Grand Synthesis

Financial literacy is foundational for making sound financial decisions, allowing individuals to
manage money effectively, save, budget, and invest wisely. Research underscores that financial
literacy enhances personal and societal resilience, especially during economic crises like
COVID-19 (Inocian et al., 2021; Panaguiton, 2022). By equipping people with these skills,
financial literacy contributes to both personal financial health and broader economic stability.The
need for integrating financial literacy into educational systems is clear. Studies indicate that the
current Philippine K-12 curriculum lacks sufficient emphasis on financial education, particularly
in subjects like Math and Social Studies, limiting students’ preparedness for real-world financial
challenges (Yeban & Florendo, 2020). Developing a targeted financial literacy curriculum could
empower students from a young age, promoting lifelong financial responsibility.For specific
groups, financial literacy offers distinct benefits. Teachers, as influencers of future generations,
benefit significantly from financial education. Research by Ferrer (2018) found that many
teachers struggle with financial planning, underscoring the need for enhanced financial training
to help them manage their finances and teach these skills effectively to students.Among students,
financial literacy plays a key role in preventing impulsive buying and fostering budgeting skills.
Studies indicate that factors like parental guidance and academic readiness influence students’
financial behaviors, and better financial knowledge can help students make thoughtful financial
choices, avoiding impulsive spending (Lalosa, 2020; Jabar, 2021).Entrepreneurs, particularly
those in micro and small enterprises (MSMEs), also benefit from strong financial literacy, which
helps them make informed decisions, reduce risks, and navigate complex financial landscapes.
Financially knowledgeable entrepreneurs are better equipped to analyze financial data, ultimately
improving business stability and success (Gonzalvo & Avila, 2019; Anshika et al.,
2021).Financial literacy is further linked to broader economic goals through financial inclusion,
allowing individuals from various socioeconomic backgrounds to participate in financial
systems. Financial literacy promotes access to financial resources and supports national
development objectives, helping lift marginalized communities out of poverty. Programs like the
Pantawid Pamilyang Pilipino Program (4Ps) demonstrate how financial support, paired with
education, enhances economic outcomes for low-income families (Desello & Agner, 2023; Once
et al., 2019).Behavioral research highlights financial literacy as a protective factor against
impulsive buying. Individuals with stronger financial knowledge tend to make deliberate
purchases, reducing the likelihood of financial strain from impulsive decisions (Jabar, 2021).
Financial literacy also empowers individuals to engage in informed investment practices, which
strengthen capital markets and promote economic growth, benefiting the larger economy (Arena
et al., 2023). Anshika et.al, (2021). The success of MSE sector depends highly on the level of
financial literacy of the entrepreneurs. Financial literacy is defined as managers’ capacity to
understand and analyse financial data so as to take financial decisions (Marriott & Mellett,
1996). Similarly, Mandell (2007) has defined financial literacy as “the ability to evaluate the new
and complex financial instruments and make informed judgments in both choices of instruments
and extent of use that would be in their own best long-run interest”. As per Lusardi and Mitchell
(2014), financial literacy is “the knowledge of basic financial concepts and ability to do simple
calculations”. The significance of financial literacy has gained importance due to commencement
of new financial products/services, complexity of financial markets and the rapidly changing
economic environment. However, the extant literature reveals that there is no well-defined
standard definition of financial literacy (Gerrans & Heaney, 2016; Mabula & Ping, 2018).
Therefore, the measurement of financial literacy has been considered as a big challenge
(Remund, 2010).

Reference

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