CALLANG NATIONAL HIGH SCHOOL

San Manuel, Isabela

SENIOR HIGH SCHOOL DEPARTMENT

Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction

Financial literacy is a vital aspect of students' financial well-being and

their ability to make informed decisions regarding money management.

Callang National High School is a public school where education takes

place and is made up of several students from various barangays in the San

Manuel, Isabela area. With different backgrounds, rich, average and poor

students can significantly differ. Students who have a limited allowance might

find it difficult to fulfill their obligations and obtain the resources they need due

to this lack of financial assistance. On the other hand, students who have a

sufficient allowance can buy more things that they want and save more

money.

In the context of students in the Accountancy, Business and

Management (ABM) at Callang National High School, they often engage with

subjects related to finance and business. However, some of the students find

it difficult to manage their finances. Students from barrios, in some cases,

receive higher allowances compared to their counterparts in poblacion area.

The cost leading to the need for higher allowances to cover expenses

including food, and transportation. Some of the students demonstrate positive

financial habits by saving a portion of their daily allowance, indicating

responsible financial management.

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According to 1Dwiastanti (2015), the low level of financial awareness

among students is becoming a national problem. Saving behavior needs to be

instilled in the students to adulthood. The culture of saving that is instilled

early on students can give many benefits, form economical characters,

discipline in managing their money and prepare for their future. Moreover,

parents have a big influence in shaping student saving behavior. Therefore,

to improve students 'saving behavior, in addition to the role of parents in

encouraging students to save money also requires students' understanding of

financial literacy, ability to control themselves and trust in the perception of the

future (2Chalimah et al. 2019). Senior High students need to be more

knowledgeable about their money due to a more complicated market place.

There are limited understanding on the influence of the spending habits

of the Grade 11 ABM Students. Moreover, there is a lack of comprehensive

research focusing on the impact of financial literacy to the Spending Habits.

Some of the factors involved in the financial literacy of the students are their

saving and spending habits which greatly affect their current and future lives.

The objective of this study is to find The Relationship between

Financial Literacy to the Spending Habits and Financial Well-being of ABM

students. In order to understand the relationship of these two; that Financial

literacy is positively related to financial resilience and good debt management

and to understand how helpful to have a financial literacy to the ABM

1
Dwiastanti, A. (2015). Financial Literacy as the Foundation for Individual Financial Behavior.
from
https://eric.ed.gov/?id=EJ1083664
2
Chalimah, N. S., Khafid, M. & Martono, S. (2019). The Saving Behavior of Public Vocational
High School Students of Business and Management Program in Semarang. from
https://journal.unnes.ac.id/sju/index.php/jeec/article/view/29741
The Relationship of Financial Literacy to the Spending Habits and Financial Well-being
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SENIOR HIGH SCHOOL DEPARTMENT

students. It helps them to be responsible for using or spending their

allowance, influence or help the students to manage their money wisely and

how to budget it. Moreover, it is advisable to promote financial literacy to the

students for them to learn how to manage their spending habits and to

increase students' understanding of finance. Some students possess

sufficient financial knowledge in investments and numeracy, they lack

knowledge despite these topics being included in their curriculum. In addition,

a higher level of financial literacy is correlated with responsible spending and

saving habits and to help the students manage their finances better.

Statement of the Problem

This study aimed to determine the level of financial literacy and

spending habits of Accountancy Business and Management (ABM) students.

Specifically, this study sought to find answers to the following questions:

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

a. Age

b. Sex

c. Parent’s monthly income

d. Average amount of money saved

2. What is the level of financial literacy based on the profile of the

students?

3. What are the spending habits of the respondents as their personal

needs, food, academic needs and transportation of ABM from Callang

National High School?

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SENIOR HIGH SCHOOL DEPARTMENT

4. Is there a significant relationship on the personal financial literacy and

the spending habits of the respondents when group according to

profile?

Null Hypothesis

There is no relationship between the personal financial literacy and the

spending habits of the respondents when group according to profile.

Conceptual Framework

This study aimed to determine the level of financial literacy and

spending habits of Accountancy Business and Management (ABM) students.

The researcher will use Input-Process-Output as the concept of the

study. The independent and dependent variables are presented in the

research paradigm as follows.

Paradigm of the Study

The Relationship of Financial Literacy to the Spending Habits and Financial Well-being
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 CALLANG NATIONAL HIGH SCHOOL
San Manuel, Isabela

SENIOR HIGH SCHOOL DEPARTMENT

INPUT PROCESS OUTPUT

1. What is the profile of  Data collection The profile of the

the student- through survey respondents are
respondents in terms of questionnaire identified.
 Analysis and
a) Age interpretation of Determined level of
b) Sex data financial literacy of
c) Parent’s monthly  Presentation of Accounntancy,Busines
income and Management (ABM)
findings and results
d) Average amount students.
saved monthly
Evaluated spending
habits of the
2. What is the level of respondents as their
financial literacy of personal needs, food,
ABM from Callang academic needs and
National High School? transportation of ABM
from Callang National
High School
3. What is the spending
habits of the
respondents as their
personal needs, food,
academic needs and
transportation of ABM
from Callang National
High School?

Feedback
Feedback

Figure 1. Paradigm of the Study

Scope And Delimitation

The Relationship of Financial Literacy to the Spending Habits and Financial Well-being
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 CALLANG NATIONAL HIGH SCHOOL
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SENIOR HIGH SCHOOL DEPARTMENT

This study will only focus on the Grade 11 Accountancy Business and

Management (ABM) students School Year 2023-2024. The respondents of

this study will come from Grade 11 ABM students. The number of 35 ABM

Athena students will be the respondents of this research. The whole study

and process will be conducted in Callang National High School.

Significance of the Study

The purpose of this study is to know the level of financial literacy and

spending habits of Grade 11 ABM students from Callang National High

School. The findings of this study will benefit the following:

School Administrator. This study will be their baseline for improvement

actions using feedback, by providing them an overview of student’s level of

financial literacy and their spending habits.

Teachers. The study will benefit them in a way that they will provide financial

literacy seminars for the students.

The Students. The direct recipients of the output of this research are the

students. For them to understand the manner of financial literacy and observe

where their money does goes.

Parents. As parents enrolled their children in this institution, comes with self-

assurance that their children are given more education that would make them

a financial literate.

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Future Researchers. The outcomes of the study is beneficial to the future

researchers. This study may be one of the basis that a new theory in learning

will arise.

Definition of Terms

Conceptual and operational definition of the terms used in the study

are presented below for clarity and a better understanding of readers.

Financial Literacy. It refers to the student’s ability to understand and

effectively use various financial skills, including personal financial

management, budgeting, and investing.

Spending habits. It refers to the students practice when it comes to spending

their money.

Financial Well-being. It refers to the state in which an individual is capable of

fulfilling all present and future financial obligations.

Academic needs. It refers to the student’s choices where they spend their

money on school supplies, photocopies, and books.

Financial freedom. It refers to having enough savings, financial investments

and cash on hand to afford the kind of life we desire for ourselves and our

families.

Food Expenditure. It refers to student’s choices where they spend their

money in food.

Personal needs. It refers to the assistance to the student’s with their activities

of daily living

Socioeconomic status. It refers to the social standing or class of the

The Relationship of Financial Literacy to the Spending Habits and Financial Well-being
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 CALLANG NATIONAL HIGH SCHOOL
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SENIOR HIGH SCHOOL DEPARTMENT

students.

Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

The Relationship of Financial Literacy to the Spending Habits and Financial Well-being
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 CALLANG NATIONAL HIGH SCHOOL
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SENIOR HIGH SCHOOL DEPARTMENT

This section reviews literature and past studies on foreign and local of

financial knowledge and spending habits.

Foreign Literature

The financial habits of students may be influenced by their educational

background. Non-business majors are more likely than business majors to

have less financial literacy, notably banking and accounting.” ( 3Bağci and

Kahraman, 2020) In the present day, financial literacy is a crucial aptitude.

Also, it enables one to assume financial control and effectively navigate

emerging opportunities and challenges. (4Tamplin, 2023) Moreover, financial

literacy can be defined as the ability to effectively manage one's own money

while taking into account one's economic and social situations, as well as the

knowledge, skills, and self-assurance necessary to do so. (5Kamukama, 2016)

It is also the ability to apply information about various areas of finance as well

as knowledge about those parts. In order to manage one's personal finances

effectively, it is necessary to have the ability to comprehend one's privileges

and responsibilities. (6Lusardi and Mitchell, 2011) Furthermore, The

development and maintenance of good spending habits can have a significant

impact on your financial future, as well as lessen feelings of financial distress

3
Bağci, H., & Kahraman, Y. E. (2020). The effect of gender on
Financial literacy.from https://doi.org/10.29106/fesa.615866
4
Tamplin, T. (2023). Why Financial Literacy Is Important And How You Can Improve Yours.
from https://www.forbes.com/sites/truetamplin/2023/09/21/financial-literacy--meaning
components-benefits strategies/?
sh=73277c1368cd&fbclid=IwAR3GpZnKkBQudHApeCOerW4ykziwHIOsPiJsVfrwfLFQQ9h-
HwEcLWvNE
5
Kamukama, E. (2016). How financial literacy improves spending habits. from
https://www.proquest.com/docview/1816740932/99F9F5374D354AFCPQ/4?
sourcetype=Newspapers
6
Lusardi, A., & Mitchell, O. S. (2011). Financial literacy and planning: Implications for
retirement wellbeing from https://www.nber.org/papers/w17078
The Relationship of Financial Literacy to the Spending Habits and Financial Well-being
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SENIOR HIGH SCHOOL DEPARTMENT

and anxiety. (7Kamukama, 2016) However, inadequate understanding of

personal finance, including the creation of a budget and the monitoring of

expenses, can result in an increase in prominent buying behaviors, which can

be defined as the practice of excessively spending money on goods and

services. (8Sabri, 2011) Hence, Financial education and literacy serve as

crucial fundamentals for establishing a strong foundation in life. It is crucial to

instill financial knowledge at an early age ( 9Derhalli, 2022) A lack of financial

literacy is an indicator that there is a need for financial education regarding

how to build financial planning in order to prevent making purchases that are

not needed. (10Andriani and Nugraha, 2018) Therefore, having a general

understanding of finances will act as a guide to spending habits and behavior.

Thus, the significance of financial literacy education for students has a great

impact on their financial wellbeing and financial knowledge. It should be

taught either formally in the school curriculum or informally through training

and short seminars outside of school. (11Sari et al.,2018) However, No

evidence that the effectiveness of financial literacy education, and it is highly

unlikely that it will ever be an acceptable solution to the issues that consumers

7
Kamukama, E. (2016). How financial literacy improves spending habits. from
https://www.proquest.com/docview/1816740932/99F9F5374D354AFCPQ/4?
sourcetype=Newspapers
8
Sabri, M.F (2011) Pathways to financial success: Determinants of financial literacy and
financial well-being among young adults. from
https://www.proquest.com/openview/993b24f62f2502c53a36285979951b07/1?pq-
origsite=gscholar&cbl=18750
9
Derhalli, K. (2022)
Financial Education for Youth Is More Important Than Ever. from
https://www.kiplinger.com/personal-finance/financial-education-for-young-people-is-important
10
Andriani, D., & Nugraha, N. (2018). Spending habits and financial literacy based on gender
on employees. from https://iopscience.iop.org/article/10.1088/1757-899X/407/1/012089/meta
11
Sari, R. C., Priantinah, D., & Aisyah, M. N. (2018). Financial well-being among college
students: The role of financial literacy and financial coping behavior. from
https://www.taylorfrancis.com/chapters/edit/10.1201/9781315104188-30/financial-well-being-
among-college-students-role-financial-literacy-financial-coping-behavior-sari-priantinah-aisyah
The Relationship of Financial Literacy to the Spending Habits and Financial Well-being
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face with their financial well-being. As a result, its policy model identifies both

the problem of poor financial results and the solution to those outcomes.

(12Willis, 2008)

These sources of financial gain facilitate cowl the prices of basic living

expenses. Within the event that a student is unable to supply enough financial

gain to hide the prices of faculty, that person could got to cast off a student

loan to hide their basic living prices and payment habits. Socioeconomic

status in family net income, job kinds, educational attainment, marital status,

and the number of family members predict financial knowledge. ( 13Gerardi et

al., 2010); (14Campenhout, 2015), Youth financial knowledge was influenced

by socioeconomic factors, and there was a connection between financial

expertise, attitudes, and conduct (15Garg and Singh, 2018). Financial

knowledge among their children was more likely to occur when parents’

income was higher than when it was lower ( 16Oseifuah et al., 2018)

Additionally, a positive association between financial awareness and family

12
Willis, L. (2008). Against Financial-Literacy Education. from https://heinonline.org/hol-cgi-
bin/get_pdf.cgi?handle=hein.journals/ilr94&section=7
13
Gerardi L., Goette L., & Meier S. (2010)
Financial Literacy and Subprime Mortgage Deliquency: Evidence from a Survey Matched to
Administrative Data. from
https://www.atlantafed.org/-/media/documents/research/publications/wp/2010/wp1010.pdf?
fbclid=IwAR3U7omDT7Gcx72lQP88hPBobSNxJnTkhAJdDvDhuX_zobYBKvur-EM2rWA
14
Campenhout G. V. (2015) Revaluing the Role of Parents as Financial Socialization Agents
in Youth Financial Literacy Program. from
https://onlinelibrary.wiley.com/doi/abs/10.1111/joca.12064?fbclid=IwAR2uSD8d4t-
X0QgLuEezwq_5YcEBfPtcYMccKYTKh1CxEOutRy9AyHXfC6I
15
Garg N. & Singh S. (2018) Financial literacy among youth. from
https://www.researchgate.net/publication/321216903_Financial_literacy_among_youth?
fbclid=IwAR2BzGUBIoasfQT_rnBaKM_BnzCpJJ_FUkVa4KXERcTiOwVflmOIto5G2nI
16
Oseifuah E. (2018) Financial literacy among undergraduate students: Empirical evidence
from Ghana. from
https://www.researchgate.net/publication/321216903_Financial_literacy_among_youth?
fbclid=IwAR2BzGUBIoasfQT_rnBaKM_BnzCpJJ_FUkVa4KXERcTiOwVflmOIto5G2nI
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background was fostered (17Mimura et al., 2015). Contrary to certain research

findings, socioeconomic status of students had a detrimental impact on their

financial knowledge scores in the US (18Lusardi and Mitchell, 2013). Students

from low-income backgrounds typically exhibit higher levels of financial

knowledge.

Based on 19Schmohe (2021), Transportation costs vary a lot based on

accommodation. Many students go outside their home states to pursue a

college degree, Costs will also vary depending on your type of transportation.

If you own a car, you’ll have to consider added costs due to on campus

parking fees, gas, car insurance, and regular maintenance. On the flip side,

transportation costs will be much lower if you choose to walk to campus or opt

for a bike or public transit. A lot of students prefer to stay off campus in shared

apartments to reduce higher dorm costs. However, make sure this doesn’t

backfire with increased transportation expenses.

Students in each high school and school earn cash during a form of

ways in which. Some high school students could believe Associate in Nursing

allowance, or cash from their oldsters throughout their immature years to hide

any expenses. In fact, junior accomplishment found that sixty fourth of teens

within the us depend upon financial gifts from friends and family as their

pocket money. Different students may match where college and on the
17
Mimura, Y., Koonce, J., Plunkett, S. W., & Pleskus, L. (2015). Financial information source,
knowledge, and practices of college students from diverse backgrounds. From
https://connect.springerpub.com/content/sgrjfcp%3A%3A%3A26%3A%3A%3A1%3A%3A
%3A63.full.pdf
18
Lusardi, A., & Wallace, D. (2013). Financial literacy and quantitative reasoning in the high
school and college classroom. From https://digitalcommons.usf.edu/numeracy/vol6/iss2/art1/
19
Schmohe, A. (2021). The Spending Habits of College Students: How to Plan for the Future.
The Vector Impact by Vector Marketing. From https://www.thevectorimpact.com/spending-
habits-ofcollege-students/#Look_for_funding_opportunities
The Relationship of Financial Literacy to the Spending Habits and Financial Well-being
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weekends additionally to finishing their school assignment. Still, different

students like better to solely work once college isn’t in session by obtaining a

summer job, like being a camp counsellor, mowing lawns, or lifeguarding.

Similarly, there’s a large form of financial gain sources for faculty students.

Similar in high school, some student’s square measure’s lucky enough to

receive Associate in nursing allowance from their oldsters. Different students

believe scholarships and grants as a supply of income; but, the 2016

20
National Post Secondary Student Aid Study found that fifty eight of regular

school students worked either regular or part-time jobs whereas they were

listed at school. Several students conjointly gain employment within the

summer months once they square measure on break. These sources of

financial gain facilitate cowl the prices of basic living expenses. Within the

event that a Students in each high school and school earn cash during a form

of ways in which. Some high school students could believe Associate in

Nursing allowance, or cash from their oldsters throughout their immature

years to hide any expenses. In fact, junior accomplishment found that sixty

fourth of teens within the us depend upon financial gifts from friends and

family as their pocket money. Different students may match when college and

on the weekends additionally to finishing their school assignment. Still,

different students like better to solely work once college isn’t in session by

obtaining a summer job, like being a camp counsellor, mowing lawns, or

lifeguarding. Similarly, there’s a large form of financial gain sources for faculty

20
Department of Education (2016).
National Postsecondary Student Aid Study. from
https://en.m.wikipedia.org/wiki/National_Postsecondary_Student_Aid_Study
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students. Similar in high school, some student’s square measure’s lucky

enough to receive Associate in nursing allowance from their oldsters.

Experience and acquired knowledge increased with age, whereas fluid

intelligence declined. (21Agarwal et al., 2009) Using a combination of

proprietary datasets dealing with credit, auto loans, mortgages, and credit

card fees, they reported that middle-aged adults borrowed more effectively,

paid lower interest rates, and paid fewer fees than either younger adults or

older adults. Furthermore, People are engaging in more complex spending

habits, so financial literacy is becoming increasingly important. People who

are financially literate are better prepared to make long-term financial

decisions that will benefit their future well-being. However, assessing financial

literacy only based on financial knowledge leaves the prediction of its result

less clear. (22Kadoya and Khan, 2020)

"Younger and older people are likely to have lower financial literacy

than those middle-aged. However, these differences could be mitigated

through education." (23Okamoto and Komamura, 2021) However, students’

financial literacy is strongly associated with saving and student's spending

habits. (24Chavali, 2020)

21
Agarwal, S., Driscoll, J. C., Gabaix, X., & Laibson, D. (2009). What is the age of
reason. Dementia, 80, 100. from http://crr.bc.edu/wp-content/uploads/2010/07/IB_10-12-
508.pdf
22
Kadoya, Y., & Khan, M. S. R. (2020). Financial literacy in Japan: New evidence using financial
knowledge, behavior, and attitude. from https://www.mdpi.com/2071-1050/12/9/3683
23
Okamoto, S., & Komamura, K. (2021). Age, gender, and financial literacy in Japan. PloS
one, 16(11), e0259393. from
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0259393
24
Chavali, K. (2020). Saving and spending habits of youth in sultanate of Oman. from
https://jcreview.com/admin/Uploads/Files/61a73f340daac6.26510183.pdfCamer
The Relationship of Financial Literacy to the Spending Habits and Financial Well-being
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Individuals differ from one another in terms of their financial habits

dependent on their gender. Although women are good at tracking expenses

and creating budgets, their financial conduct is inappropriate because they

lack financial knowledge. (25OECD, 2013). Women are unable to make sound

financial decisions on their own and must instead rely heavily on their friends

and family (26Lusardi, 2006). Men have a better awareness of finances than

women do. Although women’s financial attitudes are better than men’s, they

still exhibit insufficient financial conduct and knowledge. (27Dwivedi et al.

2015),

People frequently lack financial knowledge and even the most

fundamental understanding of economics. The significant and ongoing gender

discrepancy is one remarkable aspect of the Empirical evidence on financial

knowledge. (28Lusardi and Mitchell, 2014).

Women require financial education to create a financially secure future

since they encounter particular financial obstacles. Longer life expectancies

than those of males, lower lifetime incomes than those of men, and work

interruptions because of raising children to provide unique problems for

women. Women have different saving needs than men since they are more

likely to spend at least a portion of their retirement as widows. In addition,

25
The Organization for Economic Cooperation and Development (2013) from
https://l.messenger.com/l.php?u=https%3A%2F%2Fwww.oecd.org%2Ffinance%2Ffinancial-
education%2Ffinancialeducationandwomen.
26
Lusardi, A. (2006). Financial literacy and financial education: Review and policy
implications. NFI Policy Brief, (2006-PB), 11. from https://papers.ssrn.com/sol3/papers.cfm?
abstract_id=923437
27
Dwivedi, M., Purohit, H., Mehta, D., & Gurjar, S. (2015). Empowering rural households
through financial literacy: case study of spectacular initiatives by PRADAN. from
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2691457
28
Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory
and evidence. American Economic Journal: Journal of Economic Literature, 52(1), 5-44.
https://www.aeaweb.org/articles?id=10.1257/jel.52.1.5
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compared to males, women are far less likely to plan ahead and are hence

less likely to be prepared for retirement. (29Lusardi and Mitchell, 2008).

Between the ages of 20 and 70, women are less financially adept than

men. In Hungary, men are better educated and more financially literate than

women. In Pakistan, the majority of working women are financially illiterate,

and just one-third of them are familiar with financial services and products.

(30NP, 2020)

Women save more than men, but they also slightly overspend. The

overwhelming majority of people, both men and women, save less than 10%

of their monthly income. However, compared to men, women say they save

more than of their monthly income (31Monitz, 2019).

Students from various groups spend their money in various ways,

particularly among the gender. It examines how students budget money for

their education, whether it comes from scholarships, loans, or parental

support. Previous studies showed that while men spent more money on

entertainment and eating out, women tended to spend more money on

clothing. (32Chi, 2023)

29
Lusardi, A., & Mitchell, O. S. (2008). Planning and financial literacy: How do women
fare?. American economic review, 98(2), 413-417. from
https://pubs.aeaweb.org/doi/abs/10.1257/aer.98.2.413
30
NP, A. A. (2020). Financial Inclusion Through MGNREGS: Problems and
Prospects. Available at SSRN 3523078. from https://papers.ssrn.com/sol3/papers.cfm?
abstract_id=3523078
31
Monitz, L. (2019) Men vs. Women – Who’s Better? from
https://www.atlantis-press.com/article/125944668.pdf.
32
Chi, C. (2023). 'Less than ideal': More than a quarter of senior high-age students not in school.
https://www.philstar.com/headlines/2023/04/25/2261559/less-ideal-more-quarter-senior-high-age-
students-not-school?fbclid=IwAR1knt3FhOHrRwsP329pOGFkxaZfeX8rExKxe1vdQCoS_ZfH1km-
sRohdeA
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Women are more likely than men to have wise budgets. However,

women are more likely to rack up overall, and credit card debt at higher rates.

Young people need early exposure to money management because they

have a variety of responsibilities, including repaying student loans taken out

before they had graduated. All students, not just those getting financial aid,

such as those studying business, must develop responsible spending

practices. (33Jalil et al. 2020).

Financial well-being is the feeling of being financially healthy, happy,

and free from distress. (34Joo, 2008) This feeling is typically based on a

person's own subjective assessment of their financial situation. This

minimizes the probability that an individual will be misguided regarding

financial matters and empowers them to make accurate decisions regarding

their finances. (35Beal and Delpachitra, 2003)

Local Literature

The recent study of impulse buying and financial literacy in the

Philippines only limited the study to the assumption that financial literacy does

decrease impulse buying and yet the issue of impulse buying behavior and

33
Jalil N., Rambeli A., Hashim E., & Zulkifli N.
(2020).The income-expenditure-saving analyses of the university students. from
https://scholar.google.com/scholar?
hl=tl&as_sdt=0%2C5&q=jalil+2020+saving&oq=jalil+2020+savi#d=gs_qabs&t=170479934418
2&u=%23p%3DxkiAcAS2A6wJ
34
Joo, S. (2008) Personal Financial Wellness. from
https://link.springer.com/chapter/10.1007/978-0-387-75734-6_2
35
Beal, D. & Delpachitra, S. (2003). Financial literacy among Australian university students.
from
https://research.usq.edu.au/item/9y759/financial-literacy-among-australian-university-students
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financial wellbeing remains unexplored (36Jabar, 2021). A lot of Filipino were

still uncomfortable having money as a topic since they didn't want to be

branded as greedy or directly translate it as “mukhang pera” and noted it as a

reason why the Philippines where money matters are still regarded as taboo

topics. Additionally, spontaneous purchases frequently happen with little

thought given to their repercussions. The impulse buying behavior is also

enforced when the individual feels feelings of satisfaction after making the

purchase. It is easier to recall the things we often see especially under the

influence of social media, than the things we avoid dealing with in a

conversation specifically, financial matters like budgeting. Money isn't

everything, but it is unquestionably at the center of everything. (37Ladesma,

2022)

Women in the Philippines have a fairly excellent level of financial

literacy among themselves. Within the Asia-Pacific area, the women of the

Philippines achieved the seventh overall position on the Mastercard

Worldwide Index of Financial Knowledge, which was comprised of sixteen

countries.

When compared to males, Filipino women have a higher level of

financial literacy, as evidenced by the fact that they are four percentage points

more likely to understand that the primary function of insurance products is to

serve as a tool for risk management. (38World Bank, 2015)

36
Jabar, M. A., & Delayco, M. L. C. (2021). Impulse Buying and Financial Literacy Among
Public Elementary and High School Teachers in the Philippines. from
https://www.dlsu.edu.ph/wp-content/uploads/2021/08/DLSUBER.2021.July_.4jabar.pdf
37
Ledesma, J. (2022). How good are you with money? from
https://www.pna.gov.ph/opinion/pieces/527-how-good-are-you-with-money
38
World Bank (2015). Financial inclusion and capability survey report highlights.
https://www.worldbank.org/en/news/feature/2015/10/20/financial-inclusion-and-capability-
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Additionally, Women are more confident about their knowledge of

investing, with nearly 77 percent indicating that they had good to extensive

knowledge; 2) Women were more active, with higher average trades,

approximately four per month; and 3) Women accounted for 35 percent of

total trades in 2021, increased from 32 percent in 2020. On top of that, when

COL Financial advertised a webinar, only 13% of the people who participated

were male, whereas 87 percent of the people who participated were female.

Based on these data, it appears that women are in a better position to handle

the financial matters of their families, which could be the reason for their

increased interest. (39COL, 2021)

The level of awareness regarding the fundamentals of personal finance

among Filipino women is rather low. It is three times more probable for

women to state that they are unable to save enough money for retirement

than it is for men. Women have a much lower level of financial literacy than

males. The majority of people who provide care are women, and women are

three times more likely than men to quit their jobs in order to provide care for

a member of their family. ( 40Philippine Business Coalition for Women

Empowerment, 2022)

The Idea that is one that many Millennials follow. Being present in the

moment instead than making The YOLO movement emphasizes making

plans for the future. For As older generations can see, this might easily be
survey-report-highlights?fbclid=IwAR3NmvsO0ID29mRyyHRNO-
sBfqHkqYNHJUTmSnvvtOjkz7zzZ8EpnbLeCqk
39
Citesec Online (2021). https://www.colfinancial.com/ape/Final2/home/disclosures/COL
%20Financial%2017A%202021.pdf?fbclid=IwAR1hB20BianmE-
BN3Rd1Cu392P9Wt57eO8WNTL6vB4lTF1bstummzBfAQcY
40
Philippine Business Coalition for Women Empowerment (2022). Workplace Gender Equality
and Sustainability Reporting. from https://pbcwe.com.ph › FINA...PDF
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terrible for a millennial's financial destiny. They obviously purchase behavior

based on their past purchases. A experience could be a reflection of a way of

life like enrolling in costly yoga programs, fitness classes, and gym

memberships meetings, or after-school pursuits. It could also mean

immersing oneself completely in the culture. This clarifies why so many

millennials have a passion for travel. savoring gastronomic adventures,

registering for the newest watching videos on streaming services and going to

events at the newest Chic places are among the places they find

contentment. Every single one of these are YOLO examples. It stands for a

certain method of existence. (41 YOLO, 2021)

When Monthly installment payments surpass twenty percent of take-

home income. pay, then their debt load is excessive. Given that they don't

generate revenue, these loans are plainly ineffective. Millennials are

pressured to amass wealth. Debt since it's so easy to get credit these days.

Peer pressure has increased as a result of social media's emergence. to stay

current and blend in. Millennials, eight out of 10, don't have enough

emergency merely half of them have life insurance. The inverse of Nine

month’s emergency saving’s worth of costs. This A lack of saving habits is

probably caused by the YOLO mentality. Positively, millennials have greater

investments than previous generations have. Furthermore, they take part in

more heavily involved in the capital and financial sectors, having double as

probable to be invested. An advanced financial and capital market, simple

availability of financial goods, and their increased engagement can be

41
The A Team (2021). The Yolo Movement is here. from
https://www.advisausa.com/2021/11/yolo-movement/
The Relationship of Financial Literacy to the Spending Habits and Financial Well-being
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attributed to services. Considering that younger people are generally less

willing to take risks than older generations, their investment is aided by the

environment. The wealthy plan to go to a hair salon after attending church or

prayer sessions, but those in the upper middle class prioritize going to work

before going to the hair salon. Both the restaurant and the mall are popular

hangouts for the upper income groups. For upper middle class consumers,

but not for the wealthy, medications are the largest category of consumption

drivers. The upper middle class and the wealthy place is the most important

on basic needs when it comes to consuming for the wealthy. However, home

appliances, personal hygiene, skin care, and spa services are far more

significant than prescription drugs. Online and in-home shopping, live

streaming, and video on-demand are all popular among the wealthy. Not a

surprise, given that the wealthy can pay the substantial postpaid, internet, and

VOD subscription fees in addition to the personal shopping fee, delivery fee,

and other additional expenditures associated with online and in-home

shopping. (42Partnerships for Social Enterprise Development Inc., 2016)

Foreign Studies

Student's general low level of financial literacy should be cause for

concern, especially in light of the significant influence financial literacy has on

learner's capacity to manage their finances and preserve financial well-being.

As a result, students' advantage in having higher economic literacy stems

primarily from their increased familiarity with the terms and definitions used in

42
The Social Enterprise Development Partnerships, Incorporated (SEDPI)
(2016). Money tips for millennials. from https://www.rappler.com/business/150122-millennials-
money-tips-planning-future/
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personal finance, rather than from improved understanding or increased

application of that knowledge. (43Cameron et al., 2013) Financial literacy

around the world suggests that students‘ financial literacy is generally

low. (44Obagbuwa and Kwenda, 2020) Students are able to steer clear of

falling into common financial pitfalls and cultivate sound money management

practices if they possess a high level of financial literacy. Students gain a

better understanding of the necessity of managing a budget, reducing

spending as much as possible, conserving money, and investing it wisely

when they have a high degree of financial literacy. ( 45Nurwulandari, 2022)

Nonetheless, freshmen were much more likely to spend all their money

quickly than juniors and seniors. This could be due to lack of awareness of

their budget or not planning appropriately. (46Stollak et al., 2010)

When compared to parents with a lower socioeconomic status, those

with a higher socioeconomic status tend to have a broader perspective and

are broaden financial planning due to their proficiency in literacy skills

(47Bastian et al., 2022) The role parents play in the family in terms of financial

support or education can influence a child's level of financial literacy. The

socioeconomic status of the parent can have an impact on the education of

43
Cameron, M. P., Calderwood, R., Cox, A., Lim, S., & Yamaoka, M. (2013). Personal
financial literacy among high school students in New Zealand, Japan and the USA. from
https://journals.sagepub.com/doi/abs/10.2304/csee.2013.12.3.200
44
Obagbuwa, O., & Kwenda, F. (2020). Determinants of Students' Spending Habits: a Case
Study of Students at a Premier University of African Scholarship. from
https://journals.co.za/doi/pdf/10.31920/1750-4562/2020/v15n4a2
45
Nurwulandari, A. (2022). The Effect of Financial Literacy on Student Financial Management. from
http://ejournal.seaninstitute.or.id/index.php/InfoSains/article/view/1849
46
Stollak, M., Vandenberg, A., Steiner, K., & Richards, J. (2011). Student budgeting and
spending behaviors: a comparative study. from https://citeseerx.ist.psu.edu/document?
repid=rep1&type=pdf&doi=146edc1c488377be7d16adf164d77a5208449d8d
47
Bastian, A. F., Khusaini, K., Mardisentosa, B., Taufik, R., & Widiawati, W. (2022). The
Impact of Financial Education and Socioeconomic Status on the Undergraduate Students'
Financial Literacy. from http://sister.untagsmg.ac.id/index.php/fe/article/view/2385
The Relationship of Financial Literacy to the Spending Habits and Financial Well-being
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the child in financial management. The socioeconomic family can be broken

down into three categories: parental income, social position or profession, and

educational attainment. Because they use financial services and instruments

more frequently, households with higher incomes typically have higher levels

of financial knowledge. Students' level of financial literacy is significantly

influenced by the income they receive from their parents. Parents will be more

interested in teaching their children about financial arrangements if

professionals make it increasingly necessary for them to manage their

finances professionally. In a similar vein, parents will not teach their children

the significance of financial literacy if the profession of parenting does not

support or is not supported by financial knowledge.. Financial knowledge has

an influence on personal financial management, spiritual intelligence has no

influence on personal financial management, and peers have significant

influence on student's personal financial management. Parental education

influences the level of financial knowledge. Students with high parental

education have a higher level of financial knowledge than students with low

parental education. (48Homan, 2015) Individuals with greater financial

knowledge were more likely to save money for future requirements. Those

with greater financial knowledge closely tracked their spending compared to

their peers. Respondents with greater financial knowledge appeared to

manage expenses more effectively than their peers. This is probably because

they know how important it is to plan, keep track of expenses, and pay close

attention to how much they spend. However, in general, respondents with

48
Homan, H. S. (2015). Comparative study of students financial literacy and its demographic
factors. from https://www.atlantis-press.com/proceedings/iceb-15/25366
The Relationship of Financial Literacy to the Spending Habits and Financial Well-being
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greater financial knowledge had better ways of saving and spending, so we

can conclude that financial knowledge enhances money management.

(49Choden et al., 2018) Having the knowledge, experience, skills, and ability

to organize, manage, and control one's finances is the most certain path to

financial freedom, as evidenced by the data and literature. Financial

knowledge is necessary for the effective management of one's financial

resources for one's well-being during one's active working life. By planning

and managing their finances prudently and with good financial knowledge, a

person can avoid financial crises like bankruptcy and a large debt load.

(50Chimezie et al., 2021) Students did not save any money when they

received a scholarship or education loan. More than half of the students

bought things with their money. Students who had a greater understanding of

finances were more likely to make savings decisions, whereas students who

had been heavily influenced by socialization agents and had been exposed to

the consumer market later in life were less likely to do so. Bivariate results

that were statistically significant also showed that students were significantly

less likely to report financial difficulties if they had more influence from

socialization agents or had been exposed to consumer products later in life.

Financial knowledge was also associated with better savings behavior. Those

who saved more were also less likely to have financial difficulties. Students

49
Choden, T., Wangdi, D., Tenzin, J., Khandu, P., Dema, P., Dema, S., & Choden, Y. (2021).
Impact of financial literacy on saving behavior among the III year students of four colleges
under royal university of Bhutan. from
https://www.ijisrt.com/assets/upload/files/IJISRT21DEC207_(7)_(1)_(1).pdf
50
Omakhanlen, A. E., Iyika, P. I., Chimezie, P. O., & Osho, O. L. U. S. E. G. U. N. (2021).
Impact of economic and financial literacy on the spending behaviour of selected public
servants in Lagos state Nigeria. from
https://www.academia.edu/download/95421711/a225107-910.pdf
The Relationship of Financial Literacy to the Spending Habits and Financial Well-being
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who had more and earlier consumer experience in childhood reported greater

savings behavior but also greater financial difficulties. ( 51Sabri and

MacDonald, 2010) Financial socialization did not predict savings, but it was

linked to a greater number of financial issues. Taking into account the three

indicators of financial knowledge, it is evident that financial knowledge had the

greatest impact on financial management because it had the desired effects

for both savings and financial issues. Because it is linked to more savings,

which reduces financial problems, financial knowledge may also have an

indirect effect on financial problems. Spending habits of today's students have

emerged as a major social issue. Thus, students' spending habits are

influenced by their socioeconomic status. (52Tewc, 2016) Consumers from

lower socioeconomic backgrounds spend the majority of their income on food

products. He went on to say that high-status customers always check the

price labels of food products before buying them. In the meantime, people in

the highest socioeconomic groups carefully consider the ingredients of food

before purchasing it. (53Koç and Ceylan, 2012)

54
Based on the study of Alhenawi and Elkhal (2013), Financial

knowledge improves with age.

51
Sabri, M. F., & MacDonald, M. (2010). Savings behavior and financial problems among
college students: The role of financial literacy in Malaysia. from
https://www.academia.edu/download/52094512/pdf_487.pdf
52
POH, T. C. (2016). FACTORS INFLUENCING STUDENTS'SPENDING HABITS IN
MALAYSIA. from https://etd.uum.edu.my/6279/2/s816302_02.pdf
53
Koç, Beşir, and Melike Ceylan. "The effects of social‐economic status of consumers on
purchasing, behaving and attitude to food products: Case study of Van, Turkey. from
https://www.emerald.com/insight/content/doi/10.1108/00070701211230006/full/html
54
Alhenawi, Y. (2013). Financial literacy of US households: Knowledge vs. long-term financial
planning. Financial services review, 22. from https://papers.ssrn.com/sol3/papers.cfm?
abstract_id=2532068
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55
Based on the study of Hill and Asarta (2016), Male and female

students perform equally well on financial knowledge surveys. However,

International studies have also identified a gender gap consistent with that of

the United States. (56Falahati and Paim, 2011; 57

Hung et al. 2012)

Nonetheless, Gender differences were observed, with females outperforming

males. (58Jayaraman and Jambunathan, 2018) However, prominent gender

gap favoring male students. (59Lusardi et al., 2010) Internationally, some

smaller-scale studies conducted in a handful of countries have also identified

a gender gap that favors male students ( 60Becchetti et al., 2013; 61Jang et al.,

2014). These inconsistent findings suggest that more research is needed to

determine whether the gender gap in financial knowledge is a global

phenomenon and identify the determinants that contribute to its presence.

Interestingly, this pervasive gender gap in knowledge does not always

correlate to gender differences concerning financial decisions. Lack of

financial knowledge influences gender differences in financial decisions.

55
Hill, A. T., & Asarta, C. J. (2016). Gender and student achievement in personal finance:
Evidence from Keys to Financial Success. from https://link.springer.com/chapter/10.1007/978-
981-10-0360-8_35
56
Falahati, L., & Paim, L. H. (2011). A comparative study in money attitude among university
students: a gendered view. from
https://www.academia.edu/download/8230958/173_5981am0706_1144_1148.pdf
57
Hung, A., Yoong, J., & Brown, E. (2012). Empowering women through financial awareness
and education. from https://www.oecd-ilibrary.org/finance-and-investment/empowering-
women-through-financial-awareness-and-education_5k9d5v6kh56g-en.
58
Jayaraman, J. D., & Jambunathan, S. (2018). Financial literacy among high school
students: Evidence from India. from
https://journals.sagepub.com/doi/abs/10.1177/2047173418809712
59
Lusardi, A., Mitchell, O. S., & Curto, V. (2010). Financial literacy among the young. from
https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1745-6606.2010.01173.x
60
Becchetti, L., Caiazza, S., & Coviello, D. (2013). Financial education and investment
attitudes in high schools: evidence from a randomized experiment. from
https://www.tandfonline.com/doi/abs/10.1080/09603107.2013.767977
61
Jang, K., Hahn, J., & Park, H. J. (2014). Comparison of financial literacy between Korean
and US high school students. from
https://www.sciencedirect.com/science/article/pii/S1477388014000152
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Local Studies

Spending behavior of the respondents who belong to different socio

economic class are not significantly different from each other. (62Abawag et

al., 2019)

Freshman and her senior year students exhibit higher spending

behavior, and a sophomore year student and her junior year student exhibit

lower spending behavior. (63Villanueva, 2017) 92 out of 96 high school

students have knowledge of investments, budgeting, taxes, credit,

loans/debts, interest rates, and insurance . As students move up in grade

level, their financial knowledge also improves. Older students have more

financial knowledge than first-year students. (64Dulin , 2016)

Individuals in the Philippines who possess a functional understanding

of finances is higher among women than among males. It is 88.7% for

females and 84.2% for males. This distinction can be due to caused by

disparities between the sexes in terms of educational outcomes and exposure

in the media. (65Functional understanding, Education and Mass Media Survey,

2008) Male students score higher in financial literacy, while female students

exhibit increased awareness of financial literacy during the pandemic. Despite

62
Abawag, C. F. N., Domingo I. J. & Rabina G. (2019). Spending Behavior of Management
Students. from
https://www.academia.edu/38979306/Spending_Behavior_of_Management_Students
63
Villanueva S. (2017). An Analysis of the Factors Affecting the Spending and Saving Habits
of a Collage Students. from https://creativematter.skidmore.edu/econ_studt_schol/36/?
fbclid=IwAR32v2ft1f8jhyssxdjRfXPS7JoVbxGARF7M4VTy44ASwqhNO2VnvPCBesc
64
Dulin, G. C. (2016). An analysis on the financial awareness and literacy among the students
of Cagayan State University Andrews campus. from https://www.indianjournals.com/ijor.aspx?
target=ijor:ijarmss&volume=5&issue=3&article=015
65
Technical Education and Skills Development Authority. (2008). From
https://www.tesda.gov.ph/?
fbclid=IwAR0uLvKgofrtRyn51e4QJqn0uiedDl0WoarE1Xb5vN3z7S3bIlU2uMLM2A
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no significant gender difference in financial behavior, females excel in

financial planning, while males tend to save regularly. (66Cainglet et al., 2022)

Strong influence of gender on spending behavior. Women are more

likely to spend on beauty products such as clothing, while men are more likely

to spend on electronics, entertainment, and groceries. It was also found that

women are more likely to engage in financial activities such as: Keep a

written budget, plan your expenses, and save regularly. ( 67Villanueva, 2017)

Female students tend to spend more money on food and art materials, while

male students have other priorities. (De Guzman, 2011)

66
Cainglet, Y. P., Hortillo, J. N. M., & Tan, R. D. (2022). Financial Literacy, Attitude, and
Behavior of Female and Male College Students: The Case of the University of the Philippines
Visayas. from https://pjssh.upv.edu.ph/wp-content/uploads/2023/06/52-70-PJSSH-22-27-F01-
Financial-Literacy-Attitude-and-Behavior-1.pdf
67
Villanueva S. (2017). An Analysis of the Factors Affecting the Spending and Saving Habits
of a Collage Students. from https://creativematter.skidmore.edu/econ_studt_schol/36/?
fbclid=IwAR32v2ft1f8jhyssxdjRfXPS7JoVbxGARF7M4VTy44ASwqhNO2VnvPCBesc
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Synthesis

The collection of studies and literatures presented spending habits and

financial well-being that develop the skills and knowledge of the students.

Furthermore, Students with higher levels of financial literacy are more

likely to exhibit positive spending habits and achieve better financial well-

being. Financially literate students are more inclined to engage in managing

their money, as well as make informed financial decisions, which ultimately

contribute to their financial stability. Thus, financially literate students are less

likely to engage in risky financial behaviors, which can have a detrimental

impact on their financial well-being.

Financial Literacy plays a vital role in shaping the spending habits and

overall financial well-being of students. Moreover, it is evident from various

studies that an elevated level of financial knowledge among students is

associated with better financial decision-making and planning for the future.

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This is reflected in their ability to manage their money which contribute to

enhanced financial well-being.

Overall, findings highlight the significance of financial education in

equipping students with the knowledge and skills necessary to make sound

financial decisions, thereby positively influencing their spending habits and

financial well-being.

Chapter 3

METHODS OF STUDY AND SOURCES OF DATA

This chapter deals with the research procedure which includes the

research design, respondents of the study, data gathering instruments, data

gathering procedures, and statistical treatment of the study.

Research Design

This study was descriptive correlational research design in nature. This

method was used to allow the researchers to thoroughly investigate the

background of the research problem before further research can be carried

out. Moreover, this is the most appropriate research design to use as it

described the variables of the study.

Respondents of the Study

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The respondents of the study are the grade 11 Accountancy, Business

and Management students at Callang National High School.

Research Instrument

To get the appropriate data, the researcher used a survey

questionnaire. The questionnaire was revised from the work of Cuestas Jelou

on his national survey titled “Financial Literacy Survey Questionnaire”.

Statistical Treatment

The data gathered from the Grade 11 ABM at Callang National High

School treated by appropriate statistical tools.

Frequency and Percentage Count. This was used to give general

description of the respondents’ profile.

Weighted Mean. This was used to measure the overall level of

Financial literacy of Grade 11 ABM Students as Callang National High School.

Likert Scale. This was used to measure the respondents’ level of

Financial Literacy of Grade 11 ABM students at Callang National High School.

Pearson r. This was used to measure the relationship between the

personal financial literacy and the spending habits of the respondents when

group according to profile.

Data Gathering Procedure

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The researchers wrote a letter that was addressed to the Principal of

Callang National High School, to ask permission to conduct the said study.

After the permission was given, the researchers prepared a survey-

questionnaire that was given to Thirty Five (35) students.

The researchers float the said questionnaire to the respondents of the

research. After all the data was gathered, the researchers tallied and

interpreted the results. After the results are shown, the researchers gave the

recommendations.

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Chapter 4

This chapter presents the data gathered and the information obtained

from the participants of the study, which is in forms of figures, tables, and

texts. The researchers discussed the facts of the results, and analyses in

order to present principle, relationship, and generalization. The result may be

compared and interpreted with previously accomplished research. Lastly, this

chapter answers the specific questions and the problems.

Profile of the student-participants

Table 1.1: Age of the Students

Age Frequency Percentage

14-16 15 42.86%

17-20 20 57.14%

Table 1.1 presents the profile of the Students in terms of Age. The

table shows that the majority of the respondents are 17 - 20 Years old with the

frequency of 20 or 57.14%, while the rest of the respondents are 14-16 Years

old with the Frequency of 15 or 42.86%. According to the enrollment data

presented by Department of Education (DepEd) information system analyst,

enrolled students on Senior High School are most aged 16 to 18 years old.

Table 1.2: Sex of the Respondents

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Sex Frequency Percentage

MALE 16 45.71%

FEMALE 19 54.29%

Table 1.2 shows the Profile of the Respondents in terms of Sex. The

table presents that there are more Female respondents with the frequency of

19 or 54.29%, than Male respondents with the frequency of 16 or 45.71%.

Normally, there are more female student than males. Moreover, there were

also more female senior high graduates in the Philippines than male.

Table 1.3: Parents Monthly Income

PMI Frequency Percentage

N/A 1 2.86%

At least 40000 to 50000 2 5.71%

between 30000 to 40000 7 20.00%

between 20000 to 30000 5 14.30%

between 10000 to 20000 9 25.71%

between 1000 to 10000 9 25.71%

less than 1000 2 5.71%

This table presents the Frequency Percentage distribution of the

respondents in terms of their Parent’s monthly income. It clearly shows that

there are more parents that have an income ranging between 10000 to 20000

and 1000 to 10000 having the both frequency of 9 or 25.71%. 20.00% of the

respondents or with the frequency of 7 have their parents monthly income

ranging between 30000 to 40000. 5 of them with the frequency of 14.30%

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have their parents monthly income ranging between 20000 to 30000. Both

income ranging at least 40000 to 50000 and less than 1000 have the

frequency of 2 or 5.71%. Lastly, there is 1 respondent who did not answer the

question with the percentage of 2.86%.

Table 1.4: Average Amount of Money Saved

Frequenc
AASM y Percentage

N/A 0 0

less than 500 19 54.29%

between 500 to 1000 12 34.29%

between 1000 to 1500 3 8.57%

between 1500 to 2000 1 2.85%

Others 0 0.00%

This table presents the Frequency Percentage distribution of the

respondents in terms of their Monthly Savings. Majority of the respondents

are saving less than 500 monthly with the frequency of 19 or 54.29%.

Moreover, 12 of them or 34.29% of the respondents are saving between 500

to 1000 monthly. Three (3) of the respondents with the frequency of 8.57%

are saving between 1000 to 1500 monthly. Lastly, there is one respondent

who can save between 1500 to 2000 monthly.

Financial Literacy

Table 2.1: Financial Literacy in terms of Age

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Items Mean SD Description

FLAQ1 4.37 0.547 Advance
FLAQ2 4.06 0.725 Proficient
FLAQ3 3.69 0.796 Proficient
FLAQ4 4.06 0.838 Proficient
FLAQ5 3.31 0.832 Approaching Proficient
Overall 3.90 0.498 Proficient

This table presents the financial literacy of the respondent in terms of

age. The first item about the awareness of the respondents to the money

management despite of the age, reveal that the respondents are advance on

money management awareness with the mean of 4.37, the standard deviation

of 0.547 indicates that there are little variability in responses. This indicates

that the majority of respondents were relatively close to the mean, implying

their attitudes towards money management.

The second item indicates about the awareness on the importance of

budgeting, saving, spending and investing. It reveals that the respondents are

proficient in managing their finances despite of their age with the mean of

4.06, the standard deviation of 0.725 indicates that there are relatively little

variability in the responses, further supporting the notion that the individual is

proficient in their understanding on managing their finances.

The third item indicates about the understanding on the different

currency of money. It shows that the respondents are proficient in

understanding the different currencies of money, with the mean score of 3.69

that also indicates that the respondents’ has a strong understanding on the

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concept. The standard deviation of 0.796 suggests that there is relatively little

variation in the level of their proficiency.

The average mean score of 4.06 on the fourth item suggests that most

individuals in the respondents are proficient about the statement on decision

whether to save or spend. Additionally, the relatively low standard deviation of

0.838 indicates that there is little variation in responses, further supporting the

idea that the respondents possess a strong sense of control over their

financial decision.

Lastly, the respondents are approaching proficient in their ability to

effectively use various financial skills, as dictated by the mean score of 3.31.

Additionally, the low standard deviation of 0.832 suggests that there is not

much variability in their perceived proficiency.

With the overall mean of 3.90, it shows that the financial literacy of the

respondents in terms of their age is considered as proficient. This suggests

that individuals across different age possess a solid understanding of financial

concepts and are knowledgeable about managing their finances effectively.

The low standard deviation indicates high level of consistency in financial

literacy levels across various age demographics.

Table 2.2: Financial Literacy in terms of Sex

Items Mean SD Description

FLSQ1 3.03 1.22 Approaching Proficient
FLSQ2 3.43 1.07 Proficient
FLSQ3 3.71 0.789 Proficient
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FLSQ4 2.89 1.51 Approaching Proficient

FLSQ5 3.6 1.14 Proficient
OVERAL
L 3.33 5.98 Approaching Proficient

This table presents the mean and standard deviation of the financial

literacy of the respondents in terms of their sex.

The first item about the influence of sex on money management shows

that the respondents believes that there are moderate influence of sex on

money management that is considered as approaching proficient with the

mean of 3.03. The standard deviation of 1.22 indicates that there is more

variability in the responses, but overall, the majority of the respondents agree

that there is a relationship between sex and money management.

The second item about their knowledge in accordance with their sex

reveals that the financial knowledge of the respondents in accordance to sex

falls within the proficient range with the mean of3.43. The standard deviation

of 1.07 indicates that there are some variability in the scores.

The third item shows that the respondents’ decision making are

proficient with the mean score of 3.71. The relatively low standard deviation of

0.789 indicates that there is little variation in responses, further supporting the

idea that the respondents possess a strong sense of decision making on what

to be bought.

The fourth item shows that the individuals on the opposite sex, on

average, spend more than those of the specified sex. The mean of 2.89 and

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the standard deviation 0f 1.51 suggests that there is a moderate to high level

of variability in spending habits between the two sex.

The fifth item reveals that the respondents on the specified sex are

saving more money, on average, than those of the opposite sex. The mean of

3.6 and standard deviation of 1.14 suggests that there is relatively low

variability in the savings habits between the two sexes. The description of

proficient indicates that the difference in savings between the sexes is

significant and may reflect good financial management practices among the

specified sex.

It was concluded that there is moderate level of financial literacy

among individuals of both sexes. The mean score of 3.33 which is described

as approaching proficient suggests that individuals have a good

understanding of financial concepts but may still have room for improvement.

However, the high standard deviation of 5.98 indicates a wide variability in

financial literacy levels among individuals, with some scoring significantly

lower or higher than the mean. This suggests that while the overall average is

approaching proficient, there are still significant differences in he financial

literacy levels among the respondents.

Table 2.3: Financial Literacy in terms of Parent’s Monthly Income

Items Mean SD Description

FLPMIQ1 3.69 1.05 Proficient
FLPMIQ2 4.06 0.725 Proficient
FLPMIQ3 3.51 0.919 Proficient
FLPMIQ4 4.06 0.639 Proficient
FLPMIQ5 4 0.686 Proficient

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OVERAL
L 3.86 0.609 Proficient

Table 2.3 presents the Mean, Standard Deviation and Description on

the financial literacy of the respondents in terms of their Parent’s Monthly

Income.

The first item shows that the individuals are proficient in being fully

aware of their parent’s monthly income. This proficiency is quantified by the

mean score of 3.69, indicating a high level of awareness. The standard

deviation of 1.05 suggests that there is variability in the level of awareness

among the respondents, overall, the individuals fall within the proficient range.

The second item reveals that the individuals are proficient in knowing

the importance of money management. This proficiency is quantified by the

mean score of 4.06, which indicates a high level of understanding and

awareness of the importance of money management. The standard deviation

of 0.725 suggests that there is minimal variability in the gathered data.

The data on the third item suggests that the respondents are proficient

in discussing financial matters with their parents. With the mean of 3.51 and

standard deviation of 0.919, it indicates that they are likely open to sharing

and receiving advice on financial matters within their family relationships.

The fourth item about the parents influence on the respondents

spending and saving behaviors reveals that, the mean of 4.06 indicates

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proficiency in financial management. With the standard deviation of 0.639,

suggests that the respondents are being influenced by their parents behavior.

The fifth item with the mean of 4 and a standard deviation of 0.686

indicates that the respondents has a proficient understanding of setting

realistic financial goals based on their parent’s monthly income. This suggests

that they are able to make practical and achievable financial plans, showing a

strong grasps of financial literacy responsibility.

The overall mean 3.86 indicates that the financial literacy of the

respondents in terms of their parent’s monthly income have a proficient level

of understanding. The standard deviation of 0.609 suggests that the financial

literacy scores are relatively close to the mean, indicating that there is not a

significant amount of variability among the respondents.

Table 2.4: Financial Literacy in terms of Monthly Savings

Items Mean SD Description

FLMSQ1 4.89 0.323 Advance
FLMSQ2 4.6 0.553 Advance
FLMSQ3 4.49 0.658 Advance
FLMSQ4 3.74 0.919 Proficient
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FLMSQ5 3.34 1.06 Approaching Proficient

OVERAL
L 4.21 0.425 Advance

Table 2.4 presents the financial literacy of the respondents in terms of

their monthly saving.

On the first item, the mean of 4.89 interpret that the majority of the

respondents hold a strong belief that saving money is important. Moreover, it

indicates a high level of agreement with the statement and falls within the

range of being advance. The small standard deviation of 0.323 suggests that

the responses are closely clustered around the mean indicating a high level of

relativity among the respondents.

The item number two about the awareness on the benefits of saving

money early has a mean value of 4.6 indicating that on average, respondents

have a relatively high level that is being described as advance of awareness

regarding the benefits of saving money early. The standard deviation of 0.553

suggests that there is some variability in the responses.

The third item about the importance of frequently saving money for

future financial use is considered as advance with the mean of 4.49 shows

that the respondents have a high level of knowledge regarding its importance.

The standard deviation of 0.658 shows that despite of the majority of the

respondents exhibit a good understanding of the importance of saving, the

variability indicated by the standard deviation suggests that there are

respondents who need improvements.

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On the item four presents about the saving the allowance than

spending has a mean of 3.74 have a proficient level of behavior when it

comes to saving their allowance instead of spending. This indicates that most

of the respondents are likely to prioritize saving over immediate spending

when it comes to their allowance. The standard deviation of 0.919 indicates

that there is some variability in respondent’s responses, it suggests that there

may be some individuals who are less diligent in saving their allowance.

On the fifth item with the mean score of 3.34, it presents that the

respondents are approaching proficient level of knowledge when it comes to

avoiding the temptations that may derail their saving efforts. The standard

deviation of 1.06 shows the high variability on the responses.

The overall mean of 4.21 is high, indicating that the respondents have

a strong understanding and proficiency in saving their money. It is described

as advance implying that the respondents possess high level of financial

literacy in managing their monthly savings. The standard deviation of 0.425

suggests that there is minimal variability in the scores, further supporting the

consistency and accuracy of the results.

Spending Habits

Table 3.1: Spending Habits in terms of Parent’s Monthly Income

Items Mean SD Description

SHPMIQ1 4.29 0.622 Strongly Agree
SHPMIQ2 3.97 0.664 Agree
SHPMIQ3 4.03 0.857 Agree
SHPMIQ4 4.11 0.9 Agree

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SHPMIQ5 2.74 1.4 Neutral

SHPMIQ6 3.69 0.963 Agree
SHPMIQ7 3.57 0.698 Agree
OVERALL 3.77 0.429 Agree

Table 3.1 presents the spending habits of the respondents in terms of

their parent’s monthly income.

Based on the mean of 4.29 and the standard deviation of 0.622 on the

first item, the respondents tend to strongly agree in knowing the importance of

spending money based on their parent’s monthly income. The high mean

score shows that the majority of the respondents agree with the importance of

considering their parent’s monthly income when making spending decisions.

The low standard deviation indicates that there is little variability in responses,

meaning that a large majority of respondents agree with the statement.

The item number two about the prioritization on buying necessary

items, have a mean of 3.97 shows that the respondents tend to agree. The

mean score suggests that a majority of respondents prioritize purchasing

essential items. The standard deviation indicates that there is relatively low

variability in responses, meaning that most respondents agree with prioritizing

necessary purchases.

The mean score of 4.03 on the item number three suggests that he

respondents generally agree on the consideration on whether they can afford

the food. The standard deviation of 0.857 indicates that there is some

variability in responses. While the majority of the respondents agree with

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considering affordability before purchasing food, there are some who may

have stronger or weaker opinions on his matter. This suggests that there is

some diversity in how the individuals approach their food purchases in relation

to their financial situations.

The item number four about prioritizing academic needs have a mean

score of 4.11, which shows that the respondents generally agree. With the

standard deviation of 0.9, it indicates that there is some variability in

responses. While the overall trend shows agreement with prioritizing

academic needs, there are some individuals whose views deviate more

strongly in their direction. This variability suggests that while the majority of

respondents prioritize buying academic needs, there are also respondents

who are not prioritizing academic needs.

The mean score of 2.74 on the item number five indicates a neutral

response on the respondents paying vehicles as way of transportation. The

standard deviation of 4 indicates a fair amount of variability in responses. This

means that while the overall responses may be neutral, there are respondents

who disagree or agree for paying vehicles for transportation.

In the item number six, the mean score of 3.69 indicates that the

respondents generally agree on comparing prices when shopping for major

expenses. This shows that individuals tend to actively consider and compare

prices when making significant purchases. The standard deviation of 0.963 is

relatively low, which indicates that the responses are clustered closely around

the mean. This means that there is not significant amount of variability in
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responses, and most respondents appear to have a consistent agreement on

the importance of comparing prices for major expenses.

The mean score of 3.57 suggests that the respondents generally agree

on tracking their expenditure and allowance, which indicates that individuals

tend to monitor and track their spending habits and budgeting allocations. The

standard deviation of 0.698 is relatively low, indicating that the responses are

clustered closely around the mean. Overall, the data indicates that individuals

are proactive in monitoring their financial activities.

The overall mean score of 3.77 indicates that respondents generally

agree about the spending habits in relation to their parent’s monthly income.

This suggests that individuals are conscious of their spending behavior. The

standard deviation of 0.429 is relatively low, indicating that the responses are

closely clustered around the mean. Overall, the data indicates that individuals

are aware of and considerate of their parents’ financial situation when

managing their own expenses.

Table 4

r- p-
Variables value Meaning df value decision Interpretation
Financial Literacy and Weak Positive reject Significant
Spending Habits 0.448 Correlation 33 0.007 HO Relationship

The table 4 shows the significant relationship between financial literacy

and spending habits of the respondents towards Statistics and Probability.

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Based on the result, it is found that there is a weak positive correlation

between the two variables with computed r-value of 0.448. It also approved

that there is a significant relationship between the two variables. Therefore,

the decision is to reject null hypothesis (HO) and accept the alternative

hypothesis that there is a significant relationship on the personal financial

literacy and the spending habits of the respondents when group according to

profile that is stated in the statement of the problem of the study.

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Chapter 5

Summary of Findings, Conclusion and Recommendation

This is the last chapter of the main body of this research which includes

the summary of the major findings and conclusions obtained. The latter was

based on the findings of the study. It also discusses the importance of the

results to the objectives and problems stated in the introduction in chapter

one.

Summary

Findings of the study indicate the relationship of spending habits and

financial well-being of the Grade 11 students, and there are 35 students who

participated in this study. All of the respondents are from grade 11, most of

the respondents are female (19) compared to male (16). Majority of the

respondents fell within the age of 17-20 with a percentage of 57.14% while

the rest of the respondents are 14-16 with a percentage of 42.86%. The table

shows the distribution of respondents according to their parents' monthly

income. It demonstrates that the majority of respondents fall into the 10,000 to

20,000 and 1,000 to 10,000 income groups, with each accounting for 25.71%

of the total. Additionally, 20.00% of parents earn between 30,000 and 40,000

per month, while 14.30% earn between 20,000 and 30,000. The frequencies

decrease by 5.71% for income levels above 40,000 and below 1,000. One

responder, representing 2.86%, did not offer any information.

According to their monthly saving’s. The majority (54.29%) saves less

than 500 per month. In addition, 34.29% save between 500 and 1,000, and

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8.57% save between 1,000 and 1500. Only one respondent (2.86%) saves

between 1500 and 2000 per month.

Financial literacy in terms of age comes in the overall mean financial

literacy score of 3.90 indicates that respondents, regardless of age, have a

solid grasp of financial concepts. This demonstrates strong financial

management skills across all age groups.

Additionally, in terms of sex the study found a moderate level of

financial literacy among both genders, with an average score of 3.33

approaching proficiency. However, there's a high standard deviation of 5.98,

suggesting some have much lower or higher levels of financial literacy. This

indicates a need for targeted improvement efforts despite the overall average

nearing proficiency.

Moreover, in terms of Parents monthly income, it reveals a proficient

level of financial literacy among respondents concerning their parents'

monthly income, with an average score of 3.86. The low standard deviation of

0.609 indicates minimal variability in scores, suggesting consistency among

respondents' understanding of financial concepts related to parental income.

It also affects their monthly income which shows a high average score

of 4.21, indicating strong proficiency among respondents in saving money.

Described as advanced, it suggests a high level of financial literacy in

managing monthly savings. With a low standard deviation of 0.425, there's

minimal variability in scores, supporting the consistency and accuracy of the

findings.

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And in terms of Spending Habits in terms of parent’s monthly income,

the study shows a mean score of 3.77, indicating general agreement among

respondents regarding spending habits relative to their parents' monthly

income. This suggests awareness and consciousness about spending

behavior. With a low standard deviation of 0.429, responses closely cluster

around the mean, indicating consistency. Overall, individuals seem

considerate of their parents' financial situation when managing their

expenses.

Conclusion of Findings

There is weak positive correlation indicated by the r value, it can be

concluded that while there is a significant relationship between financial

literacy and the spending habits and financial well-being of ABM

(Accountancy, Business, and Management) students, the impact of financial

literacy on these outcomes is not very strong. This suggests that while having

a good level of financial literacy may influence spending habits and financial

well-being to some extent, there are likely other factors at play that also

contribute significantly to these outcomes.

Factors such as socioeconomic background, cultural influences,

individual attitudes and beliefs, and personal financial experiences may also

play a substantial role in shaping spending habits and financial well-being.

Therefore, simply improving financial literacy through educational initiatives

may not be sufficient to substantially change the spending habits and financial

well-being of ABM students.

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To help students manage money better and improve their financial

situation, schools can do a few things. They can teach practical money skills,

give personalized advice on good money habits, offer resources and help,

and tackle any big problems that make it hard for students to handle money.

By doing all this, schools can really help students learn how to handle money

well and be more financially secure in the future.

Recommendation

For future studies, there is a need to broaden the scope to involve

other factors relevant to determining the level of financial literacy of the

students and its relationship to their spending habits. In addition, the

assessment of the efficiency and effectiveness of the finance-related subjects

undertaken by the ABM students to the level of financial literacy that may

affect the spending habits.

To the administration, implementation of financial literacy programs as

they prepare themselves to college life which is seen to be more financially

challenging specially to spending habits. Through this, students will have a

better understanding on the different spending behaviors on the practical

ways to put into application to their financial knowledge.

In addition, the institution should also participate in the financial literacy

through having this kind of event. This is to give the students an avenue

where they will be able to appreciate the importance of financial literacy,

widen their perspective and knowledge on financial matters.

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For teachers, especially those who are inclined in financial matters

should focus on providing practical and hands-on learning opportunities by

giving them chance to apply their financial literacy knowledge in real-life

scenarios especially in spending habits. Assign projects and activities that

require them to create them to create financial decisions.

Furthermore, parents should also take into consideration the results of

this research and maintain the kind of monitoring they perform with their

children as to how their financial resources should be managed. They should

give significance to their roles in the financial socialization of their children to

have a positive impact on their children’s behavior especially on their

spending habits. Moreover, the parents shall encourage their children to join

cooperatives since this will enhance the financial well-being of an individual.

For students, since there is a relationship between he financial literacy

and spending habits they should improve their financial literacy where they

can gain more control over their finances and develop habits that contribute to

a secure financial future.

Suggestion for Future Researchers

This study will greatly help future researchers; as they can get

information that may guide them to their similar studies. It will be easier for

them to make similar studies. This research will serve as basis or reference

material of the future researcher as well as motivation for future studies

related to The Relationship of Financial Literacy to the Spending Habits and

Financial Well-Being of the Accountancy, Business and Management (ABM)

Students.
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