Sarasua, Johnriel Clarence

Atienza, John Michael

Guanzon, Josefina J.

Factors affecting the Saving Behavior of Selected BSEd Social Studies Students
 CHAPTER 1

The Problem and Its Background

Introduction

According to the Deloitte (2023) the COVID-19 pandemic has had a significant

impact on individuals globally, with the biggest motivator for saving more being "in case

I have large, unexpected costs." Deloitte Global commissioned a survey of individuals in

Australia, Canada, China, France, Germany, Japan, the United Kingdom and the United

States to gain insights into the financial consequences of the pandemic. The report reveals

a pervasive sense of pandemic-related financial anxiety, regardless of how the pandemic

affected participants, and provides useful insights into the ways that the pandemic has

changed individuals' financial attitudes and behaviors. Savers in the post-pandemic world

are anxious about their financial future, and the financial services industry has a role to

play in helping savers prepare in case a similar crisis should strike again.

Saving behaviour also can bring a lot of benefits to individuals and families. Savings

can help people protect themselves against risks so they don't get overwhelmed. In

addition, having saving is more likely to help people achieve a better life whether now or

in the future (Wright, 2020).As mentioned by (Kassim et al., 2019) people with a higher

chance of surviving in the future are those that practice money management in

complacent and difficult times.

 As indicated by (Fernando, 2022) given the significance of finance in modern

civilization, a person's long-term financial success can be seriously impacted by a lack of

financial literacy. Financial Industry Regulatory Authority (FINRA) estimates that 66%

of Americans lack financial literacy, which is unfortunately a very widespread problem. 2

Lack of financial literacy can result in a variety of problems, such as an increased

likelihood of building up unmanageable debt loads due to bad spending choices or a lack

of long-term planning. This can then lead to poor credit, bankruptcy, home foreclosure,

and other negative effects.

According to ( P.Jeevitha&R.Kanya Priya 2019),in India, the study was carried

out. They come to the conclusion that although students spend more than they save, their

spending habits are different. Most students have savings and are aware of the value of

saving money. Students frequently favor using savings accounts as their primary means

of saving. Students set aside money for unexpected expenses. According to a study on

students' purchasing habits, they spend more money on transportation and education.As

stated by (Saber,2022) people must form and maintain a saving habit if they are to have

control over their future spending choices.

Lucas (2018) mentions in his write-up that according to the nation's financial

regulator, the average Filipino's financial literacy level is still appallingly low, an issue

that begins with poor childhood education that persists until their adult years. The same

study indicated that money management habits formed in childhood stay into adulthood.

Those who began saving as children display better attitudes to saving, and tend to

outperform their peers who did not develop the habit early in the areas of choosing
financial products and services, monitoring expenses and planning for retirement, the

central bank said.

Chinkee Tan, a wealth coach and media personality stated that “Pinoys do not

prioritize investing because they prioritize wants over needs, have too much debt, too

many dependents and uncontrolled spending.” BangkoSentral ng Pilipinas found that

Filipinos still have a long way to go in terms of financial literacy in its recently

completed 2019 Financial Inclusion Survey. More than half of Filipinos do not have any

savings, and those who do not know how to maximize their resources. The good news is

that these findings have increased the pressure for Filipinos to enrol in financial literacy

classes. Financial advisors assist their clients in preparing for significant financial events

because so many Filipinos find it difficult to comprehend even the most fundamental

financial principles. Fortunately, they are more than capable, ready, and

willing.According to Bona (2018) research Filipino college students’ spending is heavily

influenced by their family system. Parents have a significant influence not only on their

children's money management attitudes, but also on their children's overall life attitude.

For the locale of the study, the researchers decided to conduct the study at the

College of Sciences, Technology and Communications, Inc. located at General Luna

Street along Maharlika hi-way, Poblacion 3, Arellano Subd., Sariaya Quezon. This

institution in Sariaya, Quezon offer a Bachelor of Secondary Education with a major on

Social Studies. Also, the teachers in School of Teacher Education offer a microeconomics

subject, particular for second-year social studies students.

 On this premise, the researchers were able to determine the saving habit and

financial literacy, which served as a basis for proposing capacity building seminar.

Statement of the Problem

The purpose of this study was to analyze the level of financial literacy and saving

behaviour of selected BSEd 2 Social Studies students?

Specifically, it sought to answer the following questions:

1. What is the demographic profile of the Selected BSEd 2 Social Studies?

1.1. gender; and

1.2. monthly income?

2. What is the saving behavior of Selected BSED 2 Social Studies students in terms of:

2.1. self-restraint;

2.2. parent influence;

2.3. peer influence; and

2.4. financial literacy;

3. Based on the results of the study what program can be developed by the researchers

propose to enhance the level of saving behavior of BSEd 2 Social Studies students?

Conceptual Framework

Ever since, majority of college students are struggling on how to budget their

financial resources. Financial literacy and saving behavior are a key factor on how to

manage financial resources effectively. Most of the students nowadays are tend to buy

things that are unnecessary, sometimes it can result on scarcity, lack of emergency

funds,and most of the time excessive debt.

 According to McGurran, B. (2021) Financial literacy is the confident

understanding of concepts such as saving, investing, and debt that leads to an overall

sense of financial well-being and self-trust. It starts by building basic knowledge of

money matters, and while Americans could certainly improve on this score, they've made

gains in recent years. On the 2020 TIAA Institute-Global Financial Literacy Excellence

Center (GFLEC) Personal Finance Index, respondents correctly answered 52% of

personal finance questions. The index asks questions to assess participants' knowledge of

debt management, investment risk, savings options, and other financial topics.

(Berger, 2011, as cited in Mudzingiri, Mwamba & Keyser, 2018) Financial

behavior can have a significant impact on the well-being of individuals in a household,

society, nation, and the world at large. FB is best described as a set of observable

financial activities by economic agents. Such evident behavior is mainly influenced by

one's identity, wants, knowledge, performance, achievement, personal characteristics,

significance and psychological factors. Individuals who exhibit financial knowledge and

can execute financial activity to improve their welfare are known to be financially

literate.

According to Borad (2022) financial decisions are the decisions that managers

take with regard to the finances of an individuals. These are critical decisions for the

company's financial well-being. These decisions can be in terms of acquisition of assets,

financing and raising funds, day-to-day capital and expenditure management, etc. As a

result, financial decisions affect both an individual's assets and liabilities. They can result

in profits, revenue, and the receipt of funds and assets. They can also be expressed in

terms of expenditure, the creation of liabilities, and an individual's exodus of funds.

 Chalimah (2019) stated that,saving behavior must be instilled in young

children all the way through adulthood. The culture of saving that is instilled in children

from an early age can provide many benefits, such as forming economical characters,

discipline in spending money, and preparing for the future. However, there is still a lack

of public awareness about saving, and the community's saving behavior is only conducted

when there is a surplus.After consumption has been met, the income is calculated. The

fundamental problem that humans have faced since birth is the need to provide the

necessities for their survival.

In addition, parental influence also one of the factors that influence the saving

behavior of the students. According to Dangol&Maharjan (2018) the parental influence to

save has a significant impact on saving habits. Therefore, having your parents to teach

you about money possibly encourages good saving habits.

Saving behavior of the student`s possibly affected by the people around them. By

their friends and colleagues. Kadir & Jamaluddin (2020) peer pressure plays a crucial role

in influencing friends' saving habits and encouraging them to limit their spending to

essentials in order to avoid overspending.

According to Petpairote (2023) self-restraint is related to saving behavior, and those

with strong self-control save more. This means that people with good self-control are able

to avoid wasteful behaviors and carefully consider choices because they consider the

consequences. Furthermore, people with good self-control prioritize needs over

temporary desires. When money is received, it is not spent immediately, and a portion is

always saved.

The variables listed are all significant because they provide and guide everyone in

obtaining reliable information. The researchers expected to find a correlation between the

students’ saving behavior and financial literacy based on their ability to assess

information given to them.

Conceptual Paradigm

INPUT PROCESS OUTPUT

Analysis on thesaving A propose seminar to the
Demographic profile of behavior of selected saving behavior of
BSEd2-Social Studies. BSed2-Social Studies selected BSEd2-Social
-gender students. Studies students.

-socio-economic status
Analysis on the saving
Saving behavior in
behavior when they are
terms of:
grouped according to
-Financial Knowledge their democratic profile.

-Parent Influence
-Peer Influence
-Self Control/ self-
restrain
Figure 1. Research Paradigm on Financial Literacy and Saving Behavior of Selected

BSed2-Social Studies Students for proposed program in a form of seminar.

The conceptual flow of this investigation iscontaining the designed paradigm. The

study's variables were organized according to the input-process-output (IPO) framework.

The input variable includes the demographic information, as shown in Figure 1,

respondents, especially the respondents' gender, socioeconomic status, and factors like

peer and parent influence and self-control. Additionally, it covers financial behavior,

knowledge, and decisions.

In process stage, the researchers will create a questionnaire that contains valid and

reliable information derived from credible cited sources. Next, the researchers will

administer the validated survey questionnaires to selected BSEd2-Social Studies. After

the respondents finishes to answer the survey questionnaires, the researchers will collect

the survey forms. The next step is discussing and interpreting of the results gathered.

Lastly, the researchers will analyze and interpret the data being gathered.

On the output stage, the researchers will develop a seminar which will help the

students to deeply understand the relationship between financial literacy and saving

behavior. The said seminar will discuss how those two are interrelated to one another and

how the students can wisely manage their financial resources.

Scope and Limitation

 This study would determine the financial literacy and saving behavior of selected

BSed2- Social Studies students in terms of (a)financial knowledge, (b)financial behavior

and, (c) financial decisions. It also includes (1) parent influence, (2) peer influence and,

(3) self-control. Based on the result of this study, the researcher would create a plan that

further increase the financial literacy and saving behavior of selected BSEd2-Social

Studies students.

The study was conducted in the College of Sciences, Technology,

andCommunication at General Luna Street, Maharlika Highway, Poblacion 3 Arellano

Subdivision, Municipality of Sariaya, Province of Quezon. The students were chosen

through quota sampling. The study was limited to the profiles of the respondents, such as

gender, socio-economic status.

Significance of the Study

This study will Determine the saving behavior and financial Literacy among

selected STE 2nd Year Students. Also, the main purpose of this study is to explore the

influencing factors of college students' saving behavior in College of Sciences,

Technology, and Communication. This study will be beneficial following:

Students. This research can help them to know what factors influence their

saving behavior, which aspect of their lack. In this way, it is helpful for 2 nd year students

to cultivate their saving consciousness and form proper concepts of consumption and

values. Even if they are unemployed, they will be able to become conscious of their

spending patterns and learn how to manage their meager resources.

 Parent. This study's findings well help them become more involved in their

children' financial decisions, such as whether to give them allowances and how much

money they should save. It also helps parents understand how, where and when their

children spend the most money, and how they can allocate their money to save.

Teacher. The results of this study give teachers knowledge about students'

financial literacy levels and teach them how to invest their money in a young age. They

can teach social studies disciplines, particularly economics, while incorporating financial

literacy effectively and efficiently.

Curriculum managers and administrators. This research can help universities

and educators to design some seminars, programs and finance courses to help students

manage their money in order to avoid being in a personal debt dilemma. Since the

younger generations need to learn how to study, be financially responsible, and be better

prepared for the future,

Lastly, for new researchers, the ideas presented may be used as resource manual

in conducting new researches or in testing the reliability and validity of other related

findings. This study also serves as their cross-reference that will give the, a background

or overview of the savings habit and financial literacy.

Scope and Limitation

This study focuses on saving behavior and financial literacy of selected BSEd 2-

Social Studies students. It will be conducted during the second semester of SY 2022-

2023. The type of research instrument that the researchers going to use will be the
researchers-made questionnaires that are validated by validators who are expert on the

field. The said questionnaires are based on the cited literatures that will support and help

to give a strong information for more effective research questionnaire. The researchers

will be using simple random technique to select the respondents for this study. The

selected respondents are belonging to 2nd year students of Schools of Teacher Education

(STE) Social Studies department College of Sciences, Technology and Communication

Inc. (CSTC). This study will be using the Pearson Correlation Coefficient (Pearson R) to

determine the correlation between the saving behavior and financial literacy of the

selected respondents. All the date that will be gathered are based on the respondent’s

survey response.

Definition of Terms

Within the framework of the research. A fundamental definition was found helpful to

uncover the findings for educational use.

Saving Behavior Kasmir (2019) defined saving as any purposeful conduct based on

desire that is produced when a person knowingly chooses one of the available alternative

actions. Saving behavior is an honest and positive attitude that incorporates self-control.

Financial literacy refers to the knowledge in decision and spending money. Entails

knowing just enough to gain confidence in planning for the future when handling your

finances and dealing with the emotional state that comes with it (National Bank, 2020).

Social Studies Students will be the respondents of our research because they take

economics classes by learning it, students will understand how their financial decisions
have an impact on their future, as well as the future of society. As stated by (Cody, 2020)

"Social studies" is a broad word that incorporates subjects of study linked to culture,

governance, civics, and the general interactions of people within a complex national and

global framework. This includes war, technology, law, religion, and immigration.

Cody, E. (2020b, December 1). How Many Years of Social Studies Do You Need?

ThoughtCo. https://www.thoughtco.com/years-of-social-studies-needed-

788863#:~:text=Social%20studies%20is%20a%20broad%20term%20that

%20can,studies%2C%20and%20many%20want%20to%20see%20three

%20years.

McGurran, B. (2021, June 8). What Is Financial Literacy and Why Is it Important?

Experian. https://www.experian.com/blogs/ask-experian/what-is-financial-

literacy-and-why-is-it-important/

Financial behavior, confidence, risk preferences and financial literacy of university

students. (n.d.). Taylor &

Francis. https://www.tandfonline.com/doi/full/10.1080/23322039.2018.1512366?

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Borad, S. B. (2022, September 23). Types of Financial Decisions. eFinanceManagement.

https://efinancemanagement.com/financial-management/types-of-financial-

decisions
Chalimah, S. N. (2019, April 10). The Saving Behavior of Public Vocational High School

Students of Business and Management Program in Semarang | Journal of

Economic Education.

https://journal.unnes.ac.id/sju/index.php/jeec/article/view/29741

View of Parental and Peer Influence on the Saving Behavior of the Youth. (n.d.).

https://www.nepjol.info/index.php/irjms/article/view/28035/23112

Petpairote, W. (2023, January 2). Financial skill and self-control affecting the saving

behaviour of income earners in Thai municipalities. International Journal of

Innovative Research and Scientific Studies -.

http://www.ijirss.com/index.php/ijirss/article/view/1089

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