The Impact Of Financial Knowledge On The Financial Literacy Of High School Students

In Second Philippines International School : A Comprehensive Analysis

Leaniel Payos, Joan Venice O. Santos, Haifa T. Attwa , Ezekiell Jesse J. Abion

Grade 12 - STEM Amber, Second Philippine International School

Inquiries, Investigation, and Immersion

Mr. Jose Anthony S. Espejo

November 12, 2023

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 The Impact Of Financial Knowledge On The Financial Literacy Of High School Students

In Second Philippines International School : A Comprehensive Analysis

Research Statement

Financial knowledge serves as the foundational aspect of what financial literacy is based on.

The varying levels of financial knowledge an individual holds are influenced by demographic

factors. The foundation of one’s knowledge allows an individual to hold a key to the adept use of

financial skills, including personal financial management and budgeting, which is deemed

crucial for making responsible financial students.

While programs for youth present a positive trend in the application of financial literacy, their

effectiveness can vary based on factors including the sources of financial education, family

history, socioeconomic level, and personal experiences. Those influenced by these factors may

have less exposure to financial concepts and resources, leading to lower financial literacy. This

may also be attributed to the ability to effectively apply financial literacy, despite the increasing

financial knowledge gained. It showcases the need for developing comprehensive financial

understanding through financial education programs. The advocation of the continuous

improvement of financial education programs highlights the perspective that the promotion of

Financial Knowledge serves as a valuable investment in shaping future decisions. This

observation emphasizes the role of recognizing the need for Financial Knowledge in the practical

application of Financial Literacy. By assessing the relationship between financial knowledge and

financial literacy, individuals will be persuaded to do the things needed to improve their financial

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knowledge. Furthermore, financial literacy instructors will be able to determine the most

effective strategy to shape the financial literacy of youth.

Aims and Objectives

Aim:

The aim of this research is to determine the impact of financial knowledge on the

financial literacy of students. This research aims to decipher the influence of financial

2.1 Introduction

2.2 Literature Review

knowledge to the decision making of students and to discern specific approaches

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and teaching methods of financial literacy education.

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 Objectives

This research specifically aims to:

● Evaluate the financial knowledge of the Second Philippine International School's

high school students at the moment.

● Determine and look into the overall financial behaviors and skills of high school

students, including their budgeting, savings, and spending habits.

● To find out whether greater financial knowledge results in higher financial

literacy, research the relationship between high school students' financial

knowledge and their level of financial literacy.

● Investigate what factors are affecting high school students' financial literacy, such

as the sources of financial education, family history, socioeconomic level, and

personal experiences.

● Give useful suggestions for strengthening financial education programs at Second

Philippine International School, including efficient tactics and means of

delivering the curriculum that would enhance students' financial literacy and

conduct.

Statement Of the Problem

1. What are the teaching methods that can be used to enhance the financial literacy of the

students?

2. What is the correlation between financial knowledge and the financial literacy levels of

students?

3. What is the impact of financial literacy in the financial well being and future financial

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 goals of the students?

4. How does financial literacy affect decision making of the students

5. What are the other factors that affect the financial literacy of the students?

Rationale for the research

Financial knowledge is the objective mastery of financial terminology, definitions, and concepts.

Financial literacy, on the other hand, is the capacity to understand and effectively use various

financial skills, such as personal financial management, budgeting, and investing. People with a

greater level of financial literacy are more likely than those with lower levels to spend less and

save money, set up an emergency fund. It is an essential component of a person's life (Hastings et

al., 2013).

The purpose of this study is to comprehend the impact of financial knowledge on a student’s

overall financial literacy. It aims to determine if the students with higher financial knowledge

will be more wise in handling their money (financial literacy), have a negative impact, or

whether it will have no impact. The results of the study will show how crucial financial

knowledge is for assisting students in making responsible financial decisions that will benefit

them in the short and long run. Moreover, It will also assess the percentage of financial literate

students of Second Philippine International School, and those who are not.

Context for the research

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This study focuses on the effects of financial knowledge education on high-school students of

SPIS's financial behavior and skills. The research aims to identify distinct methodologies and

teaching strategies for financial literacy education as well as understand the impact of financial

knowledge on students' decision-making. This research is a part of the requirements of the

subject Inquiries, Investigations, and Immersion (III) under the Academic Track – STEM Strand,

the researchers are currently conducting a study to collect data which will be needed in their

research study entitled “The Impact of Financial Knowledge on the Financial Literacy of

High School Students in Second Philippine International School.” This study was conducted

in the Second Philippine International School in Riyadh K.S.A.

Chapter II

Review of Related Literature

This chapter provides an overview of previous research on the impact of financial

knowledge on the financial literacy of high school students. It introduces the framework for the

case study that compromises the main focus of the research described in this study.

2.1 Introduction

A solid foundation in financial literacy may assist a variety of goals in life, including

starting a business, saving for retirement or education, and carefully handling debt (Fernando,

2023). According to United Way NCA (2023), we can assist young people escape the cycle of

debt and economic insecurity that many Americans suffer far into adulthood and lay the

foundation for a secure financial future by teaching them how to manage their money

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responsibly. Understanding how to make a budget, prepare for retirement, handle debt, and keep

track of personal spending are all important components of financial literacy.

Financial literacy is the knowledge of how to make smart decisions with money. It is

consistently regarded in earlier research as a trustworthy and direct indicator of a person's

economic actions (Huston, 2010; Aren and Zengin, 2016; Struckell et al., 2022). Numerous

studies have shown that those with better financial literacy are more likely than people with

lower financial literacy to engage in desirable financial behaviors like savings, mutual funds, and

stocks.

Additionally, some studies have shown that people with higher levels of financial literacy are

more educated; because they can obtain and access important information more easily and

affordably, they experience reduced financial barriers to participation in the financial markets

(Xiao and Porto, 2017). However, a lack of financial literacy is linked to unfavorable financial

behaviors, including minimal financial market involvement (Yoong, 2010; van Rooij et al.,

2012), a lack of significant equity gains, and unwise financial investment selections (Lusardi and

Mitchell, 2014). Some study has concentrated on financial education programs with the

overarching goal of boosting people's financial literacy due to the relationship between financial

literacy and financial behavior and well-being (Lusardi, 2019; Kaiser et al., 2021). Given the vast

differences in people's financial literacy, researchers have found that financial education

programs customized to specific groups are more effective than others (Lusardi and Mitchell,

2014; Cordero et al., 2020).

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 Existing research on the relationship between financial literacy and household financial

behaviors and attitudes use either survey-based or experimental approaches. Studies adopting the

first approach show that financial literacy plays a vital role in the financial decisions of

households. Van Rooij et al. (2011) conclude that people with low financial literacy are less

likely to invest in stocks while Lusardi and Tufano (2015) show that the same people tend to

engage in high-cost borrowing. (Kawamura et al., 2021) found that high financial literacy tends

to be associated with speculative investment, higher share of risky assets, overborrowing, and

financial naivety; that is, financial literacy makes people more daring and reckless financially.

Moreover, there is no clear threshold above which the effects of additional financial literacy are

reversed.

Financial literacy is crucial for individuals to navigate their financial lives successfully. It equips

individuals with the necessary skills and knowledge to make informed decisions about their

money, manage their finances effectively, and plan for their future. Financial knowledge refers to

the understanding and awareness of financial concepts, principles, and information. While,

financial knowledge focuses on understanding financial concepts, financial literacy goes beyond

knowledge and includes the application of that knowledge in real-life financial situations.

(Hastings et al., 2013)

2.2 Literature Review

Studies on the teaching methods that can be used to enhance the financial literacy of the

students

What Colleges can do to Enhance Financial Literacy of Students

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 Even though the curriculum was effective, the average student was still in “D”

range which means it is still poor. The females outperform the males in the test. Since the

costs of financial illiteracy to individuals and society are high it is important to find ways

to increase financial literacy (Lusardi & Mitchell, 2014). The primary goal of this study

was to assess the program's and new curriculum's success. This was accomplished by

using a testing tool that enabled pre- and post-testing of the participants' financial literacy.

Overall results show that the curriculum was successful in raising pupils' financial

literacy. Understanding where students performed well and where there is still room for

considerable development is another benefit of analyzing the findings. The outcomes will

be utilized to modify the curriculum. (Ehrlich, M., & Guilbault, M. 2017)

Teaching financial literacy: a survey of community-based educators

The findings of the study contribute to knowledge about community-based FLE

for adults. The survey offers insights into financial educators, where the classes take

place, who the students are and the community-based programmes that host the FLE

classes. Most significantly, this survey offered a unique perspective of FE, often

overlooked (Way and Holden, 2009): a look at FLE instruction from the viewpoint of a

financial educator. By exploring the teacher's position, it was possible to gain insight into

their perspectives on teaching financial literacy as well as the connections between

beliefs, practice, and other contextual elements (such as setting, curriculum, and

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 technology) that influenced practice. The transformative adult learning theoretical

foundation also provides a theoretical means to understand factors that shape practice as

well as a means of fostering change in teaching, in contrast to most FLE studies and

programmes that rely on noneducational frameworks (e.g., risk investment models, life

cycle consumption theories, behavioral modification models). More research on financial

educators and how they interpret practice can help build suitable training programs and

ultimately improve the standard of FE. (Taylor et al, 2012)

Improving Financial Literacy Of The Poor And Vulnerable In Indonesia: An Empirical

Analysis

The students who have experience in the outside world outperform those without.

Most likely because they apply what they learn to the real world. They have discussed a

USAID-funded project that aims to help disadvantaged and vulnerable Indonesian

youngsters (ages 18 to 34) develop their soft skills and financial literacy. The YouthWin

through Economic Participation (YEP) project, a bigger workforce development

initiative, spent 18 months reaching 601 kids in West Java's vocational institutions. These

students received training from 25 instructors from vocational schools who took part in a

financial life skills training for trainers that was held in Jakarta in December 2017. The

program has had incredibly positive results, with trainers' and students' knowledge of

financial literacy rising sharply. Additionally, students' self-perceptions of their own soft

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 skill acquisition considerably improved. It is important to emphasize that the YEP

training is equally effective in improving financial literacy and perceptions of soft skills

acquisition for both males and females and regardless of age

Studies about students' saving habits

According to Alshebami and Aldhyani's (2022), having the ability to gather, examine,

and use financial and economic data is necessary for making prudent financial decisions about

financial planning, wealth growth, and debt management. The capacity to handle one's own

financial affairs in a way that improves wellbeing is referred to as financial literacy. Financially

literate people are better able to manage their money in an efficient and transparent manner,

make informed investment decisions, promote saving habits, and take advantage of newly

introduced financial products and services. While those with inadequate financial knowledge and

skills may need to borrow more money, those with higher financial knowledge and skills can

spread out their investments and reduce risk. People who are financially literate can diversify

their investments and reduce risk, as opposed to those who are less financially skilled and aware,

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who might need to borrow more money. It is frequently challenging for people with poor

financial literacy to manage their income.

The available research has shown that those who can increase their financial literacy are

better able to plan for the future and enjoy more financial success. People learn the skills

necessary to manage risky situations and make wise financial decisions through financial

literacy. As a result, people can develop their financial literacy through a variety of sources,

including their parents, peers, and the environment in which they live, which can then assist them

in creating retirement plans and funding their children's higher education. Since those who are

more financially educated have a stronger capacity to save and manage money effectively,

financial literacy is believed to play a significant impact in saving behavior.

According to Mandell (2009), financial literacy is favorably correlated with

self-beneficial financial conduct, according to several research. Questions about financial

behavior and financial literacy were included to the national Survey of Consumer Finances by

Hilgert, Hogarth, and Beverly (2003). They created a Financial Practices Index based on actions

in four areas: practices for managing cash flow, managing credit, saving money, and investing it.

Financial Practices Index scores were compared to findings from the financial literacy test, and

individuals who scored higher on the test also had higher Financial Practices Index scores,

proving that financial understanding and conduct are associated.

The impact of personal finance education delivered in high school and college courses.

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 This study's primary objective was to look into how personal finance classes in high

school and college affected students' ability to make investment decisions. With regard to general

knowledge, savings and borrowing, and investments, students' lack of personal financial

management skills resulted in costly errors. The discovery that financial knowledge significantly

affected financial decisions was one of Chen and Volpe's (1998) study's most important findings.

In a hypothetical case, around 89% of students with higher levels of financial literacy made wise

spending decisions; however, just 68% of students with lower levels of financial literacy did the

same.

After confirming the relationship between courses and investing knowledge, we

investigate the relationship between investment knowledge and saving habits. The main

conclusions demonstrate that adult investing literacy is enhanced by personal finance courses

taught at colleges. The results show that taking a personal finance class in college was more

beneficial for learning about investments than taking a personal finance class in high school.

Studies about the Impact of financial literacy in the financial wellbeing of students

According to Shim et.al Financial knowledge and attitude are closely related to each

other. The capacity to manage finances, interest in gaining more financial information, attitude

toward saving and investing, and attitude toward risk when making an investment are all

indicators of one's financial attitude. Additionally, in evaluating financial practices, people's

attitudes toward money are seen as psychological tendencies that vary in agreement and

disagreement. Along with the individual's financial literacy, financial attitude is a crucial

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component.The state of one's finances is significantly influenced by their financial mindset.

Financial education fosters a positive financial attitude, and a positive financial attitude results in

financial wellbeing.

Financial literacy leads to a positive financial attitude, which in turn promotes financial

security and personal economic empowerment. The state of one's finances is significantly

influenced by their financial mindset. According to studies, an individual's financial welfare is

influenced by their financial knowledge, financial attitude, and financial conduct (Shim et al.,

2009; Joo and Grable, 2004). Financial education fosters a positive financial attitude, and a

positive financial attitude results in financial wellbeing. The development and improvement of a

person's understanding of financial wellness is facilitated by their financial attitude. A person

with a good attitude about money will perform better at work and make wiser judgments and

decisions on investments and saving. The financial well-being of working women is positively

impacted by financial mindset as well. Financial well being is associated with financial

knowledge and personal traits and attitudes of the individual the greater the ability to handle

financial shocks the better the financial well being of the individual. Another important indicator

of financial wellbeing is the level of financial stress. Financial literacy helps an individual to

manage their money in a proper way and reduces financial stress.

Krishna et al. (2010) discovered hat financial literacy prevents individuals from having financial

troubles. According to Sabri (2011) financial knowledge is the fundamental understanding that

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people require to thrive in today's world. Mandell (2005) stated that financial literacy has no

significant effects when improving a high school students’ test scores in financial understanding.

Financial education initiatives are more expensive than they are beneficial which was discovered

by Willis (2008). However, other researchers such as Fox et al. (2005) and Lusardi (2003) found

that financial education, financial literacy, and advantageous financial results are directly related.

These contrasting results might propose that not all financial literacy programs are as

successful or effective because other variables contribute to financial distress.

Studies about the effect of Financial Literacy on the decision making of students.

The assumptions of revealed preference models may be undermined by young people's

lack of self-control and awareness, as well as their underestimation of the long-term effects of

their current financial decisions (Grifoni, Messy, 2012; Lusardi, Mitchell, 2014).

These laws are based on the theory that teaching kids early about personal finance, and

credit management in particular, will help them avoid future financial problems like loan default.

The younger generation of today works in the consumer credit sector and starts developing credit

habits at a young age (Lachance, 2012).

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 The political economy of state education policy is convoluted. The foundation of the

movement toward financial education being taught in schools is the belief that more financial

education has the potential to provide children with financial knowledge that will promote the

development of future virtuous financial habits.

According to Lusardi (2019), people are more responsible than ever for managing their

personal finances over the course of their life. The burden on social assistance and pension

systems is a result of the rise in life expectancy. Around the world, employer-sponsored defined

benefit (DB) pension plans are being quickly replaced by private defined contribution (DC)

pension plans, shifting the responsibility of retirement investing and saving from businesses to

employees.

Factors that Influence Financial Literacy

According to Firli (2017), people would regard financial literacy differently depending on

their age. Young children have poor financial literacy rates in developed nations, according to

various studies. However, older adults have higher financial literacy rates, according to several

studies. Money, knowledge, future motivation, expectations for their lives, and other elements

are just a few of the many things that can impact this situation. Education level indicates a

person's perspective, financial product analysis skills, and general knowledge of finance, all of

which can increase one's level of literacy. Numerous studies have shown that income and marital

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status have an impact on financial literacy. People who are married are more motivated to work

toward achieving wealth, as shown by their investments, pension plans, and long-term goals.

Higher-earning, wealthier, and more skilled individuals.

Financial literacy is influenced by a variety of things. Age, family size, family life cycle, gender,

income, occupation, education, religion, generational race, nationality, and social class are all

factors that affect financial literacy. According to their research, gender, status, place of

residence, and GPA all have an impact on financial literacy (Nababan et al., 2012). According to

research by Margaretha et al. (2015), education level, education major, parents' financial

situation, age, marital status, income, and gender are all factors that affect financial literacy.

(Firli, 2017)

Factors Affecting Financial Literature in the Use of Financial Institutions Products and

Services

One of the variables that affects someone's financial literacy is their gender. Numerous

studies indicate that women are more financially literate than men. Laily (2016) asserts that men

are more adept at handling their finances than women. Women typically have less financial

authority than men do. Men and women have different financial priorities, as stated above. Low

income and mistakes in money management are the main reasons why so many people are

having financial problems. A lack of financial literacy results in less intelligent money

management; thus, possessing financial literacy intelligence will aid in making the best choices.

A person's level of financial literacy increases with income and education. (Mahaeni et al., 2022)

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This study is a replication that combines elements from four previous studies, namely

(Margaretha et al., 2015), (Laily, 2013), (Rachmasari, 2018), and (Giffari, 2018).

An investigation of the demographic factors affecting financial literacy and its components

Age-related differences in financial literacy levels exist between populations that are

economically established and those that are developing (Klapper et al., 2015). Both young and

older individuals lack financial literacy (Bajo et al., 2015; Bawre & Kar, 2019). However, Garg

and Singh (2018) discovered that young people globally had low financial literacy levels. In

contrast, research from Bhushan & Medury (2013) and Kim & Mountain (2019) shows that age

has little bearing on financial literacy. (Bawre, 2019)

How do demographic and socioeconomic factors affect financial literacy and its variables

Several studies in the literature (Bhushan & Medury, 2013; Garg & Singh, 2018;

Cucinelli et al., 2019; Kadoya and Khan, 2020) have looked at the demographic and

socioeconomic characteristics that influence financial literacy levels. Sexual orientation has an

impact on financial literacy, according to earlier research (Bhushan & Medury, 2013; Garg &

Singh, 2018; Bare & Kar, 2019; Klapper & Lusardi, 2020; Kadoya and Khan, 2020). According

to more recent research by Jeyaram and Mustapha (2015), Swiecka et al. (2020), Klapper &

Lusardi (2020), Kadoya & Khan (2020), and Rink et al. (2021), women are less financially

literate than men. In addition, women's understanding is less impacted by financial literacy levels

than it is by male knowledge. Both cultures that are economically developing and those that are

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developed share this gender divide. In the world, 35% of men and 30% of women are financially

literate, according to a 2015 S&P Global Finance Survey. According to Klapper et al. (2015),

women of all ages, economic levels, and educational backgrounds have less financial literacy

than men.

However, Ibrahim et al. (2016) argue that sex does not affect financial literacy. They prove sex

does not distinguish financial awareness because both sexes show equal understanding of the

concept. Furthermore, Kim & Mountain (2019) assert that the two sexes do not exhibit distinct

financial understanding.

2.3 Conclusion

Financial knowledge is the knowledge of how to make smart decisions with money. It was

consistently regarded in earlier research as a trustworthy and direct indicator of a person's

economic actions. Those with inadequate financial knowledge and skills may need to borrow

more money; those with higher financial knowledge and skills can spread out their investments

and reduce risk.

Financial literacy is the ability to understand and apply basic financial concepts and principles to

make informed financial decisions. It includes the ability to understand budgeting, saving,

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investing, debt management, and other financial topics. Financial literacy is important for people

of all ages and income levels, as it can help them achieve their financial goals and avoid financial

problems. The factors affecting financial literacy are gender, age, and education.

On the positive side, people with higher levels of financial knowledge and literacy are

more likely to make better financial decisions, such as saving for retirement, investing wisely,

and managing debt responsibly; have higher levels of financial well-being, such as having

enough savings to cover unexpected expenses and being able to afford to retire comfortably;

experience less financial stress; and feel more confident in their ability to manage their finances.

On the negative side, people with higher levels of financial knowledge and literacy may be more

likely to become overconfident in their ability to make sound financial decisions, which can lead

them to take on unnecessary risks or to make poor financial decisions, become overwhelmed

with the amount of information available to them about financial products and services, leading

to analysis paralysis where they are unable to make a decision at all, and experience financial

stress if they are facing significant financial challenges, such as a job loss or a medical

emergency.

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 Chapter III

3.1 - Introduction

This chapter contains the discussion of the population and sample, data gathering

procedure, methodology, and fundamental method that was used in the conduct of this study.

Research Methodology

The study employs a quantitative method approach, integrating quantitative

methodologies. The primary methodology employed is a survey, which proves to be the most

effective method for this research. A survey is a method of gathering information using relevant

questions from a sample of people with the aim of understanding populations as a whole.

(Qualtrics, 2018). A survey will be distributed among a representative sample of students. The

survey will assess their financial knowledge and financial literacy levels, as well as gather

information about their demographic characteristics and educational backgrounds. Additionally,

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the survey will contain questions to gain deeper insights into participants' financial experiences

and the factors that have influenced their financial literacy, while also exploring the factors that

influence their literacy levels. To gather the necessary data, a set of questionnaires specifically

designed for this study will be utilized. This method ensures appropriate data collection for the

research in question.

Population and Sample

Population refers to individuals or object that are the focus of the study. The researchers choose a

sample of 306 youth to participate in the study.

The sample of the study was selected through probability sampling method wherein the samples

are selected on the basis of clusters. According (Simkus, 2022), Cluster random sampling is a

probability sampling method where researchers divide a large population into smaller groups

known as clusters, and then select randomly among the clusters to form a sample. The Slovin’s

Formula was used in order to calculate the designated sample size of each cluster. The

researchers used this sampling method since it is typically used when the population and the

desired sample size are particularly large.

In total, There are 15 sections of Junior and Senior high school students in Second

Philippine International School. However, the researcher will limit the number of respondents by

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using the Slovin's formula as a sampling method. The following calculation will explain how

the researcher will determine the sample size of respondents

N = 425 (population)

e = 0.03 (margin of error)

n = sample size

n= 425 /1 + 425(0.03)2

= 307 respondents

After computing the total sample size, the researchers divided the population in clusters. There

are 6 clusters, The student year levels are considered as the clusters.

The sample size is divided into 6 in order to have equal respondents for each cluster. The formula

below will show the computations :

= 307 /6

= 51 respondents each cluster

Then, simple random sampling is used.

Data Collection Methods

This research aims to investigate the relationship between financial knowledge and

financial literacy among students. In order to understand how financial knowledge affects

students' financial decision-making and to identify specific approaches and teaching methods for

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financial literacy education, the researchers used surveys as the data collection method in

gathering the quantitative data necessary in conducting the study .

Data Gathering Methods

To obtain the objectives of the study, the researchers drafted a questionnaire that has been

validated by the research instructor. Then, researchers asked for the approval of the subject

teacher, principal and the coordinator of the school to conduct the study. After having the

approval, the researchers proceeded on giving survey questionnaires to the respondents. On the

other hand, in order to avoid conflicts, the researchers also obtained consent from the selected

respondents before they answered the survey questionnaires. After the data has been gathered,

the researchers evaluate and analyze the responses from the survey questionnaire and come up

with a conclusion.

Issues of Validity and Reliability

The research provides a systematic approach to ensure both validity and reliability

throughout the research. The questionnaire was carefully designed to ensure the correct

validation processes as well as ethical considerations, including informed consent and

confidential assurance to enhance the validity of responses. The use of the Random Sampling

method ensures a systematic and unbiased approach to determine the sample. The researchers

combined ethical practices and systematic approaches to contribute to the validity and reliability

of the research.

Data analysis

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 After the data gathering process, every piece of data was employed in this study through a

descriptive statistical method. With this procedure, the results were handled through

measurements of central tendency, particularly by getting the mean score of each respondent in

the two sections of the questionnaires. Furthermore, Pearson’s R formula was used to determine

the correlation between the two variables namely the Financial Knowledge and Financial

Literacy.

Every data gathered from the selected respondents were treated with utmost confidentiality to

effectively contribute to the research that is being conducted. In addition, the researchers

removed any biases associated with the condition to prevent any conflicts with the respondents.

The data will be collected, tallied, analyzed, and statistically treated to come up with the accurate

findings. Researchers will use the weighted mean to determine the Financial Knowledge and

Financial Literacy score of each respondent.

Ethical Issues

To avoid conflicts and ensure ethical practices, researchers took precautionary measures

throughout the research. Informed consent was included in the first part of the questionnaires,

clearly outlining the purpose of the study and the voluntary nature of participation. Researchers

emphasized to the respondents that their responses and scores would be treated with strict

confidentiality. By doing so, the researchers aimed to protect the rights and privacy of the

respondents, fostering an environment of trust and maintaining the integrity of the research.

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 Chapter IV

PRESENTATION OF DATA AND ANALYSIS

4.1 Demographics

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 Figure 1.1

The figure shows that the survey respondents were divided into six equal groups per grade

level.16.66% of the pie is occupied by each grade level. Grade 7 (51), Grade 8 (51), Grade 9

(51), Grade 10 (51), Grade 11 (51), Grade 12 (51).

Figure 1.2

The graph above shows that students who are 16 years old (18.6%) make up the largest

group of survey respondents. This is followed by a large group made up of students who are 13

years old (17.9%), 14 years old (17.3%), 15 years old (15.6%), and 17 years old (15%), as well

as two smaller groups that are 18 years old (4.6%) and 19 years old (1.3%).

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 Figure 1.3

The graph above shows that there are equal male respondents (153), and Female

respondents (153), which is crucial to determine whether gender affects Financial Literacy.

4.2 Measurement of Financial Knowledge

Figure 1.4

The figure illustrates that “Entrepreneurs" is the term that the respondents are most familiar

with. 270 students answered 3 (indicates that they know the word and its meaning), 30 students

answered 2 (indicates that they heard of it but don’t recall the meaning), while 6 students

answered 1 (indicates that they never heard of it). “Depreciation” is the term that the respondents

are most unfamiliar with. 116 students answered 1, 100 students answered 2, while 90 students

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answered 3. The other graph shows the respondents' level of familiarity with the concepts that go

into calculating their financial knowledge score.

Figure 1. 5

Figure 1.5 explores the understanding of concepts such as saving, budgeting, and investing

among 306 students, revealing that a majority understood it “Moderately well” attributed to

73.9% (226 students). The other responses include understanding it “Exceptionally well”

attributed to 19.9% (61 students), and understanding it “Not at all” attributed to 6.2% (19

students).

Figure 1.6

Figure 1.6 explores the understanding of saving and interest through an analytical question

among 306 students, of which 71.6% (219 students) answered correctly stating “105 SAR”,

while the other respondents answered “120 SAR” attributed to 10.8% (33 students), “110 SAR”

attributed to 8.8% (27 students), and “115 SAR” attributed to 8.8% (27 students).

Figure 1.7

Figure 1.7 explores the understanding of budgeting through an analytical question among 306

students, of which 59.5% (182 students) answered correctly stating “100 SAR”, while the other

respondents answered “200 SAR” attributed to 16.3%% (50 students), “300 SAR” attributed to

15.4% (47 students), and “400 SAR” attributed to 8.8% (27 students).

Figure 1.8

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Figure 1.8 explores the understanding of investments through an analytical question among 306

students, of which 13.4% (41 students) answered correctly stating “1,600 SAR”, while the other

respondents answered “1,500 SAR” attributed to 65% (199 students), “1,100 SAR” attributed to

14.7% (45 students), and “400 SAR” attributed to 6.9% (21 students).

4.3 Measurement of Financial Literacy

Figure 3.1

In figure 3.1, 137 out of 306 respondents (44.8%) answered 3 on the question “I keep track of

my expenses on a regular basis,” indicating that they do not regularly keep track of their

expenses on a regular basis. 59 respondents (19.3%) answered 5, indicating that they always

keep track of their expenses on a regular basis. 47 respondents (15.4%) answered 4, indicating

that they often keep track of their expenses on a regular basis. 39 respondents (12.7%) answered

2, indicating that they rarely keep track of their expenses on a regular basis. 24 respondents

(7.8%) answered 1, indicating that they never keep track of their expenses on a daily basis.

In other words, more than half of the respondents do not regularly keep track of their expenses.

Figure 3.2

In figure 3.2, 97 (31.7%) of the 306 respondents answered 5 on the question “I put money aside

for saving, future purchases, or emergencies,” meaning they always put money aside, 93 (30.4%)

answered 3 meaning they sometimes put money aside, 79 (25.8%) answered 4 meaning they

often put money aside, 25 (8.2%) answered 2 meaning they rarely put money aside, and 12

(3.9%) answered 1 meaning they never put money aside.

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This indicates that the majority of respondents always put money aside for savings, future

purchases, or emergencies, which could benefit them in the future.

Figure 3.3

In Figure 3.3, 96 out of 306 respondents (31.4%) answered 3 on the question “I prepare a budget

every month,” which indicates that the respondents sometimes prepare a budget every month,

while 86 (28.1%) answered 2 indicating that they rarely prepare a budget every month. 46 of the

respondents (15%) answered 1 which indicates that they never prepare a budget every month,

while 40 (13.1%) answered 4 indicating that the respondents often prepare a budget every month.

The remaining 38 respondents (12.4%) answered 5 which indicates that the respondents always

prepare a budget every month.

This means that most of the respondents sometimes prepare a budget every month, while other

respondents either never, rarely, often, or always prepare a budget every month.

Figure 3.4

In figure 3.4 the data above reveals that 120 (39.2%) out of the 306 respondents responded with

a 3 on the question “as a student, I can easily manage my own financial problems,” indicating

that the students can manage their financial problems sometimes. 67 (21.9%) respondents chose

2, signifying that the students rarely manage their own financial problems. Furthermore, 47

(15.4%) respondents selected 4, suggesting that the students often manage their own financial

problems. 42 (13.7%) respondents answered 5, showing that the students always manage their

own financial problems. Lastly, 30 (9.8%) respondents picked 1, indicating that the students

never manage their own financial problems.

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This figure shows that the majority of the respondents either manage their own financial

problems sometimes or rarely, while other respondents always, often, or never manage their own

financial problems.

Figure 3.5

Out of 306 respondent, 87 respondents (28.4%) selected 3 and 5 on the question “I

comparison-shop or buy things on sale,” indicating that the respondents always and sometimes

comparison-shop or buy things on sale, while 84 respondents (27.5%) answered 4 indicating that

they often comparison-shop or buy things on sale. 33 of the respondents (10.8%) answered 2

meaning that the respondents rarely comparison-shop or buy things on sale. And lastly, 15

respondents (4.9%) answered 1 indicating that they never comparison

-shop or buy things on sale.

Figure 3.5 shows that most of the respondents either always, often, or sometimes

comparison-shop or buy things on sale, while some of the respondents rarely or never

comparison-shop or buy things on sale.

Figure 3.6

Figure 3.6 shows that, when the 306 respondents were asked “before I buy something I carefully

consider whether I can afford it,” 138 (45.1%) of respondents selected 4 meaning they often

carefully consider whether what they are going to buy is something they can afford or not. 107

(35%) respondents answered 5 indicating they always carefully consider whether they can afford

it before buying something, 43 (14.1%) of the respondents choose 3 meaning they sometimes put

into careful consideration whether they can afford it before buying something, 7 (2.3%)

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respondents answered 1 which indicates that they never put into careful consideration whether

they can afford it before buying something.

The bar graph above illustrates that the majority of the respondents would always and often put

into careful consideration whether they can afford something before buying it, while least of the

respondents would never or rarely consider if they can afford something before buying it.

Figure 3.7

The data being illustrated above reveals that 128 (41.8%) out of the 306 respondents responded

with a 1 on the question “I compare my receipts of purchases to my monthly allowance,”

indicating that the students never compare their receipts of purchases to their monthly allowance.

73 (23.9%) respondents chose 2, signifying that the students rarely compare their receipt of

purchases to their monthly allowance. Moreover, 53 (17.3%) respondents selected 3, suggesting

that the students sometimes compare their receipts to their monthly allowance. 32 (10.5%)

respondents picked 5, indicating that the students always compare their receipts to their monthly

allowance. Lastly, 20 (6.5%) respondents answered 4, showing that the students often compare

their receipts to their monthly allowance.

Figure 3.7 shows that most students never or rarely compare their receipts. Some students

sometimes or always compare their receipts to their monthly allowance. However, a small

number of students often compare their receipts of purchases to their monthly allowance.

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13. In the graph that is shown out of 306 respondents, 135 respondents answered "Neutral"

(44.1%), 97 respondents answered "Agree" (31.7%), 35 respondents answered "Strongly Agree"

(11.4%),

34 respondents answered "Disagree" (11.1%), and 5 respondents answered "Strongly disagree"

(1.6%)

14.In the Graph that is shown out of 306 respondents, 142 respondents answered "Agree"

(46.4%), 118 respondents answered "Strongly Agree" (38.6%), 36 respondents answered

"Neutral" (11.8%), 8 respondents answered "Disagree" (2.6%), and 2 respondents answered

"Strongly disagree" (0.7%)

15. In the graph that is shown out of 306 respondent, 121 respondents answered "Neutral"

(39.5%), 117 respondents answered "Agree" (38.2%),

51 respondents answered "Strongly Agree" (16.7%), 16 respondents answered "Disagree"

(5.2%), and 1 respondent answered "Strongly Disagree" (0.3%)

16. In the graph that is shown out of 306 respondents,109 respondents answered "Agree"

(35.6%), 101 respondents answered "Neutral" (33%), 52 respondents answered "Strongly Agree"

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(17%), 32 respondents answered "Disagree" (10.5%), and 12 respondents answered "strongly

disagree" (3.9%)

17. In the graph that is shown out of 306 respondents, 118 respondents answered "Agree"

(38.6%), 98 respondents answered "Strongly Agree" (32%), 79 respondents answered "Neutral"

(25.8%), 7 respondents answered "Disagree" (2.3%), and 4 respondents answered "Strongly

Disagree" (1.3%)

18. In the Graph that is shown out of 306 respondents, 97 respondent answered "Agree" (31.7%),

84 respondents answered "Strongly Agree" (27.5%), 82 respondent answered "Neutral" (26.8%),

33 respondents answered answered "Disagree" (10.8%), and 10 respondent answered "Strongly

disagree" (3.3%)

Figure ____

The figure presents that the most effective ways in learning how to handle money matters among

n students are mostly from “Real Life Experiences” attributing to 52.1%. The other categories

include “Education” attributed to 25%, “Technology” attributed to 19.9%, and “Others”

attributed to 3%.

Figure _____

The figure presents that factors that affect financial literacy among n students can be attributed to

several categories, being, “Education” attributed to, “Age” attributed to 21.9% , “Parenting”

21.3%, “Others” attributed to 12.1% , and “Gender” attributed to 4.7%

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4.4 Correlational Relationship of Financial Knowledge and Financial Literacy

*pearsons r

The Pearson's correlation coefficient (r) measures the strength and direction of the linear

relationship between two variables. In this case, the correlation coefficient is 0.3, indicating a

moderately positive correlation between the variables being analyzed. This means that as

financial knowledge increases, financial literacy tends to increase as well, although the

relationship is not very strong. This is due to the other factors affecting financial literacy.

The p-value is used to determine the statistical significance of the correlation coefficient, with a

lower p-value indicating a stronger level of significance. When the p-value is below 0.05, it is

generally considered statistically significant, indicating that the observed correlation between

financial knowledge and financial literacy is unlikely to have occurred randomly. In this

particular case, the p-value of 0.01 suggests that the observed correlation coefficient of 0.3 is

statistically significant at a 0.01 significance level. However, while the correlation is statistically

significant, the strength of the correlation coefficient suggests a moderate relationship between

the variables. In summary, the interpretation of the results is that there is a moderately positive

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relationship between the variables, and this relationship is statistically significant at the 0.01

level.

Mean Score Comparison of Male and Female

The mean score for financial knowledge among male respondents was 39.01, whereas the

mean score for female respondents was 45.11, suggesting that females had greater understanding

of financial concepts and terms. However, the mean financial score for all male respondents is

39.15, while the mean financial score for female respondents is 45.17. This indicates that women

are perceived as having greater financial literacy than men.

Mean Score Comparison of Different Age of Respondents

The financial knowledge mean score for the 12 year old respondents is 36.43, the 13 year old

respondents are 36.25, the 14 year old respondents are 42.26, the 15 year old respondents are

39.41, the 16 year old respondents are 40.66, the 17 year old respondents are 42.59, the 18 year

old respondents are 43, and the 19 year old respondents are 39. While the financial literacy mean

scores are as follows: 12 (44.73), 13 (43.43), 14 (43.68), 15 (45.65), 16 (46.46), 17 (47.91), 18

(44.71), and 19 (41.25), which state that age is not a determining factor of a person’s financial

literacy.

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