Effect of Financial Literacy on Spending Habits: A Descriptive Study among

ABM Students at ACLC College of Ormoc

A Research Paper
Presented to the Senior High School Faculty of
ACLC College of Ormoc City, Inc.

In Partial Fulfillment
Of the Requirements for the Inquiries, Investigation, and Immersion subject
Senior High School Department
Accountancy Business and Management

By

Aballe, Pinky D.
Armentano, Abigael E.
Bulado, Elvie Jane L.
Diano, Vincent L.
Guido, Trisha Mae B.
Laude, Natalie Nhez A.
Magsico, Princess Lea V.
Pepito, Erich Jane E.
Rafael, Rnyle V.
Seranias, Danica Rose M.

April 2024
APPROVAL SHEET
This research paper entitled, “Effect of Financial Literacy on Spending Habits: A Descriptive Study
among ABM Students at ACLC College of Ormoc” prepared, and submitted by Pinky D. Aballe,
Abigael E. Armentano, Elvie Jane L. Bulado, Vincent L. Diano, Trisha Mae B. Guido, Nathalie Nhez
A. Laude, Princess Lea V. Magsico, Erich Jane E. Pepito, Rnyle V. Rafael, Danica Rose M. Seranias,
in partial fulfillment of the requirements for the subject in INQUIRIES, INVESTIGATION, AND
IMMERSION has been examined and recommended for acceptance and approval for ORAL
EXAMINATION.

RESEARCH COMMITTEE

________ _ROBERT CAINDOC__________________

Research Adviser

PANEL 1 PANEL 2 PANEL 3

Member Member Member

JANICE D. AYA-AY
Chair

PANEL OF EXAMINERS

Approved by the committee on Oral Examination with a grade of PASSED/FAILED.

JANICE D. AYA-AY
Chair

PANEL 1 PANEL 2 PANEL 3

Member Member Member

______ _ROBERT CAINDOC__________

Research Adviser

Accepted and approved as partial fulfillment of the requirements for the subject in
INQUIRIES, INVESTIGATION, AND IMMERSION.
Date of Oral Examination PASSED/FAILED: April 18 , 2024.

JUDIE ROSE C. ALICAYA, LPT

SHS Coordinator
ABSTRACT

The research report provides descriptive statistics on the financial literacy and

spending habits of respondents. The financial literacy of the respondents is generally

good, with an overall weighted mean score of 2.91, indicating that the respondents have a

positive attitude towards managing their finances. The spending habits of the respondents

are also generally good, with an overall weighted mean score of 2.97, indicating that the

respondents exhibit good spending habits across different categories.

The findings suggest that the respondents have a good understanding of financial

concepts and generally make good spending decisions. However, there are areas for

improvement, particularly in managing borrowed money and spending on review

materials. The study also highlights the importance of comparing prices before buying

and waiting for items to be on sale. These findings can be useful for individuals and

organizations seeking to improve financial literacy and spending habits.

The limitations of the study include the small sample size, the lack of a control

group, and the reliance on self-reported data. Future research could address these

limitations and explore the impact of financial literacy on financial outcomes, such as

savings, debt, and credit scores. Additionally, the study could examine the impact of other

factors, such as income, education, and family background, on financial literacy and

spending habits.
ACKNOWLEDGEMENT

We extend our heartfelt gratitude to all individuals and organizations who

contributed to the completion of this study titled "Effect of Financial Literacy on

Spending Habits: A Descriptive Study among ABM Students at ACLC College of

Ormoc."

First and foremost, we express our deepest appreciation to the administration,

faculty, and staff of ACLC College of Ormoc for their unwavering support and assistance

throughout the research process.

We are also grateful to the ABM students who willingly participated in this study,

providing us with insightful responses and invaluable data. Their cooperation and

enthusiasm greatly enriched our research findings.

Furthermore, we acknowledge the assistance of Sir Robert Caindoc, Tine

Matuguina for their expertise in data analysis and interpretation, which significantly

contributed to the quality of our research outcomes.

Last but not least, we would like to thank our families, friends, and colleagues for

their understanding, encouragement, and patience during the duration of this research

endeavor.

This study would not have been possible without the collective efforts and support

of all those mentioned above. Thank you.

TABLE OF CONTENTS

TITLE PAGE i

APPROVAL SHEET ii

ABSTRACT iii

ACKNOWLEDGEMENT iv

TABLE OF CONTENTS v

LIST OF TABLES vi

LIST OF FIGURES vii

Chapter Page

I INTRODUCTION

Background of the Study 1

Statement of the Problem

Hypotheses

Significance of the Study

Scope and Delimitations of the Study

Definitions of Terms

II THEORETICAL BACKGROUND

Review of Related Literature and Studies

Theoretical Framework

Conceptual Framework

III RESEARCH METHODOLOGY

Research Method
Research Design

Research Environment

Sampling Method

Research Respondents

Research Instruments

Research Procedures

IV PRESENTATION, ANALYSIS, AND INTERPRETATION OF

DATA

V SUMMARY OF FINDINGS, CONCLUSION, AND

RECOMMENDATIONS

BIBLIOGRAPHY

APPENDICES

Transmittal Letter

Consent Form

Questionnaire

Result

Curriculum Vitae
LIST OF TABLE

Title Page

Financial Literacy of the Respondents 16

Spending Habits of the Respondents 18

Correlation between respondents’ level of Financial 19

and Spending Habits
LIST OF FIGURES

Title Page

Figure 1. Conceptual Framework 12

Figure 2. Research Environment 14
Chapter I

INTRODUCTION

This chapter includes the background of the study, statement of the problem,

hypothesis, significance of the study, scope and the delimitation, and the definition of

terms used.

Background of the Study

Financial literacy is increasingly recognized as a crucial skill for individuals to

navigate the complexities of modern financial systems and make informed decisions

about their personal finances (Lusardi & Mitchell, 2014). In today's society, where

consumerism and access to credit are prevalent, understanding financial concepts such as

budgeting, saving, investing, and debt management is essential for financial well-being.

The spending habits of individuals, particularly among students, play a significant

role in shaping their financial future (Fernandes, Lynch Jr, & Netemeyer, 2014). As

students transition into adulthood, they often face the challenge of managing their

finances independently for the first time. Therefore, exploring the relationship between

financial literacy and spending habits among students is pertinent to understanding how

financial knowledge influences financial behavior.

This study intends to fill is the lack of specific research on the effects of financial

literacy on spending habits among ABM students. While studies have explored the

broader relationship between financial literacy and financial behaviors, there is a need for

focused research on how financial literacy specifically impacts the spending habits of

students studying finance-related subjects. By conducting a descriptive study among

2

ABM students at ACLC College of Ormoc, we aim to contribute to the understanding of

how financial literacy influences spending decisions and behaviors.

This descriptive study aims to investigate the effect of financial literacy on

spending habits among ABM (Accountancy, Business, and Management) students at

ACLC College of Ormoc. By examining the financial literacy levels and spending

behaviors of students, this research seeks to identify patterns and correlations that can

provide insights into the effectiveness of financial education programs and inform

strategies for improving financial literacy among young adults.

Understanding the factors that influence spending habits among students can have

implications for educational institutions, promoting financial well-being, guiding future

research, improving educational practices, empowering students to make sound financial

choices, and financial institutions (Mandell & Klein, 2009). By promoting financial

literacy initiatives tailored to the needs of students, educators can empower them to make

informed financial decisions and cultivate responsible financial behaviors that will

benefit them throughout their lives.

Statement of the Problem

The primary objective of this research is to examine the effect of financial literacy

on spending habits among ABM students at ACLC College of Ormoc. Specifically, the

study aims to address the following objectives:

The research seeks to answer the following questions:

1. What is the level of financial literacy among ABM students?

3

2. How do ABM students allocate their spending across academic expenses,

food, and personal needs?

3. Is there a significant relationship between the level of financial literacy

and spending habits among ABM students?

Hypothesis

H0: There is no significant relationship between the level of financial literacy and

the spending habits of ABM students at ACLC College of Ormoc.

H1: There is a significant relationship between the level of financial literacy and

the spending habits of ABM students at ACLC College of Ormoc.

Significance of the Study

This study is significant in the following key areas:

Personal Financial Well-being: This research contributes to enhancing the

financial well-being of students by exploring how financial literacy impacts their

spending habits and overall financial health.

Future Researchers: The findings of this study can serve as a valuable

foundation for future research on financial literacy and consumer behavior, inspiring

further investigations in related fields.

Teachers: The findings of this study would benefit the teachers by being aware of

their student's level of financial literacy and spending habits, they will be able to know

what necessary skills they need to focus on in teaching their students.

4

Parents: The findings of this study will enable parents to determine how

financially literate their children are and to arm themselves with the information they

need to help their children become financially literate.

Educational Institutions: The study highlights the importance of integrating

financial literacy education into the curriculum to equip students with essential financial

skills, benefiting educational institutions like ACLC College of Ormoc.

Empowering Students: The research has the potential to empower students to

make informed financial decisions, develop responsible financial behaviors, and strive for

financial independence and stability.

Overall, the study has implications for promoting financial well-being, guiding

future research, improving educational practices, and empowering students to make

sound financial choices.

Scope and Delimitations of the Study

The scope of the study includes focusing specifically on ABM students, analyzing

their financial literacy levels, and exploring their spending behaviors. Data will be

collected through surveys, interviews, or questionnaires to assess financial literacy and

spending habits. The analysis will investigate how financial literacy impacts spending

habits and may provide insights into ways to enhance financial education and encourage

responsible spending among students.

However, the study has certain delimitations to consider. These include potential

limitations in sample size due to resource constraints, which may affect the
5

generalizability of the findings to a wider population of ABM students. External factors

such as economic conditions or individual circumstances of participants could also

influence spending habits and may not be fully accounted for in the study. Additionally,

the study's timeframe may be limited, focusing on a specific period and potentially not

capturing long-term changes in financial literacy and spending behaviors. Furthermore,

biases in data collection methods, participant responses, or researcher interpretations

could introduce potential distortions in the study results. These scope and delimitations

provide a framework for understanding the specific boundaries and considerations of the

research study on financial literacy and spending habits among ABM students at ACLC

College of Ormoc.

Definition of Terms

Allocation of Spending: Allocation of spending refers to how ABM students

distribute their financial resources among different categories of expenses, including

academic expenses, food, and personal needs. This can be measured quantitatively in

terms of the proportion of income or total expenditure allocated to each category.

Financial behavior - defined as how good a household or individual manages

finances such as Saving habits, Budgeting habits, Debt Management Habits, and

Spending Habit.

Financial Knowledge – this refers to the sufficient knowledge about facts and

personal finances and is the key to the personal financial management behaviors.
6

Financial Literacy - refers to the capacity to comprehend and use a variety of

financial concepts and abilities, such as personal financial management, budgeting, and

investing.

Saving: the deliberate refusal to spend money or other resources inorder to retain

them for later use.

Spending habits - is the way you are used to paying money for things, the things

you spent money for and how much you are used to spending, all of which is hard to

change.

Spending: the activity of exchanging money or other owned resourcesin order to

obtain something.
Chapter II

THEORETICAL BACKGROUND

Financial literacy encompasses grasping fundamental financial skills and

concepts. It involves not only acquiring knowledge but also effectively applying it in

one's own life. Individuals with financial literacy possess the understanding and

confidence needed to make informed financial decisions, enabling them to manage their

money responsibly, borrow and save wisely, and plan and invest for the future. Given the

increasing complexity of finances due to technological advancements and societal

changes, the significance of financial literacy is more pronounced than ever.

Consequently, it's imperative for college students to graduate with a strong foundation in

financial knowledge. However, financial literacy rates are declining, reflected in

Americans' financial behaviors—savings rates are dropping, debt is rising, and wages

remain stagnant. College students who prioritize financial literacy can overcome these

challenges and achieve financial comfort in the future.

Foreign Studies

According to Mason and Wilson (2000), financial literacy involves a "meaning-

making process" wherein individuals utilize a blend of skills, resources, and contextual

knowledge to process information and make decisions while considering the financial

consequences. From this definition, it can be inferred that financial literacy entails

decision-making using a mix of skills, resources, and contextual knowledge to assess

information and make financially sound choices.

8

A report released by the Wisconsin Hope Lab in 2018, examining 43,000 students

across 66 colleges and universities, revealed concerning findings: 36% of university

students struggle to afford enough food, while 42% of community college students

experience hunger or inadequate nutrition (Goldrick-Rab, Richardson, Schneider,

Hernandez, & Clare, 2018). Acquiring financial literacy presents a promising avenue for

enhancing the financial capacity of today's youth (Duquette, 2018). Students often lack

clarity regarding their priorities and may spend on non-essential items, leading to

overspending (Paine, 2012).

Teens in the United States and their spending habits in the research entitled

"Taking Stock with Teens Survey" conducted by Piper Jaffray in 2017 aims to analyze the

consumption patterns and preferences of teenagers in the United States, which is an

essential aspect of understanding consumer behavior and market trends. The survey's

findings indicate that a significant portion of teenagers' spending (40%) is allocated to

clothing, accessories, and footwear. This highlights the importance of fashion and

personal appearance in the lives of American teenagers. Additionally, food accounts for

another fifth of their spending, suggesting that they also prioritize their social life and

enjoy dining out or purchasing food items.

In essence, financial literacy boils down to 'budgeting.' It is not mandatory to be a

finance professional to possess financial literacy; rather, it necessitates the ability to

optimize current funds to attain financial stability. Given that students are expected to

earn income in the future, it's crucial for them to learn money management skills. A study

by Acheampong, Kyei-Baffour, Hanson-Cobbinah, & Osei (2015) found that nearly half
9

of the surveyed university students lack financial literacy, partly due to the systematic

absence of personal finance education in college curricula.

Local Studies

In the Philippine context, where commodity prices are soaring and the value of

money holds significant importance, prudent spending becomes crucial. This highlights

the significance of budgeting, as pointed out by De Guzman et al. (2012). By practicing

responsible spending and adhering to a well-planned budget, individuals can effectively

manage their finances amidst rising commodity prices and maintain financial stability.

According to "Financial Management" by Ferdinand L. Timbang (2015), financial

planning becomes crucial in scenarios where individuals or groups face financial

challenges, uncertainties, or need to allocate resources effectively. Financial planning

serves as a comprehensive approach to managing finances by facilitating both short-term

and long-term decision-making processes.

This systematic process helps individuals or organizations to set financial goals,

analyze their current financial situation, evaluate various alternatives, and determine the

most suitable course of action to achieve their objectives. By acting as a foundation for

fund allocation, financial planning ensures that resources are used efficiently and

effectively, both in the present and in the future, ultimately contributing to financial

stability and growth.

Regarding spending habits, poor spending patterns stem from a lack of self-

discipline characterized by continued overspending. According to social learning theory,

spending habits are acquired from parental and influential figures' behaviors (Fluellen,
10

2013). Childhood experiences, including parental money management approaches and

lessons, significantly shape spending habits (Hadzic & Poturak, 2014). Socialization

agents such as family and peer groups exert considerable influence on individuals'

attitudes toward money (Hadzic & Poturak, 2014). Pillai et al. (2010) emphasize that

young adults' spending habits play a pivotal role in the sustainability of their finances and

are critical to financial prudence. Financially literate students typically allocate a greater

proportion of their funds to durable goods like housing, education, and investments rather

than to consumables, highlighting the desirability and recommendation for universities to

enhance students' financial literacy (Shaari et al., 2013).

11

Theoretical Framework

According to the Theory of Planned Behavior (TPB), an individual's intentions to

perform a behavior are influenced by three main factors: their attitude towards the

behavior, subjective norms, and perceived behavioral control. In the context of financial

literacy and spending habits, individuals with higher levels of financial literacy are likely

to have more positive attitudes towards responsible spending, recognize social norms

favoring prudent financial management, and feel greater control over their spending

decisions. Consequently, these individuals are more inclined to prioritize academic

expenses, understanding the importance of investing in education, and manage food and

personal needs spending more effectively, aligning their behavior with their financial

goals. Thus, TPB provides a framework for understanding how financial literacy

influences spending habits across various expenditure categories, emphasizing the role of

attitudes, social influences, and perceived control in shaping financial behaviors.

12

Conceptual Framework

The following diagram shows the independent and the dependent variables of the

study which help grasp and understand what the research is about. The conceptual

framework is formulated to explain the relationship between dependent variables and

independent variables. In this study, spending habits across academic purpose, food, and

personal needs are regarded as a dependent variable whereas; financial literacy is

categorized as independent variables.

Figure 1. Conceptual Framework.

Spending Habits:
 Academic
purposes
FINANCIAL LITERACY
 Food
 Personal
Needs

Independent Variable Dependent Variable

Chapter III

RESEARCH METHODOLOGY

This chapter presents the research methodologies used in the study. This covers

the research method, research design, locale of the study, sampling method, respondents

of the study, research instrument, and data-gathering procedure.

Research Method

The research methodology for examining the relationship between financial

literacy and spending habits is currently unavailable. However, a general outline of how a

study could be conducted includes a quantitative research design, sampling a

representative sample of individuals with financial knowledge or literacy, data collection

using validated tools, data analysis using statistical techniques like correlation and

regression, and interpretation of results to understand the relationship between financial

literacy and spending habits.

Research Design

Descriptive-Correlation design method of research will be used in this study. The

descriptive- correlation is simply defined as a relationship between two variables. The

whole purpose of using correlations in research is to figure out which variables are

connected. This method provides essential knowledge about the concepts used in the
14

study as well as their relationship with each other. Hence, this research type is deemed to

be the most appropriate for the perceived since this involved assessment of the given

condition.

Research Environment

The study will be conducted at ACLC College of Ormoc, a higher education

institution located in Ormoc City, Leyte, Philippines. This school is chosen as the locale

of the study due to its student population and the availability of the Accountancy and

Business Management (ABM) strand under its Senior High School program.

Figure 2. Research Environment.

Source: Facebook page of ACLC College of Ormoc.

Sampling Method

To ensure a representative sample, a random sampling technique was employed.

By using a random sampling technique, the study aims to ensure that every ABM student

at ACLC College of Ormoc has an equal chance of being selected for the study. This
15

helps to minimize bias and increase the generalizability of the findings to the larger

population of ABM students in the ACLC College of Ormoc. To implement the random

sampling technique, the researcher will obtain a list of all ABM students enrolled in

ACLC College of Ormoc. From this list, a predetermined sample size was determined

based on the desired level of statistical power and precision. By employing a random

sampling technique, the study aims to ensure that the selected sample is representative of

the larger population of ABM students in ACLC College of Ormoc. This enhanced the

generalizability of the findings and increased the validity of the study's conclusions.

Research Respondents

The research respondents for this study primarily consist of ABM (Accountancy,

Business Administration, and Management) students enrolled at ACLC College of

Ormoc. These students are chosen as they are likely to have a strong interest in financial

matters and may influence the economic landscape in the future. The study aims to gather

insights into the relationship between financial literacy and spending habits among this

specific population.

Research Instrument

The primary instrument used for data collection was a questionnaire, adopted

from previous research studies titled "Determinants of Saving Behavior among

16

University Students in Malaysia" by Thung et al. (2012) and "Spending Behavior of

Management Students of University of Saint Louis Tuguegarao, Cagayan" by Abawag et

al. (2019). The questionnaire comprised two parts: the first part assessed the financial

literacy of the respondents, while the second part focused on their spending habits related

to academic, food, and personal needs. A 4-point Likert Scale was utilized to gather

responses from the participants.

Research Procedures

In the initial stage, the researchers will prepare for the data collection process.

They will design a survey questionnaire using Google Forms, which will be the primary

tool for gathering information. To ensure the participants' rights and well-being, the

researchers will obtain informed consent from the ABM students at ACLC College of

Ormoc before administering the questionnaire. This step is crucial as it allows the

participants to understand the purpose of the study and their right to withdraw from the

research at any time without consequences.

Once the informed consent is obtained, the researchers will proceed with the

actual data collection. They will distribute the survey questionnaire through the Google

Forms link to the target population, ensuring that each participant completes the

questionnaire independently. This approach will help maintain the anonymity and

confidentiality of the responses, encouraging honest and accurate information. The

researchers will closely monitor the data collection process, ensuring that the
17

questionnaire is being filled out correctly and addressing any queries or concerns that

may arise.

After the data collection phase is complete, the researchers will move on to the

final stage of the procedure. They will analyze the collected data, focusing on the

participants' financial literacy levels and spending habits. This analysis will involve the

use of descriptive statistics to summarize and present the findings. The researchers will

also ensure the quality and validity of the data by conducting appropriate checks and

verifying the responses, if necessary. Finally, they will prepare a comprehensive report

detailing the study's findings, discussing the implications and contributions to the existing

literature on financial literacy and spending habits among ABM students at ACLC

College of Ormoc.
Chapter IV

PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

This chapter provides the presentation of data of statistical data relative to the

problems posted in the SOP. The corresponding analysis and interpretation of data are

incorporated in this portion of the study.

Findings:

Descriptive Analysis

Table 1. Financial Literacy of the Respondents

Verbal Qualitative
Financial Literacy (n=145) Mean Interpretation Description

1. I understand how to invest my money. 3.05 A G

2. I understand how to manage my borrowed money
3.09 A G
when there’s something I want to buy.
3. I have a clear idea of my financial needs during
2.94 A G
retirement.
4. I can maintain financial records for my income and
2.90 A G
expenditure.
5. I have no difficulty in managing my money. 2.59 A G
6. I understand financial instruments (e.g., stock,
2.77 A G
bonds, T-bill, futures contracts, options, etc.
7. I can prepare my weekly/monthly budget. 2.99 A G
Overall Weighted Mean 2.91 Agree Good
Legend:
3.25 – 4.00 Strongly Agree (SA) – Excellent €
2.50 – 3.24 Agree (A) – Good (G)
1.75 – 2.49 Disagree (D) – Poor (P)
1.00 – 1.74 Strongly Disagree (SD) – Very Poor (VP)
19

Table 1 above presents the financial literacy of respondents (n=145). The

questions are qualitative descriptions, and the respondents' answers are quantified with a

mean score. The interpretation is based on a 4-point Likert scale, with scores ranging

from 1.00-1.74 (Very Poor), 1.75-2.49 (Poor), 2.50-3.24 (Good), and 3.25-4.00

(Excellent). The overall weighted mean for financial literacy is 2.91, indicating a

generally good understanding of financial concepts. "I understand how to invest my

money." (x̄ = 3.05). "I understand how to manage my borrowed money when there’s

something I want to buy." (x̄ = 3.09). "I have a clear idea of my financial needs during

retirement." (x̄ =2.94). "I can maintain financial records for my income and expenditure."

(x̄ =2.90). "I have no difficulty in managing my money."(x̄ =2.59). "I understand financial

instruments (e.g., stock, bonds, T-bill, futures contracts, options, etc." (x̄ =2.77). "I can

prepare my weekly/monthly budget.” (x̄ =2.99). The overall weighted mean score of 2.91

suggests that the respondents generally have a good understanding of financial concepts,

as most of the mean scores fall within the "Agree, Good" category on the Likert scale.

Table 2. Spending Habits of the Respondents

Verbal Qualitative
Academic Purpose (n=145) Mean Interpretation Description

1. I compare prices before I buy school supplies. 3.39 SA ESH

2. I prefer to buy school supplies from popular
bookstores such as National Bookstore, Pandayan 2.57 A GSH
Bookshop, Expression, etc.
3. I spend a large percentage of my money on review
2.70 A GSH
materials such as photocopies/ printed handouts.
4. I spend my money on computer shops when doing
2.28 D PSH
my school requirements.
5. I spend money on mobile data load, prepaid Wi-Fi
3.05 A GSH
load, etc.
Overall Weighted Mean 2.80 A GSH
20

Food
6. I compare prices before I spend money on food. 3.25 SA ESH
7. I prefer eating meals in our house, boarding house,
3.31 SA ESH
or apartment.
8. I often try food that is new and affordable. 3.17 A GSH
Overall Weighted Mean 3.24 A GSH
Personal Needs
9. I compare prices before I buy clothes, shoes, and
3.34 SA ESH
cosmetics.
10. I usually buy pre-loved items for clothes, shoes, and
2.96 A GSH
bags.
11. I prefer buying generic clothes, shoes, and bags
3.04 A GSH
because it is cheaper than
12. I spend a portion of my allowance on the rent of my
2.46 D PSH
apartment/ boarding house.
13. I wait for clothes, bags, shoes, and cosmetics to be
3.10 A C
on sale before buying.
Overall Weighted Mean 2.98 A GSH
Grand Weighted Mean 2.97 A GSH
Legend:
3.25 – 4.00 Strongly Agree (SA) – Excellent Spending Habits (ESH)
2.50 – 3.24 Agree (A) – Good Spending Habits (GSH)
1.75 – 2.49 Disagree (D) – Poor Spending Habits (PSH)
1.00 – 1.74 Strongly Disagree (SD) – Very Poor Spending Habits (VPSH)\

Table 2 is a descriptive statistics table that presents the spending habits of

respondents (n=145) across three categories: academic purpose, food, and personal needs.

The interpretation is based on a 4-point Likert scale, with scores ranging from 1.00-1.74

(Very Poor Spending Habits), 1.75-2.49 (Poor Spending Habits), 2.50-3.24 (Good

Spending Habits), and 3.25-4.00 (Excellent Spending Habits). The overall weighted mean

for academic purposes is 2.80 (Good Spending Habits), for food is 3.24 (Excellent

Spending Habits), and for personal needs is 2.98 (Good Spending Habits). The spending

habits of respondents, as indicated by the overall weighted means for each category and
21

the grand weighted mean, suggest that respondents generally exhibit good spending

habits, particularly in terms of comparing prices, preferring affordable options, and being

conscious of their expenses across different aspects of their lives.

Correlational Analysis

Table 3. Correlation between respondents’ level of Financial and Spending Habits

Financial Literacy Spending Habits
Financial Pearson Correlation 1 .393**
Literacy Sig. (2-tailed) .000
N 145 145
**
Spending Habits Pearson Correlation .393 1
Sig. (2-tailed) .000
N 145 145
**. Correlation is significant at the 0.05 level (2-tailed).

Table 3 above shows the correlation between respondent’s level of financial

literacy and spending habits. The Pearson correlation coefficient between financial

literacy and spending habits is 0.393, which is significant at the 0.05 level (2-tailed). This

means that there is a positive relationship between financial literacy and spending habits,

indicating that higher levels of financial literacy are associated with better spending

habits. correlation coefficient between financial literacy and spending habits is 0.393,

which is significant at the 0.05 level (2-tailed). This means that there is a positive

relationship between financial literacy and spending habits, indicating that higher levels

of financial literacy are associated with better spending habits. This finding is consistent

with previous research that has shown that individuals with higher levels of financial

literacy tend to have better spending habits, including managing their money effectively

and making informed financial decisions.

Chapter V

SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATIONS

The following sections summarize the key findings of the study, conclusions

based on these findings, and recommendations for improving financial literacy and

promoting better spending habits.

Summary of Findings
The data presented in the tables suggest that the respondents have a generally

good understanding of financial concepts, as indicated by the overall weighted mean

score of 2.91 for financial literacy. This score falls within the "Agree, Good" category on

the Likert scale, indicating that the respondents have a positive attitude towards

managing their finances.

In terms of spending habits, the respondents exhibit good spending habits across

different categories, with the grand weighted mean score of 2.97 falling within the

"Agree, Good Spending Habits" category on the Likert scale. Specifically, the

respondents have excellent spending habits when it comes to comparing prices before

buying food (3.25) and prefer to eat meals in their house, boarding house, or apartment

(3.31). They also have good spending habits when it comes to comparing prices before

buying school supplies (3.39) and personal items (3.34), and preferring to buy generic

items (3.04).

However, there are areas for improvement, particularly in terms of managing

borrowed money (3.09) and spending a large percentage of their money on review

materials such as photocopies/printed handouts (2.70). Additionally, the respondents tend

23

to spend a portion of their allowance on rent (2.46), which may indicate a need for better

financial planning and budgeting.

Overall, the data suggests that the respondents have a good understanding of

financial concepts and generally exhibit good spending habits. This finding is consistent

with previous research that has shown that individuals with higher levels of financial

literacy tend to have better spending habits, including managing their money effectively

and making informed financial decisions However, there are areas for improvement,

particularly in terms of managing borrowed money and spending on review materials.

Conclusion

In conclusion, this chapter has presented and analyzed data related to the financial

literacy and spending habits of the respondents. The findings indicate that the respondents

have a generally good understanding of financial concepts, as evidenced by their mean

scores for financial literacy. Additionally, the respondents exhibit good spending habits,

particularly in terms of comparing prices, preferring affordable options, and being

conscious of their expenses across different aspects of their lives. Furthermore, there is a

positive and statistically significant correlation between financial literacy and spending

habits, suggesting that higher levels of financial literacy are associated with better

spending habits. These findings have important implications for financial education and

literacy initiatives, as they highlight the importance of promoting financial literacy and

responsible spending habits among individuals. Overall, this study contributes to the

understanding of financial literacy and spending habits and provides valuable insights for

policymakers, educators, and practitioners working in this field.

24

Recommendations

Students are encouraged to proactively learn about budgeting and practice

financial management by setting goal savings and staying informed about economic

news. Parents play a crucial role as the first teachers of financial literacy for their

children, emphasizing the significance of early education on money matters. Teachers are

urged to possess adequate financial knowledge to effectively teach students about

financial management, fostering a collaborative learning environment. Local government

units, particularly education departments, are advised to integrate financial management

classes into school curriculums, focusing on high school students who are capable of

grasping the concepts. Additionally, initiatives such as practical activities can provide

students with hands-on experience in managing finances, further enhancing their

financial literacy skills.

25

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CURRICULUM VITAE

Name : Pinky D. Aballe

Email Address : delacruzaballepinzkie@[Link]

Contact Number : 09663029111

Place of Origin : Ormoc City, Leyte

Educational Background

Senior High Level : ACLC College of Ormoc City, Inc

: Brgy. Cogon, Ormoc City

: SY 2021-2023

Junior High Level : Valencia National High School

: Brgy. Valencia Ormoc City, Leyte

: SY 2018-2021

Elementary Level : Cabatoan Elementary School

: Brgy. Kadaohan Ormoc City, Leyte

: SY 2012-2018
CURRICULUM VITAE

Name : Abigael E. Armentano

Email Address : abigaelarmentano@[Link]

Contact Number : 09535619704

Place of Origin : Ormoc City, Leyte

Educational Background

Senior High Level : ACLC College of Ormoc City, Inc

: Brgy. Cogon, Ormoc City

: SY 2021-2023

Junior High Level : Valencia National High School

: Brgy. Valencia Ormoc City, Leyte

: SY 2018-2021

Elementary Level : Cagbuhangin Elementary School

: Brgy. Cagbuhangin Ormoc City, Leyte

: SY 2012-2018
CURRICULUM VITAE

Name : Elvie Jane L. Bulado

Email Address : elviejanebulado@[Link]

Contact Number : 09709260133

Place of Origin : Sto. Rosario Matag-ob,Leyte

Educational Background

Senior High Level : ACLC College of Ormoc City, Inc

: Brgy. Cogon, Ormoc City

: SY 2021-2023

Junior High Level : Matag-ob National High School

: San Guillermo Matag-ob,Leyte

: SY 2018-2022

Elementary Level : Sto. Rosario Elementary School

: Sto. Rosario Matag-ob, Leyte

: SY 2012-2018

CURRICULUM VITAE

Name : Vincent L. Diano

Email Address : dianovincent152@[Link]

Contact Number : 09934979367

Place of Origin : Brgy. Juaton, Ormoc City, Leyte

Educational Background

Senior High Level : ACLC College of Ormoc City, Inc

: Brgy. Cogon, Ormoc City

: SY 2021-2023

Junior High Level : Valencia National High School

: Brgy. Valencia, Ormoc City, Leyte

: SY 2018-2021

Elementary Level : Juaton Elementary School

: Brgy. Juaton, Ormoc City, Leyte

: SY 2012-2018
CURRICULUM VITAE

Name : Trisha Mae B. Guido

Email Address : guidotrisha031179@[Link]

Contact Number : 09485291414

Place of Origin : Ormoc City, Leyte

Educational Background

Senior High Level : ACLC College of Ormoc City, Inc

: Brgy. Cogon, Ormoc City

: SY 2021-2023

Junior High Level : Lim-ao National High School

: Brgy. Lim-ao, Kananga, Leyte

: SY 2018-2021

Elementary Level : Lim-ao Elementary School

: Brgy. Lim-ao, Kananga, Leyte

: SY 2012-2018
CURRICULUM VITAE

Name : Natalie Nhez A. Laude

Email Address : laudenatalie@[Link]

Contact Number : 09095641176

Place of Origin : Bryg. Catmon Ormoc City

Educational Background

Senior High Level : ACLC College of Ormoc City, Inc

: Brgy. Cogon, Ormoc City

: SY 2021-2023

Junior High Level : New Ormoc City National High School

: Brgy Don felipe larrazabal

: SY 2018-2021

Elementary Level : Catmon Elementary School

: Brgy. Catmon Ormoc City

: SY 2012-2018
CURRICULUM VITAE

Name : Princess Lea V. Magsico

Email Address : princessleamags19@[Link]

Contact Number : 09774516951

Place of Origin : Brgy. Kadaohan, Ormoc City

Educational Background

Senior High Level : ACLC College of Ormoc City, Inc

: Brgy. Cogon, Ormoc City

: SY 2021-2023

Junior High Level : Valencia National High School

: Brgy. Valencia, Ormoc City

: SY 2018-2021

Elementary Level : Cabatoan Elementary School

: Brgy. Kadaohan, Ormoc City

: SY 2012-2018
CURRICULUM VITAE

Name : Erich Jane E. Pepito

Email Address : pepitoerich12@[Link]

Contact Number : 09262330068

Place of Origin : Kananga,Leyte

Educational Background

Senior High Level : ACLC College of Ormoc City, Inc

: Brgy. Cogon, Ormoc City

: SY 2021-2023

Junior High Level : Kananga National High school

: Poblacion Kananga, Leyte

: SY 2018-2021

Elementary Level : Basey l Central National High School

: Basey, Samar
: SY 2012-2018
CURRICULUM VITAE

Name : Danica Rose M. Seranias

Email Address : danicaroseseranias@[Link]

Contact Number : 09997829242

Place of Origin : Leyte, Leyte

Educational Background

Senior High Level : ACLC College of Ormoc City, Inc

: Brgy. Cogon, Ormoc City

: SY 2021-2023

Junior High Level : Leyte Agro-Industrial School

: Leyte, Leyte

: SY 2018-2021

Elementary Level : Leyte Central School

: Leyte, Leyte
: SY 2012-2018
CURRICULUM VITAE

Name : Rnyle V. Rafael

Email Address : rnylerafael332@[Link]

Contact Number : 09124602761

Place of Origin : Tacloban

Educational Background

Senior High Level : ACLC College of Ormoc City, Inc

: Brgy. Cogon, Ormoc City

: SY 2021-2023

Junior High Level : New Ormoc City National High School

: Brgy Don flipe ormoc city

: SY 2018-2021

Elementary Level : Ormoc City Central school

: Carlos Tan St.

: SY 2012-2018
APPENDICES
Result

Descriptive Analysis

Table 1. Financial Literacy of the Respondents

Verbal Qualitative
Financial Literacy (n=145) Mean Interpretation Description

8. I understand how to invest my money. 3.05 A G

9. I understand how to manage my borrowed money
3.09 A G
when there’s something I want to buy.
10. I have a clear idea of my financial needs during
2.94 A G
retirement.
11. I can maintain financial records for my income and
2.90 A G
expenditure.
12. I have no difficulty in managing my money. 2.59 A G
13. I understand financial instruments (e.g., stock,
2.77 A G
bonds, T-bill, futures contracts, options, etc.
14. I can prepare my weekly/monthly budget. 2.99 A G
Overall Weighted Mean 2.91 Agree Good
Legend:
3.25 – 4.00 Strongly Agree (SA) – Excellent €
2.50 – 3.24 Agree (A) – Good (G)
1.75 – 2.49 Disagree (D) – Poor (P)
1.00 – 1.74 Strongly Disagree (SD) – Very Poor (VP)

Table 2. Spending Habits of the Respondents

Verbal Qualitative
Academic Purpose (n=145) Mean Interpretation Description

14. I compare prices before I buy school supplies. 3.39 SA ESH

15. I prefer to buy school supplies from popular
bookstores such as National Bookstore, Pandayan 2.57 A GSH
Bookshop, Expression, etc.
16. I spend a large percentage of my money on review
2.70 A GSH
materials such as photocopies/ printed handouts.
17. I spend my money on computer shops when doing
2.28 D PSH
my school requirements.
18. I spend money on mobile data load, prepaid Wi-Fi
3.05 A GSH
load, etc.
Overall Weighted Mean 2.80 A GSH
Food
19. I compare prices before I spend money on food. 3.25 SA ESH
20. I prefer eating meals in our house, boarding house,
3.31 SA ESH
or apartment.
21. I often try food that is new and affordable. 3.17 A GSH
Overall Weighted Mean 3.24 A GSH
Personal Needs
22. I compare prices before I buy clothes, shoes, and
3.34 SA ESH
cosmetics.
23. I usually buy pre-loved items for clothes, shoes, and
2.96 A GSH
bags.
24. I prefer buying generic clothes, shoes, and bags
3.04 A GSH
because it is cheaper than
25. I spend a portion of my allowance on the rent of my
2.46 D PSH
apartment/ boarding house.
26. I wait for clothes, bags, shoes, and cosmetics to be
3.10 A C
on sale before buying.
Overall Weighted Mean 2.98 A GSH
Grand Weighted Mean 2.97 A GSH
Legend:
3.25 – 4.00 Strongly Agree (SA) – Excellent Spending Habits (ESH)
2.50 – 3.24 Agree (A) – Good Spending Habits (GSH)
1.75 – 2.49 Disagree (D) – Poor Spending Habits (PSH)
1.00 – 1.74 Strongly Disagree (SD) – Very Poor Spending Habits (VPSH)\
Correlational Analysis

Table 3. Correlation between respondents’ level of Financial and Spending Habits

Financial Literacy Spending Habits
Financial Pearson Correlation 1 .393**
Literacy Sig. (2-tailed) .000
N 145 145
**
Spending Habits Pearson Correlation .393 1
Sig. (2-tailed) .000
N 145 145
**. Correlation is significant at the 0.05 level (2-tailed).