1

CHAPTER 1

BACKGROUND OF THE STUDY

The terms financial literacy, financial knowledge and financial education often

are used interchangeably in the literature and popular media. Few scholars have

attempted to define or differentiate these terms. Unlike health literacy, which is

typically measured using one of the three standardized tests, there currently are no

standardized instruments to measure financial literacy. Marcolin and Abraham (2006).

Financial literacy is the ability to know and understand the management of money to

achieve personal financial and investment goals. Financial literacy is not just for the

rich or people who are able to make large investments, but also for the average person

who may only be able to invest in small amounts.

The financial literacy around the world appears strongest in countries with

developed and advanced economies, especially Western Europe and English -

speaking countries. In a word, financial literacy rates in South America are

depressing. Uruguay and Chile post the best rate at 45% and 41% respectively, but

most places fall between 21% - 30%. There are no doubt lots of historical

explanations for this disparity, but Nicaragua (20%) strands outs as particularly

troubling. It has the lowest score in all of central and South America excluding the

carribean, and its indicatives of the desperate situation in that country. European

countries appear to perform the best on the financial literacy survey, and the further

south one looks, the worse the situation. Portugal manages a faulty 26%, the worst in

all of the Western Europe the eastern bloc. Meanwhile, have some obvious and

staggering problems, with no Country East or South of Hungary scoring over 50%.
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According to the countries financial regulator, here in the Philippines financial

literacy level of the average Filipino remain alarmingly low a problem that begins

with poor childhood education that persist until their adult year. The study also

showed that Filipinos lack of specific knowledge to make informed financial

decisions “the central bank said, stressing that financial education was an

(imperative)” considering the country’s low financial literacy levels. The same study

indicated that money management habits formed in childhood stay into adulthood

“The BSP believes that a financially learned citizenry can be more effective in

productively. Contributing to the Philippine economy” BSP Governor Nestor

Espenilla Jr. said. The central bank pointed to a growing of literature indicating that a

financially literature population was able to make better financial decisions, have

higher levels of saving and diversified investments, and were more competent in

managing debt.

An examination of the literature revealed a number of research gaps. First,

comprehensive reviews of the literature from diverse academic fields are needed to

identify important theories and factors associated with financial behaviors for helping

develop evidence-based financial education programs. These reviews should evaluate

strengths and weaknesses of existing theories being applied and provide directions for

developing new theories relevant behavior theories need to be utilized to define

desirable financial behaviors by considering specific life-cycle stages, contexts, and

macroeconomic environments. Theory-based longitudinal studies are needed to better

understand how financial behaviors are formed or changed to positive directions. To

achieve this goal, a comprehensive, theory-based national panel data set on consumer

financial behaviors could be developed. Current national data sets can be used or

amended for this purpose and consumer data from existing national financial
 3

education programs could be used to compile the data set. Financial stress or strain

occurs when individuals are unable to meet their financial responsibilities and one of

the most significant causes of workers’ stress is personal finance (Kim & Garman,

2006). Therefore, financial problems and stress affect not only an employee's personal

and family life but are also a cost to the employers. High job insecurity, uncertain

income and easy access to consumer credit have a great influence on their financial

behavior. It is for this reason that this study was done to determine the financial

literacy of millennial employees in the County Government. The financial decisions

made early in life create habits difficult to break and affect students’ ability to become

financially secure adults. Most recent studies show average personal financial scores

declining with average scores close to a failing grade (Chair, Allen and Hayhoe,

2007). So far, no national surveys on financial literacy have been conducted in the

lowest income country grouping as defined by the World Bank, although the World

Bank is planning surveys in Malawi, Zambia, and other countries. However, the

nationally representative Fin Scope surveys, which focus mainly on financial access

and behavior but also measure a few aspects of financial literacy, have been widely

implemented in the Africa region as well as in Pakistan (Zu and Zia, 2012).

Given the important and the impact of financial literacy especially income

generating population. This would require an investigative study as so how it will

replicate or how it would influence current spending behavior of such population.

Thus, this study will be able to contribute especially with the knowledge and data

regarding how the young professionals of Bacolod City spend their income as it is

correlated with their identified financial literacy knowledge and awareness.

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STATEMENT OF THE PROBLEM

This study generally seeks to explore the Level of Financial knowledge and

decision making skill of BPO’s Agent in Bacolod City, Negros Occidental.

Specifically, it sought to answer the following sub-problems:

1. What is the socio-demographic profile of the respondents in terms of:

A. Sex

B. Age

C. Educational Status

D. Income

2. What is the level of financial knowledge among BPO’s Agent?

3. What is the level of financial decision making skill among BPO’s Agent?

4. Is there a significant different on the level of financial knowledge among

BPO’s Agent when grouped according to:

A. Sex

B. Age

C. Educational Status

D. Income

5. Is there a significant different on the level of financial decision making skills

among BPO’s Agent when grouped according to:

A. Sex

B. Age
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C. Educational Status

D. Income

6. Is there a significant relationship between financial knowledge and financial

decision making skills?

HYPOTHESIS

For problem number 4, there is no significant different on the level of financial

knowledge among BPO’s Agent.

For problem number 5, there is no significant different on the level of financial

decision making skills among BPO’s Agent.

For problem number 6, there is no significant relationship between financial

knowledge and financial decision making skills.

SCOPE AND LIMITATION

This study aims to evaluate the effectiveness of personal finance programme, like

attitude towards, money must be in place. The target group of this study is BPO’s

Agent within Bacolod City, Negros Occidental. Who is better at financial knowledge

and financial decision making skill.

Financial Literacy of BPO’s Agent is a measure of the degree to which one

understands key financial concepts the ability and confidence to manage personal

finances through appropriate short-term decision-making of financial planning. The

study will be done in this year in the community in Bacolod City, Negros Occidental.
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SIGNIFICANCE OF THE STUDY

The study is viewed to contribute in the practical, methodological and

theoretical significance to the field and to the following:

Department of Labor and Employment. These results may serve as a guide to

know the financial of every employee in the company. The end of result of the study

will help the institution to know their employee’s financial skills and knowledge in

the investment and financial terms.

Business Process Outsourcing. This study can help BPO agents to identify

on how to manage expenses and have knowledge about decision making in terms in

financial. This research will help the responded to be more financial literate and have

a good skill in decision making skills in financial managing.

Early Adulthood. The outcome of this study will measure the capacity of early

adulthood at the age of 22-26. This study serves as their basis on how to manage their

daily expenses. This study also shows the age bracket of the BPO’s Agent.

Future Researchers. This study will serve as an example to the future

researcher. It will give a visual to the other researcher. It will give those ideas on how

to manage their expenses in income in terms of financial knowledge. This will also

give the future researchers a skills to make their study more effectively and efficient.
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DEFENITION OF TERMS

Financial Decision Making Skill. Conceptually defined by Consumer Financial

Protection Bureau (2019).Financial decision-making skills help people weigh options

and make informed choices for their financial situations, such as deciding how and

when to save and spend, comparing costs before a big purchase, and planning for

retirement or other long-term savings. Financial decision-making skills help people

make informed financial decisions through problem-solving, critical thinking, and an

understanding of key financial facts and concepts.

Financial Knowledge. Conceptually defined by Alvarez (2017) Financial

knowledge help people make informed financial decisions through problem-solving,

critical thinking, and an understanding of key financial facts and concepts. Financial

awareness and understanding about the financial concepts and procedures as well as

the use of this understanding to solve financial problems.

Theoretical and Conceptual Framework

This study anchored to the theory of Lusardi and Mitchell These microeconomic

models generally assume that individuals can formulate and execute saving and

spend-down plans, which requires them to have the capacity to undertake complex

economic calculations and to have expertise in dealing with financial markets. As we

show below in detail, however, few people seem to have much financial knowledge.

Moreover, acquiring such knowledge is likely to come at a cost. In the past, when

retirement pensions were designed and implemented by governments, individual

workers devote very little attention to their plan details. Today, by contrast, since

saving, investment, and decumulation for retirement are occurring in an increasingly

personalized pension environment, the gaps between modeling and reality are worth
 8

exploring, so as to better evaluate where the theory can be enriched, and how policy

efforts can be better targeted.

Though there is a substantial theoretical and empirical body of work on the

economics of education,5 far less attention has been devoted to the question of how

people acquire and deploy financial literacy. In the last few years, however, a few

papers have begun to examine the decision to acquire financial literacy and to study

the links between financial knowledge, saving, and investment behavior (Delavande,

Rohwedder, and Willis 2008; Jappelli and Padula 2013; Hsu 2011; and Lusardi,

Michaud, and Mitchell 2013).6 For instance, Delavande, Rohwedder, and Willis

(2008) present a simple two-period model of saving and portfolio allocation across

safe bonds and risky stocks, allowing for the acquisition of human capital in the form

of financial knowledge (à la Ben-Porath, 1967, and Becker, 1975). That work posits

that individuals will optimally elect to invest in financial knowledge to gain access to

higher-return assets: this training helps them identify better-performing assets and/or

hire financial advisers who can reduce investment expenses. Hsu (2011) uses a similar

approach in an intra-household setting where husbands specialize in the acquisition of

financial knowledge, while wives increase their acquisition of financial knowledge

mostly when it becomes relevant (such as prior to the death of their spouses). Jappelli

and Padula (2013) also consider a two-period model but additionally sketch a multi-

period life cycle model with financial literacy endogenously determined. They predict

that financial literacy and wealth will be strongly correlated over the life cycle, with

both rising until retirement and falling thereafter. They also suggest that in countries

with generous Social Security benefits, there will be fewer incentives to save and

accumulate wealth and, in turn, less reason to invest in financial literacy.

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Each of these studies represents a useful theoretical advance, yet none

incorporates key features now standard in theoretical models of saving – namely

borrowing constraints, mortality risk, demographic factors, stock market returns, and

earnings and health shocks. These shortcomings are rectified in recent work

by Lusardi, Michaud, and Mitchell (2011, 2013), which calibrates and simulates a

multi-period dynamic life cycle model where individuals not only select capital

market investment but also undertake investments in financial knowledge.

INDEPENDENT DEPENDENT
VARIALE VARIABLE

Financial Knowledge
Young Professional
and Financial Decision
Age Making Skill

OUTCOME

For assessment only

Figure 1

Conceptual Map of the study

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Chapter 2

Review of Related Literature

Financial literacy and financial decision-making in older adults

The older population displays a low level of financial literacy, which is putting

them at risk of making poor financial decisions. Both in the United States and around

the world, older individuals do not master financial concepts such as interest

compounding, inflation, and risk diversification that are the basis for sound financial

decision-making. Financial illiteracy is not only widespread, but particularly severe

among older women. As baby boomers continue to retire and the elder population

grows, it is important to find ways to address financial decision-making later in life.

Financial Numeracy, Net Worth, and Financial Management Skills: Client

Characteristics That Differ Based on Financial Risk Tolerance.

Financial advisors commonly observe important differences among current and

prospective clients in terms of financial numeracy, net worth, and financial

management skills. This study shows that these types of financial advisor

observations and perceptions are accurate, and that individual differences on these

three dimensions differ significantly based on a person's financial risk tolerance.

Findings suggest that individuals who exhibit the lowest level of financial risk

tolerance tend to (a) be the least competent in terms of financial matters,(b) have the

lowest subjective evaluations of net worth, and (c) experience the least satisfaction

with their financial management skills. The questions used in the study might be

appropriate for inclusion in advisory data-gathering tools as a way to help

differentiate individuals into categories of potential recommendation implementation.

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Financial knowledge and best practice behavior

The current research examines the relationship between personal financial

knowledge (both objective and subjective), financial satisfaction, and selected

demographic variables in terms of best practice financial behavior. Data are taken

from the Financial Industry Regulatory Authority’s (FINRA) National Financial

Capability Study, a nationally representative sample of 1,488 participants and are

analyzed using multiple regression analysis. Findings suggest that both objective and

subjective financial knowledge influence financial behavior, with subjective

knowledge having a larger relative impact. Other variables that have a significant

impact on financial behavior include financial satisfaction, income, education, age,

race, and ethnicity.

Taking the mystery out of intuitive decision making

Making decisions by intuition is increasingly viewed as a viable approach in

today's business environment. Intuition may be beneficial in certain scenarios, and at

times may be the primary decision approach available. To investigate the use of

intuition in decision making, we interviewed 60 experienced professionals holding

significant positions in major organizations across various industries in the U.S. The

executives provided rich descriptive insights about intuitive decision making. They

discussed the nature of intuition and how it is developed, how often they use intuition

and how they are prompted to do so, and the types of workplace situations in which

intuition is used. The interviews were used to develop a descriptive profile of those

using intuition in the workplace and to document the perceived quality and benefits of

intuitive decisions.
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The outlook for financial literacy

As the world becomes more financially integrated and complex, average

individuals and their families are increasingly faced with making highly sophisticated

and all-too-often irreversible financial decisions. Nowhere is this more evident than

with regard to retirement decision-making. Indeed, the global financial crisis suggests

that poor financial decision-making can have substantial costs not only for individuals

but also society at large. This paper focuses on key lessons for financial decision-

making in the wake of that crisis, exploring how financial literacy can enhance

peoples’ skills and abilities to make more informed economic choices.

Financial decision making and cognition in a family context

In this article, we study the association of cognitive traits and, in particular,

numeracy of both spouses on financial outcomes of the family. We find significant

effects, particularly for numeracy for financial and non‐financial respondents alike,

but much larger effects for the financial decision maker in the family. We also

examine who makes these financial decisions in the family and why. Once again,

cognitive traits such as numeracy are an important component of that decision with

larger effects of numeracy for husbands compared to wives.

Cognitive abilities and household financial decision making

We analyze the effects of cognitive abilities on two examples of consumer

financial decisions where sub-optimal behavior is well defined. The first example

features the optimal use of credit cards for convenience transactions after a balance

transfer and the second involves a financial mistake on a home equity loan
 13

application. We find that consumers with higher overall test scores, and specifically

those with

higher math scores, are substantially less likely to make a financial mistake. These

mistakes are generally not associated with non-math test scores. (JEL D14, G21)

Think Smarter: Critical thinking to improve problem-solving and decision-

making skills

Train your brain for better decisions, problem solving, and innovation Think

Smarter: Critical Thinking to Improve Problem-Solving and Decision-Making Skills

is the comprehensive guide to training your brain to do more for you. Written by a

critical thinking trainer and coach, the book presents a pragmatic set of tools to apply

critical thinking techniques to everyday business issues. Think Smarter is filled with

real world examples that demonstrate how the tools work in action, in addition to

dozens of practice exercises applicable across industries and functions, Think Smarter

is a versatile resource for individuals, managers, students, and corporate training

programs. Thinking is the foundation of everything you do, but we rely largely on

automatic thinking to process information, often resulting in misunderstandings and

errors. Shifting over to critical thinking means thinking purposefully using a

framework and toolset, enabling thought processes that lead to better decisions, faster

problem solving, and creative innovation. Think Smarter provides clear, actionable

steps toward improving your critical thinking skills, plus exercises that clarify

complex concepts by putting theory into practice. Features include: A comprehensive

critical thinking framework Over twenty-five" tools" to help you think more critically

Critical thinking implementation for functions and activities Examples of the real-

world use of each tool Learn what questions to ask, how to uncover the real problem
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to solve, and mistakes to avoid. Recognize assumptions your can rely on versus those

without merit, and train your brain to tick through your mental toolbox to arrive at

more innovative solutions. Critical thinking is the top skill on the wish list in the

business world, and sharpening your ability can have profound affects throughout all

facets of life. Think Smarter: Critical Thinking to Improve Problem-Solving and

Decision-Making Skills.

Social Transmission of Financial Decision Making Skills. A case of the blind

leading the blind? PRELIMINARY AND INCOMPLETE

Often, people consult with others for advice before they make financial decisions.

Previous research argues that such communication amounts to a case of the blind

leading the blind. In this paper, we document that it can be beneficial, and explore

mechanisms. In our laboratory experiment, subjects make private decisions about

investments involving compound interest both before and after they communicate

with a randomly assigned partner. Communication not only improves decision

making for the specific tasks they have sought advice about, but subjects successfully

generalize these skills to novel decision problems. We find that communication is

most beneficial when pair members’ skills are at similar levels—the transmission of

financial competence requires a common language, and is not merely a case of

information flowing from those who have it to those who do not. Finally,

communication leads subjects to reevaluate their privately revealed time preferences.

Discount rates move towards the communication partners’ rate, and do so to a larger

extent if the partner is more patient. We suggest policies to improve the quality of

financial decision making.

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THE ASSOCIATION OF OBJECTIVE FINANCIAL DECISION MAKING

WITH FINANCIAL LITERACY, EDUCATION, AND MATH SKILLS

Rationale: Financial decision-making (FDM) is a critical ability with implications

across the adult life-span. In healthy adults, demographic and cognitive factors impact

FDM. However, the impact of these factors on FDM has yet to be fully investigated.

The aim of the current study was to understand the extent to which demographics

(age, education, sex), financial literacy (crystallized ability), and mathematical ability

(fluid ability) influence FDM. Participants and Methods: The sample, recruited from a

larger ongoing study, consisted of 73 adults; mean age=61.31 (13.76) years, mean

education=15.68 (2.61) years, 59.5% female, 58% Caucasian. FDM was measured

using the Financial Competence Assessment Inventory, financial literacy using a

standard set of 23 questions, and math skills using WAIS-III Arithmetic, WRAT-IV

Math and Cognitive Reflection Test. Results: Only variables that were significantly

associated with FDM in bivariate analysis were selected for the multiple regression

analysis. After adjusting for multicollinearity, stepwise multiple regression analyses

revealed that the overall model with 3 predictors (education, financial literacy, WAIS-

III Arithmetic) was significant (F =23.64, p < .001) and explained 50.7% of the

variance in FDM. Education and WAIS-III Arithmetic predicted FDM to a higher

extent than financial literacy. Conclusions: The finding that education and fluid ability

has a relatively higher impact on FDM as compared to crystallized ability is

important. As one ages, fluid abilities decline more rapidly than crystallized abilities.

This may be one explanation for why FDM ability worsens with age. To increase

confidence in these findings, future research should test these models using age-

stratified analyses.

Decision making skill: From intelligence to numeracy and expertise

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Over the past decade several landmark studies have advanced our scientific

understanding of decision making skill, its measurement, and its acquisition (eg,

Skilled Decision Theory). Here we present an integrative review of skilled human

decision making in experts and non-experts, with emphasis on four emerging insights.

(1) Among non-experts, normatively superior decision making is associated with a

domain-general skill that has largely been neglected in research on general

intelligence.(2) Statistical numeracy tests (ie, assessments of practical probabilistic

reasoning) tend to be the strongest single predictors of general decision making skill

across wideranging numeric and non-numeric judgments and decisions (www.

RiskLiteracy.org). (3) The superior decision making exhibited by experts and non-

experts primarily reflects specialized knowledge and sophisticated long-term memory

representations that inform adaptive heuristic strategies (ie, representative

understanding rather than rational optimization).(4) High-levels of basic cognitive

abilities, such as fluid intelligence or attentional control, are not generally required for

skilled or expert decision making.

Although we’ve endeavored to minimize jargon in this review, some

clarifications merit consideration. Historically, researchers have distinguished

between judgments (eg, estimates) and decisions (eg, choices), based on traditions

from the 1940s when decision researchers used conventions in economics and

statistics, while judgment researchers followed conventions in perception. Here, and

for general purposes, the terms judgment and decision making are roughly

interchangeable (eg, a decision is a judgment about what to do; Baron, 2008). Thus,

general decision making skill refers to stable differences in judgment and decision

making quality exhibited across diverse and wide-ranging domains (eg, health,
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wealth, and happiness). Likewise, verifiable expert decision making refers to stable

differences in judgment and decision making.

Active learning to improve self-confidence and decision-making skills through

the use of hotel simulation

This study evaluated the use of hotel simulation learning and how it promotes

users’ confidence as a decision-making tool. Given the challenges of preparing

students for the service industry, it enables them to make hypothetical decisions based

on real-life scenarios. The perceived learning experience can enhance students’

critical thinking ability to manipulate different operational strategies. Data were

collected from 202 students who attended hospitality management programs in

Switzerland, the United States, and the United Kingdom. A series of regression

analyses were conducted to test how confident the students were in their ability to

make decisions. This article compares perceived self-confidence and the development

of decision-making skills between undergraduate and postgraduate students. The

students improved their confidence and thus their decision-making skills relating to

day-to-day operations. In addition, confidence was more effectively valued as a

relevant norm among undergraduate than postgraduate students in developing critical

and analytical decision skills.

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Chapter 3

Methodology

In this chapter it also addresses specific research instrumentation and data

coding, it also shows a correlational research approach its research question the

data gathering procedure data analysis. This chapter shows the study of

population and selection, sampling identification, data collection approaches,

factors affecting internal and external validity and data analysis techniques.

Research Design

The purpose of this paper is to assess the level of financial knowledge and

impact on BPO’s Agent in Bacolod City. The paper used both research and

questionnaire complemented by interview to assess the level of financial

knowledge among BPO’s Agent in Bacolod City. The paper reveals that financial

knowledge among young professionals in Bacolod City above average and

contributes meaningfully to their decision making skills. This study explicates

the concept of financial literacy, which has blossomed in use this century.

Financial experts and consumer advocates have used the phrase loosely to

describe the knowledge, skills, confidence and motivation necessary to

effectively manage money. As a result, financial literacy has varying conceptual

definitions in existing research, as well as diverse operational definitions and

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values. This study dissects the differing financial literacy definitions and

measures, urging researchers toward common ground. A clearer definition

should improve future research, in turn helping consumers better understand

and adapt to changing life events and an increasingly complex economy

(Remund 2010).Financial literacy (or financial knowledge) is typically an input

to model the need for financial education and explain variation in financial

outcomes. Defining and appropriately measuring financial literacy is essential to

understand educational impact as well as barriers to effective financial choice.

This article summarizes the broad range of financial literacy measures used in

research over the last decade. An overview of the meaning and measurement of

financial literacy is presented to highlight current limitations and assist

researchers in establishing standardized, commonly accepted financial literacy

instruments (Huston 2010)

Study of participants and sampling scheme

This study aims to examine the financial knowledge and financial decision

making skills in a sample of approximately 100 BPO’s Agent at the age of 22 to

35. The paper finds that most of the young adults have lack basic financial

knowledge. Financial literacy is especially low among certain demographic

groups, such as women, minorities, and lower-income or less-educated people. A

high level of education, however, is not a guarantee of financial literacy. Only

60% of young respondents with a college education and 40% of young

respondents with postgraduate education could correctly answer the simple

questions designed to assess financial literacy. Results show that respondents

who display higher financial literacy or higher confidence in their math or

 20

personal finance knowledge have better financial outcomes. They are less likely

to use high-cost borrowing methods, and they are more likely to plan for

retirement or have set aside savings for emergencies. The participants in this

study worked in various organizations around Bacolod City and young

professionals or fresh college graduates. The first requirement was that the

participant was age about 22 to 35 years old. At least 6 months already in the

company or organization that he or she working on. In addition, the researchers

needed permits or approval to those young professionals that they want to give a

survey or interview. The individuals in this study were from diverse

organizations that are served by consultants or counselors who ordered the

Team Report from Consulting Psychologist Press (CPP), Inc. Consultants

generally give the team (thus the potential participants) some training or

feedback to understand the reported information. This obviously varied from

one consultant to the next. The diversity of young professionals in decision and

industries was obtained to address the issue of generalize ability. Each individual

chose whether to participate or not. Since the instrument is confidential, there

was no determination whether entire teams participated.

Being financially literate is an important life skill that is equally important

for one's own sake as well as for society. Findings indicate that individuals are

financially illiterate while interventions to increase the level of financial literacy

are ineffective. The effect of financial literacy on financial knowledge and

financial decision making skills in correlation studies may be driven by some

unknown third variable, such as individual cognitive ability. The current study

investigated the levels of financial knowledge and financial decision making skill.
 21

Research instrument

The researcher chose to use a standardized questionnaire taken from

Financial Literacy Survey: 2016 Results because of the following benefits first,

the questionnaire able the researcher to ask simple questions which were easier

to analyze for the respondents since each question was followed by alternative

answers. Secondly, the questionnaire also enabled the researcher to use opened

questions thus permitting a greater in-depth response from the respondents.

The questionnaire composed question related to the level of financial

knowledge among BPO Agents and their decision making skills. Questionnaire

composed simple questions such as sex/gender, age, work and income. The

Financial Literacy Survey is a questionnaire survey conducted with the aim of

understanding the current state of financial literacy, i.e., financial knowledge and

financial decision making skills of individuals aged 22-35 in Bacolod City.

The characteristics of the questions were on the "financial knowledge and

financial decision-making skills" and the questions on "characteristics of

behavior and attitude" of the respondent.

Validity of the research instrument

Data validity refers to the degree to which results obtained from analysis of

data actually represents phenomenon under study. To achieve content validity

the researcher sought assistance from the experts (supervisor) on various

sections in the questionnaire which was the primary instrument for data

collection. Adjustment was made to accommodate the recommendations.The

researcher use a questionnaire was already validated in the past study.

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Reliability of the research instruments

Data reliability is the degree to which research instrument yield consistent

results or data.

Data gathering procedure

Determining the inclusion criteria

In this study, we started with the determination of the possible participants

to be introduced in the study. The researchers made a rigid inclusion criteria

which contains the specific characteristics that a sample should process. The

respondents included in the study must be a BPO’s Agent currently working in

Bacolod City, ages 22 to 35 years old.

Making the consent form

After determine the possible participants the researchers listed down all

possible participants both public and private company in Bacolod City. Then

each researcher was tasked to go to specific companies to look for respondents

that will be subjected to the study research instrument. The survey was

conducted outside of the company. After the respondents finished answering the

survey, the researcher gave a brief thank you message for the time and consent

given by the respondent.

Tabulating the Gathered Data

The tabulation of the gathered data was according to their demographics

profile (age, sex, education, status and income) the tabulated data was utilized in

the analysis of data.

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Chapter 4

PRESENTATION, ANALYSIS AND INTERPRETATION

This chapter presents the gathered data. Information from the respondents was

clustered by categories. The finding was placed at the end of every presented result

with the interpretation from the related literature.

FINDINGS

Table 1. Demographic profile of the respondents according to sex

 24

Using homogeneous purposive sampling, a sample of 100 respondents consisting

DEMOGRAPHIC PROFILE

Age Sex Income Educational Status

Early Adult F M B A S College College Graduate

Adult hood E A E B H level Graduate School

L O
hood (26-64) M L S
O V
(22-25) A E
W E
L

No. of 52 48 63 37 67 33 3 10 83 4

respondents

63 female and 37 male adolescent in Bacolod City answered the standardize

questionnaire taken from “Financial Literacy Survey; 2016 Result”. The age

consisting with two parts the 52% of Young Professional and 48% of Professional

Experience. The Educational Status compose of four categories 3% of Senior High

School, 10% college level, 83% college graduate and 4% graduate school. In addition,

67% from the total participant has an average income below 18,000 while 33% has an

income above 18,000.

Table 2. Level of financial knowledge among BPO’s Agents

Age Mean N Std. Deviation

Early Adulthood (20-25) 3.4727 52 .47578

Adulthood (26-64) 3.4373 48 .49722

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Total 3.4557 100 .48405

The level of financial knowledge is compare of two parts the Early Adulthood

and Adulthood according to the statistical computation the Early Adulthood had a

mean of 3.4727 and the population is 52% while the statistical computation of an

Adulthood had a mean of 3.4373 and the population is 48. The total mean of the level

of financial knowledge among BPO’s Agent is 3.4557

Table 3. Level of financial decision making skills among BPO’s Agents

Report

decision_level

Age Mean N Std. Deviation

Early Adulthood (20-25) 3.3827 52 1.07556

Adulthood (26-64) 3.4498 48 1.25207

Total 3.4149 100 1.15816

The statistical computation of the researcher use mean & standard deviation to

find out what is the level of financial decision making skill among the

respondents/participant the result of the early adulthood has an average of 3.827, there

population is 52% and the standard deviation is 1.07556, while adulthood have a total

average of 3.4498 and the population of 48% in addition, the total mean of the

participant is 3.4149
 26

Levene's

Test for t-test for Equality of Means

Equality

of

Variances

F Sig. t df Sig. Mean Std. 95%

(2- Differe Error Confidence

tailed) nce Differe Interval of

nce the

Difference

Lowe Uppe

r r

Equal 3.783 .055 -.92 98 .356 -.09313 .10033 -.29223 .10596

8
variance

assume

knowledg d

e_level Equal -.85 58.47 .396 -.09313 .10886 -.31101 .12475

5 1
variance

s not

assume

Table 4. Significant different on the level of financial knowledge among BPO’s Agents

when group according to sex:

 27

The table above shows a p-value of 0.396, since the 0.396 is greater than the 0.05

level of significance, the null hypothesis was accepted which indicates that there is no

significant difference in the level of financial knowledge when grouped to sex.

Independent t-test is to determine where there is a statistical significant different

between in the two group.

Independent Samples Test

Levene's

Test for

Equality
t-test for Equality of Means
of

Variances

F Sig. t df Sig. (2- Mean Std. Error 95% Confidence

tailed) Difference Differenc Interval of the

e Difference

Lower Upper

Equal .157 .692 .364 98 .717 .03540 .09731 -.15772 .22852

variances

assumed
knowledge
Equal .363 96.497 .717 .03540 .09749 -.15810 .22890
_level
variances

not

assumed

Table 5. Significant different on the level of financial knowledge among professional

when group according to age

 28

The table above shows a p-value of 0.717, since the 0.717 is greater than the 0.05

level of significance, the null hypothesis was accepted which indicates that there is no

significant difference in the level of financial knowledge of professional when

grouped to age.

ANOVA

knowledge_level

Sum of Squares df Mean Square F Sig.

Between 1.001 3 .334 1.443 .235

Groups

Within 22.195 96 .231

Groups

Total 23.196 99

Table 6. Significant different on the level of financial knowledge among professional

when group according to Educational Status.

The table above shows a p-value of 0.235, since the 0.235 is greater than the 0.05

level of significance, there is no significant difference in the level of financial

knowledge of professional when grouped to Educational Status.

Independent

Samples Test
 29

Levene's t-test for Equality of Means

Test for

Equality

of

Variances

F Sig. t Df Sig. (2- Mean Std. Error 95% Confidence

tailed) Differenc Difference Interval of the

e Difference

Lower Upper

Equal .045 .83 .31 98 .754 .03248 .10341 -.17274 .23770

knowledge_
variances 2 4
level
assumed

Equal .31 63.033 .756 .03248 .10388 -.17511 .24007

variances 3

not

assumed

Table 7. Significant different on the level of financial knowledge among professional

when group according to Income.

The table above shows a p-value of 0.756, since the 0.756 is greater than the 0.05

level of significance, there is no significant difference in the level of financial

knowledge of professional when grouped to age.

Independent Samples Test

 30

Levene's t-test for Equality of Means

Test for

Equality of

Variances

F Sig. t df Sig. (2- Mean Std. Error 95% Confidence

tailed) Difference Difference Interval of the

Difference

Lower Upper

Equal 1.464 .229 -1.263 98 .210 -.30207 .23916 -.77668 .17254

variances

decision_ assumed

level Equal -1.214 66.778 .229 -.30207 .24873 -.79858 .19443

variances not

assumed

Table 8. Significant different on the level of financial decision-making skill among

professional when group according to sex.

The table above shows a p-value of 0.229, since the 0.229 is greater than the 0.05

level of significance, there is no significant difference in the level of financial

decision making skill of professional when grouped to sex.

Independent Samples Test

 31

Levene's Test t-test for Equality of Means

for Equality of

Variances

F Sig. T df Sig. (2- Mean Std. Error 95% Confidence

tailed) Difference Differ-ence Interval of the

Difference

Lower Upper

Equal 1.350 .248 -.288 98 .774 -.06710 .23290 -.52928 .39508

variances

assumed
decision_
Equal -.286 93.04 .775 -.06710 .23432 -.53241 .39821
level
variances 9

not

assumed

Table 9. Significant different on the level of financial decision-making skill among

professional when group according to Age.

The table above shows a p-value of 0.775, since the 0.775 is greater than the 0.05

level of significance, there is no significant difference in the level of financial

decision making skill of professional when grouped to Age

ANOVA
 32

decision_level

Sum of df Mean Square F Sig.

Squares

Between 10.101 3 3.367 2.635 .054

Groups

Within Groups 122.690 96 1.278

Total 132.791 99

Table 10. Significant different on the level of financial decision-making skill among

professional when group according to Educational status.

The table above shows a p-value of 0.054, since the 0.054 is greater than the 0.05

level of significance, there is no significant difference in the level of financial

decision making skill of professional when grouped to sex

Independent Samples Test

 33

Levene's t-test for Equality of Means

Test for

Equality of

Variances

F Sig. t df Sig. (2- Mean Std. Error 95% Confidence

tailed) Difference Difference Interval of the

Difference

Lower Upper

Equal .303 .583 -.217 98 .829 -.05374 .24750 -.54490 .43741

variances

assumed

decision_level Equal -.205 55.114 .838 -.05374 .26221 -.57920 .47171

variances

not

assumed

Table 11. Significant different on the level of financial decision-making skill among

professional when group according to Income.

The table above shows a p-value of 0.838, since the 0.838 is greater than the 0.05

level of significance, there is no significant difference in the level of financial

decision making skill of professional when grouped to income.

 34

Correlations

knowledge_level decision_level

Pearson Correlation 1 .346**

knowledge_level Sig. (2-tailed) .000

N 100 100

Pearson Correlation .346** 1

decision_level Sig. (2-tailed) .000

N 100 100

**. Correlation is significant at the 0.01 level (2-tailed).

Table 12. Significant different on the level of financial decision-making skill among

professional when group according to Educational status.

The table above shows the strength of relationship of the variables financial

knowledge and financial decision making skills. A correlation coefficient of 0.346

signifies that there is weak positive relationship between the two variables.
 35

Chapter V

Summary of Findings, Conclusion, Recommendations

The summary, conclusions and recommendations of the study are found in this

chapter. The findings of the study were presented in the summary of the study; the

conclusions made from the findings of the study were stated in the second part of this

section. Recommendations were presented in the last part of this chapter.

Summary of Findings

1. Respondents of the study were all BPO’s agent from Bacolod City,

majority of them were female, aged 22-35 years.

2. Majority of the population belongs to the college graduate level

3. Respondents of the study were all BPO’s agent aged 22-28 years old has a

high knowledge in financial literacy.

4. According to the result, Adulthood is better than Early Adulthood in terms

of decision making skills.

5. According to the findings, a financial knowledge has no significant

difference in terms of age

6. Educational status has no significant difference in the level of financial

knowledge of BPO’s agent divided into two groups.

7. Income has no significant difference in the level of financial knowledge of

BPO’s agent when grouped to age.

8. Sex has no significant difference in the level of financial decision making

skills of BPO’s agent when grouped to sex.

9. Age has no significant difference in the level of financial decision making

skills of BPO’s agent when grouped to sex.

 36

10. Educational status has no significant difference in the level of decision

making skills of BPO’s agent when grouped to sex.

11. Income has no significant difference in the level of financial decision

making skills of BPO’s agent when grouped to income.

12. Based on the result of the relationship between financial knowledge and

decision making skills that there is significant relationship between two

variables.
 37

CONCLUSION

The researcher showed after the thorough data gathering and analysis of finding,

it can be concluded that there is no significant difference in the level of financial

knowledge and decision making of BPO’s Agent as a whole between female and

male.

The finding form this study indicates that BPO’s Agent manage their financial

knowledge and financial decision making. For the future BPO’s agent the important

of managing money is not that easy to do. There are lots of temptations in every

aspect; individuals should know how to handle their financial income. Finding a job is

hard they must know what financial knowledge and financial decision making skills.
 38

RECOMMENDATION

The DOLE (Department of Labor and Employment) has a program of Financial

Awareness Seminar (FAS) and Small Business Management Training (SBMT),

Training intended to assist the employment of their families with financial literacy

and to encourage them in putting up a small business for self-employment.

The DOLE also provides the OFWs and their families with opportunities for

accessing projects and services that would help about their financial literacy. This

program will serve as the respond to the financial literacy needs and interest of the

OFW’s and their families left behind who are the main recipients of international

remittances.

The researchers recommend DOLE about financial knowledge and financial

decision making skills among BPO’s agent. It will help the institution to distinguish

the knowledge and decision making skills in every BPO’s agent in their daily lives.

For the Future Researcher, this study can give them information and further

knowledge about financial knowledge and decision making skills. It gives them an

ideas that will help them in their study. This serves as their basis on a certain topic

that their chosen about financial aspects. This study is very useful for them that it will

use as their backgrounds to make their study more efficient and accurate.

This study results helps the respondents to have further information in financial

knowledge and financial decision making skills. It will help them become financially

literate at the age of 22-28 years old.

 39

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 44

Name: Age:

(Optional) Sex:

Educational status:

Monthly income:

This study generally seeks to explore the level of financial knowledge and
decision making of skill of young professional in Bacolod City, Negros Occidental

1. How much do you agree or disagree that each of the following statements
applies to you personally? Choose from the following scale of 1 to 5. Choose one
answer for each item.

1 2 3 4 5

Before I buy something I

carefully consider whether I
can afford it
I pay my bills on time

When there are several similar

products, I tend to buy what is
recommended as the most
selling product, rather than
what I actually think is a good
product
I set long term financial goals
and strive to achieve them

I find it more satisfying to

spend money than to save it for

the long term

I tend to live for today and let

tomorrow take care of itself

I keep a close personal watch

on my financial affairs
I have too much debt right now
 45

I am prepared to risk some of

my own money when saving

or making an investment

2. Which of the following statements on household behavior is inappropriate?

Choose only one answer.

Managing income and expenditure by keeping a household account

book or the like

Deciding on expenditure after considering whether it is truly

necessary and whether there is enough income

Saving some money out of income by transferring a fixed amount of

income into a savings account or the like

Frequently using installment payment plans of credit cards in order to

defer payment

Don't know

3. Which of the following statements on family budget management and credit

cards is inappropriate? Choose only one answer.

Using credit cards in a well-planned manner according to income

Any unsettled credit card payment is practically a debt

A credit card fee (interest) is charged for revolving payments but not
for installment payments

Failure to pay the credit card charge may cause credit card
transactions to be declined

Don't know
 46

4. Do you have a financial plan for the expenses you think you will have to cover
in the future? Choose one answer for each item

YES NO

Living expenses for retirement

Educational expenses for children

Costs of buying a house

Costs of health and nursing care for yourself

Costs of health and nursing care for family

Costs of buying a car

Wedding expenses for yourself

Wedding expenses for children

5. With regard to the expenses you think you will have to cover in the future, are
you aware of the amounts that will be required for your case? Choose one
answer for each item

YES NO

Living expenses for retirement

Educational expenses for children

Costs of buying a house

Costs of health and nursing care for yourself

Costs of health and nursing care for family

Costs of buying a car

Wedding expenses for yourself

Wedding expenses for children

 47

6. Which of the following is appropriate as an action to take when investing

(making deposits, etc.) or borrowing funds at a time of interest rate rise? Choose
only one answer.

Investing and borrowing at fixed interest rates

Investing at a fixed interest rate and borrowing at a floating interest

rate

Investing at a floating interest rate and borrowing at a fixed interest

rate

Investing and borrowing at floating interest rates

Don't know

7. At what opportunities do you mainly acquire knowledge or information when

you choose financial products? "Financial products" are deposits at financial
institutions, securities, insurance policies, etc. Choose up to three answers.

Consultation at financial institutions (asking the sales staff to explain)

From pamphlets provided at financial institutions

At a lecture meeting or a seminar

Consultation with financial professionals/professional financial

advisory

Through media reports (TV and radio programs, newspapers,

magazines, etc.)

From websites

Conversations with family members/friends

 48

By taking classes and/or attending lectures at schools (including those

for adults)

Other information sources ( )

I'm not sure at what opportunities I might acquire such knowledge or

information

I don't invest in financial products

8. Was financial education offered by a school or college you attended, or a

workplace where you were employed? Choose only one answer.

Yes, but I did not participate in the financial education Offered

Yes, and I did participate in the financial education

No

Don't know

9. Do you think financial education should be offered in schools? Choose only one
answer.

Yes

No

Don't know
 49

10. How often do you acquire financial and economic information from sources
such as newspapers, magazines, television, and the Internet? Choose only one
answer.

Almost every day

About once a week

About once a month

Less often than the above

Never

Other