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INTRODUCTION

Background of the Study

Financial literacy is the confluence of financial, credit and debt management and

the knowledge that is necessary to make financially responsible decisions (Kristina Zucchi,

2018). The main reason why people pore over materials on financial literacy is basically to

be able to provide more than what they can give out now to themselves and their family.

When a person is financially literate, one can maximize his monthly salary and be able to

make ends meet without the need get into debt. By being able to fully understand and grasp

the concept of financial literacy, one has the chance of achieving financial freedom in no

time. Investopedia defines financial literacy as the education and understanding of the

various financial areas including the management of personal finance, money and

investing.

A person’s financial planning may be affected by the basic needs and wants of daily

living. Spending and saving decisions will determine the resources available for future

financial security. Some people people spend their entire income or purchase insurance to

achieve a degree of financial security. These spending habits reflect individual and family

values and goals.

An individual’s manner towards spending and saving is structured to his or her

personal background and experience. According to Samantha Villanueva (2017), spending

and saving patterns of individuals are greatly influenced by their upbringing and social

factors such as civil status, maturity and gender.

There are a lot of differences in the financial perception, expectations, and

decisions of people with regards to spending and it varies with the kind of lifestyle an
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individual has. The expenses of being married is lower compared to the cost of those who

are single; It states that marriage has a way of making people grow up and think about the

future, hanging out with friends and crawling stores for clothes are replaced by saving for

future purposes. (Riper, T.V. 2012) One of the major factors that influence the decision-

making behavior of an individual is gender, men and women have different motives,

perspectives and considerations. In terms of shopping, men tend to follow a utilitarian,

more logic-based approach which means that they are shopping to get something done

while women are mostly hedonic shoppers which means that they are shopping because

they love to; resulting to an increase in their expenses.

A young individual prioritizes socializing and travelling over a more mature

individual’s desire to save in order to supply his basic needs and focuses on investing for

his own benefit. As the size of a household increases, the amount of money spent on goods

and services increases. With the addition of more children, a family’s opportunity to put

money into savings decreases which makes the funds originally allocated to a savings

account now go to buy more recreation items and needs of the kids.

Abhijeet Pratap (2017) stated that as people age, their needs and spending priorities

change. As studied by Celia Hayhoe et al. (2005), gender was more influential in predicting

the financial practices, with women employing a greater number of financial practices. As

stated by Srinivasan, et al. (2015) married people tend to spend more on luxury products

than their single counterparts. People with a larger household or a greater number of

dependents have significantly high expenditures compared to those with less dependents,

as indicated by Tshediso Sekhampu (2013).

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Improving the ability to understand finance has become an important focus of state-

run educational programs in several countries. The importance of financial education has

grown in recent years as a result of financial market developments and demographic,

economic and policy changes. More sophisticated financial markets and a greater variety

of credit savings instruments, together with increased life expectancy, hold important

consequences for people saving or investing for retirement, for the users of credit, and all

other consumers (OECD, 2006). In addition, financial literacy is and financial education

have been found to be strongly positively associated with household wealth (Behrman,

Mitchell, & Bravo, 2010). Although only a few financial education programs have so far

been evaluated, the results are encouraging since they have been found to be reasonably

effective. However, academic analyses provided ambiguous results, finding no firm

evidence of the measurable success of financial education when it comes to improving

participants’ financial well-being (Cole & Shastry, 2008; Willis, 2009).

This study has been undertaken to analyze the relationships between the expenses

and savings of USLS Teachers in accordance with their socio-demographic profile. It also

aims to determine if there is a difference in their expenses and savings, collectively. The

main rationale behind the study is to establish the impact of different factors in the teachers’

habit when engaging in financial activities and to help teachers assess their habits when it

comes to spending and saving.

The researchers decided to tackle this topic because it gives the researchers insight

with regards to the financial management of teachers and how they allocate for expenses

and savings. As students in the field of Business, it is imperative for the researchers to

determine the financial literacy of the participants. The information would be timely for
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the Academe in determining whether or not there is a need for improvement in the

instructors’ habit towards personal financial management.

The study does not only aid the teachers but inclusively the whole institution –

authorities, employees and students. Educators do not only impact students’ academic

knowledge but also contribute in the honing of skills – in this case, financial literacy.

Knowledge in this subject matter lays a foundation for the students to build strong money

habits early on and avoid lifelong money struggles; and is of great importance to the future

of the economy.

Statement of the Problem

Generally, the study aims to determine the financial literacy, compare and find out

the relationship between the expenses and savings of USLS teachers in relation to their

socio-demographic profile. Specifically, this study attempts to answer the following

specific questions:

1. What is the socio-demographic profile of participants in terms of:

a. Civil status

b. Gender

c. Age Group

d. Number of dependents

e. Monthly income range

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2. What other sources of income do the participants have?

3. How much is the monthly expenses of the participants?

4. What is the difference in the monthly expenses of USLS teachers when grouped according

to their:

a. Civil status

b. Gender

c. Age group

d. Number of dependents

e. Monthly income range

5. Is there a relationship in the expenditures of USLS teachers in accordance to their:

a. Age group

b. Number of dependents

c. Monthly income range

6. How much is the monthly savings of the participants?

7. What is the difference in the amount of savings of USLS teachers when grouped according

to their:

a. Civil status

b. Gender

c. Age group

d. Number of dependents

e. Income range
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8. Is there a relationship in the savings of USLS Teachers in accordance to their:

a. Age group

b. Number of dependents

c. Income range

9. Are the teachers financially literate when grouped according to their:

a. Civil status

b. Age group

Theoretical Framework

This study is based on three (3) theories that serves as its framework: The Personal

Financial Planning Theory, the Life Cycle Theory and the Permanent Income Theory.

Considering that the study aims to determine the financial literacy, differences and

relationship of the expenses and savings of Select Full-time Liceo de La Salle Teachers to

their socio-demographics, the researchers decided that the Personal Financial Planning

Theory, Life Cycle Theory and Permanent Income Theory will provide well-built

foundations for the study. They will allow in-depth grasp of the differences and association

of variables that impact the financial activities of the participants. The said theories involve

the influences of different variables on the amount an individual spends and saves.

The first theory is the Personal Financial Planning Theory propagated by Michael

A. Dalton. It is a form of theoretical planning involving an active plan to reach financial

goals. It takes hold of financial planning as the process that takes into account the person’s
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financial status, socio-economic and legal environments, and overall state of financial

literacy (Warschauer, 2002).

The theory may be connected to the purpose of this paper which is to determine the

influence of civil status and number of dependent on an individual’s savings and

expenditures. It also tackles the subject of financial literacy as an important factor when it

comes to financial planning. According to Overton (2007), financial planning takes hold

of an individual’s social standing and spending capacity. Status, preferences and

responsibilities are factors influencing one’s inclination towards spending.

The Life Cycle Theory, which was developed by Franco Modigliani together with

his student Richard Brumberg provides groundwork for this study. The theory pertains to

the spending and saving habits of people over the course of a lifetime. It presumes that

individuals plan their spending over their lifetimes, taking into account their future income.

Individuals intend to even out their consumption expenditures in the best possible manner

over their existence, doing so by accumulating when they earn and dis-saving when they

are retired.

Younger people tend to have consumption needs that exceed their income. Their

needs tend to be mainly for housing and education, and therefore they have little savings.

In middle age, earnings generally rise, enabling debts accumulated earlier in life to be paid

off and savings to be accumulated. Finally, in retirement, incomes decline and individuals

consume out of previously accumulated savings.

The Permanent Income Theory as defined by Investopedia is a theory of consumer

spending which states that people will spend money at a level consistent with their

expected long term average income. The level of expected long term income then becomes
 8

thought of as the level of "permanent" income that can be safely spent. This theory was

developed and formulated by Milton Friedman in 1957. The theory implies that changes in

consumption behavior are not predictable, because they are based on individual

expectations. The liquidity of the individual can play a role in their future income

expectations. An individual with no assets may already be in the habit of spending without

regard to their income, current or future.

How select full time Liceo

de La Salle teachers spend
 As for civil status, the
and save:
expenses of being
married are lower
 Based on their civil
compared to the cost of
status and number of
those who are single.
dependents,
 As for the number of
 Integrates an
Personal dependents, those with
individuals’ civil status
a larger household or a
Financial on number of dependent
greater number of
as influencer to financial
Planning Theory dependents have
activities.
significantly high
expenditures compared
 Structure expenses and to those with fewer
savings according to
dependents
personal background,
experience and financial
literacy.
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 An increase in life-time
resources lead to
In terms of age, wealth
proportionate increases accumulation is low
Life cycle Theory in consumption in all during youth and old
periods of life. age and high during
middle age.
 Posits that the
percentage that
individuals allocated to
savings would grow as
their incomes rose.

 It supposes that a
 Permanent income as person's consumption
an independent at a point in time is
variable determining determined not just by
Permanent their current income
consumption.
Income Theory but also by their
 Consumption expected income in
expenditures (personal future years.
consumer spending)
are linked to  The increases and
disposable income. decrease in income
that people see as
temporary have little
effect on their
Figure 1.1 Schematic Diagram of the Theoretical
consumption
Framework
expenditures.
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Conceptual Framework

This study aims to determine the financial literacy; compare and determine the

relationship between the expenditures and savings of Select Full-time Liceo de La Salle

Teachers in relation to their socio-demographic profile. The results of the study would help

the participants understand the trend in their savings and expenditures. Knowledge with

regards to the influence on financial activities on teachers would aid in determining the

programs and seminars that would improve their financial literacy.

In context of Finance, expenditures are the payment of cash or cash-equivalents for

goods or services. (Business Dictionary). It may also be defined as the spending of money

on something, or the amount that is spent on products availed. According to Investopedia,

the Keynesian economics defines savings as what a person has left over when the cost of

consumer expenditure is subtracted from the amount of disposable income earned in a

given period of time.

In this study, civil status, age group, gender, number of dependents and monthly

income range is assumed to affect the expenses and savings of the participants. The

teachers’ civil status is taken into consideration when determining the factors that affect

their financial activities.

Marriage is said to bring about lesser expenses as it brings about growth among

individuals and are less likely to spend on luxurious items or activities compared to non-

married people.

Age group is considered a factor affecting the savings and expenditures. It is a

determining factor in the financial maturity of an individual – wherein people from older

age groups are more likely to spend less compared to those from the younger age groups.
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Furthermore, the gender of the participants is taken into consideration since it

shows their upbringing as individuals. Men and women have different needs, wants and

demands and would thus affect their expenditures and savings. In terms of spending, men

are said to most likely be more logical than women.

Additionally, the participants’ number of dependents will also be taken into

account, as the number of dependents would contribute to the amount of money set aside

for the expenses and savings. With an increase in the number of dependents allows a lesser

amount of money to be put into savings.

The variables that influence the expenditures and savings of the participants will be

differentiated. Married, single, divorced and widowed individuals’ expenses and savings

will be compared with one another. In the words of Elizabeth Gorman (2000), marital status

poses a great impact on the attitudes of individuals towards finances.

Expenditures and savings of individuals from the Silent Generation (Born on or

before 1945), Baby Boomers (1946-1964), Generation x (1965-1976), Millennial (1977-

1995) and Centennials (1996-present) will be collated with each other.

The differences between the amount of expenses and savings of male and female

participants will be determined. From the study of Berggren and Gonzalez (2010), though

women buy more than men, they are more skillful when it comes to financial management

as women are less likely to hold big amount for loan.

The variation in the expenditures and savings would also be determined as there is

surely a difference in the amount of money spent by participants that have lesser

dependents than those who have more.

Income range on a monthly basis would also be a point for consideration in the
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study, as the capacity to save and spend would be reliant on the amount received monthly

by the participant.

This study will not only analyze the differences in the amount of savings and

expenditures according to socio-demographic groups but also associate the relationship of

one’s savings and expenditures to respective socio-demographics – age, number of

dependents and monthly income range.

Three of the five socio-demographics would be correlated as these are the variables

that have varying measurements or extent; as there is no level to one’s civil status and

gender. The researchers aim to determine whether or not there is an association between

one’s financial activities and their respective socio-demographics.

Lastly, the financial literacy rate of the participants would be assessed. The number

of teachers that meet the requirement of being financially literate will be determined

according to their age and as a whole.

a. Differences in
Factors affecting the their savings and
savings and expenses of expenditures
Select Full-time Liceo based on their
De La Salle teachers: socio
a. Civil status demographics.
b. Age group a. Savings b. The relationship
c. Gender of their savings
b. Expenditures and expenditures
d. Number of
to their socio-
dependents demographics
e. Income range
f. Other sources of
c. Financial Literacy
income Rate of the
participants
according to age
and collectively
Figure 1.2 Schematic Diagram of the Conceptual Framework
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Hypotheses

In connection with the aforementioned research questions, the following

hypotheses are set forth:

Ho 1. There is no difference in the expenses of USLS teachers when grouped according to

their:

a. Civil status

b. Gender

c. Age group

d. Number of dependents

e. Monthly income range

Ho 2. There is no relationship in the expenditures of USLS teachers and their:

a. Age group

b. Number of dependents

c. Monthly income range

Ho 3. There is no difference in the savings of teachers when grouped according to their:

a. Civil status

b. Gender

c. Age group

d. Number of dependents

e. Monthly income range

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Ho 4. There is no relationship between the amount of savings of USLS teachers and their:

a. Age group

b. Number of dependents

c. Monthly income range

Ho 5. Teachers are not financially literate:

a. Collectively

b. According to age group

Definition of Terms

Age Group. Conceptually, this term is based on Merriam Webster Dictionary, it

is a segment of a population that is of approximately the same age or is within a

specified range of ages.

Operationally, it is one of the socio-demographic profile taken into

consideration as a factor affecting the financial activities of the participants. Age

groups considered in this study are the Silent Generation (Born on or before 1945),

Baby Boomers (1946-1964), Generation X (1965-1976), Millennial (1977-1995)

and the Centennials (1996-present).

Civil Status. Conceptually, according to the Student Health and Counseling

Program, it corresponds to a person's family situation. It can mean being single,

married, in a civil union, adopted, divorced, a member of a single-parent family, or

any form of family ties or affinity with another person.

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Operationally, it is one of the socio-demographic profile taken into

consideration as a factor affecting the financial activities of the participants. The

civil statuses taken into account in this study are married, single, legally separated,

widowed and single-parent.

Dependents. Conceptually, according to the Business Dictionary, it is a person

who relies on someone else for support and qualifies as a taxpayer's dependent.

Operationally, it is one of the socio-demographic profile taken into

consideration as a factor affecting the financial activities of the participants. It is

the number of individuals that depends on the participants' income, such as

scholars, children, parents, extended family and the like.

Expenditures. Conceptually, this is defined by Webster Dictionary as the act or

process of expending.

Operationally, the money that the selected Liceo De La Salle

teachers spend every month to satisfy their needs and wants.

Financial Activity. Conceptually, financial activities involve any transactions or

initiatives

undertaken by a business to further the fulfillment of economic goals. It may

include buying and selling of products, issuing stocks or bonds or other business

activities with specific monetary objectives according to the Business Dictionary.

Operationally, financial activity is any actions of the participants

that involve the spending or saving of monetary funds.

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Financial Decisions. Conceptually, these are decisions concerning the liabilities and

stockholders’ equity side of the firm’s balance sheet, such as a decision to issue

bonds (ADVFN, 1999-2018).

Operationally, in this study, financial decisions are the choices the

participants make with regards to spending and saving.

Financial Experience. Conceptually, it is defined as the longevity or length of

experience in a given occupation or field bringing about skill and proficiency

(McDaniel, et al., 1998).

Operationally, it is the length of experience when it comes to

handling finances brought about by age.

Financial Literacy. Conceptually, this term is based on Investopedia, it is the education

and understanding of various financial areas including topics related to managing

personal finance, money and investing.

Operationally, financial literacy is the participant’s manner or state

of executing their saving and spending activities. The study would base its

definition on Paula Plant, an award-winning personal financial journalist of

Teachers Insurance and Annuity Association of America (TIAA), wherein a person

could be called financially literate if he or she puts at least 20% of his or her monthly

income in to savings.

Financial Planning. Conceptually, it is the process of estimating the capital required

and determining its competition. It is the process of framing financial policies in

relation to procurement, investment and administration of funds of an enterprise

according to Management Study Guide.

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Operationally, these are the techniques or methods used by the

teachers to determine the way they allocate their money – either for savings or for

expenses, influenced by an individual’s background.

Full-time teachers. Conceptually, this term is based on the Glossary of Statistical, a

teacher employed for at least 90 percent of the normal or statutory number of hours

of work for a full-time teacher over a complete school year.

Operationally, it is a Liceo De La Salle teacher who only teaches or

works in University of St. La Salle and does not share their expertise to other

companies or institutions. The full-time teachers in this study are the 35 instructors

both from the college and senior high school departments that are teaching in Liceo.

Gender. Conceptually, this term is based on the Oxford Dictionary, it is either

of the two sexes (male and female), especially when considered with reference to

social and cultural differences rather than biological ones.

Operationally, it is one of the socio-demographic profile taken into

consideration as a factor affecting the financial activities of the participants. The

gender taken into consideration in this study is the ones assigned at birth, that being

male and female exclusively.

Income. Conceptually, according to Webster Dictionary, it is a gain or

recurrent benefit usually measured in money that derives from capital or labor

Operationally, the amount of money that the selected Liceo De La

Salle teachers receives from the accumulated teaching hours that they rendered for

a month.

Income from Other Sources. Conceptually, this is income incurred outside of work such
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as winnings from lotteries, properties, gifts, insurance, networking, personal

selling, and the like (Patel, 2012).

Operationally, this is the income incurred by the teachers

outside their teaching jobs and will be considered as overall monthly income when

determining the financial literacy of the participants.

Savings. Conceptually, according to Keynesian economics, are what a person

has left over when the cost of his or her consumer expenditure is subtracted from

the amount of disposable income as earned in a given period of time.

Operationally, it is the excess money from the monthly income of

the selected Liceo De La Salle teachers, which are put aside in banks and the like.

Socio-demographic profile. Conceptually, according to Merriam Dictionary, this is a

combination of social and demographic factors.

Operationally, the socio-demographic profile is considered

as the set of factors influencing the participants’ financial activities. This includes

the participants’ civil status, age, gender, income range and number of dependents.

Scope and Limitations

This study was conducted to determine the financial literacy of Full-time Senior

High School Teachers of the University of St. La Salle. It also aims to establish the

differences and relationship of the savings and expenditures of the participants to their

socio-demographic profile.
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This research is exclusive to select full-time Liceo de La Salle teachers for the first

semester of the Academic Year 2018 - 2019. The 37 respondents were determined through

Slovinn’s method. They were chosen through purposive sampling method.

For the instrument, the researchers will be providing questionnaires which will

serve as a survey material. Data gathering will be conducted for one week within the

campus grounds of the University of St. La Salle. The entire research study would be done

in duration of 3 months.

Furthermore, the main rationale behind the study is to establish the impact of

different factors in the teachers’ habit when engaging in financial activities and to help

teachers assess their habits when it comes to spending and saving. In addition, financial

literacy is found to have an effect on individual financial behavior.

This research described the teachers’ financial literacy based on the percentage of

their income put into savings. At least 20% of the monthly income to be put into savings

would be the indication of financial literacy. – limited ang sa tools for data analysis,

time, estimation

Significance of the Study

The study will be undertaken to find out the relationship of the given socio-

demographic profile to the savings and expenditures of the USLS teachers. The results of

the study will be a great benefit to the following:

Teachers. The data given would guide the teachers about the relationship between their

expenses and savings in accordance with their socio-demographic profile. This would help
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them determine the influence of their habit when engaging in financial activities. This study

will be able to widen their knowledge about proper ways of how they should be managing

the money that they are earning and will, be earning. With the help of this study, they will

be more aware if their behavior when it comes to spending and saving is appropriate when

it comes to considering their needs.

Students. This study aims to educate students on how they should manage their financial

activities. This will serve as their guide or reference and they can make ideas out of this

study and innovate it using their own.

College of Business and Accountancy (CBA) and the Academe. This study will help the

administration determine if the salary they are giving to the teachers are enough to sustain

their expenses and daily life. This study can serve as a basis in implementing an additional

amount of money for the salary of the teachers.

The Department of Education (DepEd) – Division of Bacolod City. This study will

provide awareness to the DepEd regarding the financial situation of teachers that they may

be able to provide evident solutions, programs, seminars or any means that may be able to

improve financial well-being of their educators.

Local Banks and Financial Institutions. This study would benefit any bank institutions

whereas they would have a knowledge whether to make a program engaging with the loans

for the teachers.

Philippine Economy. This study would provide an idea in the Philippine Economy

regarding the importance of ‘endogenizing’ financial knowledge which has an important

implications for welfare as well as policies intended to enhance levels of financial

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knowledge in the larger population. This study would also contribute to the economy and

help examine the impact of financial literacy on economic decision-making.

Government. This study will contribute data to the government to have an understanding

and idea about how the teachers spend their money with their expenditures and savings and

if the given salary for the teachers are enough to sustain their daily needs and expenditures.

Researchers. The outcome of this study would benefit the researchers whereas this study

may be one of the basis that a new theory in learning will arise. This study may serve as an

awareness of not only to the teachers and researchers but to everyone especially in dealing

with financial decision making. This study may also give an additional learning to the

researchers that they may be able to apply on how they will handle their finances and

decisions making in their lives.

Future researchers. This research study will be a useful reference for the researchers who

would plan to make any related study relating in any financial management topics. They

may also expand the coverage of the study into other cities or divisions and even throughout

the country.

REVIEW OF RELATED LITERATURE

This chapter presents a review and an exploration of the related literature which is

supported by local and foreign studies. The presentation is condensed such that only the

highlights of the studies are presented. The review further supports the investigation of the

financial literacy, differences and relationship of USLS-select full-time Liceo De La Salle

teachers’ savings and expenditures to their socio-demographic profile. It focuses on the

different studies, theories and practices to clearly understand the following variables: civil
 22

status, gender, age, number of dependents, and income range in relation to an individuals’

savings and expenditures, determining their overall financial literacy.

Financial Literacy in the Philippines

In the MasterCard index of Financial Literacy Survey 2013, Philippines has a 68%

overall financial literacy index with low levels of financial literacy from the demographic

of 30-year-olds who are married. Such situation is evident with marriage and increasing

family obligations, such as household expenses, education and financial commitments.

Based on the Philippine Financial Literacy Advocacy 2013 Report, most of the

Filipinos have good knowledge on financial concepts of spending, saving, investing, but

they lack in understanding the concept of healthy budgeting and inflation. More

importantly, the study showed that only 49% of Filipinos put money in bank accounts every

month. Among those who do, only save an average of 6% which is below the minimum

suggested 10%.

Financial Literacy of Professional and Pre-Service Teachers in the Philippines

As eloquently stated by Montalbo, et al. (2017), both professional and and pre-

service teachers have very low basic and sophisticated financial literacy skills. Thus,

financial literacy is common among educators which reflect their students’ financial

literacy skills and the overall economic condition of the majority of the Filipino people.

Curriculum inclusion of financial education to both basic and higher education is

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recommended to improve financial knowledge, behavior, attitudes among teachers and

students which, in turn, spells a better economic growth and development of the country.

In recent years, developed countries have become progressively more concerned

about the level of financial literacy of their citizens. Strong interest in improving financial

literacy has moved to the forefront of public policy concerns worldwide. It has become a

key priority for global policymakers who realize the effect that individual financial

decisions can have on national level as well as on a global scale.

Spending and Saving in Relation Financial Behavior

In today’s economy, consumers are faced with many consumers and business decisions

as well as teachers. Education for these decisions relies on the individual as well as the

family’s desire to use money effectively as a resource. Money can and often lead to

fulfillment and happiness, but sometimes it is mismanaged.

Many programs, policies, and products are designed to increase formal savings among

poor households have had only limited large-scale impact. In the Philippines, only 26

percent of adults use formal financial services and almost 80 percent do not have a deposit

savings account, despite an established banking system with robust consumer protection

regulation (Honohan, 2008; Philippines, 2009). The consequences can be significant.

Almost 40% of households report not having any cash on hand for emergencies and

unexpected expenses (Philippines, 2009).

A local study conducted among private and public teachers showed that spending and

saving patterns found out that the average total monthly spending of public school teachers

is 11,423.25 pesos and their expenses for the past six months is 68,173.78 pesos. Compared
 24

to the private school teachers which have an average monthly expense of 10,113.72 pesos

and the expenses during the past six months reached 34,6906.32 pesos. The results also

showed that the spending of the participants prioritized the following: basic commodities,

light education, water and medical care. Out of 100%, 88% of their participants said that

they are into loaning which is also used in their spending. Teachers avail loans from formal

lending institutions like GSIS, SSS, and PAG-IBIG. Around 200 - 7,500 pesos of the

participants salary goes to their loan payments.

Efforts in improving the financial well-being of an individual, family and society such

as teachers should give greater emphasis to aspects of financial behavior. Financial

behavior refers to ones practice of using a systematic financial management system, for

example a consistent savings plan through well thought and written plan with specific aims

(Titus et al., 1989). Good financial behavior is describe by having effective behavior such

as preparing financial record, documentation on the cash flow, planning expenses, paying

utility bills, controlling the usage of credit card as well as a savings plan (Gorham et al.,

1998). Prior research described how financial well-being of an individual is influenced by

his/ her financial behavior.

Civil Status in Relation to Savings and Expenditures

Economic theory predicts that in order to self-insure against the increase in background

risk, given that individuals want smooth consumption over the life-cycle, individuals will

increase their precautionary savings. Furthermore, the uncertainty may also affect

divorcing individuals’ demand for risky assets. Earlier studies are generally inconclusive,

and further analysis of the divorce effect on the individual saving rate and the proportion
 25

invested in risky assets. Financial behavior may, therefore, have macroeconomic

consequences and lead to inequalities in wealth accumulation between married and

divorced individuals. (Zetterdahl, n.d.).

Moreover, Devereux and Smith (1994) found that more risk sharing opportunities,

provided by marriage, may translate into less savings since there are other ways of handling

uncertainty. If the probability of divorce increases, this may then lead to increasing saving

rates. On the other hand, Mazzocco (2007) shows in his theoretical model that if marital

instability increases, it will consequently make saving while married riskier.

A number of studied have indicated that marriage may have a variety of positive effects

on the well-being of individuals and families, controlling for other sociodemographic

factors. These effects include better financial well-being, better health, longer life, higher

achievement of children, and higher earnings for married men (See a review by Waite,

1995; Waite & Gallagher, 2000). A recent study by Hirschl, Altobelli and Rank (2003)

further indicates that marriage enhanced the lifetime probability of affluence.

Marriage has a large effect on reducing the risk of poverty. A number of studie have

indicated that unmarried individuals and single-parent families are more likely to live in

poverty than their married counterparts (Blank, 1997; Furstemberg, 1990: Garfinkel &

McLanahan, 1986: U.S Bureau of the Census, 2001: White & Rogers, 2000). Compared to

married couples, unmarried people also save much lower portions of their income and

accumulate fewer assets. For example, several studies have indicated that married-couple

households have significantly higher wealth than other types of households (Waite, 1995:

Wilmoth & Koso 2002) and that marriage is associated with a higher probability of

attaining affluence over the life course when compared with none marriage (Hirschl,
 26

Altobelli and Rank (2003). The limited accumulation of assets in single-parent families has

been increasingly recognized as an important contributing factor to the high poverty rate

within this family type period lack of assets contribute not only to the low economic status

of single-parent families but, maybe more important, restrict their economic mobility (Cho,

1999; Rocha, 1997; Sherraden, 19991).

Through the analysis of data from the Health and Retirement Survey and the Panel

Study of Income Dynamics, Lupton and Smith (2003) find that married couples save

significantly more than other household types, an effect not fully explained by their higher

incomes nor the simple aggregation of two individuals’ wealth. Similarly, Seigel (1993)

reports that currently married older couples have higher median incomes and net worth

than older adults who were widowed, divorced, or never married. The study by Hao (1996)

also indicates that married families have grater wealth than other types of families and

marriage re-enforces the promoting effect of transfers on wealth. A number of marriage

also have a negative effect on family wealth (Hao, 1996)

Financial literacy means the ability to understand and analyze financial options,

planning for the future, and responding appropriately to the events. Having the ability has

the influence on the conditions of life and work and can be very helpful in anticipating the

future and increasing human income. Unfortunately, despite the importance of financial

literacy, research has shown that this ability among the people of the world, especially in

developing and under developed countries are not perfect and barriers such as the

complexity of financial life, the existence of many options when making decisions and

having not enough time and money to learn about personal finance issues, caused low

financial literacy of people in these communities (Vitt et al., 2000)

 27

The results revealed several important points. First, there is a positive relationship

between the age and variable of financial well-being and financial literacy, civil status and

gender, and the education level and financial well-being variable and financial literacy

variable. Second, a higher level of financial well-being is followed by financial literacy.

Third, higher financial literacy leads to less financial concerns. Finally, higher financial

well-being reduce financial concerns (Taft).

Regarding the relationship between these three variables and civil status; in the survey

by Joo and Grable (2004) the relationship between civil status and financial literacy and

financial literacy was demonstrated and it is stated that married individual are more

financial literate. This study show that married people are more financial literate, but he

relationship between civil status and financial literacy from the study, “The study of

University Professors’ financial Literacy” in Islamic Azad University by Shahnaz

Nayebzadeh, Marzieh Kalantari Taft and Mohammad Mir Mohammadi Sadrabadi.

Regarding the relationship between civil status and financial literacy, (Volpe et al. (2002)

has proved the relationship of this two variable and stated that married enjoy a higher

financial literacy.

Gender in Relation to Personal Finance

All of the conceptual definition of financial literacy and the gender roles that have

been formed in the society play a significant role. The gap between men and women within

the United States seems to be better explained by the household decision-making roles

allocated by the more relative levels of education than by gender (Fonseca, Mullen,

Zamaro, & Zissimopoulos, 2012). Within the United States, gender roles might have an
 28

even greater impact on the financial literacy levels of men and women than previously

expected with men usually making the household financial decisions and thereby acquiring

the necessary knowledge earlier, while women usually specialize in other household

functions (Fonseca et al., 2012).

The first one to make observation that there were noticeable differences between the

financial literacy levels of male and female was Chen and Volpe. In the survey that they

had conducted to a 924 students, female participants scored 51% of correct responses

whereas male participants scored 57% on the survey covering various financial topics. This

pattern of male participants scoring higher than female participants also continued through

all categories and even in the overall results, and they found that the differences were

statistically significant. (Chen and Volpe, 2002). Chen and Volpe (1998) suggest that

because those irregularities between scores occur throughout the entire population, women

deficiency in personal financial knowledge needs to be addressed.

Given than women live longer than men, and more women than ever are joining the

workforce, this could be an increasing area of concern (Chen and Volpe, 1998). David

Bach (2003) discusses the fact that women live longer than men and therefore need to be

able to make their retirement benefits go further. In a study performed by Lusardi &

Mitchell (2008) a sample of 785 women aged 50+ was asked about retirement planning.

Less than one-third of the women respondents (30.9%) said that they had never attempted

to determine how much money they could need to calculate for retirement. Lusardi &

Mitchell (2008) stress that older women in the United States have very low levels of

financial literacy and the majority have not considered the planning that goes into

retirement. Poor financial management and planning, the earlier an individual is able to get
 29

started and gain knowledge on retirement planning the better. Additionally, because of a

person’s life expectancy, the financial burden of caring for elderly parents can also fall on

their shoulders (Bach, 2003).

As mentioned earlier, Chen and Volpe (2002) reasoned that women generally have

less enthusiasm for and are less inclined to become involved with personal finance based

on the statistically significant difference between men and women. What is interesting is

that personal finance is mostly number oriented, and this has lead researchers to suggest

that the subject matter may not be as attractive to women as it is to men. Chen & Volper

(2002) found that women have less interest in finance, so their preparation for the subject

may not be appropriate. This is may be due to the fact that after examining the participants’

profile, Chen and Volpe (2002) found that men rated Mathematics and other number

oriented science subjects more important. An interesting component that Chen and Volpe

analyzed was the source of knowledge that both men and women get their financial

education from.

How men and women view their future may also play an important role in how their

financial literacy levels are formed. These foundations may be formed as early as high

school, as students are really beginning to form their own thoughts and ideas concerning

financial management and some students are even given access to their first debit and

introduced to the idea of credit. In a study done by Danes and Haberman (2007), they found

that females were more likely than males to believe that managing money affects their

future, whereas makes were actually more confident presently about money making

decisions. It may be that females do not put as much importance associated with gaining
 30

financial knowledge earlier in their lives as mals do, which can have negative effects later

in their lives.

A number of studies suggest which shows that females are less significantly inclined to

financial risks than men (Fellner and Maciejovsky, 2007). Empirical studies which focused

on professionally trained investors, like managers, found out that financial behavior of

males and females differ in minor ways or not at all (Beckman and Menkhoff, 2008 as cited

in Barasinska, 2011).

Females are reported to having lower willingness to take risks than males. This

showed the gender differences in the actual risk-taking are not always present. The study

also showed that females are less likely to acquire risky financial decisions. However,

gender has no effect on having risky decisions. Indicated in the study, gender cannot always

serve as a good predictor of actual risk-taking. Gender is strongly correlated with the

probability of acquiring risky financial assets, but not with the decision regarding the

allocation of wealth between the safe and risky assets. Secondly, the effect of gender on

the tendency to take risks depends on the cultural environment (Barasinska, 2011).

Another group of people that are less financially literate are women. Fonseca, et al.

(2012) used the RAND American Life Panel (APL) to interview about 2,500 respondents

periodically about their background, financial responsibilities and financial literacy. Result

showed that within household that men are more likely to specialize in financial decisions

which authors think is likely where men are gaining their financial knowledge and while

women have lower financial literacy levels. Older women may be at more of a disadvantage

because they are less likely to gain financial knowledge, tend to live longer than men, and

have little time to correct their financial mistakes.

 31

Age Group in Relation to Personal Finance

Age is closely related to one’s experience. Often times, it is used interchangeably

as a proxy for the word. People who are older have had opportunities to increase their

intelligence financially and become more financially literate and knowledgeable through

daily financial decisions. As stated by Lusardi and Mitchell (2008), financial literacy of

women diverges among age groups. Older women tend to more likely have less financial

literacy. Agarwal et. Al (2009) studied how age affects financial decision-making.

Short-term financial behaviors may be learned as a person ages and gains more

experience managing their money and credit. Therefore, to estimate how experience affects

financial literacy the sample is split into age cohorts (Allgood and Walstad, 2013).

In the United States, low levels of financial knowledge among women have been

found in surveys covering younger groups of the population in the study of Lusardi,

Mitchell et al. (2009). These insights are echoed by qualitative studies such as those

undertaken by Into (2003), which indicated that older women value financial independence

but worry about their ability to retain it as they age. A study undertaken by Lusardi,

Mitchell and Curto (2012), examined financial literacy for people aged 55+. Results of this

study, in general, show that older Americans are financially illiterate even though many

had made financial decision over their lifetime. This may suggest that older adults may not

learn certain concepts through experience. The authors did not intervene with financial

education but in light of these results, financial education may need to occur before people

are older and cover concepts that may not be learned through experience.
 32

Additionally, young women express less interest when it comes to personal

financial management than young men. Meaning, that women are less likely to inclined to

save up money and are highly probable to impulsively spend.

Regarding the savings patterns of Baby Boomers, De Vaney and Chiremba (2006)

assert that views on the economic well-being of Boomers vary. A commonly held

perception says that Baby Boomers are not saving enough for their retirement ( Gist, 1999).

Baby Boomers have often been labeled as a spend-now, save-later generation (Gist, 1999).

To illustrate this point, De Vaney and Chiremba (2006) cite a study conducted by Teresa

A. Sullivan and her colleagues in 1991. As stated by Sullivan and her colleagues, Baby

Boomers were susceptible to losing all of their money.

On the other hand, others say that the opposite is true and believe that the Boomers

are/will be better off in retirement than previous generations. Scott A. Bass for instance,

says that Boomers will be fine because they are “healthier, better educated, and wealthier

than previous generations” (De Vaney & Chiremba 2006). From this perspective this is

most certainly true. The Boomers are indeed not saving to college, and they helped build

up consumerism in America. However, there are drawbacks concerning the Boomers. Of

Baby Boomers are indeed not saving enough, then that means they will struggle during

their retirement years as they attempt to keep up their current lifestyle with a fall in heir

savings. This fall is assumed to occur because they will not be working during their

retirement years. If they do find out, however, that they need to earn more, then some will

return to the labor force just so that can support themselves. This will not only be a

drawback for them bu it will also prevent younger generations from entering the labor force

as they were assumed that to take over the jobs that the Baby Boomers left-behind. The
 33

Boomer Generation has prided itself on taking a different route from their parents,

including their handling of finances. This huge generation is considered more credit-savvy

than preceding generations. Some point to the spread of gaudy McMansion housing

developments as a manifestation of Boomers’ reckless materialism and their rebellion

against the frugal practicality of their parents (Financial Planning Association, 2012).

A study found that fixed sources of income are very important for the silent generation

in terms of deciding how much they will allocate in their savings after their retirement.

Defying assumptions that the Silent Generation will carefully budget for and leave an

inheritance to their children/grandchildren, most of the “Silents” view leaving an

inheritance to someone other than their spouse. (Business Wire, n.d.) Born in roughly the

1925-1945 time-frame, this is a generation shaped by the Great Depression and World War

II. They tend to be heavily cash-reliant and adverse to spending what they do not have

(taking on debt), explains Townsend. With the hardships of the Depression looming large,

frugality and an emphasis on saving money are hallmarks of the Silent Generation. From

them, legacy is also important. “They tend to be more concerned about what’s going to

happen to their money when they’re gone,” Townsend explains, “And they’re concerned

about how generations after them handle money.” (Financial Planning Association, 2012)

Generation X came of age straddling the world of checkbooks and cash on one side,

and the plastic-centric world of online transaction and debit cards on the other. “On one

level,” said Townsend, “they’re used to having easy access to money and credit, because

that’s what their parents had. But the researcher think that on another level, they’re more

interested in conserving cash than perhaps their parents have been.” With greater access to

money, Generation X have struggled not only to establish what money means to them, but
 34

also to find the tools to manage their money, given their financial priorities. Having

witnessed the recent damage inflicted to their parents’ retirement and their own, Generation

X are more tempered in their expectations of how their investments will perform, and of

whether they’ll ultimately end up doing better than their parents did financially (Financial

Planning Association, 2012).

Like the Silent Generation, Millennial are coming of age in period of financial

upheaval, and at a time where for many, finding a well-paying job isn’t a given, it’s a

struggle. What’s more, many Millennial have been forced to live with their parents as

adults. Millennial may be more financially grounded as a result of these struggles, said by

the Townsend. “They are echoing Baby Boomers in wanting to do things differently.

They’re questioning whether they need that McMansion and they’re looking to buy things

that last a long time. They’re conserving money to buy the grains instead of the bun.”

(Financial Planning Association, 2012)

Number of Dependents in Relation to Financial Management

Erik Hurst, an assistant professor at the University of Chicago Graduate School of

Business and Kerwin Kofi Charles of the University of Michigan address the complex issue

of parent-child wealth in their new study, “The Correlation of Wealth Across Generations”.

Hurst and Charles used survey data that track a wide range of parent-child pairs over 3

years. They find that standard measures of household wealth such as income, human

capital, and ownership of particular assets show very similar results for parents and

children. Much of this persistence in wealth comes from the high and low end of the income
 35

distribution: children of very low wealth or very high wealth parents rarely end up in a

substantially different economic position.

What factors explains similarity in parent-child wealth? Income and portfolio

composition account for the majority of the connection. Hurst and Charles suggest that

savings behavior, as measured by the tendency for parents and children to own similar

assets, is also an important part of the explanation. Children’s economic choices may be

shaped by their parents’ savings tendencies, either through direct learning or simply by

being in the same environment.

As stated by Hurst, the probability of being like your parents is much greater than

being dramatically different from them. But there is still a fair amount of mobility in society

depending on your perspective. It is a half full/half empty scenario with many exceptions

to the rule. In general, the fact that a parent owns an asset is enough to predict that the

dependents will as well, most likely because of parental example. Parents and children

may, therefore, have similar wealth because of similar tendencies to save out of any given

income stream.

More than three in five families with children under the age of 18 (62%) have talked

about money matters within the past week. In all, 84% of families with kids and dependents

under the age of 18 have had financial discussions and more than half of those (56%) were

initiated by kids asking questions about money.

The category within the member of children demographic that is statistically

significant in having two children (Floyd). It is predicted that the number of children and

dependent may be positively related to the level of savings, as this will be related to a

greater sense of responsibility towards children’s future (Mahdzan, Tabiani). Therefore as

 36

mentioned by Mahdzan and Tabiani, number of children and dependents is significantly

related to individual saving.

Income Range and Financial Activities

Monticone (2010) suggested that people with higher incomes are also more likely to

be financially knowledgeable. Therefore, the people that have the lowest financial literacy

scores people with less education and income may be people that need financial education

the most.

In a study conducted by Mahdzan and Tabiani (n.d.), income plays an important role

in people’s saving behavior. Having an increase in income and high education level

increases the probability of savings. However, researchers have indicated that people in

lower income groups who have experienced financial hardships are more obsessed by none

and view money as a source of power (Furnham 1984; Lim et al. 2003). These experiences

have directly affected their financial behavior (Hanley and Wilhelm 1992; as cited in Tsui-

Yii & She-Cheng, 2013).

According to a Senior Economist Federal Reserve Bank of Kansas City, Dr. Kenneth

Spong, home ownership as a key element in building wealth. He noted that homes represent

30 percent of all U.S household assets. However, low income of an individual face

constraints in using home ownership as a wealth building strategy. Only 46 percent of

families in the bottom income have quartile owned homes in 2007, compared to 89 percent

of families in the top income quartile.

Dr. Spong also noted that public housing policies place low-income households at a

significant disadvantage, both in heir quest to become home owners and it what happens
 37

after they purchase a home. He noted that in many instances, the typed of instruments low-

income individuals have had to relay on in order to purchase a home have required a much

higher degree of financial literacy than what was required from conventional borrowing

instruments.

Besides an individuals’ personal income, approximately 23 percent Filipino has

reported that friends living elsewhere. Seventeen percent of he adults reported receiving

money money from friends of family elsewhere living within the Philippines and 10

percent of the report receiving money from outside the country. Remittances haven long

been a crucial component of the Philippines of GDP. Ten percent of the adults report that

money or in-kind payments from family or friends living elsewhere is their main source of

income.

In contrast, a better understanding of basic financial concepts is strongly associated

with individual characteristics such as completed tertiary education, higher income, and

the usage of print, broadcast, and internet media on a regular basis. As may have been

expected, those with highest educational attainment and lowest incomes, even after

controlling for other factors.

As compared to other aspects of financial capability, Filipino adults show relative

strengths in terms of their farsightedness, achievement orientation, as well as their ability

to plan for unexpected expenses. According to PCA analysis , Filipino adults are most

capable in the area of planning of unexpected expenses where they achieve the highest

score (67) of all aspects of financial capability being measured. This score reflects that fact

that around half of the surveyed Filipino adults could reportedly cover an unexpected

expense equivalent to one month’s income without borrowing. Only 19 percent of them
 38

could not cover such expense and have not thought about doing anything to make sure they

could cover it.

Synthesis

Teacher’s level of financial literacy and financial behavior affects their ability to

provide for their families, to invest in their education and that of their children, and to

contribute to the community, which are all important aspect of citizenship in the society.

The civil status, gender, age group, number of dependents and monthly income

range are influential factors to people’s financial decision-making process. There is a

probable connection between these variables when it comes to differentiating the amount

spent and saved.

The need to investigate financial behavior among teachers is important since

teachers are among role model figures who can influence the young generation with regards

to financial knowledge and skills in personal financial management. Essential existing

studies about the variables are also mentioned in order to clearly understand the result or

the outcome that may further explain or support the study.

 39

METHODS

This chapter presents the methods that were used as a framework in the conduct of

the study. The research design justifies the appropriateness of the chosen methodology in

respect to the objectives of the study. The participants, as well as the technique in

determining the samples were described in this section. The instrument to be used to gather

the information needed in the study was described along with a detailed description of each

section of the said instrument. The data gathering procedure details the protocol to be

followed in fielding out the instruments to the participants of the study.

Research Design

This research study incorporates three quantitative research designs namely; the

descriptive, comparative and correlational designs. The researchers aim to determine the

financial literacy of the USLS-Select Liceo de La Salle Teachers based on their spending

and saving activities, establish the differences and relationship between their savings and

expenditures to the study’s variables, such as the participants’ civil status, age group,

gender, income range and number of dependents.

As studied by Esther Baraceros (2016), descriptive research describes what exist and

may help to uncover new facts and meaning. Its purpose is to observe, describe and

document aspects of a situation as it naturally occurs. The descriptive research method was

selected to use in this study because it provides an accurate portrayal or the objectives of

the study (Burns & Grove 1993). Since the study aims to determine the financial literacy

of the selected teachers, the descriptive research design was observed as it enables the

identification of the percentage of monthly income set aside for savings.

 40

As studied by Pickvance (2005), comparative research is conducted mainly to explain

and gain a better understanding of the casual processes involved in the creation of an event,

feature or relationship usually by bringing together variations in the explanatory variable

or variables. Comparative research can be traced to a long history that has gained much

attention in current research due to globalization and technological advances, on cross-

national platforms (Azarian, 2011). Conventionally, comparative research emphasized on

the “explanation of differences, and the explanation of similarities”. From the rationale of

this research, the comparative method is appropriate for determining the differences of the

savings and expenditures of the participants when grouped according to their marital status,

age group, gender, income range and number of dependents.

Correlational research method examines the differences of characteristics or variables

of two or more entities. A correlational exists when one variable increases or decreases

correspondingly with the other variable (Trochim, W.K., 2007). Correlational research is

looking for variables that seem to interact with each other, so that when there is a changes,

it will also give an idea on how the other will change. This usually entails the researchers

using variables that they cannot control. Correlational research which examines the

difference between the two characteristics of study group. As stated by Leedy and Omrod

(2001) and William (2007), it is crucial to observe the extent to which a researcher discover

statistical correlation between two characteristics depending on some degree of how will

those characteristics have been calculated. This study aims to determine the associative

relationship between the participants’ savings and expenditures, to their age group, income

range and number of dependents. Furthermore, the study would be able to identify if there
 41

is a difference in the inclination of the participants on their financial activities in relation

to their socio-demographic profile.

Participants of the Study

The participants of the study are full-time teachers that are teaching Liceo student

for the Academic Year 2018-2019. There are a total of 40 full-time Liceo de La Salle

teachers in the University of St. La Salle, Bacolod. The researchers would have 37 teachers

as participants, determined through Slovin’s method. The participants were selected

through purposive sampling for the researchers to focus on particular characteristics of a

population that are of interest, which will best enable the researchers to answer the research

questions.

Sampling Technique

The sampling technique used for this study is purposive sampling since it is the

appropriate method available given that there are only limited number of primary data

sources who can contribute to this study which are the USLS – select full-time Liceo de La

Salle teachers. Purposive sampling is a non-probability sampling technique in which

individuals or cases are selected based on some appropriate characteristics required of the

sample members (John Dudovskiy, n.d.). It may prove effective to use this method because

there is only a limited number of people in the population that can serve as source of data.

In this event, there are only 40 full-time instructors teaching in Liceo.

Out of the 40 teachers, 37 participants were determined through Slovin’s method.

n = N / (1 + Ne2)
 42

n = 40 / (1 + (40) (0.05)2)

n = 40 / (1 + 0.1025)

n = 40 / 1.1025

n = 36.28 or 37 participants

The sampling technique is purposive because the participants have to be full-time

instructors who teach in Liceo. Though the study uses a non-probability sampling method,

validity and accuracy of the results will be assured for the researchers will employ the data

from the entire Liceo full-time teacher population.

Research Instrument and Technique

The research instrument is a self-constructed questionnaire, which consists of four

(4) sections. The construction of the questionnaire is based on the specific questions from

the statement of the problem.

Before the questionnaire proper, a letter asking for permission to conduct the study

was made. Additionally a free and prior informed consent form to give the participants a

background with regards to the study’s purpose, method involved, risks, benefits and

assurance of confidentiality. The consent form would have a section for the participants to

sign as proof that they have read the information about the research and have agreed to

participate.

Part one (1) dealt with the participants’ socio-demographic profile, namely their

civil status, age, gender, income range and number of dependents. Part two (2) contained

the participants’ other sources of income and the amount they incur from it. Part three (3)
 43

is about the amount of monthly expenses of the participants. Lastly, part four (4) deals with

the amount of money the participants set aside for savings.

Data Gathering Procedure

The data of this research was gathered through a self-constructed questionnaire. The

researchers’ did the following procedure to gather data:

First, the researchers went to the Liceo office to get the list of full-time Liceo teachers.

The list is an important tool to specifically point out the participants of the study and to be

able to take hold of the vacant periods of the said participants.

Then, the researchers constructed a questionnaire based on the specific questions stated

in the statement of the problem. The questionnaire was constructed in a way that sensitive

information would be given without compromising or offending the participant in any way,

shape or form.

Lastly, the researchers would go to the participants’ respective department faculty. The

researcher/s would courteously greet the teacher who will be a participant in the study. The

teachers would be given a letter asking permission to conduct the research, followed by a

briefing with regards to the study through the free and prior consent form. The researchers

would assure the confidentiality of the information provided by the participants. If the

teacher agrees to participate they would be asked to sign the consent form as proof. The

researchers would assist the participants in answering the questionnaire and provided

enough time for them to answer it. The data gathering procedure would be done during the

participants’ time and place of convenience.

 44

Statistical Treatments

Data frequency distribution would be utilized in this study to determine the

percentage of participant distribution in their demographics, expenses and savings.

According to Byjus, a frequency distribution is the representation of data, either in a

graphical or tabular format, to displays the number of observation within a given integral.

In Statistics, a frequency distribution is a table that displays the number of outcomes of a

sample. Each entry occurring in the table contains the count or frequency of occurrence of

the values within a group. The frequency distribution may either be presented in the form

of a pie or bar graph.

For the comparison of expenses and savings of the participants according to their

socio-demographic profile, bar graphs would be used. Scatterplots would then be utilized

to establish the correlation or associative relationship between the variables. Determination

of the specific amounts within the income, expense and savings range was done through

the use middle estimation. The estimations were also adapted to determine the state of

financial literacy of each individual.

 45

RESULTS AND DISCUSSIONS

This chapter deals with the results and discussion of data which were gathered in

connection with the specific problems and hypotheses of the study. It presents the findings

of the study through the use of graphs and tables in the treatment of quantitative data.

Demographic Profile of the Participants

Figure 2 shows the percentage of the civil status of the participants. 23 or 62.16%

of the participants are married. 14 or 37.84% are single. There are no participants who are

legally separated and widowed. This data shows that majority of the full-time Liceo

teachers are married.

37.84%

62.16%

Single Married Legally Separated Widowed

Figure 2. Civil Status of the Participants.

 46

Figure 3 depicts the percentage distribution of the gender of the participants. Based

on the data that was collected, 23 of the participants are male which has a percentage of

54.05%. There are 14 females which has a percentage of 45.95% percent. This data shows

that there are more male teachers in the Liceo department who are full time.

37.84%

62.16%

Male Female

Figure 3. Gender of the Participants.

Figure 4 shows the percentage of the age group of the participants. Based on the

graph, the 2.70% or 1 of the Liceo full-time teachers belong to the Silent Generation. 2 or

5.41% of which belongs to the Baby Boomers. The next 10.81% are the percentage of those

who belong to the age group Centennials equivalent to 4 participants. 13 or 35.14% of the
 47

population of the full time Liceo Teachers are grouped in the Generation X. Lastly, the

group who got the highest number of participants which has a percentage of 45.95% which

is the Millennial with 17 participants. These data show that most of the full-time Liceo

teachers comprises of Millennial and Generation X. Only few of them belong to the age

group Silent Generation, Baby Boomers and Centennial.

10.81% 5.41%

2.70%

35.14%

45.95%

Silent Generation Baby Boomers Generation X Millennial Centennial

Figure 4. Age Group of the Participants.

Figure 5 shows the percentage of the number of dependents of the Liceo full time

teachers. 18.92% or 7 of the participants have no dependent. 16.22% or 6 of the participants

have 1 dependent. 29.73% or 11 of the participants have 2 dependents, which has the

highest percentage. 21.62% or 8 of the participants has 3 dependents. 3 or 8.11% of the

 48

participants have 4 dependents. 2.70% or 1 of the participants has 5 dependents. Lastly,

2.71% or 1 of the participants has 6 dependents. It shows that majority of the full-time

teachers have 2 dependents and the maximum number of dependents is 6.

2.70%

8.11% 18.92%

21.62%
16.22%

29.73%

0 1 2 3 4 5 6

Figure 5. Number of Dependents of the Participants.

Monthly Income of the Participants

Figure 6 shows the distribution of participants according to their income range. 2 or 5.41%

of the participants have a monthly income range of P15,000 – P20,000. 13.51% or 5 of the

participants have an income range of P20,001 – P25,000. 6 or 16.22% of the participants have a

monthly income range of P25,001 – P30,000. 12 or 32.43% of the participants have an income
 49

range of P30,001 – P35,000. 10.81% or 4 of the participants have an income range of P35,001 –

P40,000. 8 or 21.62% of the participants have an income range above P40,000. Majority of the

participants have a monthly income range of P30,001 – P35,000.

5.41%
21.62% 13.51%

10.81% 16.22%

32.43%

P15,001 - P20,000 P20,001 - P25,000 P25,001 - P30,000

P30,001 - P35,000 P35,001 - P40,000 P45,001 and above

Figure 6. Monthly Income Range of the Participants

Participants’ Other Source of Income

Figure 7 shows the other sources of income of the participants which are the full

time Liceo teachers. 64.88% or 24 of the participants have no other sources of income. 2%

do software making. 2.70% or 1 participant does online selling. 13.51% or 5 participants

 50

do personal selling. 2.70% or 1 of them teaches in another school as a part-time job. 2.70%

or 1 does coaching. 2.70% or 1 does contracting. 2.70% or 1 of the participants does

freelance writing. 2.70% or 1 accepts consultancy. Lastly, 2.70% or 1 of them has a house

for rent. This data shows that almost all of the participants have no other sources of income

which may be an effect of full schedule and it must be that most of them wanted to focus

on teaching. Majority of the teachers with other sources of income does personal selling.

2.70%

2.70%
13.51%
2.70%
2.70%
2.70%
2.70%
64.88% 2.70%
2.70%

Software Online Personal School Coach

Contractory Writing Consultancy House Rent None

Figure 7. Other Sources of Income of the Participants.

 51

Figure 8 depicts the income range of the participants from their other sources of

income. Based on the previous graph, 35.12% or 13 of the participants have other sources

of income. 15.38% or 2 of them accumulate below P3,000 from their other source of

income. 30.77% or 4 teachers get P3,001 – P6,000. 15.38% or 2 teachers earn P6,001 –

P10,000. And lastly, 38.46% or 5 of them earn P15,001 and above from their other source

of income. This graph shows that majority of the teachers with others sources of income

earn more than P15,000.

15.38%

38.46%

30.77%

15.38%

Below P3,000 P3,001 - P6,000 P6,001 - P10,000 P15,001 and above

Figure 8. Income Range from Other Sources of Income of the Participants.

 52

Participants’ Expense according to their Socio-Demographic Profile

Figure 9 shows the participants’ expenses according to their civil status. Based on

the data, 59% or 22 of the participants are married and 41% or 15 of the participants are

single. Out of these 22 married full-time Liceo de La Salle teachers, 4.55% answered that

they spend below ₱10,000 per month. 22.73% answered an average of ₱10,001- ₱15,000

per month. 18.18% answered that they spend an average of ₱15,001- ₱20,000 per month.

18.18% answered that they spend ₱20,001- ₱25,000 per month. 9.09% answered that they

spend ₱25,001 - ₱30,000 per month. 4.55% answered that they spend ₱30,001 - ₱35,000

per month. 9.09% answered that they spend ₱35,001 - ₱40,000 per month. 9.09% also

answered that they spend ₱40,001 - ₱45,000 per month. Lastly, only 4.55% answered that

they spend ₱45,001 and above per month. On the other hand, out of these 15 single full-

time Liceo de La Salle teachers, 20% answered that they spend below ₱10,000 per month.

13.33% answered an average of ₱10,001- ₱15,000 per month. Majority or 26.67%

answered that they spend an average of ₱15,001- ₱20,000 per month. 20% answered that

they spend ₱20,001- ₱25,000 per month. Only 6.67% answered that they spend ₱25,001 -

₱30,000 per month. No one answered that they spend ₱30,001 - ₱35,000 per month.

13.33% answered that they spend ₱35,001 - ₱40,000 per month. There were also no single

participants that answered that they spend ₱40,001 - ₱45,000 and ₱45,001 and above

respectively
 53

22.73%
5
NUMBER OF PARTICIPANTS

18.18%
18.18%
26.67%
4

20%
20%

13.33%

13.33%
9.09%

9.09%

9.09%
2

4.55%
6.67%
4.55%

4.55%
1

0
Below P10,001 - P15,001 - P20,001 - P25,001 - P30,001 - P35,001 - P40,000 - P45,001 and
P10,000 P15,000 P20,000 P25,000 P30,000 P35,000 P40,000 P45,000 above

MONTHLY EXPENSE RANGE

Married Single

Figure 9. Participants’ Expense according to Civil Status

Figure 10 shows the participants’ expense according to gender. Out of these 23

male full-time Liceo de La Salle teachers, only 1 of them answered that he spends below

₱10,000 per month. 4 of the participants answered ₱10,001- ₱15,000 per month. 4 of the

participants also answered that they spend ₱15,001- ₱20,000 per month. 6 of the

participants answered that they spend ₱20,001- ₱25,000 per month. 2 male participants

answered that they spend ₱25,001 - ₱30,000 per month. Only 1 participant answered that

he spends ₱30,001 - ₱35,000 per month. 3 participants answered that they spend ₱35,001
 54

- ₱40,000 per month. Only 1 participant answered that he spends ₱40,001 - ₱45,000 per

month. Lastly, only 1 participant as well answered that he spends ₱45,001 and above per

month. On the other hand, out of these 14 female full-time Liceo de La Salle teachers, 3

participanta answered that they spend below ₱10,000 per month. Another 3 female

participants answered ₱10,001- ₱15,000 per month. Majority or 4 participants answered

that they spend ₱15,001- ₱20,000 per month. Only 1 participant answered that she spends

₱20,001- ₱25,000 per month. 1 participant also answered that she spends ₱25,001 -

₱30,000 per month. No one answered that they spend ₱30,001 - ₱35,000 per month. 1

participant answered that she spends ₱35,001 - ₱40,000 per month. 1 participant answered

that she spends ₱40,001 - ₱45,000 per month. No one answered that they spend ₱45,001

and above.
26.09%

6
NUMBER OF PARTICIPANTS

17.39%

28.57%
17.39%

5
13.04%
21.43%
21.43%

4
8.70%

3
7.14%
4.35%

4.35%
7.14%

4.35%
7.14%

7.14%
4.35%

0
Below P10,001 - P15,001 - P20,001 - P25,001 - P30,001 - P35,001 - P40,001 - P45,001 and
P10,000 P15,000 P20,000 P25,000 P30,000 P35,000 P40,000 P45,000 above
MONTHLY INCOME RANGE
Male Female

Figure 10. Participants’ Expense according to Gender

 55

Figure 11 shows the participants’ expense according to age group. The only

participant that belongs to the Silent Generation answered that he or she spends below

₱10,000 per month. Out of the 2 participants in the Baby Boomers, 50% answered that they

spend ₱20,001- ₱25,000 per month, while the other 50% answered that they spend

₱25,001- ₱30,000 per month. Out of the 13 participants in the Generation X, 7.70%

answered that they spend below ₱10,000 per month. 23.08% answered that they spend

₱10,001- ₱15,000 per month. 7.07% answered that they spend ₱15,001- ₱20,000 per

month. 23.08% answered that they spend ₱20,001- ₱25,000 per month. 7.07% answered

that they spend ₱30,001- ₱35,000 per month. 15.38% answered that they spend ₱35,001-

₱40,000 per month. 7.70% answered that they spend ₱40,001- ₱45,000 per month and

₱45,001 and above per month. Out of the 17 participants that belong to the Millennial,

17.65% answered that they spend below ₱10,000 per month. 23.53% answered that they

spend ₱10,001- ₱15,000 per month. 29.41% answered that they spend ₱15,001- ₱20,000

per month. 5.88% answered that they spend ₱20,001- ₱25,000 per month and ₱25,001-

₱30,000 per month respectively. 11.76% answered that they spend ₱35,001- ₱40,000 per

month. Only 5.88% answered that they spend ₱40,001- ₱45,000 per month. Out of the 4

participants that belong to the Centennials, 75 % answered that they spend ₱15,001-

₱20,000 per month and only 25% answered that they spend ₱20,001- ₱25,000 per month.
 56

29.41%
23.53%
5
NUMBER OF PARTICIPANTS

4 23.08%
17.65%

7.70%
75%

11.76%
15.38%
3

7.70%
7.70%

7.70%
7.70%

5.88%
5.88%

7.70%
100%
5.88%
50%

50%
25%
1

0
below P10,001 - P15,001 - P20,001 - P25,001 - P30,001 - P35,001 - P40,001 - P45,001
P10,000 P15,000 P20,000 P25,000 P30,000 P35,000 P40,000 P45,000 and above
MONTHLY INCOME RANGE
Silent Generation Baby Boomers Generation X Millennials Centennials

Figure 11. Participants’ Expense according to Age Group

Figure 12 shows the participants’ expense according to age group. Out of the 2

participants that earn ₱15,001 - ₱20,000 per month, 1 answered that he or she spends below

₱10,000 per month while the other one spends ₱10,001 - ₱15,000 per month. Out of the 4

participants that earn ₱20,001 - ₱25,000 per month, 2 of which answered that they spend

below ₱10,000 per month while the other 2 answered that they spend ₱15,001 - ₱20,000

per month. Out of the 7 participants that earn ₱25,001 - ₱30,000 per month, 5 of which

answered that they spend ₱15,001 - ₱20,000 per month while the other 2 answered that

they spend ₱20,001 - ₱25,000 per month. Out of the 8 participants that earn ₱30,001 -

₱35,000, majority or 4 of which answered that they spend ₱10,001 - ₱15,000 per month,
 57

each of the other 4 participants answered that they spend ₱15,001 – ₱20,000, ₱20,001 –

₱25,000, ₱25,001 – ₱30,000, and ₱30,001 – ₱35,000 per month respectively. Out of the 6

participants that earn ₱35,001 - ₱40,000 per month, 1 of which answered that he or she

spends below ₱10,000 per month, 2 of which answered that they spend ₱20,001 - ₱25,000

per month, 1 of which answered that they spend ₱25,001 - ₱30,000 per month, each of the

other two participants answered that they spend ₱35,001 – ₱40,000 and ₱40,001 - ₱45,000

per month respectively. Out of the 5 participants that earn ₱45,001 - ₱50,000 per month,

each of the two participants answered that they spend ₱20,001 – ₱25,000 and ₱25,001 -

₱30,000 per month, 2 of which answered that they spend ₱35,001 – ₱40,000 per month,

and only 1 participant answered that he or she spends ₱40,001 – ₱45,000 per month. The

only participant that earns ₱50,001 - ₱55,000 per month answered that he or she spends

₱15,001 – ₱20,000. One participant also answered that he or she spends ₱20,001 – ₱25,000

per month. Out of the 3 participants that earn ₱60,001 - ₱65,000 per month, each one of

which answered that they spend ₱10,001 - ₱15,000, ₱35,001 - ₱40,000 and ₱45,001 and

above respectively.
 58

6 Participants' Expense According to Income Range

71.43
5

50%
NUMBER OF PARTICIPANTS

33.33
12.50% 28.57
50%

50%

40%
%
2

12.50%

33.33%
33.33%

16.67%

33.33%
16.67%

12.50%
12.50%

16.67%
20%

16.67
100%
100%
50%
50%

20%

20%
1

0
below P10,001 - P15,001 - P20,001 - P25,001 - P30,001 - P35,001 - P40,001 - P45,001
P10,000 P15,000 P20,000 P25,000 P30,000 P35,000 P40,000 P45,000 and above
MONTHLY INCOME RANGE

below 10000 10,001 - 15,000 15,001 - 20,000 20,001 - 25,000

25,001 - 30,000 30, 001 - 35,000 35,001 - 40,000 40,001 - 45,000
45,000 - 50,000 50,001 -55,000 55,001 - 60,000 60,001 - 65,000

Figure 12. Participants’ Expense according to Monthly Income Range

Figure 13 shows the participants’ expense according to their number of dependents.

Out of the 7 participants that have no dependents, 42.86% of which answered that they

spend below ₱10,000, 14.29% spend ₱10,001- ₱15,000, 28.57% spend ₱15,001- ₱20,000,

14.29% spend ₱25,001- ₱30,000 per month. Out of the 6 participants that has 1 dependent,

33.33% answered that they spend ₱15,001- ₱20,000, another 33.33% spend ₱20,001-

₱25,000,16.67% spend ₱25,001- ₱30,000, 16.67% also answered that they spend ₱35,001-

₱40,000 per month. Out of the 11 participants that have 2 dependents, 9.09% answered that
 59

they spend below ₱10,000, 27.27% spend ₱10,001- ₱15,000, 18.18% spend ₱15,001-

₱20,000, 9.09% spend ₱20,001- ₱25,000, 9.09% spend ₱25,001- ₱30,000, 9.09% spend

₱30,001- ₱35,000, 9.09% spend ₱40,001- ₱45,000, and another 9.09% answered that they

spend ₱45,001 and above per month. Out of the 8 participants that have 3 dependents,

37.50% answered that they spend ₱10,001- ₱15,000, 25% spend ₱15,001- ₱20,000,

12.50% spend ₱20,001- ₱25,000, and 25% answered that they spend ₱35,001- ₱40,000 per

month. Out of the 3 participants that have 4 dependents, 66.67% answered that they spend

₱20,001- ₱25,000 while the other 33.33% spend ₱40,001- ₱45,000 per month. The only

participant that has 5 dependents spends ₱20,001- ₱25,000 per month. The participant that

has 6 dependents answered that they spend ₱35,001- ₱40,000 per month.

Participants' Expense According to Number of Dependents

3.5
27.27%
37.50%
42.86%

3
NUMBER OF PARTICIPANTS

2.5
66.67%
18.18%
28.59%
33.33%

33.33%

25%
25%

1.5 33.33%
12.50%

16.67%
14.29%

9.09%
9.09%

9.09%
14.29%

9.09%
9.09%

9.09%

100%
100%

16.67%

0.5

MONTHLY INCOME RANGE

None 1 2 3 4 5 6

Figure 13. Participants’ Expense according to Number of Dependents

 60

Comparison of Participants’ Expenses

Figure 14 shows the comparison of the monthly expenses according to civil status.

It shows that the average monthly expense of the married participants is ₱23,695.65 and

the participants who are single has an average monthly expense amounting to ₱21,428.57.

It depicts that married participants tends to have a greater amount of expenses than the

participants who are single. Finances in marriage can become complex. It is not only about

the wedding but about the social roles they take on, that can sometimes play out through

couple’s finances, which can add additional strain (Tasnim, 2017).

24,000.00

23,500.00

23,000.00
Expense range

22,500.00

22,000.00

21,500.00

21,000.00

20,500.00

20,000.00
Married Single
Civil Status

Figure 14. Comparison of Expense according to Civil Status

 61

Figure 15 shows the comparison of the monthly expenses according to gender. It

shows that males have a greater amount of expenses than females. This is because males

have an average monthly expense of ₱23,913.04 while the females have an average

monthly expense of ₱18,035.71. Since males and females are raised differently by their

parents; gender roles may affect the spending behaviors of male and female (Thorne, 2003).

30,000.00

25,000.00
Expense RAnge

20,000.00

15,000.00

10,000.00

5,000.00

0.00
Male Female
Gender

Figure 15. Comparison of Expense according to Gender

Figure 16 shows the comparison of monthly expenses according to the age group

of the participants. The Silent Generation has the highest average amount of monthly

expense which is ₱27,500. Followed by the Baby Boomers and Generation X which has

the same average amount of monthly expense which is ₱25,000. The Centennial age group

got an average monthly expense of ₱20,000. Lastly, the Millennials got the lowest average

monthly expense which is ₱18,823.53.

 62

30,000

25,000

20,000
Expense range

15,000

10,000

5,000

0
Silent Generation Baby Boomers Generation X Millennials Centennials
Age Group

Figure 16. Comparison of Expense according to Age Group

Figure 17 depicts the comparison of expense of the participants in accordance to

their income range. The participants who have an income range of ₱45,001-₱50,000 got

the highest average amount of expense which is ₱33,500. The participants who have an

income range of ₱60,001-₱65,000 has an average amount of expense of ₱32,500. The

participants who have an income range of ₱35,001-₱40,000 has an average amount of

expense of ₱26,250. An average expense amount of ₱22,500 was spent by participants who

have an income range of ₱55,001-₱60,000. ₱18,750 is the average expense amount of the

participants with a ₱30,001-₱35,000 income range. The participants who have an income

range of ₱25,001-₱30,000 have an average expense amount of ₱18,214.29. The

participants who have an income range of ₱50,001-₱55,000 has an average expense amount

of ₱17,500. ₱11,250 is the average expense amount of the participants who have an income
 63

range of ₱20,001-₱25,000. And the income range which had the lowest average expense

amount are the participants who have an income range of ₱15,001-₱20,000.

40,000

35,000

30,000
Expense range

25,000

20,000

15,000

10,000

5,000

Income range

Figure 17. Comparison of Expense according to Income Range

Figure 18 shows the percentage of the monthly expenses of the participants

according to their number of dependents. The participants who have no dependents got the

lowest average amount of monthly expense which is ₱12,857.14. The participants who

have 3 dependents has an average expense amount of ₱21,250. ₱22,500 is the average

expense amount of participants who have 5 dependents. The participants who have an
 64

average expense amount of ₱22,727.27 has 2 dependents. The participants who have 1

dependent has an average expense amount of ₱24,166.67. Participants with 4 dependents

have an average expense amount of ₱29,166.67. And lastly, the participants with 6

dependents got the highest average expense amount of ₱37,500.

40000

35000

30000
Expense range

25000

20000

15000

10000

5000

0
0 1 2 3 4 5 6
Number of Dependents

Figure 18. Comparison of Expense according to Number of Dependents

 65

Associative Relationship of Participants’ Expense

Figure 19 shows the associative relationship between the participants’ expenses and

age group. There is a negative trend in the scatterplot, indicating that as the age group goes

younger, the expense decreases. According to Financial Post (2012) spending declines as

an individual grows older; in contrary to the results of this study.

30,000.00
Silent generation,
27,500.00
Generation X,
25,000.00
25,000.00
Baby Boomers,
25,000.00
Centennials,
20,000.00
20,000.00
Monthly Expense

Millennials, 18,823.53
15,000.00

10,000.00

5,000.00

-
0 1 2 3 4 5 6
Age Group

Figure 19. Correlation of Expense and Age Group

 66

Figure 20 shows the associative relationship between the participants’ expenses and

income range. The scatterplot depicts a positive trend, indicating that as one’s incomes

increases, their expense would also increase.

40,000.00
45,001 - 50,000, 60,001 - 65,000,
33,500.00 32,500.00
35,000.00

30,000.00

35,001 - 40,000,
Monthly Expense

25,000.00 26,250.00 55,001 - 60,000,

22,500.00
25,001 - 30,000,
18,214.29
20,000.00 30,001 - 35,000,
18,750.00 50,001 - 55,000,
17,500.00
15,000.00

20,001 - 25,000,
10,000.00 11,250.00

5,000.00 15,001 - 20,000,

8,750.00
below 10,000,

- 10,001 - 15,000, - 40,001 - 45,000, -

0 2 4 6 8 10 12 14
Income Range

Figure 20. Correlation of Expense and Income Range

 67

Figure 21 presents the associative relationship between the participants’ expenses

and number of dependents. The scatterplot does not show a trend. Ergo, there is no

associative relationship between the participants’ expense and number of dependents.

14000

6, 12500
12000

10000
Monthly Saving

8000
0, 7714.28

6000
5, 5500

3, 4312.5
4000
1, 3500
2, 2818.18
2000

4, 1166.66

0
0 1 2 3 4 5 6 7
Number of Dependents

Figure 21. Correlation of Expense and Number of Dependents

 68

Participants’ Savings

Figure 22 shows the participants’ savings according to civil status. Out of these 22 married

full-time Liceo de La Salle teachers, 31.82% answered that they do not save any amount,

18.18% saves below ₱2,000, 13.64% saves ₱2,001 - ₱3,000, 13.64% saves ₱3,001 -

₱4,000, 9.09% saves ₱4,001 - ₱5,000, 4.55% saves ₱7,001 - ₱8,000, 4.05% saves ₱8,001

- ₱9,000, and another 4.05% saves ₱10,001 - ₱15,000 per month. Out of these 15 single

full-time Liceo de La Salle teachers, 6.67% answered that they do not save any amount,

13.33% saves below ₱2,000, 6.67% saves ₱2,001 - ₱3,000, 6.67% saves ₱3,001 - ₱4,000,

13.33% saves ₱4,001 - ₱5,000, 20% saves ₱5,001 - ₱6,000, 6.67% saves ₱7,001 - ₱8,000,

6.67% saves ₱9,001 - ₱10,000, 13.33% saves ₱10,001 - ₱15,000, and 6.67% saves ₱15,001

and above per month.

Figure 22. Participants’ Savings according to Civil Status

 69

Figure 23 shows the participants’ savings according to gender. Out of 23 male full-

time Liceo de La Salle teachers, 4 of which answered that they do not save any amount, 5

of which saves below ₱2,000, 3 of which saves ₱2,001 - ₱3,000, 1 of which saves ₱3,001

- ₱4,000, 1 of which saves ₱4,001 - ₱5,000, 3 of which saves ₱5,001 - ₱6,000, 1 of which

saves ₱6,001 - ₱7,000, 1 of which saves ₱7,001 - ₱8,000, 1 of which saves ₱8,001 - ₱9,000,

1 of which saves ₱9,001 - ₱10,000, and 2 of which saves ₱10,001 - ₱15,000, per month.

Out of these 14 female full-time Liceo de La Salle teachers, 3 of which answered that they

do not save any amount, 2 of which saves below ₱2,000, 1 of which saves ₱2,001 - ₱3,000,

2 of which saves ₱3,001 - ₱4,000, 3 of which saves ₱4,001 - ₱5,000, 1 of which saves

₱5,001 - ₱6,000, 1 of which saves ₱10,001 - ₱15,000, and 1 of which saves ₱15,001 and

above per month.

Figure 23. Participants’ Savings according to Gender

 70

Figure 24 shows the participants’ savings according to age group. The only

participant that belongs to the Silent Generation saves ₱10,000 - ₱15,000 per month. Out

of the 2 participants in the Baby Boomers, 50% saves nothing while the other 50% saves

₱3,001 - ₱4,000 per month. Out of the 13 participants in the Generation X, 23.08% saves

nothing and below ₱2,000 respectively, 7.70% saves ₱2,001 - ₱3,000, ₱3,001 - ₱4,000,

₱5,001 - ₱6,000, and ₱6,001 - ₱7,000, ₱8,001 - ₱9,000, and ₱9,001 - ₱10,000 per month

respectively. Out of the 17 participants in the Millennial, 17.65% saves nothing, 11.76%

saves below ₱2,000, 2,001 - ₱3,000, ₱3,001 - ₱4,000 respectively, majority or 23.53%

saves ₱4,001 - ₱5,000, 5.88% saves ₱5,001 - ₱6,000, ₱7,001 - ₱8,000, ₱10,001 - ₱15,000,

and ₱15,001 and above per month respectively. Out of the 4 participants in the Centennials,

50% of which saves below ₱2,000 while the other 50% of which saves ₱5,001 - ₱6,000.

Figure 24. Participants’ Savings according to Age Group

 71

Figure 25 shows the participants’ savings according to monthly income range. Out

of the 2 participants that earn ₱15,001 - ₱20,000 per month, 1 of which saves 2,001 - ₱3,000

while the other one saves ₱3,001 - ₱4,000. Out of the 4 participants that earn ₱20,001 -

₱25,000 per month, 1 of which saves nothing, the other one saves below ₱2,000, ₱4,001 -

₱5,000, and ₱7,001 - ₱8,000 per month respectively. Out of the 7 participants that earn

₱25,001 - ₱30,000 per month, 2 of which saves below ₱2,000 and ₱5,001 - ₱6,000, 1 of

which saves ₱2,001 - ₱3,000, ₱4,001 - ₱5,000, and ₱6,001 - ₱7,000 per month respectively.

Out of the 8 participants that earn ₱30,001 - ₱35,000, 2 of which saves nothing and ₱3,001

- ₱4,000 respectively, and 1 of which saves below ₱2,000, ₱2,001 - ₱3,000, ₱4,001 -

₱5,000 and ₱5,001 - ₱6,000 per month respectively. Out of the 6 participants that earn

₱35,001 - ₱40,000 per month, 2 of which saves nothing, 1 of which saves below ₱2,000,

₱3,001 - ₱4,000, ₱4,001 - ₱5,000, ₱6,001 - ₱7,000, ₱7,001 - ₱8,000 and ₱15,001 and above

per month respectively. Out of the 5 participants that earn ₱45,001 - ₱50,000 per month, 1

of which saves nothing, while the remaining 4 participants save ₱3,001 - ₱4,000, ₱4,001 -

₱5,000, ₱6,001 - ₱7,000, and ₱8,001 - ₱9,000 per month respectively. The only participant

that earns ₱50,001 - ₱55,000 per month saves ₱9,001 - ₱10,000 per month. The participant

that earns ₱55,001 - ₱60,000 per month saves below ₱2,000. Out of the 3 participants that

earn ₱60,001 - ₱65,000 per month, 1 of which saves below ₱2,000, the other 2 remaining

participants saves ₱5,001 - ₱6,000 while the other one saves ₱10,001 - ₱15,000 per month.
 72

Figure 25. Participants’ Savings according to Monthly Income Range

Figure 26 shows the participants’ savings according to number of dependents. Out

of the 7 participants that have no dependents, 14.29% saves below ₱2,000, ₱3,001 - ₱4,000,

₱4,001 - ₱5,000, ₱5,001 - ₱6,000, ₱9,001 - ₱10,000, ₱10,001 - ₱15,000, and ₱15,001 and

above per month respectively. Out of the 6 participants that have 1 dependent, 16.67%

saves nothing, below ₱2,000, ₱3,001 - ₱4,000, ₱5,001 - ₱6,000, and ₱8,001 - ₱9,000 per
 73

month respectively. Out of the 11 participants that have 2 dependents, 18.18% saves

nothing, 27.27% saves below ₱2,000, 9.09% saves ₱3,001 - ₱4,000, 18.18% saves ₱4,001

- ₱5,000, and 9.09% saves ₱6,001 - ₱7,000 per month. Out of the 8 participants that have

3 dependents, 37.50% saves nothing, 12.50% saves below ₱2,000, ₱4,001 - ₱5,000, ₱5,001

- ₱6,000, ₱7,001 - ₱8,000, and ₱10,001 - ₱15,000 per month respectively. Out of the 3

participants that have 4 dependents, 33.30% saves nothing, below ₱2,000, and ₱2,001 -

₱3,000 per month respectively. The participant that has 5 dependents save ₱5,001 - ₱6,000

per month, while the participant that has 6 dependents saves ₱10,001 - ₱15,000 per month.

Figure 26. Participants’ Savings according to Number of Dependents

 74

Comparison of Participants’ Savings

Figure 27 shows the comparison of the savings of the participants according to their

civil status. The participants who are married have an average savings amount of ₱3,195.65

while the singles have an average savings amount of ₱6,321.43. Married couples tend to

purchase a house or condo within a couple of years. This allows them to accrue equity–a

positive thing–but also forces them to incur big expenses, like household maintenance,

homeowners and life insurance, and furniture (Riper,2006).

7,000.00

6,000.00

5,000.00
Saving range

4,000.00

3,000.00

2,000.00

1,000.00

0.00
Married Single
Civil Status

Figure 26. Comparison of Savings according to Civil Status

 75

Figure 28 depicts comparison of savings according to gender It shows that males

have an average savings amount of ₱94,000 and the female have an average savings amount

of ₱68,000. Males tend to save more than females. Women hold lower levels of wealth and

have significantly lowers earnings than men (Gottshalck,2008; Bureau of the Census,

2007). Persistent gender gap earnings lead women to accumulate less wealth even when

holding savings rare constant (Blau & Kahn, 1997,2000). Evidence also suggests that

gender different in information processing may play a role in different financial strategies

(Graham, Stendardi, Myers, 2002).

5,000.00

4,800.00

4,600.00
Saving range

4,400.00

4,200.00

4,000.00

3,800.00

3,600.00
Male Female
Gender

Figure 28. Comparison of Savings according to Gender

 76

Figure 29 shows the comparison of savings of the full-time Liceo teachers

according to their age group. The age group who got the lowest average amount of savings

are the Baby Boomers which is ₱1,750. The participants who are grouped in the Centennial

age group got an average savings amount of ₱3,250. ₱3,358.46 is the average savings

amount of the age group Generation X. The Millennials got an average savings amount of

₱4,588.23. And lastly, the Silent Generation has an average savings amount of ₱12,500

which is the highest average of savings.

14,000

12,000

10,000
Saving rangee

8,000

6,000

4,000

2,000

0
Silent Generation Baby Boomers Generation X Millennials Centennials
Age Group

Figure 29. Comparison of Savings according to Age Group

 77

Figure 30 depicts the comparison of the average savings amount of the participants

according to their income range. The average savings amount of participants with the

income range ₱55,001-₱60,000 is ₱1,000; which is the least amount of savings. The

participants with the income range of ₱30,001-₱35,000 have an average savings amount of

₱2,562.50. Participants with the income range of ₱15,001-₱20,000 have an average savings

amount of ₱3,000. The participants with an income range of ₱20,001-₱25,000 have an

average savings amount of ₱3,250. Participants with the income range ₱25,001-₱30,000

have an average savings amount of ₱3,785.71. The average savings amount of teachers

with the income range ₱35,001-₱40,000 is ₱4,416.67. The participants with the income

range of ₱60,001-₱65,000 have an average savings amount of ₱6,333.33. ₱8,000 is the

average savings amount of the teachers with the income range ₱45,001-₱50,000. The

participants who have an income range of ₱50,001-₱55,000 has an average savings amount

of ₱9,500; which is the highest of all savings amount.

 78

10000

9000

8000

7000
Saving range

6000

5000

4000

3000

2000

1000

0
Below 10,001 - 15,001 - 20001 - 25,001 - 30,001 - 35,001 - 40,001 - 45,001 - 50,001 - 55,001 - 60,001-
10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000
Income Range

Figure 30. Comparison of Savings according to Income Range

Figure 31 depicts the comparison of savings of the participants according to their

number of dependents. Based on the information that was gathered ₱1,166.66 is the average

savings amount of the participants who have four dependents. The average savings amount

of the participants who have two dependents is ₱2,818.18. The participants who have one

dependent have an average savings amount of ₱3,500.00. The average savings amount of

the participants who have three dependents is ₱4,312.50. ₱5,500.00 is the average savings

amount of the participants who have five dependents. Participants who have no dependents
 79

have an average savings amount of ₱7,714.2. Lastly, the participants who have six

dependents got the highest average of savings amounting to ₱12,500.00.

14000

12000

10000
Saving range

8000

6000

4000

2000

0
0 1 2 3 4 5 6
Number of Dependents

Figure 31. Comparison of Savings according to Number of Dependents

 80

Associative Relationship of Participants’ Savings

Figure 32 shows the associative relationship between the savings and age group of

the participants. The scatterplot depicts that there is no trend and associative relationship

between the savings and age group of participants.

14,000.00

Silent Generation,
12,000.00 12,500.00

10,000.00
Monthly Saving

8,000.00

6,000.00

Millennials, 4,588.23
4,000.00
Generation X,
3,538.46 Centennials, 3,250.00

2,000.00 Baby Boomers,

1,750.00

-
0 1 2 3 4 5 6
Age Group

Figure 32. Correlation of Monthly Savings and Age Group

 81

Figure 33 exhibits the associative relationship between the participants’ savings and

income range. The scatterplot is showing a positive trend. Therefore, the savings of the

participants increases as their monthly income range also increases.

10,000.00
50,001 - 55,000,
9,500.00
9,000.00

45,001 - 50,000,
8,000.00
8,000.00

7,000.00
60,001 - 65,000,
6,000.00 6,333.33
Monthly Saving

5,000.00
25,001 - 30,000, 35,001 - 40,000,
3,785.71 4,416.67
4,000.00

20,001 - 25,000,
3,000.00 3,250.00
30,001 - 35,000,
15,001 - 20,000, 2,562.50
2,000.00 3,000.00

55,001 - 60,000,
1,000.00
1,000.00
below 10,000, -
- 10,001 - 15,000, - 40,001 - 45,000, -
0 2 4 6 8 10 12 14
Monthly Income Range

Figure 33. Correlation of Monthly Savings and Monthly Income Range

 82

Figure 34 shows the associative relationship between the savings and number of

dependents of the participants. The scatterplot does not exhibit any trend – meaning there

is no relationship between the savings of and number of dependents of the teachers.

14000

6, 12500
12000

10000
Monthly Saving

8000
0, 7714.28

6000
5, 5500

3, 4312.5
4000
1, 3500
2, 2818.18
2000

4, 1166.66

0
0 1 2 3 4 5 6 7
Number of Dependents

Figure 34. Correlation of Monthly Savings and Number of Dependents

 83

State of Financial Literacy

Monthly Income Range Estimated amount (median)

a. below ₱10,000 ₱5,000
b. ₱10,001 - ₱15, 000 ₱12,500
c. ₱15,001 - ₱20,000 ₱17,500
d. ₱20,001 - ₱25,000 ₱22,500
e. ₱25,001 - ₱30,000 ₱27,500
f. ₱30,001 - ₱35,000 ₱32,500
g. ₱35,001 - ₱40,000 ₱37,500
h. ₱40,001 - ₱45,000 ₱42,500
i. ₱45,001 and above ₱47,500
Table 1. Estimated amount of monthly income range.

Monthly Income Range from Other Sources of Income Estimated amount (median)
a. below ₱3,000 ₱1,500
b. ₱3,001 - ₱6,000 ₱4,500
c. ₱6,001 - ₱10,000 ₱8,000
d. ₱10,001 - ₱15,000 ₱12,500
e. ₱15,001 and above ₱17,500

Table 2. Estimated amount of monthly income range from other sources of income.

Monthly Expense Range Estimated amount (median)

a. below ₱10,000 ₱5,000
b. ₱10,001 - ₱15, 000 ₱12,500
c. ₱15,001 - ₱20,000 ₱17,500
d. ₱20,001 - ₱25,000 ₱22,500
e. ₱25,001 - ₱30,000 ₱27,500
f. ₱30,001 - ₱35,000 ₱32,500
g. ₱35,001 - ₱40,000 ₱37,500
h. ₱40,001 - ₱45,000 ₱42,500
i. ₱45,001 and above ₱47,500

Table 3. Estimated amount of monthly expense range.

 84

Monthly Savings Range Estimated amount (median)

a. none 0
b. below ₱2,000 ₱1,000
c. ₱2,001 - ₱3,000 ₱2,500
d. ₱3,001 - ₱4,000 ₱3,500
e. ₱4,001 - ₱5,000 ₱4,500
f. ₱5,001 - ₱6,000 ₱5,500
g. ₱6,001 - ₱7,000 ₱6,500
h. ₱7,001 - ₱8,000 ₱7,500
i. ₱8,001 - ₱9,000 ₱8,500
j. ₱9,001 - ₱10,000 ₱9,500
k. ₱10,001 - ₱15,000 ₱12,500
l. ₱15,001 and above ₱17,500

Table 4. Estimated amount of monthly savings range.

Monthly Income Range Monthly Savings Range

a. below ₱10,000 ₱0.20 - ₱2,000
b. ₱10,001 - ₱15,000 ₱2,001 - ₱3,000
c. ₱15,001 - ₱20,000 ₱3,001 - ₱4,000
d. ₱20,001 - ₱25,000 ₱4,001 - ₱5,000
e. ₱25,001 - ₱30,000 ₱5,001 - ₱6,000
f. ₱30,001 - ₱35,000 ₱6,001 - ₱7,000
g. ₱35,001 - ₱40,000 ₱7,001 - ₱8,000
h. ₱40,001 - ₱45,000 ₱8,001 - ₱9,000
i. ₱45,001 - ₱50,000 ₱9,001 - ₱10,000
j. ₱50,001 - ₱55,000 ₱10,001 - ₱11,000
k. ₱55,001 - ₱60,000 ₱11,001 - ₱12,000
l. ₱60,001 - ₱65,000 ₱12,001 - ₱13,000

Table 5. Basis of financial literacy in relation to monthly income range and savings

State of Financial
Participant Monthly Income Overall Income Monthly Savings Literacy
1 ₱32,500 ₱37,000 ₱4,500 illiterate
2 ₱32,500 ₱50,000 0 illiterate
3 ₱22,500 ₱27,000 ₱6,500 literate
 85

4 ₱32,500 ₱37,000 ₱3,500 illiterate

5 ₱47,500 ₱65,000 ₱5,500 illiterate
6 ₱47,500 ₱65,000 ₱1,000 illiterate
7 ₱47,500 ₱65,000 ₱12,500 literate
8 ₱47,500 ₱55,500 ₱1,000 illiterate
9 ₱37,500 ₱55,000 ₱9,500 illiterate
10 ₱32,500 ₱37,000 ₱1,000 illiterate
11 ₱27,500 ₱29,000 ₱2,500 illiterate
12 ₱32,500 ₱34,000 ₱1,000 illiterate
13 ₱27,500 ₱27,500 ₱5,500 literate
14 ₱27,500 ₱27,500 ₱5,500 literate
15 ₱32,500 ₱32,500 ₱2,500 illiterate
16 ₱22,500 ₱22,500 ₱1,000 illiterate
17 ₱22,500 ₱22,500 ₱4,500 literate
18 ₱32,500 ₱32,500 ₱3,500 illiterate
19 ₱47,500 ₱47,500 ₱12,500 literate
20 ₱27,500 ₱27,500 ₱1,000 illiterate
21 ₱32,500 ₱32,500 ₱3,500 illiterate
22 ₱17,500 ₱17,500 ₱3,500 literate
23 ₱37,500 ₱37,500 0 illiterate
24 ₱37,500 ₱37,500 0 illiterate
25 ₱47,500 ₱47,500 ₱8,500 illiterate
26 ₱47,500 ₱47,500 ₱12,500 literate
27 ₱37,500 ₱37,500 ₱17,500 literate
28 ₱22,500 ₱22,500 ₱7,500 literate
29 ₱22,500 ₱22,500 0 illiterate
30 ₱47,500 ₱47,500 ₱6,500 illiterate
31 ₱32,500 ₱32,500 ₱4,500 illiterate
32 ₱17,500 ₱17,500 ₱2,500 illiterate
33 ₱32,500 ₱32,500 0 illiterate
34 ₱27,500 ₱27,500 ₱4,500 illiterate
35 ₱32,500 ₱32,500 ₱5,500 illiterate
36 ₱32,500 ₱32,500 0 illiterate
37 ₱27,500 ₱27,500 ₱1,000 illiterate
Table 6. Financial literacy of the participants.
 86

Figure 35 indicates the financial literacy of the participants. Based on the data that

was collected, 27.03% or 10 of the participants were concluded as literate and 72.97% or

27 of the participants were classified as illiterate. It was concluded that most of the

participants were illiterate for the reason of having a low income range and having a big

number of expenses and number of dependents at the same time. As studied by Gale and

Levine (2010) financial literacy is the ability to make informed and effective decisions

about using and managing wealth and money. Atkinson and Messy (2012) also define

financial literacy as a combination of awareness, knowledge, skills, attitudes and behaviors

necessary to make sound decisions to reach individual financial wealth.

27.03%

72.97%

Literate Illiterate

Figure 35. Financial Literacy of Participants

 87

Figure 36 shows the percentage of the literacy of the participants in terms of their

civil status. 8.70% of the married participants are literate, while the remaining 91.30% are

illiterate. 57.14% of the single teachers are literate, while 42.86% of the single teachers are

illiterate. From the results, it could be derived that a greater percentage of single teachers

are literate compared to the married ones. According to Mattia (2015), married people are

more likely to lack financial knowledge.

25

91.30%
20
Number of Participants

15

10 57.14%
42.86%

5
8.70%

0
Married Single
Civil Status
Literate Illiterate

Figure 36. Financial Literacy of Participants according to Civil Status

 88

Figure 37 shows the percentage of the literacy of the participants according to their

age group. 100% or all of the participants who belong in the Silent Generation are all

literate. 100% of the participants in the age group of Silent Generation are illiterate. 84.62%

who belong in the Generation X is illiterate and the remaining 15.38% of the participants

who belong in the group are literate. 35.29% of the participants in the Millennial are literate

and 64.71% are concluded illiterate. 50% or half of the participants who belong in the age

group Centennial are literate and 50% are illiterate. A study states that both objective

financial literacy and subjective financial literacy increase with age even after controlling

for socio-demographic and financial factors (xiao,2015). Financial literacy is an important

component of sound financial decision-making, and many young people wish they had

more financial knowledge (Lusardi and Mitchell 2006, 2007, 2009).

14

12
84.62%

10
64.71%
Number of Participants

6 35.29%

100% 50% 50%

2

100% 15.38%
0 %
Silent Generation Baby Boomers Generation X Millennials Centennials

Literate Illiterate
Age Group

Figure 37. Financial Literacy of Participants according to Age Group