Financial Literacy Level Among Senior High School Students: Basis for Financial Program

Group Members

Agner, Nicole

Buenaventura, Mark

Moreno, Christian

Nagac, Lyndon Carl

Ramonal, Jocel

Rufino, Ann Zumi

Urbistondo, Margaret

Villalobos, Ashley

Villavicencio, Shaira

TABLE OF CONTENTS

Page Page Number

Chapter 1

Title page

Page 1 of 26
Introduction 3

Theoretical Framework 4

Conceptual Framework 8

Statement of the Problem 9

Hypothesis 11

Significance of the Study 11

Scope and Delimitation 12

Definition of Key Terms 12

Chapter 2

Review Related Study 15

Themes

Chapter 3

Research Design 20

Participants of the Study 20

Research Instrument 21

Research Procedures

Data Gathering

Data Analysis

Statistical Treatment

References

Introduction

In the contemporary landscape, characterized by intricate financial products and a surge in

online transactions, financial literacy has emerged as a crucial life skill. By assessing the extent of

their financial literacy, identifying their strengths and weaknesses in comprehending financial

Page 2 of 26
concepts, and understanding their ability to make informed financial decisions, this research seeks

to shed light on the current state of financial literacy among the students at Palo Alto Integrated

School. The findings will serve as a foundation for tailored financial education programs, aligning

with the students' specific needs.

Financial literacy, defined as a combination of awareness, knowledge, skills, attitudes, and

behaviors necessary for sound financial decisions, is paramount in today's complex financial

landscape (OECD, 2018). Lack of financial literacy can make individuals susceptible to scams and

fraudulent activities, emphasizing the need for comprehensive financial education (Fernando,

2018). Complicating matters, compulsive buying behavior, akin to addiction, affects a notable

percentage of adults and young individuals, leading to poor financial outcomes (Schofield, 2018;

Kagan, 2018). Researchers aim to dissect the underlying reasons behind these behaviors among

students, considering factors such as background, gender, age, and financial stability.

Despite the awareness and available solutions, students often persist with detrimental

spending habits. The research endeavors to bridge this gap by understanding the factors

contributing to financial illiteracy among young adults. Specifically, it explores the influence of

strand, gender, grade level, and behavior patterns on financial literacy levels, aiming to identify

interventions promoting financial responsibility among young adults.

Previous studies have indicated a correlation between low financial literacy levels, high

student loan debts, and increased default rates (Riaz et al., 2022). Attitude and self-efficacy

emerge as pivotal factors affecting financial literacy, with students possessing positive attitudes

and strong self-efficacy demonstrating higher financial literacy levels. The literature review

underscores the importance of empowering students with financial knowledge, enabling them to

make informed decisions about their personal finances.

In a rapidly evolving financial landscape, equipping young individuals with financial literacy

is indispensable. This research, rooted in the inverted pyramid structure, delves into the financial

awareness, knowledge, and behaviors of senior high school students in Palo Alto. By

understanding the complexities of their financial decisions. They can pave the way for targeted

Page 3 of 26
interventions and educational programs that foster financial responsibility, ensuring their financial

stability in the future.

As an investment, the intent is not to consume the good but rather to use it in the future to

create wealth. (Adam Hayes, 2023). In this study, it is the intentional commitment of financial

resources of participants into various assets or ventures, such as stocks, bonds, real estate, or

other financial instruments.

Theoretical Framework

The present study is anchored on the following theories: human capital theory, social capital

theory, and expectancy theory.

Human capital theory was proposed by Ben-Porath's pioneering perspective on earnings'

life cycle aligns investment in human capital with age. He posited that individuals heavily invest in

themselves during youth, sacrificing immediate earnings. Consequently, early years witness lower

earnings as investment takes precedence, gradually increasing as these investments taper off.

The crux lies in the extended timeframe available to the young, facilitating substantial investment.

This model underlines the delayed gratification inherent in investing in oneself, culminating in

higher earnings and returns as these investments mature over time. Ben-Porath's insight reshaped

understanding of income patterns, emphasizing the correlation between age, investment in human

capital, and the resulting earnings trajectory.

Human capital theory delves into the concept of treating education, skills, and knowledge as

investments that yield future returns. It posits that individuals enhance their earning potential by

investing in themselves through education and skill development. This theory underscores the

correlation between these investments and subsequent income, emphasizing that higher levels of

human capital tend to result in increased earning capacity. Financial literacy complements this

theory by enabling individuals to discern the most effective ways to invest in their human capital. It

aids in deciphering the cost-benefit analysis of education and skill acquisition, aligning these

decisions with long-term financial goals. In essence, financial literacy acts as a bridge between

Page 4 of 26
human capital theory and practical decision-making, facilitating informed choices in optimizing

investments in oneself for sustained financial well-being.

Social capital theory which was proposed by in refers to the intrinsic value inherent in social

connections, social capital theory underscores the access individuals have to resources,

information, and support through their networks. Within the sphere of financial literacy, this theory

emphasizes the profound impact of social networks on an individual's financial knowledge,

behaviors, and choices. Financial acumen often stems from interactions within these networks—be

it familial, social, professional, or community-based—where insights on budgeting, saving,

investing, and financial planning are shared. Robust social connections play a pivotal role in the

exchange of financial wisdom, enabling the sharing of experiences, advice, and information that

contribute significantly to an individual's financial literacy. Through diverse perspectives, resource

access, and learning opportunities within these networks, people expand their financial literacy,

leveraging the wealth of insights and support offered by their social ties. Thus, social capital theory

underscores the invaluable contribution of social networks in shaping and enhancing financial

literacy among individuals.

Social capital theory highlights the profound influence of an individual's social connections

on their financial literacy, encompassing family, friends, colleagues, and communities as key

networks. Within these circles, a wealth of information regarding financial practices such as

budgeting, saving, and investing is exchanged. Strong ties within these networks grant individuals

access to a diverse array of perspectives, experiences, and resources. This exchange cultivates

the sharing of financial knowledge and advice, enriching an individual's financial literacy through

the exposure to various concepts and strategies. Consequently, these connections offer invaluable

learning opportunities, fostering a comprehensive understanding of financial matters and aiding in

the development of informed financial behaviors. In essence, social capital significantly shapes an

individual's financial decisions and behaviors by providing essential support and insights within

their social spheres.

Page 5 of 26
 Expectancy theory, proposed by Victor Vroom, offers insights into the motivational forces

driving human behavior. This theory revolves around the belief that individuals are motivated to act

in specific ways based on their expectations of the outcomes of those actions. It comprises three

fundamental components: expectancy, which is the belief that effort will result in performance;

instrumentality, the belief that performance will lead to certain outcomes; and valence, the value or

significance attached to those outcomes. Essentially, expectancy theory posits that people are

driven by the anticipation that their efforts will yield desired results, and this anticipation influences

their motivation levels and subsequent actions. It emphasizes the interplay between individuals'

beliefs about the consequences of their actions and their motivation to act in ways that align with

their desired outcomes.

People are driven by their belief that improving their financial literacy will lead to better

financial choices with good results. This idea is based on the knowledge that better decision-

making brought about by financial literacy results in better financial outcomes, such as investments

and savings. People are strongly motivated to devote time and energy to enhancing their financial

skills by acquiring financial knowledge and attaining favorable financial outcomes. Additionally,

investigating how students' motivation to participate in a financial program may be influenced by

their perceptions of the advantages of financial literacy, such as enhanced decision-making or

future financial security. Highlighting the possible advantages and demonstrating the applicability

of financial literacy may serve to increase their motivation to engage in these kinds of activities.

Moreover, examining the correlation between individuals' aspirations for improved financial

decision-making and the perceived benefit of financial literacy is pivotal. Understanding how

individuals link financial literacy to enhanced decision-making or long-term financial stability

provides insights into their motivation to actively participate in financial education programs.

Emphasizing the tangible advantages and practicality of financial literacy may amplify their

enthusiasm and commitment to engaging in such initiatives, fostering a greater inclination towards

acquiring and honing financial skills.

Conceptual Framework

Page 6 of 26
 The present research used the Input Process Output Model. The input is the profile

according to sex, grade level, strand and family monthly income of the respondents. The input also

includes the financial literacy according to financial behavior, financial attitudes, and financial

knowledge of the respondents. The process in the study is a survey. Finally, the output of the

present study is a financial literacy program based on the gathered result.

Demographic
Profile:
Input
a. sex
b. Grade Level
c. Strand
d. Family Monthly Financial
Income
survey Literacy
Financial Literacy:
Program
a. Financial
Behavior
b. Financial
Attitudes
c. Financial
Knowledge

Page 7 of 26
 Feedback

Statement of the Problem

Financial literacy among youth has become critical in an era distinguished by complicated

financial landscapes and growing economic concerns. The purpose of this study is to extensively

analyze the current level of financial literacy among Palo Alto Integrated School Senior High

School students during the first semester of the academic year 2023-2024.

The survey aims to examine students' comprehension of basic financial concepts, their

ability to make sound financial decisions, and their knowledge of financial planning strategies.

Specifically, this study will answer the following questions:

1. What is the profile of the respondents in four areas when they are grouped according to the

following variables?

1.1 Sex

1.2 Grade Level

1.3 Strand

1.4 Family Monthly Income

2. What is the level of financial literacy of the students as a whole and in the following areas:

2.1 Financial Behavior

2.2 Financial Attitudes

2.3 Financial Knowledge

3. Is there a significant difference in the following areas when the participants are grouped

according to the variables mentioned above?

3.1 Sex

3.2 Grade Level

3.3 Strand

3.4 Family Monthly Income

4. What program can be proposed to enhance the financial literacy level of senior high school

students in the Palo Alto Integrated School?

Page 8 of 26
Hypothesis

There is no significant difference between the financial literacy level and the demographic

profile in terms of sex, grade level, strand and family monthly income of the senior high school

students.

Significance of the study

This is specifically beneficial to the following:

To the School Administration, school administrators can enhance students'

understanding of this crucial life skill by adding a specific financial topic to the curriculum modules.

The school can directly address the unique needs and issues found among pupils by using the

research findings to build and implement customized financial education content.

To the Teachers, Financial literacy helps teachers understand finances better, enabling

them to guide students in developing vital money skills. Teachers' involvement in this research

enhances their expertise, leading to better teaching and classroom methods. The research also

shapes updated curriculum materials, providing access to the latest resources for high-quality

financial education. This approach equips students with the knowledge to make smart financial

choices, promoting financial independence and overall well-being.

To the Students, this study aims to help students gain practical financial knowledge for

their daily lives. It equips them with skills for better financial decision-making, improving financial

literacy, and ultimately leading to greater financial stability. This prepares them for financial

challenges in adulthood by making them aware of gaps in their knowledge, enabling informed

choices, and helping them set financial goals, manage budgets, and make responsible savings

and investment decisions.

To the Parents, this research holds significant value for parents as it equips them with

actionable knowledge that can be applied within their households. It not only enables parents to

implement the findings in their own financial practices but also provides them with the tools to

effectively pass on this valuable knowledge to their children.

Page 9 of 26
 To the Future researchers, the program that was presented to the participants can provide

helpful recommendations for their upcoming research activities. For forthcoming researchers, the

study's constraints can be advantageous because they give them the chance to enhance and

perfect their work.

Scope and Delimitations

This study focuses on assessing the financial literacy level of senior high school students at

Palo Alto Integrated School and identifying the factors that influence their financial literacy. This

research will also analyze the differences in knowledge levels of financial literacy among different

strands of senior high school students.

Furthermore, the study delimits the restricted participant pool, as only senior high school

students from Palo Alto will be included.

DEFINITION OF TERMS

Finances. It refers to the monetary resources and affairs of a state, organization, or

individual. (Mohamad Al-Dahrawi, 2023). In this study, it involves assessing participants’

proficiency in budgeting, investment understanding, and prudent financial decision-making.

Financial Attitudes. It refers to the state of mind of a person about finances which is

generally a result of his background and environment. (Vikram,E. 2020). In this study, it is the

participants' evaluative and emotional predispositions toward financial concepts and practices. It is

also one of the areas that can measure the level of financial literacy.

Financial Behavior. It refers to the concerns of a human's action with respect to money

management. (Vikram,E. 2020). In this study, it is the observable actions and choices of

participants made in managing their financial resources. It also one of the areas that can measure

the level of financial literacy

mes In this study, lack of proficiency will be assessed through observable behaviors,

attitudes, and responses in specific financial scenarios. The identification of such deficiencies will

inform the development of a targeted financial education program.

Page 10 of 26
 Financial Literacy. It refers to the education and understanding of various financial areas

including topics related to managing personal finance, money and investing. (Will Kenton,2018). It

is what is being measured by the study.

Financial Knowledge. It refers to the financial awareness and understanding of the

financial concepts and procedures as well as the use of this understanding to solve daily financial

problems. (IGI GLOBAL,2019). In this study, it's the knowledge of a participant regarding financial

matters. It also one of the areas that can measure the level of financial literacy

Financial Literacy Program. It refers to the program focuses on the ability to manage

personal finance matters in an efficient manner. It is a key life skill required for an individual's

personal and professional growth. In this study, it is a structured and targeted educational initiative

designed to enhance participants’ financial literacy and decision- making skills.

Illiteracy. Illiteracy is the quality or condition of being unable to read or write. In this study,

it is the lack of ability and competence of participants to comprehend, interpret, and apply

information in each domain.

Investment. It refers to the investment as an asset or item acquired with the goal of

generating income or appreciation. Appreciation refers to an increase in the value of an asset over

time. When an individual purchases a good as an investment, the intent is not to consume the

good but rather to use it in the future to create wealth. (Adam Hayes, 2023). In this study, it is the

intentional commitment of financial resources of participants into various assets or ventures, such

as stocks, bonds, real estate, or other financial instruments.

Literacy. It refers to the ability to read and write. In this study, it is the ability and

competence of participants to comprehend, interpret, and apply information in each domain.

Chapter II

This chapter presents the review of literature and studies relevant to the effectiveness of

Financial Literacy Level Among Senior High School Students: Basis for Financial Program.

Factors affecting financial literacy of students

Page 11 of 26
 Enhancing students' understanding of personal finance, including crucial life skills like

budgeting, saving, and managing interest, is pivotal for a promising future (Kumar et al., 2022;

Sohn, Zhou et al., 2022). Despite this recognized importance, there exists a prevalent lack of

robust financial literacy among students, evident in the absence of a prioritized scale for economic

activities (Budiarti & Setyaningsih, 2021). This deficiency is compounded by a concerning trend of

careless spending, particularly among students relying on parental support without considering

future consequences.

Financial education's profound impact on knowledge, attitudes, and behavior is well-

established, as emphasized in research by Siregar (2018). Legislative efforts and initiatives by

financial institutions, such as BDO Foundation and the BPI Foundation, contribute to promoting

financial education through various channels (Remo, 2019).

Moving beyond institutional efforts, the level of emotional support emerges as a significant

factor influencing students' financial literacy. The data presented indicates a moderate correlation

between emotional support and students' self-assessment of financial literacy, particularly in terms

of budgeting. The implication is clear: the amount of emotional support received directly impacts

proficiency in budgeting, a fundamental skill for maintaining control over one's finances.

Furthermore, cultivating a habit of saving from an early age is highlighted as crucial, leading

to better saving attitudes and superior financial capabilities, including skills in selecting financial

products and planning for retirement (Lucas, 2018).

The influence of family on students' financial behavior is underscored by a study with

American university students, emphasizing the pivotal role that family holds, particularly in money

management (Hanson and Olson, 2018). A broader international perspective from China, explored

by Niu et al., reveals a robust connection between financial literacy and various facets of

retirement preparation.

Delving into demographic factors, studies consistently demonstrate gender disparities in

financial attitudes and skills. Amagir et al. (2020) highlight that male students tend to score higher
Page 12 of 26
on certain financial aspects, while their female counterparts excel in financial planning.

Additionally, women from low-income households exhibit higher financial awareness compared to

students from urban areas, who demonstrate better financial attitudes (Ana & Wan Ahmad, 2020).

A deeper exploration of demographic impact is provided by Dewi, Vera Intanie (2022),

emphasizing the significant influence of sex, age, specialization, and outcome on financial literacy.

This research reveals that females demonstrate a more robust ability to manage money, excelling

in practical aspects like organizing bills and maintaining regular savings.

Age maturity level emerges as a pivotal factor, significantly strengthening the relationship

between financial capability and decision-making. Millennials display distinct financial behaviors

compared to non-millennials, underscoring the necessity for enhanced financial capability in the

face of economic uncertainties, further exacerbated by the Covid-19 pandemic.

Socioeconomic status is a key determinant affecting financial literacy aspects. Dewi, Vera

Intanie (2022) reveals that individuals with better economic conditions display superior skills in

managing finances. Consumption patterns further influence the relationship between financial

awareness and financial skills, with the middle and upper socioeconomic sub-groups experiencing

more pronounced effects.

The study's examination of saving mechanisms among males and females challenges the

assumption that females generally employ more saving mechanisms. The calculated averages

indicate that, on average, males may have higher spending habits (mean of 3.6049), while females

demonstrate average saving habits (mean of 3.255).

Further analysis of specific items brings attention to noteworthy differences. Males exhibit a

strong inclination to use personal savings for wants and needs, as indicated by the highest mean

(4.06) on this item. In contrast, females excel in prioritization skills, reflected in the highest mean

(3.67) on the item related to determining what should be prioritized before and during a purchase.

Page 13 of 26
 Both genders express a neutral stance regarding written or electronic budget

planning/preparation, with males averaging 2.93 (average agreement) and females averaging 2.68

(indicating indifference). This suggests a general tendency toward a neutral or average approach

to budget planning irrespective of gender. (Binobo et al., 2019)

The effectiveness of financial literacy program

Financial literacy programs have emerged as transformative tools, equipping individuals

with the necessary skills to make informed financial decisions, access financial services, and

establish economic stability (Technologies, I. 2023). As these initiatives evolve and extend their

reach to broader audiences, they present a promising avenue toward financial inclusion and

economic prosperity, especially for underserved populations. The investment in improved financial

literacy transcends individual development, representing a strategic commitment to the overall

financial health and prosperity of entire communities and nations.

In the specific context of high school students, financial literacy programs have

demonstrated a positive impact on both financial attitudes and behaviors. Qualitative research

conducted by Özdemir B and Uyanik GK (2021) highlights that these programs contribute

meaningfully to students' lives, causing a significant shift in their perception of money. This

underscores the broader implication that cultivating financial literacy at an early stage not only

benefits individuals but also plays a pivotal role in shaping the economic well-being of future

generations and society as a whole.

The SchoolBank project, a collaborative initiative between the National Bank of Georgia

(NBG) and Child and Youth Finance International (CYFI), underwent thorough evaluation by Irakli

Barbakadze (2018) to assess its effectiveness in enhancing financial literacy among school

children in Georgia. The study provided compelling evidence demonstrating the program's success

in improving overall financial literacy among the targeted student population. Key findings indicated

a notable enhancement in financial literacy, attributed to a substantial increase in both financial

knowledge and positive attitudes towards financial matters. This outcome underscores the

Page 14 of 26
program's efficacy in positively influencing students' understanding of financial concepts and

cultivating favorable perspectives on financial management.

Urban (2020) further reinforces the positive impact of financial education in high schools,

demonstrating that individuals who receive it are significantly less likely to experience debt issues

as young adults. Better financial literacy, as emphasized by Lusardi (2020), can assist young

people in proactively addressing issues like credit card debt and student loans, thereby facilitating

the management of their limited resources. Fernando (2023) underscores the importance of

including financial education in high school curricula, stating that it provides students with the

knowledge and skills needed to make wise financial decisions throughout their lives.

Veronica Frisancho (2022) evaluated a school-based financial education program, noting its

effectiveness with low opportunity costs in terms of academic outcomes. The program resulted in

knowledge gains with modest trickle-down effects on short-term financial behavior. Financial

education lessons were found not to lead to selection into borrowing or delinquency. However,

among those with debt, the program significantly reduced students' arrears by 20%, reflecting

improved repayment behavior on the intensive margin. This aligns with the positive impacts of the

intervention on financial autonomy and savviness in the short run.

Additionally, Veronica Frisancho (2020) discussed the potential benefits of financial

education programs for youth, highlighting their capacity to enhance financial literacy, increase

access to financial services, and shape future financial behaviors. However, she emphasized the

importance of considering both the intended and unintended effects of these programs to ensure

their effectiveness and minimize any negative consequences.

In a longitudinal study by Chen Tian and Chunhui Wang (2022), involving 200 students

aged 14 to 18, a nine-month financial education course resulted in a significant improvement in

perceived financial knowledge. The assessment covered various financial knowledge areas,

including savings behavior, commerce, credit, insurance, and capital markets. Scores increased

substantially from the pre-test to the post-test, indicating a notable enhancement in overall

Page 15 of 26
financial knowledge. The analysis of financial behavior, encompassing family discussion, saving

behavior, shopping behavior, and investment behavior, showed a significant improvement in post-

test scores compared to the pre-test. This positive change was considered statistically significant,

underscoring the effectiveness of financial literacy education in enhancing various financial skills

among students.

Importance of Financial Literacy

Financial literacy is recognized as a critical factor in poverty reduction, empowering

individuals to comprehend the mechanisms of money and utilize that knowledge to secure a stable

financial future for themselves and their families. Jaime Aristotle B. Alip, PhD (2023), emphasizes

the need for an all-of-government approach and private sector support to bridge the financial

literacy gap among Filipinos and enhance the financial well-being of every individual.

Becoming financially literate is essential for individuals to achieve their financial and life

goals. Regardless of age, financially literate individuals aim to budget their income, save for

retirement, and prepare for unforeseen financial needs. Camella (2023) highlights the various

benefits of financial education, including making profitable financial decisions, effective money and

debt management, reaching financial goals, reducing expenses, and creating budgets. Financially

educated individuals are better equipped to navigate financial challenges with confidence, avoiding

risks such as poor financial decisions, overwhelming debt, and other adverse outcomes.

The importance of financial literacy extends beyond individual well-being and has broader

implications for the macroeconomy, according to the Journal of Financial Literacy and Wellbeing

(Lusardi and Messy, 2023). Financially literate individuals are better positioned to participate in the

financial system, handle financial challenges, and adapt to new trends in the financial landscape.

McGurran (2021) emphasizes that financially literate consumers not only manage their money

confidently but also navigate the inevitable ups and downs of their financial lives more effectively.

Early financial education is highlighted as a foundational element for developing solid

financial habits and ensuring long-term financial security (Fernando, 2023). Marquez (2023)
Page 16 of 26
emphasizes the practical application of financial literacy in making informed budgeting, saving, and

investing decisions, avoiding pitfalls such as living beyond one's means and falling victim to

scams. Financial literacy is crucial for building wealth, achieving goals, overcoming challenges in

emergencies, and ensuring the well-being of one's family.

Why is the practice of financing not included in earlier years of highschool?

The study by Su and Kong (2019) highlighted that financial literacy (FL) significantly

influenced entrepreneurial decision-making and behavior, with higher FL promoting entrepreneurial

activities. However, there is a gap in understanding how FL among low-income and low-resource

groups affects their innovation behaviors, particularly their participation in Digital Entrepreneurship

(DE). Previous research has emphasized the crucial role of FL in promoting DE participation, but a

systematic theoretical framework and an in-depth exploration of the internal mechanisms are

lacking.

The study aims to address these gaps by investigating whether people's FL, especially

among low-income groups, affects their willingness and behavior to participate in DE. It also

explores the potential differences in the functional relationship between variables under various

social, economic, and individual family background conditions. The focus is on addressing the

limitations of existing literature by specifically examining the influence of FL on the willingness and

behavior of low-income groups to participate in DE.

The study introduces hypotheses suggesting that financial inclusion (FI) and digital literacy

(DL) act as mediators and moderators, respectively. Previous studies, as mentioned by the

authors, have indicated that DL positively affects behavioral expectations and stimulates

innovation and entrepreneurial behavior. Additionally, FI and DL are proposed to play distinct roles

in mediating and moderating the relationship between FL and DE participation.

Page 17 of 26
 The study recognizes the evolving nature of digital technology, highlighting that DL's

influence on DE, particularly in participation, has changed significantly with advancements in digital

devices and applications. The authors argue that while traditional factors such as capital,

information, market, and management ability remain important, the importance of financial factors,

including FL and FI, is pronounced for many, especially the relatively poor.

To support their argument, the authors refer to Neumeyer (2020) and Sutter et al. (2019) to

emphasize the significance of using internet devices proficiently for stimulating motivation and

enthusiasm in DE. They acknowledge the changing landscape of DL's impact on DE and stress

the importance of understanding the contemporary relevance of financial factors, particularly for

those with limited resources.

In summary, the study seeks to contribute to the existing literature by examining the

nuanced relationship between FL and DE participation among low-income groups, incorporating

the mediating role of FI and the moderating role of DL. The evolving dynamics of digital technology

and its impact on DE participation are acknowledged, with an emphasis on the continued

importance of financial factors for the relatively poor.

Synthesis

Factors influencing financial literacy among students and the effectiveness of financial

literacy programs present a multifaceted landscape. Notably, studies underline the crucial role of

financial education in shaping students' future, emphasizing the prevalent lack of robust financial

literacy (Kumar et al., 2022; Sohn, Zhou et al., 2022; Budiarti & Setyaningsih, 2021). Legislative

efforts and initiatives by financial institutions significantly contribute to enhancing knowledge,

attitudes, and behaviors related to personal finance (Siregar, 2018; Remo, 2019).

Emotional support emerges as a key influencer of students' financial literacy, particularly in

budgeting, highlighting the interpersonal dynamics crucial for proficiency in fundamental financial

Page 18 of 26
skills. Cultivating a habit of saving from an early age is highlighted as vital for superior financial

capabilities, including retirement planning (Lucas, 2018).

Demographic factors, including gender, age, specialization, and socioeconomic status, play

pivotal roles in shaping financial literacy. Gender disparities reveal male students scoring higher in

certain financial aspects, while female students excel in financial planning (Amagir et al., 2020).

Family influence and international perspectives underscore the interconnectedness of financial

literacy with various life facets (Hanson and Olson, 2018; Niu et al.).

This delves into the impact of age maturity, noting distinctive financial behaviors among

millennials and the necessity for enhanced financial capability amid economic uncertainties, such

as the Covid-19 pandemic. Socioeconomic status emerges as a key determinant affecting financial

literacy, with individuals in better economic conditions displaying superior skills in managing

finances (Dewi, Vera Intanie, 2022).

Challenging assumptions about saving mechanisms, underscores the transformative

potential of financial education programs. These initiatives positively impact both financial attitudes

and behaviors among high school students, as evidenced by studies like the SchoolBank project in

Georgia and longitudinal analyses (Özdemir B and Uyanik GK, 2021; Irakli Barbakadze, 2018;

Chen Tian and Chunhui Wang, 2022).

Emphasizing the importance of financial literacy in poverty reduction and overall economic

well-being, financially literate individuals are portrayed as better positioned to make informed

decisions and navigate financial challenges (Jaime Aristotle B. Alip, PhD, 2023; Marquez, 2023).

Early financial education stands out as a foundational element for developing solid financial habits

and ensuring long-term financial security.

A study addressing the gap in understanding how financial literacy among low-income

groups influences their participation in Digital Entrepreneurship (DE) is introduced. The study

Page 19 of 26
proposes hypotheses related to financial inclusion (FI) and digital literacy (DL) as mediators and

moderators, highlighting the evolving dynamics of digital technology's impact on DE participation

among those with limited resources.

Chapter IIl

Research Design

The researcher used the descriptive design. According to Shona McCombes (2019),

descriptive research aims to accurately and systematically describe a population situation or

phenomenon. It can answer what, where, when, how questions, but not why questions.

A descriptive research design can use a wide variety of research methods to investigate

one or more variables. Unlike in experimental research, the researchers do not control or

manipulate any of these variables, but only observes and measures them.

Research Instrument

This study focuses on the knowledge and understanding of the three strands at Palo Alto

Integrated School with a specific emphasis on addressing financial illiteracy. The researcher

utilized the survey results to identify participants and aims to assess the current level of financial

literacy among students, while also exploring their attitudes, behaviors, and overall financial

knowledge. This comprehensive approach seeks to provide valuable insights for designing

targeted educational interventions and initiatives.

Rating Interpretation

5 Strongly Agree

4 Agree
Page 20 of 26
 Rating Interpretation

5 Strongly Agree

4 Agree

2 Disagree

1 Strongly Disagree

First of all we thank you for the time you are giving to do this survey. We assure you

of confidentiality in handling your information. The data we will be collecting will be used

strictly for research purposes only. We are once again grateful for your willing

participation in this survey.

Demographic Profile

Name (Optional): Sex:

Grade: Strand:

Estimated Family Income (Monthly): 0 Below 8 000 8 000 – 16 000 16 000 –

32 000 32 000 – 80 000 Above 80 000

PUT A CHECK () ON THE BOX THAT CORRESPONDS TO YOUR ANSWER. MAKE SURE TO

1-Strongly Disagree 2-Disagree 3-Neutral 4-Agree 5-Strongly Agree

Section A: Financial Knowledge 5 4 3 2 1

I feel confident in my knowledge and ability to

manage my own finances.

I consider myself to be financially literate (able

to maximize present money in order to gain
financial stability).

I am aware of the exchange rate of peso.

Page 21 of 26
I obtain financial knowledge and learn
financial management on my own.

I am aware of the of inflation rate in the

Philippines

I read and understand a contract/s especially

involving money before signing.

I learn financial management and obtain

financial knowledge through my parents.

1- Never 2 - Seldom 3 - Sometimes 4 - Often 5 - Alway

Section B: Financial Behavior 1 2 3 4 5

Comparison shopped when purchasing a

product or service

Paid all your bills on time

Kept a written or electronic record of your

monthly expenses

Stayed within your budget or spending plan

Paid off credit card balance in full each

month

Maxed out the limit on one or more credit

cards

Made only minimum payments on a loan

Began or maintained an emergency savings

fund

Saved money from every paycheck

Saved for a long-term goal such as a car,

education, home, etc

Contributed money to a retirement account

Bought bonds, stocks, or mutual funds

Before I buy something I carefully consider

whether I can afford it

Maintained or purchased adequate life

insurance

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 1-Strongly Disagree 2-Disagree 3-Indifferent 4-Agree 5-Strongly Agree

Section C:Financial Attitude 1 2 3 4 5

I find it more rewarding to spend money than

to save for the future.

Money is made to spend.

I tend to live today and let tomorrow happen

I set long term financial goals and strive to

achieve them

I find it more satisfying to spend money than

to save it for the long term

I am prepared to risk some of my own

money when saving or making an
investment

Money is there to be spent

I set long term financial goals and strive to

achieve them

Procedures

Data Gathering

The researchers will follow a formal process to formulate questions, guided and approved

by the research supervisor of the senior high school in Palo Alto Integrated School. These

questions will be validated by competent professionals in the accountancy, business, and

management field. A pilot test will be performed to ensure reliability. As this study deals with

different senior high school students as its respondents, the data gathering will begin by searching

for students in each strand at Palo Alto Integrated School. After identifying the students in each

strand, the researchers will ask either teachers or authorities from the chosen strand to determine

the number of senior high school students enrolled in the strand. A written request will be given to

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the principals or heads of the school to gain approval for surveying their students. The application

will be approved by the researchers' own senior high school department head and school principal.

When given the signal of approval, the researchers will head out and meet with their respective

respondents.

b. Data analysis

To determine the correlation of different variables, the researchers analyzed the data using

a statistical tool called . This research mainly uses two research designs namely, descriptive

analytical scheme. The descriptive-analysis is a measure that gives figures that summarize a given

data set.

The descriptive-analytical scheme applied for objectives 1 and objective 2.

Objective 1 determined the level of financial literacy when grouped according to sex, grade

level, strand, and family monthly income

Objective 2 . determined the financial literacy of senior high school students in the following

areas: financial attitude, financial behavior and financial knowledge.

Objective 3 which analyzed if there is a significant difference in the level of financial literacy

when grouped according to sex, grade level, strand, and family monthly income.

c. Statistical treatment

The data were gathered, evaluated, and analyzed statistically using the likert scale. Likert

scale helped answer the specific objectives and hypothesis formulated in this study.

Frequency count and percentage were used to determine the demographic profile of the

variables sex, grade level, strand and family monthly income. The frequency distribution allows an

overview of data and provides a more natural way to find patterns, interpret data and calculate the

percentage.

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 Problem 1 used both mean and ANOVA as it aimed to determine the level of financial

literacy when the participants are grouped according to sex, grade level, strand, and estimated

family monthly income respectively. Likert scale to be able to acquire the mean and ANOVA.

Specifically, mean was used for the variables with only two categories. These were sex and grade

level. On the other hand, the ANOVA applies for variables with more than two classes; these were

standard and estimated family monthly income.

Problem 2 used mean as it aimed to determine the level financial literacy of senior high

school students in the following areas: financial attitude, financial behavior and financial knowledge

Problem 3 used the t-test to determine if there was a significant difference in the level of

financial literacy when grouped according to sex, grade level, strand, and estimated family monthly

income. The researchers computed for the means by using the data gathered to determine the

level of financial literacy of the students. It is appropriate to use the mean because it is the most

stable measure of central tendency. The likert scale then generates the obtained mean scores to

correlate them with the variables: sex, grade level, strand, and estimated family monthly income.

The mean would be interpreted using the figures shown in the table Using these interpretations, it

is then easy for the researchers to achieve their objectives.

Likert Scale Interpretation

Mean Scale Interpretation

4.21 - 5.00 Strongly Agree

3.41 - 4.20 Agree

2.61 – 3.40 Neutral

1.81 - 2.60 Disagree

1.00 - 1.80 Strongly Disagree

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