Republic of the Philippines

Region 7

Felipe R. Verallo Memorial Foundation, Inc.

Clotilde Hills, Dakit, Bogo City, Cebu, Philippines 6010

THE EFFECTIVENESS OF FINANCIAL LITERACY TO THE SENIOR HIGH

SCHOOL STUDENTS IN FRV COLLEGE

A Quantitative Research
Presented to the Faculty of
Senior High School Department
Felipe R. Verallo Memorial Foundation Inc.
Clotilde Hills, Dakit, Bogo City, Cebu

In Partial Fulfilment
of the Requirements for the Subject
Practical Research 12 ABM

Researchers
Belicario, Jeannette (/)
Donaire, Chariz (/)
Gesta, Cleah (/)
Paglinawan, Nina Mae Lovilla (/)
Paquibo, Cristel Grace (/)
Umbao, Mary Grace Joshlyn (/)
Sudaria, James Andrew (/)
Verallo, Ronnel (/)
 CHAPTER ONE

THE PROBLEM AND IT’S BACKGROUND

INTRODUCTION

This chapter of the paper presents the problem and its setting. It includes the

background of the study, the statement of the problem, significance of the study and

scope and delimitation of the study.

BACKGROUND OF THE STUDY

Financial literacy is the upshot of responsiveness, profound knowledge, skill,

attitude and behavior associated with money, credit and banking necessary to make

exceptional financial decisions.

Lusardi and Mitchell (2007b, p.36) used the definition of OECD (2005).

Accordingly, financial education defined as "the process" by which financial consumers

and investors improve their understanding of financial products and concepts, and

through information, instruction, and/or objective advice, develop the skills and

confidence to become more aware of financial risks and opportunities to make informed

choices, to know where to go for help, and to take other effective actions to improve their

financial well-being". Servon and Kaestner (2008, p.273) defines financial literacy as a

“person's ability to understand and make use of financial concepts”. One significant

reason why financial literacy is important for students is because it can make them

efficient with their finances. It’s the ability of students to understand crucial areas of their

finances so they can meet their financial goals. This concept includes creating a budget,

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paying debts, and understanding the difference between several financial instruments.

With financial literacy, students can understand their situation and make positive or

negative financial choices.

STATEMENT OF THE PROBLEM

This study aimed to know the effectiveness of financial literacy of senior high

school students in FRV College.

Specifically, this study will answer the following questions:

1. What are the levels of financial literacy among senior high school students in

FRV College with the following categories:

a) Spending Habits

b) Financial Knowledge

2. What are the effective ways of financial literacy for senior high school students

in FRV College?

SCOPE AND DELIMATION

This study on the effectiveness of financial literacy among senior high school

students in FRV College will focus on assessing the levels of financial literacy within the

categories of spending habits and financial knowledge. The study will be conducted

specifically among senior high school students in FRV College and will not include

students from other educational levels or institutions. The research will employ

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quantitative methods to collect and analyze data, utilizing surveys and assessments to

measure the financial literacy levels. The study will be limited to the participants from

FRV College and may not be generalizable to other schools or regions. Additionally, the

study will not explore other factors that may influence financial literacy, such as

socioeconomic background or cultural differences.

SIGNIFICANCE OF THE STUDY

Students. As the main participants of the study, they will be more knowledgeable

about the allocation of their allowances. They will also manage to cut costs in everyday

life to better manage their budgets. Furthermore, this can raise their awareness of the way

they are handling money. This study also provides financial knowledge and thus

promotes learning.

Parents. They are the primary source of financial support for a student’s school and

personal life. This study can provide transparency on the budgeting ability of youth in a

certain age range. The research could also help parents understand where teenagers spend

most, how they spend the money and when students spend the most. Additionally, the

study is promoting early education that is likely to start at homes regarding financial

management.

Teachers. It would be best if teachers knew how schoolwork affects the daily

budgeting and expenses of a student. Teachers can support their students not just

academically but also financially by giving projects that cost less.

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 Future Researchers. They will know more about the topic and broaden their

knowledge in the said field. They will be able to craft better questions and engage better

with other participants. They will then become more confident in their answers and have

finer outcomes. They can also help with understanding of the factors affecting students’

spending and saving habits and the correlation with different variables.

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 CHAPTER 2

THEORETICAL FRAMEWORK

This chapter presents the review of related literature, the review of related studies,

the conceptual framework, the hypothesis of the study, the assumption of the study, and

the definition of terms.

REVIEW OF RELATED LITERATURE

This topic aims to review various articles that explain the effectiveness of financial

literacy for students. Specifically, the details of determine effective financial literacy

based on the articles published from 2015-2023.

Financial Literacy and Financial Education Programs

Financial literacy is the result of responsiveness, profound knowledge, skill

mindset, and behavior linked to money to make excellent financial decisions. A

financially literate person can understand and apply financial principles to make informed

and successful decisions about money management. Financial literacy emerges as an

important topic at higher education institutions and therefore places significance on

identifying institutions that offer financial literacy programs and expanding the existing

literature by studying the importance of program offerings, Prewett (2015). Ririn Eka

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Fariana, et al. (2021) pointed out that financial literacy is a good knowledge of managing

finances appropriately, somehow one’s education is very supportive to have knowledge

and understanding related to financial literacy. Hence, it exists to handle the right

financial situation to make effective financial decisions for a prosperous life.

Thus, the study of Neha Garg and Shveta Singh (2018) shows that the financial

literacy level among youth is low across the most parts of the world which has become a

cause of concern. Also, it is observed that different socio-economic and demographic

factors such as age, gender, income, marital status, and educational attainment influence

levels of financial literacy among young people. Nikola Fabris, and Radoica Luburic`

(2016), indicated that the levels of financial literacy of youth and children are inadequate

both in the religion and globally. The study of Aisa Amagir et al (2018) proved that

school-based financial education programs can improve children’s and adolescents’

financial knowledge and attitudes. According to Soroko (2013), financial literacy

education is often narrowly conceptualized as teaching students how to manage their

finances.

Similarly, William B Walstad et al. (2016) also stated that financial education

offered in high school may be students’ only exposure to the subject and it should

provide instruction in basic finance concepts and decision-making skills that can be

useful later. Additionally, B Ozdemir and Uyanik G K (2021), stated in their study that

financial literacy program that is developed for high school students positively affects

their financial attitudes and behaviors. In addition, their research show that the student’s

perception of money changed.

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 Moreover, in the Philippines, DepEd issued a “Financial Education Policy” under

DepEd Order No. 22, s. 2021 to enhance the financial literacy and capability of students,

educators, and personnel that will help acquire financial health and financial inclusion.

Lastly, Romulo-Puyat (Deputy Governor of Central Bank of the Philippines, 2023) said

that through financial education, Filipinos will be empowered to be financially healthy –

one who can meet their financial need and obligations, absorb financial shocks, reach

financial goals, and achieve financial control and security.

Factors Influencing the Spending Habits of Students

A spending behavior is a learned practice of conduct that is repeatedly regularly. A

good spending habit is an essential part of financial success, Romel Tuliao (2019). Based

on the study made by Bona J T C (2018) entitled “Factors Affecting the Spending

Behavior of College Students”, stated that the spending behavior of college students is

greatly influenced by their family background. Parents play a key role in shaping not only

the attitudes about financial management but also the life attitudes of their children.

Regardless, Tew Choon Poh (20216) stated, that the spending habits of students in

Malaysia nowadays have become a major concern in society because of the increase in

bankruptcy cases and special problems among the younger generation which are often

associated with their change due to poor individual financial management. Jamilah Kamis

et al. (2021) seconded, claiming, that in their study in Malaysia, today’s generation’s

uncontrollable spending habits towards younger generations in Malaysia are becoming

worse, they tend to have less value money compared to the elder generation spending

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money. Since the cost of living in Malaysia has improved incredibly, the young

generations enjoy spending their money lavishly, with the reason country faces changes

in lifestyle and spending trends. Oloyede Obagbuwa, and Farai Kwenda (2020),

investigated the factors that influence the spending habits of university students and their

study found that financial attitude has a significant influence on students’ spending

habits.

Moreover, Bishop et al. (2022) indicated that the COVID-19 pandemic was a

phenomenal shock to the economy that rendered large and unpredictable changes in

household spending behavior.

REVIEW OF RELATED STUDIES

Based on the researchers, a web-based financial literacy and education program

made a clear insight that knowing financial literacy will enhance the student’s capability

in making a financial decision (Ririn Eka, Fariana, et al. 2021, DepEd Order No. 22, s.

2021).

Web-based spending habits may be influenced by generation, family background,

luxurious trends of lifestyle and the global economy (Tew Choon Poh, 2016. Bona J T C,

2018. Oloyede Obagbuwa, and Farai Kwenda, 2020, Bishop et al., 2022).

CONCEPTUAL/THEORETICAL FRAMEWORK

Input Process Output (IPO Model)

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 Figure 1.

Input Process Output

Profile of the Analysis of data The result of the
respondents: through: study:
a.) Year Level a.) Gathering 1.) Determine
and Strand information from the factors that
other references influence the
b.) Gender b.) Selecting
c.) Age spending habits
respondents
d.) Socio- of students in
c.) Gathering data FRV College
economic Status of student's
profiles 2.) Improved
d.) Distribution of student's
questionaire financial
e.) Collection of th knowlegde
data through
questionnaire and
interview

The conceptual framework shows the input, process, and output approach of the

study. The input is defined as the independent variable which includes the profile of the

respondents such as the age, gender, year level and strand, and the socio-economic status

of respondents. The process includes the gathering of information from other references

and data of students’ profiles, the distribution of questionnaires that were utilized, and the

data collection method.

In generating the questionnaire, the researchers surveyed the senior high school

students of Felipe R. Verallo Foundation College to evaluate the research problems.

For output includes the precautions after analyzing the results of the study. In this

research, the researchers conceptualized recommendations that will assist students in

improving financial literacy.

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HYPOTHESIS OF THE STUDY

H1. There is a positive relationship between financial behavior and seeking financial

education.

H2. Higher levels of financial literacy are associated with increased financial help-

seeking behavior.

H3. Socio-economic factors significantly influence an individual’s decision to seek

financial education.

ASSUMPTION OF THE STUDY

The study focused on the investigation of financial literacy among the students, and

how it can be improved on one’s knowledge, attitudes and behaviors related to managing

their finances. The following assumptions were made:

1. The researchers would be able to deeply explain the purposes of the study to its

respondents.

2. The researchers assumed that the participants have a genuine interest in improving

their financial literacy and would be honest in answering the questions.

3. The researchers assumed that the financial literacy programs being evaluated in the

study have been designed and implemented effectively, with appropriate content and

teaching methods to its respondents.

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4. The researchers assumed that the participants’ self-reported responses about their

financial literacy knowledge and behaviors accurately reflect their actual

understanding and practices.

5. The researchers believed that the findings of the study could be extrapolated to the

broader student population, assuming the sample is representative and the study

design is rigorous.

DEFINITION OF THE TERMS

Financial Literacy

The ability to understand and efficiently use different financial skills, namely,

personal financial management, budgeting, and investing, is financial literacy. As used in

this study, students in FRV College can understand how money works.

Financial Knowledge

Help people make informed financial decisions through problem-solving, critical

thinking, and an understanding of key financial facts and concepts.

Spending Habits

These are often contextual. You spend the same way with the same set of conditions.

Because it’s a habit, it may be so natural and involuntary that don’t even realize it.

Financial Literacy Program

It aims to promote financial stewardship practices with the teachers, students, and

parents by allowing the learners to experience building financial education milestones

through the program.

Saving Behavior

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 The combination of perceptions of future needs, a saving decision and a saving

action.

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