FINANCIAL LITERACY SKILLS IN RELATION TO STUDENTS’

SPENDING HABITS
MAA NATIONAL HIGH SCHOOL
A Research presented to the faculty
and staff of Maa National High
School, Davao City

Researcher:

February 2024
 Introduction

Many researchers tried to define financial literacy in the specific framework of

modern world, so, as Chen & Volpe (1998) discovered, in the current economic climate

of global recession, the management of personal spending and savings is more

important than ever. University students, as a special consumer group, have significant

effects on leading trend and consumption structure. They pointed out that many of

researchers perceive them as a consumer group for which is necessary to provide

specific offer to satisfy their needs and wants (Hadzic & Poturak 2010). Also, some

earlier statistics prove that poor financial knowledge is the main cause students are

facing different financial problems. Despite all other difficulties in managing their budget

with expenses, lack of financial literacy is the leading one.

Financial literacy is the ability to understand knowledge and capability in

managing financial resources (KBBI online, 2020). The better a person's financial

literacy, the better his financial management. Without proper money management, no

matter how much one's income is, one's financial freedom will be difficult to achieve

(Awwal & Agustina 2023). Financial management consists of financial preparation,

management and supervision activities. Preparatory activities, including activities to

prepare the distribution of income earned will be empowered for all things. Management

is an activity to manage or manage finances positively while control is an activity to

assess whether financial management is commensurate with what has been

conceptualized (Riana, 2019).

 Effective management of one's finances is essential to achieving long-term

financial success. Students may benefit from learning how to manage their finances by

budgeting and saving. Given the importance of financial resources, young people must

learn about and have experience in money management. In the year 2022, the ability of

a student to create a budget may be an indicator of their financial health. According to

Widiawati (2020), economically illiterate students face a gloomy future with difficulty

securing employment. Student loans aid struggling students. Most students do not have

enough knowledge of personal finance, as shown by the fact that they cannot handle

many currencies or properly manage money (Rahma and Susanti (2022).

Rahma and Susanti (2022) feel that proper management of one's financial

resources is essential to achieving material success. Albertus, Leksono, and Vhalery

(2020) recommend managing finances as a way to reduce the likelihood of experiencing

financial difficulties. The finding is consistent with the position presented before.

According to Putri and Lestari (2019), financial management is the ability to arrange,

store, manage, and administer one's own money based on everyday financial

knowledge. Specifically, financial management refers to the ability to manage one's own

personal finances. The ability to organize, keep, and manage one's own money is what

we mean when we talk about financial management.

In their work, Kozup & Hogarth (2008) says that nowadays, it can take a great

deal of inspiration, capability, and chance to class students as a unique consumer group

by observing both relevant and irrelevant data needed to make optimum decisions. This
requests a great deal of customers, many of whom face the burdens of time shortage as

well as inadequate financial resources. Others basically cannot or do not want to

execute all the tasks required to adjust their financial situation. Likewise, these financial

decisions are person or household explicit: one family ‘s decision may not work for

another. And even if customers go through a rough decision-making process, there can

be difficulties with implementation.

Some background could be reflecting to their purchasing decisions as a family

spending habits and knowledge as it was said by Chen & Volpe (1998). They say that

many students mentioned that they spend more money by using credit or debit card, so,

in one hand, they began to control their spending by using cash. Their conclusion is that

university students are not knowledgeable about personal finance. Also, they

discovered that the incompetency will limit their capability to create knowledgeable

financial decisions. Together with a proof provided by the study directed in the past

three decades, the outcomes of this research advise that there is a systematic lack of

individual finance learning in education system. The lack of education has caused in

serious financial illiteracy problems. As they suggested, the illiteracy and its affluent

penalties have made individuals worry about their finances to the point where their

productivity in workplaces is affected. Students may even need to withdraw from college

to earn money to repay their loans. They may not have accumulated any savings during

college or have charged up to their credit limit and are unable to use their cards. Those

are problems students facing through their education that are mentioned by Chen &

Volpe (1998).
 By using survey, we are going to see the current situation of MAA National High

School and perception of financial literacy among student. Those results will provide

information for further research on this topic and some ideas how to improve actual

students ‘money management skills.

Additionally, the researcher will regard this research forum as an opportunity to

communicate findings of this investigation. Therefore, researchers are interested in

knowing the effect of their spending habits and level of financial literacy, on the financial

management of students.

Statement of the Problem

This study is used to determine the financial literacy skills of students’ spending

habits. Specifically, it seeks to answer the following questions:

1. What is the demographic profile of the respondents in terms of:

1.1 Sex and

1.2 Grade Level?

2. What is the level of financial literacy skills of students in terms of:

2.1 Financial Behavior

2.2 Financial Influence

 2.3 Financial Attitude

3. What is the level of student’s spending habits in terms of:

3.1 Student Attitude

3.2 Student Lifestyle

4. Is there a significant relationship between financial literacy skills and student’s

spending habits?

Review Related Literature

In this section it consists the discussion of the variables used in the study such

as, financial literacy skills with its corresponding indicators: Financial behavior, Financial

Influence, and Financial Attitude. Relevant literatures and studies about these variables

are highlighted and discussed below:

Financial Literacy Skills

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

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

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

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

knowledgeable about budgeting, investing, and financial management. A sufficient

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

financial strain or overspending (Sabri & Zakaria, 2015). Some of the benefits of being

financially literate include reduced financial stress, effective budgeting, and debt
avoidance. Therefore, there is a need for comprehensive and meticulous financial

education for consumers.

Jorgensen (2007) investigated the personal financial literacy of a sample of

undergraduate and graduate college students using the personal characteristics of

gender, class rank and socioeconomic status, and examined parental and peer

influences on the level of financial literacy of college students. It found low score of the

students in financial knowledge, attitude, and behavior but significantly increasing each

year from freshman to masters. Further, it also revealed that students who were

financially influenced by their parents had higher financial knowledge, attitude, and

behavior scores, and students with higher financial knowledge also had higher financial

attitude and behavior scores. Likewise, Lusardi et al. (2010) examined financial literacy

among the youth in Germany and showed that financial literacy is low; only less than

one-third of young adults were found with basic knowledge of interest rates, inflation,

and risk diversification. However, financial literacy was strongly related to socio-

demographic characteristics and family financial sophistication.

Heenkenda (2014) explored the existing pattern and the levels of disparity of the

functional financial literacy using quantitative data from urban, rural and state sector and

found that the socio-economic-demographic characteristics have a very strong

association with the financial literacy of individuals. And, it also found that the majority of

the respondents demonstrated a modest financial knowledge and the functional

financial literacy was quite diverse across respondents depending on the levels of
education, income, gender, age, etc. Institute of Microfinance (InM, 2011), in

Bangladesh, conducted a survey covering nearly 9000 households and found very low

and inadequate financial literacy in the country, particularly it is more serious in rural

areas. VISA (2012) study ranked India at the 23rd position among the 28 countries

surveyed. Following this study, Agarwalla et al. (2013) identified that there is the

influence of various socio-demographic factors on different dimensions of financial

literacy among the working young in urban India. A few factors specific to India, such as

joint-family and consultative decision-making process were found to significantly

influence financial literacy in urban Indian youths.

Financial Behavior

Financial behavior according to Kholilah & Iramani (2013; as cited in Herdjiono &

Damanik, 2016: 228), is an individual’s ability to organize such as, planning, budgeting,

checking, managing, controlling, searching and saving, daily finances to fulfill their daily

needs in accordance with the level of income earned. In addition, financial behavior is

related to how individuals treat, manage, and use financial resources and tend to be

responsibly effective in spending the money they have (Nababan & Sadalia, 2012: 5).

Healthy financial behavior shown by good planning, organizing, and controlling

activities. This indicates that good financial behavior can be seen from the way of

people (their attitude) to organize their expense and income, credit management,

savings, and investments (Hilgert & Hogart, 2003; as cited in Laily, 2013). Financial

behavior is related to an individual’s financial responsibility on his or her financial

management. It is because of the main activity in financial management is the

budgeting process that aims to ensure that individuals are able to manage financial

obligation in a timely manner by using income received in the same period (Ida &

Dwinta, 2010; as cited in Andrew & Linawati 2014: 36).

The empirical evidence shows that financial literacy has a positive impact on

financial behavior. Individuals with knowledge and ability in managing their finances well

will shows a good financial behavior such as investing, saving, and using credit card. An

empirical study by Lusardi & Tufano (2015) shows that people with low financial literacy

are more likely to have problems with money. Without adequate knowledge,

entrepreneurs or MSMEs are more likely to be trapped in debts at high interests.

Furthermore, they will also be spared from informal lenders or loan sharks (Oktavianti,

Hakim, & Kunaifi, 2017). Therefore, based on several previous studies (Xiao et.al, 2008;

Mandell & Klein, 2009; as cited in Nababan & Sadalia, 2012: 2), the best way to

improve adulthood’s behavior is by teaching the good behavior since childhood,

including financial behavior.

Financial Attitude

Financial attitude is defined as a state of mind, opinion, and judgment of a person

about finances (Pankow D. 2012). Based on the theory of social learning there is a

three-way relationship that locks each other’s behavior, environment, and inner events

that affect perception and action. The inner events affect perceptions and actions in this

study are the financial attitudes and financial management behavior. Financial

management behavior can good and right be started by applying a good and proper

financial attitude (Parahiyangan 2013).

 Furthermore, Ibrahim and Alqaydi (2013) survey 412 residents in the United Arab

Emirates and argue that financial education can be a tool to improve the financial

attitude which is going to decrease the level of dependency on credit cards. Susilowati

and Latifah (2017) also support the view which emphasizes that the higher level of

education will improve financial behavior. This improvement makes university students

more confident on their investment decisions. On the issue of how to deliver an

adequate education, White et al. (2019) state that financial education should be based

on an experimental learning.

There are studies that focus on the effect of financial attitude, one’s view of

financial manners, on financial knowledge and behavior. Ameliawati and Setiyani (2018)

survey a sample of 278 university students and argue that financial attitude is positively

related to both financial knowledge and financial behavior. Zachary Finney and Finney

(2018) examine the effect of financial literacy on the attitude of university students

towards student loan providers which are found to be significant. They also argue that

financial optimism towards future expectations derives a positive attitude towards loan

providers.

Student Spending Habits

Spending habits are not a static phenomenon among university students and

constitute financial behaviour that depends on the level of financial knowledge and

financial attitudes (money management capabilities) (Nadome, 2014). Students who are

experiencing freedom from the protection of parents and guardians for the first time, and

making financial decisions for themselves for the first time, face the huge task of
planning and managing their finances. This becomes more challenging when expenses

far exceed available income (Nadome, 2014).

Poor spending habits are a behavioral pattern that is characterized by a lack of

self-discipline regarding continued overspending. According to the social learning

theory, spending habits are learned from parents and other key personalities (Fluellen,

2013). Individual childhood experiences comprise ways parents manage money and the

money management lessons received. Parents are critical impetus in their children ‘s

lives when growing. The positive and negative spending habits displayed are subject to

their parents ‘habits (Hadzic & Poturak, 2014). The agents of socialization, such as

family and peer groups, have great influence on an individual ‘s attitude towards money

(Hadzic & Poturak, 2014).

Pillai et al. (2010) state that a young adult‘s spending habits play a key role in the

sustainability of their finance resources and is an important variable in financial

judiciousness. Young adults have the tendency to immediately spend their money on

consumable products, thereby neglecting long-term financing matters such as

investment (Shaari et al., 2013). Financially literate students normally spend a greater

proportion of their money on durable goods, such as housing, education, and

investment rather than on food, clothing, and other luxury goods Thus, an improvement

in students' financial literacy is desirable and recommended for universities (Shaari et

al., 2013).

Attitude

Attitudes are a learned tendency to evaluate objects in a certain way and it is

often stated that attitudes facilitate adaptation to the environment (Ajzen, 2013).
Fishbein and Ajzen (2013) refer to an attitude as a person’s location on a bipolar

evaluative or affective dimension with respect to an object, action or event. They argue

that an attitude represents a person’s general feeling of favorableness or un-

favorableness towards some stimulus objects.

Often family members have competing interests, which affects the equitable

distribution of money in a family (Asebedo, 2016:4-5). Shim et al. (2009a:1465) found

that money is a source of conflict between parents and children when children have

negative attitudes towards monetary practices and are unable to stick to their spending

plans. Furthermore, parents who argue about money, increases their children’s

likelihood of incurring debt and obtain more than one credit card (Hancock, Jorgensen &

Swanson, 2013:374 &375). This means that financial conflict within a family may

influence financial behavior and is, therefore, a financial socialization technique.

Lifestyle

Magie (2008), in her study, stated that lifestyle is a leisure activities in which

individual participate. The activities may be classified as people oriented, cultural, self-

improvement, community or entertainment. In regard with the number of money spent

on shopping by consumer, retailers track that different shopper groups spend different

amounts of money based on demographic and lifestyle characteristics. It is stated that

lifestyle will have an impact on the patronage behavior of customers in the retail market.

Hassan (2010), added that there is a significant and positive relationship

between life style and spending behavior. They will choose to buy the product which

meets their interest in terms of products and price.

Theoretical Framework

This study will be anchored on the following items namely: Theory of planned

behavior (TPB). Financial socialization theory.

Theory of planned behavior

The theory of planned behavior is an extension of the theory of reasoned action

(Ajzen & Fishbein, 1980; Fishbein & Ajzen, 1975) made necessary by the original

model’s limitations in dealing with behaviors over which people have incomplete

volitional control.

As in the original theory of reasoned action, a central factor in the theory of

planned behavior is the individual’s intention to perform a given behavior. Intentions are

assumed to capture the motivational factors that influence a behavior; they are

indications of how hard people are willing to try, of how much of an effort they are

planning to exert, in order to perform the behavior. As a general rule, the stronger the

intention to engage in a behavior, the more likely should be its performance. It should

be clear, however, that a behavioral intention can lind expression in behavior only if the

behavior in question is under volitional control, i.e., if the person can decide at will to

perform or not perform the behavior. Although some behaviors may in fact meet this

requirement quite well, the performance of most depends at least to some degree on

such nonmotivational factors as availability of requisite opportunities and resources

(e.g., time, money, skills, cooperation of others; see Ajzen, 1985, for a discussion).

Collectively, these factors represent people’s actual control over the behavior. To the
extent that a person has the required opportunities and resources, and intends to

perform the behavior, he or she should succeed in doing so.

Financial socialization theory

Financial socialization theory is vital for understanding young adults’ financial

behavior (Ullah & Yusheng 2020). Financial socialization theory suggests that

relationships among individuals influence the financial information the individuals

receive which in turn results in financial literacy among them. This explains why

financial information literacy is regarded as a prerequisite for financial literacy among

individuals (Liaqat et.al., 2020). It is argued that child-parent financial interactions

influence the child’s financial literacy level (Harari 2016). This is because, in a family,

parents are the most influential source of knowledge regarding how personal finances

are best managed (Nidar & Bestari 2012). The high financial status of parents was also

found to influence their children’s attainment of greater financial literacy levels (Erner

et.al.,2016). It was reported that students who follow friends’ financial advice achieve

higher financial literacy rates than other students.

Financial socialization that takes place through formal sources, such as schools,

and informal sources, such as family and peer groups, is a source of financial

information literacy (Shim et.al., 2009; Goldsmith 2006; Lusardi et.al., 2010). It is also

documented in the literature that although parents and family members are vital in

financial socialization, financial literacy programs and media are an inevitable part of the

financial socialization processes (Lebaron & Kelley 2020). Researchers argue in this

current research that financial socialization which occurs through families, peer groups,

and the media results in financial information literacy among agribusiness entrepreneurs
in rural areas in Edo State, Nigeria. Researchers further argue that financial information

literacy is significantly related to performance sustainability amid financial innovations in

Nigeria.

Conceptual Framework

Independent Variable Dependent Variable

Financial Literacy Skills Student’s Spending

Habits

Financial Behaviour
Student Attitude
Financial Attitude
Student Lifestyle

Figure 1. Conceptual Framework of the study

Presented in Figure 1 is the conceptual framework of the study. As seen

on the figure, the independent variable financial literacy skills. It has two indicators

which are financial behavior, and financial attitude. On the other hand, the dependent

variable is student spending habits. It has two indicators, namely: student attitude and

student lifestyle.
 Chapter 2

Methods

The study applied the quantitative design of research. This chapter presents the

plan and strategy of the researchers during the whole duration of the study. A number of

activities in the plan of work includes the following: research design, research locale,

respondents of the study, research instrument, and data collection and analysis.

Research Design

This study aims to investigate the relationship between financial literacy skills

and students' spending habits. A mixed-methods approach will be employed,

incorporating both quantitative surveys and qualitative interviews. The study will recruit

a sample of students from diverse educational institutions, ensuring representation

across demographics. Participants will complete a structured questionnaire assessing

their financial literacy levels and spending behaviors. Additionally, semi-structured

interviews will be conducted to gain deeper insights into the factors influencing students'

financial decision-making processes. Data analysis will involve correlation and

regression analyses to examine the relationship between financial literacy and spending

habits, while thematic analysis will be used to extract themes from qualitative data. The

findings will provide valuable insights for educators, policymakers, and financial literacy

programs aiming to enhance students' financial management skills.

Research Locale

This study is conducted in Maa National High School because of the alarming

performance of students. Data gathered in this study can help school administrators in

improving financial literacy skills in student’s spending habits.

Ma-a is a Davao City barrio. 59,803 people were living there as of the 2015

Census. This was equivalent to 3.66% of Davao City's total population. In Ma-a, the age

group with the largest population, 7,474 people, is 20 to 24 years old, according to the

2015 Census. On the other hand, there are 291 people in the age group 80 and older,

which has the lowest population. Ma-a's population increased by 34,786 persons, from

25,017 in 1990 to 59,803 in 2015. Based on the most recent census data from 2010, the

population of 49,915 in 2010 increased by 9,888, representing a positive growth rate of

3.50%. Ma-a is located on the island of Mindanao at roughly 7.0727 and 125.5855.

Elevation at these coordinates is estimated at 13.7 meters or 44.9 feet above mean sea

level.

Figure 2: Map of Barangay Ma-a Davao City

Research Respondents

The respondents of the study were the 64 students from Maa National High

School. The 64 respondents were taken from the population size of Maa National High

School which is 250. This study was conducted in the school year 2023-2024. Simple

random sampling is a type of probability sampling in which the research randomly

selects a subset of participant from a population. Each member of the population has an

equal chance of being selected. Data is then collected from as large a percentage as

possible of this random subset.

Research Instruments

The researchers utilized an adapted questionnaire to gather the data needed for

the study. The survey was done through online questionnaires using Google Forms.

This questionnaire helped the researchers to identify the factors that had a significant

effect towards students spending habits of the MAA National High School students in

the financial literacy skills. The questionnaire had two parts that were based from the

statement of the problem in this study. Part I contains the demographic profile of the

respondents. Part II contains five (4) subtopics for the financial literacy skills in students

spending habits. The questionnaire that was adapted and made by the researchers was

validated by experts in the field of research. The validator’s suggestions and comments

were the basis of the validity of this instrument. To make sure that the questionnaire

could provide necessary information to the study, it was pretested to 30 respondents.

The result was pretested for its reliability using Cronbach's alpha. All items that would

generate a value higher than .859 which is considered as statistically reliable.

The questionnaire items were interpreted using the following scales:

Financial Literacy Skills

Scale Range Description Descriptive Interpretation

1 1.00-1.75 Not all true for me The respondents imply that the effect

of financial literacy skills has strongly

no significance to their spending

habits.

2 1.76-2.50 Somewhat not true The respondents imply that the effect

for me of financial literacy skills has no

significance to their spending habits.

3 2.51-3.25 Somewhat true for The respondents imply that the effect

me of financial literacy skills has

significance to their spending habits.

4 3.26-4.00 Very true for me The respondents imply that the effect

of financial literacy skills has a strong

significance to their spendings habits.

Table 1

Student’s Spending Habits

Scale Range Description Descriptive Interpretation

4 3.26-4.00 Strongly Agree The respondents imply that the effect

of financial literacy skills has a strong

 significance to their spendings habits.

3 2.51-3.25 Agree The respondents imply that the effect

of financial literacy skills has

significance to their spending habits.

2 1.76-2.50 Disagree The respondents imply that the effect

of financial literacy skills has no

significance to their spending habits.

1 1.00-1.75 Strongly Disagree The respondents imply that the effect

of financial literacy skills has strongly

no significance to their spending

habits.

Table 2

Data Gathering Procedure

The following procedures were implemented in collecting the data.

Permission to Conduct the Study. A letter of permission was secured from Maa

National High School to conduct the study on Problem- Solving Skills in Relation to

Students Academic Performance.

Administration and Retrieval Questionnaire. Adequate and clear copies were printed

to avoid problems in the conduct of the study. The researcher administered the

questionnaire to the respondents of the study and they were requested to answer the

questions honestly so that valid and reliable data were elicited. The researcher exerted

effort to retrieve the questionnaire personally and with the help of some research aides
to have 100 percent return rate of the questionnaire. The completed questionnaire was

organized accordingly.

Collation and Tabulation o

f Data. The results were collated and tabulated before subjecting it to statistical

treatment.

Analysis and Interpretation. Results were analyzed and interpreted based on the

purpose of the study.

Mean refers to one measure of central tendency either of a probability distribution or of

the random variable characterized by the distribution. It was used to determine the level

of problems solving skills and their academic performance.

Standard Deviation. This was used to measure the distribution of data among

participants and the extent of the deviation. The lower the Standard Deviation, the less

likely it was effective and preferable. However, the higher the Standard Deviation, the

wider the data spread.

Ethical Consideration

Ethical consideration was observed in the conduct of the study especially during

survey and/or interview with respondent and made sure that due consideration was

given to the rights of the participants.

Social Value. Since the research deals in determining the financial literacy skills

in students spending habits, the results are basis for improvement of the student

performance in dealing with spending habits. Furthermore, it will be very useful to

provide guidance to everyone that had an experience of financial literacy skills. Hence,

students who would be future researchers and other would-be researchers can make
use of the new knowledge or literature that may be developed through this research

undertaking.

Informed Consent. The study used informed consent since the respondents

were 18 years old and above who were already considered of legal age. Prior to data

collection, respondents were asked if they were willing to take part in the survey. They

have been told that their participation was voluntary and they may quit participation

anytime they decide to stop answering the questionnaire because of discomfort and

other reasons. The link to the questionnaire was given to them after they accepted.

Because data collection was done online, the informed consent letter was added to the

opening section of the questionnaire for formality and to reiterate their right to

participate or not to the survey.

Risks, Benefits, and Safety. The participation is completely voluntary and

anonymous to protect the privacy of teachers. There is no known risk in this study

because the gathering of data will be online using Google Forms. Online survey is the

most appropriate way to gather data in this study the online survey is the most

appropriate way to gather data in this study to save time and money by sending

questionnaire online to the respondents to get the results easily. This study can

generate relevant information which can be useful to public and private school

administrators. The result discussions and findings from this study can provide

evidence-based information which can be used by administrators in the process of

implementing improvements in the mathematics curriculum. The respondents of the

study can help improve grades towards problem solving skills and for their academic
performance. More so, the researcher will value their participation and place their

welfare as the highest priority during the study.

Privacy and Confidentiality of Information. The privacy and confidentiality of

the information collected was respected. No names of individuals were revealed or

mentioned in the manuscript. Because the survey was conducted online, the data

gathered (completed Google forms) was handled alone by the respondents, and will

appropriately dispose of when the study is completed to protect privacy.

Justice. In terms of fairness, the researcher ensured that respondents were

picked at random to ensure that everyone had an opportunity to participate in the

survey. It ensured that the respondents were identified in accordance with the study's

goals. They were acknowledged in the paper as an expression of appreciation.

Transparency. During the data gathering, the researchers tried to address

conflict of interest and potential biases that develop throughout the study's performance.

If given the chance, the researchers welcome any opportunity to present the study in

the intuitional research congress or any research forum. Furthermore, the researchers

will only publish correct information based on the study's findings.

Qualification of Researchers. The proponents of the study are officially enrolled

in MAA National High School this school year 2023-2024, and therefore given technical

background in conducting research by their professor and adviser, this makes them

qualified to undertake the research activity as part of the subject requirement.

Adequacy of Facilities. To enable the easy collection of data required facilities

were ensured. The researchers secured laptops and other gadgets with strong internet

connection and made sure that the questionnaire reached the respondents.
Questionnaire items were encoded in Google forms and were sent to respondents

online. The link for the Google forms were sent to respondents for easy access.

Community Involvement. will be taken into account in this study as there will be

a community of teachers involved. Also, the beneficiaries of this study are part of the

community where the study will be conducted. Added on, findings of the study will be

made known to the school stakeholders and the community. All activities done are

subject to the permission of the school head and the research adviser as well.
 Chapter 3

Result and Discussion

This chapter deals with the presentation, analysis, and interpretation of data.

The first part describes the level of financial literacy skills and the student’s

spending habits. The second part portrays the relationship between the independent

variables and dependent variables. Lastly, third part shows the significant influence of

the independent variables towards the dependent variables.

Demographic Profile of Respondents

A. Gender

64 Responses

Figure 3
 Figure 3 shows the demographic of respondents according to gender. It shows

that 60.9% respondents are female, while the remaining 39.1% corresponds to male

respondents.

Figure 4

B. Grade Level

Figure 4 shows the demographic profile of respondents according to grade

level/standards.

It shows that highest is from the 12 - ABM with 29.7%, 28.1% from 12 – TVL, 21.9%,

21.9% from 12 – GAS, and 20.3% is from 12 – HUMSS

Level of Financial Literacy Skills

Table 3 and 4 shows the level of Financial Literacy Skills. The financial literacy

skills have two observable indicators, namely, financial behavior, and financial attitude.

Financial Literacy Skills

Financial Behavior

Table 3

In terms of financial behavior, the item “I maintain adequate financial records”

with a mean of 1.9 and the standard deviation of 0.9. The item “I spend less than

income” with a mean of 3.34 and standard deviation of 1. The item “I maintain adequate

insurance coverage” with a mean of 1.35 and standard deviation of 0.8. The item “I plan

and implement a regular savings/investment program” with a mean of 3.23 and

standard deviation of 0.95. Spending habit, maintaining records, use of saving,

managing money in problem, financial services taken and use of additional income are

major aspects of financial behavior (Thapa and Nepal 2015).

Financial Attitude

Table 4

In terms of financial attitude. The item “I feel in control of my financial situation”

with a mean of 3.15 and standard deviation of 1. The item “I feel capable of using my

future income to achieve my financial goals” with a mean of 2.35 and standard deviation

of 0.9. The item “I worry to manage my finance” with a mean of 3.18 and standard

deviation of 1. The item “I am uncertain about where my money is spent” with a mean
3.44 and standard deviation of 1. The item “I feel credit cards are safe and risk free”

with a mean of 1.65 and standard deviation of 0.97. The item “I feel capable of handling

my financial future” with a mean of 2.7 and standard deviation of 0.97. The item “I am

afraid of loan” with a mean of 3.3 and standard deviation of 1. The item “I give

importance to saving money from my monthly income” with a mean of 3 and standard

deviation of 1. The item “I feel having life insurance is an important way to protect loved

ones” with a mean of 3.33 and standard deviation of 1. The item “I enjoy thinking about

and have interest in reading about money management” with a mean 2.61 and standard

deviation 0.95. The item “I enjoy talking to my peers about money related issues” with a

mean of 1.6 and standard deviation of 0.9.

Level of Students Spending Habits

Table 5 and 6 shows the level of students spending habits. Students spending

habits have two observable indicators, namely, student attitude, and student lifestyle.

Student Spending Habits

Student Attitude
 Table 5

In terms of family background, results proved that most items were rated strongly agree

with a grand mean of 3.22. Most items are the primary consideration all the time.

According to the respondents, they see their parents as financial role models. At home,

their parents put emphasis on the importance of saving money. They were trained by

their parents to live a simple life. When they were young, their parents encouraged them

to put their extra coins in a piggy bank. Their parents sometimes considered of giving

rewards if they were able to save money from their allowance.

Previous studies had revealed that parents impart the meaning of money to their

children, but the details of this process are largely absent from current literature.

Individual parents can place value and meaning on money that have implications for

their children as consumers, as parents will likely pass on these beliefs and values to

their children. Yet, the implications of the cultural meaning of money extend beyond the

family and apply to larger society, as many people attempt to critique others and make

moral assumptions based on consumer taste. Details regarding how parents assign

cultural value and meaning to money for their children are largely absent from the
research literature, and a clear lack of focus on the origins of such meaning and values

are visibly absent.

Gallo (2005), in his study noted the importance of connecting values and morals (such

as the importance of saving for the future or spending on those in need) to money.

However, he does not go into detail on what values parents typically associate with

money. In addition, modern research omits where these potential values originate from

for parents. Sato (2011) stated that for children, money acquires meaning through social

situations mediated by the people surrounding them, particularly parents. However,

Sato did not elaborate on how parents have come to acquire this meaning for

themselves, other than to imply that they originated from their own parents in turn. By

learning more about the origins of how parents value money and apply meaning to

money, the ways in which they convey value and meaning to money for their own

children may become more apparent.

Student Lifestyle

Table 6
In terms of financial knowledge most items were rated very good resulting to its grand

mean of 2.77. Respondents had superior knowledge in financial planning, money

management, budget, and personal budgeting. Financial planning involves identifying

provisions for emergencies, savings/insurance held, and financial provision for

retirement and anticipated expenses (health care, education, etc.). Attitudes to financial

planning were also covered. Money management aims at identifying degree of financial

control, whether people make ends meet and, attitudes and approaches to financial

management.

On the study conducted by Mandell (2008); Mortimer (2003), it was found that formal

financial education during the high school years predicts students’ financial knowledge

(which encompassed both objective and subjective knowledge), a finding that should

contribute to the debate in the field as to whether high school financial education makes

a difference.

Research showed that those with higher financial literacy levels are more likely to save

and plan for retirement (Bernheim, et al., (2001)): Lusardi (2009), indicating that

enhanced financial literacy can have an effect on behavior change. At the workplace

level, Bayer, et al., (1996) found that retirement seminars offered in the workplace can

significantly increase the participation of employees in voluntary contribution plans and

that the effect is higher for non-highly paid employees. Bernheim & Garrett (2003) also

foud that financial education provided by employers is associated with higher savings in

general and in particular with higher retirement savings.

Beyond its positive influence over pensions and retirement savings, financial education

improves welfare by minimizing financial mistakes with substantial associated costs

(Campbell (2006); Pence & Bucks, (2006)). Gerardi, et al., (2010) showed that those

with better financial literacy are less likely to default on their credits and they even raise

the question on whether the lack of financial literacy was partially to blame for the

magnitude of the 2008 subprime crises in the US. Individuals with more financial

knowledge have been found to choose less costly mortgages and avoid high interest

payments and additional fees (Gerardi, et al., (2010); Lusardi & Tufano, (2009); Moore,

(2003)).

Significant Relationship between Variables

A Pearson product moment correlation was run to find out the significance,

magnitude, and direction of relationship between problem solving skills and academic

performance. Results show that the level of students’ academic performance were

found to have a significant high positive correlation, r(156) = 0.443, p-value = <.001.
 Chapter 4

Conclusion and Recommendations

This chapter provides the findings, conclusion and recommendation of the study

which endeavored to investigate the level of financial literacy skills in relation to

students spending habits.

Findings:

Based on the interpretations of the data, the major findings were

presented as follows:

1. The level of financial literacy skills obtained overall mean of 3.32 and

standard deviation of 0.7 which was described as very high, indicating that

the financial literacy skills was always observe all the time.
 2. The students spending habits obtained overall mean of 3.28 and standard

deviation of 0.84 which described as strongly agree. This indicates that

students affect spending habits was strongly agree and good.

3. There is a significant relationship between problem-solving skills and

academic performance with, r(156) = 0.443 p-value = <.001

Conclusion:

After analyzing the data, the researcher came to the conclusion that family

history has a big impact on how much money college students spend. Parents have a

significant influence on their children's attitudes regarding life in general as well as their

attitudes toward money management. Therefore, in order to give themselves the best

opportunity of succeeding as adults, young people must start learning about finance

during their youth. Proficiency in finance alone is insufficient. A sound and optimistic

mindset is essential for success, as are understanding parents who demand a

responsible financial mindset.

Based on the findings, the researcher believes that if parents have a better

understanding of how financial literacy can contribute to the success of their children in

the future, they might be more directed to instill positive financial behaviors and

encourage financial education at home. Schulman et.al (2005) emphasized that we

should also find ways to help parents understand how to involve their children in the

family’s financial decision making thus, teaching them to make good decisions of their

own. Findings suggest that in order to help students achieve success, parents, schools

and stakeholders should form partnership dedicated in teaching financial practices.

 To improve financial habits, students should take some concrete measures to

help them keep track of their expenses. First, they should create their own budget and

keep ways on how to improve it. Keeping a record of expenses will help them monitor

how much money they spend on clothing, entertainment, and gadgets. They should not

forget to allocate money for savings because a good budget do have savings. Lastly,

they should keep a positive attitude.

Recommendations:

It is crucial to give financial education in schools and institutions top priority in

order to overcome this problem. Early curriculum integration of financial literacy helps

students acquire the knowledge and abilities needed to make wise financial decisions.

Furthermore, offering classes, seminars, and internet resources on financial

management subjects like debt management, investing, saving, and budgeting can

improve students' understanding of money management and provide them more

financial independence.

Furthermore, educators and parents play a crucial role in teaching and

reinforcing good financial habits. By setting a positive example and engaging in open

discussions about money management, adults can help students develop a healthy

attitude towards money and spending. Schools could also think about putting into

practice doable strategies, such giving kids access to financial advisors or counseling

services or providing financial incentives for exhibiting appropriate financial behavior.

Overall, improving students' financial literacy can have long-term benefits for both

individuals and society as a whole, leading to greater financial stability and well-being.
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