge to take charge of finances. Financial literacy is defined as
one’s knowledge of facts, concepts, principles, and technological tools that are
fundamental to being smart about money (Garman & Gappinger, 2008). Widely
used definitions of financial literacy imply the ability of individuals to obtain,
understand, and evaluate information required to make decisions to secure the
financial future as best as possible. People are living in an age of unprecedented
debt and business owners are destined to face challenging times financially.
Financial education increase knowledge understanding of a business owner.
Financial literacy is the education and understanding of various financial areas
including topics related to managing personal finance, money and investing in
today’s economy, consumers are faced with many consumer and business
decisions. Education for these decisions relies on the individual as well as the
family’s desire to use money effectively as a resource. Money can and often lead
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to fulfillment and happiness, however, sometimes it is mismanaged. After
analyzing a host of papers on the subject, Huston (2010) proposed that financial
literacy must also include application of financial knowledge; the argument being
that absent demonstrated ability to apply financial knowledge, an individual
cannot be regarded as being financially literate. There is a greater need for
financial education in an increasingly global and unforgiving economy. For
example, we live in a world of economic uncertainty that requires individuals to
be cognizant of what is happening in the economic world in order to develop
skills and services that will sustain their personal and business financial well-
being. This calls for greater education. Research shows that there is a strong
correlation between poor financial illiteracy and high indebtedness and low
wealth accumulation (White House, 2012). An increasingly changing financial
atmosphere that places more financial decision-making tasks on the consumer
calls for increased financial understanding and planning in every facet of life
(Harnisch, 2010).
Financial literacy is the mastery of a set of knowledge, attitudes and
behaviors. It was defined by Nkundabanyanga and Kasozi, (2014), as the ability
of an individual to make informed judgement and take effective decisions
regarding the use and management of money. The researchers added that such
person also possesses a facilitating attitude to the effective and responsible
management of financial affairs. That is the ability to read, analyze, manage and
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communicate personal financial conditions that affect well-being and the ability to
distinguish financial choices, discuss money and financial issues without
discomfort. It has assumed the role in allowing people to make responsible
decisions as they strive to attain financial well-being (Ani, Kelmara, & Wesley,
2016). Financial literacy has become essential in the running of businesses and
operations of organizations in the complex and dynamic environment today.
Atkinson and Messy (2012), added that governments around the world are
interested in finding effective approaches of improving financial literacy of per
populations through developing strategies for financial education with the main
aim of providing various learning opportunities.
Financial literacy has got an increasing interest in developed countries
because of the increasing complexity of financial markets, increasing cost of life,
the shift of retirement responsibility from government to individuals, which all
demand personal financial management capability in individual and households
(Refera, Dhaliwal, & Kaur, 2016).
Governments around the globe have expressed concerns about the low level
of financial literacy amongst their nationals. Major issues such as improper
planning before retirement, low savings, scams and fraudulent schemes which
the citizenry fall into can generally be attributed to their inadequate or lack of
knowledge in financial issues. The cost of low financial literacy rate is substantial
for the general public and has been unmistakably identified by researchers
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Gallery, Newton and Palm (2010); Capuano and Ramsay (2011). There is
sufficient proof that people who under-save neglects to settle on savvy
investment decisions and are frequently indebted (Poterba, et al., 2007; Mitchell,
2011). Researchers additionally for the most part concur that financial knowledge
seems, by all accounts, to be straightforwardly associated with self-gainful
financial behavior (Hilgert, Hogarth and Beverly, 2003).
Financial literacy has been recognized all around as a basic apparatus for
development with issues identifying with budgeting, savings, investment and the
administration of risks which are significant for the individuals, households and
businesses in their developmental procedure. Organization for Economic
Cooperation and Development (OECD) defines financial literacy as a blend of
awareness, knowledge, skill, attitude and behavior important to settle on solid
financial decisions and eventually accomplish individual financial well-being
(International Network on Financial Education, 2011).
Background of the Study
Handling any type of business, either small, large or online business cannot
be successful without the proper process of managing it. Handling business
requires the effective management of money, product expenses, environment of
the company and the people involved to it. When it comes to small business, it
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may be easier to manage because of its size, but it can also be challenging for
the owners. According to Vitez (2008), handling small businesses requires the
combination of education, knowledge and expertise of the owner to run the
business effectively. The owners of small business are responsible to manage all
the surroundings and what’s happening to the business.
Handling business is difficult for those sari-sari store owners without
knowledge in financial literacy. Financial literacy has been recognized all around
as a basic apparatus for development with issues identifying with budgeting,
savings, investment and the administration of risks which are significant for the
individuals, households and businesses in their developmental procedure. Small
Business BC (2015) states that it’s no surprise that financial literacy and effective
business performance relate to each other.
In developing countries, micro and small enterprises (MSEs) make up the
largest part of the industrial fabric, which makes them one of the most important
development agents in society. Worldwide, MSEs offer the possibility of earning
income, training, work experience and employment to millions of poor people.
However, empirical evidence shows that most small enterprises never develop
beyond a certain size and only a small minority manages to upgrade to the next
level of productivity, income and employment (Berner, Gomez & Knorringa,
2008).
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The study focuses in how the literate and non-literate sari-sari store owners
can handle the business and how the business owners can make it successful.
Having enough knowledge about financial management can be a key to handle a
business well.
Ways in Handling
Business
Financial Literacy
 Financial
 Money Management
management  Monthly
 Income  Weekly
 Saving  Daily
 Spending  Savings
 Mathematical Ability  Investments
 Growth Planning
 Budgeting
Wealthy owners
Figure 1
Conceptual Framework
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Statement of the Problem
This research aims to identify the financial literacy of sari – sari store owners
in handling business. Therefore, the study attempted to answer the following
questions:
1. What is the demographic profile of the sari-sari store owners?
a. Age
b. Sex
c. Educational Background
d. Work Experience
2. What are the mathematical abilities of financial literacy of sari-sari store
owners?
3. What are the financial literacies of the sari-sari store owners?
a. Money management
b. Income
c. Saving
d. Spending
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e. Mathematical Ability
4. What are the ways of handling business of financial literate sari-sari store
owners?
5. Is there a significant relationship between financial literacy and
mathematical abilities of the sari- sari store owners?
6. Is there a significant relationship between financial literacy and handling
business of sari –sari store owners?
Hypothesis
Ho – There is no significant relationship between financial literacy and
handling business of sari – sari store owners.
Scope, Delimitation and Limitation of the Study
This study focused on the financial literacy of the sari-sari store owners in
handling business. In financial literacy, it includes money management, income,
saving, spending, mathematical ability, expenses and in ways of handling
business such as budgeting, savings, financial management, growth planning
and investments. The delimitations of the study are the sari – sari store owners
and ways of handling business. The age will be ranging from 20 to 50 years old.
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This study is applicable to any sex of the sari – sari store owners. The
researchers include educational background of the sari – sari store owners in the
study to determine if being educated individual can affect the performance of a
sari – sari owners. In educational background, included whether have the sari –
sari store owners are graduated or not. In this study it also includes if the owners
had any experience when it comes to business or if the owners had any
particular work experience. While for the ways of handling business, this will
include how the owners manage all the surroundings and what’s happening in
the business, how the owners keep the growth of the business and managing
money through expenses, savings and investments. This will be conducted in the
sari – sari stores in Phase 1, Cityhomes Resortville Barangay Langkaan 2 with a
minimum wage of Php10,000 a month and five years in the business. The
limitation of the study is the other sari- sari store owners in Cityhomes
Resortville.
Significance of the Study
This study significant in acquiring the knowledge about financial literacy to the
sari-sari store owners in handling business. The result of the study will be
beneficial to the following:

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To the sari-sari store owners, the study will help to understand the effects
on having financial literacy in a business. This will also enlighten how having
enough knowledge in financial handling can affect the business itself and also
the activities that is running in the business.
To the financially literate and non-literate people, this will be beneficial by
showing the importance of having knowledge in financial handling. This will also
help in preventing the risks that can happen when it comes to finances.
To the students, the research can help in providing awareness and
knowledge about effect of financial literacy. This will encourage to use money
smartly and become financially sufficient.
To the future researchers, this will provide knowledge and additional
information that will lead as a reference on the future studies that may be related
to this study.
Definition of Terms
The following terminologies are defined operationally and contextually to
provide clarity and understanding of the study.
Financial Literacy. This refers to the business owners’ knowledge in
handling money.
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Financial Management. This refers planning, directing and controlling
financial understandings in an organization or a business.
Handling Business. This is managing or handling ones’ business for its
growth.
Literate. This is being able to know how to handle a business and being
financial literate.
Non-literate. This refers of being unable to handle a business and having no
knowledge about handling money.
Respondents. This refers to the sari-sari owners.

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CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDIES
In this chapter, pertinent information that would supplement the study were
thoroughly gathered from reliable online resources that provide the researchers
with the review of the topic and acquisition of necessary information that
supported in pursuing the study pertaining to the financial literacy of sari-sari
store owners in handling business.
Financial Literacy
As defined by Kenton (2019), “Financial literacy is the education and
understanding of various financial areas including topics related to managing
personal finance, money and investing”.
A person’s level of financial literacy affects his or her lifestyle that is
financially balanced, sustainable, ethical and responsible. It is important to
any type of consumers whether to young adults, employed people or families.
Financial literacy is applicable for everyone whether sellers or buyers. It is

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necessary for both parties to have a practical decision when it comes to
money (Blogger, 2013).
As stated in the study of Connell (2007), financial education aims to increase
an individual’s financial understanding. This includes financial goal setting,
budgeting, managing cash flow and debt. It is the process where consumers
improve their understanding in products, awareness in financial risks and
opportunities to make decisions.
Financially illiterate people cannot improve their financial well-being resulting
to their false decision in expenses and budgeting. Those people are more prone
to financial errors and income losses. Financially illiterate business owners can’t
discuss financial performance and having false investments. There are people
who are well-educated and having high income but financially illiterate still
doesn’t know how to handle their own money well. Business world always
includes the desire of owners to gain more salary and to have a better and
successful business for a long time (Abel, 2015). According to a QuickBooks
survey, more than 40 percent of small business owners identify as financially
illiterate. Many small business owners likely use the same principles for
governing both their personal and business finances.
Handling Business
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Business Development Bank of Canada (n.d) mentioned that “Handling
business requires greater cash flow needs, growth planning and the right
financing. If your company is growing too fast, you might not have enough cash
to deal with your everyday financial obligations, including bills, payroll and
supplies.”
Marr (2017) enumerated the different biggest challenges that businesses are
facing today. First, financial management, which this include cash flows, profits,
reducing costs, etc. Next is, technologies that are needed to produce goods.
Next one is the uncertainty about the future, the incapability to predict the trends,
economic growth and climate. Lastly, the recruiting of right talent, finding the right
employee and developing its talent.
One of the things that is important in a business is its growth, but it is still not
easy to handle. The researcher suggested some ways in handling growth
properly which are: understand the cause of growth, keep customer
experience a priority, choose your team wisely, carefully measure staffing
needs, be open to adapting and find a good mentor. An owner can be
prepared in its business growth by following these. Handling business is hard
for any type of entrepreneurs due to having the responsibility to track down not
just the business itself but also the finances, well-beings and the people that is
involved inside the business (Eugenio, 2017).

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Sari-sari Store
According to Malapit (2007), “The neighborhood sari-sari (variety or general)
store is part and parcel of daily life for the average Filipino. Any essential
household good that might be missing from one’s pantry – from basic food items
to other necessities.”
Most sari-sari stores become a small family business to supplement the family
income that are usually owned and operated by the mother of the family. Any
type of people are choosing to have their own sari – sari store instead of
pursuing their career or passion. Aside from this is a home-based work, some
people are observing that there are owners that are successful by just putting up
small sari – sari store. The purpose of sari-sari store is to produce tingi or per
piece products to consumers. It is also chosen by most buyers because it has
prices that are more affordable than any convenience stores. Some sari – sari
store owners are choosing to upgrade their small store into grocery or
convenience store (Philippine Primer, 2016).

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Income
“Income refers to money – cash or cash-equivalents – coming in either for
work done, interest or profit from capital invested. It is any money received by a
worker, company, investor, charity, organization or the economy. It is also known
as earnings” (My Accounting Course, 2019).
Income has several different meanings, depending on the situation and
whether it refers to an individual, company, household, or national economy. It is
the consumption and savings opportunity gained by an entity within a specific
timeframe – nearly always expressed in monetary terms. For individuals and
households, however, it is the sum of all the wages, salaries, profits, interest
payments, rents and other forms of earnings received – in every case, over a
specific period (Kagan, 2019).
Income is used to fund day-to-day expenditures. For individuals, income is
most often received in the form of wages or salary. Income is the only source of
money that anyone can have to make expenses and investments.
Savings
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Market Business News (2019), define savings as the “Portion of income not
spent on current expenditures.” Savings are important for every business
because this is a lifeline of a firm.
Savings refers to any income that we do not spend and put aside – we put the
money away. It is the practice of keeping money to buy something that a person
needs and wants for the future. It is the portion of our disposable income that do
not spend on consumer goods but accumulate or invest. Savings is the result of
the intentional act of setting money aside, building it up, usually for a specific
purpose or goal.
Saving money is worth the effort. It gives you peace of mind, it gives you
options, and the more you save, the easier it becomes to accumulate additional
savings. The more money you have saved, the more you control your own
business (Fontinelle, 2019). Since saving of the individual becomes the capital to
be invested by the entrepreneurs, the saving and investment habit of individuals
goes a long way in affecting their chances and the chances of other people to
venture into entrepreneurship (Pulka, 2015).
Money Management
According to Chen (2019), “Money management is the process of budgeting,
saving, investing, spending on the capital usage of an individual group.” Money

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management refers to handle all aspects of finances, from making a budget for
where each paycheck goes to setting long-term goals to picking investments that
will help to reach those goals.
Bortar (2018) also believe that money management skills are not difficult to
learn. Basic Money Management is a financial literacy program designed to
strengthen the money management skills of low to moderate income women by
providing tools to help with budgeting, credit and debt issues.
Unconscious spending can cause big problems, it is easy to get caught up in
debt reduction planning. It would be a big problem, if every day, spent several
thousand every year, blew the budget, and didn't derive any pleasure from it. It's
not a problem for who budgets for it and enjoys it (Guina, 2019).
Small Enterprise
Small businesses are privately owned corporations, partnerships, or sole
proprietorships that have lesser employees or less revenue compared to a
regular-sized business or corporation. For small enterprises, it is important to
track down every details, like finances, well-being to make that business grower.
There are different advantages of having this kind of firm: The small business
owner has the freedom to make the decision, it also has the ability to
communicate and personal contact with its customers and clients, and lastly the
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expenses and investments that are needed doesn’t need to be higher rates so
when a business fails the owner or the business itself is safer in debts (Sarokin,
2019).
Budgeting
As defined by Ward (2019), “Budget is a plan that outlines an organization's
financial and operational goals. The budget is an essential part of a business
plan when starting a new business.”
For Banks (2018) study, if there is no control over spending, planning is
useless and if there is no planning there are no business objectives to achieve. It
enables the business owner to concentrate on cash flow, reducing costs,
improving profits and increasing returns on investment. Budgeting is necessary
to be practiced well to determine if a person can still have money for the future
needs. It includes the proper balance of an individual’s income and expenses. It
is a tool that helps in tracking finances for a given time period. Running a
business without a proper budget may find the business just running around in
circles and not meeting long-term goals.

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Growth Planning
Planning for the growth of a business is important. According to Frese (2005),
plans refer to important goals reachable by business owners within a few months
or a year, and can be for example, buying a new, expensive machine, building a
roof over an open-air repair shop, or introducing a new marketing approach. The
degree of detail may vary from an elaborate, detailed, and specific plan to one
that is very general and does not specify steps. One aspect of elaborate planning
is to think about contingencies or have a plan B if the first plan does not work out.
Planning increases the likelihood that people get started by translating their goals
into actions and by mobilizing extra effort.
Financial Management
Deakins (2001) define financial management as it includes bookkeeping,
projections, financial statements, and financing, which forms the foundation for
reaching your goals through sound business decisions. Financial management is
one of the main avenues to success as a business owner.
Mehta (2003) also believe that financial management is one of the most
important aspects in business. In order to start up or even run a successful

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business, business owners need to have excellent knowledge in financial
management.
Spending
In Formoso et al. (2018) study, business owner should be mindful of
business’s finances, and know how much money the business earns against how
much the company is spending. Managing the cash flow efficiently is essential to
keep business running smoothly.
Investments
According to Kennon (n.d.), investing in a small business is one of the most
popular ways individuals and families begin the journey of the business owners
to financial independence. It is a way to create, nurture, and grow an asset that,
when intelligently run under the right conditions, can generate surplus cash to
provide a good standard of living and to fund other investments.

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Mathematical Ability
Mathematical ability is a capacity of a person to obtain, process, and retain
mathematical information. It is the ability to perform mathematical tasks and to
effectively solve given mathematical problems as mentioned by Karsenty (2014).
Mathematics is important is important in managing business. Mathematical ability
allows a person to do critical thinking, problem solving, analytical thinking,
quantitative reasoning. In academics, a student’s mathematical ability can be
determined based on the scores in mathematics examinations or the subject
itself (Pandey, 2017). Sari – sari store or small business are easy to run and just
used basic math for their daily operations. Knowing just the basic math allows a
person to be qualify to run a small business ( Action for Economic Reforms,
2007).
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Synthesis
Several studies have been conducted to find out the in-depth explanation in
financial literacy of sari – sari store owners in handling business. The gathered
related literature proved that financial literacy is important when it comes to
business. The studies helped the researchers to understand thoroughly the
financial literacy. There are a lot of people who choose to have their own
business, some of this is sari – sari stores especially to the people who didn’t
finish their studies. It is also proved that salaries, savings, investments and
expenses are connected to know the financial literacy of an entrepreneur. Money
is one of the things that is important in handling a business, some of the owners
are more focused on gaining business’ income that’s why entrepreneurs are
convinced to have knowledge in financial literacy. Financial literacy is a helpful

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knowledge to improve an individual’s understanding in finances. A person’s
knowledge in financial literacy can affect the decisions and be responsible in
handling finances. A person, especially business owners’ literacy in handling
money in the business such as the way of pricing, exchanging money, spending
money for the business purposes can be measured in its own mathematical
ability. An owner’s understanding in basic math in necessary for the business
operations, knowing how to add, subtract, multiply, divide and percentage are
essential to keep the business’ money efficiently and to meet your budget ad
income expectations. Business and mathematics are known to be connected
because business always deals with money. Being financially literate can
produce more advantages in the business’ growth and maintaining its success.
These gathered studies proved that this topic is one of the main issues in
business world.
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CHAPTER III
RESEARCH METHOD AND PROCEDURE
This chapter aims to gather pertinent data that will support the study of
financial literacy of sari-sari store owners in handling business. This chapter also
includes the research design, locale of the study, population and sampling
techniques, research instrument, data gathering procedures and the statistical
treatment.
Research Design
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This study utilized quantitative research design under non-experimental
method through data collection of financial literacy of sari-sari store owners in
handling business. This type of research design is defined as the systematic
investigation of phenomena by gathering quantifiable data and performing
statistical, mathematical or computational techniques (Surendran, 2019).
Research Locale
The study is conducted at Phase 1, Cityhomes Resortville Barangay
Langkaan 2, Dasmariñas City, Cavite. This is to conduct the data collection of
the nearest location of sari-sari stores in the proximity of the researchers.
Population and Sampling Techniques
The respondents of the study are consisted of 30 sari-sari store owners that
will be chosen purposively to represent the population and to determine the
financial literacy in handling business through non-probability sampling

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technique. Purposive sampling is a non – probability sample that is selected
based on characteristics of a population and the objective of the study
(Crossman,2019).
Data Gathering Procedure
Specific steps are employed to gather necessary data that are needed in the
study of financial literacy of sari-sari store owners in handling business. The
following are the data gathering procedures that the researchers opted to
administer:
1. An approved letter will be addressed to the principal of Immaculate
Conception Academy - West Campus, Ms. Lucilyn S. Niere for the researchers to
conduct the study.
2. A letter of consent will be addressed to the sari – sari store owners
which are the respondents of this study.
3. A permission letter will be addressed to the parents of researchers on
allowing to conduct a study in Cityhomes, Resortville.
4. The explanation of questionnaires consisting set of questions to
determine the financial literacy of sari-sari store owners in 5 - 10 minutes. The

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questionnaires will be personally distributed to the selected sari - sari store
owners.
5. After data gathering, the results will be tallied, tabularized, presented,
interpreted and analyzed by the researchers.
Research Instrument
This study utilized a self-made questionnaire. The content validity will be
checked by the research adviser. Two field experts in Social Science will
externally validate the questionnaire. It will be composed of three parts which are
the personal information of the sari-sari store owner, questions regarding the
financial literacy in handling business and the mathematical problems. The first
part will consist five questions, the second part consist of 20 items and the last
part will consist of 50 items. This questionnaire will contain different questions to
gather information about the financial literacy of sari-sari store owners in
handling business.
Statistical Treatment of Data
Descriptive statistics is utilized specifically in percentage in determining the
age, sex educational background and work experience and will employ mean to
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determine the financial literacy of sari-sari store owners and ways of handling
business of financial literate sari-sari store owners. Descriptive statistics aims to
describe the numbers of data gathered. It provides a brief summary of the
samples and the measures done on a particular study (Narkhede, 2018). Also,
inferential statistics will be applied specifically the Pearson R to determine the
significant relationship of financial literacy and handling business. Kuhar (2010)
stated that inferential statistics are often used to compare the differences
between two variables. It uses measurements from the sample of subjects in the
study to compare the variables and to make generalizations.
Formula:
Percentage: Mean:
X ∑X
×100 X=
N N
Where: Where:
X¿ Presented number X ̅= Mean
N¿ Total number of items X= All of the x-values
N= Number of items in the sample
Pearson R:
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n ( ∑ XY ) −(∑ X )(∑ Y )
r=
√ [n ∑ X 2−(∑ X)2 ][n ∑ Y 2−(∑ Y )2 ]
Where:
N= Number of pairs of scores
∑XY= Sum of the products of paired scores
∑X= Sum of the first variable
∑Y= sum of the second variable
Weighted Mean:
Weighted mean = (∑WX)/(∑W)
Where:
W= weight
X= matching value
CHAPTER IV
PRESENTATION, INTERPRETATION, AND ANALYSIS OF DATA
This chapter aims to present the answer to the specific problems of this
study. The collected data were comprehensively presented, interpreted, and
analyzed to support the researchers’ study.

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TABLE 1.1. DEMOGRAPHIC PROFILE OF THE RESPONDENTS IN TERMS
OF AGE.
AGE FREQUENCY PERCENTAGE
20 - 40 13 43.3333333
41 - 50 17 56.6666667
Total 30 100
Based on the statistical data presented in Table 1.1, the demographic
profile of the respondents in terms of age conveys that the foremost frequency
counts of the respondents which was 17 and a perceivable percentage of
56.67 was significantly dominant in the age ranging from 41 – 50 years old.
For the reason that those people have received a higher percentage, the
age ranging from 41 – 50 are the ones that like to be in their houses than
working outside. This is an indication that sari – sari store owners refrain from
finding more stable jobs to enjoy the company of their family while having their
own business and agendas at home. Furthermore, Alusen (2018) stated that
most of the sari-sari store owners’ age is between 38 to 43 years old, the later
young adulthood stage shows that most of the sari - sari store owners are
usually comfortable at home that is why it suggests that a considerable

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number of sari-sari store owners prefer staying at home while managing their
own businesses that will make their lives easier.
The subsequent age brackets presented in the Table 1.1 namely, 20 -40,
hence showed a drastic fall in frequency count and percentage distribution.
People at this age are willingly to find more stable job than being inside a
house.
TABLE 1.2. DEMOGRAPHIC PROFILE OF THE RESPONDENTS IN TERMS
OF SEX.
SEX FREQUENCY PERCENTAGE
Female 18 60
Male 12 40
Total 30 100
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Table 1.2 revealed that the demographic profile of the 30 respondents in
terms of sex indicated that the highest frequency counts and the overall
percentage of 60 was received by the female respondents. Hence, this
indicated that the female outnumbered the male respondents that garnered a
total of 12 frequency count and with a 40 percentage.
The Table 1.2 shows that female showed a higher number in the overall
quantity of the respondents. This result was supported by Alusen & Javier
(2018) on their published research where females are significantly more
involved in sari –sari store business than males.
This result shows that the owners of the sari-sari stores in Phase 1,
Cityhomes Resortville is mostly female. Many of the females are housewives
who chose to run the sari-sari store that are also the ones who were left at
their homes. This result was supported by the organization Philippine Primer
(2016), which claimed that sari-sari stores are typically owned and operated
by a mother whose sole purpose for putting up the store is to augment their
family income. Most sari-sari stores become a small family business, with
other members of the family pitching in.

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TABLE 1.3. DEMOGRAPHIC PROFILE OF THE RESPONDENTS IN
TERMS OF EDUCATIONAL BACKGROUND.
EDUCATIONAL BACKGROUND FREQUENCY PERCENTAGE
Elementary School Graduate 9 30
High School Graduate 11 36.66666667
College Graduate 8 26.66666667
Some college, no degree 1 3.333333333
Others 1 3.333333333
Total 30 100
The statistical data shown in Table 1.3, the demographic profile of the
respondents in terms of educational background conveys that the foremost
frequency count of the respondents which was 11 and a perceivable
percentage of 36.67 was significantly dominant in the high school graduate.
The table 1.3 revealed that the most respondents educational background
is high school graduate assimilated a higher percentage. Additionally, the
subsequent groups in the educational background which were namely the
elementary school graduate, college graduate, some college with no degree
and others received a less high percentage and number of frequencies.

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The table revealed that even you do not have a degree it is not a problem
in opening a small business and you are still capable of being successful in
the future. This statement was supported by Reid (2009) that entrepreneurs
starting up businesses do not necessarily need a degree. An entrepreneur
makes his or her own destiny. While having a business degree could make
some things easier, having a business degree does not guarantee business
success.
TABLE 1.4. DEMOGRAPHIC PROFILE OF THE RESPONDENTS IN
TERMS OF WORK EXPERIENCE.

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WORK EXPERIENCE FREQUENC PERCENTAG

Y E
Business-related job 7 23.33333333
Non-business-related 20 66.66666667
job
Part-time worker 2 6.666666667
Full-time worker 1 3.333333333
Others 0 0
Total 30 100
As concerned with the respondent’s work experience, the statistical data
depicted in the Table 1.4 specified that the prime frequency and percentage
was received and markedly dominant in the group of non-business-related job
with a frequency count of 20 and totality of 66.67%. Additionally, the
subsequent groups in the work experience which were namely the business-
related job, part time worker and full time worker received a less high
percentage and number of frequency in relation to the respondents.
Table 1.4 revealed that non-business related job work experience
assimilated higher percentage. This created the notion that the majority of the
respondents have non-business related job work experience before handling
their sari-sari store. As accorded by Braganza (2015), having an experience
even non-business related experience can still affect the business itself. With
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the knowledge of what is around can help the business to be a successful
one.
TABLE 2.1. MATHEMATICAL ABILITY OF THE SARI-SARI STORE OWNER
IN ADDITION
ADDITION SCORES WEIGHTED MEAN
1. 23 + 67 = 90 30 1
2. 96 + 47 = 143 29 0.966666667
3. 89 + 74 = 163 30 1
4. 69 + 23 = 92 29 0.966666667
5. 77 + 49 = 126 29 0.966666667
Total 29.4 0.98
Table 2.1 represents the mathematical ability of the sari-sari store owners
when it comes in addition. The table shows the total number of the
respondents who got the right answer on each five questions. From the data
gathered, it shows that the Question 1 and 3 got the greatest number of
scores. Question 1 pertains to the addition problem which is the 23 + 67.
While the Question 3 is 89 + 74.

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The table shows that addition can still be difficult because of some
respondents who doesn’t get the right answer on some question like the
Question 2, Question 4 and Question 5. A study by Marsh (2014), shows that
if a person’s calculation skill is good, then it can be easier and quicker to
calculate in the head. But not all the times, a person can calculate correctly
and fast when it comes to long and hard calculation specially when the
addends are getting in three or more than digits.
TABLE 2.2. MATHEMATICAL ABILITY OF THE SARI-SARI STORE
OWNER IN SUBTRACTION
SUBTRACTION SCORES WEIGHTED MEAN
1. 74 – 34 = 40 26 0.866666667
2. 64 – 87 = - 28 0.933333333
23
3. 85 – 45 = 40 27 0.9
4. 86 – 34 = 52 28 0.933333333
5. 89 – 47 = 42 29 0.966666667
Total 27.6 0.92
Table 2.2 shows the result in the mathematical ability of the sari-sari store
owners in terms of subtraction operation. The subtraction consists of five
questions. For the subtraction operation, there is no question who answered

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correctly by all the respondents. But the Question 5 which is 89 – 47, got the
highest number of right answer with a score of 29.
From the results gathered, all the respondents got mistakes from all the five
questions when it comes in calculating subtraction. Question 1, got the lowest
number of the respondents who got the answer right. Curtis (2016) supports
that people, specially businessmen from streets or house get really confused
when subtracting numbers because of the rule in subtraction which is the ‘take
away’ or easily ‘borrow one’. Those people who doesn’t have much knowledge
in subtracting mentally, the only thing that can help them in calculating is
paper, pen or calculator for an easier way.

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OWNER IN MULTIPLICATION
MULTIPLICATION SCORES WEIGHTED MEAN
1. 54 x 7 = 378 28 0.933333333
2. 86 x 4 = 344 30 s1
3. 76 x 7 = 532 28 0.933333333
4. 67 x 6 = 402 23 0.766666667
5. 78 x 3 = 234 25 0.833333333
Total 26.8 0.893333333
Table 2.3 represents the total number of the sari-sari store owners who
answered correctly in multiplication that consist of five question. Question 2,
being the highest got all 30 respondents, with a weighted mean of 1, getting
the answer in the question 86 x 4.
Multiplication only consist of 1 question who got the right answer by all the
respondents. There is also a question who only got 23 respondents to be
answered correctly. Learning basic multiplication is important for everyone
because this skill can be applied to real life concepts. As people handle
money, buy or sell products or getting portion of a certain thing, this can be a
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beginning to build up the multiplication skill (Jansen, 2015). Therefore, every
person really necessary to enhance multiplying calculation ability.
OWNER IN DIVISION
DIVISION SCORES WEIGHTED MEAN
1. 56 ÷ 34 = 1.65 22 0.73333333
2. 76 ÷ 4 = 19 20 0.66666667
3. 57 ÷ 45 = 1.27 22 0.73333333
4. 45 ÷ 3 = 15 24 0.8
5. 79 ÷ 5 = 15.8 27 0.9
Total 23 0.766666667
Table 2.4 shows the five questions in division operation to determine the
ability of the sari-sari store owners. The highest number of the respondents
getting the right answer are 27, with a weighted mean of 27, pertaining to
Question 5 which is 79 ÷ 5.
This operation got the lowest number of respondents getting the right
answer in every question. Beveridge (2011) also emphasized that division is
also often considered as the hardest of the four main arithmetic functions.
Division is not a dependent operation as this operation involves two more

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operations which is the multiplication and subtraction. That’s why people are
really having a hard time in division specially to those who aren’t
knowledgeable enough in other operations.
TABLE 3. FINANCIAL LITERACIES OF THE SARI-SARI STORE
OWNERS.
FINACIAL LITERACIES WEIGHTED VERBAL

MEAN INTERPRETATION
Money Management 3.033333333 Agree
Income 3.288888889 Agree
Savings 3.173333333 Agree
Spending 2.883333333 Disagree
Mathematical Ability 3.133333333 Agree
Total 3.096666667 Agree
Table 3 pertains to the results in measuring the financial literacies of the
sari-sari store owners. This shows that sari-sari store owners have more
literacy when it comes to the income of the business, with a weighted mean of
3.29. Financing successfully involves on making decision on how a person
make decision on the financial resources, namely the income. This is very
important since income can cover all other financial decision and transactions
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which are taxes, expenses and other indicators of financial literacy
(Accounting Dictionary, 2019).
TABLE 4. HANDLING BUSINESS OF THE SARI-SARI STORE OWNERS.
HANDLING BUSINESS WEIGHTED VERBAL

MEAN INTERPRETATION
Budgeting 3.441666667 Agree
Investment 3.611111111 Agree
Financial Management 3.088888889 Agree
Growth Planning 3.766666667 Agree
Ways of handling 3.046590038 Agree

business
Total 3.279961686 Agree
The table shows the weighted mean of five handling business indicators of
the sari-sari store owners. The table shows that the growth planning got the
highest number on the results in handling business with a weighted mean of
3.77. Wijetilaka (2014) emphasized that aside from sales, growth planning is
really efficient in most businessmen to be more focused and be more goal –
oriented or longer – term visionary when it comes to business.

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TABLE 5. THE SIGNIFICANT RELATIONSHIP BETWEEN FINACIAL
LITERACY AND MATHEMATICAL ABLITIES OF SARI-SARI STORE
OWNERS.
MATHEMATICAL FINANCIAL
ABILITY LITERACY
Mathematical 1
Ability
Financial Literacy -0.100138712 1
Total Weakly Negative
Presented in the Table 5 is the significant relationship of the financial
literacies and mathematical ability of the sari-sari store owners. The table
shows that the correlation of the two variable is -0.1, meaning there are no
correlation or significant relationship on the mathematical ability and financial
literacy of the sari-sari store owners. Attard (2017) mentioned that in Australia,
having high education in terms of Mathematics cannot affect the financial
literacy, because most number of people doesn’t know how much to value
money specially those who are starting in a young age. People may have
enough mathematics knowledge but doesn’t know how to make their own
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money, spend or save it. According to a recent infographic on financial
literacy, only about a third of Americans are considered "financially literate,"
despite the proliferation of often very expensive seminars, courses, and books
on the subject (Blacharski, 2016).
TABLE 6. THE SIGNIFICANCT RELATIONSHIP BETWEEN FINACIAL
LITERACY AND HANDLING BUSINESS.
FINANCIAL HANDLING
LITERACY BUSINESS
Financial Literacy 1
Handling Business 0.426575 1
Total Moderately
Positive
Presented in the Table 6 is the significant relationship between financial
literacy and handling business of the sari – sari store owners. As the result
shows, the correlation is 0.4, therefore it is also supposed as there is
moderate correlation at all in the financial literacy and handling business of the
sari – sari store owners. Another statement by Blackarski (2016), recently
published a study of small business owners with similar results, indicating that
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40 percent of small business owners admitted as financially illiterate – yet 81
percent handle their business' finances themselves. The researcher
suggested that taking expensive course can be a way but small business
financial literacy can be achieved on their own. Therefore, the null hypothesis,
there is no significant relationship between financial literacy and handling
business, will be accepted.

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CHAPTER V
SUMMARY, CONCLUSION, AND RECOMMENDATIONS
This chapter depicts the summary, conclusions elicited from the findings
and recommendation regarding the problems that were primarily determined in
this study which are addressed to those concerned.
Summary
The purpose of this study was to find out the financial literacy of sari – sari
store owners in handling business in City of Dasmariñas. The respondents
were 30 sari –sari store owners came from Phase 1, Cityhomes Resortville,
Langkaan 2.
For the hypothesis, it was presumed that there is no significant relationship
between the financial literacy and handling business of the sari – sari store
owners and also the mathematical ability of the sari – sari store owners.
Findings
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Based on the gathered data, the researchers acquired the following
significant findings:
1. Demographic profile of the sari – sari store owners.
a. In relation to age, the 41-50 years old obtain an overall 56.67
percentage.
b. With regards to gender, the female acquired a 60%.
c. As concerned with educational background, the high school graduate
gained 36.67%.
d. In terms of work experience, the Non-business-related job garnered a
total of 66.67%.
2. Mathematical ability of financial literacy of sari –sari store owners.
a. Mathematical ability of the sari-sari store owners when it comes in
addition when totaled are 29.4 with a waited mean of 0.98.
b. Mathematical ability of the sari-sari store owners when it comes in
subtraction when totaled are 27.6 with a waited mean of 0.92.
c. Mathematical ability of the sari-sari store owners when it comes in
multiplication when totaled are 26.8 with a waited mean of 0.89.
d. Mathematical ability of the sari-sari store owners when it comes in
division when totaled are 23 with a waited mean of 0.77.

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3. The financial literacies of the sari – sari store owners.
The financial literacies of sari –sari store owners include the money
management, income, saving, spending, and mathematical ability that
indicates that the sari-sari store owners have more literacy when it comes to
the income of the business, with a weighted mean of 3.29 when totaled are
estimated to be agree with a weighted mean of 3.10.
4. Handling business of the sari –sari store owners.
Handling business of the sari – sari store owners include the budgeting,
investments, financial management, growth planning, and ways of handling
business that indicates that the growth planning got the highest number on the
results in handling business with a weighted mean of 3.77 and when totaled
are estimated agree with a weighted mean of 3.28.
5. The significant relationship between financial literacy and mathematical
abilities of the sari – sari store owners.
There is no significant relationship between the financial literacies and
mathematical ability of the sari-sari store owners with a total of
-0.100138712 which indicates that it is weakly negative.
6. The significant relationship between financial literacy and handling business
of sari – sari store owners.

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As the result of the study, the correlation is 0.426575, therefore it is also
supposed as there is moderate correlation at all in the financial literacy and
handling business of the sari – sari store owners.
Conclusion
The conclusion presented were grouped by the findings of the study:
1. Demographic profile of the sari –sari store owners.
a. The researchers concluded that

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Recommendations
The summary of the results and conclusions of this study propose the
following suggestions:
To sari – sari store owners. Sari –sari store owners are encouraged to be
active in your business. Spend your money wisely. Think about the long-term
benefits and drawbacks of purchases, put money on your credit card if you
can afford to pay it off each month, and start budgeting. If sari –sari store
owners have a business plan, they should also have a budget. A budget is
guideline that helps you fix any holes in your cash management system.
Having knowledge about financial literacy is important but if you do not have
one, then it is okay to pursue a small business. Sari –sari store owners are
encouraged to know the ways of handling business for the betterment of the
business. Knowing the right ways of handling business helps the business to
run smoothly.
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To Financial literate and non-literate people. Financial literate people
must enhance their knowledge about financial literacy. As the result of this
study only 26.67% are college graduate but not literate enough. Non-literate
people are suggested to be motivated and to have knowledge about financial
literacy for them to be successful in the near future. The lack of financial
literacy may lead to making poor financial choices that can have negative
consequences on the financial well-being of an individual but it depends in the
people who are handling the business.
To students. To initiate a good success in handling a business, students
are encouraging to take courses line with business, if the students are going to
handle a business and taking note that financial literacy is important because
it equips us with the knowledge and skills we need to manage money
effectively. Without it, our financial decisions and the actions we take or did
not take lack a solid foundation for success.
To future researchers. The study emphasized on the financial literacy of
the sari –sari store owners in handling business. The future researchers can
study the overall process of financial literacy and handling business.
Contrasting and blending results of the future researchers’ study with the
study of this research is encourage for further update on what is the status of
this study in relation to the other matters, as well increase knowledge of the
readers when it comes to financial literacy and handling business.

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Immaculate Conception Academy 1

THE PROBLEM AND ITS BACKGROUND

Financial literacy is important in today’s world. Awareness of money

necessary knowledge to take charge of finances. Financial literacy is defined as

used definitions of financial literacy imply the ability of individuals to obtain,

understand, and evaluate information required to make decisions to secure the

financial future as best as possible. People are living in an age of unprecedented

Financial education increase knowledge understanding of a business owner.

Financial literacy is the education and understanding of various financial areas

including topics related to managing personal finance, money and investing in

to fulfillment and happiness, however, sometimes it is mismanaged. After

that absent demonstrated ability to apply financial knowledge, an individual

cannot be regarded as being financially literate. There is a greater need for

financial education in an increasingly global and unforgiving economy. For

example, we live in a world of economic uncertainty that requires individuals to

be cognizant of what is happening in the economic world in order to develop

wealth accumulation (White House, 2012). An increasingly changing financial

atmosphere that places more financial decision-making tasks on the consumer

Financial literacy is the mastery of a set of knowledge, attitudes and

behaviors. It was defined by Nkundabanyanga and Kasozi, (2014), as the ability

of an individual to make informed judgement and take effective decisions

person also possesses a facilitating attitude to the effective and responsible

distinguish financial choices, discuss money and financial issues without

discomfort. It has assumed the role in allowing people to make responsible

operations of organizations in the complex and dynamic environment today.

interested in finding effective approaches of improving financial literacy of per

aim of providing various learning opportunities.

Financial literacy has got an increasing interest in developed countries

because of the increasing complexity of financial markets, increasing cost of life,

the shift of retirement responsibility from government to individuals, which all

demand personal financial management capability in individual and households

(Refera, Dhaliwal, & Kaur, 2016).

of financial literacy amongst their nationals. Major issues such as improper

sufficient proof that people who under-save neglects to settle on savvy

seems, by all accounts, to be straightforwardly associated with self-gainful

financial behavior (Hilgert, Hogarth and Beverly, 2003).

businesses in their developmental procedure. Organization for Economic

Cooperation and Development (OECD) defines financial literacy as a blend of

awareness, knowledge, skill, attitude and behavior important to settle on solid

financial decisions and eventually accomplish individual financial well-being

(International Network on Financial Education, 2011).

Background of the Study

be successful without the proper process of managing it. Handling business

requires the effective management of money, product expenses, environment of

combination of education, knowledge and expertise of the owner to run the

the surroundings and what’s happening to the business.

Handling business is difficult for those sari-sari store owners without

as a basic apparatus for development with issues identifying with budgeting,

individuals, households and businesses in their developmental procedure. Small

business performance relate to each other.

In developing countries, micro and small enterprises (MSEs) make up the

development agents in society. Worldwide, MSEs offer the possibility of earning

income, training, work experience and employment to millions of poor people.

level of productivity, income and employment (Berner, Gomez & Knorringa,

Having enough knowledge about financial management can be a key to handle a

Statement of the Problem

in handling business. Therefore, the study attempted to answer the following

1. What is the demographic profile of the sari-sari store owners?

2. What are the mathematical abilities of financial literacy of sari-sari store