Chapter 2

REVIEW OF RELATED LITERATURES AND STUDIES

This chapter presents the relevant literature and studies local or foreign taken from

some books, journals, published thesis and dissertation, and from the internet.

A. Financial Management Practices

Improving organizational performance, especially in small and medium-sized

businesses (SMEs), requires effective financial management techniques. Using

information from 45 small and 72 medium-sized manufacturing companies, this study

evaluated the effects of these strategies on SMEs. According to this study, asset

management has no noticeable effect on organizational performance, while working

capital and capital budget management do. By providing empirical evidence of the

substantial impact of financial management methods on SME performance in the

manufacturing sector, it adds to the body of literature.1 The millennial generation, aged 18-

37, significantly impacts the economy and labor force. The 2008 Great Recession and

COVID-19 worsened high student debt. This study evaluates financial status, identifying

low financial literacy, and suggests personalized education initiatives.2 The impact of

financial management practices on firm performance in emerging markets, analyzing data

from various industries and regions. It highlights key factors that enhance firm

performance, providing valuable insights for managers, insights for managers, investor on

achieving sustainable growth and resilience in dynamic market environments. 3 It

1
Otoo, Frank Nana Kweku. “Assessing the Influence of Financial Management Practices on Organizational
Performance of Small- and Medium-Scale Enterprises.” Vilakshan - XIMB Journal of Management,
February 29, 2024. ISSN: 0973-1954. Assessing the influence of financial management practices on
organizational performance of small- and medium-scale enterprises | Emerald Insight
2
Mang'ana, K. M., Ndyetabula, D. W., & Hokororo, S. J. (2023). Financial management practices and
performance of agricultural small and medium enterprises in Tanzania. Social Sciences & Humanities Open,
7(1), 100494. Financial management practices and performance of agricultural small and medium
enterprises in Tanzania - ScienceDirect
3
highlights key factors that enhance firm performance, providing valuable insights for

managers, insights for managers, investor on achieving sustainable growth and resilience

in dynamic market environments.4 Effective financial management is crucial for

organizational success. It analyzes financial management as network of interdependent

processes involving investors and managers. By closely monitoring financial performance,

organizations can optimize resource use. It offers insights into optimizing financial

management processes for better outcomes. 5Micro, Small and Medium Enterprises

(MSMEs) are crucial to the Philippine economy, reducing poverty and creating jobs. The

financial management practices of MSMEs in Danao City, Cebu, using data from 354

owners and employees. It showed the moderate implementation of financial practices, with

many MSMEs not adhering to standards, risking sustainability. 6 Micro-entrepreneurship is

vital for reducing poverty and creating jobs yet many fail due to poor financial

management. 80 micro-entrepreneurs in Ifugao, Philippines, reveals that most were

female, aged 40-90, married, Tuwali, and college graduates with technical backgrounds.

The study found high practices in cash and current liabilities management but low in fixed

asset management, highlighting the need for improved financial management to sustain

these businesses.7 Financial is crucial for organizations, funding their programs and

services. It identified the best financial management practices in Cotabato City’s local

government, highlighting gaps through interviews and document analysis. It recommends

4
Solanki, Radha. “Financial Management Practices and Firm Performance: Evidence from Emerging
Markets.” The Pharmaceutical and Chemical Journal 11, no. 1 (2024): 67-69. ISSN: 2349-7092.
CODEN(USA): PCJHBA
5
Sitinjak, Charli, Anne Johanna, Buschhaus Avinash, and Bevoor Bevoor. “Financial Management: A
System of Relations for Optimizing Enterprise Finances – a Review.” Journal Markcount Finance 1, no. 3
(June 2023): 160-170. Financial Management: A System of Relations for Optimizing Enterprise Finances –
a Review (researchgate.net)
6
Anoos, Jose Marie M., Judy Ann O. Ferrater-Gimena, Jonathan O. Etcuban, Aahron M. Dinauanao, Philip
Joel D.R. Macugay, and Lolita V. Velita. “Financial Management of Micro, Small, and Medium Enterprises
in Cebu, Philippines.” International Journal of Small Business and Entrepreneurship Research 8, no. 1
(January 2020): 53-76. Published by ECRTD-UK. Print ISSN: 2053-5821, Online ISSN: 2053-583X..
7
Caclini, Moraya P. “Financial Model: A Practical Tool for Financial Management Practices of Micro-
enterprises in Ifugao, Philippines.” Res Militaris 12, no. 6 (Winter 2022). College of Business and
Management, Ifugao State University, Lagawe, Ifugao, Philippines  (resmilitaris.net)
more financial management training, especially for younger officials, and provides

strategies for improving community management.8 The impact of financial management

practices on SME growth, using data from 50 SMEs, most of the respondents were female,

averaging 36.9 years old with 8.78 years in business. They excelled in working capital

management but were moderate in capital structure and investment decisions. By focusing

on working capital management, careful capital structuring, and strengthening investment

decision to ensure business success.9 20 food cart businesses in Cabnatuan City, Nueva

Ecija was evaluated in financial management practices. It found significant gaps in record-

keeping, budgeting, and revenue management despite basic financial literacy. This

provides insights for food cart owners to improved financial practices, training and policy

support to enhance the financial skill.10

In conclusion, an effective financial management practices are essential for enhancing

organizational performance across various sectors, including SMEs, agriculture, and local

government. Studies consistently show that practices like working capital management

and capital budgeting significantly impact performance, while gaps in financial literacy

and adherence to standards pose risks to sustainability. However, there is a notable gap in

research specifically addressing financial management practices among utility workers.

B. Saving Management Practices

It reveals that many students struggle with financial management and have low

financial literacy. However. It finds a positive correlation between regular saving habits
8
Salam, Norodin D., and Marwisa Sedik-Salam. “Best Practices on Financial Management: A Collaborative
Academic Interventions in Cotabato City, Southern Philippines.” JPAIR Multidisciplinary Research 31
(January 2018). (PDF) Best Practices on Financial Management: A Collaborative Academic Interventions in
Cotabato City, Southern Philippines (researchgate.net)
9
Alferos, Dennis Biober. “The Effects of Financial Management Practices to the Growth of Small and
Medium Enterprises in Zambales, Philippines.” Magna Scientia Advanced Research and Reviews 8, no. 2
(2023): 036–045 The effects of financial management practices to the growth of small and medium
enterprises in Zambales, Philippines (magnascientiapub.com)
10
Prado, John Paul Bulado, and Arjhel Valenton Domingo. “Financial Management Practices and
Challenges among Food Cart Businesses in Nueva Ecija, Philippines: Insights and Implications.” World
Journal of Advanced Research and Reviews 23, no. 2 (2024): 1070–1078.
and improved money management. The study recommends financial education programs

to enhance students’ money management and encourage saving habits. 11 Saving is a

crucial macroeconomic variable studied as both individual household levels. It finds out

that rural workers save more and are more aware of formal saving methods compared to

urban workers. Inflation is a major obstacle in both areas. It shows that urban areas, saving

is influenced by education, income, and dependents. For rural workers, key factors include

family income, household size, number of earners. 12 Savings play a crucial role as a

backup when primary income sources are disrupted. It systematically reviewed 124

articles on saving behavior from 2012 to 2021. It identified 15 factors influencing saving

decisions, categorized into internal (e.g., personal wealth, financial literacy, psychological

influences) and external factors (e.g., macroeconomic conditions, financial services,

geographic factors). It highlights the need for comprehensive research to understand these

influences better.13 Saving management involves empowering and educating consumers to

financially prepared in ways that are relevant to our lives. It examines the key

determinants of saving management among 2500 working adults in Peninsular Malaysia.

It identifies parents’ characteristics, investment skills, financial literacy, and expense

management as crucial factors in enhancing saving skills. It highlights the importance of

developing good saving habits to provide a financial safety net during downturns. 14 The

study “Determinants of Saving and Investment of Bank Workers: Case of Commercial

11
ridhar, S. “Saving Habits and Financial Management among College Students: A Study.” International
Journal of Creative Research Thoughts (IJCRT) 11, no. 5 (May 2023): d757. ISSN 2320-2882. Department
of MBA, ISSM B-School, Chennai, India.
12
Thiravia, J., Mary Gloria, and P. Santhi. “Saving Behaviour Among Unorganized Sector Workers in
Coimbatore District.” CLEAR International Journal of Research in Commerce & Management 5, no. 12
(2014): 52. ISSN 2249-4561.
13
Jumena, Bayu Bastian, Steve Siaila, and J.R. Widokarti. “Saving Behaviour: Factors That Affect Saving
Decisions (Systematic Literature Review Approach).” Jurnal Economic Resource 5, no. 2 (September
2022): 217-235.
14
Murugiah, Logasvathi. “Saving Management in Malaysia.” Economic Resource 39, no. 10 (2021): Special
Issue: Recent Developments in Economics, Business and Management. School of Economics, Finance and
Banking, College of Business, Universiti Utara Malaysia, Sintok, Kedah, Malaysia.
Bank of Ethiopia, Wolaita Sodo Branch” assesses saving and investment behaviors among

50 bank workers. It finds that 86% save part of their income for education, housing, and

income-generating activities, with only 11.63% saving specifically for investments. Key

determinants include salary, number of dependents, interest rates, and holidays. Financial

awareness programs, additional jobs, family planning, incentives, training, and efficient

resource utilization to improve saving management practices15

Many Filipinos are increasing prioritizing savings, blending traditional practices with a

rapidly evolving digital landscape. The Philippines’ economy, known as the ‘rising tiger

of Asia,’ has grown steadily, enhancing Filipinos’ earning capacities. Traditional attitudes

still influence saving behaviors, emphasizing financial security. Factors like the ‘tingi’

culture, ‘utang na loob,’ family structure, income levels, and remittances shape saving

habits. Traditional methods like local banks and ‘Paluwagan’ coexist with digital options

like online banking and mobile money apps. Government and social media efforts are

boosting financial literacy, promoting better money management. This evolving savings

culture underscores the importance of financial security and suggests a future of greater

financial independence and adaptability.16 A recent survey using Ajzen’s Theory of

Planned Behavior explored saving intentions among Filipinos. It found that attitudes

towards saving, subjective norms, and perceived behavioral control significantly but

weakly influence saving intentions, while financial literacy does not. Factors like age,

gender, number of siblings, place of birth (Davao del Sur), and income do not moderate

these relationships. It highlights a potential saving-investment gap that could impact

15
Gebre, Birhanu Alemu. “Saving and Investment Practice of Bank Workers: Case of Commercial Bank of
Ethiopia Wolaita Sodo Branch Workers.” Research Journal of Finance and Accounting 10, no. 7 (2019).
Wolaita Sodo University, College of Business and Economics, Department of Accounting and Finance.
ISSN 2222-1697 (Paper) ISSN 2222-2847
16
Lucero, Gerardine. “Exploring the Culture of Savings in the Philippines: How Filipinos Are Prioritizing
Financial Security.” July 31, 2023.
economic growth.17 More than two years after the COVID-19 pandemic began, a Bangko

Sentral ng Pilipinas survey reveals an improved saving mindset among Filipinos. Despite

34% losing income, many relied on savings. The Q1 2022 Consumer Expectations Survey

shows households with savings increased to 31.1% from 30.2% in Q4 2021. Primary

reasons for saving include emergencies, health expenses, retirement, education, and

business investments.18 The Bangko Sentral ng Pilipinas’ Q1 Consumer Expectations

Survey (CES) shows an increase in Filipino households saving money, with 45.1% saving

during the quarter, up from 41.1%. However, those saving 10% or more of their income

decreased to 41.4%. Overall, 34.9% of households had savings, mainly for emergencies,

education, retirement, health, and business investments. Savings methods included bank

deposits (67.6%), home savings (39.6%), and cooperatives or investments (22.9%).

Among households with overseas Filipino workers (OFWs), 98.1% used remittances for

household needs, also allocating funds for education, medical expenses, savings, debt

payments, housing, vehicles, and investments. BSP data indicates 43.2% of Filipinos are

savers, with 68.3% keeping savings at home, and 47.1% have loans, mostly from informal

sources.19 A Manulife survey titled “Know Your Ys and Zs” found that the COVID-19

pandemic has prompted Filipino Millennials (25-40) and Gen Zs (15-24) to save and

invest more. Conducted with 500 respondents between April and May 2021, the survey

revealed that 87% worry about future uncertainties, leading them to save for emergencies,

daily expenses, and family needs. Despite limited funds, 77% prioritize necessities, 82%

avoid debt, and 75% follow a budget, saving about 10% of their income. Additionally,

67% of Millennials invest in financial instruments, and 79% seek ways to grow their
17
Pandita, Bai Charity. “Impact of Financial Literacy, Attitude Towards Saving, Subjective Norms, and
Perceived Behavioral Control on Intention to Save of Ateneo de Davao University Finance Students.”
December 2019.
18
Manila Standard. “More Filipinos Recognize the Value of Saving Money.” November 5, 2022.
19
Bangko Sentral ng Pilipinas. “Filipino Savers Are Rising.” March 26, 2017.
money. Gen Zs start saving at 17 and investing at 21, compared to Millennials who start at

23 and 27. Furthermore, 92% of Gen Zs plan to buy insurance within the next two years.

The pandemic has accelerated their desire for financial stability.20

In conclusion, saving practices are influenced by various factors including financial

literacy, income levels, family structure, and cultural attitudes. Regular saving habits can

significantly improve money management skills, and comprehensive financial education

programs are essential for enhancing these skills. The evolving savings culture, especially

in the Philippines, highlights the importance of financial security and suggests a future of

greater financial independence and adaptability.

C. Investment Management Practices

It examines the relevance of bounded rationality among institutional investors in

Malysia, focusing on its impact on asset prices and market dynamics. It reveals that

institutional investors exhibit bounded rationality influenced by individual, institutional,

and social factors, leading to various behavioral risks. Despite recognizing these risks,

fund managers show low self-awareness and institutional readiness to manage them. It

highlights the need for better regulation of behavioral risk. 21 Private hospitals in Kenya,

providing over 47% of healthcare services to the country’s 51 million people, face

sustainability challenges that threaten their ability to deliver health services and achieve

the social pillar of Kenya’s Vision 2030. A study examined the impact of investment

management practices on the sustainability of private hospitals in Nairobi County, guided

by agency theory. The results indicated that investment management practices positively

and significantly affect the sustainability of private hospitals, with an R2 of 39.3%. It

20
Miraflor, Madelaine B. “COVID-19 Pandemic Prompts Younger Filipinos to Save, Invest.” Manila
Bulletin, August 29, 2021.
21
Ahmad, Zamri, Haslindar Ibrahim, and Jasman Tuyon. “Behavior of Fund Managers in Malaysian
Investment Management Industry.” Qualitative Research in Financial Markets 9, no. 3 (August 7, 2017).
concluded that these practices have a significant relationship. 22 Organizations are

increasingly pressured to replace manual processes with core systems like Investment

Management Systems (IMS), which facilitate compliant trading by automating regulatory

rules. This study explores how IMS implementations at eight global financial

organizations may alter entrenched practices.23 Asset pricing models, such as the Capital

Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT), are essential for

evaluating asset values and guiding investment management practices. These models help

optimize asset allocation strategies to maximize returns and minimize risks. Recent studies

have integrated machine learning techniques into these models, achieving high predictive

accuracies. By refining these practices and incorporating advanced analytical tools,

financial organizations can enhance their investment management functions, supporting

long-term sustainability and success.24 Sustainable investment practices impact the

working capital management of SMEs. It reveals that sustainable investment practices

significantly and negatively influence working capital. Additionally, green finance (GF)

moderates this relationship, indicating that SMEs engaged in sustainable investments

manage their working capital more efficiently, thereby promoting long-term sustainability

in their operations.25

Corporate performance is now evaluated by financial metrics and a company’s

commitment to environmental sustainability and community well-being. Success is

22
Washika, Ogutu Amos, David Kiragu, Anthony Ngunyi, and Mohammed Shano. “Effect of Investment
Management Practices on Sustainability of Private Hospitals in Nairobi, Kenya.” International Journal of
Science and Research (IJSR) 10, no. 1 (January 2021). Dedan Kimathi University of Technology, Meru
University of Science and Technology. ISSN 2319-7064.
23
Gozman, Daniel, and Wendy Currie. “The Role of Investment Management Systems in Regulatory
Compliance: A Post-Financial Crisis Study of Displacement Mechanisms.” Journal of Information
Technology 29, no. 1 (2014).
24
Meng, Chao, Chen Chen, Heng Xu, and Ting Li. “Asset Pricing and Portfolio Investment Management
Using Machine Learning: Research Trend Analysis Using Scientometrics.” Econ Journal.
https://doi.org/10.1515/econ-2022-0108. March 08, 2024
25
Habib, Ashfaq, et al. “The Role of Sustainable Investment Practices in Maintaining Efficient Working
Capital Management.” Journal of International Studies 17, no. 2 (June 1, 2024): 206-219.
measured by integrating economic, environmental, and social aspects. Studies on socially

responsible investment show that CSR and ESG policies positively affect long-term

viability, often measured by firm value. In the Philippines, CSR practices and ESG

disclosures enhance long-term company performance rather than short-term results. 26 It

assessed the investment practices of employees at St. Paul University Philippines (SPUP),

including administrators, faculty, and support staff. By limited resources and lack of

motivation hinder their investment activities. Loans, life insurance, and capital for small

businesses were the most common investment plans. The study recommended that the

SPU-multipurpose Cooperative continue providing excellent services to support members’

investment practices and suggested orienting SPUP employees on the benefits and positive

impacts of investing.27 It examined the investment patterns, preferences, and practices of

Wesleyan University-Philippines employees. The 305 respondents, mostly aged 19-28,

married, college graduates with 1-6 years of service, permanent employees, earning

10,000-21,000 PHP monthly, and having additional income from spouses, primarily saved

for emergencies and allocated 1-5% of their income to investments. It found significant

correlations between financial management practices and profile variables such as age,

years of service, employment status, monthly income, and additional income sources.

Years of service were strongly linked to savings management, while age, employment

status, and additional income were significantly associated with investment management

practices.28 It characterizes the investment behaviors of Business students in Mindanao,

Philippines, focusing on their investment awareness and decision-making. The dimensions

26
Almarzooqi, Fatema, and Haitham Nobanee. “The Role of Financial Management in Promoting
Sustainable Business Practices and Development in the Philippines.” March 2022. Abu Dhabi University.
27
Dela Cruz, Corazon M., Estrella Y. Yu, and Juvie D. Bacani. “Investment Practices of St. Paul University
Philippines Employees.” 2021. St. Paul University Philippines.
28
Mamaclay, Ali G., Kevin M. Rivera, and Manuel P. Castillo. “Investment Pattern, Preferences, and
Financial Management Practices of Wesleyan University-Philippines Employees.” Advances in Social
included investor awareness, risk appetite, and stock market literacy. Regression analysis

revealed that Business students are cautious investors who rely on expert advice before

making decisions. It highlights the importance of financial education in shaping prudent

investment behaviors among students.29 It examines how Cargill leverages the

financialization of agriculture through private equity-driven land investments in the

Philippines. It highlights Cargill’s adaptation strategies to global agricultural changes and

local dynamics, following Burch and Lawrence’s argument that finance capital reshapes

agri-food supply chain relationships. It explores the growing connection between finance

and agriculture and discusses Cargill’s role in this transition within the Philippine setting. 30

In conclusion, investment management practices play a crucial role in enhancing the

sustainability and financial health of various organizations, from private hospitals in

Kenya to SMEs and educational institutions. Effective investment management, including

the use of advanced models and systems, helps optimize asset allocation, manage risks,

and ensure long-term viability. For utility workers, adopting sound investment

management practices can lead to better financial stability and growth. By investing

wisely and leveraging tools like Investment Management Systems (IMS), by this utility

workers can secure their financial future, manage their resources efficiently, and

contribute to their overall well-being and economic security.

D. Debt Management Practices

It examines Ukraine’s growing public debt and its impact on financial stability,

highlighting the increase in both external and internal debts over the past decade, which

threatens the country’s economic security. It aims to understand the formation of

29
Estrada, Laarni Jane, Stella Meneses, Mae Valencia, and John Vianne Murcia. “Characterizing Investment
Behavior Among Business Students in Southern Mindanao, Philippines.” Advances in Social Sciences
Research Journal 6, no. 3 (2022).
30
Salerno, Tania. “Capitalising on the Financialisation of Agriculture: Cargill’s Land Investment
Techniques in the Philippines.” Journal Name, vol. 1709, no. 1727, 17 Nov. 2015, pp. 1709-1727.
Ukraine’s national debt and propose management strategies to ensure financial security

and economic development. Key findings include the predominance of external debt, the

impact of the state budget deficit, and the risks of continued debt growth. 31It models

sovereign debt sustainability by optimizing financing decisions under various

uncertainties, balancing debt stock and flow risks within sustainability constraints. It

demonstrates significant savings from optimal strategies compared to simple rules,

quantifying refinancing risk and debt reduction rates, and identifying optimal timing for

adjustments. Applied to eurozone countries, the model highlights the importance of stock-

flow trade-offs, suggests improvements for Dutch Treasury practices, and identifies risks

in Italy’s 2019 budget. This model aids policy decisions on public finance sustainability

and is integral to the European Stability Mechanism’s framework for assessing debt

sustainability and repayment capacity.32It examined the impact of debt management on

small-scale enterprises in Kumasi, Ghana, by interviewing 120 businesses. Findings

revealed that many lacked debt management knowledge, with major debt causes being
33
poor financial advice, lack of business knowledge, and inadequate record-keeping. It

explored debt management challenges among small businesses in Ghana, analyzing

funding sources, strategies, and obstacles. Interviews with traders from ten key market

segments revealed that poor debt management and liquidity issues often lead to business

collapse. Most traders start with personal savings or family funds and later seek external

financing. Effective strategies included reinvesting profits to repay loans and using short-

31
Davydenko, Nadiia, Mykola Mykhaylichenko, Zoia Titenko, and Liudmyla Tsiukalo. “External Debt
Management in the System of Financial Security of the State.” WSEAS Transactions on Business and
Economics 20, no. 15 (2023).
32
Zenios, Stavros A., Andrea Consiglio, Marialena Athanasopoulou, Edmund Moshammer, Angel Gavilan,
and Aitor Erce. “Risk Management for Sustainable Sovereign Debt Financing.” Operations
Research (2021). Published online January 18, 2021.
33
Addaney, Michael, Samuel Baffour Awuah, and Akosua Afriyie. “Debt Management and the Performance
of Small Scale Enterprises in the Kumasi Metropolis of Ghana.” Journal of Business and Economic
Development (2016).
term loans appropriately. Challenges included poor sales, competition from Chinese

goods, and misuse of business loans.34 It examined Nigeria’s debt management and its

impact on sustainable infrastructural development, revealing a gap between the US$101.9

billion borrowed by 2022 and actual infrastructure progress. Using a mixed-methods

approach, the study found that public debt management had no significant effect on

sustainable infrastructure (β = 0.002, t (198) = 0.040, p > 0.05).35

It examines the impact of financial management practices on SME growth. It excels in

working capital management but only moderately practice capital structure and investment

decisions. Respondents strongly agree on sales growth but only agree on profit and

expansion growth. Significant differences were found in practices based on education,

business type, and nature of business.36 Local government units (LGUs) in the Philippines

can borrow funds for development, with a debt servicing limit of 20% of their annual

income as per the Local Government Code of 1991. Borrowing purposes vary by LGU

type and capacity, typically including capital projects, socioeconomic enterprises, and

income-generating initiatives. This paper reviews nearly three decades of fiscal

decentralization in the Philippines, examining local debt management trends, the role of

national agencies, and regulatory policies.37 Many businesses, including SMEs and family

enterprises, face overdue loans and tightened credit access. Despite government

emergency loans and liquidity measures, many may not survive another year. Debt

management, a key focus in my finance courses and professional roles, is crucial for both

large and small companies. Large companies benefit from more debt sources and flexible
34
Ansong, Georgina. “Debt Management Challenges Facing Small Business Holders of Kaneshie Market,
Accra-Ghana.” American Journal of Industrial and Business Management 11 (2021): 785-803.
35
Oriloye, Gabriel Lola, Dr. Olayinka, and Professor Oni. “Debt Management for Sustainable Infrastructure
Development: A Systematic Review.” WSEAS Transactions on Business and Economics 4, no. 2 (2023).
36
Alferos, Dennis Biober. “The Effects of Financial Management Practices to the Growth of Small and
Medium Enterprises in Zambales, Philippines.” Magna Scientia Advanced Research and Reviews 8, no. 2
(2023):
37
Alvina, Niño Raymond B. “Credit Financing for Local Development: The Subnational Debt in the
Philippines.” ADBI Working Paper Series No. 966. Tokyo: Asian Development Bank Institute, 2019
terms. A strong financial structure is essential, ideally planned in the feasibility study. As

businesses grow, their balance sheet structure may change. In this unprecedented crisis,

those with robust financial structures will fare better. 38 The fiscal health of the Philippines

has significantly improved over the past decade, thanks to reforms and policy coordination

through the Development Budget Coordinating Committee. However, challenges remain,

such as concerns from the Bangko Sentral ng Pilipinas (BSP) about reduced issuance of

government securities and potential interest rate repression. Despite sufficient liquidity

preventing the crowding out of private offerings, further reforms in public debt

management are needed to enhance efficiency, develop the capital market, and ensure

overall financial stability.39 he debt-to-GDP ratio rose from 39.6% in 2019 to 60.9% in

2022 due to heavy borrowing during the COVID-19 pandemic. High debt levels reduce

funding for essential services like education, healthcare, and infrastructure. In 2023,

11.6% of the national budget was allocated to debt repayment, expected to rise to 34% in

2024. Improving tax collection efficiency is crucial, as the Philippines lags behind

ASEAN peers in personal and corporate tax collection.40

In conclusion, Effective debt management practices are crucial for ensuring financial

stability and sustainable growth across various sectors, from national economies to small

businesses. Studies highlight the importance of optimizing financing decisions, improving

debt management knowledge, and implementing strategic policies to manage debt

efficiently. For utility workers, adopting sound debt management practices is essential to

avoid financial difficulties and ensure economic security. By managing their debts wisely,

38
Almendras, Ruben. “Debt Management in Business.” The Freeman, August 10, 2021.
https://www.philstar.com/the-freeman.
39
Guinigundo, Diwa C. “Fiscal Policy, Public Debt Management and Government Bond Markets: The Case
for the Philippines.” BIS Paper No. 67s. Government of the Republic of the Philippines - Monetary Stability
Sector, April 13, 2015
40
Teves, Gary B. “Managing the National Government Debt.” Philippine Daily Inquirer, March 6, 2024.
utility workers can better sustain their daily expenses, reduce financial stress, and improve

their overall financial well-being.

E. Money Management Practices

Money management involves overseeing the financial activities of budgeting, saving,

investing, and spending for an individual or group. It can also specifically refer to

managing investments and portfolios.41 It found that effective money management directly

improves marital adjustment, with conflict resolution strategies partially mediating this

relationship. It showed that avoiding attacking strategies in conflict resolution enhances

marital satisfaction. The structural model demonstrated good fit indices, underscoring the

importance of financial management and constructive conflict resolution in maintaining a

healthy marriage.42 Effective money management is essential in today’s fast-paced world,

as financial stress can severely impact mental and physical health. This article highlights

how financial stress affects people across all socioeconomic statuses and emphasizes the

benefits of managing finances well. By adopting proactive measures, such as budgeting,

saving, and seeking professional guidance, individuals can mitigate financial stress and

improve their overall well-being, leading to a more balanced and fulfilling life. 43 In the

recent research, practices over money matters depend upon one’s behavior either it is

negative or positive. They argue that person who lack of money management also lack of

saving practices, lack of control in their spending habit, being an impulsive and

compulsive buyer as well as lack of budgeting discipline. Therefore, it was suggested

among researchers that an individual must find themselves financially literate or educated

41
Chen, James. “Money Management: Definition and Top Money Managers by Assets.” Updated August
27, 2024.
42
Schünke, Lídia Käfer, Denise Falcke, and Clarisse Pereira Mosmann. “Structural Model of Money
Management, Conflict Resolution Strategies and Marital Adjustment.” Journal of Family and Economic
Issues 44 (2023): 523–535. Published July 7, 2022.
43
“How Money Management Reduces Stress.” Published February 28, 2024.
to enhance their good practices.44 This connect to the recent result of the study of some

researcher where the money management practices are influence by education.

Furthermore, some statistical results also revealed that money attitude is a determinant of

financial problem and dissatisfaction. Lastly, it has also found that money management

practices predict financial worries and financial well-being.45

It explored the money management practices of Business Administration students at

Mountain Province State Polytechnic College, revealing that while most students prioritize

saving for long-term goals, they do not invest in insurance or other profitable ventures.

Many students track their expenditures but often fail to create budget plans, leading to

overspending. The primary issue identified was a lack of funds for unexpected expenses or

emergencies, which students addressed by saving for the future. The study recommends

enhancing personal finance topics in the curriculum, designing financial literacy programs

for student orientations, and providing skills training to help students develop their

financial and business skills.46 The Pantawid Pamilyang Pilipino Program (4Ps), the

Philippines’ largest social protection initiative, has expanded significantly over the past

decade but still faces efficiency challenges. Despite improvements in payment systems,

the program has not fully utilized the country’s payment infrastructure. To address this, it

is recommended that the Philippine government develop a strategic payment reform

agenda, enabling beneficiaries to receive payments through any transaction account of

their choice. This would involve streamlining business processes, enhancing the

management information system to minimize manual transactions, and leveraging various

44
Mwathi, W.A., Kabasu, A., and Akuno, N.R. “Effects of Financial Literacy on Personal Financial
Decisions among Egerton University Employees, Nakuru County, Kenya.” International Journal of
Economics, Finance and Management Sciences 5, no. 3 (2017): 173. Accessed October 5, 2020
45
Komal, GY, Mehta, M., and Gandhi, S. “Money Management Practices among Students.” International
Journal of Commerce, Business and Management 6, no. 1 (2017): 21-23. Accessed October 5, 2020.
46
Bolognesi, Andrea, Andrea Hasler, and Annamaria Lusardi. “Millennials and Money: Financial
Preparedness and Money Management Practices Before COVID-19.” Research Dialogue, no. 167 (August
2020).
financial service providers to boost financial inclusion among beneficiaries. 47It explored

the relationship between working capital management practices and the sustainability of

301 Barangay Micro Business Enterprises (BMBEs) in Ilocos Norte, Philippines, using a

correlational-descriptive design. The findings indicated low economic, social, and

environmental sustainability among these BMBEs. Additionally, cash management was

significantly related to economic and social sustainability, while accounts receivable and

inventory management were significantly related to all three sustainability dimensions. 48It

examines how small and medium enterprises (SMEs) in developing countries use

management accounting techniques, such as cash flow analysis and operating budgets, to

solve business problems and gain a competitive edge. It highlights that small enterprises

benefit most from cash flow analysis and operating budgets, while medium enterprises

find financial budgets, capital budgeting, and customer relationship management more

useful due to their operational complexity. The effectiveness of these tools depends on the

organization’s size, resources, and strategies. 49 On 100 bank employees in Tandag City,

Philippines, reveals that their primary financial focus is on paying household bills, often

managed by partners. They typically have around Php50,000 in their ordinary accounts,

use cash for daily expenses, and spend about Php300,000 on fixed assets. The findings

highlight the importance of planning ahead to ensure they can cover their expenses50.

In conclusion, utility workers can significantly improve their financial stability by

enhancing their financial literacy, adopting disciplined budgeting and saving practices, and
47
Acosta, P., Endo, I., Garcia Garcia Luna, J. A., de Guzman, A., & Okamura, Y. (2019). Making Payments
More Efficient for the Philippines Conditional Cash Transfer Program. World Bank
48
Corpuz, Bibeth Macatumbas, and Nelson Bool. “Working Capital Management Practices and
Sustainability of Barangay Micro Business Enterprises (BMBEs) in Ilocos Norte, Philippines.” Graduate
School, University of Santo Tomas.
49
Legaspi, Joy Lynn R. “Management Accounting Practices of the Philippines Small and Medium-Sized
Enterprises.” Vol. 6, no. 3, 2018. ISSN 2056-6018. Accountancy Department, De La Salle University,
Manila, Philippines.
50
Erno, G. Y. L. “Efficacy of Money Management among Bank Employees in Tandag City,
Philippines.” International Journal of Business, Economics, May 31, 2019.
leveraging social protection programs like the Pantawid Pamilyang Pilipino Program

(4Ps). By understanding and managing their finances effectively, they can reduce financial

stress, ensure funds for emergencies, and improve their overall well-being and quality of

life.

F. Retirement Management Practices

It highlights the critical need for financial retirement planning among self-employed

workers, identifying key factors that influence their planning and suggesting future

research directions. It reviews global and Malaysian retirement policies, noting a lack of

focus on self-employed individuals compared to salaried workers. By addressing this gap,

the study aims to provide policymakers with insights into the challenges and goals of self-

employed workers’ retirement planning, offering a foundation for future research to better

understand and support their financial preparation for retirement. 51Hong Kong Chinese

retirees shows that pre-retirement planning significantly boosts post-retirement well-being

by enhancing tangible, mental, and social resources. Retirees who engaged in more

preparatory activities experienced better psychological and physical health one year after

retirement, highlighting the importance of early and thorough retirement planning for a

smoother transition and improved quality of life. 52UB employees found a negative

correlation between financial literacy and retirement preparedness, indicating that higher

financial literacy doesn’t always lead to better retirement planning. Young professionals

were slightly more financially literate but still lacked retirement investments. The findings

suggest that corporate social responsibility (CSR) initiatives should focus on enhancing

51
Wan Mustafa, Wan Mashumi, and Md. Aminul Islam. “Financial Retirement Planning among Self-
Employed Workers in Malaysia: A Conceptual Investigation.” AIP Conference Proceedings, vol. 2339,
020145, 2021.
52
Yeung, Dannii Y., and Xiaoyu Zhou. “Planning for Retirement: Longitudinal Effect on Retirement
Resources and Post-retirement Well-being.” Frontiers in Psychology 8 (July 27, 2017).
employees’ retirement preparation.53 It examines retirement saving policies for

independent workers, who often lack employer-sponsored plans. It suggests leveraging

fintech, adjusting tax policies, and expanding Automatic IRAs to help these workers save.

Additionally, it proposes creating portable retirement accounts that follow workers

throughout their careers, supplementing or replacing traditional employer-sponsored

systems.54On 410 high school teachers found significant differences in retirement financial

preparation based on gender, age, and marital status. It emphasizes the importance of early

retirement planning, seeking financial advice, and participating in financial workshops to

ensure financial stability post-retirement. The study suggests future research should

include a broader range of respondents and consider demographic factors in retirement

planning.55

In 343 Filipino workers and retirees found that Socially Responsible Investing (SRI) is

the most valued attribute in employer retirement plans, with no significant correlation

between retirement plan preferences and factors like savings attitudes, financial literacy,

behavioral biases, or demographic/socioeconomic characteristics. These insights can guide

business and policy proposals for retirement programs.56On teachers’ retirement readiness

highlights the importance of planning and preparation across financial, health, social, and

self-fulfillment aspects. Through face-to-face interviews, it found that while teachers may

face financial challenges in retirement, proper financial education and effective use of

retirement benefits can help them achieve stability and meet their post-retirement

53
Concepcion-Gallardo, Ma. Liezl, and Buenaventurada O. Libot. “Financial Literacy and Retirement
Preparedness among University of Bohol Employees.” University of Bohol Multidisciplinary Research
Journal, vol. 5, September 2017. Print ISSN 2350-7853, Online ISSN 2362-9223.
54
Gale, William G., Sarah E. Holmes, and David C. John. “Retirement Plans for Contingent Workers: Issues
and Options.” Published online by Cambridge University Press, December 17, 2018.
55
Karim, Rabeah Abdul, Muhammad Hussin, and Sheerad Sahid. “Comparison of Retirement Financial
Preparation Based on Demographic Factors: A Study of Teachers.” International Journal of Academic
Research in Business and Social Sciences 13, no. 4 (April 15, 2023): 1788-1800.
56
Mandigma, Ma. Belinda Santiago, and S. Mandigma. “Retirement Plans Preferences in the
Philippines.” University of Santo Tomas, December 2019.
aspirations.57On 152 teachers aged 40-70 from northern Philippines used discrete choice

estimation to reveal that investment is the most important attribute for their retirement

preferences, followed by pursuing old interests, travel, and part-time jobs as the least

preferred. These findings provide valuable insights for policymakers to better address the

retirement planning needs of aging teachers. 58On DepEd employees highlights the

moderate retirement readiness in terms of health, financial, and contingency planning,

emphasizing the need to enhance emergency savings and prioritize personal needs. It

suggests that a comprehensive retirement readiness program should offer guidance on

health, financial management, and socialization to ensure a holistic approach, with

essential resources including reliable communication, emergency supplies, and financial

support from children.59On 40 employees aged 55 and above at Wesleyan University –

Philippines, Cushman campus, found that most were not ready for retirement, needing

more income and investment knowledge. It designed a pre-retirement conceptual

framework based on demographic profiles and readiness in financial planning, wealth,

health, and network engagement. The study recommends adopting this framework to

develop a comprehensive pre-retirement program, with institutions providing financial

support for its implementation.60

G. Financial wellness

57
Magtira, Ricardo Luis Cerezo, and Inero Valbuena Ancho. “Before Officially Leaving the Organization:
Retirement Planning and Preparation of Filipino Teachers.” Philippine Normal University, January 1, 2021.
58
Faustino, Julie Ann C., Jennifer O. Serrano, and Allan B. de Guzman. “What’s on Your Bucket List?
Utility and Importance of the Retirement Preferences of 40–70-Year-Old Filipino Teachers Using Discrete
Choice Estimation.” Volume 46, 2020 - Issue 11: Special Issue: Reinventing Retirement, August 17, 2020:
668-677. What’s on your bucket list? Utility and importance of the retirement preferences of 40–70-year-old
Filipino teachers using discrete choice estimation: Educational Gerontology: Vol 46 , No 11 - Get Access
(tandfonline.com)
59
Tolondon, Flor Angelie M., and Gaudy C. Ortizo. “Strategizing for the Future: A Mixed Method
Approach to Department of Education Employees Retirement Readiness and Lifestyle
Planning.” International Journal of Scientific Research and Management (IJSRM) 12, no. 03 (April 17,
2024).
60
Castillo, Manuel P., Ali G. Mamaclay, and Eufemia C. Ayro. “Retirement Planning: A Pre-Retirement
Framework for Employees of Wesleyan University-Philippines.” Studies in Social Science, March 29, 2022.
 . Financial wellness, defined as having financial security and freedom of choice now

and in the future, is crucial for overall well-being, impacting productivity, relationships,

health, and quality of life. In India, financial wellness has become a major stressor,

especially due to the pandemic. Globally, behavioral finance identifies biases and barriers

in financial decision-making, such as lack of awareness, poor self-control, and confusion

in financial choices. To address these, we propose a holistic, hyper-personalized approach

combining technology and behavioral science, featuring an engaging user interface and a

backend system for insights and personalized recommendations. This helps users visualize

financial needs, set goals, and receive nudges to implement plans, promoting financial

inclusion in India.61

The report “Money Talks: Pilot Financial Wellness Programs to Promote Positive

Financial Planning Behaviors Among Residents” by Ng and colleagues highlights the

importance of integrating financial wellness into graduate medical education (GME). It

shows promising outcomes, such as improved budgeting, loan consolidation, and

retirement planning among residents. Despite challenges like scheduling and curricular fit,

the involvement of faculty and the focus on practical financial behaviors make this a

significant step forward. To effectively address financial wellness, GME programs must

offer these interventions during regular work hours, as financial literacy is crucial for

residents’ overall well-being and academic success62

Financial wellness encompasses all aspects of a person’s financial situation, including

awareness, goal setting, and the ability to achieve these goals. This review examines key

aspects of college student financial wellness, such as credit card and student loan use,

financial literacy, financial stress, and self-efficacy. It also includes insights from the
61
Raveendran, Jayasree, et al. “Behavior Science Led Technology for Financial Wellness.” CSI
Transactions on ICT 9, no. 2 (June 1, 2021): 115-125.
62
“It Is Time for Financial Wellness Curricular Interventions.” Academic Medicine 97, no. 7 (June
23, 2022): 940.
multi-institutional Study on Collegiate Financial Wellness, enhancing understanding of

student financial wellness. Colleges and universities play a crucial role in developing

students’ financial capabilities. Effective financial wellness initiatives require

understanding students’ needs and how finances impact their daily lives.63

This study compares personal financial wellness between American and Turkish college

students using the Personal Financial Wellness Scale (PFW). Data from 1,446 students

aged 18+ were collected via an online survey from North Carolina State University and

Hacettepe University. The primary source of personal finance information was parents

(71.7%), followed by the Internet (59.2%). Significant differences in financial wellness

were found by university, gender, and childhood setting (urban vs. rural). American

students had higher financial wellness scores than Turkish students. Students living with

friends reported lower financial wellness than those living with parents. Age negatively

impacted financial wellness. Notably, students increasingly rely on the Internet for

financial information, and relying on friends for financial advice is linked to lower

perceived financial wellbeing.64

Sri Lanka is facing a severe economic crisis, with shortages in foreign currency, debt

payments, inflation, and essential goods. This crisis has heavily impacted the younger

generation, particularly public university students, who struggle with rising living and

educational costs. This study examines how financial literacy and financial distress affect

the financial wellness of these students. Using Prospect Theory, Behavioral Life-Cycle

Theory, and Self-Efficacy Theory, data from 122 students were analyzed. Results show a

strong positive link between financial literacy and financial wellness, while financial
63
Montalto, Catherine P., Erica L. Phillips, Anne McDaniel, and Amanda R. Baker. “College
Student Financial Wellness: Student Loans and Beyond.” Journal of Family and Economic
Issues 40 (2019): 3-21. Published September 24, 2018
64
“An International Study of College Students’ Personal Financial Wellness Perceptions” was
published in December 2015 in volume 18, issue 3.
distress negatively impacts wellness, though not significantly. Combined, both factors

significantly affect financial wellness. The study highlights that higher financial literacy

and effective financial management help students remain resilient during the crisis,

stressing the need to address both literacy and distress for overall financial wellness.65

Studies have shown that financial literacy, financial behavior, financial stress, financial

problem, financial capability, and financial strain, measures financial wellness and or

financial well-being either as cause or outcome. Thus, it must be noticed in literature that

financial wellness is synonymously used with financial health, financial satisfaction, well-

being, and economic well-being.66 Filipino workers are striving for financial freedom

despite economic challenges. Our recent ebook, “Financial Wellness Programs: Creating a

Thriving, Hybrid Workplace,” reveals that 60% of Filipinos have changed their financial

behaviors due to the pandemic, with 37% increasing emergency savings and 17% using

online banking and digital payments more frequently. This translates to over 27.8 million

adults saving more and 12.7 million using online banking, based on the 2020 PSA Census.

Financial account ownership in the Philippines has nearly doubled in two years, with 22

million new accounts and 41 million accessing e-money services. However, financial

literacy remains low, with only 25% of Filipinos able to answer financial literacy

questions. This contributes to financial stress, with seven in ten Filipinos struggling with

debt, making the Philippines one of the most financially stressed nations in the Asia-

Pacific region. Employers play a crucial role in promoting financial wellness. Educating

employees on financial skills can reduce stress and boost productivity. Financial wellness

programs are a valuable investment, empowering Filipinos through financial literacy. The

65
Senarathna, Nimesha, and Niluka Anuradha. “Financial Literacy and Financial Distress on Financial
Wellness among Public University Students in Sri Lanka.” Asian Finance Review 1, no. 2 (June 2024): 36-
49.
66
Lone, Umer Mushtaq, and Suhail Ahmad Bhat. “Impact of Financial Literacy on Financial Well-being: A
Mediational Role of Financial Self-efficacy.” Journal of Financial Services Marketing, October 3, 2022.
survey provides insights into the financial state of Filipino workers, covering topics like

general financial well-being, savings, debt management, retirement planning, investment

knowledge, and the use of financial benefits and perks.67

This study explores whether external locus-of-hope (LOH) can moderate the impact of

financial stress on the well-being of Filipino students. Students from various universities

completed questionnaires measuring financial stress, internal and external LOH, and life

satisfaction. The results showed that financial stress negatively affects life satisfaction,

while three LOH dimensions positively influence it. Notably, external-family LOH

buffered the negative effects of financial stress on life satisfaction, meaning students with

high external-family LOH did not experience reduced life satisfaction due to financial

stress. Conversely, financial stress moderated the relationship between external-spiritual

LOH and life satisfaction, with the positive effects of external-spiritual LOH on life

satisfaction only evident in students experiencing low financial stress.68

This study examined the financial wellness of employees at a maritime school,

surveying 96 staff members. Results showed that employees had fair financial

wellness, moderate financial literacy, very satisfactory financial behavior, and low

financial stress. Financial wellness was consistent across age, family status, sex,

tenure, and job position. Earnings were sufficient for basic needs but not for

emergencies. Financial literacy and behavior were similar across most variables,

except age. The study found that financial literacy improves financial management and

is the best predictor of financial wellness.69

67
The State of Financial Wellness in 2024: A Closer Look at Current Economic & Monetary Health of
Filipinos
68
Bernardo, Allan B. I., and Katrina Fernando Resurreccion. “Financial Stress and Well-being of Filipino
Students: The Moderating Role of External Locus-of-hope.” Philippine Journal of Psychology 51, no. 1
(2018): 33-61. Copyright @ 2018 Psychological Association of the Philippines.
69
Parcia, Robert Oton, and Emeliza Torrento Estimo. “Employees’ Financial Literacy, Behavior, Stress and
Wellness.” Journal of Human Resource Management 5, no. 5 (2017): 78-89.
 Financial decisions have both short- and long-term impacts, making financial

literacy crucial for personal financial well-being. This descriptive correlational study

assessed the financial literacy and well-being of 178 randomly selected nurses in a

first-class province in the Philippines. Using a researcher-made questionnaire, the

study found that the overall financial literacy level was high (M=3.22; SD=0.39) and

financial well-being was great (M=3.03; SD=0.46). Monthly income was the only

demographic factor associated with financial literacy, but no demographics were

linked to financial well-being. A significant correlation was found between financial

literacy and well-being (rs(176)=0.660, p=0.000), indicating that higher financial

literacy leads to better financial well-being.70

This study examines the impact of salary loans on the financial wellness of

teachers at Panacan National High School. Using a descriptive design and online

surveys, the research found that teachers’ financial capabilities are lacking, reflecting a

broader negative trend. Contributing factors include poor money management skills,

low financial planning, and inadequate financial knowledge. The study suggests that

integrating financial education into teacher training and in-service programs could

improve teachers’ financial wellness and future security. While the study offers

valuable insights, further research is needed to validate these findings.71

H. Financial Literacy

Financial literacy is crucial for navigating modern society’s diverse and complex

financial products and services. It involves making informed judgments and effective

decisions about money management, which enhances overall well-being and future

70
Gerzon, Rowel A., and Grace L. Lopena. “Financial Literacy and Financial Well-Being of Nurses of a
First-Class Province in the Philippines.” Philippine Social Science Journal 6, no. 2 (2023)
71
Edley Grace B. Mabignay, Alyssa Janine E. Hamja, Jowery R. Valentin, Eddie C. Fabrigas, Myder B.
Padul, & Jergen Jel C. Labaria. (2022). EFFECTS OF SALARY LOANS TO FINANCIAL WELLNESS OF
PANACAN NATIONAL HIGH SCHOOL TEACHERS.
security. This study aims to assess financial literacy levels among college students using

both primary and secondary data. It measures knowledge in money management, savings,

investments, and credit, and evaluates financial behavior through questionnaires. The

results, analyzed by gender and qualification, reveal significant relationships between

financial literacy and student characteristics.72

Financial education, encompassing knowledge, abilities, and behaviors, is vital for a

healthy economic life at individual, macro, and multi-national levels. It reduces financial

exclusion risks, promotes informed decisions, and increases financial market liquidity.

The term “financial literacy” covers various concepts and measurement tools, which can

be inconsistent and complicate comparisons and actions. To enhance financial literacy, we

must first define it and develop effective measurement methods. Our study synthesizes

existing definitions and tools, proposing a comprehensive approach to measure financial

literacy through separate scales for financial knowledge, abilities, communication,

behavior, and confidence. This methodology includes a documentary study and an

experiment with finance Master’s students.73

Modern financial literacy is essential for making informed financial decisions,

navigating complex markets, and planning for the future. This chapter explores the history

and significance of financial literacy within today’s intricate financial systems and diverse

investment options. It examines financial literacy knowledge, attitudes, behaviors, and

international campaigns. The chapter discusses the history, benefits, methods, and

components of financial literacy, highlighting how the global economy has enhanced the

credibility of financial education in the US. It argues that financial literacy helps prevent

72
Veena, S., M. S. D. Arpana, and T. R. Bharath. “Study on Financial Literacy Among College
Students.” International Journal of Health Sciences 9, no. 2 (May 18, 2022): 115-125.
73
Zait, Adriana, and Patricea Elena Bertea. “Financial Literacy – Conceptual Definition and Proposed
Approach for a Measurement Instrument.” The Journal of Accounting and Management (Danubius
University of Galati) 4, no. 3 (January 1, 2014): 37-42.
mistakes, prepares individuals for emergencies, and aids in achieving financial goals.

Topics such as credit, budgeting, and saving are covered to improve financial literacy.

Additionally, the chapter emphasizes that financial education can protect the Indian

economy, promote growth, and reduce poverty, detailing efforts by the Indian government

and regulators. The authors conclude that financial education enables individuals to make

wise financial decisions and build wealth.74

Financial literacy is crucial for managing finances, making informed decisions, and

achieving financial goals. It empowers individuals to take control of their money and

make decisions that align with their needs and objectives. Key aspects include saving,

planning, investing, and managing loans and interest. Poor financial decisions due to

financial illiteracy can negatively impact financial management. Therefore, the

government must take steps to enhance financial education. This paper examines the

initiatives by the Government of Karnataka to promote and develop financial literacy

among its citizens.75

Financial literacy involves understanding and effectively using financial skills such as

personal financial management, budgeting, and investing. It forms the foundation of one’s

relationship with money and is a lifelong learning journey. This paper analyzes

publications on financial literacy, examining their intellectual structure and networking

using bibliometric data from the Scopus database. It identifies the most productive

countries, universities, authors, journals, and significant publications in the field.

Additionally, the study maps the intellectual network through bibliographic coupling and

74
Manoharan, Geetha, et al. “Enhancing Financial Literacy.” Advances in Finance, Accounting, and
Economics, June 28, 2024, 111-128.
75
“Financial Literacy: an Initiative Taken by the Government of Karnataka.” International Journal For
Multidisciplinary Studies 5, no. 3 (June 28, 2023): 115-125.
co-citation, providing insights into financial literacy developments and trends, which can

guide future research and practice.76

Financial literacy encompasses the awareness, knowledge, skills, attitudes, and

behaviors necessary to make sound financial decisions and achieve financial well-being.

This study highlights the importance of financial literacy in India’s current economic

context, emphasizing its role in helping individuals sustain, survive, and compete in a

dynamic socio-economic environment. It is particularly relevant for financial institutions,

investors, government bodies, academicians, the general public, and research scholars

focused on financial education, literacy, and inclusion. The study aims to underscore the

need for financial literacy and to shed light on the various financial services available from

banks and insurance companies in India. Using data from secondary sources such as

internet resources, research papers, journals, periodicals, conference proceedings, and

books, the study presents its concepts clearly to meet its primary objective. Financial

literacy is crucial for true financial inclusion, as it enables people to understand and

benefit from the financial services provided by the government and financial institutions.

Thus, being financially literate is essential in today’s world.77

Financial inclusion is increasingly recognized as a crucial enabler of development

goals, even though it is not explicitly listed among the UN Sustainable Development

Goals (SDGs). The Bangko Sentral ng Pilipinas (BSP) has made financial inclusion a

national development priority, requiring coordinated efforts across sectors to maximize its

societal benefits. This study examines the link between financial literacy and financial

inclusion in the Philippines, using data from the 2019 Financial Inclusion Survey (FIS).

76
Alsmadi, Ayman Abdalmajeed. “Financial Literacy: A Bibliometric Analysis for the Period of 1990-
2021.” International Journal of New Trends in Social Sciences 6, no. 1 (May 31, 2022): 34-44.
77
Rath, Jyoti Prakash, and Samira Patra. “Financial Literacy In India – A New Way Forward.” ComFin
Research 11, no. 2 (April 1, 2023): 20-27.
Indicators such as financial account ownership and the use of financial services were

analyzed, revealing that higher financial literacy significantly boosts financial inclusion.

Specifically, a one-standard-deviation increase in financial literacy scores raises the

likelihood of holding an account by 3.7 to 4.2 percentage points, and a one-point increase

in scores enhances the likelihood of using financial services by 4.9 to 6.0 percentage

points. Other factors influencing financial inclusion include age, gender, employment

status, awareness of BSP programs, income above 40,000 PHP, and being the primary

household financial decision-maker. This research supports BSP’s efforts to close the

financial inclusion gap and elevate financial literacy, promoting sustainable and equitable

development in the Philippines.78

Numerous studies highlight the importance of financial literacy in the business sector,

showing that individuals with higher financial literacy are better at managing debt and

investments. This is particularly crucial for entrepreneurs, especially women, to aid in

their daily financial activities. This study investigates the relationship between financial

literacy and financial behavior among women entrepreneurs in Ilocos Norte, Philippines.

Using a quantitative research design, the study analyzed survey data from 377 women

entrepreneurs through structural equation modeling. The results indicated that these

women possess adequate financial literacy, and linear regression analysis confirmed that

financial literacy positively influences financial behavior.79

This study evaluated the financial literacy of basic education teachers in Davao City,

identifying influencing factors and exploring policy and practice implications. Using a

78
Desello, Jared, and Mary Grace R. Agner. “Financial Inclusion and the Role of Financial Literacy in the
Philippines.” International Journal of Economics and Finance 15, no. 6 (May 2023): 27.
https://doi.org/10.5539/ijef.v15n6p27.
79
Dangcil, Angelica Y., et al. “Breaking Barriers: A Comprehensive Study on Financial Literacy Impacting
Women Entrepreneurs’ Financial Behavior.” International Journal of Entrepreneurship 4, no. 2 (July 30,
2024): 186-199.
qualitative case study approach, data was gathered through interviews with seven teachers

from the Division of Davao City during the 2023-2024 school year. The analysis revealed

four main challenges: financial strain, financial struggles, emotional distress, and impacts

on teaching performance. To enhance financial literacy, three strategies were identified:

proactive financial education, seeking financial guidance, and practicing financial

discipline. Participants also suggested improvements through financial literacy programs

and financial planning. The study concludes that future research should explore additional

strategies and examine specific financial difficulties faced by teachers in different regions

and demographic groups to better tailor financial literacy initiatives. 80

Financial literacy is essential for making sound financial decisions, yet a global study

indicates that most people are financially illiterate. This study evaluated the financial

literacy of 40 MSME business owners in San Jose, Negros Oriental, Philippines, to

determine the feasibility of a university extension program. Using a descriptive

methodology and a five-point Likert scale survey, the study found that these business

owners excel in debt management, savings account utilization, and spending reduction.

However, they need improvement in overall personal financial management, long-term

planning, and emergency preparedness. The study recommends developing a

comprehensive financial training program, sharing best practices, and providing financial

consultation opportunities. Enhancing financial literacy can help microbusiness owners

manage finances better, reduce financial stress, and increase business success.81

I. Financial Stress

80
Lopez, Annaliza C., Ivy D. Manguiob, and Marleonie M. Bauyot. “Teachers’ Financial Literacy in Basic
Education: A Case Study in Davao City, Philippines.” Journal of Economics, Management and Trade 30,
no. 7 (July 4, 2024): 80-95.
81
“Financial Literacy of MSME Business Owners in the Municipality of San Jose, Negros Oriental,
Philippines: A Basis for a State University’s Extension Program.” Journal Name 2, no. 3 (June 28, 2023):
241-274.
 It examines how dispositional mindfulness affects financial well-being and mediating

the role of materialism. It shows that mindfulness and materialism predict financial

anxiety, money management stress.82 Regression analysis revealed that freshmen, students

with low perceived mastery and net worth, and those with median student loan debt are

more likely to experience financial stress. T-test analyses showed that financial counseling

improved subjective financial knowledge and attitudes, with mixed effects on financial

behaviors83

International students are a key focus for urban sociologists and migration scholars.

This article, based on 2019 survey data from Sydney and Melbourne, reveals the financial

hardships faced by international students in the private rental sector. High financial stress

often leads to disruptive events like housing evictions and fears of homelessness, with

many relying on inadequate housing such as ‘hot-bedding’. Students from low-GNI

countries are particularly affected, and paid employment does not mitigate this stress. The

study suggests that higher education policymakers need to develop tools and policies to

prevent such disruptive events, especially those related to housing.84

This study aims to test a serial mediation model linking financial literacy, financial

behavior, financial stress, and workplace productivity. Data from 2,246 Malaysian

employees were analyzed using PLS-SEM. Key findings include: financial literacy boosts

financial behavior, financial behavior reduces financial stress, and financial stress lowers

workplace productivity. The study highlights a serial mediation pathway from financial

literacy to workplace productivity, demonstrating how financial literacy can impact

82
Sinha, Nishit Kumar, Pankaj Kumar, and Pushpendra Priyadarshi. “Relating Mindfulness to Financial
Well-being through Materialism: Evidence from India.” International Journal of Bank Marketing, March 15,
2021. ISSN: 0265-2323.
83
Britt, Sonya L., Anthony Canale, Fred Fernatt, Kristen Stutz, and Racquel Tibbetts. “Financial Stress and
Financial Counseling: Helping College Students.” Journal of Financial Counseling and Planning 26, no. 2
(2015): 172-186.
84
Wilson, Shaun, Catherine Hastings, and Emma Mitchell. “International Students on the Edge: The
Precarious Impacts of Financial Stress.” Volume 59, Issue 4 (March 7, 2022).
https://doi.org/10.1177/14407833221084756.
productivity through behavior and stress. This research contributes a new theoretical

model explaining the negative impact of financial literacy on workplace productivity 85

Over the past decade in Ireland, new policies in initial teacher education (ITE) have

extended postgraduate programs from 12 to 24 months to enhance professional

development. However, financial support mechanisms have not been adequately updated,

causing issues for student teachers. This study, involving 391 second-level student

teachers, found an average weekly spending deficit of €151 during their ITE course. Over

40% rely on family or partners for financial support, leading to significant financial stress.

Recommendations to alleviate this include paid teaching placements and reducing course

costs86

This study analyzes the socio-economic impact of the COVID-19 pandemic in

Romania and proposes solutions to reduce financial stress on the public budget and

stimulate economic recovery. Using econometric modeling, it identifies key factors

affecting the national economy during and after the crisis. The findings highlight

Romania’s socio-economic dynamics post-pandemic and suggest strategies for economic

recovery and stabilization. These results are valuable for Romanian institutions and

economic agents in formulating macro and microeconomic recovery strategies87

This study examines the mental health impact of COVID-19 on students in Region 8,

Eastern Visayas, Philippines. Using data from 311 tertiary students, it found that 18.6%

experienced depression, 35.1% anxiety, and 2.85% stress. Moderate to severe symptoms

were noted in 6.1% for depression, 23.5% for anxiety, and 0.6% for stress. Factors such as
85
Sabri, Mohamad Fazli, and Eugene Cheng-Xi Aw. “Untangling Financial Stress and Workplace
Productivity: A Serial Mediation Model.” Journal of Workplace Behavioral Health 35, no. 4 (2020): 211-
231. https://doi.org/10.1080/15555240.2020.1833737.
86
Prendergast, Mark, Melanie Ni Dhuinn, and Andrew Loxley. “I Worry about Money Every Day: The
Financial Stress of Second-Level Initial Teacher Education in Ireland.” Issues in Educational Research 31,
no. 2 (2021)
87
Mirica, Cristian, Monica Laura Zlati, Angela Eliza Micu, Silvius Stanciu, Violeta Sapira, and Andrei
Mirel Florea. “Managing the Financial Stress Generated by the COVID-19 Pandemic in the Public System:
Solutions for Economic Restart in Romania.” Journal of Economic Studies (2020).
age, gender, marital status, and family history of illness influenced anxiety levels, with

younger, female, single students, and those from families without illness history showing

higher anxiety. Higher family income also correlated with increased anxiety. The study

suggests developing community-based mental health programs for prevention.88

This study explored how external locus-of-hope (LOH) influences the impact of

financial stress on the well-being of Filipino students. Students from various universities

completed questionnaires on financial stress, LOH, and life satisfaction. The results

showed that financial stress negatively affects life satisfaction, while three LOH

dimensions positively influence it. Notably, external-family LOH buffered the negative

effects of financial stress on life satisfaction, meaning students with high external-family

LOH did not experience reduced life satisfaction due to financial stress. Conversely, the

positive impact of external-spiritual LOH on life satisfaction was only evident in students

with low financial stress.89

This study examines the relationship between financial literacy and financial stress

among college students. It involved 368 participants and found a positive correlation

between financial literacy (including spending habits, saving habits, and financial

knowledge) and financial stress. Students generally had high financial knowledge and

moderate spending and saving habits, leading to moderate financial literacy and stress

levels. Notably, saving habits significantly predicted financial stress, suggesting that

students with strong saving habits might be more sensitive to financial pressures. The

findings highlight the need for financial education programs that address both saving

88
Acob, Joel Rey U., Hidayat Arifin, and Yulis Setiya Dewi. “Depression, Anxiety and Stress among
Students amidst COVID-19 Pandemic: A Cross-Sectional Study in Philippines.” Jurnal Keperawatan
Padjadjaran 9, no. 2 (2021): 102-109. ISSN 2442-7276, 2338-5324.
89
Bernardo, Allan B. I., and Katrina Resurreccion. “Financial Stress and Well-being of Filipino Students:
The Moderating Role of External Locus-of-hope.” Philippine Journal of Psychology 51, no. 1 (June 2018).
strategies and stress management. Further research is recommended to understand why

diligent savers experience higher financial stress.90

J. Financial Behavior

This study investigated how self-regulation and self-efficacy influence financial

behaviors in households. While previous research examined these factors separately, this

study focused on the link between general self-regulation (mindfulness, self-care, conflict

management) and financial management behaviors, with financial self-efficacy acting as a

mediator. Data from 693 couples in the Southeastern US revealed that both general self-

regulation and financial self-efficacy positively impact financial management behaviors.

Importantly, the study found that general self-regulation indirectly influences financial

management behaviors through its effect on financial self-efficacy. The findings suggest

that combining financial education with self-regulation programs, like mindfulness or

relationship training, could lead to greater improvements in financial management skills 91.

This study investigates the relationship between financial knowledge, attitudes, and

personality traits and financial management practices in micro, small, and medium-sized

enterprises (MSMEs) selling traditional Coto Makassar food in Makassar, Indonesia. The

study uses a causal associative research design, surveying all 63 MSME owners and

selecting a sample of 32 for analysis. Data was collected through questionnaires and

analyzed using multiple linear regression with SPSS version 21.92

90
Dela Peña, Hannah, Harah Joy Puzon, Czarina Villamil, and Claire Lynn B. Culajara. “Financial Literacy
and Financial Stress among College Students within Davao Region.” Asian Journal of Education and Social
Studies 50, no. 6 (May 2024): 509-522.
91
Palmer, L., Richardson, E. W., Goetz, J., Futris, T. G., Gale, J., & DeMeester, K. (2021). Financial Self-
Efficacy: Mediating the Association Between Self-Regulation and Financial Management Behaviors. Journal
of Financial Counseling & Planning, 32(3).
92
Rosyadah, K. (2020). The influence of financial knowledge, financial attitudes and personality to financial
management behavior for micro, small and medium enterprises typical food of coto makassar. JHSS (Journal
of Humanities and Social Studies), 4(2), 152-156.
https://journal.unpak.ac.id/index.php/jhss/article/view/2468
 This article explores the growing importance of financial behavior in Russia,

emphasizing the need to understand the transformation of behavior leading to financial

outcomes across various territorial levels. The authors highlight the interconnectedness of

social, economic, and financial subspaces, using methods like spatial analysis, content

analysis, and sociological factor analysis to prioritize influencing factors. They propose a

“pyramid” model to illustrate the hierarchy and interaction of these factors, considering

economic, socio-demographic determinants, and territorial differentiation of financial

infrastructure. The study identifies key elements within each subspace—relationships,

resources, choice, and experience—that shape individual and group behavior. It also

systematizes scientific approaches to understanding economic and financial activities,

focusing on the interplay of incentive motives. The authors conclude that financial

behavior has a spatial structure, represented by a “matryoshka” model, and their

methodology is crucial for identifying factors influencing the financial literacy of young

people.93

This study investigated the factors influencing the financial behavior of overseas

Filipino workers, analyzing survey responses from 116 Filipino workers in Korea using

descriptive statistics and hierarchical regression. The findings indicated that while some

workers demonstrated good financial behavior in simple activities, many lacked complex

financial management skills. Those with high financial self-efficacy in the Philippines

tended to exhibit more positive financial behavior, though this was not significantly linked

to financial literacy or participation in financial education programs. The study discusses

the implications for developing financial education tailored to migrant workers. 94

93
Makar, Svetlana V., et al. “Financial Behavior as a Result of People’s Interaction in the Socio-Economic
Space.” Journal Name, vol. 26, no. 3, 14 Jul. 2022, pp. 157-168.
94
Kim, Minjung, Hye-Gyoung Koo, and Juyoung Jang. “Financial Capabilities and Financial Behavior of
Overseas Filipino Workers in South Korea.” Journal Name, vol. 31, no. 2, 17 Jul. 2022.
 This study aimed to explore how Financial Behavior, Financial Attitude, Financial

Strain, and Risk Tolerance contribute to Financial Satisfaction among female employees.

The participants were women working in Jakarta with at least a bachelor’s degree,

excluding those in the Construction, Transportation and Warehousing, and Real Estate

sectors. A total of 192 respondents were selected through convenience sampling.

Structural Equation Modelling (SEM) was used for data analysis. The findings revealed

that Financial Behavior and Risk Tolerance significantly impact Financial Satisfaction,

whereas Financial Attitude and Financial Strain do not.95

This study examined the impact of financial literacy and behavior on the financial

well-being of 360 academic staff from Higher Education Institutions (HEIs) in Region 1,

Philippines, using data collected via a self-administered survey from August 2020 to

March 2021. The survey assessed financial well-being, literacy, and behavior, with

Pearson’s r used to analyze the relationships among these variables. Results indicated that

most teachers experienced moderate financial security and had excellent financial literacy

scores, with many demonstrating good financial behavior. It was found that financial

behavior significantly influenced financial well-being, whereas financial literacy did not.

Consequently, the study suggests that financial wellness programs for these respondents

should prioritize behavior-changing financial coaching over traditional financial

education.96

This study evaluated the financial attitudes and management levels of public

elementary school teachers in Tanjay City, Negros Oriental, during the 2019-2020 school

year. It examined these aspects overall and by various demographics, including age, sex,

95
Winarta, Stella, and Ary Satria Pamungkas. “The Role of Financial Behavior, Financial Attitude, Financial
Strain, and Risk Tolerance in Explaining Financial Satisfaction.” Advances in Economics, Business and
Management Research, May 9, 2021. https://doi.org/10.2991/aebmr.k.210507.077
96
Galapon, Adrian, and Nelson C. Bool. “Effects of Financial Literacy and Financial Behavior on the
Financial Well-Being of Teachers in Higher Education Institutions in Region 1, Philippines.” Financial and
Economic Studies, vol. 11, no. 9, December 2022.
civil status, educational attainment, family income, and residence location. The study

aimed to identify significant differences in financial attitudes and management levels

across these groups and to determine the relationship between financial attitude and

management. The findings were intended to inform a financial literacy program aimed at

enhancing the financial attitudes and management skills of these teachers, recognizing

their influential role in society and potential to model financial responsibility for students

and families.97

This study investigated the factors predicting financial well-being among 212 teaching

and non-teaching personnel in the DepEd, Banaybanay District, using a quantitative, non-

experimental correlational approach with modified research instruments. Statistical tools

such as Average Weighted Mean, Pearson-r, and Regression Analysis were employed. The

findings indicated that respondents had moderate spending levels, high financial literacy,

and moderate financial well-being. Significant relationships were found between spending

behaviors and financial well-being, as well as between financial literacy and financial

well-being. Basic necessities and leisure activities were significant influencers of financial

well-being, while financial capability, decisions, and behaviors were key predictors. The

study’s results align with theories of Human Motivation, Planned Behavior, Affective

Events, and Prospect Theory.98

This study aimed to assess the spending behavior of non-teaching personnel in private

higher educational institutions in Albay and explore ways to improve it. Using a mixed-

methods approach with qualitative and quantitative designs, the study gathered data

through a three-part survey questionnaire. Analysis using frequency count, percentage

97
Villagonzalo, Benjamin S., Jr., and Rizalie N.E. Mibato. “Financial Attitude and Management of Public
School Teachers in Tanjay City.” Research Digest, vol. 3, no. 2, Special Issue, September/October 2020.
98
Jeolin, April T., and Jimnanie A. Manigo. “Spending Behavior & Financial Literacy as Predictors of
Financial Wellbeing among Department of Education (DepEd) Personnel.” Journal Name, vol. 19, no. 2,
2024.
distribution, Likert scale, and ranking revealed that respondents frequently spend on

necessities but rarely on leisure. Issues such as the lack of a budget plan were identified.

The study suggests that employees should track their expenses to enhance financial

awareness and adjust their spending habits. Understanding the importance of financial

decisions and having proper financial management knowledge can increase their chances

of achieving financial security99

Many Filipinos choose to work abroad due to better opportunities and higher earnings

compared to those in the Philippines. This correlational study investigates the awareness

of Pag-IBIG Fund services and the financial behaviors and habits of Overseas Filipino

Workers (OFW) members. The study examines awareness levels in terms of knowledge,

trust and credibility, sources and channels, perceived benefits, barriers, and engagement. It

also assesses financial behavior efficiency, focusing on savings, investment, and debt

management. Using a survey of 300 respondents, the study found that OFW members are

highly aware of Pag-IBIG services and exhibit efficient financial behaviors. The study

revealed no significant correlation between years of employment and awareness levels or

financial behavior efficiency and demographic profiles. However, OFW members show

high efficiency in savings and investment behaviors and satisfactory awareness of Pag-

IBIG services. Age, gender, and civil status do not significantly influence financial

efficiency, whereas educational attainment affects savings and debt management

efficiency. These findings underscore the importance of education and awareness in

promoting better financial habits among OFW members.100

99
Llona, Feb Marie F. “Spending Behavior of Non-Teaching Personnel in Private Higher Educational
Institutions in Albay Province.” Journal Name, vol. 50, no. 1, October 2022
100
Sorita, Irene, Tina Marie Zapanta, Keziah Chim Celis, Christine Joy Orfanel, and Luisito Manes. “Pag-
IBIG Awareness and Financial Habits of Overseas Filipino Workers.” World Citi Colleges Graduate School
– Cubao, December 22, 2023. https://doi.org/10.11594/ijmaber.04.12.14.
Synthesis

Financial management practices in SMEs significantly impact organizational

performance, particularly through effective working capital and capital budget

management, as evidenced by studies in the manufacturing and agriculture sectors.

Consistent findings highlight the importance of these practices, although asset

management’s impact remains debated. However, gaps exist due to the focus on specific

populations. Moving on to saving management, the review identifies both internal and

external factors influencing saving decisions. Internal factors include personal wealth,

financial literacy, and psychological influences, while external factors encompass

macroeconomic conditions, financial services, and geographic factors. Cultural practices

also play a crucial role in shaping saving habits. The emergence of digital financial

services and government initiatives promoting financial literacy are transforming saving

practices, leading to greater financial independence and adaptability. It highlights the

essential role of investment management in enhancing the organizational sustainability

and financial health. Effective investment management involves optimizing asset

allocation, managing risks, and leveraging advanced models and systems. However, much

like financial management, existing research often specific sectors or populations, limiting

the broader applicability of findings to other contexts, such as utility workers. Effective

debt management is vital for financial stability and sustainable growth. It emphasizes the

challenges of poor financial advice, lack of business knowledge, inadequate record-

keeping, and liquidity issues. To manage debt efficiently, optimizing financing decisions,

improving debt management knowledge, and implementing strategies policies are crucial.

Financial literacy is key to effective money management, including budgeting, saving,

investing and managing loans. Improved money management can enhance martial

adjustment, reduce financial stress, and boost overall wellbeing. Addressing challenges
like lack of financial literacy, poor self-control, and impulsive buying through education,

budgeting, and professional guidance is essential. Early and through retirement planning

significantly impacts the quality of life in retirement. Challenges include a lack of focus on

self-employed individuals, insufficient financial support for student teachers, and limited

access to financial advice. The concept of financial wellness encompasses all aspects or a

person’s financial situation, including awareness, goal setting, and the ability to achieve

financial goals. Financial wellness is crucial for overall well-being, impacting

productivity, health and quality of life.

Conceptual Framework

To illustrate the study to be conducted, the research paradigm is presented on the

below.
Input Process Output
Demographic profile
1. Data
The
I. Gender collection to
the Utility Relationship
II. Age of Income
Workers of
III. Marital Status Palawan and Financial
IV. Household National Planning
Members School Practices
V. Income Among
2. Provide Utility
Survey
Workers at
Questionnaire
Palawan
National
School.

Figure 2. Research Paradigm

 Figure 2 shows the research paradigm the study comprising the input, process, and

output. The input of the conceptual framework encompasses the demographic profile of

utility workers at Palawan National School, capturing key personal characteristics that

influence their financial planning needs and strategies. This includes their name for

identification, age to understand its impact on financial goals, gender to explore potential

differences in financial decision-making, income to assess their financial resources, and

civil status to recognize how marital status and family size affect financial planning

requirements. The process contains the actions needed to answer this research study. The

data collection for this study will be primarily through a structured survey questionnaire

administered to utility workers at Palawan National School. This questionnaire will be

designed to gather comprehensive information on their demographic profile, including

their name, age, gender, income, and civil status. Additionally, it will delve into their

financial planning strategies, capturing insights into their budgeting practices, saving

habits, and expenditure patterns. The output contains the end of the study, which is the

relationship of income and financial planning strategies among Utility Workers at Palawan

National School.

Definition of Terms

In order to facilitate a common understanding of the information conveyed in this

research study, these terms are hereby defined operationally and theoretically. For

clarification, the important term used in the study has been defined.

Budgeting: A plan for how you spend your money each month. It helps you track your

income and expenses.

Economic: Having to do with how money is made, used, and managed in a country or

region.

Expenses: The money you spend on things like food, rent, transportation, and

entertainment.

Financial Literacy: Understanding how money works and how to manage it wisely.

Financial Planning: Creating a plan for your money on making better spending

decisions.

Financial Resources: The money and assets you have available to use.

Financial Security: Feeling confident about your financial future and knowing you have

enough money to cover your needs.

Investment: Putting money into something with the hope of making more money in the

future.

Relationship: The connection or bond between people or things.

Saving: Setting aside money for later use.

Utility Workers: People who work to provide essential services like cleaning restrooms

and ensuring water flow.

 Chapter 3

METHODOLOGY

This chapter presents the research design, sampling method and techniques,

instrumentation, research methods and procedures, and data analysis used in this study. It

also includes Ethical considerations dealing with human participants, vertebrate animals,

potentially hazardous biological agents, and hazardous activities and devices.

Research Design

The researchers will employ correlational research design to explore the

relationship between the income and the financial planning strategies among utility

workers of Palawan National School

According to Pritha Bhandari, a correlational research design investigates

relationships between variables without the researcher controlling or manipulation any of

them. It is a type of research that examines the statistical relationship between two or more

variables. This research design will collect numerical data of the utility workers at

Palawan National School to understand if there's a connection between the income and

financial planning practices

Sampling Technique and Procedures

The researcher will employ purposive sampling from the utility workers at

Palawan National School.

Purposive sampling, also known as judgmental or selective sampling. According

Kassiani Nikolopoulou (2023), a non-probability sampling technique where the researcher

selects participants based on specific characteristics or qualities. This method is

particularly effective for our research on utility workers at Palawan National School. It

allows us to target individuals with specific knowledge and experience relevant to our

study. This target approach saves time and resources by focusing on a specific group that

can provide the most relevant for our study. The key informants will be selected based on

the following criteria. 1.Willingness to Participate; A utility workers who are willing and

be able to participate in the study. 2.Availability; Utility workers who are available during

the data collection period will be considered. This ensures that the participants can fully

engage in the study without conflicting with their work schedules. This criterion ensures

that the participants have sufficient experience and familiarity with the school’s

operations, which is crucial for providing insightful and relevant information. This will not

include the utility workers who are unwilling or unable to participate due to personal or

professional reasons.

Instrumentation
 This research will investigate the relationship between income and financial

planning practices among utility workers at Palawan National School. The primary data

collection tool will be a survey questionnaire, carefully adapted from the validated

"Financial Management Practices" instrument developed by Nyamute and Maina (2011).

This adaptation ensures the reliability and validity of the data collected while maintaining

the study's focus on the specific context of utility workers in Palawan National School.

The questionnaire will be tailored to ensure cultural relevance and appropriateness,

considering the unique socioeconomic factors and financial practices prevalent in the

region. The first section will gather essential demographic and socioeconomic information

about the respondents, including their name, age, marital status, number of dependents,

and detailed information on their daily income. This comprehensive data will provide a

clear picture of the respondents' financial landscape, allowing for a deeper understanding

of the factors influencing their financial planning practices. This data will be crucial for

analyzing the relationship between income levels and the adoption of specific financial

planning practices, ultimately contributing to a deeper understanding of the financial well-

being and decision-making processes of utility workers at Palawan National School

Data Gathering Procedures

Formal permission from the principal, utility workers and teachers will be sought

before the survey questionnaires. The survey questionnaires aim to assess the relationship

between income, expense and financial planning practices of utility workers in Palawan

National School, focusing especially on their average daily income and expenses as utility

workers, the financial practices they employ to ensure their expenses do not exceed their

income, and if there is a significant relationship between certain financial planning

practices and their income. Additionally, it will evaluate how these factors resonate with

different demographic groups such as age, gender and income levels to understand utility

workers financial behaviors, such as saving, and managing expense. A structured survey

questionnaire will be used to gather data from utility workers in person at Palawan

National School. The data collected will be analyzed to provide insights of utility workers

when it comes on their income, expense and financial planning strategies.

Data Analysis

The researchers will employ Pearson correlational analysis to analyze the

relationship between the utility workers income and financial planning strategies, Pearson

correlational analysis is a robust statistical method used to measure the strength and

direction. By calculating the Pearson correlation coefficient, the researcher can determine

how strongly their income and financial planning practices are related, whether this

relationship is positive, negative, or negligible. In the context of this study, a positive

correlation would indicate that as the income of utility workers increases, their financial

planning strategies also improve or become more sophisticated. In contrast, a negative

correlation would suggest that their income might be associated with less effective

financial planning strategies. If the correlation coefficient is close to zero. It would imply

that there is no significant linear relationship between the two variables.

Risk and Safety

Psychological risks

It should be carefully considered when designing your survey. It’s important to be

mindful of the sensitivity of the questions you include, ensuring that they do not touch on

topics that might cause stress, anxiety, or discomfort to the participants. Avoiding
questions that could potentially trigger negative emotions or memories is crucial to

maintaining the psychological well-being of the respondents.

Data privacy risks

it is essential to protect the confidentiality of the participants’ responses. This involves

implementing measures to ensure that all personal data collected is anonymized, meaning

that individual responses cannot be traced back to specific participants. Additionally,

securely storing this data is vital to prevent unauthorized access or breaches that could

compromise the privacy of the participants. By taking these steps, you can help ensure that

the survey process is both respectful and secure, fostering trust and encouraging honest

and open responses from the utility workers at Palawan National School.

Informed consent

It involves clearly explaining the purpose of the survey to the participants,

ensuring they understand why the survey is being conducted and how their data will be

used. This includes providing detailed information about the objectives of the research, the

types of questions that will be asked, and the ways in which the collected data will

contribute to the study. Additionally, it is crucial to obtain explicit consent from all

participants, confirming that they agree to take part in the survey with full knowledge of

its purpose and implications.

Confidentiality

Assuring participants that their responses will be kept strictly confidential and

used only for the stated research purposes. This involves implementing robust data

protection measures to ensure that all information provided by participants is securely

stored and accessed only by authorized personnel. Participants should be informed about
the steps taken to protect their privacy, such as anonymizing their responses to prevent any

personal identification and ensuring that the data will not be shared with third parties

without their explicit consent.

Voluntary participation

Requires making it clear to participants that their involvement in the survey is

entirely voluntary. They should be informed that they have the right to decline

participation or withdraw from the survey at any point without facing any negative

consequences. This includes reassuring them that their decision to participate or not will

not affect their standing or relationship with the organization conducting the survey.

Providing this information helps to create a respectful and pressure-free environment,

encouraging honest and willing participation.

Ethical Considerations

The researchers prioritize ethical consideration by obtaining informed consent

from the participants. Individuals are given the freedom to willingly participate without

any pressure. Participants can withdraw from this study at any point without feeling

compelled to continue, and they receive comprehensive information about the study,

including both its benefit and drawbacks, to make an informed decision. Our research

prioritizes the ethical treatment of utility workers at Palawan National School. We ensure

informed consent by providing clear information about the study and its potential

implications, allowing participants to make informed decisions about participation. We

emphasize the voluntary nature of participation, granting individuals the freedom to

decline or withdraw from the study at any time without consequence. We recognize the

sensitivity of financial topics and will be mindful of this during data collection and
analysis. All data will be anonymized to protect participant privacy, and findings will be

presented in a way that does not identify individuals. Through these ethical practices, we

aim to foster a positive research environment while contributing to a deeper understanding

of the relationship between income and financial planning strategies.

This study examined the relationship between income and financial planning practices

among greengrocers in Old Market, Puerto Princesa City. Analysis revealed a weak

positive correlation (r = 0.21) between income and the use of financial planning practices

such as budgeting, saving, and debt management. This suggests that while higher income

may slightly increase the likelihood of using more effective financial planning methods, it

is not a defining factor. Surprisingly, a significant number of greengrocers, regardless of

income, relied on informal methods like informal savings groups, mental accounting, and

intuitive spending. This highlights the importance of considering factors beyond income

when evaluating financial planning effectiveness. The results emphasize that financial

literacy, not just income, is key to effective resource management. Even with low income,

strong financial literacy skills enable efficient saving, budgeting, investing, debt

management, and insurance planning. Conversely, high-income individuals lacking

financial literacy may struggle with resource management, potentially leading to debt or

poor long-term financial outcomes. The widespread use of informal methods, while

potentially adequate for some, suggests a need for better understanding and access to

effective formal financial planning practices. Therefore, financial literacy programs

tailored to the greengrocers in Old Market are crucial, regardless of income. These

programs should focus on practical skills development, addressing both formal and

informal financial practices to improve financial well-being for the entire community.

Future research should explore the specific informal practices used, their effectiveness,

and how to integrate them with formal methods for a more comprehensive approach to

financial planning.
Based on the findings of the study, the following are hereby recommended:

1. Future research could identify specific factors influencing the daily income and

expenses of greengrocers, such as market location, customer flow, or product variety.

2. The findings showed only the daily income and daily expenses of greengrocers in Old

Market, Puerto Princessa City. It is suggested that a future study could investigate how

changes in daily or seasonal income, such as during Christmas and New Year, affect the

consistency and effectiveness of financial planning practices.

3. In this study, the limits only on Old Market, Puerto Princessa City. It is suggested to

expand the scope of the study to include greengrocers from other markets so it could

provide a broader perspective and allow for comparisons across different locations.

4. It would be valuable for future research to compare the effectiveness of informal

financial planning practices with formal ones to determine which methods better support

greengrocers in managing their income and improving their financial stability.

This research, titled "The Relationship Between Income and Financial Planning Practices

Among Greengrocers in Old Market, Puerto Princesa City", investigates the connection

between income and the financial planning strategies employed by greengrocers in Old

Market, Puerto Princesa City. The study used a correlational research design, gathering

data from 27 greengrocers through a structured survey questionnaire. The researchers

aimed to understand if there was a correlation between the greengrocers' income and their

adoption of financial planning practices. The analysis revealed a weak positive correlation

between income and the use of financial planning practices, suggesting that while higher

income may slightly increase the likelihood of using more effective financial planning

methods, it is not a defining factor. Surprisingly, a significant number of greengrocers,

regardless of income, relied on informal financial methods like saving groups and intuitive

spending. This highlights the importance of considering factors beyond income when

evaluating financial planning effectiveness. The study concludes that while income may

play a minor role, financial literacy and access to effective financial planning resources are

crucial for improving the financial well-being of greengrocers. The findings emphasize the

need for comprehensive financial education programs tailored to the specific needs of this

population, focusing on practical skills development and addressing both formal and

informal financial practices. Future research should explore the specific informal practices

used, their effectiveness, and how to integrate them with formal methods for a more

comprehensive approach to financial planning.