Chapter III

METHODOLOGY

This chapter presents the research methods used by the researchers. It

gives details on the development of the research in a step-by-step manner. It

includes the research design, research locale, research respondents and data

gathering, research instruments and the statistical tools used for the

interpretation and analysis of the data.

Research Design

This study used a descriptive-comparative type of research that

determines the significant difference between the financial literacy of the

minimum wage earners and the non-minimum wage earners within the vicinity of

General Santos City. Descriptive-comparative is a type of research that has

variables that are similar with each other but also has a difference in some

aspects; it aims to explain or describe the invariances of the variables (Routio,

2007). With this type of research design, it showed the type of research which

assesses the individuals’ financial literacy regarding with the financial aspects

that every individual was facing, these financial aspects includes the budgeting,

investing and saving of an individual based on his/her monthly allocated salary.

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Input Process Output

The difference
between the
• Questionnaire
financial literacy of
• Data Gathering
Financial literacy of: an individual based
• Statistical
on their monthly
Treatment
• Minimum Wage allocated salary as
• Presentation of
Earners they are classified
Data
• Non-minimum whether as
• Interpretation
Wage Earners minimum wage
and Data
earners and non-
Analysis
minimum wage
earners.

Figure 3.
Research Design
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Research Locale

This study was conducted within the vicinity of General Santos City,

Province of South Cotabato, Region XII – SOCCSKSARGEN. General Santos

City is classified as one of the highly urbanized first-class cities in the Philippines

with at most 594, 446 inhabitants as per the census conducted last 2015 which

become the 15th most populous city in the country that makes the city as the

center of commerce and industry of the region.

Figure 4.
Map of General Santos City

The researchers chose General Santos City as the locale of the study,

since it is a city that has diverse types of businesses which subsequently offers

numerous numbers of jobs and employment. According to the census of

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Philippine Information Agency in of 2015, the total employment is about 59% of

the whole population that are employed to various businesses or any industry

type. This mainly suggest that the city has a sufficient number of employed

individuals to allocate the researchers’ desirable number of samples (Philippine

Information Agency, 2019).

The locale of the study determined the city’s financial progress since

employment is the major factor that would affect the economy of a particular

place. Hence, financial literacy of an individual is widely affected by the locale

where an individual is settling. This would also help in determining the

differences of an individuals’ financial literacy in terms of budgeting, investing,

and saving. Furthermore, General Santos City is also attainable and accessible

since it is within the residency of the researchers, thus it will be easier for the

researchers to locate and conduct their study.

Research Respondents

The respondents of the study were the workers employed inside the

vicinity of General Santos City. Minimum wage earners and non-minimum wage

earners are the primary participants of this study. The researchers determined

their respondents through purposive sampling wherein the samples are selected

based on the purpose of their study. Furthermore, the sampling method is also

known as judgmental, selective or subjective sampling which includes the

classification of the respondents based on the level of their monthly salary to be

classified whether it is a minimum wage earner or a non-minimum wage earner.

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Maximum variations, a type of purposive sampling will be used by the

researchers to provide a diverse range of cases relevant to minimum wage

earners as well as to non-minimum wage earners (Crossman, 2018). The

researchers used this type of sampling distribution to collect samples exclusively

based on the characteristics of the respondents that are needed for the study.

The total samples of respondents are 384 chosen by the researcher. This

was divided into two; one hundred ninety- two (192) samples under minimum

wage earners and one hundred ninety- two (192) samples under non-minimum

wage earners.

The samples were gathered with using sampling size formula for

estimating proportions with known population to determine the appropriate

sample size for estimating the number of respondents.

For this study, the respondents were targeted as they are the mainly

affected by the price increase in the market and as they were the one who has

an ability to make economic financial decisions pertaining money matters which

caught the respondents’ attention to conduct the study. This eagerly induces

researchers to enlighten and to aware their minds about the monetary refinement

both minimum and non-minimum wage earners. Below is the table on how the

researchers were classified as respondents based on their allocated monthly

salary.
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Workers
Minimum Wage Earner Non-minimum Wage Earner
• Has a daily wage of Php • In a management or professional
295 to Php 311 position
• Works in agricultural, non- • Workers under:
agricultural, retail, and a. Law/Legal services
services establishments b. Public
• Domestic workers (e.g. relations/Communication
househelper, baby- c. Journalism
sitter/nanny(yaya), cook, d. Advertising/Media planning
gardener, driver, laundry e. Training and development
person, construction f. Information technology
laborers, etc.) g. Human resource
h. Marketing/Business
(National Wages and Productivity Management
Commission, 2016). i. Customer services
j. Quality control/Assurance

(Rappler, 2018)

Table 1.
Research Respondents’ Classification

Research Instrument

A modified questionnaire adapted from the study of Dayot, et al. (n.d.) was

used by the researchers to collect the data. The researchers gathered

information and data using the research questionnaire.

The test questionnaire has two parts: part one, it is used to determine the

nature of the respondents whether they are a minimum wage earner and/or non-

minimum wage earners so that the researchers will be able to have an accurate

picture about the sample.

Part two of the questionnaire uses a Likerts’ scale type of survey. The

survey questionnaire was composed of declarative statements which would

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assess the level of financial literacy of an individual under budgeting, investing

and saving. The researchers used the Likerts’ Scale that would ask the

respondents’ frequency of applying the situations mentioned in the self-made

survey questionnaire which shows the respondents’ perception. It is composed of

five statements in each of the dependent financial aspects what will be

answerably by the level of frequency. The respondents rated themselves based

on the frequency assigned by the researches, these are as follows; never, rarely,

sometimes, usually and always. The researcher will use the Likerts’ Scale that

would ask the respondents’ frequency of applying the situations mentioned in the

self-made survey questionnaire which shows the respondents’ perception (Tracy,

2017). The table below shows the scale showing the assigned values of the

frequency levels as corresponding answer of the respondents to the

questionnaire.

Scale Label
5 Always
4 Usually
3 Sometimes
2 Rarely
1 Never

Table 2.
Likert Scale

Data Gathering Procedure

The researchers explained the step-by-step manner of the course of

action of the study through words to assemble the necessary data for the study.

This also broadly explained the sequences found in Figure 5.

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Identification of Problem

Review of Related Literature and

Studies

Methodology

Analysis and Interpretation of Data

Summary of the Study

Figure 5.
Procedural Flowchart

Identification of the Problem. First, the researchers identified and

created a statement of the problem. Objectives of the study were also

established together with the study’s significance and scope and delimitation.

Review of Related Literature and Studies. Second, the researchers

gathered information from literatures and studies that are related to the study to

back up its findings and results.

Methodology. Third, the researchers conducted the study by identifying

the respondents, adapting and modifying a questionnaire, and choosing of

appropriate research instruments and statistical treatments.

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Analysis and Interpretation of Data. Fourth, the researchers tallied the

gathered data and then consulted it to a credible statistician. Results of the

gathered data were analyzed and interpreted.

Summary of the Study. Lastly, the researchers finished the study by

providing an overall finding of the results, conclusion, and recommendation.

Statistical Tool

The gathered data were treated using the following statistical treatment:

weighted mean, independent t-test and Levene’s test.

To answer the sub-problems 1 and 2, the researchers used weighted

mean in determining the value and measurement of the level of financial literacy

of a minimum and non-minimum wage earners. Weighted mean is a kind of

average that instead of each data point contributing equally to final mean,some

data points contribute more “weight” than others (Statistics How To, n.d.). From

these, the mean of all the sub variables from each subset of the questionnaire

will be computed again.

After getting the weighted mean for each subset, the researchers

determined the level of financial literacy as a whole using the following scale:

Weighted Mean Range Interpretation

1.00 – 1.80 Very Low

1.81 – 2.60 Low

2.61 – 3.40 Moderate

3.41 – 4.20 High

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Furthermore, to answer problem 3, the researchers used an independent

t-test to determine whether there is a significant difference between the financial

literacy of minimum and non-minimum wage earners in the fields of budgeting,

investing and saving. Levene’s test is also used to test if the samples have equal

variances. The determination for the homogeneity of variance would help the

researchers for the assumptions underlying both t-value results and p-value

results in which the population variances of two or more samples are considered

equal (Engineering Statistics Handbook, nd).