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QUANTITATIVE ANALYSIS OF FINANCIAL LITERACY AFFECT

PERSONAL SAVINGS BEHAVIOR AMONG
SENIOR HIGH SCHOOL STUDENTS

A Research Presented to the

Senior High School Department
of Tagum National Trade School
Apokon, Tagum City,
Davao del Norte

In Partial Fulfillment of the Requirements

In Practical Research ll

Hanie Rose A. Magallanes

Lady Aisley C. Williams
Sealtiel Biencarl Signe
Sherwin C. Jumamil
Chadly B. Yancha
Philip Jay P. Leopardas
Juan Miguel P. Cortel
Jovaney C. Anib

November 2024
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TABLE OF CONTENTS

Chapter 1
INTRODUCTION
Background of the Study 2
Statement of the Problem 6
Hypothesis 7
Review of Related Literature 7
Theoretical Framework 20
Conceptual Framework 23
Significance of the Study 24
Scope and Delimitation of the Study 25
Definition of Terms 26
Chapter 2
METHODS
Research Design 28
Respondents of the Study 29
Research Instrument 30
Data Gathering Procedure 32
Data Analysis 34
Ethical Considerations 35
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Chapter 1

INTRODUCTION

Background of the Study

These days, financial literacy and personal saving behavior play an

important role in everyone’s life. Saving can be challenging when resources are

limited. However, being knowledgeable about the relationship between financial

literacy and personal saving behavior can greatly aid in managing finances.

Therefore, it is essential to understand the impact of financial literacy on personal

saving behavior. A study by Babiarz and Robb (2019) found that financial literacy

significantly influences personal saving behavior. Financial literacy is an essential

skill because financially equipped and well-educated individuals make better

financial decisions (Lusardi & Mitchell, 2020). Personal saving behavior, including

having a specific saving plan or goal, contributes to financial progress and better

preparation for anticipated achievements (Babiarz & Robb, 2019). According to

Babiarz and Robb (2019), there is still a limited number of studies analyzing the

effect of financial literacy on saving behavior Hussain (2020) also examine the

relationship between financial literacy and saving behavior in a sample of 1,500

university students in Pakistan using structural equation modeling and found that

financial literacy is a significant determinant of savings. Additionally, Nguyen

(2019) emphasized that teaching young people about financial matters can help

them make responsible financial decisions as they grow older. Financial literacy

in the Philippines has faced heightened challenges, amplified by economic

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disruptions and emerging financial technologies. The expectation for children to

financially support their aging parents is still prevalent, often leaving little room for

conversations about saving, budgeting, or investing (Funa, 2021). The COVID-19

pandemic further exposed the need for financial literacy as many Filipinos

struggled with sudden financial hardships and were unprepared for the economic

fallout (Philippine Statistics Authority, 2021). This gap in financial literacy not only

affects individual financial well-being but also hinders the country’s economic

development. With low levels of financial inclusion and a high reliance on

informal lending, many Filipinos remain vulnerable to financial instability (BSP,

2020). Strengthening financial education is crucial to breaking this cycle and

empowering individuals to make informed financial decisions, which in turn could

foster long-term economic growth.

The issue of payday loan usage is intensify in low-income communities in

Tagum City, as economic challenges and a lack of financial literacy have

exacerbated the problem. In Tagum City, financial literacy programs remain

limited, particularly in economically disadvantaged areas. As a result, many

individuals are unaware of the risks associated with payday loans, including

hidden fees and high interest rates that can lead to long-term debt. Without

proper education and awareness, many residents continue to struggle with debt

management and financial planning. Efforts to enhance financial literacy in

Tagum City, such as community-based programs and partnerships with local

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banks, are crucial for empowering individuals to make informed financial

decisions.

The urgency of studying financial literacy has intensified due to several

global developments. The COVID-19 pandemic revealed significant financial

vulnerabilities, with many individuals facing sudden unemployment and economic

instability, highlighting the need for stronger personal financial knowledge (Hasler

& Lusardi, 2021). Additionally, the rise of fintech, including digital payment

systems and cryptocurrencies, has introduced complex financial products that

require a higher level of understanding to navigate effectively (Rothwell &

Robson, 2021). The growing gig economy and increasing student loan debt have

also emphasized the need for individuals to manage their finances independently

(Davies et al., 2021). Researchers will continue to show that improving financial

literacy benefits both individuals and economies, as informed consumers

contribute to more resilient financial systems (Lusardi & Mitchell, 2020).

The positive correlation between personal savings behavior and financial

literacy has been the subject of ongoing research, but it is also bring attention to

the need for a deeper comprehension of the mechanisms behind long-term

savings decisions across demographic groups. According to recent research,

there is a positive correlation between financial education and saves rates;

nevertheless, psychological elements like self-control and financial confidence

are being overlooked despite their major impact on savings rates (Smith & Jones,

2020).
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Financial literacy's impact on personal savings behavior continues to have

enormous social value, increasing economic stability and decreasing financial

inequality (Clark, Martinez, & Nguyen, 2020).

Statement of the Problem

The study aims to identify potential areas in which future financial

education initiatives could offer significant assistance in preparing young

individuals for financial security. This study specifically attempts to:

1. Describe the level of financial literacy of Senior High School in terms

of:

1.1 Financial Attitudes

1.2 Financial Behavior and;

1.3 Savings

2. Describe the level of savings behavior of Senior High School in terms

of:

1.1 Investing Behavior and;

1.2 Spending Behavior

3. Determine the significant relationship between the level of financial

literacy and personal savings behavior among senior high school

students.

Hypothesis

The following hypothesis were formulated and tested at a 0.05

significance level.
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(Ho1): There is no significant relationship between financial literacy and

personal savings behavior among senior high school students

(Ho2): There is no domain in financial literacy that affect to personal

savings behavior of senior high school students.

Review of Related Literature

The following readings were collected from diverse literacy sources that

explore the relationship of how financial literacy that affect personal savings

behavior.

Financial Literacy

Recent studies emphasize growing concerns about financial

preparedness, revealing that people across different age groups often lack the

essential knowledge for making informed financial choices. Over the past

decade, research has continued to highlight how poor financial literacy negatively

affects productivity in the workplace. For example, Zafar and Skully (2019) found

that inadequate financial understanding increases stress levels, which in turn

hampers employee performance. Likewise, Lusardi and Mitchell (2020) show that

low levels of financial literacy are linked to poor financial decisions, impacting

both personal well-being and job productivity. Recent findings also suggest that

workplace financial wellness programs have become a popular strategy for

bridging these knowledge gaps, yielding positive results in helping employees

make better financial decisions (Clark, Lusardi, & Mitchell, 2019).

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Recent research continues to validate the strong connection between

financial literacy and responsible financial behaviors. For instance, Lusardi and

Tufano (2019) emphasize that individuals with higher levels of financial

knowledge are more likely to practice effective financial habits such as

budgeting, saving, and investing. Similarly, Clark, Lusardi, and Mitchell (2020)

observed that those with greater financial literacy tend to manage their cash flow,

credit, and savings more efficiently.

Furthermore, Lusardi and Tufano's 2019 study supported the notion that

those with lesser financial literacy are more likely to accumulate debt and have

other financial troubles, such as increased borrowing costs and mortgage

defaults. These results highlight how important financial literacy is for enhancing

financial wellbeing and lowering the dangers involved in making bad financial

decisions.

Financial Attitudes

There is a lot of room for growth in the tourism industry. In addition to

generating foreign cash, tourism has helped to enhance employment

opportunities sufficiently to improve people's wellbeing. Yogyakarta City is one of

several places that depend on the tourism industry as a strategy for economic

development. In addition to being the City of Culture and Struggle, Yogyakarta

City is a well-liked travel destination. The historical structures and legacy have

been kept in good condition. The same is true of Maliboro Street's potential for
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shopping tourists.Yogyakarta City residents continue to preserve Javanese

customs and traditions, as evidenced by their language, art, social life, and

adatistiadat practices. Naturally, this enhances Yogyakarta City's reputation as a

"special" travel destination. It is anticipated that this privilege will improve

Yogyakarta City's tourist institutions, businesses, and destinations even more.

(Yogyakarta City Tourism Office, 2020).

It is known that the number of tourists visiting Yogyakarta City has been

rising annually based on statistics data from 2017 to 2019. There were 4,378,609

visitors in 2019. In comparison, 3,894,771 tourists visited in 2017, while

4,752,351 tourists visited in 2018. This amount included 219,332 overseas

visitors and 4,533,029 domestic visitors. To maximize tourism, the Special

Region of Yogyakarta Government renovated several structures in Yogyakarta

City that serve as tourist attractions and infrastructure and are part of the city's

strategic area. (Yogyakarta City Tourism Office, 2020).

A set of abilities and knowledge needed for managing one's own finances

and comprehending money in a variety of contexts, such as general financial

knowledge, investments, insurance, savings, and investments, is known as

financial literacy. Many scholars have literally studied the relationship between

personal financial management. Spuhlera & Dew (2019) They make

recommendations for future research in their study that will look more closely at

the sociological and psychological facets of financial attitudes toward

management and financial pleasure. Goyal et al., (2021) They make

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recommendations for future research in their study that will look more closely at

the sociological and psychological facets of financial attitudes toward

management and financial pleasure. Based on suggestions from Goyal et al.

(2021) and Spulhera &; Dew (2019), this study looks at financial literacy and

attitude variables as well as other factors that influence personal financial

management.

Based on research by Gustika (2020) and Mulyati &; Hati (2021). It

asserts that a person's financial attitude has no bearing on their personal

financial management. To counter this claim, this study incorporates financial

literacy as a mediating factor. It is anticipated that this mediation element will

have an impact, albeit indirectly. Furthermore, financial attitude has an impact on

financial literacy as well. A person who has sound financial principles will also be

financially literate. Rai et al. (2019) stated that financial attitude has a positive

influence on financial literacy.

This study tries to examine elements that influence an individual's

behavior related to money management, it is pertinent to the notion of planned

behavior. A hypothesis that can forecast someone's behavior is known as the

theory of planned behavior. (Assyfa, 2020).

Regarding hypothesis three, which states that personal financial

management is impacted by financial literacy, the data obtained indicates that the

third hypothesis is accepted, since the P-Value value is 0.008 or less than 5%.
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Additional evidence for this comes from earlier studies done by Nazah et al.

(2022) demonstrated that students' personal financial management is influenced

by their level of financial literacy.

Financial Behavior

Since entrepreneurship generates jobs and provides solutions for social

problems, it is essential for opening new opportunities for economic growth

(Kimmit & Munoz, 2017; Urbano & Aparicio, 2015; Zarnadze et al., 2022). As a

result, entrepreneurship education in postsecondary institutions must be

developed and taught to students in an effective manner. Regrettably, a variety of

problems, including a lack of financial literacy in individuals, impede the

development of entrepreneurial potential among young people in Indonesia

(Napitupulu, 2021; Prasetyo, 2020). Java Island is one of the biggest and most

important islands in Indonesia, which is a huge archipelago densely populated

islands in the world, including Indonesia. Examining the entrepreneurial

motivation of students on Java Island is crucial for Indonesia's economic

development, as it is not surprising that the island serves as the political and

economic hub of the country (Dsikowitzky et al., 2019; Setyaningrum, 2022).

Entrepreneurs need to be well-versed in finance for their firm to prosper.

According to (Vodă & Florea, 2019), entrepreneurs are those who launch

businesses, use resources, take calculated risks, and actively engage in

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business decisions. Successful business owners must possess great money

management abilities (Ahmad et al., 2021).

For their business to be successful, entrepreneurs must possess a strong

understanding of finance. Entrepreneurs are those who start firms, employ

resources, take measured risks, and actively participate in business decisions,

according to Vodă & Florea (2019). Excellent money management skills are

essential for successful business owners (Ahmad et al., 2021). As has been

noted, one of the most important factors in supporting entrepreneurship is

financial literacy, which involves knowledge or training related to money

management, assets, banking, investments, credit, insurance, taxes, and the

ability to apply this information to create effective personal financial plans.

Financial literacy has a significant influence on personal financial behavior and

can help promote financial competence (Lusardi & Mitchell, 2019; Xiao & O’Neill,

2020).

Before beginning any business activity, entrepreneurs need to have a solid

understanding of finance and financial skills. Education imparts skills and

information that lead to appropriate financial behavior, which in turn helps a firm

run successfully (Ahmad et al., 2021). The government has also made a specific

effort to raise the standard of entrepreneurship in Indonesia; one way this has

been demonstrated is by the addition of entrepreneurship teachings to the school

curriculum (Saptono et al., 2020).

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Entrepreneurs must possess strong financial knowledge and abilities

before starting any kind of business. Education transfers knowledge and abilities

that result in sound financial behavior, which supports a company's smooth

operation (Ahmad et al., 2021). The inclusion of entrepreneurship lessons in the

school curriculum is one way the government has specifically worked to improve

the level of entrepreneurship in Indonesia (Saptono et al., 2020). Unfortunately,

many young entrepreneurs struggle to manage their businesses in real life.

Despite the fact that sound financial conduct and financial literacy are

essential to operating a successful firm, many Indonesian entrepreneurs still

struggle with these skills (Napitupulu, 2021; Prasetyo, 2020). According to a

report on CNBC Indonesia (Bestari, 2022), several start-up businesses in

Indonesia have failed, with poor financial behavior and a lack of financial literacy

being the main causes of these failures. Lack of capital is one reason why

businesses fail, thus those with entrepreneurial spirit might not know how to raise

capital when they first launch their venture (Li & Qian, 2020). Although most of

the research around entrepreneurial intentions that examines elements like

education, psychological factors, and financial literacy has not been adequately

researched, Indonesia is a developing nation that strongly encourages

entrepreneurship programs to support economic development (Aldi et al., 2019).

Savings Behavior
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Savings behavior one of the main concerns was the prevalent lack of

financial literacy among students in some countries (Wafula, 2022). Similarly in

Mozambique, it was documented that more than 61% of the citizens including the

students of Mozambique did not correctly answer the questions regarding

financial literacy, which indicates that the levels of financial literacy are low

(Cossa et al., 2020). This opens the door to the exploitation of low-income,

unbanked families by high-interest alternative financial services and if the

financial index was below 60%, it indicates one's knowledge of low finance

(Shanbhag, 2022).

Moreover, according to Fernando (2023), lack of financial literacy can lead

to adverse outcomes such as unsustainable debt, poor credit, bankruptcy, and

housing foreclosure. Therefore, low financial literacy can lead to students falling

into debt spirals in the future that imprison them in poverty (Onturk, 2020). In

Davao City, a study found that households with bad financial habits and low

levels of financial literacy could lead to life decisions that are helpless and have

unfavorable consequences (Gonzaga, 2021). Furthermore, one of the main

causes of financial troubles among students was said to be their inability to

handle their money (Ablay et al., 2023). Also, individuals' attitudes about saving

and budgeting are challenged by impulsive buying behaviours, which frequently

result in bad money management, economic misery, and poor financial

management (Agabon & Bastida, 2022).

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In the Municipality of Mawab, specifically among Senior High School

students at Lorenzo S. Sarmiento Sr. National High School, researchers

conducted random interviews to assess the level of financial literacy among

students. It was observed that students who were more involved in family

financial discussions and practiced good saving and spending habits

demonstrated higher financial literacy. This aligns with findings by Shim et al.

(2019), who noted that financial socialization, including family involvement in

financial discussions, positively impacts financial literacy and behavior. This

pattern mirrors research by Grohmann et al. (2019), which emphasizes that

limited financial knowledge can lead to poor financial decision-making and

impulsive spending.

The interconnected factors of familial guidance, financial habits, and

decision-making are likely contributors to the financial literacy levels among

students. This understanding led researchers to investigate the critical role of

family involvement and financial behaviors in shaping students’ financial

knowledge. The study aims to identify the factors influencing financial literacy

and the challenges students face, with a particular focus on how family

involvement and saving/spending behaviors relate to financial literacy within a

school setting. Findings from this research could inform the development of a

financial literacy program tailored to students’ needs, emphasizing the

importance of family participation and responsible money management. By

fostering a finance-conscious environment, the study could promote awareness

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of financial literacy and its societal importance. Ultimately, the research aims to

improve students’ financial well-being and provide actionable steps toward

enhancing their financial knowledge (Xiao & Porto, 2019; Shim et al., 2019).

Investing Behavior

In recent years, financial literacy has garnered significant attention from

researchers, financial institutions, and policymakers (Kumari, 2017; Lusardi,

2019). The ability to effectively manage personal finances has become

increasingly crucial in today’s society. Individuals need to plan for long-term

financial goals, such as retirement and their children’s education, while also

managing short-term needs like saving and borrowing for vacations, education,

emergencies, home and car loans, among other things. Financial literacy

includes not only comprehension of financial terms and concepts but also key

financial perspectives related to investing and fund management aimed at

enhancing wealth and financial security.

Individuals need to be aware of available borrowing and investing options,

including understanding brochures, annual statements, and complex interest

calculations. These factors introduce a new level of complexity regarding

financial products, requiring skills to assess their advantages and disadvantages.

Another critical component of financial literacy is the ability to apply this

knowledge to make sound financial decisions (Kumari & Ferdous, 2019; Wagland

& Taylor, 2009).

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Lusardi (2019) emphasizes that students need financial skills now more

than ever due to recent developments in the financial market. These changes

have highlighted the importance of being well-informed about financial options

and making discerning choices, which is at the heart of being financially literate.

Financial literacy also helps individuals prepare for challenging economic times

by encouraging strategies like building savings, diversifying assets, and

purchasing insurance. It connects individuals’ knowledge of economics and

finance to their decisions on savings, retirement planning, and portfolio

management.

The principle of economic theory suggests that well-educated consumers

foster strong competition and efficient markets. In essence, financial literacy is

vital for businesses, the economy, and the country, especially in this age of

globalization. Therefore, in this study, financial literacy is defined as the

understanding of basic economic and financial concepts, and the ability to apply

that knowledge to manage financial resources. This study seeks to explore the

extent to which financial literacy influences the investment decisions of

undergraduates in Sri Lanka.

Spending Behavior

The Issue of personal debt and related financial difficulties has been

recognized in recent studies as a widespread and pressing concern globally.

According to the 2019 Manulife Investor Sentiment Index (MISI) survey, 41% of
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Filipino investors reported having high levels of personal debt, making the

Philippines one of the countries in Asia with significant debt concerns (Manulife,

2019). This issue is not only prevalent among the general population but also

impacts the workforce within the Department of Education (DepEd) in the

Philippines. Research indicates that poor financial well-being has a direct effect

on the performance of public school teachers, leading to decreased workplace

productivity (Garcia, 2020).

Furthermore, financial management skills are crucial for individuals to

navigate the complexities of modern life. Financial literacy plays a critical role in

economic stability and growth, as poor management of savings and investments

often leads individuals into financial traps, such as falling victim to scams or

being burdened by high-interest debt (Sukumaran & Alamelu, 2019). The

importance of equipping people with the skills to make informed financial

decisions cannot be overstated.

Financial literacy, defined as the combination of knowledge, skills,

attitudes, and behaviors needed to make sound financial choices, is essential for

everyone, including public school personnel. As recent studies have shown,

financial literacy leads to enhanced financial well-being, reduces stress and

social pressures, and improves overall family welfare. Financial literacy is also

linked to a reduction in family disputes, health issues, and conflicts, as noted in a

2022 OECD/INFE report, which highlights the role of financial literacy in

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improving overall well-being and mitigating financial concerns (OECD/INFE,

2022).

Research demonstrates a strong connection between financial literacy

and personal savings behavior among senior high school students. Financial

literacy, which encompasses the knowledge and application of concepts such as

budgeting, saving, and investing, significantly influences individuals’ ability to

manage their finances. Grohmann et al. (2019) found that students with higher

financial literacy levels are more likely to engage in positive financial practices,

including consistent saving. Additionally, financial education has been shown to

enhance savings behavior among youth, with Lusardi and Mitchell (2019)

identifying a clear relationship between financial literacy and improved decision-

making in savings.

Multiple studies indicate that incorporating financial literacy programs into

school curricula can lead to better saving habits among students. For instance,

Xiao and Porto (2019) showed that students who participated in financial

education were more likely to exhibit effective saving behaviors compared to

those who lacked formal financial training. Financial socialization, or the way

individuals gain financial knowledge from their families and surroundings, also

plays a vital role in this context. According to Shim et al. (2019), students who

receive financial socialization at home or through educational settings are more

inclined to save regularly.

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The link between financial literacy and savings behavior is particularly

significant for senior high school students as they start to make more

independent financial choices. Research indicates that financially literate youth

are better equipped to set savings goals and manage their finances effectively,

leading to improved financial outcomes (Lusardi & Mitchell, 2019). In summary,

evidence supports the notion that enhancing financial literacy among senior high

school students promotes healthier saving habits, which are essential for their

long-term financial stability.

Theoretical Framework

This study is anchored on the Theory of Planned Behavior (TPB),

formulated by Icek Ajzen. This theory posits that an individual’s actions are

influenced by their intentions, which are shaped by three components: their

attitudes toward the behavior, the subjective norms they perceive, and their

perceived behavioral control (Ajzen, 1991). Applied to financial literacy and

saving behavior, the Theory of Planned Behavior suggests that individuals who

hold a favorable view of saving, experience social support from family or peers

regarding saving, and feel confident in their ability to save are more likely to

practice regular saving. Financial literacy plays a critical role in strengthening

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these components by increasing knowledge of savings options and boosting

confidence in financial decision-making.

Financial literacy affects attitudes toward saving by helping individuals

recognize the long-term advantages of saving and the risks of not saving. When

people understand concepts like compound interest, inflation, and the safety net

provided by emergency funds, they are more likely to adopt a positive outlook on

saving. Financial literacy also influences subjective norms, as individuals become

more aware of the expectations and practices of those around them. When

financially literate friends or family members are engaged in consistent saving,

individuals may feel greater motivation to follow suit (Ajzen, 1991). Thus, the

Theory of Planned Behavior demonstrates how financial literacy can positively

shape psychological factors that drive personal savings behavior, leading to more

informed and intentional financial actions.

This study also supported by Human Capital Theory (Becker, 1964). This

theory suggests that individuals invest in their knowledge and skills to improve

their economic outcomes, much like businesses invest in physical capital to

increase production. In the context of financial literacy, the theory implies that

individuals with higher levels of financial knowledge are better equipped to make

informed financial decisions, leading to improved financial behaviors and long-

term financial well-being. Moreover, this theory highlights the importance of

education in financial literacy. Just as education is a key factor in enhancing

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general human capital, targeted financial education programs can significantly

impact a person’s financial knowledge and decision-making ability.

This study supported by Behavioral Life-Cycle Hypothesis (Shefrin &

Thaler, 1988), which integrates behavioral psychology into economic decision-

making. This theory suggests that individuals mentally divide their wealth into

three categories: current income, current assets, and future income. Financial

behavior, according to this theory, is influenced by psychological factors such as

self-control, mental accounting, and framing. Individuals with higher financial

literacy are better able to understand the long-term implications of their financial

decisions, exercise self-control, and resist the temptation to over-consume in the

short term (Thaler, 1990)

Conceptual Framework

Independent Variable Dependent Variable

Financial Savings
Literacy Behavior

 Savings  Investing
 Financial Behavior
Attitudes  Spending
 Financial Behavior
Behavior
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Significance of the Study

This study is beneficial for these groups of people. In particular this was

useful for the following:

Students. The study will help students develop better financial literacy

and savings habits.

Parents. It will provide parents with insights to better support their

children’s financial education.

Teachers. This study enables teachers to effectively manage their

personal finances, including budgeting, saving, and investing.

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School Administrators. This study enables the school administrator

finances effectively, ensuring the institution’s sustainability and the achievement

of its educational goals.

DepEd Officials. It will enhance the capacity of the DepEd Officials to

manage resources effectively and promote financial health within educational

institutions.

Future Researchers. It enables the future researchers to understand and

analyze financial data effectively. This skill is essential for conducting rigorous

research, especially in fields like economics, finance, where financial variables

often play a significant role.

Scope and Delimitations of the Study

The objective of this research project is to provide a quantitative

examination of the relationship between the Financial Literacy of senior high

school students at Tagum National Trade School and their personal savings

behavior. The goal of the study is to find a relationship between grade 11 and

grade 12 level of financial literacy and their willingness or ability to save money

by testing their knowledge on topics including comprehending financial products,

budgeting, and saving. This will entail gathering information via surveys or

questionnaires, which will then undergo statistical analysis to determine the

degree to which financial literacy affects respondents’ saving habits. The study is
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important because it sheds light on how high school financial literacy instruction

influences students’ financial behaviors, especially when it comes to saving

money. As the importance of financial responsibility increases.

The delimitation of this study is restricted to junior high school students

who were registered at Tagum National Trade School throughout the study’s

academic year. The study will pay particular attention to senior high school

student of how financially literate students are and how it directly affects how

they save for themselves. It will not look into other financial practices like

investing or spending, nor will it look into larger socioeconomic issues that might

also have an impact on saving behavior. Quantitative methods, mainly structured

questionnaires, will be employed to gather data on personal savings tendencies

and financial literacy. Additionally, this research will exclude students from other

year levels, schools, or regions and maintain the focus on senior high school

students in Tagum National Trade School.

Definition of Terms

The following concepts of financial literacy were defined conceptually and

operationally to establish a shared understanding.

Literacy. In this study, this term refers to encompasses the capability to

comprehend and utilize different financial skills, such as managing personal

finances, creating budgets, and investing. It enables individuals to make

knowledgeable choices that improve their financial health (OECD, 2019).

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Savings. In this study, this term refers to involve setting aside a portion of

one’s income for investments, future needs, or unexpected expenses.

Developing consistent saving habits enables individuals to prepare for long-term

financial goals and create a financial safety net (Lusardi & Mitchell, 2021).

Chapter 2

METHODS

This chapter illustrates the study’s various methods, such as research

design, research respondents, research instruments, data gathering, statistical

treatment of data, and ethical considerations.

Research Design

In this study, the researchers will use quantitative non-experimental

methods, applying descriptive-correlational approaches. Quantitative research

focuses on numbers, and results are based on numeric analysis and statistics
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(e.g., Abante et al., 2019). Additionally, quantitative research involves the

collection and analysis of numeric data. It is use to find patterns and averages,

make predictions, test causal relationships, and generalize results to broader

populations (Bhandari, 2022).

Moreover, descriptive research design aims to accurately and

systematically describe a population, situation, or phenomenon (McCombes,

2022). Nassaji (2015) argued that descriptive research aims to categorize and

analyze phenomena. More recent works have continued to emphasize that

descriptive research is crucial in providing an accurate portrayal of current

conditions. For instance, the use of descriptive design offers a clear snapshot of

what is happening at a given moment, allowing for the generation of pertinent

research questions (Clark & Creswell, 2019). This method is essential for

understanding real-time trends and behaviors in various fields (Yin, 2020).

In addition, correlational research design investigates relationships

between variables without the researcher controlling or manipulating them

(Bhandari, 2022). According to Tan (2014), a correlational study seeks to

ascertain relationships between two variables. Simply put, it examines whether

an increase or decrease in one variable causes the other to increase or

decrease.

Respondents of the Study

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The respondents of this study are the Senior High School students of (A)

Tagum National Trade School enrolled during the 1st semester of S. Y. 2024-

2025. There were total of 1,460 respondents in this study.

This study will use simple random sampling to establish the sample size

and total number of respondents. Simple random sampling involves a randomly

selected subset of a population. In this sampling method, each population

member has an equal chance of being selected (Thomas, 2022).

The researchers will utilize a sample size of 314 out of a population of

1,460 using the Raosoft calculator, with a marginal error of 0.05 and a confidence

level of 95%.

Table 1
Respondents of the Study

Grade and Section Population Percentage Sample

Grade 11 748 51% 160
Grade 12 712 49% 154
Total 1,460 100% 318

Research Instrument

This research study utilized an adapted instrument from The Influence of

Financial Literacy, Financial Attitudes, and Lifestyle on Financial Behavior

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Questionnaire. The questionnaire, which encompasses the domains of savings,

financial attitudes, and financial behavior, has been modified to suit the context of

this study. The adapted questionnaire served as a valuable tool for assessing the

financial literacy of senior high school students at school (A).

The financial literacy levels of senior high school students at school (A)

were assessed based on specific parameter limitations, descriptive equivalents,

and interpretations. These criteria were used to analyze and categorize students'

observed levels of linguistic skills, providing valuable insights into their savings

behavior. The findings from this analysis were crucial for understanding the

financial literacy capabilities of students and identifying areas for improvement.

Parameter Descriptive Equivalent Interpretation

Limits
This means that students’
4.20- 5.00 Very High financial literacy is
excellent.

This means that students’

3.40- 4.19 High
financial literacy is very
good.

This means that students’

2.60- 3.39 Moderate financial literacy is good.

Low This means that students’

1.80- 2.59
financial literacy is fair.

This means that students’

 29

1.0- 1.79 Very Low financial literacy is poor.

Determinants of Saving Behavior of MBF Students at Yangon

University of Economics Questionnaires. This questionnaire's adaptation

ensures relevance to the study's context, offering a comprehensive assessment

tool.

Senior high school students' self-confidence levels at school (A) were

determined by specific parameter boundaries, descriptive equivalents, and

interpretations. These criteria, incorporated into the analysis, helped categorize

and understand students observed financial literacy, providing insights into their

confidence in various saving intelligence domains.

Parameter Descriptive Equivalent Interpretation

Limits
This means that students’
4.20- 5.00 Very High savings behavior for the
semester is highly
proficient.

This means that students’

3.40- 4.19 High
savings behavior for the
semester is highly
proficient.
 30

This means that students’

Moderate savings behavior for the
2.60- 3.39 semester is moderately
proficient.

This means that students’

savings behavior for the
1.80- 2.59 Low semester is slightly
proficient.

This means that students’

Very Low savings behavior for the
1.0- 1.79
semester is not proficient.

Data Gathering Procedure

The necessary data were gathered in a systematic procedure that

involved the following.

Seeking Permission to Conduct the Study. Before initiating and

conducting a study, it is crucial to obtain permission. The researchers will deliver

a letter asking permission from the school principal to conduct this study. After it

is approved, a similar letter will be sent to the respondent's advisers for approval.

After the approval of the classroom adviser, the researchers will start to give

some brief explanations about the study conducted.

Seeking the Consent of the Respondents and Giving of General

Orientation. After getting permission to conduct the study, the researchers

coordinated with the class advisers of the respondents, who served as the

gatekeepers of the study. Then, the researchers explained the details and the
 31

purpose of the study. Afterward, permission will be given to the parents to use

their student's data and let them sign the informed consent. Participation is

voluntary and anonymous. With the assistance of the advisers, queries from the

respondents will be addressed by the researcher to further explain the study.

Administering and Retrieving the Survey Questionnaires. Once

permission was granted and informed consent was secured, the researchers

proceeded with the study using the adapted questionnaire. Subsequently, the

researchers will also provide clear instructions on how to answer the

questionnaire. Respondents will answer the survey questionnaire in hard copy.

Checking, Collating, and Processing of Data. Finally, all raw scores

were collated and tabulated after data retrieval. The results of the tabulated data

will be submitted to the statistician for statistical analysis to seek answers to the

problems raised in the first chapter of the research. Throughout the process, the

researchers ensured complete anonymity and confidentiality of the respondent's

data. The research findings then underwent a thorough ethical review.

Data Analysis

The following statistical tools were used to interpret and analyze the

collected data.

Mean. Often referred to as an arithmetic mean, this statistical measure

aids in summarizing a large set of numbers. The mean represents the central

value of a data set, simplifying data interpretation and helping identify trends
 32

across groups or variables. It will be used to describe the degree of habitual

online shopping behavior and the student's financial management.

Standard Deviation. The dispersion in the data was measured using the

standard deviation, which is relative to the mean. This statistical method was

used to assess the equality of results or how closely they were centered around

the mean. This study will measure how high or low the responses of the

respondents in habitual online shopping behavior.

Pearson r. The Pearson correlation coefficient (r) is the most common

way of measuring a linear correlation. This statistical measure is used to

determine if there was an association between the variables, specifically

examining the correlation between habitual online shopping behavior and a

student's financial management.

Linear Regression Analysis. This statistical technique demonstrates the

link between two or more variables, typically represented by a graph. It examined

the relationship between dependent and independent variables. This study will

demonstrate the financial management and habitual online shopping behavior of

senior high school students.

Ethical Considerations

The Belmont Report Framework (1979) presents the core ethical

principles outlined by the Commission throughout its discussions. During the data

collection and writing process of the study, consent, voluntary participation,

privacy and secrecy, risk identification and mitigation, and identification of

 33

potential benefits will all be used to achieve this. In this study, researchers at

Tagum National Trade School prioritized participant safety and privacy, avoided

deception and ensured methods complied with ethical and legal frameworks.

These considerations set the stage for presenting ethical safeguards to research

subjects within the study. This study also addressed other ethical concerns like

conflict of interest, plagiarism, fraud, falsification, and observation authorization

from the organization.

Informed consent. Participants will receive a consent form outlining the

study's purpose, benefits, procedures, risks, and rewards. The researcher will

emphasize participants' right to participate or withdraw and assure them of data

privacy and confidentiality. This process aligns with the Belmont Report's (1979)

principle of respect for persons, which embodies the concept of informed

consent, where individuals enter a research study voluntarily, have sufficient

information, and are free from coercion or undue influence from researchers or

others who may profit from their participation.

Privacy and confidentiality. Researchers shall adhere to the principles of

transparency, legitimate purpose, and proportionality in the collection, retention,

and processing of personal information (Data Privacy Act of 2012). The research

emphasizes the importance of protecting participant privacy and confidentiality by

using personal information only for its intended purpose and obtaining informed

consent. To ensure anonymity, the online survey will not collect email addresses
 34

or other personal data, guaranteeing that participants’ responses will be kept

secret, and their identities will remain anonymous.

Respect for persons. According to the Belmont Report (1979), respect

for persons includes two fundamental ethical principles: first, that individuals

should be treated as autonomous agents, and second, that those with diminished

autonomy should be provided with protection. To ensure respect for participants,

the researchers will adhere to several key practices. They will greet participants

as a gesture of respect and ensure that all interactions during the survey process

are respectful and polite. Participants will be thanked for their involvement after

the survey, and a courteous farewell will be given. Additionally, participants will

have the right to decline participation if they choose.

Fair Treatment. The principle of justice in research, emphasizes fair

treatment by ensuring that no individual, group, or community bears

disproportionate burdens or is excluded from benefits. Researchers are urged to

prioritize inclusiveness and equitable distribution of risks and rewards, actively

engaging historically underrepresented and vulnerable populations. It is essential

to minimize potential risks to participants while ensuring that they can benefit

from the research findings. Additionally, a balance must be struck between

transparency and protecting participants' privacy and confidentiality, adhering to

data protection regulations and ensuring that data is used solely for its intended

purposes (Tri-Council Policy Statement: Ethical Conduct for Research Involving

Humans, 2020).
 35

Data Handling. The researcher must develop a detailed plan for

collecting, storing, analyzing, sharing, and archiving data, which should be

approved by an Ethical Review Board (IRB). Standardized methods will ensure

data accuracy and any deviations from protocols must be documented.

According to Apanasevic (2018), Ng’engo (2018), and Patrick et al. (2013),

Research Data Management (RDM) involves evaluating data formats, storage

locations, the amount of data, retention duration, and the implementation of an

RDM plan to maintain data integrity.

Avoiding Bias. Bias can occur in the planning, data collection, analysis,

and publication phases of research. Understanding research bias allows readers

to critically and independently review the scientific literature and avoid treatments

that are suboptimal or potentially harmful. A thorough understanding of bias and

how it affects study results Pannucci et al., (2010) researchers should ensure

diverse representation in their data by considering factors like race, gender, and

socioeconomic status to avoid biased results. They should regularly evaluate

their data and algorithms for bias, take corrective actions, and acknowledge any

limitations. Fairness in data analysis and decision-making is crucial to prevent

discrimination and address the potential impact of research findings on different

populations.

Transparency. According to the National Ethical Guidelines for Health

and Health Related Research (2017), researchers are required to be transparent

about elements of a study that could influence participants’ rights, health, and
 36

safety, or affect their decision to provide or withhold informed consent.

Researchers must clearly and thoroughly explain their research methods,

including the study design, data collection methods, analysis techniques, and

statistical procedures. This transparency ensures that others can understand

how the research was conducted and evaluate the validity of its findings.

Additionally, openness in research fosters communication, collaboration, and the

swift dissemination of results, ultimately speeding up scientific progress.

Plagiarism and Integrity. The unauthorized use of others' work without

proper attribution, remains a significant issue in academic and professional

settings. This unethical practice, which can range from copying entire passages

to paraphrasing without citing sources, undermines the integrity of intellectual

property and erodes trust in the academic and professional communities. The

consequences of plagiarism can be severe, including academic penalties,

professional sanctions, and damage to one's reputation (Sayeda, 2024). To

ensure originality and prevent plagiarism, the researcher implemented a

comprehensive approach. This involved utilizing various techniques like

paraphrasing, translating, direct quoting, and summarizing to incorporate specific

information from sources into the research report. Additionally, the researcher

employed plagiarism detection software as a safeguard to identify any

unintentional instances of text duplication.

Safety Measures. Research conducted within school settings presents

unique ethical challenges that must be carefully considered. Obtaining informed

 37

consent from gatekeepers, such as school administrators and parents, is

paramount to ensure the study's legitimacy and respect for the educational

environment. Furthermore, protecting the well-being of participants is a top

priority. This involves safeguarding them from any potential physical, social, or

psychological harm that may arise from their involvement in the research (Jena,

2020). Researchers meticulously design and implement studies to minimize risks

and prioritize the safety and well-being of the respondents. This ethical

commitment is essential for maintaining trust and promoting responsible research

practices within schools.

Reporting Results. The effective communication of research findings is a

crucial element that determines the impact and value of the research endeavor.

Disseminating research results in a clear, concise, and accessible manner allows

others to understand, interpret, and utilize the findings. Failure to properly

communicate research outcomes can have detrimental consequences, rendering

the entire research effort meaningless or even misleading. Aityan (2022)

highlights the importance of effective communication, emphasizing that the value

of research lies not only in its execution but also in its ability to reach and

influence others. The researchers adhere to a set of ethical and methodological

principles, provide detailed information based on the research results, and report

all findings accurately.

 38

References