thesis about financial literacy in the philippines

Financial Inclusion and the Role of Financial Literacy in the Philippines

International Journal of Economics and Finance 15(6), 2023. https://doi.org/10.5539/ijef.v15n6p27

17 Pages Posted: 15 May 2023

Mary Grace Agner

University of Asia and the Pacific

Jared Martin U. Desello

Japan University of Economics

Date Written: May 10, 2023

Financial inclusion is increasingly seen as a key enabler of various development objectives. While not explicitly one of the UN Sustainable Development Goals (SDGs), financial inclusion is recognized as an important enabler for them. The Philippine central bank—the Bangko Sentral ng Pilipinas (BSP)—has even identified financial inclusion as a “national development agenda” that requires a conscious effort by various sectors to accelerate and enable its societal benefits. This paper studies the relationship between financial literacy and financial inclusion in the Philippines using data gathered from the 2019 Financial Inclusion Survey (FIS). We apply ownership of financial account and use of financial services as indicators of financial inclusion. Based on the results, financial literacy is a positive driver of financial inclusion. We calculated that a one-standard-deviation increase in financial literacy scores increased the likelihood of holding at least one account by 3.7 to 4.2 percentage points. On the other hand, a one-point increase in financial literacy scores improved the likelihood of availing of a financial service by 4.9 to 6.0 percentage points. The other drivers of owning at least one formal account and availing of financial services are age, gender, employment status, awareness of BSP’s programs, income above 40,000 PHP, and being the main household financial decision-maker. This paper aims to promote BSP’s agenda to bridge the financial inclusion gap and raise financial literacy levels in the country. With this study, the authors second BSP’s advocacy that financial inclusion is one of the instruments to attain sustainable and equitable development in the Philippines.

Keywords: financial inclusion, financial literacy, Philippines, probit regression

JEL Classification: D14, G53, O16

Suggested Citation: Suggested Citation

Mary Grace Agner (Contact Author)

University of asia and the pacific ( email ).

Manila Philippines

Japan University of Economics ( email )

3-chōme-10 Gojō Dazaifu, Fukuoka 818-0125 Japan

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• DOI: 10.5539/ijef.v15n6p27
• Corpus ID: 258650815

Financial Inclusion and the Role of Financial Literacy in the Philippines

• Jared Martin U. Desello , Mary Grace R. Agner
• Published in International Journal of… 10 May 2023

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2 Citations

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Financial Inclusion and the Role of Financial Literacy in the Philippines

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Financial literacy positively influences financial inclusion in the Philippines, enhancing economic well-being. It correlates with increased account ownership and usage of financial services, benefiting households in Metro Manila.

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Financial Literacy Challenges: The Case of Filipino Public-School Teachers

2021, JURNAL APLIKASI MANAJEMEN

This study analyzed the Philippine public school teachers' financial literacy challenges. The data and results were gathered through online survey questionnaires and focused group discussions conducted in the school year 2019-2020. Twelve participants contributed to the FGD, while a total of 325 teacher respondents answered the online survey questionnaires. The results showed that the majority of the public-school teachers are struggling financially. That results in a controlled and limited financial lifestyle. Moreover, teachers unconsciously practice informal debt, which causes uncontrolled debt. Without proper knowledge and education to financial literacy, borrowing money becomes a lifestyle of every teacher in the country. Based on the findings, a financial literacy program must be included in every in-service training or division-wide teachers' mass gathering. The financial literacy program may be implemented by all participating schools where the study was conducted. F...

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The study analyzed the Philippine public school teachers' views on financial literacy. The study utilized qualitative and quantitative data to answer the established research purpose. The present study used a mixed method, particularly the parallel analysis mixed method. In this method, the researcher combined both qualitative and quantitative research techniques. Based on the results, teachers don't keep records and only know how much they received and spent during a month. They also need to improve their financial understanding, education, and literacy to invest and save appropriately since they are interested in forming their financial targets and personal and current financial plan. Most of them have debts from different lending companies. Most of them need an existing financial plan, and they need to possess proper financial understanding. They only know the shallow reasons for saving. They consider themselves financially literate if they receive their paycheck and pay their monthly responsibilities. In the eyes of public school teachers in the Philippines, financial literacy has money. It is highly recommended to study this matter further and focus more on finding the best strategies, implementations, and practices to improve the financial literacy of public school teachers.

Journal of Management, Economics, and Industrial Organization

Cyrus P Casingal

To be fully equipped with knowledge and understanding about the basic concept of financial literacy is important. It gives individuals an advantage on carefully and properly managing their financial budget. The present study used mixed method, particularly convergent parallel mixed method. In this method, the researchers combined both qualitative and quantitative research techniques. In the survey, respondents answered questions through interviews and questionnaires. Focus group discussion sessions also contributed in gathering the data. For the instruments to be both reliable and valid, questions were constructed and validated by experts. The collected data analyzed the financial understanding of the public-school teachers. It particularly revolved around the financial literacy status of public-school teachers. There are two major concerns that public school teachers face about their current financial status and challenges. First, they are not satisfied with their current financial...

IJMRAP Editor

Being one of the most influential people in our society, teachers who are dutifully mandated to improve students academically are also expected to impact many aspects of people's lives, such as becoming financially literate. However, Teachers are said to lack financial literacy. This is the very premise of the conduct of this study. This Quantitative Research employed a Descriptive-Correlational Research Design. It involved 153 elementary teachers in Narra del Norte District, Palawan. The respondents were selected using a simple random sampling technique. A self-completed questionnaire was used to collect the needed data. The results showed that teachers' level of financial literacy is moderate. More so, it revealed that the most substantial influence on teachers' financial condition came from the costs associated with reporting to and performing their professional duties. There is a moderate relationship between the teachers' financial literacy level and the factors affecting their finances. There is an association between financial literacy level and demographic profileposition and attendance to financial literacy training. While teachers' reactions to the positive financial literacy indicators that might be summed up as financial knowledge were highly translated, their responses to the negative signs were somewhat in the reverse direction. This would imply that their literacy levels were lower than they first appeared to be. Furthermore, teachers' financial literacy is affected by or vice versa by the same things that affect their finances. Moreover, the teachers' position and participation in financial literacy training may raise their level of financial literacy. However, their sex, marital status, number of dependents, pay, and other sources of money may not necessarily have an impact.

Psychology and Education: A Multidisciplinary Journal

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The teaching profession is known to be one of the less-paid professions in the Philippines. Teachers who have plenty of work and responsibilities become even more challenged on how they will effectively and efficiently divide and utilize their remaining salaries for their needs and their families as a whole. In this case, an enhancement program should have been designed and implemented to help and guide teachers and administrators in managing their finances well. Thus, this thesis entitled: Financial Literacy of Teachers and School Heads in the Division of Marinduque: Basis for Financial Enhancement Program.Specifically, this study sought to answer the following questions: (1) What is the level of financial literacy of teachers and school heads in the division of Marinduque?; (2) Are there any significant differences in the level of financial literacy between teachers and school heads in the division of Marinduque?; (3) How teachers and school heads in the division of Marinduque are categorized in terms of their level of financial literacy?; (4) What Enhancement Training Program could be designed to develop and improve financial literacy among teachers and school heads in the division of Marinduque? The researcher used quantitative, descriptive, and comparative research methods to gather information about the conditions and situations of the variables for the investigation through the mean score, mean percentage score, standard deviation, and t-test for independent sample analysis. Based the data gathered in terms of the problem, the following are the significant findings:The level of financial literacy of teachers and school heads are both low, with a mean score 0f 2.36 and 2.38 and a standard deviation of 0.61 and 0.63, respectively.Moreover, this study revealed no significant difference between the level of financial literacy between teachers and school heads at 0.01 level of significance. Hence, the null hypothesis is accepted.Furthermore, from the 267 teacher respondents, only 78 or 29.21 percent are classified as having a high level of financial literacy as they are both high on financial knowledge and financial behavior. On the other hand, out of 44 school heads, only 20 or 45.45 percent is considered as high on both components of financial literacy.In line with the results, teachers and school heads also suggested and recommended some concerns regarding the focus of this study, such as the conduct of financial training, seminars, programs, workshops, and orientations, increase and provisions on the salary of teachers, and consultation and assessment of teachers' financial literacy.Based on the preceding discussions, assessment, and findings of this study, the researcher, as his contribution, designed a program as a form of training for teachers and school heads that could be incorporated in the Learning Action Cell (LAC) program of each school in the division. Moreover, the following recommendations were formulated.For DepEd officialsprogram heads, may design or craft training programs that will help and enhance teachers' and school head financial knowledge and financial behavior on the different dimensions of financial literacy. Also, they may conduct these training, seminar, workshop, and orientation programs on a consistently so that school heads and teachers, especially the newly-hired ones, are already aware and equipped with the concepts and best practices of financial aspects as they enter the Department.Teachers and school heads, they may adapt and practice the suggested formula or rule of income allocation of a known financial adviser or devise and make use of their strategy for managing your finances well.For future researchers, similar studies may also be conducted to assess the personal financial management of teachers, school heads, and any other officials of the Department.

This study aimed to determine the personal financial management practices and lived experiences of teachers in the Third Congressional District of Quezon. Data were gathered using a research-made questionnaire to determine the financial management practices of the 375 teacher-respondents, identified through purposive sampling, and the interview was conducted to determine their lived personal financial experiences. SPSS statistical measurements such as frequency, percentage, and mean were utilized to measure and interpret the study's findings. The findings revealed that public elementary school teachers more often practiced budgeting, borrowing, and investing while they often practiced saving. The results imply that knowledge in managing their finances was low in saving, that for many, regularly saving is not a habit, and that its underlying cause does not have enough excess money after expenses. These indicate that teachers are unaware of the importance of saving money, for their short-term or longterm goals. Their inability to manage their money forced many of them into a situation where they could hardly save money for future use. In terms of investing, their lack of awareness and understanding of these financial instruments is limiting their potential to acquire passive income, build up wealth, and secure a comfortable retirement life in the future. The results of the study revealed that there is no significant difference in the personal financial management of teachers when grouped according to sex, teaching position, and income. On the other hand, there is a significant difference between the personal financial management practices of teachers when grouped according to age, civil status, length of service, and assets. The findings of this research suggest that the public school teacher's respondents need to enhance their personal financial management practices in budgeting, saving, investing, and borrowing. Furthermore, the results of the interview revealed that the majority of them have unstable finances that lead to experiencing financial crises most of the time because of emergencies and unforeseen financial situations. The majority say that budgeting is the most effective way to remedy the shortage in finances, and they cannot save a fixed amount of money because of a shortage of income. Financial planning is also essential for most of them, although there are instances the majority of them file for loans because of unexpected expenditures which are out of their control. They believe that the best way to cope with loans is to establish a business to gain extra income and avoid filing for loans. In line with the findings and conclusions obtained from the study, it is recommended that financial literacy programs through trainings and seminars for teachers may be provided to help widen their knowledge in their financial management and for them to manage their finances according to their priorities.

International Journal of Research Publications

Janice U Y Nalaza - Costuna

This study aimed to determine the level of financial literacy and capability of teachers in terms of budgeting, saving, investing, and spending; to find the significant relationship between the financial literacy and capability of the teachers and to identify which of the moderating variables influenced singly or in combination the financial capability. The study utilized the descriptive correlational research design and an adopted questionnaire of Paceno and Laganhon (2022) to gather the necessary data to answer the specific questions of the study. Purposive universal sampling was employed to determine the teachers as respondents from North 1 District of Gingoog City Division, School Year 2022-2023. Mean and SD were used to determine the level of financial literacy and capability. Pearson Products Moment Correlation Coefficient was used to find the significant relationship and multiple linear regression was used to determine the moderating variables that influenced singly and in combination with the financial capability of teachers. Results revealed that the level of Financial Literacy in terms of Spending is Very Highly Observed, in terms of Budgeting, Saving, Investing, and Spending were Highly Observed. Moreover, the teachers’ Financial Literacy and Capability level in terms of Budgeting, Saving, and Investing show a Strong Positive Correlation. A Moderate Positive Correlation in terms of Financial Literacy on Spending. It can be concluded that the teachers of North 1 District are Financially Literate and Capable. It can be recommended that having a family structure and a spouse having a career or work, teachers will have better financial capability. Keywords: Financial Literacy, Financial Capability, Money Management

Siddhartha Journal of Academics

Ujjwal Adhikari

This research intends to investigate how financial literacy affects the financial behavior of schoollevel teachers in Kapilvastu district. This context for research has been generated to answer whether the literacy is ultimate cause of financial practice behavior. Primary data-based descriptive research through close-ended structured questionnaire data was collected among school-level teachers in Kapilvastu, Nepal. The regression analysis was used to explore the relationship between independent variables and dependent variables. The relationship between financial literacy and financial behavior is significant. This paper showed that financial literacy acts as the cause of financial behavior. The study provided the proper ideas to policymakers on the extension of financial literacy via schoollevel curriculum.

Management Science Letters

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Financial literacy and the gains from financial experience learning by doing

The purpose of this study is to determine whether a UP student_s exposure to the financial market and his acquired financial experience is associated with financial literacy. The study takes into account a student_s personal background, family socioeconomic background, and financial socialization to...

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FINANCIAL LITERACY CHALLENGES: THE CASE OF FILIPINO PUBLIC-SCHOOL TEACHERS

• December 2021
• Jurnal Aplikasi Manajemen 19(4):703-714
• 19(4):703-714

• Philippine Normal University
• This person is not on ResearchGate, or hasn't claimed this research yet.

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