LOCAL LITERATURE

I. Introduction

According to Saripada et al. (2024), attempts to study the

correlation between the financial literacy and spending behavior of the

senior high students of Carlos P. Garcia Senior High School in Davao

City. The researchers illustrated the need for financial education by

showing that the level of financial literacy is directly proportional to the

safe financial practices that are adopted by students. Suggestions for

organized educational courses aimed that equip children with proper

money management skills were given and therefore financial literacy is

crucial to the education system.

II. Body

Herein, the results obtained by Saripada, et al. reinforce the

importance of financial education in the letting students’ behavior with

respect to spending, saving and saving controlled. In doing so, it helps

schools raise responsible consumers among students who will grow up

to be capable of making wise financial decisions. This study

complements the understanding that financial illiteracy is detrimental

not only to an individual’s well-being but must also contribute to

disturbing the economic balance by emphasizing developing the

financial abilities of the young people.

III. Summary of findings

 Saripada et al. (2024) make a case for the integration of financial

education into school programs by revealing the relationship between

responsible consumption behaviors of senior high school students and

their financial literacy levels. Their findings indicate that financial

behaviors are positively influenced by financial literacy. Nevertheless,

the findings might be biased since it focuses on one particular school

and does not take into consideration the effects of such teaching in the

future.

IV. Research Gap

To comprehend the impact of financial literacy on making

decisions over time, subsequent research should examine the roles of

social class in both financial literacy and spending, the impact of

different financial literacy programs, and include studies across

extended time periods.

I. Introduction

According to Somcio (2019), measured the levels of financial

literacy of private senior high school students in Bacolod City. This

specific research takes into consideration saving, spending as well as

financial literacy and highlights the significance of the relationships

between them. It is evident that students, who possess such skills,

tend to behave more responsibly in terms of saving and spending

which further establishes the correlation amongst such financial

activities.

II. Body

Somcio believes that there is a need for financial education and

suggests that families and schools should assist parents in modeling

appropriate behaviors by engaging in teaching children money

management. Students are given a better understanding of sound

financial concepts both at home and in school; it is more probable that

they will develop such behaviors that are beneficial in the long run. The

study extends the comprehension of financial literacy as an imperative

aspect of education for the young by stressing that financial

management education equips the student with skills useful in

controlling the financial destiny of the individual.

III. Summary of findings

This research, as well as others, asserts that financial literacy is

an important factor, especially among high school seniors because of

its clear connection to responsible behavior exhibited by individuals.

The findings of the study indicate that responsible behaviors such as

impulsive buying can be taught by training the individual in financial

affairs. It deals with the financial literacy of Bacolod City private school

students but excludes public school students and other income-

heterogeneous population groups.

 Research Gap

More research is necessary in this regard to bridge these gaps

and help in more inclusive financial literacy programs. Besides, further

studies whose objective is to determine the longitudinal issues will

certainly help in understanding better the impacts of financial literacy

on the financial behaviors of students over time.

FOREIGN LITERATURE

According to Lusardi and Messy (2023), in their article titled

"The Importance of Financial Literacy and Its Impact on Financial

Wellbeing", published in the Journal of Financial Literacy and Wellbeing,

present a study on the imperatives of financial literacy. They contend

that this translates into a better understanding of financial products,

better budgeting practices, and better management of risk which

eventually guarantees a better financial outlook.

In the opinion of Lusardi and Messy financial literacy is more than

just a set of skills, it is integrally connected to the empowerment of the

people in their finances. Their study findings suggested that the people

with financial literacy were more likely to make better decisions which

in turn positively affected the financial outcome and the confidence in

the personal finance management. The report supports initiatives

aimed at enhancing people’s financial literacy irrespective of their ages

and also calls for the application of financial education in both formal

schooling and informal learning.

The deleterious effects financial illiteracy can have on one’s

quality of life are indeed well documented as noted by Lusardi and

Messy (2023) who argue that with knowledge comes better decision

making and the ability to withstand financial shocks. In order to

facilitate good practice in the control of finances, then extensive

financial education is advocated for. On the other hand, the current

study assumes a one-size-fits-all approach to the public without

considering individual or demographic determinants of financial

literacy such as age or income and level of education. It also does not

consider the sustainability of financial literacy projects. A more

comprehensive approach to funding research on financial literacy is

decline the primary aim of the project and seek to understand how

patterns of financial literacy change over time in different populations.

The importance of children’s financial literacy cannot be

undermined if one is to ensure that they have proper investments.

According to the research done by Bernheim and Garrett (2021),

more extensive financial literacy – where knowledge on investing is

particularly stressed – has significantly enhanced high school students’

decision-making capacities in relation to finance. This is achieved by

allowing pupils to take positive but calculated risks and cultivating

prudent saving habits amongst the students, which in turn improves

the financial results of the programs.

There are various studies that have shown that the avoidance of

such irresponsible financial behavior is related to financial education

where such education is directed towards the students. Such studies

indicate that such courses designed ensure that children are equipped

with proper skills and knowledge that will mitigate their financial

challenges when they come.

While they have helped in shedding light on the role of financial

education, studies done so far disregards major factors like age,

economic level, and educational level that may hinder the purpose

achieved. This fact might render some student groups inaccessible to

some relevant tools on financial literacy. Customized approaches

should be taken, on which social factors play a fundamental role.

Furthermore, most studies do not seem to include a follow-up that

investigates the outcome of such interventions on people, especially

their investing behavior or financial health, many years after the

education is given. Even current investigations do not take into

account the setting of the financial education, for example, which of

the public or private schools and what resources are there. Closing
these gaps would clarify how investment awareness affects the

spending behavior of the young ones and the overall control of

finances.

REFERENCES

Lusardi, A., & Messy, F. (2023). The importance of financial literacy and

its impact on financial wellbeing. Journal of Financial Literacy and

Wellbeing, 1(1), 1–11. https://doi.org/10.1017/flw.2023.8

Bernheim, D. B., & Garrett, D. M., (2021). “The Impact of Financial

Education on Investment Behavior.” (n.d.). The Journal of Economic

Perspectives, 2021.

Somcio, A. (2019). Financial Literacy of Senior High School Students in

Bacolod City. Usls.

https://www.academia.edu/39729084/Financial_Literacy_of_Senior_Hig

h_School_Students_in_Bacolod_City?form=MG0AV3

Saripada,N. (2024). Financial Literacy and Spending Habits among

Senior Highschool Students. Carlos P. Garcia Senior High School.