YOUNG ENTREPRENEURS KNOWLEDGE AND PRACTICES ON PERSONAL SAVINGS

Genoveva Y. Reyes, Jolina Reyes, Caren Field Carbonell and Beverly Dela Cruz

College of Business Education

To become competitive in business, an entrepreneur needs particular skills; financial

management is one of the main skills. When running a business, it is easy for young

entrepreneurs to get overwhelmed. Young businessmen could end up not spending money

wisely. This research was conducted to determine the Young Entrepreneurs Knowledge and

Practices on Personal Savings in Dagupan City. The researchers used a descriptive research

method using a survey questionnaire. The principal tool used in data gathering was the survey

questionnaire made by the researchers. All the data gathered were treated statistically by using

percentage, weighted mean, chi-square test, and Pearson r.

The findings in the first part of the questionnaire which is the profile of the respondents.

In terms of age, the highest result is 24-29 and 30-35 years old (39%). In terms of sex, the

highest result is female (65%). In terms of marital status, the highest result is single (65%). In

terms of highest educational attainment, the highest result is college graduate (84%). In terms of

monthly saving based on gross income, the highest result is below 5%(52%).

The findings in the second part of the questionnaire are the respondent's knowledge of

personal savings. In terms of budgeting, the highly knowledgeable is the I should pay my bill on

time to avoid penalties with an average weighted mean of 4.58. In terms of investment, the

moderately knowledgeable is Investment is better than saving on my pocket, investment

encourages me to plan well in advance to provide higher/professional education and training to

children and I should seek financial advice from financial advisors for my investment decisions

with an average weighted mean of 3.97, 3.65 and 3.71 respectively. In terms of benefits, the
highly knowledgeable is the personal saving makes me prepared for circumstance changes with

an average weighted mean of 4.52.

The last part of the questionnaire is the respondent's practices on personal savings, the

highly applied is the I pay my bills on time to avoid penalties and I often compare prices before I

make a purchase with an average weighted mean of 4.71 and 4.55respectively

Based on the findings on the level of knowledge of young entrepreneurs in terms of

budgeting researchers concluded that respondents are highly knowledgeable that they should

pay their bills on time to avoid penalties. Paying bills on time is one of the many ways of

budgeting in which penalties associated with it in not paying on time can be soon saving and

can be put to other day to day expenditure. In terms of investment, researchers concluded that

the respondents are moderately knowledgeable that investment is better than saving on their

own pocket. Respondents are aware that saving on their own pocket is not a good habit to

have. The risk that they can pulled it out and spend it was there, just like put it on pocket then

pulled it in a minute. But, if they saved through investment such risks in saving on pocket will be

eliminated. Advantageous of having an investment is that it accumulates interest that soon be

an interest income. Circumstance changes can’t be avoided, but being prepared can secure it,

and researchers concludes drawn from findings that respondents are highly knowledgeable with

it.

In the data analysis, there is a significant relationship between young entrepreneurs’

profile with respect to sex and knowledge on personal saving with the value p=0.013, other

profile exceeds alpha (a=0.05). There is no significant relationship between; young

entrepreneurs’ profile and practices on personal savings; young entrepreneurs’ knowledge and

practices on personal savings. It was revealed that the young entrepreneurs are moderately

knowledgeable in terms of budgeting, investment and benefits of personal savings, and

moderately applies practices on how to save. According to the findings female young
entrepreneurs have higher knowledge on personal savings. Therefore, to improve and increase

their knowledge and to encourage them to practice strategies to save personally, the

researchers would like to provide the following recommendations.

The researchers would recommend that entrepreneurs should;

First, they should set systematic ways on implementing their knowledge into practices

by drawing a clear line between the personal funds and business funds. Second, always seek

financial advisors and/or assistance to help them on their investment decisions. Third,

reviewing their Cost cutting Techniques. Lastly, future researchers should study further about

personal saving broader than the limitations this study had, since it was just a study for young

entrepreneurs with limited knowledge and practices provided to be rated.