CHAPTER 3

Results and Discussions

This section presents the results generated from the data gathered. The

sequence of the discussion follows the order of the presentation of questions in

the Statement of the Problem in Chapter 1: (1) level of financial literacy of Grade

12 STEM students, (2) level of financial behavior of grade 12 STEM students,

and (3) tests of relationship between financial literacy and financial behavior.

Implications and interpretations are also presented in this chapter.

Level of Financial Literacy of Grade 12 STEM students

Table 1 presents the level of financial literacy of Grade 12 STEM students

in Davao Doctors College Senior High School Department. There are three

indicators for the variable: budgeting, savings, and controlling expenses.

Table 1.  Level of Financial Literacy

Financial Literacy Mean Description

Budgeting 3.89 High

Savings 3.99 High

Controlling Expenses 4.19 Very High

The highest mean among the indicators is 4.19 for students’ controlling

expenses. This can be described as very high which means that the students

ensure to monitor the budget to properly manage their expenses. The results can

be anchored on Ningtyas and Andarsari's The Role of Financial Literacy on

Financial Behavior Theory (2019), which states that financial literacy is linked to

better budgeting, savings, and controlling expenses. In other words, a person is

more likely to conduct finances soundly in daily life the more knowledgeable and

understandable they are about financial concepts (Andasari & Ningtyas, 2019).
 In terms of budgeting, the grade 12 STEM students in Davao Doctors

College had an average mean of 3.89 or high. This means that the students'

financial literacy is comprehensive and is leading toward financial success.

Looking closely at the items for budgeting, the item I know how to set up a

personal budget received the highest mean of 4.25 with a description of very

high. This indicates that they are capable of creating a personal budget plan for

themselves that maintains a balance between their necessities, desires, and

goals. This also means that the students know how to estimate how much money

they can make and spend over a specific time period. On the other hand, the

lowest mean of 3.9 or with the description of high for the item I keep track of my

spending and have a fund set up just for emergencies. This suggests that, while

the kids are quite comprehensive in this area, it is implied that the students must

still exert effort to be conscious and purposeful about where they spend their

money. This statistical result is in line with the study of Prasanna (2022) that

states that the primary advantage of budgeting is that a budget provides a

strategic plan of action. Therefore, you should utilize your budget to assist you to

decide when to stop spending.

In terms of savings, the grade 12 STEM students in Davao Doctors

College had an average mean of 3.99 or high. This means that the students'

financial literacy is comprehensive and is oriented toward financial success.

Looking closely at the statements for students’ savings, the item I ensure to set

aside the remaining amount of my allowance received the highest mean of 4.25

with a description of very high which means that the students understand how to

save money instead of spending it right away. This indicates that students are

aware of the benefits of letting their money grow as opposed to letting it

disappear. Ismail et al. (2013), discussed that saving manifests itself through

various activities depending on goals for future, such as pushing a person to put

away money before using it for consumption, avoiding unnecessary

expenditures, and saving frequently. On the other hand, the lowest mean of 3.7

with the description of high is for the item I save money by cooking at home to
avoid spending money on food deliveries. This means that while they are not that

prudent in this area, the mean still implies that they know how to save and

manage their money. This is consistent with the study, which states that saving is

an action that is encouraged to become a habit of human existence, which

makes it unquestionably a beneficial activity for dealing with unforeseen family

economic challenges (Widyastuti et al., 2016).

On the other hand, in terms of controlling expenses, the grade 12 STEM

students of Davao Doctors College had an average mean of 4.19 or very high.

This means that the students’ financial literacy is comprehensive and is highly

oriented toward financial success. Looking closely at the statements, the item I

make a plan to control my expenses had the highest mean of 5 or Very High

which means that the students keep track of their spending and take charge of

their own finances. This also implies that they ensure not to spend money

impulsively. On the other hand, the lowest mean of 3.85 with the description of

high for item I always control how I manage my expenses. This demonstrates

that while the students are not extremely comprehensive in this area, they still

know how to distinguish wants from needs. This is consistent with what a study

found, which reads that cost controls are sometimes thought of as a way to

improve a company's operational effectiveness, but they can also help people

and families save more money and generate more cash flow (Kenton, 2022). 

Level of Financial Behavior of Grade 12 STEM students

Table 2 presents the level of financial behavior of Grade 12 STEM

students in Davao Doctors College Senior High School Department. There are

three indicators for the variable: cash management, credit managements, and

savings management.
Table 2.  Level of Financial Behavior

Financial Behavior Mean Description

Cash management 4.03 Very High

Credit management 4.39 Very High

Savings management 4.29 Very High

The highest mean among the indicators is 4.39 for students’ credit

management. This can be described as very high which means that the students

ensure to frequently monitor their credit transactions and maintain a reserve

fund. The results can be anchored on Fishbein and Ajzen's Theory of Reasoned

Behavior (1975), which states that a person's behavior is determined by her/his

behavior intention. Additionally, it assists in explaining behavioral intention in the

context of credit management plans (Xiao & Wu, 2006).

In terms of students’ credit management, the grade 12 STEM students of

Davao Doctors College had an average mean of 4.39 or very high. This means

that the financial behavior of students is highly observed and extremely oriented

toward positive behavior. Looking closely at the statements for students’ credit

management, the item I always double-check my balance in my online loan

account received the highest mean of 4.55 with a description of very high. This

means that the students make sure to carefully check the balance on their online

loan account in order to avoid any over-limit fees. On the other hand, the lowest

mean of 4.3 with the description of very high is for the item I will research bank

accounts and credit cards for the best options and lowest fees. This means that

students’ credit management is highly observed in this area. It can also be

implied that students do make an effort to examine bank accounts and credit

cards for the best possibilities and lowest costs in order to be aware of how much

they are being charged, the interest rate they will be paying, when and how they

will be paying, as well as the maximum amount they can borrow. This statistical

result is in line with the study of Horwitz (2012) that discusses that learning how
to manage your credit responsibilities early on will help you avoid having a

terrible credit history and having to make loan repayments straight after

graduation.

In terms of students’ cash management, grade 12 STEM students of

Davao Doctors College had an average mean of 4.03 or very high. Looking

closely at the statements of students’ in cash management, the item I always

track my expenses received the highest mean of 4.25 with a description of very

high. This demonstrates that the students are aware of where their money is

going and are able to detect and change their poor spending habits. Abioro

(2013) stated that cash management includes managing short-term liabilities,

managing credit, and managing inventory. On the other hand, the lowest mean of

3.9 for the item I always prepare enough money to spend for that day. This

means that while they are not that excellent in this area, the mean still suggests

that the students are capable of calculating how much cash is required for that

particular day in order to prevent overspending. This is consistent with the study,

which states that the efficient handling of cash and maintaining a sufficient

balance to be used for operations are the main components of cash

management (Morrison, 2018).

On the other hand, in terms of students’ savings management, the grade

12 STEM students of Davao Doctors College had an average mean of 4.29 or

very high. This means that the financial behavior of students is highly observed

and highly directed towards positive behavior. Looking closely at the statements

of students' savings management, the item I put my needs and desires aside and

prioritize my responsibilities received the highest mean of 4.35 with a description

of very high. This means that the students can identify between short-term

savings goals and long-term saving goals. On the other hand, the lowest mean of

4.3 or very high for the item I monitor and update my bank statement every other

week. This means that the students’ savings management is highly observed in

this area. It can be inferred that students make an effort to evaluate their regular
expenditure in order to be conscious of how much they're spending to avoid

unnecessary expenses. This is consistent with what a study found, which reads

that savings management is the process of anticipating procurement savings

based on strategic sourcing plans, mapping savings to the budget, and tracking

savings realization (Simfoni, 2018).

Test of Relationship between Financial Literacy and Financial Behavior  

Table 3 presents the relationship of the independent variable to its paired

dependent variable. The Pearson Product Moment Correlation was used to test

the relationship between the level of Financial Literacy and level of Financial

Behavior. These results lead to the acceptance of the null hypothesis which

states, there is no significant relationship between the Financial Literacy and

level of Financial Behavior.

Table 3. The Relationship between Financial Literacy and Financial

Behavior

p-value Interpretation Decision

-0.0002 Not Significant Accept Ho

The reported results derived show no significant relationship. The results

of the test of relationship between the overall level of financial literacy and overall

level of financial behavior led to the failure to reject the null hypothesis which

states there is no significant relationship between the level of financial literacy

and level of financial behavior at Davao Doctors College at a 0.05 level of

significance. This is in line with a study which shows that the financial behavior of

an individual is not influenced by their financial literacy. This means that financial

literacy is just conceptually understood without being accompanied by actual

practice as an application of the knowledge obtained (Octavio, 2016, as cited in

Farida et al., 2021).