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Understanding Barriers to Financial Literacy Among ABM Senior High School
Students of Angeles City National High School

Introduction

In Partial Fulfillment of the requirements

for the Academic Track
Accountancy, Business, and Management Strand

Dagal, Gadjferb Ezekiel

April 2023
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Table of Contents

Introduction ……………………………………………. 1
General Background …………………………………………….
Information 1
Scope of the Study ……………………………………………. 5
Limitations and …………………………………………….
Delimitations 5
Significance of the Study ……………………………………………. 6
Research Problem ……………………………………………. 7
Research Questions ……………………………………………. 7
Review of Related …………………………………………….
Literature 8
Synthesis ……………………………………………. 10

Reference
12
s ………………………………………………………………….
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Introduction

General Background Information

Financial literacy refers to the knowledge and skills required to manage one's

personal finances effectively. This includes understanding financial concepts such as

budgeting, saving, investing, credit, and debt management, and making informed

financial decisions (O'Neill, 2013). In today's complex financial landscape, financial

literacy is essential for individuals to navigate and make informed decisions about

their personal finances. Unfortunately, research has shown that many individuals,

particularly young people, lack financial literacy skills. According to the National

Financial Educators Council (NFEC), only 24% of millennials (ages 18-34)

demonstrate basic financial literacy skills (NFEC, 2021).

Senior high school students are a particularly vulnerable population when it

comes to financial literacy. These students are at a crucial stage in their lives, where

they are beginning to make independent financial decisions and managing their

personal finances. However, studies have shown that many senior high school

students lack the financial knowledge and skills necessary to make informed

financial decisions (Hira & Loibl, 2013).

Research has shown that many high school students lack the necessary

financial literacy skills to manage their finances effectively (Chen & Volpe, 2013;

Mandell, 2013). According to a study by the National Financial Educators Council

(2018), only 17% of high school students were able to answer basic financial literacy

questions correctly. Similarly, a study by the FINRA Investor Education Foundation

(2018) found that only 24% of millennials could answer basic financial literacy

questions correctly. These statistics highlight the need to improve financial literacy
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education in schools, particularly for senior high school students. This lack of

financial literacy can have serious long-term consequences for these students,

including increased debt, poor credit scores, and limited financial opportunities

(Mandell & Klein, 2013). Therefore, understanding the barriers that senior high

school students face in developing financial literacy skills is critical.

Senior high school students face several barriers to developing financial

literacy skills. One of the significant barriers is the lack of access to financial

resources. Many senior high school students do not have access to financial

resources such as bank accounts, credit cards, or investment accounts, which limits

their exposure to financial management practices (Epperson, 2017).

One of the primary barriers to financial literacy among senior high school

students is the lack of financial education in the education system. Many senior high

school students do not receive formal financial education in school, and when they

do, it is often limited or inadequate. For example, a study conducted by the National

Endowment for Financial Education (NEFE) found that only 13 states require high

school students to complete a personal finance course to graduate (NEFE, 2021).

This lack of financial education in schools can have significant consequences

for senior high school students. Without access to financial education, these students

may lack the basic financial knowledge and skills necessary to manage their

personal finances effectively. Furthermore, the absence of financial education can

perpetuate cycles of financial illiteracy, as these students may be unable to teach

their own children about personal finance in the future.

Another barrier to financial literacy among senior high school students is

socioeconomic status and parental influence. Research has shown that students
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from low-income families are less likely to receive financial education at home and in

school and are, therefore, more likely to lack financial literacy skills (Hira & Loibl,

2013). Additionally, parents who lack financial literacy skills themselves may be

unable to teach their children about personal finance, creating a generational cycle of

financial illiteracy.

Cultural factors can also play a role in shaping financial literacy skills among

senior high school students. Different cultural groups may have unique perspectives

on money, saving, and spending, which can influence their financial behaviors. For

example, research has shown that Asian Americans tend to save more than other

ethnic groups and are more likely to view debt as negative (Kim & DeVaney, 2013).

On the other hand, Hispanic Americans tend to have less financial knowledge and

are more likely to use payday loans and other high-interest financial products (Cude,

Lawrence, Lyons, & Metzger, 2003).

Financial literacy programs have been developed to address the barriers to

financial literacy among senior high school students. These programs aim to provide

students with the knowledge and skills necessary to make informed financial

decisions. However, the effectiveness of these programs in improving financial

literacy among senior high school students is still unclear.

Some research has shown that financial literacy programs can improve

financial literacy skills among senior high school students (Mandell & Klein, 2013).

However, other studies have found that these programs have limited effectiveness in

changing financial behaviors (Lusardi, Mitchell, & Curto, 2013). Furthermore,

financial literacy programs may not be accessible to all senior high school students,

particularly those from low-income families or marginalized communities.

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To address the barriers to financial literacy among senior high school students,

policymakers and educators need to understand the factors that contribute to these

barriers and develop strategies to overcome them. A comprehensive review of

existing research on financial literacy among senior high school students is

necessary to identify the factors contributing to these barriers. Additionally, collecting

primary data through surveys and interviews with senior high school students will

help to understand their experiences and perspectives on financial literacy

education.

Financial literacy is a critical life skill that is essential for navigating the complex

financial landscape of today's society. Senior high school students face unique

challenges when it comes to developing financial literacy skills, including lack of

access to financial resources, inadequate financial education, and limited

opportunities to practice financial decision-making. This research aims to understand

the barriers to financial literacy among senior high school students and suggest

strategies to overcome these barriers. The findings of this study will have significant

implications for policymakers, educators, and financial literacy advocates and

contribute to the ongoing efforts to improve financial literacy education for all.
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Scope of the Study

The scope of this study will focus on identifying the barriers to financial literacy

among ABM senior high school students. The study will specifically explore the

attitudes, knowledge, and skills related to personal finance that senior high school

students possess, as well as the external factors that impact their financial decision-

making. The study will be conducted with a specific focus on the senior high school

population, and will aim to provide insights that can inform the development of

effective strategies for improving financial literacy outcomes among this group. The

study will not focus on other populations, such as college students or adults, nor will

it address broader economic or financial issues beyond the context of personal

finance education for senior high school students.

Limitations and Delimitations

The limitations of this study include its focus on a specific geographic location,

which may limit the generalizability of the findings to other regions or countries.

Additionally, the study will rely on self-reported data from senior high school

students, which may be subject to biases or inaccuracies. Furthermore, the study will

only explore the barriers to financial literacy and will not examine the effectiveness of

specific financial education programs or interventions.

The delimitations of this study include its focus on the senior high school

population and its aim to provide insights that can inform the development of

effective strategies for improving financial literacy outcomes among this group. The

study will specifically explore the attitudes, knowledge, and skills related to personal
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finance that senior high school students possess, as well as the external factors that

impact their financial decision-making. However, the study will not examine financial

literacy outcomes among other populations, such as college students or adults, nor

will it address broader economic or financial issues beyond the context of personal

finance education for senior high school students.

Significance of the Study

The findings of this research will have significant implications for policymakers,

educators, and financial literacy advocates. The study will provide insights into the

factors that contribute to the barriers to financial literacy among senior high school

students and suggest strategies to overcome these barriers.

Policymakers. Policymakers can use these findings to inform the development

of policies that support financial literacy education in schools.

Educators. Educators can use the findings to develop more effective financial

education programs that address the specific needs of senior high school students.

Financial Literacy Advocates. Financial literacy advocates can use the

findings to raise awareness about the importance of financial literacy education and

advocate for more comprehensive financial education programs in schools.

Other Researchers. This research can be beneficial to other researchers as it

provides insights into the primary barriers to financial literacy among senior high

school students and explores how these barriers vary based on socio-economic

background. These findings can serve as a basis for future research in the field of

financial education and can help researchers to develop more effective interventions

and strategies for promoting financial literacy among young people.

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Research Problem

Despite the importance of financial literacy for young people, ABM senior high

school students face various barriers that limit their ability to acquire financial

knowledge and skills. The research aims to identify the primary barriers to financial

literacy among senior high school students, explore how these barriers differ based

on socio-economic background, and propose effective strategies for addressing

these barriers and improving financial literacy outcomes among this population.

Research Questions

Financial literacy is a critical life skill that can impact the financial well-being of

individuals and communities. However, many senior high school students face

barriers that limit their ability to acquire financial knowledge and skills. This study

aims to identify the primary barriers to financial literacy among senior high school

students, examine how these barriers differ based on socio-economic background,

and propose effective strategies for addressing these barriers and improving

financial literacy outcomes among this population.

Specifically, this sought to answer the following questions:

1. What are the primary barriers to financial literacy among senior high school

students?

2. How do these barriers differ based on socio-economic background?

3. What strategies can be used to address these barriers and improve financial

literacy among senior high school students?

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Review of Related Literature

Financial literacy is an important life skill that is crucial for individuals to make

informed decisions about their finances. Braunstein and Welch (2019) conducted a

review of the literature on financial literacy education, highlighting the importance of

financial literacy in improving financial decision-making and outcomes.

Lusardi and Mitchell (2014) further emphasize the economic importance of

financial literacy, as it is positively related to wealth accumulation, retirement planning,

and investment behavior.

Kaliyaperumal and Viswanathan (2021) specifically reviewed the literature on

financial literacy among senior high school students, noting the lack of financial literacy

education in high schools and the need for interventions to improve financial knowledge

and behavior.

Similarly, Lin and Brown (2020) highlighted the importance of financial literacy

among young adults, as they face unique financial challenges and decisions during a

critical period of their lives.

Duvendack, Palmer-Jones, and Reed (2018) conducted a systematic review of

the impact of financial inclusion and financial literacy on poor individuals in low- and

middle-income countries. They found that financial literacy interventions can have a

positive impact on financial behavior, but the evidence on the impact of financial

inclusion is mixed.

In the Philippines, several studies have been conducted to assess the financial

literacy of senior high school students. De Vera (2019) conducted a study that assessed
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the financial literacy of senior high school students in public and private schools. The

study found that there was a significant difference in the financial literacy scores of

students in public and private schools, with private school students having higher scores.

Duque and Salas (2018) conducted a study to determine the financial literacy of

senior high school students in Quezon City. The study found that most students had a

low level of financial literacy and had little knowledge about personal finance. Similarly,

Lim and Briones (2019) also assessed the financial literacy among Filipino high school

students and found that there was a lack of knowledge about basic financial concepts.

To address the issue of financial literacy among senior high school students,

Abug (2021) conducted a study on the effect of a financial literacy program on the

financial behavior of senior high school students. The study found that the financial

literacy program significantly improved the financial behavior of the students.

Angeles (2020) conducted a review of literature on financial literacy and personal

finance education in the Philippines. The study found that financial literacy programs

were not widely implemented in the country and that there was a need for a more

comprehensive approach to financial education.

Overall, these studies suggest that there is a need to improve the financial

literacy of senior high school students in the Philippines. This can be achieved through

the implementation of effective financial literacy programs that can help students

develop the necessary skills and knowledge to make informed financial decisions.
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Synthesis

The importance of financial literacy as a life skill cannot be overstated. The

literature on financial literacy education highlights how it can improve financial decision-

making and outcomes, as well as positively impact wealth accumulation, retirement

planning, and investment behavior. Furthermore, financial literacy interventions can have

a positive impact on the financial behavior of individuals in low- and middle-income

countries.

Studies conducted in the Philippines show a lack of financial literacy among

senior high school students. While there is a significant difference in financial literacy

scores between public and private school students, both groups have a low level of

financial literacy and little knowledge about personal finance. These findings emphasize

the need for interventions to improve financial knowledge and behavior among Filipino

high school students.

One such intervention is a financial literacy program, which has been found to

significantly improve the financial behavior of senior high school students. However,

financial literacy programs are not widely implemented in the Philippines, indicating a

need for a more comprehensive approach to financial education.

Improving financial literacy among senior high school students in the Philippines

is crucial because young adults face unique financial challenges and decisions during a

critical period of their lives. The lack of financial literacy education in high schools can

lead to poor financial decision-making, which can have long-term consequences for

individuals and the economy as a whole.

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To address this issue, effective financial literacy programs must be implemented

in high schools. These programs can help students develop the necessary skills and

knowledge to make informed financial decisions, leading to improved financial behavior

and outcomes. A comprehensive approach to financial education, which includes

practical applications and real-life examples, can help ensure that students understand

the relevance of financial literacy to their lives.

The literature on financial literacy emphasizes its importance in improving

financial decision-making and outcomes, as well as positively impacting wealth

accumulation, retirement planning, and investment behavior. Studies conducted in the

Philippines highlight the need for interventions to improve financial knowledge and

behavior among senior high school students. Effective financial literacy programs must

be implemented in high schools to help students develop the necessary skills and

knowledge to make informed financial decisions. A comprehensive approach to financial

education can help ensure that students understand the relevance of financial literacy to

their lives and improve their financial behavior and outcomes in the long term.
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