Introduction

Financial Literacy is one of the major problems in our society because of financial

management which an individual performs to budget in personal finances. This discusses

about how it will affect financial literacy to financial management to test the ability of a

student having an online business to their knowledge about money management,

budgeting and also how they save their money in case they lack of resources.

Financial literacy has received an increased attention since the global financial

crisis and the literature confirms that it is correlated with personal management. Financial

Literacy has an effect to the Financial Management to set the skills and knowledge how a

person, can manage the money and how can you control organize your own business. To

the students who have online business in social world they can maximize the creation of

products that would be released online through the help of the customer suggestion,

wants and needs. To the future researcher they can gain some knowledge, ideas and

findings if they really want to come up with the same research or a similar to this topic.

Financial literacy has an effect to the respondent by having a knowledge through

financial problem to their own business. Respondent should know what the financial

management to make their business profitable. Financial management involves the

efficient and effective management of monetary resources. This is concerned with

procurement of funds and their effective utilization (Hilgert and Hogarth, 2003). In this

regard, personal financial management encompasses how individuals or family units

procure, budget, save and expend money over a period of time taking cognizance of

various financial risk and future life events. The most important aspect of personal
financial management is financial planning which involves a dynamic process of regular

monitoring and re-evaluation of personal finance (Brown et al., 2005).

Financial literacy and financial management can be related to those students who

have online business. Students have online business learn how to manage their money

from the profit that they gain on their business. Managing an online business is not easy

because in online business you will have a lot of competitors, customers will look for

other seller who will also fulfill their needs and wants. Budgeting is the important part of

planning, like an online business you need to plan the financial of your income and

expenses. Students who have online business manage their money or profit that they

gained from business through budgeting, for their daily allowance.

Background of the study

Financial Literacy is a possession of the set of skills and knowledge that allows

an individual to make inform and make effective decision with all of the financial

resources. People with approriate financial literacy make better to financial decisions and

can manage the money better than to those people without knowing financial literacy. If

you have a skill to understand financial literacy you are a person that is ready to face

financial management. A financial literate person know how to manage their profit. Now

a days if you can’t manage your online business it will be down .

Financial literacy is an importantelement of economic and financial stability both

for the individual economy. Over the past few decades financial literacy has became

increasingly important concept, as research has linked higher financial literacy with better

day to day financial management skills. Although understanding stats and facts about

money is great, no one has truly graped financial literacy until they can regularly do the

right thingswith money thatlead to the right financial outcomes.

This research is conducted to know if ABM students are really the one’s who is

well educated about financial management in terms of managing their online business

and budgeting their financial expenses among other strand.

Also we conducted this study to find out if the rumors of the students are true that only

the ABM students are the one who are good in terms of managing financial issues

This research is establish to prove that not only ABM students are the who has

learning in terms of financial management and literacy.

Statement of the Problem

In this chapter, the researcher wants to know the learning of the student about

budgeting their own money.

1. What is the factors having online business in terms of:

 Product

 Profit

 Capital

 Expenses

 Income

2. How much capital is needed for online business?

2.1.How many percentage does the owner get from the profit gained of the

business?

2.2.Does having online business help the owner to have enough money for the

personal wants and needs?

3. What are the struggles that can be encounter on having online business?

3.1. Does the problems help business to grow?

3.2.How much time needed to spend on online business?

4. What are the benefits of being a financially literate person on having online

business?
Scope and Delimitation

The focus of this study is to know the effects of financial literacy to financial

management of the students in their online business.The researchers has the limitation for

only 30 Grade 12 students of Accountancy Business Management (ABM). In order to

determine the actual effects of our study to the respondents. The design that use in this

study is descriptive design and survey. Has a limitation between financial literacy to

financial management on online business.

Significance of the Study

This study will be of great benefit to the following:

 Education - For them to know how would they help the society in improving the

financial management of a person.

 Future researcher - To the future research the importance of this study is that

they can get some informations from this study. They can get some ideas about

the study if they are going to conduct the same research to ours.

 Online Business Owner - this to help them learn more on how to manage well

their business profits.

 Students - Earning their own money will help them to buy what they need in

school and to pay expenses on their own without giving stress to their parents.

They will also learn how to be an independent and how to manage their own

money.

 Teacher – To teach easily because of having prior knowledge and having an

experience to learn. And to be able to know what kind of business of their

students used this business as a sideline especially to those who have a financial

problem.

 University - This study will help the university to have an insight information

regarding saving money to orient both teachers and students.

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 Theoretical Framework

. Factors of Online Business and its Effects

Factors of Online Business Effects

Profit Accessible

Fulfilled the needs and

Capital
wants

Expenses Time Management

Income Low Grades

Product Self Confidence

This study is about the factors and effect of online business that the students gain when

they have online business while they are studying. The factors has a profit for the

students especially who have a parents that can’t support their expenses, profit will help

them to save money and buy what they needs in school and their next products to sell

online. Capital can be fund or material need to start a business. Expenses the cost
required for something’s. the money spent by a online business. Income is what you get

in online business. Product is a result of an action or process, it is the goods that you sell

online, the reason why you have income. One of the effects of having online business is

Accessible because easy to talk to their client/customers. Fulfilled the needs and wants

this is one factor of the students who has a online business to have a extra income and get

their needs in school expenses and their wants. Time management the students have a

onlibne business must have a time management for them to organize on what to do first

in posting their products, answering the question of the customers. It will also help to

them to manage their time for the school stuffs. Low grades students with online business

has a possible drop their grades because they are busy to handle their online business and

to study. Self- confidence is one of the important and the effscts in online business and in

selling skills depend on the level of sel- confidence

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Definition of terms

 Financial literacy Financial literacy is the education and understanding of

various financial areas including topics related to managing personal finance,

money and investing.

 Financial management Financial Management means planning, organizing,

directing and controlling the financial activities such as procurement and

utilization of funds of the enterprise. It means applying general management

principles to financial resources of the enterprise.

 Financial literate person Having some core data about money is a good start,

but being truly financial literate requires even more. A person who is financially

literate also can apply the information he has, resulting in monetary gain.

 Financial resources financial resources are from an economic perspective part

of the assets (property) of the organization.

 Budgeting is the process of preparing detailed projections of future amounts.

 Money management is the process of expense tracking, investing, budgeting,

banking and evaluating taxes of ones money.

 Personal finances is the process of planning and managing personal financial

activities.
 Conceptual Framework

The researchers decide to do survey and descriptive research design about the

“Effects of financial literacy to financial management of Arellano University Senior High

School students to their online business.” Research Paradigm

 The researcher gather

 Financial Literacy of
the students have online  Analyze the effect of
financial management financial literacy to
business in Accountancy
of Arellano University financial management in
Business and
Senior High School online business
Management
Students to their 
 The researcher use
Online Business.
descriptive design

INPUT PROCESS OUTPUT