Liceo de Cagayan University Senior High School Page

FINANCIAL LITERACY AND

BUDGETING SKILLS OF SENIOR
HIGH SCHOOL STUDENTS

A Research Presented to the

Faculty of the Senior High School Department
Liceo de Cagayan University
Cagayan de Oro City

In Partial Fulfillment
of the Requirements for the Senior High School
Accountancy, Business and Management

Katherine Mae C. Anoc

Basty Cedrix Jandayan
Phoebe Jalen Lauzon
Jela Marie C. Montelibano
Zarah Mae O. Ponferrada
Lucky Queenie J. Ranalan
Jenniea Lyl R. Solatorio

February 2019
Liceo de Cagayan University Senior High School Page i

ACKNOWLEDGEMENT

We would like to express our deep gratitude to Mr. Floyd C. Alozo, our research

teacher, for being patient in guiding, encouragement and useful critiques of this research

work and for his advice and assistance in keeping our progress on schedule.

Our beloved parents for their support and encouragement throughout our study, for

their never-ending love, care, moral, financial and spiritual support as we journey towards

our pursuits of higher education.

To our classmates and friends who helped us to understand some words that are

confusing in terms of research, one way or another have helped us in all the fights that we

met in carrying out this present study. We wish to thank also the individual who heartily pay

in the internet shop for us to make this research.

And, above all, to the Almighty God who is the spring of bountiful wisdom and

blessings for making us reach this far.

Liceo de Cagayan University Senior High School Page ii

TABLE OF CONTENT
Page

COVER PAGE

ACKNOWLEDGEMENT i

TABLE OF CONTENTS ii-iii

Chapter

1 THE PROBLEM AND ITS SCOPE

Introduction 1-2

Theoretical and Conceptual Framework 2-3

Statement of the Problem 3

Hypothesis 3

Scope and Limitation 3-4

Significance of the Study 4

Definition of Terms 5

2 REVIEW OF RELATED LITERATURE AND STUDIES

Foreign Literature and Studies 6-11

Local Literature and Studies 11-15

3 METHODS

Research Setting 16

Research Design 16

Respondents and Sampling Procedure 16

The Research Instrument 17

Research Protocol 17
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Data Gathering Procedure 17

Statistical Treatment 18

Scoring Procedure 19

4 PRESENTATION, ANALYSIS, AND 20-23

INTERPRETATION OF DATA
5 SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS
Summary 24-25
Conclusions 25
Recommendation 26
REFERENCES 27-28

APPENDICES

A. Appendix 1. 29

B. Appendix 2. 30

C. Appendix 3. 31-32

D. Appendix 4.
Liceo de Cagayan University Senior High School Page 1

Chapter 1

THE PROBLEM AND ITS SCOPE

Introduction

Every student needs discipline towards saving money. Since education needs

financial support, students should acquire self-discipline, organization and confidence. These

are the three personal attributes that help people make saving money decisions, and should be

able to manage their varied finances (Jaising, 2013).

Students nowadays have low level of financial literacy. They are associated with

ineffective financial behaviors, including low saving, and impulsive buying which will affect

students’ financial well-being. And this problem must be handled as soon as possible to

prevent the students to be involved to a bigger problem from their small financial problem.

Apparently, the students need to have the important knowledge and the relevant

skills in the field of financial management to make sure that they will be able to reach out

their objectives. The need for financial literacy becomes inevitable since today’s world

markets are full of complicated products. Considering the spending habit of people and the

desire to have every material thing, it is therefore imperative to inculcate financial literacy

among people. Senior high school and college students in recent times tend to have easy

access to funds, but on the contrary have proven to have inadequate financial literacy and as

a result have become impulsive buyers (Danes, Huddleston and Boyce,2003).

The inadequate personal finance among Senior High School students then has

undesirable effects on students’ decision making. The issue of personal finance therefore

must be given the needed attention as students would be facing the realities of economic
Liceo de Cagayan University Senior High School Page 2

hardships after school. This implies that there is the need for students to be equipped with

financial literacy in order to achieve some degree of financial autonomy.

This study will highlight that teenagers have limited knowledge about finances. Even

if they have the knowledge, they are not practicing what they know. Budgeting is the missing

element in their management skill. As a result, most students failed to budget their money

effectively.

Furthermore, this study aims to consolidate the answers of the Senior High School

students of Liceo de Cagayan University- Senior High School on the level of financial

literacy and its relation to the budgeting skills. It purports to unveil the relationship between

their level of financial literacy and budgeting skills.

Theoretical and Conceptual Framework

According to Opoku (2015) The idea of personal finance has been described in the
literature as the awareness and use of financial knowledge in our day to economic activities.
Measuring Financial Literacy this study is guided on the 3 concepts of the root of
saving and investment decisions, these are: (1) numeracy and capacity to do calculations
related in interest rates. (2) understanding of inflation. (3) understanding of risk
diversification.
. A theory of personal budgeting by Simon Galperti (2016) who stipulated that
prominent research argues that consumers often use personal budgets to manage self-control
problems in consumptions-saving decisions it explains the subtle mechanism which renders
budget useful commitments, their interaction with minimum-savings rules and how
budgeting depends on the intensity of self-control problems.
Liceo de Cagayan University Senior High School Page

Level of Financial Literacy Budgeting Skills

3
Figure 1 presents the conceptual framework of the study.

This study will be conducted to assess the level of financial literacy and its relation to
the budgeting skills of senior high school students. A descriptive method of research will be
employed wherein questionnaires are composed of one-part section is saving.

Statement of the Problem

1. What is the level of Financial literacy of the participants?

2. What is the level Budgeting skills of the participants?

3. Is there a significant relation of the participants’ level of Financial literacy

and Budgeting skills?

Hypothesis
On the bases of the preceding questions, the following is the null hypothesis of the

study which was tested at 0.05 level of significance.

Ho1. There is a significant relationship between participants’ level of Financial

Literacy doesn’t affect to their Budgeting Skills.
Liceo de Cagayan University Senior High School Page

Scope and Limitation of the Study

The respondents of this study will be 30 randomly selected Senior High School

students from the following Academic Track STEM, ABM and HUMSS enrolled for the

school year 2018 -2019 in Liceo de Cagayan University.

This study will only tackle on the level of financial literacy and its relation to the

budgeting skills of senior high school students. The respondents are randomly selected with

only 30 students of the varied strands of Liceo de Cagayan University in order to pull out the

general answer of the students in all strands specifically for this school year.
4

The focus of this study is to conduct an empirical overview of financial literacy

among the students. The questionnaire to be used in this study is inherently limited in scope.

However, the needed information required for the survey will be collected irrespective of the

above mentioned limitation. The questionnaire is from VU ThuyDung.

Significance of the Study

The results of the study will be beneficial especially to the individuals, particularly

the following:

Students. The students would improve their attitude towards the saving money

Parents. The results of this study would give the parents insights on how to assist

their children in saving money.

Liceo de Cagayan University Senior High School Page

Teachers. Findings of this study would give information as to what are the

preferences of the students toward saving money.

. Future Researchers. This study would provide insights to future researchers to

replicate this study but with consideration of other variables not identified in this

investigation.

Definition of Terms

For better understanding of the study, the following terms are defined:

Financial literacy- how much an individual knows about saving, credit, debt,

investing, spending, budgeting, and retirement.

Senior high school- a high school student in the 11th and 12th grade.

Saving- a behavior having to do with acquiring wealth and accumulating monetary

resources for future goals.

Money- refers to the medium used for exchange, unit of account and store of value.
Liceo de Cagayan University Senior High School Page

Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter includes a review of various literature and studies which were found

relevant to the present study. Both foreign and local literature and studies were given

importance and consideration to serve as conceptual sources of the study.

Foreign Literature and Studies

Several studies have been done to relate financial literacy with financial behavior of

students. However, only few studies specifically analyzed the relationship between cash

management and college students. The term “cash management” means putting our money

into a current or savings account.

It means how we manage our cash and other liquid assets to meet our personal

financial goals. Good cash management is important because it will help us earn more

income to achieve our personal goal using our liquid assets. Cash management is one of

the most important aspects of financial management because it can significantly predict

financial problem and financial satisfaction. Researches on cash management knowledge

reveal that teenagers have limited knowledge about finances . Even if they have the

knowledge, they are not practicing what they know. Budgeting is the missing element in
Liceo de Cagayan University Senior High School Page

their financial management skill. As a result, most students failed to budget effectively

because they spent more than they earned .

Study on Swedish students saving behavior shows that female students have a more
7
positive attitude towards saving and are slightly more motivated to save while male have

more positive attitude towards stocks. In other words, female are more risk averse than

male. Younger people should have a bigger proportion of their savings in riskier assets

such as stocks . They have long saving horizons and many years of steady income to cover

any potential losses.

Income is not the only determinant of students’ saving and consumption. They

save because their parents want them to save or because of a reward or for a sense of pride .

Whereas their consumptions are mainly affected by how much their family, neighbors and

friends consume. Nowadays, the spending potential of most youngsters is driven by their

desires rather than economic needs . They spent almost 82% of their income on

entertainment, clothing, cosmetics and transportation . They only imitate their parents

when it comes to buying personal clothing, toiletry articles, transportation, insurance

policies, appliances and food . This shows that they have different attitude compared to their

parents.

The learning process is actually generated through daily exposure and proper

communication and discussion between family members followed by trial and error.

Parents believe that the training should start as early as nine years old by giving them

allowances .
Liceo de Cagayan University Senior High School Page

Students that come from families which discuss financial issues and providing more

financial advices have better money management skills. They only discuss the financial

matters with families an not with close friends. Study on Malaysian students supports

that parents and family have greatest impact on students’ financial management and

savings attitude. 8

There have been many studies to define financial literacy. Gale and Levine (2010)

define financial literacy as the ability to make informed and effective decisions about using

and managing wealth and money. Atkinson and Messy (2012) define the financial literacy as

a combination of awareness, knowledge, skills, attitudes and behaviours necessary to make

sound decisions to reach individual financial wealth. According to Lusardi and Mitchell

(2014), financial literacy is the ability to make financial planning, build and maintain wealth,

make informed decisions on debt and retirement and use economic knowledge. Many studies

have been conducted to determine financial literacy level of people. Australian ANZ Bank

showed that some consumers were lacking in basic financial skills and understanding of

specific financial products and services. This survey indicated that individuals between 18‐

and 24‐year old had the lowest financial literacy level among the consumer groups. On the

other hand, ANZ Bank (2015) conducted another research on adult financial literacy, and

found that 55% of the participants did not use newspapers, books, finance sites or

government publications to reach financial information.

They concluded that those with sufficient financial knowledge were willing to saving

and investing. Beckmann (2013) found that people who have high financial literacy level

tend to use more saving instruments, and invest more for retirement in Romania
Liceo de Cagayan University Senior High School Page
9
The Organization for Economic Co‐operation and Development/International Network on

Financial Education conducted a study across 14 countries on financial knowledge, and

found that low income level and low educational level were directly related to low financial

literacy In another study conducted in Hungary, it was found that 70% of the respondents did

not know the main financial concepts and meaning of inflation Lusardi, Mıtchell and Curto

(2010) surveyed 7,138 young adults and found that only 27% of participants were

knowledgeable about inflation, risk diversification and simple interest calculations.Students’

understanding of financial concepts and their level of financial literacy is an important factor

in determining how they overcome financial problems and manage money surveyed 924

college students in 14 American universities and found that students in business and

economics departments had high level of financial literacy. Jumpstart Coalition showed that

financial literacy level of university students had increased over the years. It was also found

that students in the field of social sciences, science, engineering, business and economics had

high level of financial literacy surveyed 781 students in the University of Arizona and found

that students who were in the field of nonbusiness studies, those who were living on campus

dormitory, and those who received financial support had low level of saving behaviours. A

study conducted by showed that students in financial risk situations were more likely to

exceed the credit card limit than others who were not in that kind of risk.

The survey of 789 students in the University of Southern Queensland showed that

students who had working experiences, and those who had high personal income had high

level of financial literacy conducted a study on undergraduate and graduate college students,

and found that financial knowledge increases gradually from first year freshmen to master's
 10
Liceo de Cagayan University Senior High School Page

students. He also found that students who were financially affected by their parents had

higher scores on financial knowledge, attitude and behaviour. Danes and Hira (1987)

surveyed 323 college students from Iowa State University, and indicated that college students

who were in upper class were more financially literate than those who were in lower class. A

survey of 2,382 students from Louisiana University and the University of Georgia showed

that families had the highest effect on students’ financial behaviour on money management

carried out a study to examine the adult financial role to children and adolescents, and they

concluded that parental involvement was essential component to enhancing financial literacy.

Examined the financial information sources, financial knowledge and financial practices of

young adults in Southern California, and they indicated that personal financial information

obtained from parents was positively associated with levels of financial knowledge and

financial practices. They also found that information obtained from other family members

and college courses was positively associated with better financial practices. On the other

hand, they showed that the more information received from friends related to inferior

performance on the financial knowledge measure .Building financial education from early

ages allows children to have skills to develop responsible financial behaviour throughout

each stage of their education (OECD/INFE, 2012). In a study conducted in the region of

Madrid to assess intervention of financial education programme using data on 22 schools, it

was found that the program increased treated students’ financial literacy performance

between one fourth and one third of a standard deviation (Hospido, Villanueva, & Zamarro,

2015). Luhrmann, Serra‐Garcia, and Winter (2014) examined the impact of a financial

education intervention on intertemporal choices in adolescence and found that the financial
Liceo de Cagayan University Senior High School Page

education intervention led to a significant increase in time consistency which could lead to

better management of financial plans, less under‐saving and over‐borrowing. Unfortunately,

with teenagers' low levels of financial literacy come irresponsible financial behaviors.

A budget is a quantitative expression of a plan for a defined period of time. It may

include planned sales volumes and revenues, resource quantities, costs and expenses, assets, 11

liabilities and cash flows. Budgeting practices are heavily influenced by the organizations

management style and can vary considerably, but the theory is common to all. Given the

relationship between budgets and planning, readers might also like to refer to the planning

and forecasting topic gateway. Budgeting is the process of expressing the predicted costs and

resources for a planned course of action over a specified time period. Budgets can be drawn

up for business units, departments, products, teams or the entire organization. Another term

for a budget is a financial plan, but budgets can refer to cash resources, such as staff or time.

Budgeting helps all types of organization to plan and control their operations, and to support

their managerial strategies.

Local Literature and Studies

Filipinos are often confident with how they manage their money. There is also a sense

of entitlement that pushes us to buy things. In truth, misinformation or, wrong lifestyles and

attitudes reveal that most of us are prone to ‘blind spending’ and have poor financial literacy.

Because of wrong choices, most of us are grossly unprepared to meet financial problems in

the future. The Bangko Sentral ng Pilipinas said in a 2013 study only one out of four

households has savings. Families who have savings also save around 20% of their monthly

salary. This may debunk the myth that money for Filipinos flows like water from our hands.
Liceo de Cagayan University Senior High School Page

But then again, comparing this figure to regional countries, we can see that we are still way

below average.

In spite of all the efforts by the government to inculcate financial literacy among the

citizens, the financial literacy week is centered on the general public rather than on senior
12
high school students. Inculcating financial literacy among senior high school students is very

eminent as they tend to develop their habit during that stage and thus enable them to develop

good money management behavior as working adults (Dahlia et al, 2009).Our neighbors in

Asia are setting aside around 30% of their income. According to financial consultant Randell

Tiongson, saving 30% of our income will bring us financial stability and even make us rich.

Financial literacy has become one of the most concerned issues in the developed

countries in recent years especially after the economic crisis of 2008 since the effects of

personal finance are significant to societies. Prior to the economic crisis of 2008, studies on

financial literacy were scarce in academic journals, but governments of many developed

countries however gave the needed attention to the issue of financial literacy after the crisis.

For instance, there was an advisory committee on personal finance which was put in place to

encourage financial literacy awareness among Filipinos after the economic crisis. The idea of

personal finance has been described in the literature as the awareness and use of financial

knowledge in our day to day economic activities. It is therefore the application of financial

knowledge and terminologies by individuals in order to make a rational decision. Many

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

“the ability to make informed and efficient judgment regarding the use and management of

money (Allen, 2006). The need for financial literacy becomes inevitable since today’s world
Liceo de Cagayan University Senior High School Page 14
13

markets are full of complicated products. Considering the spending habit of people and the

desire to have every material thing, it is therefore imperative to inculcate financial literacy

among people. Senior high school and college students in recent times tend to have easy

access to funds, but on the contrary have proven to have inadequate financial literacy and as

a result have become impulsive buyers (Danes, Huddleston and Boyce, 1999). The

inadequate personal finance among Senior High School students then has undesirable effects

on students‟ decision making. The issue of personal finance therefore must be given the

needed attention as students would be facing the realities of economic hardships after school.

This implies that there is the need for senior high students to be equipped with financial

literacy in order to achieve some degree of financial autonomy. Garman (2000) defined

financial literacy as significant information and terminology required in managing

individuals‟ personal finances successfully. Thus, the basic information that citizens need so

as to live in modern society (Kim, 2001). Financial education then provides knowledge,

information and data which equip individuals to make sound choices which improve their

economic wellbeing. Financial education is consistently becoming an essential issue being

encountered by most economies due to the dynamic and complexity nature of the financial

market (Arnone, 2002). financial behavior is defined as the process of how individuals

understand and act on financial knowledge so as to make sound investment decisions. It then

explains how human beings are able to apply financial ideas, concepts and knowledge in

their actions or inactions. Financial behavior therefore is the effects of financial literacy on

the behavior of consumers or people. Financial well-being is defined as the situation of

individuals‟ financial status. Thus, how financially sound or happy ones‟ financial situation
Liceo de Cagayan University Senior High School Page

is (Joo and Grable 2003). Porter (1990) defined financial well-being as apparent conditions

of one‟s financial situation. The concept is measured on the basis of one‟s total satisfaction

of his or her financial situation. Financial wellness on the other hand is defined as the actual

situation of individuals‟ financial standing. This is often indicated by a person‟ low level of
14
debt, active savings level and a sound spending plan.

Money management is a concept that explains how financial assets are managed.

Money management encompasses critical areas in finance like investment, budgeting,

banking and taxes. It is therefore a strategy used to ensure that investment assets yield the

highest interest value. Several academic works indicate that money management skills play

an essential role as it influences the spending habits of students on campus. Students enter

colleges without the basic knowledge of money management which arises from inadequate

financial knowledge (Ibrahim et al., 2009) According to Joe (2009), saving is defined as the

variation between net worth at the end of the period and the net worth at the beginning of the

period which should equal the excess of income over consumption expenditure in the same

period. Savings is therefore explained as money or physical assets allocated for future use. It

is a very essential factor responsible for meeting any unforeseen events ensued by

individuals, households or firms. Saving is then meant for meeting unexpected contingencies

and could also serve as a form of investment. Literature suggests the need to instill the

“culture of saving” in children at the early age.

Financial literacy equips people with requisite information and ideals needed to make

sound decisions with accuracy to manage financial resources and to improve financial

capability to call for better financial services (Ali, 2013). The concept then enables people to
Liceo de Cagayan University Senior High School Page

be prudent in all financial engagements. A persons’ level of education does not necessarily

correspond with how individuals understand and apply the concept in their human endeavors.

It is therefore prudent for all and sundry to pay attention to personal finance literacy since an

in-depth knowledge in financial literacy tends to have a direct impact on the management of

the economy (BSP, 2009). Financial education is one of the most concerned issues 15

confronted by many economies since financial decisions have become very difficult to make

or challenging. The proliferation of financial products available on the market then urges

consumers to make informed choices in order to achieve a maximum satisfaction. This calls

for consumers to be more financially literate in order to improve decision making. Financial

literacy and its education then become imperative since consumers are faced with intriguing

financial decisions or complicated products. In general, learning financial literacy earlier in

life could lead to essential benefits in the long run as it enables individuals to withstand any

financial distress that would be encountered.

An in-depth knowledge in personal finance helps individuals as well as the

communities to improve their decision-making capacity. According to Bruine de bruin et al.

(2010), people who are not inclined in financial literacy tend to have higher anticipation for

inflation which consequently affects their whole being since inadequate personal finance

knowledge will limit a person’s ability to make well versed financial decisions and

eventually engaged in impulse buying. According to Palmer et al. (2001), parents are able to

pass their choice for goods and services to their kids as they learn the consumption pattern of

their parents through socialization. Children become consumers of specific products as they
Liceo de Cagayan University Senior High School Page

grow older and thus reiterates the fact that parents are the principal source of learning since

they are the first point of learning for children.

16

Chapter 3

METHODS

This chapter presents the methodology of the study. It discusses about the research

method, the respondents of the study, the research instrument, data gathering procedures, and

the statistical treatment used in the study period.

Research Setting

This study will be conducted in Liceo de Cagayan University- Main Campus. Liceo

de Cagayan University is a private school located in Rodolfo N. Pelaez Blvd., Kauswagan,

Cagayan de Oro City.

Research Design

This study will make use of the descriptive method, as the researchers’ goal is to

identify the relation between the level of financial literacy and the budgeting skills of the

respondents.

Respondents and Sampling Procedure

Liceo de Cagayan University Senior High School Page

The respondents of this study will be 30 randomly selected Senior High School

students in Liceo de Cagayan University. This study will utilize questionnaire from a reliable

source in order to consolidate the students’ answers. These questionnaires will be provided to

the given respondents.

The Research Instrument 17

The instruments to be used in the gathering of the data are the questionnaires adapted

from VU ThuyDung, number of items that indicate the personal confidence of the

participants regarding of the students’ level of financial literacy and its relation to their

budgeting skills.

Researchers will conduct surveys through a questionnaire to the chosen respondents.

Survey questionnaires will be given to gather data by answering the research questions.

Research Protocol

The researchers will write a letter to the principal seeking permission and

recommendation to conduct the study to be signed by the research teacher. The respondents

will be protected by hiding their identities. The researchers will also approach the

respondents personally to give reliable information.

Reliability and Validity of Instrument

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The researcher-made instrument was tried out to the 30 randomly selected students of

Liceo de Cagayan University of financial literate students who were not respondents of the

study from Grade-12 of the Senior High School. The try-out was done to find out if changes

in the questionnaire were necessary. The results then were analyzed and determined if there

would be a need for any revision of certain items. The reliability coefficient was determined

to find out whether the questionnaire was highly consistent and reliable.

Eventually, after the results of the try-out had been found and were analyzed, the

researcher had seen the alpha coefficient for the items is 0.867, suggesting that the items had

relatively high internal consistency and were considered acceptable.

Data Gathering Procedure

Firstly, the respondents will ask permission from the Liceo de Cagayan University-

Senior High School Principal to ask them to conduct the said study and float the

questionnaire to the respondents.

Secondly, the researchers will disseminate the questionnaires to the 20 randomly

select respondents and on that same day collects the papers for consolidation of information.

Finally, the researchers will ask the aid of a statistician for the statistical treatment of in
gathering data.
Apparently, when the data will be statistically interpreted, the researchers will answer
each of the problems stated and to unveil if the hypothesis is null or positive.

Statistical Treatment
Liceo de Cagayan University Senior High School Page 18

To interpret the data effectively, the researcher will employ the following statistical

treatment.

For sub-problem 1, and sub-problem 2, the weighted mean and standard deviation

were used to determine the level of financial literacy and its relation with the budgeting skills

of senior high school students.

For sub-problem 3, the Pearson Product-Moment Correlation was used to determine

the significant relationship between the significant relation of the respondents’ level of

Financial literacy and Budgeting skills.

19

Scoring Procedure

In the analysis and interpretation of data, the following scoring procedure was used:

Scale Range Qualitative Description Qualifying Statement

5 4.21-5.00 Very Frequent Always Practiced

4 3.41-4.20 Frequently Often Practiced

3 2.61-3.40 Occasionally Sometimes Practiced

2 1.81-2.60 Rarely Rarely Practiced

1 1.00-1.80 Never Not Practiced at all

**https://www.academia.edu/24592420/Factors_Influencing_Students_Choice
Liceo de Cagayan University Senior High School Page

20

Chapter 4

PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

In this chapter, the information and data gathered after floating questionnaires are

presented, analysed, and interpreted. The results and the data gathered from the chosen

respondents of the study as well as their brief background findings of the study are all

presented in a tabular form. The aim and purpose of this chapter are (1) present data gathered

from the chosen respondents of the study as well as their brief background (2) tabulate the

data collected cohesively and divisibly.

Problem 1: What is the level of Financial Literacy

Table 1.Financial Literacy

Indicators Mean Std. Devation Qualitative

Description
I have better understanding of how to invest. 3.87 0.90 F

I have better understanding of how to manage 3.50 0.82 F

my credit use.
I have the ability to maintain financial records 3.50 0.68 F
for my allowance.
I have little or no difficulty in managing my 3.43 0.73 F
Liceo de Cagayan University Senior High School Page

money.
I have the ability to prepare my own weekly 3.73 0.74 F
(monthly) budgets.

I always discuss about money management 3.53 0.78 F

(saving) with my friends.
I always talk about money management with 3.53 0.86 F
my family.
21
Note: n=30
Legend: 32

Scale Mean Range Qualitative Description Qualitative Statement

5 4.21 – 5.00 Very Frequently (VF) Always Practiced

4 3.41 – 4.20 Frequently (F) Often Practiced
3 2.61 – 3.40 Occasionally (O) Sometimes Practiced
2 1.81 – 2.60 Rarely (R) Rarely Practiced
1 1.00 – 1.80 Never (N) Not practiced at all

Table 1. reveals the level of financial literacy of senior high school students wherein

the 1st statement which says, I have better understanding of how to invest got the highest

mean of 3.87 with a standard deviation of 0.90 with Frequently (F) as its qualifying

statement while the 4th statement which says, I have little or no difficulty in managing my

money got the lowest mean of 3.43 with a standard deviation of 0.73 with Frequently (F) as

its qualifying statement

The above-shown results have the implication of the students’ level of financial

literacy frequently. Furthermore, when they have understanding of investing money, they

know how to manage their credit use, and also they don’t have difficulties in managing their

money.
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This result was connected with the statement of Investopedia. “The level of financial

literacy varies according to education and income level; since most of the students are

dependent to their parents they don’t have any source of income. But evidence shows that

highly educated consumers with high incomes can be just as ignorant about financial issues

as less-educated, lower-income consumers though in general, the later do tend to be less

financially literate.”

22

Problem 2:What is the Budgeting Skills of the respondents?

Table 2. Descriptive Statistics

Indicators Mean Std. Devation Qualitative

Description
I save money aside on a regular basis for 3.50 0.82 F
the future.

In order to save, I often compare prices 3.77 0.90 F

before I make a purchase.

In order to save, I often consider whether 3.53 0.90 F

the real necessity before I make a
purchase.
In order to save, I always follow a careful 3.60 0.89 F
monthly budget.
Liceo de Cagayan University Senior High School Page

I always have money available in the 3.33 0.76 O

event of emergency.
In order to save, I plan to reduce my 3.50 0.90 F
expenditure.
I save to achieve certain goals. 3.43 0.68 F

I save until the end of my semester. 3.17 0.91 O

Note: n=30
Legend:

Scale Mean Range Qualitative Description Qualitative Statement

5 4.21 – 5.00 Very Frequently (VF) Always Practiced

4 3.41 – 4.20 Frequently (F) Often Practiced
3 2.61 – 3.40 Occasionally (O) Sometimes Practiced
2 1.81 – 2.60 Rarely (R) Rarely Practiced
1 1.00 – 1.80 Never (N) Not practiced at all

23

Table 2 shows the budgeting skills of the senior high students’. Among the

eight indicators, they often compare the prices before they make a purchase. It had the

highest overall mean of 3.77 which is qualitatively described as Frequently (F). It is then

followed by they always follow a careful monthly budget with the overall mean of 3.60 and

is qualitatively described as Frequently (F). Lastly, they save until the end of their semester

with the overall mean of 3.17 and is qualitatively described as Frequently (F). It determines

that the budgeting skills of senior high school students’ is often practiced.
Liceo de Cagayan University Senior High School Page

Problem 3. Is there a significant relation of the respondents’ level of Financial literacy

and Budgeting skills?

r-value p-value Remarks

Significant relationship between

Financial literacy and Budgeting skills. .319 .086 Not Significant

The above data shows the relationship of sleep deprivation to the Grade -12 Senior

High School students which are not significant to their academic achievement. These

findings accept the null hypothesis, which has stated that there is no significant relationship

between the effects of sleep deprivation to the Grade-12 students’ academic achievement.

The fourth statement has revealed that students experience negative

mood/behavioural changes when they had consecutive days of insufficient sleep has the

following results: (r =.248, p value=.068) which imply that effect of sleep deprivation to

mood did not relate significantly to the academic achievement of Grade 12 students. This

means that being sleep deprived does not affect their mood which is one of the effects of

sleep deprivation to academic achievement of Grade-12 students.

It is in contrast to the study of Gordon (2013), which mentioned that after a sleepless

night, a student may be more irritable, short-tempered, and vulnerable to stress. Once a

student sleep well, their mood often returns to normal.

Similar study have shown that even partial sleep deprivation has a significant effect

on mood. University of Pennsylvania researchers found that subjects who were limited to
Liceo de Cagayan University Senior High School Page

only 4.5 hours of sleep a night for one week reported feeling more stressed, angry, sad, and

mentally exhausted. When the subjects resumed normal sleep, they reported a dramatic

improvement in mood.

The sixth statement has revealed that student’s feel asleep during classes has the

following results: (r =.197, p value=.154) which imply that effect of sleep deprivation for

being asleep during classes did not relate significantly to the academic achievement of Grade

12 students. This means that the Grade-12 students were not getting feel asleep during

classes when they are sleep deprived. Moreover, Grade-12 students only experience sleep

deprivation frequently that is why there is no such time that they feel asleep during classes.

Also, students have a lot of things to finish in accordance to their academic works that will

surely keep them alive.

Problem 1 and problem 2 states that the results were positive. Therefore, there is a significant

relation between the level financial literacy and budgeting skills of the respondents.

24
31

Chapter 5

SUMMARY, FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

This chapter presents the summary, findings, conclusions, and recommendations.

SUMMARY
Liceo de Cagayan University Senior High School Page

The study entitled ‘The Level of Financial Literacy and its Relation to the Budgeting

Skills of Senior High School Students” was conducted at the main campus of Liceo De

Cagayan University, Rodolfo N. Pelaez Blvd., Kauswagan, Cagayan De Oro City. This study

utilized the survey qualitative design. The design will help to identify the relation between

the level of Financial literacy and budgeting skills of Senior High School students. In the data

gathering, a questionnaire adapted from the study of VU ThuyDung and the Likert scale was

used. The questionnaire was divided into 2 parts. Part 1 is about the Financial Literacy of the

respondents and part 2 is about the Budgeting skills of the respondents.

This study applied the simple random sampling technique. In treating the data

gathered, Pearson Product-Moment Correlation was used to determine the significant

relationship between the respondents’ level of Financial literacy and Budgeting skills.

This study aimed to determine the level of Financial Literacy and its Relation to the

Budgeting Skills of Senior High School Students. Specifically, it was pursued by the

following statement of the problem: 1) What is the level of Financial literacy of the

respondents? 2) What is the Budgeting skills of the respondents? 3) Is there a significant

relation of the respondents’ level of Financial literacy and Budgeting skills? 25

Interpreting the data gathered, the study found that the level of financial literacy of

senior high school students of Liceo de Cagayan University are high as well as their

budgeting skills. It showed that in their financial literacy they have the ability to prepare their

own weekly (monthly) budgets, they have better understanding of how to invest, they have

the ability to maintain financial records for their allowance, and they have better

understanding of how to manage their credit use. In their budgeting skills, in order to save,
Liceo de Cagayan University Senior High School Page

they often compare prices before they make a purchase, they set money aside on a regular

basis for the future, in order to save, they often consider whether the real necessity before

they make a purchase, they always follow a careful monthly budget, they save to achieve

certain goals until the end of their semester.

The study revealed the following findings:

Firstly, it was found out that the implication of the students’ level of financial

literacy is sometimes practiced. Furthermore, when they have understanding of investing

money, they know how to manage their credit use, and also they don’t have difficulties in

managing their money.

Secondly, the budgeting skills of the senior high students among the eight indicators,

they often compare the prices before they make a purchase. It determines that the budgeting

skills of senior high school students’ is also often practiced and is frequently as its qualitative

description.

Fourthly, it also revealed that level of financial literacy was not significantly related

to the budgeting skills of Grade-12 Senior High School students. These findings reject the

null hypothesis which has stated that there is a significant relationship between the level of

financial literacy with the budgeting skills among Grade-12 students. This means that
Liceo de Cagayan University Senior High School Page

It shows that their level of financial literacy has a qualitative statement of Frequently

and sometimes practiced for the qualifying statement, followed by their budgeting skills with

a qualitative description of frequency and has a qualifying statement of sometimes practiced.

Lastly, it shows that there is a relation between the level of financial literacy and the

budgeting skills of the senior high school students of Liceo de Cagayan University.

CONCLUSIONS

From the findings of the study, it may be concluded that there is a relation between

the level of financial literacy and the budgeting skills of the senior high school students of

Liceo de Cagayan University. After conducting the study, the researchers learned that

students’ has high level of financial literacy and good budgeting skills. Therefore, the

respondents’ level of Financial Literacy affects to their Budgeting Skills.

26

RECOMMENDATIONS

On the basis of the findings and conclusions, the following are recommended:

1. For the next researchers, they may look into studying the external influences

that contributes to the level of financial literacy among senior high school

students as this was not tackled and can be a potent discussion that will

extend this study.

Liceo de Cagayan University Senior High School Page

2. Students, especially the Senior High Students must be financially literate in terms

of their money especially on budgeting.

27

References

Education-Intervention-Financial Management
https:/onlinelibrary.wiley.com/doi/full/10.1111/ijcs.12408

Financial Management
http://organization.for.Eco/OECD.8730/HSGYDnsgbm/uu97/management//0874
http;//ir.knust.edu.gh/bitstream/123456789

http://researchhub.uitm.edu.my/pdf/Hisyam.pdf
The system of Management
http://www.researchgate.net/publication/284101216_Students’_Saving_
Attitude_Does_Parents’_BackgroundMatter
https://www.scrbd.com/doc/85158411/A-DESCRIPTIVE-REASEARCH-ONLINE-
Liceo de Cagayan University Senior High School Page

ALLOWANCE-AND-BUDGET-OF-SECOND-YEAR-STUDENTS-OF-UNIVERSITY-
OF-SANTO-TOMAS-COLLEGE-OF-FINE-ARTS

Research Methods 1 Handouts, Graham Hole,COGS - version 1.0, September 2000:

Business Students, African Journal of Business Management, 5 (22),pp. 8933-

8940. Available at: http://www.academicjournals.org/AJBM

Alhabeeb, M. J. (1999). Allowances and the Economic Socialization of Children”,

Association for FinancialCounselling and Planning Education, 10 (2), 1-9.

Ali, S. (2013). Financial literacy in Malaysia: Issues and status update.

Allen, M. W., Edwards, R., Hayhoe, C. R. and Leach, L. (2007), Imagined
interaction, attitudes towards money and credit, and family coalitions, Journal
of Family and Economic Issues, 28, 3-22.

Ansong, A. (2011). Level of Knowledge in Personal Finance by University Freshmen

Beal, D. andDelpachtra, S. (2003). „Financial literacy university
students‟,Economic Papers, vol. 22, pp 65-78.
Arnone, W. J. (1999). Selling the value of employee financial education to
management. Paper presented at the Personal Finance Employee Education
Conference, Roanoke, VA.
Avard, S., Manton, E., English, D., and Walker, J. (2005). The financial knowledge
of
college freshmen. College Student Journal, 39, 321-339.
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Bernheim, B. D., Garrett, D. M., and Maki, D. M. (2001).Education and saving 28
.
Chen, H. and Volpe, R. P. (1998).An analysis of personal financial literacy among

college students. Financial Services Review, 7(2), 107–128.

doi:10.1016/S1057-0810(99)80006-7

Chen, H. and Volpe, R. P. (2002).Gender differences in personal financial literacy

i:10.1016/S1057-0810(99)800067
Chowa, G. and Ansong, D. (2010).Youth and Savings in Assets Africa. Children and

Youth Services Review, 32 (11), pp. 1591 -1596.

Comeau.T, M., and Rhine, S. L. W. (2000).Delivery of financial literacy

Liceo de Cagayan University Senior High School Page

programs.Consumer and Community Affairs Division, 7, 12. Retrieved from

http://www.fluetschfinancialservices.com/Chicago%20Federal%20Reserve.pdf
Comptroller of the Currency (2011).Financial Literacy Fact Sheet. Retrieved March3,

Appendices

A. Appendix I

B. Appendix II

C. Appendix III

29

APPENDIX 1
LICEO DE CAGAYAN UNIVERSITY
Accounting and Business Management
Senior High School
Grade 11 ABM 8
_________________
_________________
_________________
Dear_____________
Good Morning!
Liceo de Cagayan University Senior High School Page

We are current student of Liceo de Cagayan University, taking up Accountancy,

Business and Management (ABM). At present we are conducting on the “Liceo de Cagayan
University Grade 11 Senior High School Students’ Awareness on Financial Management in
Relation to their Attitude Towards Saving” which is our requirement of our course. The aim
of this study is to help students in managing their limited financial sources and convey to
them the importance of financial literacy awareness among students.
In view hereof, we would like to ask permission from your office that we will be
allowed to gather data from the selected students mentioned on the first page. Rest assured
that the data will be treated with strict confidentiality and will be used solely for the purpose
of the study.
Thank you very much and anticipating a favorable response regarding this request.

Respectfully yours,
___________________ __________________

___________________ __________________

___________________ __________________

Endorsed by:
MR. FLOYD C. ALOZO MS. AGA EMM D. MAHINAY
30
Research Teacher Research Adviser

APPENDIX II
LICEO DE CAGAYAN UNIVERSITY

Dear Respondent:
Good Morning/ Afternoon!
We are Grade 12 ABM students of Liceo de Cagayan University who are currently
conducting a research about “Liceo de Cagayan University Grade 11 Senior High School
Liceo de Cagayan University Senior High School Page

Students’ Awareness on Financial Management in Relation to their Attitude Towards

Saving” with permission from the principal.
In view hereof as one of the few who were randomly picked in this study, we would
like to ask an ample of your time to answer the given survey questionnaire.

Respectfully yours,
___________________ __________________

___________________ __________________

_______________________ ______________________

Endorsed by:
MR. FLOYD C. ALOZO MS. AGA EMM D. MAHINAY
Research Teacher Research Adviser

31

APPENDIX III
Questionnaire

Grade and Section:

Instructions: Please indicate your answer by circulating each statement by using 5 Likert scale:
1= Strongly Disagree
2=Disagree
3=Neutral
4=Agree
5=Strongly Agree
Liceo de Cagayan University Senior High School Page

Financial Literacy
No. Questions Strongly Disagree Neutral Agree Strongly
Disagree Agree

1 I have better understanding of how

to invest.

2 I have better understanding of how

to manage my credit use.

3 I have the ability to maintain

financial records for my allowance.

4 I have little or no difficulty in

managing my money.

5 I have the ability to prepare my

own weekly (monthly) budgets.

6 I always discuss about money

management (saving) with my
friends.

7 I always talk about money

management with my family.
32

Budgeting Skills
No. Questions Strongly Disagree Neutral Agree Strongly
Disagree Agree

8 I money aside on a regular basis

for the future.

9 In order to save, I often compare

prices before I make a purchase.

10 In order to save, I often consider

whether the real necessity before I
Liceo de Cagayan University Senior High School Page

make a purchase.

11 In order to save, I always follow a

careful monthly budget.

12 I always have money available in

the event of emergency.

13 In order to save, I plan to reduce

my expenditure.

14 I save to achieve certain goals.

15 I save until the end of my

semester.