Chapter 1

THE PROBLEM AND ITS SETTING

Background of the study
Aftermaths of worldwide monetary pain empowered the zone of money
related education for strategy creators over the globe. Money related
proficiency confers information with respect to the danger and return of
monetary items to the clients and suppliers of these items. Money related
proficiency turns into the pre-essential with the goal to maintain a strategic
distance from monetary emergencies by achieving budgetary strength. This
information of money related concerns helps in supporting the danger and
keeping up the steadiness in the budgetary framework. Bonte and Filipiak
(2012) composed that for a sound advancement strategy, better information
about the components of Financial Literacy and venture conduct is most
extreme significance.
Joseph (2011) expressed that road nourishment distributing in urban
territories of creating nations like Botswana keeps on being a wellspring of
jobs to numerous. The Government and applicable partners need to see
comprehensively the difficulties confronted by road nourishment sellers and
create intercessions that will empower road sustenance merchants to survive,
develop and contend in a dynamic business environment. The real
discoveries of the study demonstrated that road nourishment distributing is for
the most part a wellspring of salary e and a method for making livelihood for
the urban poor. The study prescribes that road nourishment distributing
should be lawfully perceived. The study would motivate arrangement creators

to think of particular enactment to advance road sustenance distributing

business in Botswana.
As per Horario (2013) in an offer to make the Philippines Asia's "heart"
of budgetary proficiency, a main protection firm has increased its crusade in
teaching Filipino youngsters to be more responsive with regards to cash
matters. In this way, no national overviews on budgetary proficiency have
been directed in the least salary nation gathering as characterized by the
World Bank is arranging reviews in Malawi, Zambia, and different nations. Be
that as it may, the national agent Fin Scope overviews, which concentrate
essentially on budgetary access and conduct.
CEEO (2013) specified that most merchants both sustenance and
stock offer from settled areas along the bustling historic points and
beguilement spaces, for example, parks, shopping centres and so forth,
without a slowdown structure, showing their items on fabric or plastic sheets
while others are portable sellers walk or bike through the roads as they offer.
A shopping centre in Davao City has started the behaviour of monetary
education sessions for intrigued dabawenyos as a major aspect of its backing
program. As indicated by NCCC Group of Companies correspondences
director Aileen Gajo (2013) this action falls under their NCCC Cares program
instruct general society on fundamental money related administration. Paying
down obligations quick with the goal that one can begin sparing immediately
was underlined in the session, additionally the significance of checking one's
advancement by looking into speculation records, spending plan and total
assets periodically. Similarly, BangkoSentralngPilipinas dispatched its national
venture named 'Cash Matters for children's at the BSP Davao office last July

7, 2015. As expressed by Colina (2015) the task means to empower

youngsters in figuring out how to spare cash in banks to make them all the
more monetarily proficient later on.
STATEMENT OF THE PROBLEM
The study was conducted to determine the financial literacy among the
street vendors in Panabo City; specifically it will answer the following
questions:
1. What is the profile of the vendors in terms of:
1.1 Age
1.2 Sex
1.3 Civil Satus
1.4 Educational attainment
2. What is the level of financial literacy of the street vendors in Panabo
City in terms of:
2.1 Education of Children
2.2 Medical Needs/Life Insurance
2.3 Retirement
3. Is there a significant difference on the financial literacy among street
vendors in Panabo City when the respondents analysed according to
their profile?

HYPOTHESIS
There is no significant difference of the financial literacy among street
vendors in Davao City when the respondents analysed according to
their profile.

Review Related Literature

According to OECD (2010) Financial Literacy is an issue of basic
significance as all make progress toward more straightforward, vigorous and
supportable economy, and a more pleasant society. Consequently, it is
essential that each individual is exceedingly proficient as far as budgetary
administration as Financial Literacy is the learning that each individual must
have keeping in mind the end goal to handle cash successfully. All the more
particularly, it alludes to the comprehension and aptitudes that permits a
person to settle on such choice inside their budgetary assets. Expanding the
monetary education of people living on low-salary is a viable technique to
diminish neediness on a manageable premise. As the road sellers doesn't
have a definite measure of salary regular it would be better for them to handle
their day by day wage successfully and being educated in taking care of cash
is a decent path in doing as such.
Road sellers constitute an essential section at the base of the pyramid
of the casual economy in urban communities. Low levels of instruction and
aptitudes, restricted access to formal credit and small scale endeavor bolster
compel merchants' capacity to get to developing business sector open doors.
Because of being chaotic and independently employed, road sellers and their
families frequently need in any linkage to standardized savings, welfare and
help plans and activities of the legislature. This makes road sellers and their
families powerless in troublesome times, or when they may require help for
unexpected costs. As what Monticone (2011) propose the significance of

exploring the level of money related proficiency, and its part in families'
monetary basic leadership.
Ramasawmy (2013) evaluated the level of attention to money related
proficiency among administration understudy. The study considered four basic
parts of money related proficiency viz. level and significance, definition and
speculations, requirements and measures. In light of the study performed, it
was examined that there was no effect of age, sexual orientation, dialect, race
and pay level on money related instruction. Capacity to settle on these
choices all the more mindfully would enhance the prosperity of the families.
Credit is an imperative necessity in road distributing, both maintain existing
action and to upscale it. Since merchants deal with a turnover premise, they
regularly take plan of action to high intrigue advance from non-institutional
loan specialists. In spite of the fact that they for the most part exhibit high
reimbursement limit, nonattendance of guarantee and firm domiciliary status
typically suspends them from institutional credit. Access to back is one of the
real limitations for being a piece of the casual division. Saha (2010) expressed
in the writing that merchants have rare assets for their exchange and need to
acquire credit. Costly advances from casual sources from casual hotspots for
working

capital,

problematic

settlement

administrations,

absence

of

mindfulness danger alleviation and annuity items are a portion of the issues
confronted by road merchants.
In any case, money related education is likewise lower among single
ladies accountable for their own funds. To reveal more insight into ladies'
money related proficiency, Mahdavi and Horton (2012) inspected graduated

class from a profoundly specific U.S. ladies' human sciences school. Indeed,
even in this skilled and accomplished gathering, ladies' money related
education

was

observed

to

be

low. As

such,

even

exceptionally

knowledgeable ladies are not especially monetarily educated, which could

suggest that ladies may gain money related proficiency uniquely in contrast to
men. By and by this open deliberation is a long way from shut, and extra
research will be required to better comprehend these watched sex contrasts
in money related proficiency.
Financial Literacy and Education. Nonconformist (2016) one of the
greatest costs confronted by American families is the expense of a
youngster's training. While grants and understudy credits may bear a great
part of the weight, it's undeniably urgent that families put cash aside in a
school reserve in arrangement for an understudy's developmental years. In
any case, it's regularly overpowering to deal with the best strategy by which to
start sparing. Guardians tend to erroneously accept that the most ideal
approach to spare is to open a record and make stores.
As per Paolo G. Montecillo (2015) Making enough cash to cover
essential costs include a great deal permitting individuals to have remaining
money toward the end of every month. Be that as it may, consequences of
another World Bank study propose instruction may have a noteworthy impact
in family unit money related security. The World Bank this week said its late
standard review on budgetary incorporation in the Philippines indicated most
Filipino families' salaries were eaten up by essential necessities consistently.
Of course, this speaks to a noteworthy obstacle in the measure of reserve

funds Filipino families can set aside. Around 55 percent of families said the
cash they were making each month scarcely secured costs. Of the families
that report sparing cash, just half keep their trade out banks. Aftereffects of
the World Bank overview on monetary consideration for the Philippines
reflected the result of a comparable evaluation made by the national bank this
year. In any case, the World Bank report takes its outcomes further, noticing
that respondents who say they spare routinely will probably have cash left
toward the end of consistently, less inclined to acquire, and less inclined to
overspending. Comes about cut crosswise over wage levels.
Proof by Van Rooij, Lusradi, and Alessie (2011) observes that essential
money related proficiency increments with need level of instruction and with
every quartile of riches. These outcomes is not by any stretch of the
imagination astounding on the grounds that a larger amount of instruction
incorporates coursework in financial aspects or back and relates with more
noteworthy salary and riches. An Increase like hood of development
instructive fulfilment, may add to a more extensive hole in learning between
buyers with and without higher education.
Youngsters' entrance to circumstance relies on upon accessible assets.
Low-salary families must cover numerous costs with constrained assets, and
family assets might be allotted to cover fundamental needs instead of put
resources into kids. Youngsters in families with more prominent parental
assets can get to open doors for positive results that are less inclined to be
accessible to kids in poorer families. These inconsistencies in access to
circumstance might be repeated crosswise over eras.

Youngmi Kim (2010)For families with less budgetary assets, monetary

hardship compels youngsters' fates, fundamentally by restricting access to the
advancement of human capital. Monetarily hindered families live with constant
budgetary hardship, and everyday survival regularly occupies parents
attention from their youngsters and debilitates them from making long haul
arrangements for their kids. Furthermore, given the vulnerability of future profit
in a defective capital business sector, families with restricted monetary assets
are more probable than their more affluent partners to experience the ill
effects of liquidity limitations, particularly when financing school instruction of
youngsters. Kids' entrance to circumstance relies on upon accessible assets.
Low-pay families must cover numerous costs with constrained assets, and
family assets might be distributed to cover essential needs instead of put
resources into kids. Kids in families with more noteworthy parental assets can
get to open doors for positive results that are more averse to be accessible to
kids in poorer families. These aberrations in access to circumstance might be
duplicated crosswise over eras.
Fonseca et al. (2010) and Van Rooij et al. (2011) lower proficiency
scores are huge for ladies who are under age 36,college taught, white profit a
higher pay, and most essentially the individuals who are as of now hitched.
Ladies who get to be dowagers increment their budgetary education scores
keeping in mind the end goal to settle on powerful choices all alone
Money related education and Medical Needs/Life Insurance. Among all
types of investment funds, extra security has an unmistakable element: it
grants to recognize long haul reserve funds from direct estate aims.
Supposed immaculate disaster protection, be it as an annuity, or as a singular

amount sum, which can be pulled back freely by the guaranteed, speaks to a
type of long haul reserve funds. Term protection, which endless supply of the
safeguarded, rather, separates a segment of reserve funds which obviously
goes just to beneficiaries. Protection then gives an interesting plausibility to
investigate in the meantime annuitization and single amount reserve funds for
the maturity and to keep them isolated from unadulterated endowment.
For the homemakers, it might happen that their work in the family is not
certainly adapted when taking money related choices at the family level. This
implies their human capital is not completely refreshing, and in this way their
interest for term protection is lower than would be reasonable, or lower than
the one of the working individual from the couple, all others meet. Last, ladies
are relied upon to be more inaccessible than men from budgetary markets
and matters, and less fiscally educated. This creates a desire with respect to
a lower interest for life coverage, both life and term, with respect to ladies.
Luciano and Rossi (2014) expressed that ladies take an interest less to the
protection market and, restrictive on support, pay littler premiums. Along these
lines, there is by all accounts a sexual orientation impact past the littler
budgetary education of ladies. Life coverage can be extremely compelling in
arranging productively sparing examples. It installs two sorts of items: i)
immaculate life coverage, which ensures a single amount (unadulterated
blessing) or an endless supply of the supporter and ii) term protection, which
certifications to recipients an installment if passing jumps out at the endorser.
Along these lines, while the principal sort speaks to immaculate investment
funds, the second uncovers the aim to give. Immaculate extra security thusly
is frequently of the "entire life" sort: it comprises of an amassing arrangement

which pays a single amount (or annuity) if the endorser is alive, at whatever
point he chooses to stop the agreement, and pays a singular amount to the
beneficiaries (whose sum is accurately known ahead of time) if there should
be an occurrence of supporter's demise.
In 2010, right around 33% of people matured 19 to 29 years were
without medical coverage in the United States, making it the age bunch with
the most astounding extent of uninsured. Truth be told, youthful grown-ups
are horribly over-spoke to amongst the uninsured, containing 13 million of the
47 million Americans who are without protection (National Conference of State
Legislatures 2011). Various variables likely add to the low take-up of
protection among youthful grown-ups, including passage level wages,
occupations without business supported protections, and high wellbeing
premiums that are unreasonably expensive for a gathering exactly toward the
begin of their vocations. Imperatively, youthful grown-ups structure a
moderately sound gathering that is less subject to getting therapeutic
administrations so the expense of protection may exceed the apparent
advantages.
Late government and state approach has looked to focus on the
generally low protection rates among youthful grown-ups. For instance, the
Affordable Care Act (ACA) of 2010 enacted an augmentation in ward scope
with the goal that people can now stay on their folks' protection arranges until
the age of 26. This law was basically by September, 2010. This strategy
comes at the heels of various state orders developing ward scope. It is still too
soon to assess the ramifications of these orders; in any case, a key inquiry at
the heart of these strategies is whether these scope expansions will influence

youthful grown-ups' wellbeing results and medicinal consideration use. On

one hand, if growing protection scope among youthful grown-ups prompts
more utilization of therapeutic consideration alongside wellbeing changes,
then these approaches might be defended on the grounds they upgrade the
welfare of a few people. Then again, if growing protection scope prompts no
distinctions in wellbeing among youthful people, then this raises doubt about
the welfare advantage of these arrangements. Moreover, if youthful grownups are presently expending more medicinal care yet there are no medical
advantages to augmented scope then this may propose moral peril is
influencing everything. Also, as noted by Anderson, Dobkins, and Gross
(2011), these studies are restricted in disengaging the causal impact of having
protection, versus not having protection, on the grounds that most people who
pick up protection through open projects are regularly safeguarded previously.
In this way, life coverage contracts, including unadulterated and term,
react productively to long haul investment funds needs of a family,
independent of the distinctive conditions of the world (in any condition
endorser). Since it is a proficient instrument to create riches in both conditions
of the world, a suitable blend of disaster protection (unadulterated and term)
opens family units individuals to little welfare variability. The life segment of
disaster protection contracts, if changed over into annuities, shields
individuals from the danger of life span, which could come as an inseparable
unit with an absence of assets, especially when seniority happens and
families are more powerless against stuns. Indeed, even separated from
entire life contracts, if estate aims are available, demise confirmation is an
ideal apparatus to kill the danger of after death riches mis-assignment. In the

event that a particular focus to hand down is chosen, the most effective
approach to acknowledge it is by subscribing a demise protection
The restraining impact of being a lady is huge in all determinations for
term and extra security. Ladies are more averse to safeguard. At any rate for
term protection, a conceivable clarification of this proof is that ladies don't
adapt their significance for the prosperity and the consistent course of the
family unit life and don't see their passing as a danger to secure against as
essential as the loss of their life partner. Note that here it doesn't recognize
families in which a man has the most noteworthy salary from family units in
which the most elevated wage originates from a lady. It was done on the
grounds that in both cases there would be a non-adapted measure of
administrations, chiefly care and housekeeping, which are non-adapted and
not caught in the review, and are all the time gave by ladies. The overview
says that, being the welfare of the family unit because of man or ladies, both
in adapted and adapted terms, female people, all others square with, don't
appear to see their passing as worth guaranteeing as men. The same impact
appears for disaster protection: ladies are requesting less protection than
men, in the living thing, i.e. as far as annuitized or non-annuitized investment
funds
Financial Literacy and Retirement. Putting something aside for seniority
is a standout amongst the most imperative choices people need to make over
their lifespan. Be that as it may, it is not simple to do as such when people are
not completely educated on the most proficient method to do about it. For the
individuals who are formally utilized, this society turns out to be simple as
most bosses give roads to them to spare inside the advantages bundle of

vocation. For the casual part anyway, this gets to be troublesome since a
large portion of the individuals are independently employed and getting to
such benefits happens infrequently. As indicated by ADE (2013) one of the
approaches to prepare such people is through satisfactory budgetary
education that will empower them settle on such basic choices freely. It has
been found that monetary education helps people arrangement for their
retirement satisfactorily yet endeavours to test this in the casual division has
been uncommon. Everybody longs for a retirement existence with heaps of
budgetary security, unwinding, genuine feelings of serenity and a decent
recess with grandchildren. In any case, this fantasy can turn into a reality just
in the event that one has spared enough amid their dynamic (more youthful)
working life; it takes great arranging and cautious assessment of one's
position at each stage.
Retirement arranging has been a methodical method for putting aside
assets (stores), business venture and time with the end goal of giving wage in
the maturity. The objective of social assurance is not insignificant survival, but
rather social consideration and conservation of human pride. A large portion of
the general population who have resigned now did not have the chance to
sufficiently spare for their seniority because of less money related instruments
accessible to them. Njuguna and Otsola (2011) expressed that Pension
money education empowers people to anticipate retirement, settle on
appropriate decisions on annuity items and contribute viably in administration
of their benefits plans. Sparing now for the future requires handling the
exchange off amongst spending and sparing. Mitchell and Chyn (2011) said
that to have the capacity to relieve budgetary dangers and seize open doors

in the complex monetary markets, buyers should be fiscally educated.

Individuals with lower levels of benefits account education depend on bosses,
collaborators and companions instead of cost basics when picking annuity
stores. As indicated by Kefela (2010) Financial learning is specifically
corresponded with self-advantageous budgetary conduct and in this way
money related training ought to take a wholesome point of view to incorporate
the essentials of fund since without comprehension the fundamental account
standards, annuity instruction would be inadequate. Kefela (2010) further
notes that members who are less monetarily educated will probably have
issues with obligation, are less inclined to spare, will probably take part in high
cost contracts and are more averse to put something aside for retirement and
by expansion are more averse to settle on better decisions for their annuity
plans
As noted in Njuguna (2012) casual division laborers are nearsighted,
and have high markdown rates, with the goal that benefits sparing is not
profoundly need. For every one of these reasons, people in the casual
division are left to pick all alone, are liable to spare satisfactorily or improperly,
through hazardous venture items. Njuguna (2012) in attempting to guarantee
more casual area specialists have a parkway to put something aside for
retirement, the Retirements Benefits Authority began the Mbao Pension Plan
outlined particularly for the casual division. Njuguna and Otsola (2011) tried to
decide the benefits account education levels and the variables that impact it
among individuals from word related retirement plans in Kenya. The study
found that benefits account proficiency varies altogether on the premise of
age, training level, sex, work experience, administration level, pay, annuity

arrangement outline, interest in past benefits fund education programs, region

of specialization and enrollment in a benefits arrangement board yet does not
contrast on the premise of conjugal status of people.
Gitari (2012) the specialist extended the study done by Njuguna and
Otsola (2011) to discover the relationship between monetary education and
retirement arranging. The study concentrated on the 787 enrolled benefits
plans in Nairobi. With a specimen of 158 people drawn from the benefits
plans, and utilizing various relapse on five variables in particular money
related proficiency, age, salary, conjugal status and instruction level against
the reliant variable, retirement arranging. The specialist discovered that
monetary proficiency, wage and the respondents level of training were
emphatically and decidedly connected with retirement arranging and factually
huge at customary levels (P esteem under 0.05). Curiously, age and conjugal
status were observed to be factually unimportant to retirement arranging.
McKenzie and Liersch (2011)stated that in the field of retirement funds,
characterized advantage annuities of boomers' folks were supplanted by
characterized

commitment

retirement

frameworks,

streamlining

the

accounting reports of bosses yet obliging workers to make sense of the

amount to spare, where to contribute, and how to make singular amount payouts last all through retirement . Adams and Rau (2011) close Perhaps a
standout amongst the most hearty discoveries over the writing is that money
related education (an intellectual variable ) assumes a key part in monetary
planning for retirement. Both test and non-test examines show that
understanding

the

fundamental

standards

of

sparing,

for

example,

progressive accrual, directly affects money related planning. This impact holds

in the wake of controlling for demographic qualities. As per Wagner (2015)

individuals for the most part need to make sense of the amount they
requirement for retirement and arrangement after some time to ensure they
sufficiently spare for retirement. On the off chance that they inaccurately
ascertain the amount they requirement for retirement, or don't actualize their
sparing arrangement, there is not so much an opportunity to backtrack and
cure the issue. In this manner the long haul practices are practices that
happen occasionally or have less chances to learn just through experience.
A study gauges how numeracy influences a man's learning of benefits
and Social Security and thusly their riches utilizing the 2004 Health and
Retirement Survey (Gustman, Steinmeier, and Tabatabai, 2012). Comes
about demonstrate that a man's level of numeracy is not a noteworthy
determinant of their insight into annuities and Social Security. Benefits and
Social Security learning is however identified with annuity riches. The reason
there may not be a connection amongst numeracy and learning of annuities
might be because of converse causalityinformation of benefits might
expand a man's numeracy.
Fonseca, et al. (2012) utilize the RAND American Life Panel (APL) to
meet around 2500 respondents intermittently about their experience,
budgetary duties, and money related education Results demonstrates that
inside family units men will probably spend significant time in monetary
choices which the creators believe is likely where men are picking up their
money related learning and why ladies have lower budgetary proficiency
levels. More seasoned ladies might be at even more a detriment since they
are less inclined to increase money related learning, have a tendency to live

more than men, and have little time to rectify their budgetary slip-ups. Lusardi
and Mitchell (2013) study 785 ladies utilizing the 2004 HRS to pick up
knowledge about how they settle on sparing choices. Just around 29 percent
of the ladies studied could answer every one of the three money related
education addresses accurately. Additionally, budgetary proficiency is
decidedly identified with retirement arranging. Strategies or training focusing
on ladies could affect their retirement arranging particularly as ladies have a
tendency to live more
Another study by Lusardi, Mitchell, and Curto (2012) looks at money
related proficiency for individuals matured 55+ utilizing the 2008 HRS.
Aftereffects of this study when all is said in done demonstrate that more
seasoned Americans are monetarily unskilled despite the fact that numerous
had settled on monetary choices over their lifetime. This may recommend that
more established grown-ups may not take in specific ideas through
experience. The creators did not intercede with money related instruction but
rather in light of these outcomes, budgetary training may need to happen
before individuals are more established and cover ideas that will most likely
be unable to learn through experience. While the youthful are defenceless
and need monetary training grown-ups are likewise needing money related
instruction as they face a considerably more mind boggling budgetary world
and experience the ill effects of an absence of time to settle money related
oversights as some are nearing retirement. As indicated by (Collins and
O'Rourke, 2010) individuals who are more certain are all the more monetarily
educated. Additionally, certainty and retirement arranging is sure and
essentially related even subsequent to controlling for genuine monetary

information. Having trust in one's capacity will expand retirement arranging

more than genuine learning about individual money. These discoveries, over
the four studies are in opposition to the perspective that trust in one's capacity
will thwart their budgetary practices. Ramifications of this exploration might be
to expand a man's trust in their own particular monetary basic leadership as a
feature of money related training.
Jappelli and Padula's (2011) said that less monetarily educated people
will be found in nations with more liberal Social Security benefits .For case,
individuals must conjecture their (and their partner's) survival probabilities,
speculation returns, annuity pay, and restorative and different uses. In
addition, a large portion of these money related choices are ideal occasions,
including when to resign and claim one's annuity and Social Security benefits.
Lusardi and Mitchell (2013) expressed that it would not astonish if money
related proficiency upgraded people groups' capacity to settle on these vital
choices sometime down the road. At the end of the day, money related
proficiency seems, by all accounts, to be exceptionally compelling in helping
more established family units outfit themselves with life span hazard
insurance in retirement.
Lusardi and Mitchell (2011) the new budgetary time will force a much
heavier weight on labourers and their family units than in the past to wind up
monetarily educated to figure out how to handle financial data and settle on
educated choices about family unit accounts. The individuals who made
arrangements for retirement collected three times as much riches as the
individuals who did not. Arranging has additionally been connected with higher
riches even among the better instructed

THEORETICAL/ CONCEPTUAL FRAMEWORK

The study is anchored on the theory of Subramaniam (2012) stated
that to achieve life goals, there must be a financial planning to be taken.
Preparing for ones finances is necessary to obtain and achieve these life
goals such as worry education of the children at the best schools and
colleges, worry free retirement and insurance. He further stated that financial
planning will enable something make less severe like medical emergencies or
unplanned expenditures without straining ones finances. For instance,
financial planning has an important role to play in helping individuals both in
upgrading and maintaining their lifestyle.

The conceptual framework shown in Figure 1, the main variable is the

financial literacy which can be determined by the following factors:
1. The education of the children which is classified as a goal setting,
decision making and a good planning into more control over expenses
of the education of the children.
2. Medical needs/Insurance which is classified as the setting for any
extenuating circumstances like sickness, hospitalization or accident.
3. Retirement which is classified in setting funds for future use by the time
of retirement age.
On the other hand, the moderating variable is the profile of the
respondent which can be determined by the following: 1.) age which is the
basis of their literacy; 2.) Sex which are the determinant of their financial
needs and priorities; 3.) Civil status which is also the determinants of their

financial needs and priorities; 4.) Educational attainment which is the basis
on the level of their financial knowledge.

Main Variable

Financial Literacy among Street Vendors

Education of Children
Medical Needs/Life Insurance
Retirement

Profile of the Respondents

Age
Sex
Civil Status
Educational Attainment

Moderating Variable

Figure 1. Drawing of Conceptual Framework

SIGNIFICANCE OF THE STUDY

The significance of this study is to provide additional information and
assistance to the various sectors of the society which are as follows;
Street Vendors. The street vendors can benefit from the study in terms
of proper budgeting of their income with regards to their expenses. They will
know the corresponding effect of their main expenses to their daily income.

Government Sector. OECD (2009).The BangkoSentralngPilipinas

along with the other government sector concern regarding financial literacy,
with its vision; financial education; building block for a stronger economy.
Future Researcher. The study will be beneficial to those will do the
research on the profile of the street vendors.
DEFINITION OF TERMS
Financial Literacy- the term refers to the ability to make informed
judgements and to take effective decisions regarding the use and manage of
money.
Street Vendors- People engage in business and selling their products
on the sidewalk or side streets.

Chapter 2
METHOD
This chapter presents the research methodology used in conducting
the study, specifically, the research design, research respondents, research
instruments, data gathering procedures, and the statistical treatment data.
Research Design

The researchers employ the descriptive correlation method in the study

descriptive correlation research involves collecting data in order to the
hypotheses or to answer questions concerning the current status of the
research subject, and it aims to determine the financial literacy of the street
vendors in Panabo City. Since the present study is concerned about financial
literacy of the street vendors, the descriptive method is the most suitable
method to use. In correlation collecting data in order to conclude whether and
to what level a relationship exist between two or more quantifiable variables
(Shuttleworth 2008). It describes the financial literacy of the street vendors in
Panabo City.
Research Respondents
The study focus on the financial literacy of the street vendors in
Panabo City. The researchers selected 30 street vendors to become the
respondents of the study. These selected street vendors give relevant
information about their financial literacy.

Research Instrument
The researchers used self-constructed questionnaires on the financial literacy
among selected street vendors in Panabo City.
Scale
5

Range
4.5-5.0

Descriptive level
Very High

Interpretation
Indicates that the provisions relating to
financial literacy symbolize in the item
is very well practiced and always

3.5-4.49

High

observed.
Indicates that the provisions relating to

financial literacy symbolize in the item

is very practiced and is relatively
3

2.5-3.49

Moderate

evident.
Indicates that the provisions relating to
financial literacy symbolize in the item

1.5-2.49

Low

is very practice and is often observed.

Indicates that the provisions relating to
financial literacy symbolize in the item
is very practiced and is not so much

1.0-1.49

Very Low

evident.
Indicates that the provisions relating to
financial literacy symbolize in the item
is not practiced or rarely present or
nonexistent.

Data Gathering Procedure

The following steps were undertaken in gathering the significant data of the
study:
1 Permission to conduct the study. The researchers prepared a letter and
were approve by the dean to conduct a research among street vendors
in Davao City.
2 Administration questionnaire. Upon the validation and approval, the
questionnaires were disseminated to the street vendors in Davao City.
3 Data Gathering. The questionnaires retrieve from the respondents and
the data were encoded in the computer.

Statistical Treatment of Data

The following are the tools to be use in analysis:
Frequency and Percentage will be used to determine the profile of
respondents.
Mean. Will be used to determine the financial literacy among street vendors.
Analysis of Variance will be used to test the significant differences among
street vendors on financial literacy when analysed according to their profile.

CHAPTER 3

PRESENTATION AND ANALYSIS OF FINDINGS

This chapter covers the presentation of gathered data.These data were
interpreted and analyzed through the use of statistics.The data were arranged
on the following order, the age of street vendors,thegender,civil status,
educational attainment,the education of the children, medical needs / life
insurance and their retirement.
Profile of the Street Vendors in Panabo City
Table 1 presented the profile of Street Vendors in Panabo City. A total
of 50 respondents participated in the study. 32 or 64% were females and 18
or 36% were males. Most of the respondents were in their late thirties which is
36-45 followed by 25-35 or 32% and the least number of respondents are
those whose age are 46-55 and 56-65 who are both 6%.Apparently this
shows that most street vendors in Panabo City are females who are in their
late thirties.
Among the 50 respondents, there are 46 or 92% of them are married
and 4 or 8% are still single. Most of them are high school graduate/level which
is 58% of the total respondents then 11 of them were elementary
graduate/level which 22% and 10 or 20% are college graduate/ level.

Table I

Profile of the Respondent

Indicators

Frequency

Percent

16
22
6
6
50

16%
22%
6%
6%
50%

18
32
50

36%
64%
100%

4
46
50

8%
92%
100%

11
29
10
50

22%
58%
20%
100%

Age
25-35
36-45
46-55
56-65
Total
Sex
Male
Female
Total
Civil Status
Single
Married
Total
Educational Attainment
Elementary
High School
College
Total

Level of Financial Literacy of the Street Vendors in Panabo City when

analyzed their profile in terms of Education of the Children
Table 2 presented the level of financial literacy of street vendors in
Panabo City in terms of the education of children. As a whole, there was a fair
level of financial literacy with regards to the education of their children
indicated by a mean of 3.28 described as moderate level of financial literacy.
The result shows that a street vendor still plan for the education of their
children by a mean of 3.28 described as moderate level of financial literacy.

Also, the street vendors consider setting aside money for the unexpected
expenses of the education of their children by a mean of 3.28 described as
moderate level of financial literacy. The respondents had an idea of having
funds to support the education of their children by a mean of 3.30 described
as moderate level of financial literacy. Aside from that they have an interest of
applying educational scholarship for their children by a mean of 3.24
described as moderate level of financial literacy It was observed that they also
consider saving money for the education of their children by a mean of 3.28
described as moderate level.
According to Maverick (2016) one of the greatest costs confronted by
American families is the expense of a youngster's training. While grants and
understudy credits may bear a great part of the weight, it's undeniably urgent
that families put cash aside in a school reserve in arrangement for an
understudy's developmental years. In any case, it's regularly overpowering to
deal with the best strategy by which to start sparing. Guardians tend to
erroneously accept that the most ideal approach to spare is to open a record
and make stores.

Table 2
Level of Financial Literacy of the Street Vendors in Panabo City in terms
of Education of the Children.
Nos.

Indicators

Education plan for the children.

1.23
(Plano para saedukasyonsamgaanak.)
Availability
of
funds
unexpected 1.29
expenses for education.
(Kwarta para samoabotaynagastohan
para saedukasyon.)
Money in order to support childrens 1.30
education.

SD

Mean
3.28

Descriptive
equivalent
Moderate

3.28

Moderate

3.30

Moderate

4
5

(Kwartaikasuportasapageskwelasamgabata.)
Apply for scholarship program.
1.27
(Aplayog scholarship program.)
Have savings for children education.
1.31
(Adunaypundongkwarta
para
saedukasyonsamgaanak.)
Mean
1.18

3.24

Moderate

3.28

Moderate

3.28

Moderate

Level of Financial Literacy of the Street Vendors in Panabo City when

analyzed their profile in terms of Medical Needs/Life Insurance.
Table 3 presented the level of financial literacy of street vendors in
Panabo City in terms of their Medical Needs/Life Insurance. As a whole, there
was a fair level of financial literacy with regards to their Medical Needs/Life
Insurance by a mean of 3.28 described as moderate level of financial literacy.
The table shows that the street vendors are moderately prepared in
terms of the available funds for accidents which is shown by a mean of 2.92.A
mean of 3.16 also shows that they are moderately prepared for protection
purposes that meet the cost of medication. Also, they are averagely
considering the idea of having life Insurance coverage for health and
accidents shown by a mean of 3.04 illustrated as moderate level of financial
literacy. They are also averagely prepared of setting aside funds for the future
medical needs of any of the family member by a mean of 3.12 described as
moderate level of financial literacy. Aside from that to lessen their expenses

they consider going to health centre which is shown by a mean of 3.14

described as moderate level of financial level of financial literacy.
Late government and state approach has looked to focus on the
generally low protection rates among youthful grown-ups. For instance, the
Affordable Care Act (ACA) of 2010 enacted an augmentation in ward scope
with the goal that people can now stay on their folks' protection arranges until
the age of 26. This law was basically by September, 2010. This strategy
comes at the heels of various state orders developing ward scope. It is still too
soon to assess the ramifications of these orders; in any case, a key inquiry at
the heart of these strategies is whether these scope expansions will influence
youthful grown-ups' wellbeing results and medicinal consideration use. On
one hand, if growing protection scope among youthful grown-ups prompts
more utilization of therapeutic consideration alongside wellbeing changes,
then these approaches might be defended on the grounds they upgrade the
welfare of a few people. Then again, if growing protection scope prompts no
distinctions in wellbeing among youthful people, then this raises doubt about
the welfare advantage of these arrangements. Moreover, if youthful grownups are presently expending more medicinal care yet there are no medical
advantages to augmented scope then this may propose moral peril is
influencing everything. Also, as noted by Anderson, Dobkins, and Gross
(2011), these studies are restricted in disengaging the causal impact of having
protection, versus not having protection, on the grounds that most people who
pick up protection through open projects are regularly safeguarded previously.

Table 3
Level of Financial Literacy among Street Vendors in Panabo City in
terms of Medical Needs/Life Insurance.
Nos. Indicators
1
2
3

4
5

Available money for accidents.

(Gahinngakwartainkasodunaydisgrasya.)
Protection purposes to meet cost for medication.
(Sa
panalipudsakatuyuannganaay
pang
palitogtambal.)
Provide Life Insurance coverage for health and
accidents.
(Life Insurance para mabawassagastohan kung
inkaso.)
Setting aside money for future medical needs.
(Gahinngakwartainkasonaaymagkasakitsapamilya
.)
Going to health centers to lessen expenses.
(Pag-adtosaHealth
Centers
para
mabawasanangmagasto.)
Mean

SD

Mean Descriptiv
e
Equivalent
1.32 2.92 Moderate
1.36 3.16

Moderate

1.38 3.04

Moderate

1.36 3.12

Moderate

1.29 3.14

moderate

1.28 3.07

Moderate

Level of Financial Literacy of the Street Vendors in Panabo City when

analyzed their profile in terms of Retirement
Table 4 presented the level of financial literacy of street vendors in
Panabo City in terms of their retirement. As a whole, there was a fair level of
financial literacy with regards to their retirement by a mean of 3.16 described
as moderate level of financial literacy.
The result shows that the street vendors consider saving money but
not highly prepared for future use upon retirement by a mean of 3.16
illustrated as moderate level of financial literacy. Also, having alternative
sources upon their retirement were averagely plan by a mean of 3.14
described as moderate level of financial literacy. The table also shows that
they are averagely prepared for another source of funds for their future needs
and wants at the time they retire by a mean of 3.10 described as moderate
level of financial literacy. They also consider of saving funds to finance their
necessities at the time they retire it is shown by a mean of 3.12 illustrated as
moderate level of financial literacy. Aside from that they are moderately
prepared in terms of funds that will be received by their children if ever
unexpected circumstances will happen which is shown by a mean of 3.06
illustrated as moderate level of financial literacy .

Putting something aside for seniority is a standout amongst the

most imperative choices people need to make over their lifespan. Be that as it
may, it is not simple to do as such when people are not completely educated
on the most proficient method to do about it. For the individuals who are
formally utilized, this society turns out to be simple as most bosses give roads
to them to spare inside the advantages bundle of vocation. For the casual part
anyway, this gets to be troublesome since a large portion of the individuals
are independently employed and getting to such benefits happens
infrequently. As indicated by ADE (2013) one of the approaches to prepare
such people is through satisfactory budgetary education that will empower
them settle on such basic choices freely. It has been found that monetary
education helps people arrangement for their retirement satisfactorily yet
endeavors to test this in the casual division has been uncommon. Everybody
longs for a retirement existence with heaps of budgetary security, unwinding,
genuine feelings of serenity and a decent recess with grandchildren. In any
case, this fantasy can turn into a reality just in the event that one has spared
enough amid their dynamic (more youthful) working life; it takes great
arranging and cautious assessment of one's position at each stage.

Table 4
Level of Financial Literacy among Street Vendors in Panabo City in
terms of Retirement.
Nos
.

Indicators

SD

Mea
n

Have a savings for future use upon retirement.

(Pundongakwarta
para
saumaabotsapagretiro.)
Have alternative sources for future needs
upon retirement.
(Laing kakitaanalangsaumaabotnapagretiro.)
Have source of income for future needs and
wants.
(Adunaykakuhaanugkwartaalangsaumaabot.)
Have enough savings for necessities upon
retirement.
(Pundoalangsapanginahanglanpagmoretirona.
)
Children will receive benefits for unexpected
circumstances.
(Dunaymadawatnabenipisyoangmgaanaksa di
damhanamgapanghitabo.)
Mean

1.3
8

3.16

Descriptiv
e
Equivalent
Moderate

1.3
6

3.14

Moderate

1.2
3

3.10

Moderate

1.3
0

3.12

Moderate

1.3
3

3.06

moderate

1.2
4

3.12

Moderate

2
3
4

Significance of the Difference in the level of financial literacy among

street vendors in Panabo City when analyzed in terms of Age
Presented in table 5 is a test of differentiation to find out the deviation
in the level of financial literacy among street vendors in Panabo City when
analyzed in terms of Age. When tested in terms of education of children,
medical needs / life insurance and retirement no statistical difference was
detected. Hence, the level of financial literacy in terms of sex did not vary.
Gitari (2012) the specialist extended the study done by Njuguna and
Otsola (2011) to discover the relationship between monetary education and
retirement arranging. The study concentrated on the 787 enrolled benefits
plans in Nairobi. With a specimen of 158 people drawn from the benefits
plans, and utilizing various relapse on five variables in particular money
related proficiency, age, salary, conjugal status and instruction level against
the reliant variable, retirement arranging. The specialist discovered that
monetary proficiency, wage and the respondents level of training were
emphatically and decidedly connected with retirement arranging and factually
huge at customary levels (P esteem under 0.05). Curiously, age and conjugal
status were observed to be factually unimportant to retirement arranging.

Table 5
Significance of the Difference on the Financial Literacy among the Street
Vendors in Panabo City when analysed by Age.

Indicato
rs

25-35
SD
Mea
n

Educati
on
of 1.32
the
children
Medical
Needs/ 1.56
Life
Insuran
ce
Retirem 1.51
ent

36-45
SD Mea
n

46-55
SD Mea
n

56-65
SD Mea
n

3.26

1.1
5

3.23

0.8
1

3.90

0.8
5

2.87

1.1
2

3.09

0.5
9

3.93

2.76

1.0
5

3.26

0.6
8

3.90

FValu
e

PValu
e

Decisi
on
Ho

2.00

1.38
3

0.26
0

Accept

0.8
5

2.00

1.58
5

0.20
6

Accept

1.2
7

2.30
1

1.76
9

0.16
6

Accept

Significance of the Difference in the level of financial literacy among

street vendors in Panabo City when analyzed in terms of sex
Presented in table 6 is a test of differentiation to find out the deviation
in the level of financial literacy among street vendors in Panabo City when
analyzed in terms of sex. When tested in terms of education of children,
medical needs / life insurance and retirement no statistical difference was
detected. Hence, the level of financial literacy in terms of sex did not vary.
Hsu (2011) suggested that some sex contrasts might be normal, with
specialization of work inside the family driving wedded ladies to develop
money related information just late in life (near widowhood). In any case,
monetary proficiency is additionally lower among single ladies accountable for
their own funds. To reveal more insight into ladies' money related proficiency,
Mahdavi and Horton (2012) analyzed graduated class from a very specific
U.S. ladies' human sciences school. Indeed, even in this skilled and
accomplished gathering, ladies' budgetary education was observed to be low.
As such, even exceptionally accomplished ladies are not especially fiscally
educated, which could infer that ladies may get monetary proficiency uniquely
in contrast to men. In any case this open deliberation is a long way from shut,
and extra research will be required to better comprehend these watched sex
contrasts in money related education.

Table 6
Significance of the Difference on the Financial Literacy among the Street
Vendors in Panabo City when analyzed by Sex.
Male

Female

Indicators
SD
Education 1.24
of
the
Children
Medical
1.32
Needs/life
Insurance
Retiremen 1.40
t

tValue

PValue

Decisio
n
Ho

Mean
3.24

SD
1.67

Mean
3.29

0.020

0.889

Accept

3.26

1.27

2.97

0.586

0.448

Accept

3.03

1.17

3.16

0.122

0.728

Accept

Significance of the Difference in the level of Financial literacy among

street vendors in Panabo City when analyzed in terms of civil status
Presented in table 7 is a test of differentiation to find out the deviation
in the level of financial literacy among street vendors in Panabo City when
analyzed in terms of Civil Status. When tested in terms of education of
children, medical needs / life insurance and retirement a significant difference
was detected. Hence, the level of financial literacy in terms of civil status
varies.
(Fonseca et al. 2010; Van Rooij et al. 2011) lower proficiency scores
are huge for ladies who are under age 36,college educated, white profit a
higher pay, and most essentially the individuals who are presently hitched.
Obviously a man who is single evidently would not think or plan ahead of time
about the instruction of their kids , Medical needs/protection or even their
retirement since they were at the phase of intuition relaxation or things that
would make the most of their life as a solitary not at all like when a man got to
be hitched his/her viewpoint in life changes on the grounds that in that stage a
man will as of now think things that could profit his/her family or will think the
fate of his/her kids. Ladies who get to be dowagers increment their money
related proficiency scores so as to settle on powerful choices all alone. In any
case, money related proficiency is likewise lower among single ladies
accountable for their own funds.

Table 7
Significance of the Difference on the Financial Literacy among the Street
Vendors in Panabo City when analysed by Civil Status.
Single

Married

Indicators
SD
Education 1.33
of
the
Children
Medical
0.66
Needs/life
Insurance
Retiremen 0.87
t
.

t-Value

Decisio
P-Value n
Ho

Mean
2.10

SD
1.12

Mean
3.38

4.645

0.036

Reject

1.65

1.25

3.19

5.884

0.019

Reject

1.85

1.22

3.23

4.856

0.032

Reject

Significance of the Difference in the level of financial literacy among

street vendors in Panabo City when analysed in terms of educational
attainment
Presented in table 8 is a test of differentiation to find out the deviation
in the level of financial literacy among street vendors in Panabo City when
analysed in terms of educational attainment. When tested in terms of
education of children, medical needs / life insurance a significant difference
was detected and no statistical difference was detected in terms of retirement.
Hence, the level of financial literacy in terms of educational attainment did
varies.
As indicated by Kefela (2010) Financial information is straightforwardly
connected with self-advantageous budgetary conduct and in this way money
related training ought to take a wholesome point of view to incorporate the
essentials of account since without comprehension the fundamental account
standards, benefits instruction would be insufficient. Kefela (2010) further
notes that members who are less monetarily educated will probably have
issues with obligation, are more averse to spare, will probably participate in
high cost contracts and are less inclined to spare.
Proof by Van Rooij, Lusradi, and Alessie (2011) observes that essential
budgetary proficiency increments with need level of instruction and with every
quartile of riches. These outcomes is not so much astounding in light of the
fact that a larger amount of instruction incorporates coursework in financial
matters or fund and associates with more noteworthy wage and riches. An
Increase likehood of development instructive fulfillment, may add to a more

extensive hole in learning between purchasers with and without higher

education.

Table 8
Significance of the Difference on the Financial Literacy among the Street
Vendors in Panabo City when analyzed by Educational
Attainment.
Elementary

High School

College
FPDecisio
Value Value n
Ho

Indicators
SD
1.25

Education
of
the
Children
Medical
1.50
Needs/life
Insurance
Retiremen 1.45
t

Mean SD
2.47 1.11

Mean S D
3.28 0.62

Mean
4.14 6.387 0.004 Reject

2.40

1.19

3.05

0.89

3.86

3.805 0.029 Reject

2.40

1.11

3.21

1.13

3.64

3.015 0.059 Accept

CHAPTER 4
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
This

chapter

presents

the

summary

of

findings,

conclusions

and

recommendations on the study entitled financial literacy among street vendors

in Panabo city.

Summary of Findings
Based on the data presented, the following findings were:
1. Profile of the Respondent. Most of the respondents were in their late
thirties which are 36-45 followed by 25-35 or 32% and the least number
of respondents are those whose age are 46-55 and 56-65 who are both
6%.32 or 64% were females and 18 or 36% were males. 46 or 92% of
them are married and 4 or 8% are still single. Most of them are high
school graduate/level which is 58% then 11 or 22% of them were
elementary graduate/level and 10 or 20% are college graduate/ level.
2. Financial Literacy. The level of Financial Literacy of the street vendors
in Panabo City in terms of education of the children gathered a mean of
3.28 described as moderately prepared. A mean of 3.12 were indicated
in terms Retirement described as moderately prepared and a mean of
3.07 were indicated in terms of medical need/Insurance described as
moderately prepared.

3. Test of Significant difference. Significance of the difference on the

Literacy among the street vendors in Panabo City when analyzed by
age had a P-value of 0.186 wherein null hypothesis is accepted and a
P-value 0.913 was indicated in terms of sexwhich made the null
hypothesis be accepted. A P-value of 0.018 was indicated in civil
Status wherein null hypothesis is rejected. With regards of the
educational attainment a P-value of 0.012 was indicated and null
hypothesis is rejected.

Conclusions
Based on the findings presented, the following conclusions are draw
1. Financial Literacy proxy measures is moderately prepared among
street vendors in Panabo City especially on education of their
children.
2. There is no significant difference among street vendors in Panabo
City when analysed according to Sex and Age.
3. There is a significant difference among street vendors in Panabo
City when analysed according to civil status and educational
attainment on their financial literacy proxy measures.

Recommendations

Based on the conclusion above, the following recommendations are

offered.
1. It is recommended that in all level of education or even in all courses
on college financial literacy education should be teaches as this is
important to enhance or to improve the level of their literacy in terms of
handling finances.
2. It is recommended that the government should conduct different
seminars for the informal sector to enhance their financial literacy
because as a vendor handling finances is important and since they
dont have an employer to pursue this seminar it is expected that the
government will do this.
3. It is recommended that the seminar to be conducted are not just focus
on the married people in order that even single person will have a high
financial literacy.
4. It is recommended by the researcher that future research on this topic
could be done to expand the survey to schools. It could be better to
have a different survey in different geographic area.