BASIC FINANCIAL LITERACY

AMONG SENIOR HIGH SCHOOL

HUMSS STUDENTS
A RESEARCH BY
GRADE 12 HUMSS-HONOR
CHAPTER 1
BACKGROUND OF THE STUDY

In the Philippines, financial literacy is becoming more crucial as the

country's economy continues to grow. Despite this, the country's education
system does not prioritize teaching financial literacy to students, including
senior high school students. Lack of financial education is a serious problem
that not only impacts the students but also the stability of the national
economy. In addition, studies show that financial literacy is lower among the
younger generation, including senior high school students. This gap in
knowledge poses a significant challenge to these students who will soon be
managing their finances as they transition into adulthood.
The significance of this study lies in its potential to improve financial literacy
education in the Philippines. The results of this study can be used to develop
effective financial education programs that cater to the needs of Senior High
School Students, particularly those enrolled in the HUMSS strand. By
addressing the gaps in financial literacy education among senior high school
students, this study can contribute to the development of a financially literate
population in the Philippines. Ultimately, a financially literate population can
lead to economic stability and a brighter future for the country
THEORETICAL FRAMEWORK

The Capability Approach (CA) developed by Amartya Sen provides a

useful lens for understanding financial literacy among Senior High School
HUMSS Students in the Philippines. According to the CA, individuals'
well-being should not be measured solely by their economic output but
also by their ability to live the life they value. Sen argues that an
individual's freedom to choose and achieve their desired outcomes is a
function of their capabilities or abilities to do and be what they value.
CONCEPTUAL FRAMEWORK
Financial literacy is a relatively new field of economics and became a hot

topic for the Students. Financial literacy originated from the field of

psychology that highlights that the individuals cannot make decisions

without being influenced by their financial conditions, and individuals are

assumed to have rationality limitation. Later on, many empirical

researches result that are related to financial based-psychology which

reinforce doubts about the concept of traditional finance and the theories

that had become the foundation of financial literacy.

STATEMENT OF THE PROBLEM

This study aims to investigate the level of basic financial literacy

among Senior High School (SHS) HUMSS Students in DHSBNHS, as
well as the factors that may contribute to the lack of financial
knowledge among this group.

The findings of this study will contribute to the understanding of the

financial literacy gap among SHS HUMSS Students, and will provide
insights into the development of effective financial education programs
that can improve their financial literacy and overall financial well-
being. Ultimately, this study aims to support the development of
financially responsible and financially literate young adults.
SIGNIFICANCE OF THE STUDY

The significance of studying basic financial literacy among

senior high school students is multifaceted. Financial literacy
refers to the knowledge and skills required to make informed
and effective decisions regarding financial matters. Senior
high school students are at a crucial stage in their lives where
they are transitioning into adulthood and will soon be making
significant financial decisions.
DEFINITION OF TERMS

BUDGET. A budget is a financial plan that outlines expected income

and expenses over a certain period of time, typically a month or a year.
It helps individuals or organizations to plan and manage their finances
effectively.
FINANCIAL EDUCATION. Refers to the process of providing
individuals or groups with knowledge and skills to manage their
finances effectively. It may involve courses, workshops, or resources
designed to improve financial literacy
FINANCIAL LITERACY. Is the ability to understand and manage one’s
personal finances effectively. It involves knowledge and skills related to
budgeting, saving, investing, managing, and making informed financial
decisions.

SAVINGS. Savings refer to the amount of money that an individual or

organization sets aside from their income for future use or emergencies. It is an
important financial habit that enables individuals or organizations to achieve
their financial goals.

SPENDING HABITS. Refers to an individual’s patterns of spending money.

It includes the types of goods and services that an individual spends money on
how frequently they make purchases, and the amount of money spent.
CHAPTER 2
REVIEW OF RELATED
LITERATURE

There is a growing body of literature on financial literacy,

particularly in the context of educational institutions. While there
are no specific studies of financial literacy among Senior High
School students (HUMSS) in the DHSBNHS, a few studies
provide insight into financial literacy among similar groups and in
similar settings.
 A study by G. Argudin et al. (2020) focused on the financial
literacy of secondary school students in Spain. The study showed that students
had low levels of financial literacy and there was a need to include financial
education in the school curriculm.

A study by G. Argudin et al. (2020) focused on the financial literacy of

secondary school students in Spain. The study showed that students had low
levels of financial literacy and there was a need to include financial education in
the school curriculum. This study underscores the importance of providing
financial literacy for high school students, especially given the potential lifelong
implications of financial decisions made at an early age include financial
education in the school curriculum. This study underscores the importance of
providing financial literacy for high school students, especially given the potential
lifelong implications of financial decisions made at an early age
 Another study by S. Oh and J. Lee (2020) examined
the relationship between financial literacy and financial
behavior among students in South Korea. The study found that
financial literacy was positively associated with responsible
financial behaviors such as saving and investing. This study
underscores the importance of not only teaching financial
literacy, but also ensuring that students can put this knowledge
to practical use.
In the Philippine context, a study by J.A. Villanueva et al. (2017)

examined the level of financial literacy among students in the

Philippines. The study found that while the students had a basic

understanding of financial concepts, their level of financial

literacy was still relatively low. This study suggests a need to

extend financial literacy beyond middle school into high school.

CHAPTER 3

Research Methodology

This chapter presents crucial details of the research study, including the
research design, the subjects and respondents involved, the population and
sample size, the sampling techniques employed, the data gathering instrument
utilized, and the validity and reliability of the research instrument.
Furthermore, this chapter highlights the data analysis method that will be
employed in this study. By comprehensively discussing these aspects, this
chapter provides a clear understanding of the research methodology and the
steps taken to ensure the accuracy and reliability of the study's findings.
Research Design

This research study aims to determine the level of basic financial literacy among
senior high school grade 12 HUMSS students. To achieve this objective, the
researchers will employ a descriptive research design. Descriptive research is a
method used to describe the characteristics of a population or phenomenon being
studied. Unlike other research designs, descriptive research does not answer the
questions of how, when, and why the characteristics occurred. Instead, it
addresses the question of what, providing a detailed and accurate description of
the research problem. Descriptive research can be quantitative or qualitative
depending on the purpose of the research. As Fely David explains, a descriptive
research project describes a situation or state of affairs in relation to certain
aspects or factors. This approach goes beyond simply describing the problem and
attempts to explain the possible factors involved in the problem by conducting an
explanatory study of it. The study design includes summary data such as measures
of central tendency, including mean, median and mode, deviation from mean,
volatility, percentage and correlation among variables. As Borg and Gall (1989)
point out, the descriptive function of research relies heavily on measurement and
observation tools. Through the use of this research design, the study aims to
provide a comprehensive understanding of the basic financial literacy among
senior high school grade 12 HUMSS students.
Research Instrument

The data required for the study the researchers conducted

were gathered using a questionnaire based on previous research
instruments. The questions compiled from different surveys where
critically selected by the researchers to achieve the objectives. To
ensure the quality and validity of competent individuals from
within the school campus, who process expertise in the field, were
involved in the validation process. This individual critically
reviewed the questionnaire, providing valuable insights and
suggestions for improvement. Their expertise and familiarity with
the school environment further enhanced the questionnaire’s
relevance and suitability for the study. The self-made questionnaire
underwent reliability testing to assess its consistency and stability.
This involved administering the questionnaire to a sample group of
students and analyzing their responses. By examining the
consistency of the responses over time, the researchers could ensure
the questionnaire generates reliable and dependable data.
CHAPTER 4

RESULTS, DISCUSSION, AND IMPLICATIONS

In this chapter, tables are used to present the data to discuss the
analysis of the results of the survey. The discussions of the findings
would be supported by researches that have been published and
validated as reliable. The data presented are processed by the
researchers to summarize the findings of the study in a more
understandable manner.
 Table 1.1: Profiling

SEX

MALE 45 37.50%

FEMALE 75 63%

Table
TOTAL 1.1: Profiling 120 100%

As we conducted our research, we have 120 respondents in DHSBNHS-SHS

students under the HUMSS strand, there are 45 male students in a total of
37.50% and 75 female students in a total of 63%.
 Table 1.2: Profiling

AGE

16 5 4.17%

17 24 20.00%

18 69 57.50%

Table 1.2: Profiling

19 18 15.00%

20 4 3.33%

Total 120 100.00%

In our 120 respondents, 4.17% of the students aged 16 years old, 20% are
17 years old, 57.50% are 18 years old which takes up the majority of our
HUMSS population, 15% of the students are 19 years old and 3.33% are 20
years old or balik-aral students.
 Table 1.3: Profiling

FINANCIAL STATUS

5,000 – 10,000 86 71.67%

10-000 – 20,000 25 20.83%

Table
30,000 and 1.3:
aboveProfiling 9 7.50%

Cayetano, R.H. , Estrada, J.P., Laudit, E.B., & Orden, D.P. (2019), found out
that economic status is a common factor that affects the studies or the academic
performance of every student. Educational attainment becomes unattainable
because of financial problems.
Items Mean Interpretation

I am confident in my knowledge and ability to manage my 4.05833 Average

own finances.

I can do basic arithmetic. 3.64167 Average

I am aware of the inflation rate in the Philippines. 4.10833 Average

I learn financial management and obtain financial 3.89167 Average

knowledge through my past teacher.

Total 3.925 Average

Table 2: Level of Financial Knowledge

As presented in the table above, the students have an average level of
financial knowledge. According to De Bassa Scheresberg (2013), those
who have a greater level of financial literacy are more comfortable
making personal financial decisions and getting the right financial results.
In making their own financial decisions, they employ both financial
instruments for saving and investing
Items Mean Interpretation

I spend more on my wants compared to needs. 3.16667 Average

I treat people often / I spend money on others. 3.05833 Average

I spend money whenever I just received my allowance / any source of 3.06667 Average

cash.

I am an impulsive buyer. 3.05833 Average

Total 3.0875 Average

Table 3: Level of Spending Habits

As shown in the table above, the HMSS students of DHSBNHS-SHS have an

average level of spending habits. Over time, attitudes around money have evolved,
and students today are being brought up to be comfortable with debt. People are
now using their credit cards to pay for expenses, including regular monthly bills,
rather than setting money aside for emergencies. The debt-free lifestyle that has
been coveted for generations has really been substituted with the simple act of
“paying bills on time” and, in many circumstances, “minimum payments”
(Diamond & O’Curry, 2003).
Items Mean Interpretation

I am able to allocate my budget to match with my spending. 3.95833 Average

I see to it that I would always have weekly or monthly savings. 3.80833 Average

I do written or electronic budget planning / preparation 3.41667 Average

I use my personal money (savings) for my wants and needs. 3.55 Average

Total 3.773332 Average

Table 4: Level of Saving Habits or Budgeting Practice

As presented in the table above, to be successful in financial management, a person must
have good money management skills. It has been proposed that a student’s ability to manage
their finances is a factor in their overall academic success and retention (Melissa McElprang
Cummins, Janaan Haskell, and Susan Jenkins, 2005). Erskine et.al
(2005) has mentioned in his research on financial savings before young Canadians (aged 12-
24) judged that the behavior of teenage crowds toward savings and spending are highly
dependent on the social crowd surrounding them.
 Sex F %

Male 45
7.50%

Female 75 6.67%

Total 120

Table 5: Is there a significant difference in the level of financial literacy in terms

of sex?

 Females make up 63% of our research population, out of this percentage,

6.67% of them showed a high level of financial literacy. Meanwhile, out of
37.50% men, 7.50% of them showed a high level of financial literacy.
 Evidence shows that women have lower financial literacy levels than men
and that they have more difficulty than men in performing financial
calculations (Atkinson and Messy (2012), Mottola (2013), Agarwella et.
al., 2015).

 Women also do not seem to master basic financial concepts and they show
a lower level of financial knowledge, which makes it difficult to take
responsible financial decisions, (Sekita (2011), Bucher-Koenen et. al.
2017).
CHAPTER 5

Based on the analysis of the questionnaire results, the study found the following
conclusions:
Level of Financial Knowledge: The average level of financial knowledge
among Senior High School HUMSS students is considered average. While
students express confidence in their ability to manage their finances and are
aware of the inflation rate in the Philippines, there is room for improvement in
areas such as basic arithmetic skills and obtaining financial knowledge from their
teachers.
Spending Habits: The average level of spending habits among Senior High
School HUMSS students is considered average. Students tend to spend more on
wants compared to needs, engage in spending on others, and exhibit impulsive
buying behavior. This suggests a need for greater awareness and understanding
of responsible spending habits.
Saving and Budgeting Habits: The average level of saving and budgeting
habits among Senior High School HUMSS students is considered average. While
students demonstrate some ability to allocate their budget and have weekly or
monthly savings, there is room for improvement in areas such as written or
electronic budget planning and using personal savings for wants and needs.
The study indicates that there is a need to enhance the financial literacy of
Senior High School HUMSS students in the areas of financial knowledge,
spending habits, and saving and budgeting habits. By improving these aspects,
students can make more informed financial decisions and develop responsible
financial behaviors.