Northeastern Mindanao Colleges

Corner Rizal and Amat St.,

8400, Surigao City

FINANCIAL LITERACY OF SENIOR HIGH SCHOOL

STUDENTS OF NORTHEASTERN

MINDANAO COLLEGES

A Research Paper

Presented to the Senior High School Department

Northeastern Mindanao Colleges

Surigao City

In Partial Fulfillment of the Requirements for

Practical Research 2

By

JOSHUA JAMES M. MAGPATOC

JOHN KERRY M. MONTEROS
SHEN VRIZEL L. SAYSON
WINFORD LEE V. TORING
DAN CARTER YU

May 2023

TABLE OF CONTENTS
 Northeastern Mindanao Colleges
Corner Rizal and Amat St.,
8400, Surigao City

TITLE PAGE i

TABLE OF CONTENTS ii

CHAPTER

1 THE PROBLEM AND ITS BACKGROUND 1

Introduction 3

Framework of the Study 5

Statement of the Problem 9

Significance of the Study 9

Scope and Limitation 10

Definition of Terms 11

2 REVIEW OF RELATED LITERATURE 14

Synthesis of the Review 23

3 METHODS 24
 Northeastern Mindanao Colleges
Corner Rizal and Amat St.,
8400, Surigao City

Research Design 24

Participants 25

Instrument 25

Data Gathering Procedure 25

Data Analysis 26

4 RESULTS AND DISCUSSION

5 SUMMARY, FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS

REFERENCES

CURRICULUM VITAE

CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

 Northeastern Mindanao Colleges
Corner Rizal and Amat St.,
8400, Surigao City

Introduction

Money is the most common and Universal medium of exchange to obtain the

goods and services a person needs (Kenton, 2018). The purchasing power of the youth

today is said to be higher than any other generations before, this goes to show that the said

generation has influence that will continue affecting the world’s economies (Honigman,

2013). The idea of personal finance has been described in the literature as the awareness

and use of financial knowledge in our day to day economic activities. Many academic

researchers in the field of personal finance have chosen to define the concept as “The

ability to make informed and efficient judgement regarding the use and management of

money” (Schagen and Lines, 1996).

Studies on financial literacy were uncommon in academic publications prior to the

2008 economic crisis, but after the crisis, governments of many wealthy countries gave the

subject the attention it deserved. For instance, a personal finance advisory council was

established to promote financial literacy awareness among Americans in the wake of the

financial crisis. However, the concept of personal finance literacy is based on certain

important aspects of finance, such as borrowing and saving, interest rates, budgeting, and

financial literacy (Chen and Volpe, 1998; Remund, 2010). American spending tends to be

higher than their savings rate, according to previous studies. As a result, the nation's

savings rate was entirely negative (Sullivaa et al., 2008).

 Northeastern Mindanao Colleges
Corner Rizal and Amat St.,
8400, Surigao City

Several Researches conducted globally to measure the financial literacy among

high school students and proven that they experience an insufficient level of financial

literacy. According to Taking Stock with Teens Survey Teenagers in the United States

spend on clothing, accessories and footwear around 40% of their allowance.

Obsessive Spending behavior, also called compulsive buying, is an addiction that

triggers pleasure receptors in the brain, much like drugs (Kagan, 2018). However, when it

comes to budgeting money, many fall short as the majority of youth in the United States

have less than one thousand dollars in their savings account (Elkins, 2017). New Research

even suggests that spending money can make humans happier, as long as the money spent

on is oneself (Nield, 2017).

Senior high school students at Northeastern Mindanao Colleges experience

financial difficulties. Finances are important in high school, particularly because there are

many expenses like those for school supplies, funding, and involvement in fundraising

events. This study also demonstrated how difficult it is for students to meet their basic

necessities as well as their wants.

Students are learning how to handle their finances as they mature. Humans now

need the practical ability of budgeting if they want to keep and advance their social status.

Budgeting is significant for financial stability, ensuring oneself of being able to pay for

everyday expenses. One of the reasons why students waste their money is because they
 Northeastern Mindanao Colleges
Corner Rizal and Amat St.,
8400, Surigao City

don't prioritize their spending properly. The spending and saving habits of a person also

mirror how financially literate he/she is. According to Simon Martin, Head of Group

Corporate Sustainability at HSBC “As the world faces further economic uncertainty, it is

important that we equip our children with the financial literacy skills that they need to

make wise decisions about how they spend and save their money.”

Framework of the Study

This study is based on the theory of Financial Literacy in a Standard & Poor’s

(S&P Global Ratings) global study. The Philippines ranked in the bottom 30 out of 144

countries surveyed, scoring only 25 percent in terms of Financial Literacy. The percentage

of households with savings during the first quarter of 2022 in the Philippines have

increased marginally to 31.1% from 30.2% in the fourth quarter of 2021 (BSP Consumer

Expectations Survey Report). Some High School Students are in personal debt due to the

financial problem, students who live in an apartment or boarding houses in particular.

Atkinson and Messy (2012) suggested that financial literacy should be taken as a

combination of awareness, knowledge, skills, attitude and behavior which are all

necessary in making sound financial decisions and achieving individual financial well-

being.
 Northeastern Mindanao Colleges
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Input Process Output

• Profile of Students • Distribution and • Evaluation of

A) Age Collection analysis students and
B) Sex of data though Financial Literacy
C) Strand questionnaire or students are
survey. identified.
• Financial Literacy
of Senior High
 Northeastern Mindanao Colleges
Corner Rizal and Amat St.,
8400, Surigao City

Figure 1. Schematic Diagram of the Study

Statement of the Problem

This study aimed to know the level of Financial Literacy of Senior High School

Students in NEMCO:

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

1.1) Age;

1.2) Sex;

1.3) Strand; and

1.4) Family Income?

2. What is the level of Financial Literacy of Senior High School students od NEMCO in

terms of:
 Northeastern Mindanao Colleges
Corner Rizal and Amat St.,
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2.1) Spending habits;

2.2) Saving habits;

2.3) Financial knowledge?

3. Is there a significant difference on the level of financial literacy of Senior High School

students of NEMCO when grouped according to profile?

3.1) Age;

3.2) Sex; and

3.3) Family Income?

Hypothesis

At 0.05 level of significance, there is no significant difference in the Senior High

School Students’ of Financial Literacy grouped according to profile.

Significance of the Study

The purpose of this study is to provide evidence of personal financial literacy

among The Senior High School Students in NEMCO. To Achieve this, the research will

benefit the following:

Students. As the main participants of the study. To have more knowledge about

the right way of spending their allowance. There will also be an examination of the money

management from Male/s and Female/s to budgeting, savings and borrowing.

 Northeastern Mindanao Colleges
Corner Rizal and Amat St.,
8400, Surigao City

Furthermore, this can raise their awareness in financial knowledge thus promoting

learning.

Teachers. It is important to have the teachers know how the school work fee

affects the students daily budgeting and expenses as a student. It is best if the teachers can

support their students not just in academic but in financial problems by giving them a lot

less cost for the project or requirements.

Parents. As the primary supporting financial of the students and personal life. This

can be beneficial to provide the ability to help the youth in a certain age range how to

budget the allowance. This can also help the parents understand where teenagers spend

most of their allowance and how they spend it on a daily basis. This can also help to

promote early education at home regarding financial management.

Future Researchers. This can help to widen or specify the topic and consume their

knowledge. They will be more confident in their answers and have better outcomes. They

can also help the understanding and effect of research topics. This can also see the factors

of the students in spending and saving habits and the correlations.

Scope and Limitation of the Study

This research focuses and conducts The Financial Literacy of Senior High School

Students in NEMCO. The study analyzes and develops money management efficiently

and also is able to identify the factors of financial literacy. The related studies used to

support this research will be taken from books, journals and websites or taken online. This
 Northeastern Mindanao Colleges
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8400, Surigao City

study is only limited to Senior High School Students in NEMCO. This research study does

not involve any local elementary department, junior high school students and college

departments or strangers. This study is only centered and focuses on Senior High School

Students in NEMCO to give the true reflection and experiences of their financial literacy.

So the researchers only conducted tests on the only available students in the Senior High

School Department.

Definition of Terms

Financial Knowledge is the objective mastery of financial definitions, terms and

concepts. (nefe.org)

Financial Literacy is the ability to understand and effectively use various financial

skills, including personal financial management, budgeting, and investing. (Investopedia)

Finances is a term for matters regarding the management, creation, and study of

money and investments. (Investopedia)

Financially Literate refers to the ability to understand and apply different financial

skills effectively, including personal financial management, budgeting, and saving.

(cleartax.in)

Saving Habits are the excess of income over consumption expenditures someone

does often or regularly. (Collins Dictionary)

Spending Habits are a way you put your plan into action. (nerdwallet.com)
 Northeastern Mindanao Colleges
Corner Rizal and Amat St.,
8400, Surigao City

CHAPTER 2

REVIEW OF RELATED LITERATURE

Since the implications of personal money are substantial to society, financial

literacy has become one of the most pressing challenges in industrialized countries in

recent years. Given that today's world markets are flooded with complex products;

financial literacy is a need. It is crucial to calculate financial literacy among people

because of people's spending habits and demand for anything material.

According to Mandell(2008a) The results of the first Jump$tart survey in 1997

were appalling, returning an average score of 57.3%. The following four biennial tests

means we’re between 50.2%-52.4%, and by 2008 the average score had dropped to

48.3%, which means that the test average has never made it to the 60% originally

designated as acceptable. Some people (young people in particular) are having to have

more financial choices in their earlier age and are increasingly getting offered to borrow

money and apply to have credit (e.g. see Roberts and Jones,2001; Lusardi et al.,2010).

A lack of Financial Knowledge has been identified as contributing to insufficient

retirement savings (Lusardi and Mitchell,2007). As Lusardi (2008) states, “individuals

need to know how to read and write financially”, by the complexity of financial problems
 Northeastern Mindanao Colleges
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and financial decisions required in everyday life. This also applies to the teenagers

growing up in a society in which financial literacy is complex (Amagir et al.,2018a).

Similarly, a study about 4Ps parents’ beneficiaries are struggling when it comes to

financial literacy especially in allocating budget for food, education, hospitalization or

medicine and savings, the parents are having a difficulty in finding the solution (Once, V.

Gabon, Dela Cruz, R. Gabon, Lacaba, 2017).

A result in India that having a high level of numeracy knowledge can be having

trouble doing financial computations and parental involvement was also found to have a

significant influence on financial literacy (JD Jagaraman, Saigeetha Jambunathan, 2018).

From having knowledge and understanding of financial concepts and risks can be useful to

have the financial decision making among adults and young people (Organization for

Economic Cooperation and Development (OECD), 2017).

Synthesis.

The Literatures cited that personal financing has been informed and efficient

judgment through the use and management of money by teaching the senior high students.

Additionally, literature cited that financial literacy focuses on contributing financial

knowledge and financial decisions.

Consumptive behavior is the tendency to buy goods or services without rational

consideration. This study aims to analyze the influence of financial literacy and reference
 Northeastern Mindanao Colleges
Corner Rizal and Amat St.,
8400, Surigao City

groups toward consumptive behavior across senior high school students. The study used a

cross-sectional design and the research location was selected purposely based on the

distance of the school from the shopping center area. Using the self-administered

questionnaire, the study involved 125 students of public high school (SMAN) at Bogor

City, that is SMAN 3 and SMAN 9. The data were analyzed using descriptive analysis and

inferential statistics. The study showed that the level of financial literacy was in the

medium category, while the reference group and the level of consumptive behavior were

in a low category. Moreover, results indicated a relationship between the characteristics of

adolescents, financial literacy, reference groups, and consumptive behavior. The

regression test found a significant negative effect of financial behavior toward

consumptive behavior. Females were more likely to be more consumptive, while reference

groups positively influenced the consumptive behavior of senior high school students.

This study examines how saving motives are related to saving habits using

Katona’s (1975) psychological classification of saving, where households save regularly

(discretionary), save irregularly (residual), or do not save. Of the 3,822 non-retired

households in the 2007 Survey of Consumer Finances, 46% saved regularly, 32% saved

irregularly, and 22% did not save. Precautionary and retirement motives increased the

likelihood of saving regularly or irregularly as compared with not saving, but only the

retirement motive separated the regular savers from irregular savers. A long-term planning

horizon and higher income increased the propensity for regular or irregular saving as

compared with not saving, and for saving regularly as compared with irregularly, while
 Northeastern Mindanao Colleges
Corner Rizal and Amat St.,
8400, Surigao City

low risk tolerance had the opposite effect. Financial advisors, educators, and policymakers

should facilitate short- to long-term goal seeking with frequent saving by individuals and

families.

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.

CHAPTER 3

METHODS

This chapter presents the methodology of the study. It includes the research design,

participants of the study, instrument that will be used, data gathering procedures, and data analysis.
 Northeastern Mindanao Colleges
Corner Rizal and Amat St.,
8400, Surigao City

Research Design

This study follows a quasi-experimental research design. The dependent variable is the

financial literacy of the senior high students and the independent variable are their demographic

profiles. It aims to find the significant relationship between these two variables in order to

determine whether the demographic profiles of the respondents affect their financial literacy.

Participants

The participants of the study include senior high school students (11th to 12th grade) of

Northeastern Mindanao Colleges (NEMCO), Surigao City, Surigao del Norte. There are a total of

thirty-five (35) respondents of varying demographic profiles.

Research Instrument

An online survey was conducted through the utilization of Google Forms. It was used in

order to have easier access to the responses as well as a faster method of data gathering. Google

Form is accessed through the internet, hence, it is spread through a link sent to various social

media platforms.

Data Gathering Procedure

The data gathering procedure included creating a questionnaire that is in line with the

statement of the problem. The questionnaire was created through Google Forms and the link was

sent to Senior High School students of NEMCO through social media platforms (e.g. private

message, group chats, and facebook post). After reaching the desired number of respondents, the

Google Forms was closed and set to not accept additional responses.
 Northeastern Mindanao Colleges
Corner Rizal and Amat St.,
8400, Surigao City

Data Analysis

The data was summarized through the Google Forms feature and was set to table format. It

is then analyzed through the utilization of Excel and finding the Analysis of Variance (ANOVA).

The ANOVA helped determine whether there is a significant difference between the demographic

profiles of the students and their financial literacy.

 Northeastern Mindanao Colleges
Corner Rizal and Amat St.,
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CHAPTER 4

RESULTS AND DISCUSSION

There were a total of thirty-five (35) respondents to the online survey conducted from June

05, 2023 to June 16, 2023. The result are as follows:

Demographic Profile

The results below show the distribution of the respondents according to their

demographic profiles including age, sex, SHS strand, and family’s monthly income.

Table 1. Age Distribution of the Respondents

Age Group Number of Respondents Frequency

15-16 5 14.3%
17-20 30 85.7%
21-25 0 0
Total 35 100%
The majority of the respondents belonged to the 17-20 years old age group with

86.7 percent. None of the respondents belonged to the 21-25 years old age group. This is

likely because the respondents were senior high school students.

Table 2. Sex Distribution of the Respondents

Sex Group Number of Respondents Frequency

Male 13 37.1%
Female 21 60.0%
Prefer Not to Say 1 2.9%
Total 35 100%
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The table 2 shows that more than half of the respondents were female with 60.00%

and only 37.1% was male. The remaining 2.9% consist of one respondent who chose not

to disclose his/her sexual orientation or gender.

Table 3. Strand Distribution of the Respondents

Strand Number of Respondents Frequency

ABM 15 42.9%
GAS 14 40.0%
HUMSS 3 8.6%
TVL 3 8.6%
Total 35 100%
The table above shows that the number of respondents from the Accountancy and

Business Management Strand (ABM) was the highest at 42.9%. It is closely followed by

the General Academic Strand (GAS) with 40.0%. There was a tie between the Humanities

and Social Sciences Strand (HUMSS) and the Technical-Vocational-Livelihood Strand

(TVL) at 8.6% each.

Table 4. Family Income Distribution of the Respondents

Family Income (PHP) Number of Respondents Frequency

10,000 below 15 42.9%
10,000 7 20.0%
15,000 3 8.6%
20,000 6 17.1%
25,000 2 5.7%
30,000 2 5.7%
Total 35 100%
In Table 4, it is shown that almost half or 42.9% of the respondents had a family

income of below 10,000 pesos monthly. On the other hand, only 5.7% had a family
 Northeastern Mindanao Colleges
Corner Rizal and Amat St.,
8400, Surigao City

income of 25,000 pesos monthly. This is the same for the 30,000 pesos monthly income. It

should be noted, however, that these are estimates by the respondents and no supporting

evidence was collected.

Levels of Financial Literacy

The Likert Scale was utilized in order to have a better data analysis. It is as

follows: 4 = Strongly Agree, 3 = Agree, 2 = Disagree, and 1 = Strongly Disagree.

Table 5. Spending Habits

Question 4 3 2 1 Average
I buy things on impulse. 4 22 8 1 2.83
I spend more on my wants than on needs. 4 13 15 3 2.51
I am able to allocate my budget to match with my spending. 5 27 3 0 3.06
I spend more on branded items than on non-branded ones. 2 10 5 0 2.26
I often spend money on others. 2 13 18 2 2.43
The results on Table 5 suggest that on average, the respondents agree that they buy

things on impulse and spend money on their wants rather than on needs but are still able to

allocate budget to match with their spendings. However, they disagree that they spend

more on branded items than on non-branded ones. They also disagree that they spend

money on others.

Table 6. Saving habits

Question 4 3 2 1 Average
I see to it that I would always have weekly or monthly
5 24 5 1 2.63
savings.
Creating a budget is part of my saving habits. 11 19 4 1 3.14
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I set aside emergency saving funds. 9 20 5 1 3.06

I save money for the things I want to buy. 13 20 2 0 3.31
I am able to determine what should be prioritized before
13 20 2 0 3.31
and during buying an item/s.
In table 6, it is shown that the respondents agree that they see to it that they would

always have weekly or monthly savings. Creating a budget is also a part of their saving

habits. They also set aside emergency saving funds, save money for the things they want

to buy, and are able to determine what should be prioritized before and during buying an

item/s. This suggests that the students have a satisfactory financial literacy level with

regards to saving habits.

Table 7. Financial knowledge

Question 4 3 2 1 Average
I learn financial management and obtain financial
7 22 5 1 3.00
knowledge through my parents.
I obtain financial knowledge and learn financial
11 19 5 0 3.17
management on my own.
I feel confident in my knowledge and ability to manage my
12 17 6 0 3.17
own finances.
I consider myself to be financially literate (able to
maximize present money in order to gain financial 10 19 6 0 3.11
stability).
I prioritize what to buy before spending money. 14 16 5 0 3.26
The table above suggests that the respondents agree that they have sufficient

financial knowledge. They have either learned through their parents or on their own. They

also feel knowledgeable enough and consider themselves financially literate. This likely

suggests that the senior high school students of NEMCO are financially literate.

Level of Financial Literacy When Grouped According to Profile

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Corner Rizal and Amat St.,
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An Analysis of Variance (ANOVA) test was conducted to determine whether there

is a significant difference in the financial literacy of students when grouped according to

their demographic profiles. A P-Value of <0.05 indicates a significant difference.

Table 8. ANOVA in Age Groups

Data Summary
Groups N Mean Std. Dev. Std. Error

17-20 30 2.9844 0.3633 0.0663

15-16 5 2.8933 0.2087 0.0933
ANOVA Summary

Degrees of Freedom Sum of Squares Mean Square

Source (DF) (SS) (MS) F-Stat P-Value
Between
Groups 1 0.0356 0.0356 0.2933 0.5918
Within
Groups 33 4.0018 0.1213

Total: 34 4.0374
In table 8, it is shown that the P-Value is 0.5891 which is greater than 0.05. This

highly suggests that there is no significant difference to the financial literacy of senior

high school students of NEMCO when grouped according to their age groups.

Table 9. ANOVA in Sex Groups

Data Summary
Groups N Mean Std. Dev. Std. Error

Male 13 3.1026 0.2989 0.0829

Female 21 2.873 0.347 0.0757
ANOVA Summary

Degrees of Freedom Sum of Squares Mean Square

Source (DF) (SS) (MS) F-Stat P-Value
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Between
Groups 1 0.4233 0.4233 3.8919 0.0572
Within Groups 32 3.4803 0.1088

Total: 33 3.9036
In table 9, it is shown that the P-Value is 0.0572 which is greater than 0.05. This

also highly suggests that there is no significant difference to the financial literacy of senior

high school students of NEMCO when grouped according to their sex groups. It is noted

that the single respondent who belonged to the “Prefer Not to Say” was not included in the

analysis.

Table 10. ANOVA in Family Income Groups

Data Summary
Groups N Mean Std. Dev. Std. Error

10,000 below 15 3.0178 0.3858 0.0996

10,000 7 2.9905 0.3207 0.1212

15,000 3 2.6889 0.3672 0.212

20,000 5 2.96 0.214 0.0957

25,000 2 2.7333 0 0
30,000 3 3.1556 0.4439 0.2563
ANOVA Summary

Degrees of Freedom Sum of Squares Mean Square

Source (DF) (SS) (MS) F-Stat P-Value
Between
Groups 5 0.4901 0.098 0.8012 0.558
Within Groups 29 3.5478 0.1223

Total: 34 4.0379
In table 10, it is shown that the P-Value is 0.558 which is greater than 0.05. This

highly suggests that there is no significant difference to the financial literacy of senior
 Northeastern Mindanao Colleges
Corner Rizal and Amat St.,
8400, Surigao City

high school students of NEMCO when grouped according to their family’s monthly

income.
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Corner Rizal and Amat St.,
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CHAPTER 5

SUMMARY OF FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

Summary of Findings

The demographic profiles showed that most of the respondents belonged to the 17-

20 years old age group. More than half of the population was Female (60.0%). Majority

of the respondents were from the strands ABM and GAS. It was also shown that almost

half or 42.9% of the respondents had a family income of below 10,000 pesos monthly. On

average, the students had positive spending and saving habits. They also had enough

knowledge on finances to consider themselves financially literate. When grouped

according to demographic profile, the Age Groups, Sex Groups, and Income Groups had a

P-Value of 0.5918, 0.0572, and 0.558, respectively.

Conclusion

The senior high school students of Northeastern Mindanao Colleges (NEMCO)

have an adequate level of financial literacy. There is also no significant difference on the

level of financial literacy of the students when grouped according to their demographic

profile specifically in Age Groups, Sex Groups, and Family Income groups. Therefore, the

demographic profile of students does not affect their level of financial literacy.

Recommendations

The researchers recommend the following for future studies:

 Northeastern Mindanao Colleges
Corner Rizal and Amat St.,
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1. It is highly recommended to increase the population size in order to have a more

reliable result.

2. The sex groups should also be more defined in order to have a clearer result.

3. There should be supporting evidence on the family’s monthly income for accuracy.

REFERENCES