INTRODUCTION

Background of the Study

Financial literacy refers to the ability to understand and effectively utilize various

financial skills, encompassing personal financial management, budgeting, and investing.

It forms the foundation of one's relationship with money and is a lifelong learning

journey (Fernando, 2022). As Alanna Ritchie (2022) states, being financially literate

means knowing how to manage money effectively, including paying bills, borrowing and

saving responsibly, and understanding investment and retirement planning. Lusardi and

Tufano (2015) provided a more nuanced definition, highlighting financial literacy as the

ability to make informed decisions regarding debt contracts, applying basic knowledge of

interest compounding in everyday financial choices.Financial management is a crucial

aspect of daily life, often overlooked amidst the busyness of our routines. Effective

financial management encompasses a range of practices,including savings, investment,

and management. Broader aspects include banking, budgeting, insurance, retirement

planning, and more (Kumar, 2022). A key component of successful financial

management is financial literacy.

In North America, financial literacy improves the further north one travels. Africa

scores the worst of the entire continent. Every economy worldwide may not share

definitions of these financial concepts, as concluded local factors have influence their

conceptualization (Wafula 2022). A study conducted in eight European countries found

that students who receive financial advice from friends or parents with high income

levels possess more knowledge about personal finance. Although parents play a crucial
role in shapin their children's financial literacy, recent studies suggest that environmental

factors and technology also significantly influence Ergün, 2018). However, it is unclear.

The Philippines has made significant strides in promoting financial literacy

through its extensive programs, particularly the Pantawid Pamilyang Pilipino Program

(4Ps). This Conditional Cash Transfer (CCT) program, a cornerstone of the national

government's human development strategy, provides conditional cash grants to the

poorest of the poor, aiming to improve the health, nutrition, and education of children

aged 0-18 ("Pantawid Pamilyang Pilipino Program," n.d.). The 4Ps program aligns with

the Philippines' commitment to achieving five of the Millennium Development Goals

(MDGs): eradicating extreme poverty, achieving universal primary education, promoting

gender equality and empowering women, reducing child mortality, and improving

maternal health (Pecson et al., 2019). Studies have shown that the program's impact on

improving educational and health outcomes can contribute to beneficiaries attaining a

better quality of life in the future. Similar to other CCT programs, the 4Ps program aims

to bridge gaps in educational and health outcomes among children while providing

immediate poverty relief. The CCT program has been implemented in the Philippines for

over a decade, initiated during the administration of former President Gloria Macapagal-

Arroyo and continued by former President Noynoy Aquino, who renamed it to the

Pantawid Pamilyang Pilipino Program or 4Ps. The program, like other CCTs, has proven

to be effective in improving educational outcomes, both directly through the educational

and health grants and indirectly through the overall upliftment of the human condition of

its recipients. Efforts are underway to enhance the program's impact by equipping 4Ps

family-recipients with financial literacy skills to effectively manage the financial

assistance they receive. This initiative aims to empower these families towards financial

independence. Through financial literacy foster more functional financial practices and

behaviors among learners and their families. De Jesus and Rivera (2020) conducted a

research study titled "Assessment on the Allocation of Cash Grants of 4Ps Beneficiaries

on their Daily Expenditure," building upon the work of Malaluan et al. (2018) titled

"Financial Priorities of 4Ps Beneficiaries: An Assessment using First Bucket Theory."

Their research highlighted the need for further investigation into the financial literacy of

4Ps beneficiaries. This research gap inspired the current study, aiming to delve deeper

into the financial literacy of 4Ps beneficiaries. The Pantawid Pamilyang Pilipino Program

(4Ps) is a national poverty reduction strategy implemented by the Philippine government,

as outlined in Republic Act No. 11310, "An Act Institutionalizing the Pantawid

Pamilyang Pilipino Program."

According to Bhurn, 2019, conducted a randomized control trial in Mindanao and

found that comprehensive financial education program improved students’ financial

knowledge, ssaving behavior, financial planning and even having a positive effect on

parents’ financial knowledge. This will be conducted in Upi, Maguindanao Del Norte

with a significant number of 4P’s beneficiaries.

Furthermore research show that Pantawid Pamilyang Pilipino Program (4Ps)

impacts beneficiaries' financial literacy, especially students, its long-term effects on

financial behavior and decision-making remain unclear. Existing studies mainly assess

financial literacy levels and the link between 4Ps participation and academic

performance. However, research is lacking on how 4Ps-acquired financial literacy

translates into long-term financial behavior and decision-making in adulthood, and its
role in promoting intergenerational mobility. Further research in these areas is crucial to

understand 4Ps' long-term impact and inform policies for sustainable financial

empowerment.

The urgency of the research on Financial literacy of Pantawid Pamilyang Pilipino

Program beneficiaries students stems from the critical need to equip them with the

knowledge and skills to navigate financial challenges and build a secure future. This

students, often from low income families, face unique financial vulnerabilities and

required target interventions to break the cycle of poverty. Understanding their current

financial Literacy levels identifying factors influencing their financial behaviors, and

evaluating the effectiveness of existing programs is crucial to developing effective and

impactful interventions that empower them to achieve financial well- being.

Research Questions

This study aims to evaluate the status of Financial Literacy of Pantawid

Pamilyang Pilipino Program Beneficiaries among the parents of Grade 11 Students of St.

Francis Episcopal School of Upi, Inc., S. Y. (2024 - 2025).

Specifically, this seeks to answer the following questions:

1. What is the Demographic profile of the respondents in terms of:

1.1 Age

1.2 Sex

1.3 Ethnicity

1.4 Religious Affiliation

1.5 Monthly Income

2.What aspects of financial could best describe the highness and poorness of literacy to

the beneficiaries in terms of :

2.1 Budgeting

2.2 Saving

Null Hypothesis/ Research hypothesis

1. What is the Demographic profile of the respondents in terms of:

a. Age H0: The age distribution of 4Ps beneficiaries will not significantly differ

from a uniform distribution.

b. Sex H0: There is no significant difference in the proportion of male and female

4Ps beneficiaries.

c. Ethnicity H0: The distribution of ethnic groups among 4Ps beneficiaries will

be proportional to the general population of the area.

d. Religious Affiliation H0: There is no significant difference in the religious

affiliation of 4Ps beneficiaries compared to the general population of the area.

e. Monthly Income H0: The monthly income distribution of 4Ps beneficiaries

will not significantly differ from the general low income distribution of the area.

2.What aspects of financial could best describe the highness and poorness of literacy to

the beneficiaries in terms of :

a. Budgeting H0: There is no significant level of effective budgeting practices

among the Pantawid Pamilyang Pilipino Program beneficiaries.

b. Saving H0: There is no significant level of effective saving practices among

the Pantawid Pamilyang Pilipino Program beneficiaries.

Significance of the Study

This study aims to evaluate a more profound assessment of Financial Literacy of

Pantawid Pamilyang Pilipino Program among the parents of Grade 11 students of St.

Francis Episcopal School of Upi Inc. Furthermore, the study could be of any importance

to the following:

4Ps Beneficiaries. This will establish the knowledge that they have gain in financial

literacy that affects the decision-making that they planned when it comes to their

priorities, to be able to comprehend the knowledge which regards to the right financial

management.

Students. It will help evaluate a profound that regarded on the application of the

financial which related to the concerns in real life situations that emphasizes to the

learning that gained in school. Individual.

Parent. This may help the parents to guide their children’s in managing their financials.

Teachers. To improve knowledge in managing financials were putting emphasis on using

platforms for guiding the students.

Future Researchers. Future researchers can build upon findings of this study to conduct

further investigations, to expand the scope of research, and explore additional aspects

related to the effects of financial literacy among the students to have foundation about

financial literacy use the platforms for future studies and researchers.
Scope and Delimitation

The scope of this study is limited to the students of St. Francis Episcopal School

of Upi,Inc. This mainly focuses on assessing the students’ knowledge, attitude, values,

skills and utilization towards finances.

This research focuses on the financial literacy of students who are active

beneficiaries of the Pantawid Pamilyang Pilipino Program within a specific regions or

province in the Philippines, targeting a specific age of high school education. The study

will investigate their knowledge, attitudes, and behaviors related to budgeting, saving,

borrowing, investing, and financial planning, using survey questionnaires as the primary

data collection method. The research will be conducted with a specific timeframe,

providing a snapshot of financial literacy at the point in time, and will exclude

participants who have graduated from the program or are no longer receiving benefits.

This delimitation allows for a focused and manageable scope, enabling researchers to

gather meaningful data and draw relevant conclusion for developing effective financial

literacy programs tailored to this specific population.

Definition of Terms

To facilitate the understanding of this study, different terms are defined operationally:

Beneficiary. The poorest families living in Upi , Maguindanao del norte maximum of

three children per household.

Conditional Cash Transfer ( CCT ) . A program that provides cash to households on

the condition that they meet certain requirements .

Cash Grants. Are amounts of money given to individuals or organizations by a

government or other institution for a specific purpose, such as education or home

improvements.

Department of Social Welfare and Development ( DSWD ). Responsible for

distributing the cash grants the beneficiary families.

Expenditure. The act of spending money or using resources.

Financial Attitude. It influences how you manage, spend, and think about your finances.

Financial Literacy. Ability to understand and manage your finances effectively.

Conceptual Framework

Independent Variable Dependent

Variable

Financial Parents
Literacy Beneficiary

Figure 1. This figure shows the Independent and Dependent variable of the study. The

financial literacy the independent variable and the Parent beneficiary is the dependent

variable. It is presumed that the financial literacy can help the participants which is the

parents beneficiary.

Theoretical Framework

This framework centers on the financial literacy of beneficiaries of the Pantawid

Pamilyang Pilipino program, a conditional cash transfer program in the Philippines aimed

at reducing poverty. The program, as defined by Worldbank ( 2017 ), provides financial

assistance to low income families,contingent on their adherence to health, nutrition, and

education requirements for their children. Financial literacy, as highlighted by Banco et.al

( 2022 ), is crucial for individual,family,and national economic well- being. The 4Ps

program, according Lusardi and Tufano ( 2015 ), provides cash grants to eligible

families. Montilla et.al ( 2015 ) emphasize the programs role in poverty eradication,

implemented by the Department of Social Welfare and Development or ( DSWD ).

Lalawigan et.al ( 2024 ) explore the impact of demographic factors, including age,

education, and financial literacy, on beneficiaries financial behavior and attitude.

Contreras (2021 ) notes the growing concern regarding the lack of clarity in financial

literacy policies, raised by government agencies, schools and community groups.

 LITERATURE REVIEW

This chapter presents the reviews from other literatures and resources which were

relevant to the present study. The literature and studies cited by different authors and

researchers in the proceeding paragraphs have some bearing to the present study, thus, it

provides references for the research and undergo such research undertakings.

Related Literature

The national government that provides conditional cash grants to the poorest of

the poor, to improve the health, nutrition, and the education of children aged 0-18. It is

patterned after the conditional cash transfer (CCT) schemes in latin american and african

countries which have lifted millions of people around the world from poverty

( wordbank, 2017). The 4p's is a conditional cash transfer program of impoverished

households. The program gives households grants so long as they meet certain

requirements, including keeping the student in school, having regular health check - ups

and having parents or guardians who attend family development sessions. The implied

that the program was effective in attaining its objectives but there are still aspects that

need further attention regarding the initiatives of the government in reducing poverty

level in the country.

The Role of Financial Literacy in Enhancing the Effectiveness of Conditional Cash

Transfer Programs

Financial literacy is a way to maintainability and has an utmost vital part in

guaranteeing the financial supportability of people, families, ventures, and national

economies. The level of these financial pointers, such as obligation, investment funds,
and budgetary administration, all interpret into success or bankruptcy and insolvency and

result mostly from financial literacy (Banco et. Al 2022). Financial literacy refers to the

knowledge and skills necessary to make informed and effective decisions regarding

personal finances. It involves understanding various financial concepts such as budgeting,

saving, investing, and managing debt. Financial literacy is an essential aspect of financial

well-being, as it enables individuals to make informed decisions about their money and to

plan for their future.Financial satisfaction is a subjective measure of an individual's level

of contentment with their financial situation. It is based on personal beliefs and values

regarding what constitutes a satisfactory financial position. Financial satisfaction is

influenced by a variety of factors, including income, expenses, debts, and assets, as well

as broader economic and social factors. The Pantawid Pamilyang Pilipino Program (4Ps)

is a conditional cash transfer program in the Philippines that provides cash grants to poor

households, with the aim of improving their health, education, and overall well-being.

Financial literacy and financial satisfaction are two important factors that may influence

the effectiveness of the 4Ps program in achieving its objectives. In a more complex

explication, it is specifically excavated as the ability to make simple decisions regarding

debt contract, in particular, how one applied basic knowledge about interest

compounding measured in the context of everyday financial choices (Lusardi & Tufano,

2015). There upon, it acts as a crucial factor in financial management of people especially

families.

Challenges of Financial Access and Inclusion for 4p's Benefeciaries

One of the main issues that 4Ps beneficiaries face is limited access to financial

Many of these beneficiaries may not have had access to formal financial education, which
can make it difficult for them to understand basic financial concepts and make informed

financial decisions. Without this knowledge, they may struggle to manage their finances

effectively, leading to financial dissatisfaction and hardship.Another issue that 4Ps

beneficiaries face is a lack of financial inclusion. They may not have access to formal

financial services, such as banking and insurance, which can limit their ability to save and

manage their money effectively. This lack of access to financial services can also make it

difficult for them to access credit or loans when they need it, making it challenging to

invest in their future and achieve their financial goals. Demographic aspects like age, the

highest level of education attained, and income, as well as financial literacy components

like financial knowledge, financial attitude, and financial behavior were investigated,

appraised, and extensively examined.(Lalawigan et. Al 2024).Pantawid Pamilyang

Pilipino Program (4Ps) is a version of cash transfer program here in the Philippines under

the Department of Social Welfare and Development, its aim is to eradicate extreme

poverty in the Philippines by investing in health and education particularly to children

from 0-18 years old. The research focused on the education of pupils with the 4Ps

assistance. To verify the use, help and satisfactory level of this program to the pupils

from poor families in the said school, the researchers used the quantitative and qualitative

method ( Montilla et al. 2015).

The Urgent Need for Clarity in Financial Literacy Policy and Support for 4p's

Beneficiaries

Over the past few years, concerns surfaced by various governmental bodies,

school administrations, community interest groups, and other organizations about the lack

of clarity and specificity in financial literacy policies. It is essential to have adequate

knowledge of finances to make sound financial decisions (Contreras, 2021). Therefore,

promoting financial literacy has gained more attention lately. Felipe et al. (2017)

emphasized the importance of financial literacy in assisting in making informed financial

decisions to achieve financial well-being.

The Importance of Financial Literacy for Individual and Societal Growth

Swiecka's (2020) research indicates that financial literacy is critical to the long-

term growth of both individuals and society. Despite increased financial literacy

9research over the past decade, experts still define it differently, indicating the need for

further research. A significant demand for more research on financial literacy was

present, as evidenced by scientists worldwide who continue to study it. Understanding

finance is crucial in making informed financial decisions and exhibiting sound financial

behavior, as stated by Lusardi (2019). Therefore, an individual's financial decision-

making abilities depend on their knowledge and understanding of personal finance,

according to Lusardi (2017).

The Influence of Environment, Technology, and Family on Financial Literacy and

the Role of Stewardship Plans

A study conducted in eight European countries found that students who receive

financial advice from friends or parents with high income levels possess more knowledge

about personal finance. Although parents play a crucial role in shaping their children's

financial literacy, recent studies suggest that environmental factors and technology also

significantly influence (Ergün, 2018).

However, it is unclear whether senior high school students possess adequate

financial knowledge and if they are aware of their level of financial literacy. A financial
stewardship plan can serve as a roadmap for better financial decisions. According Casco,

Lam, Lumantas, and Magno (2015), The Philippine government implemented Pantawid

Pamilyang Pilipino Prognan (4Ps) and patterned it after Latin Amencas condnional cush

transfer (CCT) programs, with the poals of poverty reduction and social development.

Patawid Pamilyang Pilipino Program, also known as 4Ps and furmetly Ahow Purallyang

Pilipino a Conditional Cash Trasfer program of Use Philippine government maker the

Depretiner of Social Welfare and Development.

The Relationship Between Poverty and Health and the Role of Pantawid Pamilyang

Pilipino Program in Addressing these Issues

Frufongs (2016), mentioned that one factor that is associated to the health status

of an individual is poverty. According to the study of Institute of Family Life and

Children's Studies Philippine Women's University (October 26, 2016), it aims to

eradicate extreme poverty in the Philippines by investing in health and education

particularly in age 0-14.1 iy patterned on programs in other developing countries like

Brazil (Bode Familia and Mexico (Oportunidades).As extracted from the official website

of Pantawid Pamilyang Pilipino Program (Pantawid.dvod.gov.ph, the 4Ps program

opersies 17 regions 70 provinces and 1.484 municipalities and 4 (social assistancel, and

(2) break the immergenerational cycle of poverty through human capital investmons und

nutrition (social development). It targets s "poorest of the poor" in the country, and as

beneficiarits, they receive a toonthly cash grass of PhP 500 for health exposes, and

PhP300 pot school child mub in elementary school or PhP 300 if the child is in high

school (macninum of three children) (Pantawid.dewl.gov.ph). The program formally

launched in 2008 with 366,000 household recipients, by 2015, the mundher of

heueficiaries 4.4 million. The latest evaluations of the Pantawid show its positive impact

conditionudity Le concerns directly targeted by the children's alustion (there increased

enrolment rate in primary schools in the Pantawid communities) and health (more

mothers are going to health cetters for professional matemal health services and health

guidance in general, more children se receiving vaccines and regular de-worming, the

household hos increased their fond intake) Based from Flores. Espinoza, Enrico, and

Casimin (2015), therefore recommended that the scope of the program be extended

especially that two years have heen added to the secondary education.

However, there is a need to asses changes beyond the compliance of households

in the Pantawid conditionality and how the positive impact of the program be sustained

after its heneficiaries have "graduated from the program. It is noted that one of the gouls

of the conditional cash handover program is to break the intergenerational series of

poverty.

Evaluating the Pantawid Pamilyang Pilipino Program's Impact on Education and

Economic Conditions

A study of Maimad et al. 2023, The Pantawid Pamilyang Pilipino Program (4Ps)

is a conditional cash transfer (CCT) program to alleviate socio-economic conditions in

the Philippines, addressing Sustainable Development Goals (SDGs) 1 (No Poverty) and 4

(Quality Education). Yet, the program impact on education and economy still

understudied. Financial education should provided for students during secondary school

as a natural context in which to establish young peoples financial literacy (Zhu et al.

2021). According to Abenir 2021, DSWD introduced Pantawid Pamilyang Pilipino

Program because of inequality and corruption in the country. Filipinos having a hard time
buying their necessities for daily lives. DSWD help to alleviate the poverty line by

complying with the necessary requirements. However, Filipinos benefits from the

program without complying the requirements at all. that its citizens are under the

circumstance of poverty.

Overview and Objectives of the Pantawid Pamilyang Pilipino Program (4ps)

Pantawid Pamilyang Pilipino Program (4Ps) is one of the fully operational

assistance currently implemented by the Department of Social Welfare and Development

(DSWD) and supported by the other government agencies ( Anabelle Aguado 2021).

According to Francis Mark Dioscoro R. FELLIZAR, Dhino B. Geges, Chrislyn

Faulmino, Michelle Q. Pangilinan, Geronima Abigail B. Ilagan, Chynna Sandra J. Palis

(2017) that This conditional cash transfer program under the Department of Social

Welfare and Development (DSWD) helps in fulfilling the country's commitment to meet

the Millennium Development Goals, namely: (1) to eradicate poverty and hunger; (2)

achieve universal primary education; (3) promote gender equality; (4) reduce child

mortality; and (5) improve maternal health; and aims to target the "poorest of the poorA

study of Maimad et al. 2023. The Pantawid Pamilyang Pilipino Program (4Ps) is a

conditional cash transfer (CCT) program to alleviate socio-economic conditions in the

Philippines, addressing Sustainable Development Goals (SDGs) 1 (No Poverty) and 4

(Quality Education). Yet, the program impact on education and economy still

understudied. Financial education should provided for students during secondary school

as a natural context in which to establish young peoples financial literacy (Zhu et al.
2021). According to Orbeto and Paqueo 2016, Pantawid Pamilyang Pilipino Program has

much maligned and dismissed as a "dole-out" program. Critics believe that providing

money directly to the poor families promote the culture of mendicancy and dependence.

Financial literacy is a multi component construct comprising financial knowledge,

attitude, behaviors, and well being. Financial literacy in young people helps them to

achieve financial independence and escape from poverty (Zhu et al. 2021).Financial

literacy includes balancing a budget and funding the children’s education.

The study of the writer mirrors the required behavior that each beneficiary must

have. Other than the required behavior, the beneficiaries are also required to submit a

report of their consumptions for every month; their report must only be about the

consumption for nutrition, health and education. This requirement needs an ability to

budget that is, therefore, equals to having financial literacy. (Folger, 2017) One early

work by The Manila Times (2016) states that the advantage of acquiring financial literacy

is that it will teach you how to budget money. By comparing your list of essential

expenditure with actual expenses, you will find that you are overspending. Financial

literacy will make you aware of the basic problem, which might be that you are spending

too much. Financial literacy also teaches you to project values of your money in the

future so that you can make better decisions in handling them. Gaining such literacy at an

early age will help envision your financial goals in life. In relation to the study, 4Ps

beneficiaries who acquire financial literacy knows the basics on handling finances in

which they are able to use and spend the money in a literate way. Possessing this kind of

behavior, the beneficiaries can do their responsibilities.

The impact of income and social support on the Financial Literacy and Satisfaction

of 4p's beneficiaries

Income is another key factor that can affect financial literacy and financial

satisfaction among 4Ps beneficiaries. Low income can make it challenging for

beneficiaries to cover basic expenses and save for the future, leading to financial stress

and hardship. Financial stress can affect financial satisfaction, as it can lead to feelings of

anxiety and uncertainty about the future.Research has shown that financial satisfaction is

positively associated with income (Kleinhanss etal., 2020). Higher income can lead to

more financial stability and security, which can contribute to increased financial

satisfaction.Family and social support is another factor that can affect financial literacy

and financialsatisfaction among 4Ps beneficiaries. Research has shown that individuals

who have family andsocial support tend to have higher levels of financial literacy and

financial satisfaction (Lusardi &Mitchell,2014). Family and social support can provide

beneficiaries with access to financial education and resources as well as emotional

support,which can contribute to increase financial well being.

Impact of financial literacy education

Financial literacy education (FLE) typically focuses on teaching skills and

capabilities that promote individual wealth accumulation—for example, the importance

of working, budgeting and saving. In this article, we argue the need to move from an

individual wealth accumulation focus in FLE to a praxis approach to FLE. We outline the

shortcomings of the conventional approach to FLE and develop a conceptual framework

for a praxis approach to FLE. We view praxis as the moral, ethical and caring aspect of

teaching. Using the conceptual framework, we argue that a praxis approach to FLE
includes full attention to: how financial decision-making affects others and self;

acknowledging that some life decisions are not financially rewarding; understanding that

improving financial mathematics skills and capabilities may not equate to an increase in

income; how SES affects an individual’s ability to save and maintain long-term saving;

and the ways in which gender, culture, values, psychological state, socioeconomic class

and ethics shape identity and their impact on financial decision-making ( Blue and

Grootenboer 2019). Most governments are concerned about improving financial literacy.

Providing a course on money management to high school students should be an effective

method to improve financial literacy ( Farinella et al 2017). Specific behaviors, such as

the handling of debt, are more difficult to influence and mandatory financial education

tentatively appears to be less effective. Thus, intervention success depends crucially on

increasing education intensity and offering financial education at a “teachable moment.” (

Kaiser &Menkhoff 2017).

Throughout their lifetime, individuals today are more responsible for their

personal finances than ever before. With life expectancies rising, pension and social

welfare systems are being strained. Individuals have also experienced changes in labor

markets. Skills are becoming more critical, leading to divergence in wages between those

with a college education, or higher, and those with lower levels of education( Lusardi

2019). A promising method to teach financial literacy to children and adolescents in

primary and secondary school is “experiential learning.” In college, the focus should be

on specific “life events” of students. The findings may be useful for designing an

effective school-based financial education program. (Amagir et al 2018).

Financial Literacy and It's Impact on Young adults in Malaysia

 Around the world, specifically Malaysia, high school freshmen must make a

variety of financial choices as they transition to adulthood. These choices include

handling finances, comprehending credit and debt, setting aside money for the future, and

selecting wisely. Being able to make wise financial decisions is essential since mistakes

made now could have long-term effects (Hastings & Mitchell, 2018). In light of this,

comprehensive financial education programs that are part of high school curricular have

gained popularity as a variable way to give pupils the tools they need to handle the

financial challenges they face.In Malaysia, as high school freshmen transition into

adulthood, they face a multitude of financial choices that will significantly impact their

future. These choices include managing their finances, understanding the concepts of

credit and debt, saving for the future, and making informed decisions. Making sound

financial decisions is crucial, as mistakes made early on can have lasting consequences

(Hastings & Mitchell, 2018). Recognizing this, comprehensive financial education

programs are increasingly being integrated into high school curriculums to equip students

with the skills necessary to navigate financial challenges.

The Role of Financial Knowledge and Confidence

Financial sophistication (Woodyard & Robb 2016). Highly adjusted individuals

with higher financial knowledge but lower financial goals may be perceived as more

confident. Previous studies have shown that overconfidence in people's skills often leads

to worse financial performance Rob et al. 2015; and a reluctance to seek financial advice

(Kramer 2016; Lewis 2018). Similarly, individuals with low financial knowledge but

high financial goals may feel insecure. Lack of trust can also have a negative impact on

financial behavior if, for example, individuals become more reluctant to make important
financial choices. Peters et al. (2019) showed that people with "inconsistent" levels of

objective and subjective self- efficacy report worse financial and health outcomes. In

addition to trust, it is therefore important to examine the relationship between trust and

confidence in financial behavior.Financial sophistication is a complex concept

(Woodyard & Robb, 2016). Individuals with a strong grasp of financial knowledge, even

if their financial goals are modest, may appear more confident.

However, overconfidence in one's financial abilities can lead to poorer

performance and a reluctance to seek expert advice (Rob et al., 2015; Kramer, 2016;

Lewis, 2018). Conversely, individuals with limited financial knowledge but ambitious

financial goals may feel insecure. A lack of trust can also negatively impact financial

behavior, as individuals may hesitate to make important financial decisions. Research by

Peters et al. (2019) indicates that individuals with inconsistencies between their objective

financial knowledge and their perceived abilities often experience worse financial and

health outcomes. Therefore, understanding the relationship between trust and confidence

in financial behavior is crucial. According to Rootman and Antoni (2015) ),financial

literacy is the development of any skill that results in a comprehension of financial facts

and the capacity to make wise and prudent financial decisions. In order to respond

positively to financial problems, a person must be emotionally engaged when learning

financial concepts and information (Potrich et al., 2016). When it comes to their level of

saving behavior, debt management, and spending patterns (Rootman & Antoni, 2015).

Financial Knowledge

Financial literacy is a collection of public information, abilities, and attitudes that

is important in today's society for the financial security of oneself and their family (Berry
et al., 2018). According to Mien and Thao (2015), personal financial management

conduct is connected with financial literacy or knowledge, whereas someone with a locus

of control is less likely to behave poorly in this area. The financial management behavior

of creative economy actors in the fashion sub-sector in Kediri City was significantly

influenced by research by financial knowledge, financial attitude, and locus of control

(Mardhatillah et al., 2020). The study by Bapat (2020) produced results that verified the

existence of a relationship between parents have a great influence on the saving behavior

of 4,444 students. . This is also consistent with what Sirine and Dwi (2016) found

conveyed, they also stated that parental socialization has a positive impact and significant

influence on students saving behavior. Based on the results of research conducted and

consultation with experts and previous studies, obtained evidence that the role of parents

influences savings behavior.

According to Moreno et al. (2017) study, financial education can be defined as the

comprehension and empowerment individuals gain regarding financial matters, in

conjunction with their educational level. This knowledge equips them with the foundation

to make informed decisions about their personal finances. Financial education has the

potential to convey knowledge, skills, and attitudes, facilitating the adoption of prudent

financial practices by the general population (Berry, 2018) Furthermore, it serves as a

means of promoting financial inclusion. as it enables people to develop the necessary

skills to access and choose financial products that align with their specific requirements,

as highlighted by Chen and Lemieux in 2016.

Critical role of National and Personal Savings in Economic Development

 A country's national savings is the sum of savings made by the public and private

sectors, including individual savings.Personal savings will benefit households and the

country (Abdul Jamal et al., 2016) because personal savings are a part of national savings

(Gandelman, 2016). Personal savings refers to the amount remaining in an individual's

disposable. income after subtracting consumption expenditures (Ismail et al., 2020),

Because savings are a source of capital, a key factor of production, and a driver of labor

productivity and growth. an understanding of persorial savings is essential to

understanding long-term economic development term (Bodenhom, 2018). National

savings are an important indicator of economic development. for a country as it is used to

finance national investments to achieve economic growth (Hashim et al., 2017).

However, it is worth noting that over the past decade, a decline in Malaysia's

gross national savings has led to concerns that the country's savings will not be enough to

fund the investments needed in the future. future to promote the country's economic

development (Lee Heng Guie, 2022). Personal savings will benefit households and the

country (Abdul Jamal et al., 2016) because personal savings are a part of national savings

(Gandelman, 2016). Personal savings refers to the amount remaining in an individual's

disposable. income after subtracting consumption expenditures (Ismail et al., 2020),

Because savings are a source of capital, a key factor of production, and a driver of labor

productivity and growth. an understanding of persorial savings is essential to

understanding long-term economic development term (Bodenhom, 2018). National

savings are an important indicator of economic development. for a country as it is used to

finance national investments to achieve economic growth (Hashim et al., 2017).

 According to Ayadi et al. (2018), it will eventually result in industrial

development, the business period, a shift in the character of goods, stable prices. and

higher prices. In both established and developing nations, household and individual

savings account for a significant portion of national savings. (Ayadi et al... 2018). This

factor will boost investment levels and the nation's economic growth (Ahmed,

2015).Saving is part of an individual's income (Mori, 2019). Saving mobilization requires

an immense effort to teach the culture of saving and increase confidence among

individuals. particularly the young people who can save more at their early age than their

older anes (Uddin, 2020). Most students lack trust of their ability to handle money

wisely. They are more influenced by their spending habits and has issues making good

financial decisions (Andriani et al., 2018). Spending patterns among students are not a

constant phenomenon and comprise a type of financial behavior that is influenced by

one's level of financial literacy and money-management prowess (Nadome, 2014).

Students who are no longer under the protection of their parents and guardians are now

responsible for their own financial decisions and must plan and manage their funds. The

spending habits vary from person to person. Youth. involves in conspicuous consumption

regardless of the source of funds. They have no or limited experience in saving and

spending as they learn to live within their means. Individuals below the age of 30 years

have high rate of debt because of their limited experience with finances and managing

money (Kim et al. 2016). It has been observed that people lack actual financial literacy.

They do not engage in simple financial behaviors like saving money and creating a

budget. There could be some negative repercussions if one does not cross these (Birari &

Patil. 2014).
 The study, according to Jeevitha and Priya (2019), revealed that students sperit

more money than they saved, even though they were aware of how important saving

money was. Even so, students have their own spending habits. Even if the majority of

them still financially rely on their parents. By promoting financial literacy, we can

prevent students from spending their money on unnecessary purchases. Young people's

spending habits are an increasingly important topic in the financial sector management.

(Henry et al., 2019). These people make more complex financial decisions and follow

through financial management procedures. (Parotta & Johnson, 2018). Young people's

spending habits will affect their lives early financial situation (Bona et al., 2018).

Adopting spending habits early will help give them the best opportunity to complete their

education and learn about money future management skills. According to Bona (2018),

tracking money prevents overspending, impulsive purchases, and overpaying for items.

Students' spending habits can have many effects on their lives, including their

relationships. with family, friends, and even strangers. Somebody These impacts can be

felt not just in terms of financial wellbeing.

Saving Habits. Tharanika and Anthony's (2017) research demonstrates that

financial literacy both positively influences and most significantly influences saving

behavior. Most students lack trust of their ability to handle money wisely. They are more

influenced by their spending habits and has issues making good financial decisions

(Andriani et al., 2018), The literature discusses a variety of aspects of pro-saving

financial behavior, and a large portion of it believes that this financial literacy is crucial

for everyone, not just for professional managers. This is especially true for managing

both corporate life and personal level, which raises the question of what skills people
should possess to cope better with both personal and professional life (Ribeiro et al.,

2018) More can be gained by increasing the rate of saving (Cheema et al., 2018).Saving

is important to students, not only because they have their own. money, but also are used

to managing themselves properly to become wise people in managing their finances, and

not wasteful or redundant. While saving behavior is the behavior performed by someone

by setting aside a part of his income that he has to save (Triardiyani & Retno, 2014).

There are many ways that individuals can save, including setting aside a portion of their

income, reducing expenses and delaying consumption investments (Frun et al., 2019). If

young adults have less savings and available financial resources than older adults, it is

worth examining how they use and spend borrowed money in the form of debt and credit.

Poor spending habits are a behavioral pattern that is characterised by a lack of

self-discipline regarding continued overspending. According to the social learning theory,

spending habits are leamed from parents and other key personalities (Fluellen, 2018).

Individual childhood experiences comprise ways parents manage money and the money

management lessons received. Parents are critical impetus in their children's lives when

growing. The positive and negative spending habits displayed are subject to their parents'

habits (Hadzic & Poturak, 2014). The agents of socialisation, such as family and peer

groups, have a pattern of behavior known as "bad spending habits" involves an inability

to control current expenses. The social learning hypothesis posits that people learn

spending habits from their parents and other influential people (Luelle, 2018). According

to Ollau et al. (2020), young adults' shopping habits have a significant impact on the

duration of their financial resources.

 Instead of investing in long-term financial plans, young people quickly spend

money on consumer goods (Decena & Abellalanosa, 2022). Institutions should promote

and encourage better financial literacy among students. Unlike pleasures such as food,

clothing, and other items, financially, students often spend more money on durable goods

such as housing, education, and investments (Frun et al., 2019). If young adults have less

savings and available financial resources than older adults, it is worth examining how

they use and spend borrowed money in the form of debt and credit.

The Multifaceted Nature of Financial Literacy

Financial literacy has traditionally been used to refer to knowledge of financial

concepts and procedures. contends that the concept of "financial literacy" includes

knowledge of money, attitudes about money, and financial behavior. They also

demonstrate that there is no statistically significant relationship between financial self-

efficacy and knowledge, attitudes, or behavior related to money (Amagir et al., 2018).

Financial literacy is described as having "knowledge and understanding of financial

concepts and risks, as well as the skills, motivation, and confidence to apply such

knowledge and understanding in order to make effective decisions across a variety of

financial contexts, to improve one's own and society's financial well-being, and to enable

participation in economic life." (OECD, 2014).Spending Habits. It is impossible to

separate people's spending habits from their daily lives due to the rapidly changing and

highly competitive global business environment. As a result, decision making becomes

more difficult (Stym, 2020). Due to exposure to marketing initiatives, Intermet service
providers, and electronic purchasing options, students are affected by this problem (Stym,

2020). Decisions, financial education is essential As one of the Philippines poorest

provinces, Mindanao needs special consideration in financial literacy initiatives. Senior

high school students, who will be future consumers and earners, have a special need for

the necessary knowledge, abilities, and attitudes to make wise financial decisions. This

study seeks to determine what influences senior high school students in Mindanao's

knowledge of finances and the effects of financial education on that knowledge. (Datuon,

2018).Understanding the effects of financial literacy on high school students is urgent

due to their vulnerability to financial challenges, lifelong impact of early. financial

decisions, and broader economic stability concerns. A thorough financial education

fosters personal growth, social justice, and equips students for a dynamic global

environment. Both people and society need to grasp this.

There are many important areas where data is lacking regarding how financial

education affects high school students' financial literacy. First and foremost, research is

required to look at the long-term effects of financial education, monitoring students

financial knowledge and behavior over time. Comparative studies on the effectiveness of

various teaching strategies, particularly those that use digital platforms, can shed light on

the techniques that result in the biggest gains.The ability of financial literacy among

senior high school students to foster a more stable, just, and informed society is what

gives it social significance.

We donate the opportunity to do so (Amagir et al. 2018). The Organization for

Economic Cooperation and Development defines financial literacy as: "the combination

of financial awareness, knowledge, skills, attitudes, and behaviors necessary to make

financial decisions." rational policy and ultimately achieving personal financial happiness

(Goyal & Kumar, 2021))" and is used synonymously. with other terms such as: financial

confidence, financial awareness, financial knowledge, financial literacy and financial

education.

Notable Studies on Financial Literacy and Financial Inclusion

In an Asian research led by Chen and Jin (2017), they discovered a link between

limited usage of formal financial products or services and low financial literacy,

indicating deficient knowledge about financial services. Meanwhile, a study conducted in

Ethiopia by Desalegn and Yemetaw (2017) demonstrated a positive correlation between

financial literacy and indicators of financial inclusion. The likelihood of financial

inclusion tends to decrease with age but increases among younger individuals.

Additionally, a preference for formal financial institutions and mmarital status can

heighten the probability of financial inclusion. Surprisingly, the study also unveiled that

individuals with greater financial capability are less likely to be included in Ethiopia's

financial landscape.

Goel and Sharma's (2017) study in India emphasized a significant gap between

the rural population's demand for financial resources and their actual accessibility. This

disparity persists despite rapid economic infrastructure growth, leaving marginalized

sections underserved. The authors observed that financial services have yet to reach the

remote regions of India, attributing low penetration rates to insufficient financial literacy.

They underscored the necessity for increased proximity of financial institutions, or the

development of products tailored to meet the specific needs of these marginalized groups.
 According to Deka (2015), financial literacy serves as a crucial instrument in

aiding customers to embrace and utilize the growing array of available products. It plays

a pivotal role in nurturing skills necessary for assessing and selecting the most fitting

products based on individual needs, empowering individuals to advocate for their rights

and fulfill their obligations. MMoreover, it equips women with the ability to make

informed financial decisions by imparting knowledge and skills in financial planning,

banking fundamentals, household budgeting, managing cash flow, and allocating assets

to achieve their financial oobjective. Grohman et al. (2018) established a positive

correlation between financial literacy and financial inclusion, emphasizing the role of

financial literacy in fostering prudent financial decision-making. Abel, Mutandwa, and

Roux's study (2018) corroborated this, highlighting a significant positive relationship

between financial inclusion and financial literacy. It demonstrated that being financially

literate predicts the demand for financial products, allowing individuals to comprehend

the pros and cons of various services before making choices. Additionally, Bongomin et

al. (2017) introduced a specific aspect of financial literacy influencing financial

iinclusion, noting that only financial attitude significantly impacts inclusion. Finally, Roy

et al.'s (2017) research emphasized the importance of comprehending the value of

utilizing financial services,emphasizing its link to financial knowledge and skills. The

scholars' assertions confirm the substantial impact of financial literacy on

individuals'financial inclusion. Possessing adequate knowledge and skills in financial

matters enables individuals to adopt and make use of diverse financial products and

services, ultimately bolster in financial inclusion. This will serve as the primary focal

point for the researchers in this theory paper.

 METHODOLOGY

Research Design

This research will employ a quantitative. descriptive research design to

investigate the Financial literacy of Pantawid Pamilyang Pilipino program beneficiaries

oponents in Saint francis Episcopal School of Upi Inc. A likert scale test will be

administered to a presentative sample of parents, collecting numerical data for analysis

using descriptive statistic. The cross – section study, conducted at a single point in time,

aims to identify the current level of financial literacy, influencing factors, and specific

needs and priorities of these students.

Research Respondents
 The study will focus on ninety (63a) selected parents who are beneficiaries of the

Pantawid Pamilyang Pilipino Program and currently enrolled their children at St. Francis

Episcopal School of Upi, Inc. for the S.Y ( 2024 – 2025 ). This parents will be choosen

regardless of the level of financial support they receive from the government program

and will be asked to complete a questionnaire design to gather the data.

Research Locale

St. Francis Episcopal School of Upi, Inc. nestled in Nuro Upi, Maguindanao del

norte, has a rich history dating back to 1961. Charles Brown, the school was establish

with community and ecclesiastical support and named after St. Francis of Assisi, the

patron saint of the local episcopal Parish church. Guided by American principals Rev.

George Harris, the school quickly gained recognition for its strong academic program and

well equipt facilities. The first senior class graduated in 1964, followed by the opening of

the first grade 7 class in 1965, marking significant milestone in schools growth and

contributing to its enduring legacy as a center of learning and community engagement in

the region.
Sampling Technique

The research entitled “ Financial Literacy of Pantawid Pamilyang Pilipino

Program beneficiaries among the parents of grade 11 students “ employed purposive

sampling to select participants among parents of the students of St. francis Episcopal

School of Upi, Inc. The parents population was divided on the grade level of their

children, ensuring representation from each section. This approach aimed to capture the

diversity of financial literacy levels across different age groups within the school. While

this method helps ensure a representative sample, it’s important to note that the findings

may not be generalizable to all 4Ps beneficiaries in other schools or regions.

Research Instrument

The resaerchers will use a survey questionnaire to gather data for this study. The

questionnaire will use likert scale, which allows respondent to rate items on a scale. The
survey adapted from validated measures utilize in previous research by Cuesta Jelou

(2022) and Dela Cruz, Diaz, Madrid (2024). This format will create a scale to measure

the parents attitudes and behavior of “ Financial Literacy of Pantawid Pamilyang Pilipino

Program Beneficiaries”. These questions will be answered by 63 randomly selected

parents of senior high school stdents. The response from the survey will be analyzed.

Data Collection Procedure

The data collection procedure will primarily seek permission through a letter

from the principal of the school of St. Francis Episcopal School of Upi Inc. to conduct the

study and administer answer the financial literacy test with their respective parents. The

interview with the target respondents will be facilitated when the approval is in obtained.

As a part of the interview introduction, the researchers will inform the respondents about

the study details and assure them that their personal information will keep confidential.

Likewise, confirm the respondent written or verbal consent to record their responses via

phone and transcribe them verbatim.

Statistical Treatment of Data

This study titled “Financial literacy of Pantawid Pamilyang Pilipino Program

beneficiaries among the parents of grade 11 students of St. francis Episcopal School of

Upi Inc. The formula that we use is the common statistical formula.This would involve

collecting data through surveys, interviews, and focus groups to assess beneficiaries’

knowledge, attitudes, and behaviors related to financial concepts.