Name: Angelo F.

Saayo

Year, Course & Section: III-BSBA-FM-B

Subject: Method of Research 1/ Thesis 1

Topic: Financial Literacy of Filipinos

Financial literacy is the ability of individuals to effectively apply financial skills for
efficient investing, budgeting, and management of personal finances. Moreover, this
financial literacy is an important factor in the Filipino’s daily life in terms of how they are
able to have a positive relationship with money in areas such as educational support,
retirement, and owning businesses. According to Mandell (2009), financial literacy is the
ability to use knowledge and skills to manage one’s financial resources effectively for
lifetime financial security. What financial literacy skills can we use in our daily and future
lives in terms of money management, similar to the first article, which focuses on
empowering Filipinos? On the other hand, financial literacy is defined as the ability of an
individual to read and write (Li, 2020). This statement has similarities to the previous
article, which states that financial literacy is an ability to learn by each of us to be aware
and knowledgeable on how we are going to spend and manage our money in such a
way that empowers us as Filipino citizens for better living and behavior as young
professionals.

As explained a while ago, financial literacy is an area in which they place emphasis
or give importance in empowering Filipinos. They emphasize the importance and give a
scenario in which a significant number of Filipinos are still easily swindled from their
hard-earned money through various elaborate scams that include high-yielding pyramid
scams that do not hold a solid asset base to generate expected returns. Misinformation
in financial matters can create a ripple effect that can destroy households, individual
savings, financial institutions, and economies. As a result, this article promotes financial
literacy at various levels of society so that we can learn how to create effective financial
plans and manage expenses and savings. In terms of better living for Filipinos, this
chapter discusses the importance of financial literacy and the determinants of how
Filipinos become financially literate, including the need to have knowledge on financial

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products (e.g., what is stock vs. a bond), concepts (inflation, credit scores,
diversification), mathematical skills for effective financial decision-making, and lastly,
engaging in certain activities such as financial planning. This article is similar in that it
focuses on promoting the importance of financial literacy individually. Moreover, in
terms of behavior, young professionals examine the importance of financial literacy in
terms of financial behavior, that is, how people manage and utilize the available
financial resources and whether individuals tend to be effective in money management
activities such as saving, spending, budgeting, and investing. This research paper is an
article published that promotes financial literacy and financial behavior with significant
influences on each other.

  In this area, we are making the differences of the article we chose for the topic of
financial literacy among Filipinos, which focuses on empowering Filipinos through
financial literacy due to the stability of our country, which, in the numerous studies and
surveys that tackle financial literacy in the Filipino population, yielded almost the same
results: the Filipino majority has no concrete grasp of financial management. One of the
surveys conducted by S&P in 2014 was the global financial literacy survey, which
discovered the Philippines ranked in the bottom 30 of 144 countries surveyed and that
only 25 percent of adult Filipinos are literate on the basics of finance. The difference in
this article is that they have different audiences for their surveys, and we can say that
the newest is the most important source if we conduct research based on the year this
article was published. Somehow in understanding the better living of Filipinos and how it
can be used in their daily lives to improve their lives. Which Filipino mindset, upon
receipt of salaries, comes before saving? If there's nothing to save, what's left is being
saved. This article emphasized the study conducted by Philam Life, which shows that
96 percent of Filipinos are concerned about their own and their family’s health, but
somehow only 16 percent of them are prepared to pay for medical costs. In this article,
they explain that educated people are more likely to be financially literate than children
enrolled in the K–12 educational curriculum because they are people who have learned
a lot about how to manage their finances properly. This article was published in 2018
and explains why it is important to have one source of information. However, this is not
a survey; it was done solely through an internet search. Moreover, the financial literacy

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of young professionals is more likely to be good than that of other groups because it
emphasizes the importance of determining the direction and strength of the relationship
between financial literacy and financial behavior among their sample population, which
are the young professionals in Metro Manila. This research paper is a detailed article in
which they conducted a lot of work and developed a strategy in terms of the study site,
study design, research instrument, and data analysis that give them differences from
the other article that are not fully detailed. As a conclusion, these three articles are more
likely to give importance and motivation to all Filipinos, showing that even if you are in a
low class or higher, you need to think and analyze how you are going to spend your
finances in a good way to make a better living.

 References:

BusinessMirror (2022, September 18), “Empowering Filipinos Through Financial

Maur, A. (2018, May 11), “Financial Literacy for Filipinos: Understanding for better
living”, National Economic and Development Authority. Retrieved from:
https://nro13.neda.gov.ph/financial-literacy-for-filipinos-understanding-for-better-living/

E. F. Eloriaga, E. R. F. Roxas, P. J. R. Cuaresma, and R. R. Cabauatan, "A Study on

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