FINANCIAL LITERACY AND SPENDING HABITS

OF GRADE 12 STUDENTS OF PANTUKAN

NATIONAL HIGH SCHOOL

______________________________

A Quantitative Study Presented to the Research Committee

of Pantukan National High School
Pantukan, Davao de Oro

______________________________

In a Partial Fulfillment of the Requirements in

Inquiries, Investigation and Immersion

By:
Anuada, John Lister
Atonducan, Andrea
Mira, James

January 2023
 CHAPTER 1

INTRODUCTION

One of the difficulties that students have is controlling their spending habits,

and how they handle their money will affect their financial situation in the near

future. During their school years, the majority of students experience financial

freedom without the oversight of their parents (Sabri, et al., 2020). High school

students’ spending habits are a dynamic phenomenon that fall under the category

of financial behavior. Planning and managing their finances is a massive

undertaking for students who are experiencing freedom from the safety of parents

and guardians for the first time and making financial decisions on their own for the

first time. When expenses vastly outweigh available revenue, this becomes

increasingly difficult (Nadome, 2016).

Financial literacy is a substantial global topic to help prevent financial

hardship (Potrich & Vieira, 2018). Meanwhile, according to Chong et al. (2021),

financial literacy is an individual’s ability to manage personal finances effectively,

budgeting, and investing. Countries like Australia, Austria, the USA, Singapore,

the Philippines, and Malaysia have implemented a strategy related to financial

literacy to improve the financial welfare of their people (Arofah, 2019). In

Indonesia, financial literacy is a vital life skill (OJK, 2017), yet often overlooked by

the youth (Jayaraman & Jambunathan, 2018). Whereas, it heavily influences

financial prosperity and serves as an essential concept for college students

establishing their financial habits (Aydin & Akben, 2019). Having sufficient

financial literacy helps people make sustainable financial decisions for their future

well-being (Kadoya & Rahim Khan, 2020).

2
 With financial literacy positively influencing individual spending habits

Andarsari and Ningtyas (2019), age-wise, an individual begins to arrange their

finances in their 20–30s (Subiaktono, 2015). By gaining financial knowledge as

early as possible, they tend to develop spending habits and well-being going

forward (Sohn et al., 2015). Conversely, financial illiteracy can result in unwise

spending. Susan (2018) found insufficient financial literacy among college

students. Correspondingly, Chen and Volpe (2015) also discovered a similar

finding, with the lack of personal finance education in universities as the

underlying motive. A comparable discovery from Hamdani (2018) and Ulfatun,

Udhma, and Dewi (2016) reveals low financial literacy of college students

majoring in economics despite their focus of study. As a matter of fact, higher

learning is expected to improve the students’ financial literacy, either in cognitive

or behavioral aspects (Widayati, 2015). By obtaining financial knowledge as early

as possible, will tend to develop positive spending habits and welfare in the future

(Nguyen & Nguyen, 2020).

The issue with spending habits among Grade 12 students of Pantukan

National High School is that not all of them are able to limit themselves from

buying unwanted items that causes overspending. They need to control their

spending on those things that they want and divert themselves to buy the

important things that they need, especially basic necessities. They also need

guidance from their parents, and also lessons from their teachers about budgeting

so that they can come up with positive spending habits.

3
 The researchers have not come across a study on Financial Literacy and

Spending Habits of Grade 12 students in Pantukan National High School. It is in

this context that the researcher is interested to determine whether financial literacy

affects financial behavior as this can raise concern to the intended beneficiaries of

the study and possibly develop intervention schemes to improve teaching-learning

process, thus, the need to conduct this study.

Research Objectives

This study was conducted to determine the significant relationship of

Financial Literacy and Spending Habits of Grade 12 Students in Pantukan

National High School.

Specifically, it seeks to answer the following research objectives:

1. To determine the students' level of financial literacy in terms of:

1.1. Financial Knowledge

1.2. Awareness

2. To determine the students’ level of spending habits in terms of:

2.1. Personal needs

2.2. Academic purposes

2.3. Food

2.4. Transportation

3. Is there any relationship between Financial Literacy and Behavior of Grade

12 Students in Pantukan National High School?

4
Research Hypothesis

The following hypothesis will be tested at 0.05 level of significance. There is

no significant relationship between Financial Literacy and Spending Habits of

Grade 12 Students of Pantukan National High School.

Review of Related Literature

This section contains all of the necessary and relevant studies,

investigations, and literature addressing issues related to customer relationship

management and customer retention. There are nine parts of this section namely:

Financial Literacy as the Independent Variable, Financial Knowledge and

Awareness as the indicator of Independent Variable, the Spending Habits as the

Dependent Variable, Personal needs, Academic purposes, Food, and

Transportation as the indicator of the Dependent Variable, and Correlation

between Measures.

Financial Literacy

Financial literacy has frequently been employed as a synonym for “financial

education”. The fact that financial literacy has a deeper meaning than financial

education, however, makes this construct conceptually distinct. Therefore,

employing the two terms synonymously to indicate the same meaning could result

in confusion (Mendes-da-Silva, 2016). With the recent shift to digital finance, the

crisis of trust in financial institutions and financial fraud practices, individuals are

now seeking to obtain more information before deciding whether to buy financial

products, taking responsibility for their own decisions, and knowing the

consequences of having inadequate knowledge while dealing with financial

5
matters. Research on the concept of financial literacy has, to date, been

increasingly diverse in its explanation of the multi-variables behind financial

literacy. It has covered not only financial knowledge, but also other variables, such

as financial awareness and financial skills (Dewi, et al., 2020).

Financial literacy level in Indonesia is still at 29.7%. This means they have

no understanding nor trust in financial institution‘s services, financial products and

services and have no skills in using these financial products and services.

Empirical studies find that financial literacy has a positive impact on an individual’s

financial behavior and financial status. Literate individual will be able to do well in

such things as: budgeting, saving, controlling spending, managing debts,

managing household finance, participating in the capital market, purchasing high-

risk investment assets, and planning retirement (Bianchi, 2017). From the

perspective of business, the more literate an individual is, the more likely for them

to access external funding and develop their businesses. In other words, the

greater an individual‘s financial knowledge the wiser their financial behavior would

be (Hussain, et al., 2018).

Another equally important aspect in financial literacy is knowledge on

interest rates. In this aspect, if entrepreneurs decide to take a loan, when they

understand the interest concept well then, they are more likely to choose the loan

with relatively low interest. A non-literate person will be more likely to take on debt

at high interest rates (Lusardi & Tufano, 2015). Financial literacy impacts how a

person handles their finances and deals with financial difficulties, but it also affects

the person’s capacity to make financial decisions for themselves about

6
investments, financial risk tolerance, saving, borrowing, and lifestyle selections.

Financial institutions, including banks and non-bank financial institutions, are

influenced by financial literacy in how they run their operations and the goods they

offer to investors and depositors. All of the aforementioned have an effect on

economic stability and growth (Sarigül, 2016).

Financial Knowledge

Financial knowledge is the ability to make sound financial decisions.

People’s perceptions of their own financial literacy are based on what they believe

to be their current degree of knowledge. A person’s level of understanding of

different aspects of financial markets and products, such as numeracy, assets,

debts, savings and investments, the value of money, inflation, compound interest,

and risk diversification, can be used to gauge their level of financial knowledge

(Khan, et al.,2017).

Adolescents are beginning to acquire financial knowledge and gain

experience of the financial environment that they and their families inhabit.

Fifteen-year-old students are likely to have been shopping to buy household

goods or personal items; some will have taken part in family discussions about

money and whether what is wanted is actually needed or affordable; and a

sizeable proportion of them will have already begun to earn and save money;

many of them will have access to payment facilities on line or though mobile

phones (CFPB, 2016).

7
 Some previous studies conclude that the best way of fixing behavior at

older age is by teaching a good financial education since childhood. Knowledge

on financial literacy ought to be given as early as possible to allow them to apply it

better in their daily life (Xiao & Porto, 2017).

Awareness

In increasingly global economic development, financial awareness is one of

the elements needed to create financial stability. Financial awareness is part of

financial literacy and is an important factor that influences perceived knowledge

which ultimately influences decision-making. It also indicates that financial

awareness of financial products influences the financial decision (Khan, 2015).

Financial awareness is the first of three elements of financial literacy, and it is

essential to a student’s financial success since it relates to the awareness of one’s

financial transactions and to one’s good or bad financial habits. People with a high

level of financial literacy were thrifty and lived within their means (Hoyt, 2016).

Financial literacy corresponds to the awareness of financial concepts and

the ability to make informed, assertive, and practical financial decisions. To

effectively manage financial resources and make decisions regarding short-term

or long-term investments, taking into account changes in the economic world and

its situations, requires the ability to use financial knowledge, make informed

decisions, and comprehend key financial concepts. However, the idea of financial

literacy relies on a modified strategy or is a part of a comprehensive process for

consumer awareness and protection (Muizzuddin, et al., 2017).

8
 Financial awareness is necessary to achieve and maintain well-being

among people in general, and young people in particular, in the current state of

the economy. To increase their capacity to make critical financial decisions, young

people must acquire the appropriate financial knowledge and skills (Danes & Hira,

2015). Children and adolescents who acquire early financial education and

awareness from their family at home can later develop stronger financial skills and

make wiser financial decisions (Jorgensen, 2017).

Spending Habits

Spending habits play a key role in the sustainability of the finance

resources among youth and it is an important variable in financial judiciousness

(Pillai, et al., 2020). Young adults have a propensity to spend their money on

quick purchases rather than long-term financial considerations like investment

(Shaari et al., 2016). He found out that poor spending habits occasioned by lack

of financial management skills creates problems for individuals in the future (Idris,

et al., 2016).

The needs of students nowadays have undoubtedly expanded since they

now require vehicles, laptops or desktop computers for homework, as well as

hand phones and other non-essentials. Additionally, rising student costs are a

result of technological advancements. In contrast to female students, who are

more likely to purchase clothes, bags, and shoes in order to appear presentable

while attending classes, male students are particularly drawn to expensive devices

(Shahryar & Tan, 2016). Due to the quick shift of the highly competitive global

business environment, spending habits cannot be separated from peoples’ daily

9
lives. As a result, making decisions has grown more difficult. Due to their exposure

to advertising efforts, internet providers, and electronic shopping options, this

phenomenon has an impact on the lives of the students (Poh, 2016).

Spending habits are habits issues or spending money. These spending

habits will lead to a high level of consumption and impact bad for financial

management (Masrohatin & Khodijah, 2019). In his study, it was discovered that

the most apparent variables of spending habits were food, academic purposes

(such as books, tuitions, projects and school supplies), transportation, and

personal needs (such as gadgets, accessories, cosmetics, apparels and

footwear). From the data analysis, he inferred a significant dissimilarity in male

and female youths’ spending patterns. The researcher also made it clear that

there was a positive association between the youths’ pocket money and spending

habits (Paulin, 2018).

Personal needs

According to Chhabra (2016), the spending habits of students with various

educational backgrounds vary significantly. The majority of their money is spent

on cosmetics, hygiene products, mobile phone accessories, and shopping. All

levels of education together spend the most money on shopping. Results of a

study indicate that gender has a significant impact on spending habits. Women

typically spend money on clothing and other items for appearance, whereas men

spend money on technology, games, and amusement (Villanueva, 2017).

10
 Women have been socialized to associate satisfaction with shopping.

Therefore, compared to males, they are more likely to display spending habits,

particularly obsessive shopping. According to this result, female spending may

only be higher than male expenditure when it comes to purchasing items for

personal appearance, such as clothing, shoes, accessories, and cosmetics

(Roberts, 2015). A survey of young people’s spending habits in Guangzhou, Hong

Kong, and Macau revealed that they spend their money primarily on

entertainment, clothing, and accessories. In order to acquire enough money to

spend, young people in Hong Kong might borrow from friends or take up part-time

jobs (MSE, 2016).

The cost of attending college has increased as a result of technological

advancements. While female students prioritize clothes, bags, and shoes because

they want to appear good while attending class, male students are drawn to

purchasing expensive electronics in particular (Teck, 2015). Due to the easy

access to information at their fingertips, consumers between the ages of 17 and

25 spent more money on clothing and developed a greater brand awareness

(Kamath, 2016).

The NSSO poll revealed that Indians appeared to be spending more money

on trendy clothing, technology, and accessories. Since 75% of Indians buy ready-

made clothing, there has been a significant transformation in the industry. Over

the past 11 years, there has also been a significant increase in the demand for

vehicles and motorcycles (Birari & Patil, 2015).

11
 The majority of the excess cash that students have Is spent on food, but

significant sums are also spent on cell phone service, entertainment, and apparel.

Students nationwide spend a lot of money on clothing and footwear. Many of

these younger buyers have started to shop like celebrities with unlimited income,

despite the fact that some are savvy and try to discover their preferred fashions on

sale somewhere along the road. Some experts have suggested that this might be

the case since students now have greater access than ever before to the

wardrobes and fashions of celebrities, and some of these products are affordable

(Shahryar & Tan, 2016).

Academic purposes

Recent studies state the price of college has significantly increased

recently. The cost of many items, including tuition, books, and fees, has increased

by 5 to 10% yearly. However, the majority of full-time students receive financial

aid, grants, and loans to help defray the expense of college that students only

cover around one-third of the true cost of a college education (Sorooshian, et al.,

2015).

In terms of expenses for academic purposes, Bona (2017) came to the

conclusion that most college students spend more money on their projects and

assignments. This finding is consistent with the findings of the study, which

showed that 12–23% of monthly allowance is set aside for school supplies and

study materials, placing these costs as the respondents’ second-highest priority

(Bona, 2017). As a student, you may need to spend money on anything other than

12
just school materials, such as wants or needs. The majority of people advise

parents to plan long-term for their teen (Caldwell, 2017).

Food

Consumers in lower socioeconomic classes spend a larger percentage of

their income on food items, and such high-status customers always read the price

labels of food items before making a purchase. 77% of the respondents stated

that they would be willing to pay money to try new foods. The upper socio

economic segments of customers, meanwhile, carefully analyze the components

in meals before purchasing (Koc & Ceylan, 2017).

One’s behavior towards spending on eating is dependent on his or her

income or allowance, thereby aligning purchase behavior with budgeting

expenses (Homburg, et al., 2015). Fast food or quickly available food would be the

norm in the United States, where people work long hours. The majority of a

person’s meal expenditure is spent at fast food establishments, restaurants, or

canteens (Bhuyan, 2015). However, university students choose to buy meals at

the school or bring their own food to dine there (Felinic, et al., 2015).

The primary basis for the satisfaction of a typical student consumer Is the

affordability of the foods (Azanza, 2015). People in lower socioeconomic brackets

typically favor purchasing food that is more affordable. Compared to eating at

home, packing a lunch, or visiting fast food restaurants, students may think that

dining at carinderias is more convenient (Srivastava, 2015). However, due to quick

service and affordable prices, the current generation of college students has

13
discovered the cost of eating in fast food restaurants as well (Kim et al., 2015).

Additionally, it stated that a student’s socioeconomic position can affect the fast

food or restaurant they choose to eat at. Thus, the cost of food items and each

student’s budget affect the food they eat (Deliens, 2015).

Transportation

The transportation of students to and from school is one of the important

issues facing society. Many students must frequently commute to and from

school. This can be done through a variety of modes, including walking, public

transportation, private vehicles, and school transportation (Kotoula et al., 2017).

The primary consequence of raising transportation costs for students is that it will

reduce their allowance, which received the highest response from the

respondents. According to the majority of responders, this issue will result in a

budget shortage. The majority of respondents agreed that if the students save

money and handle their allowances well, the problem will be solved and

conquered (Abaricia, 2018).

It was observed that respondents’ spending habits are also careless when

it comes to transportation. Students’ main concern is how much money they would

be spending on transportation each day. It is clear that the respondents prefer to

commute to school since it is more convenient. According to expectations,

commuters paid more for transportation (Abawag et al., 2019). Another study

concluded that transportation is essential for students, study shows 10% of the

respondent’s monthly allowance is spent for fare and gas consumption showing

that the respondents are willing to spend such for transportation (Bona, 2017).

14
Correlation between Financial Literacy and Spending Habits

One’s individual spending habits are greatly influenced by financial literacy.

People with little financial literacy may make poor financial decisions including

taking on a lot of debt, spending more than they earned, or overspending on

pointless items or services. Higher levels of financial literacy and understanding

result in more savings and spending (Azmi & Ramakrishnan, 2018).

Zahra & Anoraga (2021) examines consumer behavior students discover

lifestyle and financial literacy influences students’ consumptive behavior. While

Rahayu et al. (2022) examine the behavior of spending behavior on the millennial

generation is influenced by financial literacy. More complex research is carried out

Kamil & Istianingsih (2020) on users’ mobile payment in Jakarta, Bogor, Depok,

Tangerang and Bekasi (Jabodetabek) were found to be directly influenced by

lifestyle and financial literacy on spending habits showed significant results.

However, indirect influence for each different independent variable. Lifestyle

shows an indirect influence through the intensity of using mobile payment services

while for financial literacy there is no indirect effect through the intensity of use of

mobile payment service.

15
Theoretical Framework

Conventional microeconomic theory stated that individuals make rational

decisions about saving and spending so as to have optimal financial wellbeing

over a lifetime. This theory also noted that individuals have the financial

knowledge and awareness that they need, as it determines the presence of

financial literacy. (Modigliani & Brumberg, 1954). According to Friedman (1957),

the theory states that financial literacy has the ability to collect important

information, and also differentiate between diverse financial options, discussing

financial issues, planning and proficiently answer that affect financial decision

making.

Maslow’s hierarchy of needs is a motivational theory in psychology that

includes a five-tier model of human needs that is frequently represented as levels

within a pyramid. Before people can attend to needs higher up in the hierarchy,

needs lower down must first be met. The hierarchy of wants goes from

physiological to safety to love and belonging to esteem and self-actualization, in

that order (Maslow, 1943). Maslow’s Hierarchy of Needs provides a framework to

understand how students’ spending habits are influenced by their different levels

of needs. By recognizing the importance of fulfilling basic physiological and safety

needs, students allocate their financial resources to their personal needs,

academic purposes, food, and transportation as the basis for the presence of their

spending habits. As these fundamental needs are met, they can then address

higher-level needs related to social connections, self-esteem, and personal growth

(McLeod, 2018).

16
 According to the life-cycle theory, it is potentially rational to overspend while

schooling. The rationality behind deficit spending arises from the ability to

calculate future periods of earning and saving in order to compensate for current

and future spending. Many students’ deficit spending habits may be attributed to a

lack of education about financial literacy or having a lower incentive to follow a

budget (Modigliani, 1975). Warneyrd (1999) explains that these periods of deficit

spending are calculated rational decisions, made so that people can smooth their

spending habits: “[the life-cycle hypothesis] posits that consumers dissave early in

their lives in anticipation of future earnings, save when their earnings are high,

and, finally, dissave again when they are older and earnings are lower.”

Controlling spending in this manner requires financial literacy that is not only

difficult for most people to achieve, but requires complex calculation: “these

models assume that consumers have separate utilities for consumption in each

period and that they use discount factors that weight future consumption less than

current consumption” (Wilkinson, 2008).

17
Conceptual Framework

Figure 1 states the conceptual framework study where the independent

variable (Financial Literacy) is placed on the left side with its two indicators

(Financial Knowledge and Awareness). On the other side is the dependent

variable (Spending Habits) with its four indicators (Personal needs, Academic

purposes, Food, and Transportation).

The researchers desire to find out about Financial Literacy and

Financial Behavior of Grade 12 students in Pantukan National High School. The

researchers produced a model that demonstrates linkages and relationships

between variables by focusing on the claims, hypotheses, and studies in the

preceding paragraphs.

18
Financial Literacy Spending Habits
 Financial  Personal needs
Knowledge  Academic
 Awareness purposes
 Food
 Transportation

Figure 1. Conceptual Paradigm of the Study

19
Significance of the Study

This research study is beneficial to Grade 12 students of Pantukan National

High School since the study aims to establish the significant relationship between

financial literacy and financial behavior of the students. In addition, it helps them to

comprehend the influence of having financial knowledge, financial skills, and

awareness as the indicators of Financial Literacy to their Spending Habits. This

study may guide the school administrators, teachers, students, parents and other

stakeholders, and future researchers in understanding the benefits of financial

literacy.

Furthermore, this study expands the researchers’ knowledge and deepens

their understanding of the concern regarding financial literacy and how it affects

the spending habits of Grade 12 students in Pantukan National High School.

School Administration. The researchers hope that this study will serve as an

enlightenment to the school administrator and that it will contribute to their

knowledge. This research aims to contribute crucial information regarding the

importance of financial literacy to the student and hope that this research study

will solve the existing issue.

Teachers. Many of the students were observed overspending on those unwanted

things that are not needed that causes a financial crisis. This study will help the

teachers in guiding and helping the students learn about financial literacy.

20
Students. This study will make the students understand more about financial

literacy that will affect their financial behavior, and know how to maximize their

knowledge in finance and spending in the usage of learning in school, home, or in

other places.

Parents and Other Stakeholders. Like other beneficiaries, the parents and other

stakeholders will comprehend and understand why the students need to maximize

their knowledge, skills, and awareness in financial literacy that affects their

spending habits and in that way those parents and other stakeholders can be

aware of the beneficial effects of these two variables.

Future Researchers. Finding related literature can be challenging so this study

will serve as a guide to the upcoming researchers. This study is a credible and

reliable source that will navigate them to enlightenment.

21
Definition of Terms

Financial Literacy – is the ability to use knowledge and skills to manage financial

resources effectively for a lifetime of financial well-being (Hung, et al., 2009). In

this study, it refers to the possession of the set of skills and knowledge that allows

an individual to make informed and effective decisions with all of their financial

resources. The indicators of Financial Literacy are Financial Knowledge and

Awareness.

Spending Habits – is the habit of spending money that will be creating

consumptive behavior and problems in financial management (Andriani, 2018). In

this study, it is the way you are used to paying money for things, the things you

spent money for and how much you are used to spending. The indicators of

Financial Behavior are Personal needs, Academic purposes, Food, and

Transportation.

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 CHAPTER 2

METHOD

Included in this chapter are the presentation of research design, research

subjects, research instruments, data gathering procedure and statistical treatment

of the data.

Research Design

The researchers shall utilize the correlational method of investigating the

conditions involved in the study. According to Schober (2018), correlation is the

measurement of the link between variables. The correlation method aims to

identify variables that have some kind of relationship to the extent that one change

causes the other. This type of research is descriptive, unlike experimental

research that relies entirely on scientific methodology and hypothesis. The

researchers shall use this method to determine if there is a significant relationship

between the financial literacy and spending habits of Grade 12 students in

Pantukan National High School.

Research Locale

The research will be conducted from May to June 2023 in Pantukan

National High School – Senior High School Department at Bonifacio St. Kingking,

Pantukan, Davao de Oro, Philippines.

23
Figure 2. Satellite Map of Pantukan National High School

24
Population and Sample

The researchers used random sampling and attained the respondents of

the study that are composed of two hundred thirty-six (236) Grade 12 students of

Pantukan National High School. Random sampling is one of the sampling

techniques in which everyone in a population has an equal chance of being

selected into a sample using Slovin’s formula with a confidence level of 95% and a

margin error of 5%.

The researchers shall use the survey, a method of gathering information

using relevant questions from a sample of people with the aim of understanding

populations as a whole. As anyone involved in the study, surveys are an essential

source of information and insights. The researchers shall survey students from

Pantukan National High School. The respondents are Grade 12 students because

they know more about financial literacy that affects their spending habits.

25
 Distribution of the Study
RESPONDENTS POPULATION SAMPLE PERCENTAGE
Datu Bago 45 18 8%
Diwan 60 25 10%
Dumatus 56 23 9%
Indarapatra 57 23 10%
Kampilan 49 20 8%
Pandita 44 18 8%
Mantiris 40 16 7%
Raja Muda 53 22 10%
Ruma Bichara 47 19 8%
Sandawa 39 16 7%
Timuway 39 16 7%
Torogan 48 20 8%
TOTAL 577 236 100%

Research Instrument

The questionnaire that was used in this study is an adapted and modified

questionnaire from the study of Bona (2018) and Fernandez, et al. (2019). These

two previous studies have questionnaires that determine the presence of its

variable using a 5-point Likert scale. A Likert scale is a rating scale used to assess

opinions, attitudes, or behaviors. Likert scales are popular in survey research

because they allow you to easily operationalize personality traits or perceptions

(Bhandari, 2022). The survey shall be conducted by the Grade 12 students of

Pantukan National High School.

26
 Set Parameter for Independent Variable

Range of Mean Level Description

This means that financial

4.50 – 5.00 Very High
literacy of a student was
very much evident.
This means that financial
3.50 – 4.49 High
literacy of a student was
much evident.
This means that the
2.50 – 3.49 Moderate
financial literacy of a
student was fairly evident.
This means that the
1.50 – 2.49 Low
financial literacy of a
student was less evident.
This means that the
1.00 -1.49 Very Low financial literacy of a
student was very less
evident.

Set Parameter for Dependent Variable

Range of Mean Level Description

This means that the

4.50 – 5.00 Very High spending habits of a
student were very much
evident.
This means that the
3.50 – 4.49 High spending habits of a
student were much
evident.
This means that the
2.50 – 3.49 Moderate
spending habits of a
student were fairly evident.
This means that the
1.50 – 2.49 Low
spending habits of a
student were less evident
1.00 -1.49 Very Low This means that the

27
 spending habits of a
student were very less
evident

Data Collection

The researchers shall ask the permission of the School Principal and the

Assistant School Principal of Pantukan National High School, as well as the

Senior High School Research Coordinator through the letter of request. Prior to

the conduct of our research study through survey, the researchers shall give

proper directions and orientation to the respondents of the research study. These

respondents shall understand that their participation is a vital aspect of the study.

The respondents will be the Grade 12 students of Pantukan National High

School. The researchers will gather the data through a survey using a google

form. After 1 to 2 days of disseminating the link, the researchers shall gather the

response. Those who have no access to the internet shall be given a hard copy of

the survey questionnaires during the face-to-face classes and shall be given

ample time to answer the survey questionnaires.

The respondents shall answer questions related to financial literacy, and

queries related to their spending habits. The survey questionnaire is inspired by

the Likert scale. A Likert scale is commonly used to measure attitudes,

knowledge, perceptions, values, and behavioral changes. A Likert-type scale

28
involves a series of statements that respondents may choose from in order to rate

their responses to evaluative questions (Vogt, 1999).

Statistical Tool

The following statistical tools were used in the computation of data as well

as in testing the hypothesis at 0.05 level of significance.

Mean. The mean (aka the arithmetic mean, different from the geometric

mean) of a dataset is the sum of all values divided by the total number of values.

It's the most commonly used measure of central tendency and is often referred to

as the “average.” It is used to determine the level of financial literacy and the level

of spending habits of Grade 12 students in Pantukan National High School.

Pearson-r. The Pearson correlation coefficient (r) is the most common way

of measuring a linear correlation. It is a number between –1 and 1 that measures

the strength and direction of the relationship between two variables. When one

variable changes, the other variable changes in the same direction. It was utilized

to determine the significant relationship between financial literacy and spending

habits of Grade 12 students in Pantukan National High School.

29
Ethical Consideration

In the ethical consideration, the researchers should follow the rules of

behavior, what is right and wrong in the conduct of the study. The researchers

prepared a questionnaire for the participants/respondents and they will be going to

answer the following questions. The identities of all respondents are securely

private as a sign of respect for their privacy and their protection. The ones that can

see their answers are only the researchers of this study to avoid discrimination.

The respondents can decide if they will put their real names or they will remain

anonymous. The respondents/participants are only voluntary and willing to be part

of the survey. The researcher provides the question that the participants can only

rate their answers from 1 to 5 (strongly agree – strongly disagree). Before the

researcher conducts the survey, they first ask permission from the participants if

they are willing to be a participant in the study and also ask permission from the

participants’ employer to perform the survey.

30
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41
 FINANCIAL LITERACY AND SPENDING HABITS OF GRADE 12 STUDENTS

OF PANTUKAN NATIONAL HIGH SCHOOL

Dear Research Respondents, we will make sure that all your answers and the

data stated in this questionnaire will be confidential. Rest assured that the

Researcher will uphold the Republic Act. 10173, the Data Privacy Act of 2012. If

the Researcher discloses any of the data, he/she will be punished under the said

law.

Name (Optional):___________________________ Section:____________

Age:________ Gender:__________

Directions: Please respond to the questionnaire honestly. Rest assured that

the answers will be dealt with confidentiality. Please use the scale below.

5 Strongly Agree (Which means that you strongly agree with the

statement)

4 Agree (Which means that you agree with the statement)

3 Neither Agree (Which means that you neither agree nor disagree

nor Disagree with the statement)

2 Disagree (Which means that you disagree with the statement)

1 Strongly (Which means that you strongly disagree with

Disagree statement)

42
43
(Questionnaire for Independent Variable) FINANCIAL LITERACY

FINANCIAL KNOWLEDGE 5 4 3 2 1

1. I can prepare my weekly/monthly budget.

2. I often discuss budgeting matters with my

parents or guardians.

3. I always think and plan for my daily expenses.

4. I understand how to manage my borrowed

money when there’s something I want to buy.

5. I have no difficulty in managing my money or

allowance.

AWARENESS

1. I pay my bills, payments or debts on time.

2. Before I buy something I carefully consider

whether I can afford it

3. I keep a record of my expenses.

4. I set aside money in advance for the things I

want to buy.

5. I am self-disciplined in saving a portion of

money from my allowance.

44
(Questionnaire for Dependent Variables) SPENDING HABITS

PERSONAL NEEDS 5 4 3 2 1

1. I compare prices before I buy clothes, shoes,

and cosmetics.

2. I prefer buying generic clothes, shoes, and bags

because it is cheaper than branded ones.

3. I wait for clothes, bags, shoes, and cosmetics to

be on sale before buying.

4. I usually buy pre-loved items such as clothes,

shoes, and bags.

5. I buy the latest model of cellular phones and

other gadgets.

ACADEMIC PURPOSES

1. I compare prices before I buy school supplies.

2. I spend a large percentage of my money on

photocopies or printed handouts.

3. I spend my money on computer shops when

doing my school requirements.

4. I prefer to buy school supplies from popular

store such as National Bookstore

5. I spend money on mobile data load or prepaid

wifi load.

FOOD

1. I compare prices before I spend money on food.

45
 2. Creating a weekly budget for food expenses.

3. I bring my own baon to school instead of buying

food from the canteen.

4. I dine-out with friends in restaurants and other

fast-food chains

5. I prefer eating meals in our house, boarding

house, or apartment.

TRANSPORTATION

1. My parents will always fetch me in going to

school and after schooling.

2. I always take a walk with my classmates when

school is done.

3. I will ride on public transportation even if the

destination is very near.

4. I go out with my friends.

5. I love to travel and see new places.

46