42 M. A. Jabar& M. L. C.

Delayco
DLSU Business & Economics Review 31(1) 2021, p. 42–54

RESEARCH ARTICLE

Impulse Buying and Financial Literacy Among Public

Elementary and High School Teachers
in the Philippines

Melvin A. Jabar
De La Salle University, Manila, Philippines
melvin.jabar@dlsu.edu.ph

Ma. Luisa C. Delayco

Asian Institute of Management, Makati City, Philippines

This paper primarily interrogates the assumption that financial literacy essentially decreases impulse buying. However,
this may not necessarily be the case, given that individuals navigate in different social contexts. Teachers in the Philippines
are stereotypically perceived as heavy financial borrowers due to their limited income. Given their quick access to private
financial loan companies, it is worthy to investigate if teachers also engage in impulse buying.
The first goal of this paper is to describe the financial literacy of public-school teachers. Second, it examines the relationship
between financial literacy and impulse buying. In this paper, financial literacy is operationalized in terms of two variables,
namely, ownership of financial instruments and use of financial records and record keeping. This paper is based on a survey
conducted among 310 public elementary and high school teachers in Metro Manila, Philippines.
Results of the study show that savings accounts and debit cards are the more popular financial instruments that many of
the teachers possess. Generally, the teachers also manifest a certain level of use of financial records and of record keeping.
The results likewise exhibit a negative but weak correlation between impulse buying and financial literacy in terms of use
of financial records and record keeping. This means that impulse buying will likely decline if use of financial records and
record keeping are constantly practiced or observed. Results of the multiple regression analysis reveal that use of financial
records and record keeping predicted impulse buying. These results necessitate that financial literacy education needs to
underscore the importance of the use of financial records and of keeping such records as they can influence individuals to
be critical in making decisions concerning purchases.

Keywords: impulse buying, financial literacy, Filipino teachers, financial records, record keeping

JEL Classification:

Copyright © 2021 by De La Salle University

Impulse Buying and Financial Literacy Among Public Elementary and High School Teachers 43

This paper aims to examine impulse buying among Impulse buying can be attributed to a number
Filipino public elementary teachers. It also investigates of predisposing internal and external factors. At the
their level of financial literacy measured in terms individual level, this behavior can be facilitated by
of use of financial records and record keeping and personality traits (see the study of Sofi and Nikka,
ownership of various financial instruments. In addition, 2017), individual motives, and personal financial
it examines the impact of financial literacy on impulse resources. Externally, individuals may be enticed to
buying. The paper is based on a private-financial- engage in impulse buying as a result of appealing
institution-commissioned research that aimed to look market stimuli (Iyer et al., 2020). Most studies looking
at financial literacy among teachers. into impulse buying are heavily focused on individual
The said research had twofold goals. The first psychological related factors and financial assets
was to understand what individual, familial, and including ownership of credit cards. However, impulse
social factors predispose public-school teachers to buying is also related to financial literacy. The study
resort to loans. The second was to conduct a needs of Anisa et al. (2017), participated in by 733 student
assessment to better understand what financial- respondents, reveals that there is a negative relationship
literacy-related interventions can be given to them between financial literacy and impulse buying. This
to improve their financial decision-making. The means that financial literacy can reduce the likelihood
private financial institution’s CSR (corporate social of impulse buying.
responsibility) wanted to conduct financial literacy Given this backdrop, this paper aims to add to the
sessions with teachers, as they have been disturbed by body of knowledge concerning the nexus between
the stereotypical notion that teachers are heavy debtors. financial literacy and impulse buying, albeit in the
An online news reported that Filipino public- context of public-school teachers. It tests whether
school teachers owe a total of PhP 319 billion in debt financial literacy lessens the likelihood of impulse
to private and public financial lending institutions buying. For our purposes, such a concept is focused
(Gulf News, 2019). According to the same report, the on the functional (practical) rather than the content
country’s Secretary of Education attributed this debt (cognitive/awareness) type of financial literacy, as
behavior among teachers to a lack of financial literacy. most studies are focused on the latter. Hence, financial
The report indicates that teacher indebtedness “is due literacy as operationalized in this paper refers to the
to a lack of discipline and sound personal financial practice of keeping personal financial records and using
management — and a habit of borrowing money from them in making financial decisions and ownership of
loan sharks.” financial instruments.
There is already a body of empirical literature
that looks into financially related behaviors among IMPULSE BUYING
public-school teachers. The study of Ferrer (2017),
for instance, examines the financial well-being of 710 Impulse buying—also referred to as impulsive
public-school teachers. The teachers in his study have buying or impulsive purchase (Efendi et al., 2019)—
had serious debt problems that resulted in low monthly is generally defined as the behavior that involves the
net income. Furthermore, the study attributes the lack purchase of items that are not precontemplated or are
of skills in managing money and financial planning unplanned (Sofi & Nika, 2017). However, several
as factors for why public-school teachers are “debt scholars see this definition as being rather “simplistic”
trapped.” (Aragoncillo & Orús, 2017). To address this limitation,
Another study by Montalbo et al. (2017) similarly scholars argue that while it is unplanned, impulse
depicts a somewhat unfavorable picture of the financial buying is an agentic decision that can be influenced
well-being of teachers. Their study, which measured by external stimuli, including market appeal. The
the basic (e.g., numeracy, compound interest, inflation) classic work of Applebaum (1951, p.176) defines this
and sophisticated financial literacy (e.g., the function as “buying which presumably was not planned by the
of the stock market, knowledge on mutual funds) of customer before entering a store, but which resulted
924 teachers, revealed a very low level of knowledge from a stimulus created by a sales promotional device
in the areas mentioned. in the store.”
44 M. A. Jabar& M. L. C. Delayco

The literature has identified different typologies Lee and Lown (2012) involving 500 Korean college
of impulsive buying (Stern, 1962). These are pure students reveals that financial education statistically
impulse buying (based on a product’s appeal), reminder predicted saving behavior, which is a functional
impulse buying (based on existing possession of an financial literacy indicator.
item or based on information derived from advertising), The article of Efendi et al. (2019) enumerates three
suggestion impulse buying (based on the appeal of overarching factors that influence impulsive buying.
a unique or unfamiliar item), and planned impulse These include product characteristics, marketing
buying (intended purchase of an unplanned item based characteristics, and consumer characteristics. At the
on promotions or special discounts). In a general sense, consumer level, certain factors could play a role in
impulse buying involves “an irrational purchase and is impulse buying. Among these are self-control (Efendi
associated with unplanned, conflicted, and emotional et al., 2019; Khoirunnisaa & Johan, 2020), economic
motivation” (Halimatussakdiyah et al., 2019, p.76). literacy (Efendi et al., 2019), peers (Efendi et al.,
In most studies, impulse buying is investigated in 2019), personality (Farid & Ali, 2018), financial
specific contexts (e.g., buying cosmetics, dining out literacy (Khoirunnisaa & Johan, 2020), and consumer’s
in restaurants, etc.). However, in this paper, the term positive emotion (Yi & Jai, 2020).
is used to refer to the behavior and decision-making of In the present paper, consumer characteristics in
individuals relating to the purchase of items or goods terms of their level of financial literacy are given focus.
in a general sense. Financial literacy provides knowledge on financial
There are different theoretical compasses planning, which would presumably turn individuals
regarding the study of impulse buying. In away from engaging in impulse buying. In other words,
psychology, impulse buying is seen as a defense financial literacy provides a frame of reference for
mechanism to address negative emotions and low individuals to carefully make good decisions, including
wise spending and financial planning. As earlier
self-esteem. It is also considered as a source of
indicated, impulse buying is a behavioral repertoire
pleasure and joy. The concept is also associated signifying lack of planning. This article, therefore,
with issues of self-control and self-regulation assumes that through financial literacy, one is able to
(Verplanken & Sato, 2011; Vijay & Kumar, do away with impulse buying.
2020). Moreover, impulse buying can be socially
influenced. The social comparison theory argues FINANCIAL LITERACY
that people’s behavior (including consumer
behavior) is affected by their significant others. Financial literacy is a skill that individuals should
In other words, relationships with other people be able to master, as it is a necessary tool for daily
provide buyers with a basis for comparison (Miller living (Philippas & Avdoulas, 2019). Studies on
et al., 2015). The study of Vijay and Kumar (2020) financial literacy among Filipino teachers are rather
elucidates that the presence of peers or friends limited. One such study done was by Montalbo et
al. (2017), and it was conducted among professional
increases the propensity for individuals to engage
teachers. They examined basic financial literacy
in impulse buying. in terms of number numeracy, compound interest,
Impulse buying, as Stern (1962) noted, basically
inflation, time value of money, and money illusion. The
signifies the absence of planning (“unplanned buying”).
authors also examined “sophisticated knowledge” of
Given the context that planning is absent in impulse
financial instruments, which included function of the
buying, it is therefore important to see how financial
stock market, knowledge of mutual funds, relationship
literacy can minimize such a behavior. Financial
between interest and bonds, safer company stock or
literacy is said to facilitate careful planning to arrive
mutual funds, riskier stocks or bonds, long period
at sound financial decision making. Most studies
returns, highest fluctuations, and risk diversifications.
agree that financial literacy (some refer to this as
Results of their study indicated that teachers have both
financial education) plays a role in sound financial
low basic and low sophisticated financial literacy. Their
behavior (e.g., saving, not engaging in impulse buying,
study, however, only examined the level of financial
avoidance of debt, etc.). For instance, the study of
literacy and not how financial literacy can impact
Impulse Buying and Financial Literacy Among Public Elementary and High School Teachers 45

teachers in terms of their financial planning, consumer funeral plans. In Australia, meanwhile, assessing
behaviors, and debt behaviors. financial literacy includes budgeting, possession of
Financial literacy (also known as financial credit cards, controlling debts, insurance, consumer
knowledge, see Huston, 2010) is broadly defined as protection, seeking advice/financial planning, savings,
the competency of an individual to manage personal investments, buying a phone, starting work, buying a
finances (Remund, 2010) (see also Coben et al., car, residential arrangements, starting a family, paying
2005; Kiviat & Morduch, 2012; Taylor et al., 2010). for education, losing a partner, losing a job, receiving
Worthington (2005, p.2), meanwhile, defines it as a windfall, and retirement.
“the ability to make informed judgements and to take In New Zealand, components of financial education
effective decisions regarding the use and management as described by Feslier (2006) include savings, debt
of money.” Making sense of the varying definitions, management, investments, accumulation of assets for
financial literacy then pertains to the use of financial retirement, understanding state provision, entering
information in making sound choices relating to the into a hire purchase, compound interest, housing and
effective use of financial assets or resources. business, income and expenditure, transparency in
The study of Xiao et al. (2010) explains that charging fees on financial products, understanding
financial knowledge comes with financial behavioral net worth, getting and paying for financial advice,
repertoires. In other words, while financial knowledge understanding financial disclosure, comparing financial
is necessary, what is essential is to translate this products, taxation effects, making a will, equity release,
knowledge into some forms of behavior or to achieve financial trusts, employer-sponsored retirement savings
behavioral modifications (e.g., Reswari et al., 2018) plans, student loans, and insurance.
geared toward effective financial management. While Studies on financial literacy have two pathways.
this is a very important asset, little attention has been One is particularly interested in looking at a specific
given to financial literacy in formal education. In the population’s differing levels of financial literacy.
words of Feslier (2006, p.1), “little formal financial The second theme concerns itself with how financial
education is provided in schools or in adult learning literacy programs can increase the level of financial
forums.” literacy (Tippet & Kluvers, 2007). There are existing
Increasing financial literacy can be achieved studies that claim that financial literacy is not simply
through financial literacy education. This informs about numeracy and financial concepts. There are other
consumers about their rights and responsibilities and factors that may influence the level of financial literacy
provides them with the information necessary to arrive that are not necessarily related to knowledge or cognitive
at informed choices regarding what products and abilities. For example, the study of Gathergood (2012)
services to use (Orton, 2007). Harnisch (2010, p.3) concludes that consumer overindebtedness happens
also notes that financial education can help to achieve not only because of low financial literacy but also
a “sustainable, vibrant lifestyle during work years because of self-control problems. He further adds
and retirement.” It is assumed that higher financial that being able to manage debts requires self-control
literacy yields sound financial planning. The study of as well as financial organization. Moreover, he notes
Tan and Siew (2011) concludes that financially literate that respondents with self-control problems have been
individuals have exhibited the ability to financially plan found to be susceptible to consistent use of credit
their personal expenses. It is against this background cards, mail order, and home credit and payday loans
that this paper examines the nexus between financial (Gathergood, 2012).
literacy and impulse buying. The National Research and Development Centre
Different countries assess financial literacy for Adult Literacy and Numeracy (in Coben et al.,
differently. For example, in the UK, financial literacy 2005) in the UK identifies several components of
assessment covers ownership of bank accounts financial literacy education that could be used as
and credit cards, possession of loans, insurance, a basis for gauging the level of financial literacy.
consumer protection, savings, investments, starting These components include different types of money
a job, pursuing residential arrangement (leaving or payments (checks and credit cards), income
home or living on your own), starting a family, generation (e.g., benefits/pensions), income disposal
buying/owning a home, mortgages, retirement, and (expenditures/taxes), gathering financial information
46 M. A. Jabar& M. L. C. Delayco

and record keeping (e.g., bank statements), financial protecting resources (insurance products or other risk
planning (saving, spending, budgeting), risks and management techniques).
return (interest rates, insurance, personal choices, and
financial complications [e.g., debt management]), CONCEPTUAL FRAMEWORK
consumer rights and responsibilities, sources of advice,
and implications of finance (regulation, financial This paper is informed by the study of Nye and
institutions). Hillyard (2013). They opined that financial behavior
Hogarth and Hilgert (2002) conducted a survey and impulsive consumption can be influenced by
on financial knowledge, experience, and learning both subjective numeracy and financial (quantitative)
preferences involving some 500 households. Their literacy. Summarily, their work underscores the
financial literacy survey included knowledge item idea that financial literacy influences both financial
questions pertaining to credit, mortgages, and general behavior and financial well-being. This means that
questions (emergency funds, issuance of checks, individuals with high financial literacy are less likely
life insurance policy). Their financial experience to engage in impulse consumption. The present
indicators include respondents’ possession of financial paper addresses a gap in literature, as most studies
instruments according to type (checking, savings, have focused on psychological and market-related
credit card, house, mutual fund, pension plan, factors that predispose individuals to engage in
certificate of deposit, public stocks, and bonds), proxies impulse buying. This paper, however, interrogates
of net worth, and other financial experiences (monthly the potential influence of financial literacy to impulse
check verification, financialfinancial
Meanwhile, record keeping
literacy issystem, buying.
operationalized in terms of the use of financial records and
possession of emergency fund, credit reports review, For our purposes, impulse buying is operationally
ownership record keeping. The
of investment scale and
accounts, covers regularnetupdating
personal of passbooks,
defined regularspending
as indiscriminate checking of bank
without taking into
worth calculation). account future needs, spending beyond one’s means,
The statements,
systematic recording
documents of review
weekly conducted
expenditures,by reviewing of credit
spending reports,
rather than keeping
saving,personal watch without
using credit
Huston (2010) reveals that there are four major themes carefully thinking about one’s ability to pay, buying
insofar asof financial
financial activities,
literacy iswriting financial
concerned. goals,
These arecalculating net worth,
items/things keeping
that receipts
are not for recording,
necessary, and purchasing
money basics (time value of money, purchasing power, items that are not urgently needed. Financial literacy,
and reading and understanding bills. Figure 1 shows the assumption of this paper, which argues
personal financial accounting concepts), borrowing in this paper, is defined as the possession of financial
(bringing future resources into the present through instruments
that individuals who possess different financial instruments, useand use ofrecords,
financial financial
andrecords and record
do record
credit cards, consumer loans, or mortgages), investing keeping. Financial instruments include possession of
(saving keeping
present are
resources
the ones for
that future
are lessuse through
likely to engage ina impulse
savings buying.
account, a checking account, a debit card, a
savings accounts, stocks, bonds, or mutual funds), and trust fund, a phone payment account, a time deposit

Figure 1.Factors influencing impulse buying

Figure 1. Factors influencing impulse buying

METHOD
Impulse Buying and Financial Literacy Among Public Elementary and High School Teachers 47

in a bank, stocks, bonds, a life insurance plan, and a they owned any of the financial instruments, namely,
nonlife insurance plan. a savings account, a checking account, a debit card,
Meanwhile, financial literacy is operationalized in a phone payment account, a trust fund, a personal
terms of the use of financial records and record keeping. pension plan, a time deposit, stocks, bonds, and a life
The scale covers regular updating of passbooks, regular and nonlife insurance plan. In the analysis, ownership
checking of bank statements, recording of weekly of a specific financial instrument was given one point.
expenditures, reviewing of credit reports, keeping The highest possible score for this component was 11
personal watch of financial activities, writing financial points. Higher scores indicated higher financial literacy
goals, calculating net worth, keeping receipts for as evidenced by ownership of a number of financial
recording, and reading and understanding bills. Figure instruments.
1 shows the assumption of this paper, which argues that The next section of the survey covered 10 items
individuals who possess different financial instruments, that asked respondents about their use of financial
use financial records, and do record keeping are the records and record keeping. The items involved
ones that are less likely to engage in impulse buying. comparing current and previous utility bills, updating
bank passbooks regularly, accessing bank statements
METHOD regularly, recording of weekly expenditures, personally
monitoring financial activities, writing down long-term
This paper is based on a survey involving 310 financial goals, calculating net worth, keeping receipts
teachers coming from six elementary and three high for recording, and reading and understanding monthly
schools in Metro Manila, Philippines. These schools bills before payment. The teachers were asked to
were purposely chosen as they were identified as partner indicate whether or not such practices were personally
schools of the CSR program of the private financial observed. The highest possible score for this item was
institution that requested the conduct of the study. The 10, which indicated high financial literacy in terms of
original intent of the survey was to cover all teachers record keeping and utilization.
of the nine schools. However, since participation in The last section of the survey consisted of the
the survey was voluntary, some teachers declined from impulse buying scale, which contained six items.
taking part. The private financial institution requested The Cronbach alpha is .748. The scale was made by
the conduct of the survey as a way of determining the the researchers themselves based on several studies
financial concerns/challenges as well as the current on impulse buying. In the 5-point Likert scales, the
financial literacy status among public-school teachers. teachers were asked to indicate their level of agreement
In the Philippines, debt problem among teachers or disagreement with the items (from strongly agree to
is becoming serious (Reysio-Cruz, 2019). As a result, strongly disagree). The items pertained to spending
many loan companies offer different loan packages now without having to worry for the future, buying
to attract teachers. The results of the survey served things beyond one’s means, spending now rather
as a guide to come up with financial literacy learning than saving for tomorrow, buying things using credit
modules that will be used in the insurance company’s cards without thinking of whether one could afford
CSR initiative targeting public-school teachers. The them, buying things that are not really necessary, and
private-financial-institution-funded research project purchasing items that are not urgently needed. In the
included the financial literacy survey that was prepared statistical analysis, the total mean score was computed
by the researchers themselves, focus group discussions, for each respondent. A higher mean score indicated a
and a pre- and posttest experiment that aimed to know higher level of impulse buying. Respondents with a
the effect of financial literacy sessions on impulse mean score of more than 3 signified a high level of
buying. However, this current paper is only based impulse buying.
on the financial literacy survey conducted with the
teachers. RESULTS
For this paper, financial literacy is operationalized
in terms of ownership of financial instruments and Profile of the Teachers
use of financial records and record keeping. For the As earlier indicated, this survey involved 310
first section of the survey, the teachers were asked if teachers. A little more than half of them had served
48 M. A. Jabar& M. L. C. Delayco

Table 1. Teachers’ Profile

Variables f %
Length of Years in Service
0–10 years 135 43.5
11–20 years 74 24
21–30 years 71 22.8
31–40 years 30 9.6
Average: 15 years
Range: 0–40 years
Age
22–32 years old 67 21.7
33–42 years old 90 29
43–53 years old 97 31.2
54–65 years old 56 18
Average: 42
Range: 22–65 years old

Year Level
Elementary 146 47
High School 164 53
Civil Status
Single 214 69
Married 81 26
Separated 6 2
Widow/er 9 3
Sex
Male 40 12.9
Female 270 87.1
Educational Attainment
College Graduate 206 66.5
Master’s 103 33.2
PhD 1 .3

as public-school teachers for more than 10 years (see propensity among public-school teachers. Results
Table 1). The average length of years in service was showed that the teachers had a low level of impulse
15 years. The teacher with the longest length of service buying, as evidenced by the low mean scores in all
had served for 40 years. Half of the teachers were 42 the items. These results indicated that such practices
years old or below. The average age was 41 years. The were hardly or rarely experienced by them (see
youngest teacher was 22 years old while the eldest Table 2). Lower means scores on the items (with 5 as
was 65 years old. A little more than half (69%) of the the highest) suggested that teachers were generally
respondent teachers were single, and many of them contemplative and did not easily make a purchase
(87.1%) were female. Three in 10 of the respondents with credit cards; thus, they may not have been
had a master’s degree. A little more than half of the prone to impulse buying (Arslan, 2015). The item
respondents were teaching at the high-school level that had the lowest mean pertained to buying items
(53%). using a credit card without having to worry about
capacity to pay. The item that had the highest mean
Teacher’s Impulse Buying was related to spending without having to worry
As previously mentioned, the study that this about the future. Though respondents may not have
article is based on looked into the impulse buying been inclined to use credit cards in their purchase,
Impulse Buying and Financial Literacy Among Public Elementary and High School Teachers 49

Table 2. Teachers’ Mean Scores of Impulse Buying

Initial Eigenvalues Component

Items Mean* SD % of Cumulative
Total 1 2
Variance %
I am prepared to spend now and 2.7387 1.15727 2.282 38.028 38.028 .615 .513
let the future take care of itself.
I am impulsive and tend to buy 2.4613 .99356 1.055 17.588 55.616 .740 .324
things even when I cannot really
afford them.
I find it more gratifying to spend 2.4871 1.08453 .975 16.249 71.865 .237 .228
now than to save for
tomorrow.
I buy things using my credit 2.1419 1.04239 .684 11.403 83.267 .665 .163
card without worrying if I have
the money to pay for it.
I buy things that are not 2.2935 1.15510 .516 8.603 91.870 .678 −.504
necessarily needed.
I sometimes purchase items that 2.6323 1.14637 .488 8.130 100.000 .631 −.596
are not urgently needed.
Overall mean 2.4591
Note. *Scoring: >3.0 (high); <3.0 (low).

Table 3. Possession of Financial Instruments Among Teachers

Financial Instrument Yes %

Savings Account 133 42.9

Checking Account 74 23.9

Debit Card 102 32.9

Trust Fund 33 10.6

Phone Payment Account 65 21.0

Personal Pension Fund 33 10.6

Time Deposit in a Bank 82 26.5

Stocks 26 8.4

Bonds 31 10.0

Insurance Plan (Life) 54 17.4

Insurance Plan (Nonlife) 21 6.8

50 M. A. Jabar& M. L. C. Delayco

we cannot discount the fact that they may have been Use of Financial Records and Record Keeping
inclined to spend using cash payments. of Teachers
The teacher respondents were also asked to indicate
Possession of Financial Instruments whether or not they practiced record keeping and used
The teachers were asked if they had any of the 11 financial records for assessment and monitoring.
financial instruments identified for the survey. The Results of the survey showed that many of the
most popular instrument was the savings account. teachers (93%) claimed that they compared current
This was shown by the fact that 42.9% of the teachers and previous utility bills (see Table 4). They also
reported that they have such an instrument (see Table reported that they usually read and understood the
3). This was followed by a debit card with 102 teachers content of the bills before payments (82%). This may
indicating that they possess such an instrument. This indicate that they have the mathematical skills or
result was rather expected as teachers may receive numeracy necessary for effective financial decision-
their monthly salary either through a savings account making. The practices that were not common included
or through a debit card. The financial instruments that reviewing credit reports, checking of bank statements,
were least availed of were nonlife insurance (6.8%), recording of weekly expenditures, and writing
stocks (8.4), bonds (10%), and trust funds (10.6). long-term financial goals. This may indicate that
Overall, the most popular financial instruments utilized though they may have had the numeracy necessary
among the teachers were a savings account, a debit for effective financial decision-making, they may
card, and a checking account. These results may not have been engaged in certain activities such as
imply lower perceived risks associated with financial financial planning.
instruments from banks, a higher familiarity, and higher Spearman rho correlation was conducted to see
use of these financial instruments. the relationship between impulse buying and financial
The unpopular financial instruments were those literacy (which in this article is operationalized as
that referred to nonlife insurance and stocks. This ownership of financial instruments and use of financial
may imply high perceived risks associated with these records and record keeping) (see Table 5). The test
financial instruments and/or associated with those yielded no significant correlation between impulse
financial institutions issuing those financial instruments buying and possession of the different financial
and lower familiarity with these financial instruments instruments (r = −0.045, p = 0.429). However, there
and/or financial institutions. was a weak negative correlation between impulse

Table 4. Teachers’ Use of Financial Records and Record Keeping

Items Yes %
I always compare my current utility bills with my previous utility bills. 288 93
I regularly update my passbook. 198 64
I regularly check my bank statement either online or on paper. 183 59
I record my weekly expenditures. 155 50
I do credit reports review. 171 55
I keep a personal record of my financial activities. 236 76

I write down my long-term financial goals. 140 45

I personally calculate my net worth. 186 60
I keep my receipts religiously for recording. 166 54
Every time I receive a bill, I usually read and understand completely what’s 254 82
written on it before paying.
Impulse Buying and Financial Literacy Among Public Elementary and High School Teachers 51

Table 5. Spearman Rho Correlation for Impulse Buying and Possession of Financial Instruments and Record Keeping

Possession of Financial Spearman rho −0.045 —

Instruments p value 0.429 —
 
  N 310 —

Record Keeping Spearman rho −0.122 −0.022

  p value 0.031 0.706
  N 310 310

Table 6. Results of the Linear Regression

Model Fit Measures

Overall Model Test
Model R
R² Adjusted R²

1 0.162 0.0262 0.0199

Model Coefficients—Impulse Buying

95% Confidence Interval
Predictor Estimate SE T p
Lower Upper
Intercept 2.7535 0.1106 2.5359 2.9711 24.899 < .001

Possession −0.0192 0.0200 −0.0587 0.0202 −0.959 0.338

of Financial
Instrument
Use of Financial −0.0398 0.0147 −0.0687 −0.0109 −2.709 0.007
Record and
Record Keeping

buying and use of financial records and record keeping variance in impulse buying is attributed by the model,
(r = −0.122, p = 0.031). This indicates that impulse particularly by the variable use of financial information
buying may be avoided, as one uses financial records and record keeping.
in decision-making and practices record keeping.
Inconsistency in the results of the correlation of these DISCUSSION
two variables with impulse buying may be attributed
to lower order mathematical thinking skills in finance Overall, this study presents evidence that financial
(Kumleh et al., 2017), wherein effective financial literacy can create positive outcomes for individuals.
decision-making is not evident. The results specifically reveal that financial literacy in
A multiple regression was also conducted to predict terms of use of financial records and record keeping
impulse buying based on ownership of financial predicted impulse buying. This means that one is likely
instruments and use of financial records and record to engage in the behavior if one is unable to carefully
keeping as independent variables (see Table 6). make financial decisions that can be facilitated by use
These variables statistically significantly predicted of financial information through personal financial
impulse buying (F[2,307] = 4.14, p = 0.017, adjusted records. The results of this current study resonate
R2 = 0.0262). This result means that only 2.6% of the with the findings of Chen and Lemieux (2016) and
52 M. A. Jabar& M. L. C. Delayco

Yong et al. (2018), which maintained that financial Kumleh et al. (2017), it can thus be surmised that
knowledge (which is related to financial literacy) there is also a hierarchical relationship between lower
and attitude influenced financial behaviors including order thinking skills and higher order thinking skills.
impulse buying. The study of Barbić et al. (2019) Effective financial decision-making would require
likewise identified self-control in spending, planning thinking skills that go beyond lower order thinking
for the future, and seeking information as predictors skills.
of financial behaviors. This paper offers important insights as regard to
While it is significant, the results of the regression how financial literacy should be understood and how
analysis must be taken with a grain of salt. The low it should be taught in the classroom. As reflected in
level of propensity of the public-school teachers for the findings, using financial information and keeping
impulse buying may not necessarily be because of financial records were found to be associated with
effective financial planning but because of the very impulse buying. This then offers an important insight
fact that they receive low monthly income and at the as to how financial literacy intervention needs to be
same time have to pay off their existing debts. These framed. Instead of merely focusing on a financial
contexts do not provide them with prospects to indulge knowledge base, interventions can also delve into
in impulse buying. behavioral aspects of financial literacy (such as record
Results of this current study basically show that keeping, financial information seeking, and data-driven
individuals who seek financial information, keep financial decision-making). It also needs to include
financial records, and use them for financial decision- ways and means of dealing with impulse buying.
making are less likely to engage in impulse buying. It Financial literacy, therefore, takes the business of
is likely that individuals who keep and monitor records, suppressing psychological or personality-related traits
write down their long-term financial goals, and use data that predispose an individual to engage in impulse
in financial decisions are the ones who have high self- buying. It provides an emotional push for individuals
control or have achieved self-control in the process. A to be able to control their emotions and to provide a
number of studies have shown that self-control predicts basis for coming up with rational choices regarding
consumer behaviors and debt. For instance, the study purchases. Keeping and using personal financial
of Kaur and Singh (2018) found out that impulsive records, therefore, allows an individual to reflect and
buying behaviors are negatively correlated with self- make sound decisions prior to purchase, as it serves as
control. This means that those with high self-control a visible reminder of one’s financial capacity.
are the ones who are less likely to engage in impulsive
consumer behaviors. Financial records and financial CONCLUSIONS
information perhaps serve as visual reminders or
signals for individuals to control themselves, which in This paper establishes that financial literacy
the process promote living within one’s means. is associated with impulse buying. Specifically,
The absence of a significant correlation between individuals with a high level of financial literacy
impulse buying and possession of the different in terms of use of financial information and record
financial instruments should also be noted, as it may keeping are less likely to engage in impulse buying.
be attributed to ineffective financial decision-making However, possession of financial instruments did not
due to lower order mathematical thinking skills in have a significant association with impulse buying. It
finance (Kumleh et al., 2017). Referring to Bloom’s is worth noting that the choice of financial instruments
taxonomy, thinking happens in different levels of is favored toward those from banks, which may
complexity. The taxonomy refers to knowledge imply lower perceived risks associated with these
as “lower order” thinking (thinking involved in instruments, and also that the respondents are not as
remembering, comprehension, and application) and sophisticated in terms of considering other financial
“higher order” thinking (thinking involved in analysis, instruments.
synthesis, and evaluation). Kumleh et al. (2017) in their This paper proposes that teaching financial literacy
study indicated that there is a hierarchical relationship should not only focus on basic and sophisticated types
between the constructs of lower order mathematical of literacy but also include the practical aspects of it
thinking skills in finance. Referring to the work of including development of skills in planning, budgeting,
Impulse Buying and Financial Literacy Among Public Elementary and High School Teachers 53

and using financial records in coming up with sound Economics and Management Studies, 1(1). https://doi.
decisions including purchase behavior. Summarily, this org/10.35877/454RI.qems1180
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Barbić, D., Lučić, A., & Chen, J. M. (2019). Measuring
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Farid, D.S., & Ali, M. (2018). Effects of personality
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developing country. Marketing and Branding Research,
OF INTEREST 5, 31–43.
Ferrer, J.C. (2017). Caught in debt trap? An analysis of the
The authors declare no conflict of interest. financial well-being of teachers in the Philippines. The
Normal Lights, 11(2), 297–324.
ETHICAL CONSIDERATION Feslier, D. (2006). Financial education and financial
literacy in New Zealand. https://www.oecd.org/finance/
The study that this paper is based on was approved financial-education/37424633.pdf
by the De La Salle University Research Ethics Gathergood, J. (2012). Self-control, financial literacy and
consumer over-indebtedness. Journal of Economic
Committee.
Psychology, 33(3), 590–602. https://doi.org/10.1016/j.
joep.2011.11.006
FUNDING Gulf News (2019). Filipino teachers owe lenders 638-billion:
Official data show teachers’ total debt at Php319 billion
The study that this paper is based on was funded to both public, private lenders. https://gulfnews.
by AXA Philippines. com/world/asia/filipino-teachers-owe-lenders-638-
billion-1.1560688291 759
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