Financial Literacy: Its Effect on

Far Eastern University Manila

Financial Management Students
Personal Spending
ABSTRACT
 ABSTRACT

This is an exploratory study that determines the

effects of financial literacy which is embodied or
directly related to the subjects under the Financial
Management curriculum on the personal spending of
the 3rd year Financial Management students of Far
Eastern University Manila.
 ABSTRACT

The main objective of this study is to exhibit the

relationship between three important variables of this
study which are the financial literacy gained through the
Financial Management subjects, the students and their
personal spending. The relationship between financial
literacy and the students involves the subjects being the
channel that paves the way for financial literacy to be
transmitted to the students.
 ABSTRACT

On the other hand, the relationship between the students

and their personal spending involves the application of
the knowledge gained by the students to their day-to-day
management of their personal finances. It could also
involve influences such as on what extent it influences
their decision and on their financial attitude as a whole.
 ABSTRACT

The researchers were able to gather results

through the use of a survey of a sample
population of 75 3rd year Financial Management
students. Prior to this, having been able to
analyze these results, the students agreed to most
of the questions that leads of the affirmation of
the hypotheses set by the researchers.
 ABSTRACT

Financial literacy is a detrimental part of making

sound financial decisions particularly to college
students under the different circumstances
brought about by their daily activities, thus the
researchers believe that financial literacy that
these students gain in their subjects is a vital
advantage.
Statement of the
Problem
 STATEMENT OF THE PROBLEM
1. What are the demographic data of the respondents as to:
2. What courses (subjects) offered in Third Year Financial
Management students by the University most improve the students
financial literacy?
3. Is there a significant difference between having finance
subject(s) and not as to Financial Management students?
 STATEMENT OF THE PROBLEM

4. What is the extent of their knowledge about money

management/appropriation of personal finance?
5. What kind of effects does being financially literate have on the
students personal financial management?
Summary of
Findings
 Demographic profile of the Respondents
a. On age, seventy-two percent (72%) of the respondents are 19-21 years of age; twenty
four percent (24%) are 16-18 and only four percent (4%) came from age 21 and above.
b. On gender, the respondents were predominantly comprised of females with a total of
sixty-three percent (63%). The remaining thirty-seven percent (37%) were males.
Improvement in the students financial literacy as a result of taking finance subjects

a. Eighty-one percent (81%) of the respondents predominantly agrees that they have
knowledge about financial literacy and the remaining nineteen percent (19%) disagree
on having financial literacy.
 Improvement in the students financial literacy as a result of taking finance subjects

b. Sixty-three percent (63%) of the respondents answered that they learned managing money
from their family, twenty-three percent (23%) from classes in school, eight percent (8%) from
talking with friends and seven percent (7%) from magazines, TV ads and social media.
Improvement in the students financial literacy as a result of taking finance subjects

c. Eighty-eight percent (88%) of the respondents agrees that the knowledge they are continually
acquiring from their subjects influence the way they handle money the remaining twelve percent
(12%) disagrees.

d. The entire respondent agree that investment and saving is important.

Significant difference between having and not having finance subjects as to the
students

a. Eighty percent (80%) agrees that they would take personal course as
an elective if offered and the remaining twenty percent (20%)
disagree.
The extent of the students knowledge about money management

a. Fifty-three percent (53%) of the respondents is interested in increasing their financial literacy to a great
extent, thirty-six percent (36%) is somewhat interested and eleven percent (11%) is not interested.
The extent of the students knowledge about money management

b. Forty percent (40%) of the respondents would dare in using credit card and the remaining sixty percent (60%) wouldnt
dare to use credit card.

c. Forty-nine percent (49%) agrees that credit card is a good idea while the remaining fifty-one percent (51%) disagree.
The extent of the students knowledge about money management

d. Twenty percent (28%) agrees that credit cards are safe and risk free while the remaining seventy-two percent (72%) disagree.

e. Seventy-eight percent (78%) of the respondents agrees that using credit card is costly while the remaining twenty-two percent
(22%) disagree.
Effects of being financially literate on the students personal financial management

a. Sixty-eight percent (68%) of the respondents agreed that they

enjoy reading money management articles and thirty-two (32%) of
the population disagreed.

b. Ninety-two percent (92%) of the students get their financial

asset from their savings while four percent (4%) from stocks and
another four (4%) from bonds.
Effects of being financially literate on the students personal financial management

c. Sixty-eight percent (68%) of the population has less than 6,000Php monthly allowance,
fifteen percent (15%) of them is in the range of 8001-1000Php, thirteen percent (13%) has
6,001-8,000Php, while four percent (4%) of the population has more than 1,000Php.
Effects of being financially literate on the students personal financial management

d. Sixty-nine percent (69%) of the population has an average

spending of 101-300Php, fifteen percent (15%) has 301-
500Php and less than 100, and one percent (1%) has more
than 500Php.

e. Sixty-nine percent (69%) of the population prepares their

monthly/weekly budget while thirty-one percent (31%) of
them doesnt prepare it.
Effects of being financially literate on the students personal financial management

f. Fifty-three percent (53%) of the population keeps no financial records while

forty percent (40%) keeps minimal degree of financial records and lastly the
remaining seven percent (7%) keeps highly detailed financial records
Effects of being financially literate on the students personal financial management

g. Fifty-nine percent (59%) of the population is fine with borrowing money from others while forty-one percent
(41%) doesnt agree.

h. Eighty-five percent (85%) of the population disagreed that they are comfortable in not paying their debt while
the remaining fifteen percent (15%) agreed.
Effects of being financially literate on the students personal financial management

i. Fifty-seven (57%) of the population agreed that it is fine to pay just the minimum
amount in a credit card while the remaining forty-three (43%) disagreed.
Conclusion
 Conclusion

Based from the analysis on the gathered data, the researchers

found that education plays an important role in the financial
literacy that are gained through financial management subjects of
the third year students.
Conclusion

In the analysis, the

researchers observed that the
3rd year Financial Management
students were predominantly
knowledgeable about financial
literacy.
 Conclusion

The researchers conclude that

most of the students would
take chance to grab personal
course about financial literacy
to a great extent.
 Conclusion

The study found out that the most students prepare a monthly
budget but keeps no financial records with an average monthly
allowance of P6000 and an average daily spending of P300.
Also, the students get their financial resources from their
savings because they dont consider borrowing from others.
 Conclusion

To sum it up, the researchers conclude that the

financial literacy gained through financial
management subjects is effective on money
management of the students.
Recommendations
 Recommendations
For the University:

The university should expose students in all programs/courses to

basic economics and financial management subjects. This will
heighten the students financial vocabulary as well as proficiency.
Also, according to Atlantic Council, schools should make financial
literacy relevant, real and practical through field trips, internship
programs, job shadowing, and classroom simulations for the
students to gain an appreciation of the real world applicability of
personal finance.
 Recommendations
For the students:

The students very high evaluation indicates that they are aware on the level of
their financial literacy.
The students should learn financial matters at a young age. They should know
about investing, estate planning, social security, credit cards, credit scores,
saving for the future, social security, real estate, insurance, retirement, and
taxes, among others. The researchers also recommend students to read the
financial section of local/regional newspapers, utilize online sources and take
elective finance class if offered.
 Recommendations
For the future researchers

For the reason that this particular study circumvents on the idea of
proving the relationships of the said variables which are the
financial literacy, the students and their personal spending, the
researches recommend to look into the subjects on a detailed
manner. Looking at the subject in a specific view can lead to the
possibility of prioritizing subjects that has a more detrimental
influence on the financial attitude of the students towards their
spending.
Aborje,Mia Rose R.
Bermejo, Maria Rose
Gatuz, Ajane
Guevarra, Patricia Allaine
Molina, Merry Vic
Narzolis, Dharyl
Yabon, Cynthia