Analysis on Financial Literacy of ABM Students in CCNHS

A Qualitative Research

Presented to:

Calbayog City National High School

Senior High School Department

Calbayog City

In Partial Fulfillment of the Requirement in Practical Research I

Researchers:

Amante, Carlyn Faith A. Doroja, Gerard Eric B.

Cababat, Vince Benedict L. Elliott, Andrea Marie C.

Cabriana, Beverly M. Hoyo-a, Marvin S.

Cajeme, Kleint Arnold M. Mercader, Regine S.

Casiracan, Andrew Louiwe M. Casin, Necolette B.

Trinidad, Melvin Fern

 Chapter 1

The Problem and its Setting

Introduction

Despite the crucial role money plays in shaping our world, there remains a

constant risk of mismanaging funds and experiencing abrupt loss. The reality is that

nearly everything in life comes with a high price tag, including water, food, shelter,

clothing, and necessary equipment (Shongwe, 2017). Regrettably, earning money is

a challenging endeavor for many individuals, often leading to long hours of work for

meager salaries that barely cover daily expenses.

The COVID-19 pandemic had a significant impact on the Philippine economy

and the financial well-being of Filipinos, including students. The strict lockdown

measures and disruptions in business operations resulted in job losses and reduced

incomes for many individuals and families. This led to financial hardships and

challenges in meeting basic needs. According to the Philippine Statistics Authority

(PSA, 2022), approximately 18.1 percent of Filipinos were estimated to be living

below the poverty line in 2021. A significant issue prevalent today involves the

continuous rise in prices of goods and services, attributed to corruption and the

recorded inflation rate of 7.6 percent in the Philippines as of March 2023 (PSA,

2023). These escalating costs significantly impact students who have limited

financial resources or rely on allowances, hindering their ability to afford basic

necessities. An allowance refers to a specific amount of money given to an individual

at regular intervals for a specific purpose and students often require these funds for

purchasing school supplies like ballpoint pens, notebooks, and other academic
materials. It is imperative to consider whether some students are spending their

money without adequately considering the potential consequences.

The pandemic has had a lasting and far-reaching impact on the economy and

financial behavior of citizens worldwide. Research conducted by the Organization for

Economic Co-operation and Development (OECD) in selected Asian economies,

namely Cambodia, Indonesia and Malaysia found that only relatively small

percentages of consumers used the occasion of the pandemic to look for financial

information and advice to a greater extent than before the pandemic (OECD, 2022).

The disruption caused by lockdowns and remote learning has not only led to

financial challenges but has also highlighted the importance of financial resilience

and planning. As the economy recovers in the post-pandemic period, it is crucial to

provide students with comprehensive support, guidance, and financial literacy

education to help them navigate the changing economic landscape and develop

responsible financial behaviors for their future.

The objective of this study is to investigate how students in the Accountancy,

Business, and Management (ABM) strand, specifically those enrolled at Calbayog

City National High School, manage their finances. According to College Choice,

there are seven major expenses that students may encounter: tuition fees, room and

board, textbooks and school supplies, equipment (such as laptops and bond

papers), personal expenses (including clothing and groceries), transportation, and

school and activity fees (Alder, retrieved 2019). This study aims to determine how

much ABM students spend in each of these expense categories and to draw

conclusions about the levels of financial awareness based on the data collected.
 The study also proposes to create an infographic as the output of the study on

how ABM students manage their finances at Calbayog City National High School of

which holds significant value. Infographics are visual representations of data and

information that are easily digestible and engaging for viewers. By utilizing the

emerging results of the study to create an infographic, the research findings can be

effectively communicated to a wider audience, including students, parents,

educators, and policymakers. The infographic can provide a comprehensive

overview of the major expenses encountered by ABM students, highlighting the

specific areas where financial management may be lacking or successful. It can also

present key insights regarding the levels of financial awareness among the students,

enabling stakeholders to understand the challenges faced by students in managing

their finances and potentially implement targeted interventions. The infographic will

serve as a powerful tool for raising awareness, fostering discussions, and promoting

financial literacy among ABM students, ultimately contributing to their overall

financial well-being and future success.

Theoretical Framework

Financial Management involves a complex set of behaviors and decisions that

differ in importance and ease of implementation based on an individual or family's

needs, priorities, and skills. Different theories and models provide various roadmaps

for understanding financial behavior and awareness, with insights drawn from

psychological, sociological, and economic fields. This study aims to examine how

ABM students are affected by three specific theories: the Financial Socialization

Theory (FST), Theory of Planned Behavior, and Consumer Information Processing

(CIP) Theory.

Financial socialization theory (FST) of William J. Beverly and Sonya L. Britt

in 2012, refers to the process by which individuals acquire and cultivate values,

attitudes, standards, norms, knowledge, and behaviors that contribute to their

financial well-being and overall financial stability (Danes, 1994, p. 128). It

encompasses the various influences, experiences, and teachings individuals

encounter throughout their lives that shape their understanding and approach to

personal finance. Financial socialization covers much more than learning to function

effectively in the marketplace. Children learn about finances through observation,

positive reinforcement, practice and participation, and deliberate instruction from

parents. Direct influences such as family discussions and keeping track of allowance

could increase knowledge and form attitudes, values, and behaviors (Hira, 1997;

Danes, 1994). It highlights the influence of family, peer groups, and educational

institutions in shaping individuals' financial knowledge, attitudes, and behaviors. By

considering the impact of financial socialization, the study can gain insights into the

factors that contribute to varying levels of financial awareness among individuals,

particularly students. This understanding can inform the development of strategies

and interventions to promote and enhance financial awareness among students for

their long-term financial well-being.

On the other hand, the Theory of Planned Behavior (TRA) was developed

by Icek Ajzen as an attempt to predict human behavior (Ajzen, 1991). This theory

proposes that behaviors are influenced by intentions, which are shaped by three

factors: attitudes, subjective norms, and perceived behavioral control. Additionally,

external factors can directly influence behaviors, irrespective of intentions,

depending on the individual's level of control over the behavior and the accuracy of

their perception of control. Applying TPB allows for the assessment of students'

attitudes towards financial awareness, the influence of subjective norms from their

social environment, and their perceived control over engaging in financial awareness

behaviors. Understanding these factors enables the identification of the determinants

of students' intentions to enhance their financial awareness. Consequently, the

findings can inform the development of targeted interventions and educational

programs aimed at promoting and enhancing financial awareness among students.

And lastly, Consumer Information Processing (CIP) Theory developed by

Peter Wright and David W. Beatty in 1986. can be used to provide the most

important and useful information for financial behavior change. The theory involves

five steps: selecting the most important and useful points to communicate, providing

financial information that is easy to obtain, clear, and draws the consumer's attention,

learning keyways to synthesize financial information, keeping in mind that people

have probably made related financial choices in the past, and designing financial

information tailored to the audience and placing it conveniently for use. (National

Institutes of Health, 2008). By following the five steps of the theory, the study will

select important points, present clear and accessible financial information,

synthesize key concepts, consider participants' past financial choices, and design

tailored information that is conveniently accessible. By applying CIP Theory, the

study aims to enhance the financial awareness and decision-making skills of the

participants, facilitating positive changes in their financial behavior.

This study examines how three specific theories – Financial Socialization

Theory, Theory of Planned Behavior and Consumer Information Processing Theory -

are essential in assessing the levels of financial awareness of ABM students. The

results suggest that a combination of these theories can provide a theoretical

framework for promoting financial behavior change.

Conceptual Framework

 Selecting the participants

 Conducting the interview to  Creating an infographic as

What is the profile of the
12 participants the output to effectively
participants in terms of:
 Gathering of data communicate the findings on
1.1. Age;
information how ABM students manage
1.2. Sex;
 Interpreting and analysis of their finances. The
1.3. Address;
the result to determine the infographic aims to contribute
1.4. Social class;
financial awareness of ABM to the students' financial well-
1.5. Allowance?
Students being and future success.

 Finalizing the results

Figure 1. Conceptual Paradigm shows the flow of the study

This study will gather data such as age, sex, address, social class, and allowance to 12 participants. The study will

conduct an interview based on the research questions. After gathering and analyzing results, the study proposes to create an

infographic material to help contribute to the financial well-being and raise financial awareness to the ABM students.
Statement of The Problem

The study aims to determine the Analysis of Financial Literacy of ABM

Students in Calbayog City National High School (CCNHS).

Specifically, this study seeks to answer the following questions:

1. What is the profile of the participants in terms of:

1.1. Age;

1.2. Sex;

1.3. Address;

1.4. Social class; and

1.5. Allowance?

2. What is the Financial Literacy of ABM students in terms of:

2.1. Savings;

2.2. Budgeting; and

2.3. Spending behavior?

3. How do the participants manage their finance?

4. Based on the findings, what infographic material can be proposed to help ABM

students to increase their financial literacy?

Significance of The Study

This study is conducted with the goal of supplying critical information and

expertise regarding the chosen issue from recent studies and associated sites

required for the individual's predicted importance, as follows:

Students. This study shows that by planning ahead and starting to save early,

students can set themselves up for success financially and academically.

Teachers. This study will assist them in taking action to be able to

successfully make their students' informed choices about money and to build up their

financial literacy, which will serve them well as adults.

Working Students. This study can improve their management skills and

encourage them to start budgeting, saving, and investing early.

Researchers. This study may serve as a guide and navigator for them in

locating credible, reliable, and comparable aspects that are known as vital facts for

further comprehension on the topic.

Future Researchers. This study will be a great reference for any researcher

who wishes to do a similar study to better understand the norms behind financial

awareness.

Budget Officer. This research can help them with efficient budget

management, allowing them to anticipate for future needs and allocate funds wisely.
Definition of Terms

To completely understand the study efficiently, the terms listed below are

relevant and helpful to cut vocabulary difficulties which are defined operationally and

conceptually:

Accountancy, Business and Management (ABM). A strand in Senior High

School that focus on the basic concepts of financial management, business

management, corporate operations, and all things that are accounted for.

Budgeting. The act of planning future savings and spending Purchasing

Behavior. It is the decision processes and act of a person involved in buying and

using products.

Financial Awareness. Knowledge in one's own financial situation in terms of

preparation and handling financial resources and the different methods of saving.

Financial Management. It is gaining an understanding of your financial

situation to make the most of your asset in day-to-day life. present.

Levels. A rank or an extent of an entity to which something happens or is

present.

Savings. The money one has saved, or it provides a financial "backstop" for

life uncertainties and increases feeling of security and peace of mind.

Financial literacy. The process of gaining knowledge and ideas about

financial terms and risks and developing skills to apply this information to increase

the welfare level of individuals and society, ensure their participation in economic life,

and make the right decisions in financial understanding (OECD, 2013).

 Chapter 2

Review of Related Literature and Studies

This chapter presents the related studies and literature after the in-depth

research done by the researchers. This section serves as a foundation for the study,

as it enables the researchers to identify gaps in the literature that need to be

addressed. In addition, this section shows relevant information provided by different

sources in determining the levels of financial awareness of ABM students in CCNHS.

Related Literature

The International on Financial Education has defined financial literacy as "a

combination of awareness, knowledge, skills, attitudes, and behaviors necessary to

make sound financial decisions and ultimately achieve individual wellbeing"

(Atkinson and Messy, 2012). The definition makes it clear that financial literacy is

something more than knowledge, it also includes attitudes, behavior, and skills. It

stresses the importance of the decision-making applying knowledge and skills to

real-life wellbeing.

Similarly, in a national perspective, the National Financial Educators

Council states that financial literacy is "possessing the skills and knowledge on the

financial matters to confidently take effective action that best fulfills an individual's

personal, family and global goals" (Field, 2023). This concept could be used

relatively interchangeably as they reflect most common international term, financial

literacy, for the purpose of this measurement survey (OECD INFE, 2011). Financial

literacy is knowledge of financial concepts and how the knowledge is used to make

financial decisions, considering available resources and the unique situation for each

individual or family (Delgadillo, 2014).

 Furthermore, the importance of financial education has increased in recent

years as a result of financial market developments and demographic, economic and

policy changes. By providing information to policymakers on effective financial

education programs and by facilitating the exchange of views and sharing of

experience in the field of literacy surveys in member countries, highlights the

economic, demographic and policy changes that may financial education

increasingly important (OECD, 2005).

Some feel that financial literacy starts at home. Financial expert Bill

Hardekopf said that school-based financial education is great, but that financial

education is the parents' responsibility (Engel, 2015). High school graduated should

be grounded in the basics of personal finance and possess the skills and knowledge

necessary to make informed decisions. They will be faced with an array of complex

financial services and sophisticated products. Without knowledge and skills in

personal finance, making rationale, informed decisions on the use of their money

and planning for future events, such as retirement, will be difficult.

Related Studies

In relation to these, Dulin (2016) states that a higher level of financial literacy

is levels than it is among those in lower year levels. The desire to become more

financially literate is greater in women than in men. Also, in preparing for the future,

they are better prepared. More financially literate students than younger ones are

those who are 20 years of age and older. The amount of money a student has saved

depends on how much money his or her parents make. Compared to students from

a larger number of family members also likely to be more frugal. The students'
parents, sisters/brothers, friends, relatives, grandparents, and classmates are the top

families with only one child, students with six sources of financial advice.

Meanwhile, Lusardi and Mitchell (2014) aimed to assess the level of

financial awareness among the U.S. adult population. The researchers found that

many Americans lack basic financial knowledge, such as the understanding of

compound interest, inflation, and risk diversification. The study also showed that

those who were financially literate were more likely to plan for retirement, save for

emergencies, and make informed financial decisions. Moreover, the study revealed

that financial literacy is not evenly distributed across different demographic groups.

The researchers found that women, minorities, and those with lower levels of

education were less likely to be financially literate. The study suggests that financial

education programs could help to improve financial literacy and reduce financial

vulnerability among these groups.

Moreover, the study by Fernandes et al. (2014) conducted a literature review

on the effects of financial education on financial literacy and behavior. The study

found that financial education can improve both financial literacy and behavior,

although the effects may vary depending on the type of education, the target

audience, and the timing of the intervention. The review also highlighted the need for

more rigorous evaluation of financial education programs and for a better

understanding of the mechanisms through which financial education affects

behavior. The study concludes that financial education can be a valuable tool for

promoting financial well-being, but that it should be tailored to the needs and

characteristics of the target audience.

 Additionally, Hastings et al. (2013) focused on the impact of financial

education interventions on financial awareness among young adults in the United

Kingdom. The research aimed to evaluate the effectiveness of various financial

education programs, including online tutorials, workshops, and seminars, in

improving financial literacy and awareness. Financial education interventions were

found to positively impact the financial behavior and knowledge of young adults.

Participants who received such interventions demonstrated increased tendencies to

save, budget, and manage their finances responsibly. Moreover, these interventions

helped young adults understand complex financial concepts, including interest rates,

inflation, and investments. The study concluded that financial education interventions

effectively improve financial awareness and literacy among young adults, suggesting

the need for their promotion and integration into educational curricula. These findings

have important implications for policymakers, financial institutions, and educators

aiming to enhance financial literacy and foster responsible financial behavior among

young adults.

This review reveals that financial literacy is defined as a combination of

awareness, knowledge, skills, attitudes, and behaviors necessary to make sound

financial decisions and ultimately achieve individual well-being. Many studies have

highlighted the importance of financial education in improving financial literacy, as

well as the significant role that parents and schools play in promoting financial

literacy. Additionally, the literature shows that financial literacy is not evenly

distributed among different demographic groups, and that women, minorities, and

those with lower levels of education tend to have lower levels of financial literacy.

The present study aims to examine the level of financial awareness among ABM

students in CCNHS and to identify factors that contribute to financial literacy, such as
age, income, and education. The findings of this study can help inform policymakers

and educators on how to design and implement effective financial education

programs that can improve financial literacy among students.

Chapter 3

Methodology

This chapter presents the designs used to form this research, the studying of

the participants, the data gathering process, and the instruments, procedures, and

data analysis that were used in the research. This provides a comprehensive

overview of the systematic approach taken to gather and analyze data, ensuring the

rigor and validity of the research findings.

Research Design

The study shall utilize a qualitative research design, specifically, narrative

research design. This will determine the causal relationship between levels of

financial awareness and the profile of participants. Moreover, this will provide a

deeper understanding of the underlying factors influencing their financial

management.

Narrative research aims to explore and conceptualize human experience as it

is represented in textual form. Aiming for an in-depth exploration of the meanings

people assign to their experiences, narrative researchers work with small samples of

participants to obtain rich and free-ranging discourse (Van Breukelen, 2010). It aims

to explore the complexities and nuances of human experiences, behaviors, and

meanings through storytelling e.g., in-depth interviews, focus groups, written

documents and diaries.

Research Environment

The study will be conducted at Calbayog City National High School during the

school year 2022-2023, focusing on the Senior High School Building's Accountancy,

Business, and Management (ABM) Department. This research environment offers an

ideal setting to explore the levels of financial awareness and management among

ABM students. The school's diverse student population provides valuable insights

into the financial behaviors and challenges faced by students in this department. By

focusing on the ABM Department within the Senior High School Building, the study

can gather targeted data and gain a comprehensive understanding of the financial

dynamics and practices of ABM students. Calbayog City National High School is

located at Gomez Extension, P2 Brgy. Hamorawon, Calbayog City, Samar,

Philippines.
 Figure 2. Satellite View of Calbayog City National High School (Google, 2023)

Research Participants

The research study is centered on ABM (Accountancy, Business, and

Management) students who are currently enrolled in Calbayog City National High

School with a total population of ____ students. The ABM academic track is

designed to equip students with the necessary skills and knowledge to pursue

careers in the fields of finance, marketing, and management. The primary research

participants for this study consist of a sample population of 12 ABM students which

will be selected through a stratified method of sampling, are to represent the ABM

student body in Calbayog City National High School.

Data Gathering Techniques

The research study will be conducting an in-depth interview with participants.

The researchers shall prepare a set of interview-guide questions to be used in the

said interview. The questions shall be pertaining to variables that could assess the

student’s financial awareness, divided into two categories: questions about the

profile, and questions on their financial behavior e.g., budgeting.

 The prepared interview-guide questions shall be answered by 12 ABM

students from Grade 11 to 12. In selecting the participants, the researchers will

implement stratified sampling method. The sections of the ABM Department shall be

the “strata” and 2 participants each section will be selected through simple random

sampling.

Data Analysis

The present study will use the thematic analysis method of analyzing the

gathered data. Thematic Analysis is a method for systematically identifying,

organizing, and offering insight into patterns of meaning (themes) across a data set.

It allows the researcher to see and make sense of collective or shared meanings and

experiences (Braun & Clarke, 2006). The researchers shall assign codes,

meaningful segments of the data that capture key concepts, ideas, or patterns. The

codes will be the basis in grouping the statements to form initial themes. Through

this the researchers shall be able to draw conclusions based on the responses.
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Guide Questions:

1. What is your socio-economic status? (Working Class, Middle Class, Upper

Class, etc.)

2. How much is your allowance? (Please specify if per day, per week, etc.)

3. How much do you spend on your personal expenses? (Mobile load,

accessories, etc.)

4. How much do you spend on food daily?

5. How much do you spend on your daily transportation? Explain.

6. How much do you spend on school related activities?

7. How much do you save? (Please specify if per day, per week, etc.)

8. How do you successfully manage your daily allowance with these expenses?

9. How much do you know about budgeting? Explain.

10. What kind of person do you consider a good handler of finances? Explain.

11. Do you consider yourself knowledgeable when it comes to properly financing

your daily allowance? Why or why not?