University of the East – Manila

Senior High School

Role of Personal Finance towards Managing of Money of University of the East

Manila – CBA Students

A Research Study Submitted to the Senior High School Department

College of Education

University of the East

Manila

Desullan, Ladymae A.

Juan, Marc Christian G.

Lion, Andrea Denise M.

Mijares, Ciara Rheyne

Timtim, Laila Jane

August 2019
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APPROVAL SHEET

This thesis entitled “Role of Personal Finance towards Managing of Money of

University of the East Manila – CBA Students” submitted by
___________________________________ in partial fulfillment of the requirements
for the Quantitative Research, has been examined and is hereby recommended for
Final Oral Examination on __________________.

Panelists: Signature Date

Prof. ______________ _____________

Member

Prof. ______________ ____________

Member

Prof ______________ _____________

Member

……………………………………………………………………………………………..

Approved on _________ by the panel of examiners with a grade of

_________.
……………………………………………………………………………………………..
Accepted and approved in partial fulfilment of the requirements for the
Quantitative Research.
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CERTIFICATE OF ORIGINALITY

I hereby acknowledge that this submission is my own work and that, to the best of
my knowledge and belief. It contains no material previously published or written by
another person nor material which to a substantial extent have been accepted for the
award of any other degree or diploma of a university of other institute of higher
learning, except where the due is acknowledge is made in the text.

I also declare that the intellectual content of this research is the product of my own
work, even though I may have received assistance from others on style,
presentation, and language expression.
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ABSTRACT

Title :

Researcher :

Strand : Accountancy and Business Management

Adviser : Mr. Kim Tony Dizon

Institution : University of the East- Manila

Subject : QUANTITATIVE RESEARCH

200WORDS
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ACKNOWLEDGMENT
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DEDICATION

This dissertation paper is lovingly dedicated to

Our family and parents.
Thank you for all the love, support and for being our inspiration…
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TABLE OF CONTENTS

Title Page ................................................................................. i

Approval Sheet......................................................................... ii
Certificate of Admission to Candidacy………………................ iii
Abstract...............................................................................
Acknowledgment.....................................................................
Dedication............................................................................
Table of Contents..................................................................
Chapter I. INTRODUCTION.................................................
Rationale and Background of the Study....................... ……………...
Theoretical Framework................................................. ……………..
Conceptual Framework................................................ …………...…
Research Paradigm...................................................... ……………….
Statement of the Problem............................................. ……………….
Assumption of the Study……………………………………………...…..
Significance of the Study.............................................. ……………….
Scope and Delimitation................................................ ……………….
Definition of Terms................................................................................

Chapter II. REVIEW OF RELATED LITERATURE.......................................

Chapter III. RESEARCH METHODOLOGY...................................................

Research Design............................................................. …………………….
Sources of Data...............................................................................................
Instrumentation and Data Collection................................................................
Operational Definition of Variables………………………………………...…....
Tools for Data Analysis....................................................................................

Chapter IV. PRESENTATION, ANALYSIS AND

INTERPRETATION OF DATA.....................................................
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Chapter V. SUMMARY, CONCLUSION AND RECOMMENDATION

Summary of Findings.......................................................................................
Conclusion............................................................................................
Recommendation..................................................................................

Bibliography...................................................................................................
Appendices...................................................................................................
Curriculum Vitae............................................................................................
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Chapter 1

INTRODUCTION

RATIONALE AND BACKGROUND OF STUDY

Having a knowledge on Bachelor of Science in Business Administration

(BSBA) can be handy and useful in managing your own money and such. Having a
management skill will be useful in any means of saving or managing your own
money. Being independent is both a privilege and a responsibility. It is hard to
become a responsible person, you cannot achieve it overnight and you need to keep
it in mind and make it as an attitude. One of the responsibilities of a students is
managing their money. Many students are having a hard time in managing their
money. That’s why personal finance is one of the solution for students.(…………..)

Personal financial management helps us to manage the finance of our home

which includes budgeting, saving, investing, debt management and other aspects
related to personal money where by an individual can achieve personal goals (Bimal
Bhatt, 2011). In other words, personal financial management is the process of
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controlling income and organizing expenses through a detailed financial plan.

Learning to keep track of money coming in, and tailoring the use of this money to fit
expenses provides a systematic way and utilizing income (Joseph Wilner, 2009).

Personal finance relates to all financial decisions and activities that a person
could make and undertake. This could include budgeting household incomes and
expenditures, savings, investments, mortgages, insurance and all other decisions
that require money. The most important factor of personal finance management is
financial planning, which should involve analyzing the financial position and setting of
short term (Onyango, 2013). Managing personal finances is a crucial and often
difficult issue (Bennett, 2006).

The importance of personal financial management is, it enables people to

improve standard of living, which leads to good health and financial stress reduces
considerably. Besides that, it also enables the individual to take better financial
decision which reduces poverty, reduces debts and increases savings and
investments (Bimal Bhatt, 2011).

It is important to have good skills of personal finance management in order to

make correct day-t-o-day decisions such as what to buy and what not to buy. This
would help to save lots of money 5 in the long run, as unnecessary products would
be bought not so frequently. Ability to make these decisions more responsibly would
improve the wellbeing of the households. But for all this, there is a need for financial
literacy, which would help understand various financial services and make financial
decisions. Looking into all the approaches towards personal finance might seem
complicated for an individual without financial education, as such people usually do
not understand ways of managing (planning, saving, investing and borrowing) money
as may be necessary from time to time (Greenspan, 2006).

As people grow older, people will realize that they need money in order for
them to get buy what are their needs and wants. And that is the time where you'll be
applying personal finance to be able to manage your money to save. Knowing the
importance of saving money can help people improve their skills in managing their
money.
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The financial systems of the 21st Century have been growing with speed,
sophistication and becoming more complex world over. The economic and social
environment in which people take financial decisions has also changed drastically,
and this change is set to continue with the dynamic and ever changing technology
(Mitchell, 2011).

The role played by governments and employers in managing investments on

behalf of individuals has shrunk significantly in the recent past as a result of changes
in the social support structures across the world. This has increased individuals‟
responsibility in managing their own finances and securing their financial freedom. In
an environment where the range and the complexity of financial products continue to
increase, it is imperative that individuals develop nuanced understanding of the world
of finance to be able to make choices that are most appropriate to their financial
goals and needs. On the other hand, the financial world has become so complex
today when compared to the generation before where a simple knowledge of how to
maintain a checking and savings account at local banks and financial institutions was
more than enough. But now, consumers have to differentiate between a wide range
of financial products and services available in the modern financial market
(Greenspan, 2005).

Financial problems resulting from poor personal financial management is

known to affect individual productivity at the workplace. Garman et al (1996) found
that employees in the United States were stressed about their poor financial
behaviors that impacted negatively on their job productivity. Brown et al (1993) found
that many employees were suffering from stress as a result of money problems.
They observed that money problem behaviors included: over indebtedness,
overspending, unwise use of credit, bad spending decisions, poor money
management and inadequate resources to make ends meet. As a result of these
employee problems, many companies in the United States adopting financial
education at work places aimed at equipping their employees with personal financial
management skills (Brown et al, 1993).

Personal finance is one of basic concepts in science of economics, finance

and management, and general principles of decision making and the management of
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financial resources of the individual and family (Hira, 2009). Personal finance refers
to as every financial decisions and activities that one's can make and undertake.
This is include budgeting and expenditures of incomes, savings, investments,
mortgages, insurance and all of financial decisions (Obago, 2014). A solid
understanding of personal finance will offer person's personal financial satisfaction
and a better chance of success in facing the financial condition, problems, and
opportunities of life, For instance paying minimal credit costs, purchasing a car with
low prices, buying appropriate and fairly priced insurance (Garman and Forgue,
2012: 3).

Financial management has considered as the set of behaviors performed

through the planning, implementing, and evaluating including in the cash, credit,
investment, insurance and retirement, and estate planning (Parrotta and Johnson,
1998: 60). Kholilah and Iramani (2013: 70) define personal financial management
behaviors as a one's ability to manage of daily financial funds through planning,
budgeting, controlling, finding, and saving. In other words, the personal financial
management behavior is relates to a person's financial responsibility regarding a way
of financial management who involves managing of money and other assets of ways
considered productive (Ida and Dwinta, 2010). Therefore, the financial management
abilities has become increasingly in today’s since an individual have to plan for long-
term investments for old age and expenses of needs (Falahati and Paim, 2011). The
factors that can effect to behaviors in general are knowledge and attitude (Parrotta
and Johnson, 1998). This requires the development on knowledge and skill to
advantage of financial opportunities, solve of problem financials, achieve self-
satisfaction, and provide security in financial terms. Financial management behavior
can be seen how well an individual to management of savings and other spending
(Hilgert et al, 2003).

Thereby, every individual have to responsible in planning and actualizing their

financial future, and finally will make their personal financial management behavior
can be to optimal. O'Neill and Xiao (2012) indicate the personal financial
management behavior becomes three type are budgeting, spending, and saving.
This study aims to know how the college students manage their money with the help
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of personal finance. This study will show the role of personal finance in spending and
saving their own money.
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THEORETICAL FRAMEWORK

Demands Decision Making Met demands

Values Implementing Achieved goals
Attitudes Use of resources Altered resources
Knowledge Behaviors Life satisfaction
Personal
Characteristics

Inputs Throughputs Outputs

Feedback
(positive or negative)

___________________________Environment______________________________

Figure 1. Family Resource Management Model

The theoretical construct predominantly used when studying financial

decisions and resource management practice is systems theory (Goldsmith, 2005).
Systems theory is self-reflexive and is a cybernetic input-throughput-output-feedback
model (Maloch & Deacon, 1966). The researchers used family resource
management theory, based in systems theory, to understand the financial
management practices of college students.

The four stages in the family resource management model, as developed by

Deacon and Firebaugh (1981), explain how people make financial decisions and
develop financial behaviors. The stages are inputs, throughputs, outputs, and
feedback loop (see Figure 1).
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CONCEPTUAL FRAMEWORK

PERSONAL MANAGING OF
FINANCE MONEY

Figure 2. Conceptual Framework

Personal Finance is used to help people in managing his or her money. It is

important to individuals especially to students to improve standard of living and
enables them to make a better financial decision. However, poor financial
management is known to affect individual productivity and may have hard time to
manage their funds that’s why this study aims to learn how individual especially
college students save their money with the help of personal finance

Saving Money is the heart of good financial management. Individuals save

money in order to become financially secure and have a safety net in case of
emergencies. Some individuals are having a hard time on how to start saving their
money.

Personal Finance is now taught in schools wherein it can help students have
knowledge about that. With the help of personal financial management individuals
especially students might use their knowledge to start saving their money.
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RESEARCH PARADIGM

Input Process Output

University of the Descriptive
East – Manila Research
Campus CBA Design
College Role of Personal
Students Survey Finance towards
Questionnaires Managing of
Personal Money of
Finance Descriptive
University of the
statistics East - Manila
Managing of Percentage CBA College
Money Students
Measure of
Central
Tendencies
Level of
Measurements

Figure 3. Research Paradigm

The researchers opted to use Input-Process-Output diagram. It shows the

whole process for the whole paper. The respondents of this study are CBA Students
of University of the East – Manila Campus. Profiling of respondents are gathered in
means of their age, gender, weekly allowance and their year level.

The researchers used descriptive research design for the study. Survey
questionnaires were provided to gather data. Descriptive Statistics was used to
summarize the given data set. Percentage and Measure of Central Tendencies were
used in computing and interpreting the gathered data.

The output of this descriptive research study is Role of Personal Finance

towards Managing of Money of University of the East – Manila CBA Students. This
study shows the role of personal finance to the CBA students towards saving money.
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STATEMENT OF THE PROBLEM

The purpose of the study is to answer the following questions:

1. What is the level of the students’ personal financial literacy in terms of

managing of money?
1.1 Personal Finance
1.2 Saving Money
1.3 Spending Money

2. Does the personal finance fulfill its role in managing of money of the
college students?
2.1 Personal Savings

HYPOTHESIS:

Ha: The personal finance role is used and takes place in saving of money of the
college students.

Ho: Some of the students lack knowledge regarding on management of their money.
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SIGNIFICANCE OF THE STUDY

Benefiting the study are the various sectors as follows:

For the Students This study will provide the students with some knowledge on how
to budget their money. And it will also enhance the student knowledge on business
courses and will enable them to save more.

For the Parents. This study will help the parents to be knowledgeable in terms of
saving money of their own children. It will also benefit the parents by sharing the
knowledge or information in the field of saving money.

For the Future Researchers The ideas presented in this study may be used as a
reference data in conducting new researches or in testing the validity of other related
findings. This study will also serve as their preference that will give them background
or overview on the said topic.
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SCOPE AND DELIMITATION

The scope of this study focuses on the role of personal finance of the students
of College of Business Administration particularly the BSA and BSBA students. For
the researcher’s to gather accurate data the respondents should have a background
on business course or a student of CBA program.

The aim of this study is to determine on how the personal finance play the role
for college students when it comes in managing their money. And if this helps them
to be financially responsible by having a knowledge to personal finance.

This study will identify if a student acquire knowledge of personal finance to

achieve their responsibilities on managing their money.

The study is delimited to high school students in the University of the East –
Caloocan Campus. The research primarily focuses only to CBA students of the
University of the East – Manila, because they are the respondent of the study.
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DEFINITION OF TERMS

1. Bachelor of Science in Business Administration (BSBA) - The college

students that took BSBA was part of the study. College students with back ground of
BSBA were surveyed because they are relevant to the study. And also they are very
knowledgeable in finance and such. The researchers used BSBA students because
they give accurate and efficient information to the researcher. And the researchers
can rely to the BSBA students because they are very familiar and used to personal
finance. Lastly, the researchers used any relevant information or data from the BSBA
students.

2. College Students - The researchers used the college students because they are
the participants and the key to the research paper. The college students were used
to assess the necessary information or data that the researchers needs. The college
students that took Business Administration courses were asked because they are
one of the most important variable in the study. And also they are the most
knowledgeable in terms of financing and such. And college students helped the
researchers to know more knowledge about financing and personal finance. Lastly,
Researchers used college students as one of the basis of the study because they
give reliable and relevant information to the study.

3. Financial Literacy - Financial literacy is used by the researchers as the basis for
the independent variable of the study. Financial literacy is used to help as the guide
to make an effective decision in financing. The researchers used financial literacy to
help the college students on how be effective in finance. The researchers also used
financial literacy as a basis of the study so that it can help college students to
understand more about finance. The researchers also used financial literacy
because it has great impact on the knowledge of college students. The researchers
also used financial literacy because it has connection and impact on personal
finance.

4. Financial Management - It is used to plan, organize and controlling financial

activities and it used to oversee and govern its income, expenses, and assets and
ensuring sustainability. The researchers used financial management because it
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helps individual to properly manage the finance in their home which includes
budgeting, saving, investing, debt management and other aspects related to money
where by an individual can achieve a specific personal goals. The researchers also
used financial management because it develop professional skills and climb the
career ladder. You can quickly in-depth knowledge and great aptitude skills of
financial management.

5. Investment - The researcher used this term because the term investment is part
of savings of individuals which important and useful in the context of present-day
conditions of the respondents in their life. The researchers used this term to know
how responsible the respondents for planning their investment during their crucial
days. The notion of investment used to come to respondents mind since the first day
having money in hand. The reason for investment may vary, but they need to be
investments, not saving money and keeping the same in their pocket or in hidden
wallet in their wardrobe. Keeping money hidden is simply dead money that has no
value.

6. Management skills - Management skill is used to assess the needs beneficiary of

the study. The researchers use management skill to properly disseminate the
necessary information to the beneficiary. It was also used by the researchers to help
the beneficiary to understand. It is also used by the researchers to guide the
beneficiary on how to properly save money. And it is also used by the researchers to
help on how it will be effective. And lastly it used by the researchers to get more
relevant and accurate data by applying management skills.

7. Personal Finance – It is used as the independent variable of this study. Personal

Finance is used to perform in budgeting, saving and spending monetary resources
over time. The researchers used this to relates to all financial decisions and activities
that a person could make and undertake. The researchers used this to gain a
knowledge on how to control the personal and family finances so that it helps us to
prevent from damaging a financial stability. Personal Finance is used to help the
respondents and other people in managing his or her money. It is important to
individuals especially to students to improve standard of living and enables them to
make a better financial decision.
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8. Planning - used to achieve an objective to do something. The researchers used

this to have better financial understanding can be achieved when measurable
financial goals are set. It is used in giving a whole new approach to respondents’
budget and improving control over their financial lifestyle. The researchers also used
this because it helps people in concentrating their efforts on the most jobs rather
than wasting time on the lesser important work. It is also used to help the
management in adopting and adjusting according to the changes that take place in
the environment.

9. Saving – is used to imply income through investing in different investments. The

researchers used saving because it has forceful contact when it comes to money
and to help the respondents to choose saving over spending. It bears no risk or a
slight of risk at all. It is important that the respondent has a knowledge when it comes
saving because this is one of the part of having an investment through saving. The
researchers used this to help individual to become financially secure and provide a
safety net in case of an emergency.

10. University of the East, Manila - The college students of the University of the
East were surveyed by the researchers. The University of the East was used by the
researchers because they are one of the best university in Manila, Philippines. And
the students are known to be knowledge in the field of business. Researchers also
used the university because they have a lot of students in Manila Campus. And the
University of the East - Manila students is friendly and very approachable. Lastly,
because of the status and achievements of the university making it as a very reliable
source of information.
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Chapter 2
REVIEW OF RELATED LITERATURE AND STUDIES

LOCAL LITERATURE
TITLE
The study by William (2013) determined the financial literacy of the selected
micro entrepreneurs in Davao City. The results revealed a significant influence of
educational attainment on the financial literacy. The result however showed that
gender cannot predict the financial literacy level among micro entrepreneurs.
Financially illiterate households make poor choices that affect not only the decions
makers themselves, but also their families and the public at large (Gale & Levine,
2O10) Financial education is the process by which people does and can play in the
lives of low-income individuals, and know where to go and act to improve their
present and long term financial well-being. Financial education programs should be
encouraged to promote financial awareness and encourage people to make better
financial decisions. (Maria,2013)
This literature study is closely related to the current study and it relates
students particularly the college students on how financial literacy plays the role
when it comes in financial decision-making. The financing skill, the third measure of
financial literacy, is the ability to obtain capital from outside sources with minimal
cost and payoff obligation. William(2013).

TITLE
The study of J. T. C. Bona et al. (201 8) was to look at the factors affecting
the spending behavior among college students of Surigao del Sur State University in
Cantilan, the northernmost municipality in the province of Surigao del Sur,
Philippines in terms of attitude, family background, lifestyle and financial knowledge.
Subsequently, the study was done to better understand how these factors influenced
the spending conduct of college students and their financial behavior. The results of
this study revealed that college students’ spending behavior are greatly influenced
by their family background. Parents play a key role in shaping not only the attitudes
about financial management but also life attitudes in general of their children. It is
therefore critical that young individuals begin to learn about finance during
adolescence for them to have the best possible chance to be successful in
adulthood. Having a good financial knowledge is not enough.
This literature relates on the current study in terms on how college students
conduct their financial responsibility towards their personal goals in managing their
own money.
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CONCLUSION
Financial literacy is the knowledge and understanding of various financial
areas including topics related to managing individual’s personal finance, money and
investing. Financial literacy really matters a lot especially when it comes in financial
decision making and in developing persons towards financial stability. In fact, a lot of
studies conducted to determine the financial literacy of different college students ad
individual faced struggles on financial decision-making. This literature summarizes
and shows on how financial literacy plays the vital role in every individual.

FOREIGN LITERATURE

Financial Literacy among Senior High Students

The study of Opoku (2015) who assesses the level of financial literacy on
Senior High Students in Ghana reveals the results that the students lacked
knowledge about personal finance and it leads to low level of financial literacy.

In this case, if you have a low level of financial literacy there is a tendency that
you will not take seriously saving money for yourself. And you can’t handle money in
a right way.

Personal Financial Literacy among University Students (2015 to)

Based on the study of Nidar & Bestari (2015) the factors that have significant
influence on the personal financial literacy of students at the University are
knowledge of parents, pocket money, education level, faculty, parent’s income, and
property insurance. However, they need to increase their financial education for
students that comes with low category and therefore needs to be improved.

The study simply says that personal finance is not being applied for the
University students and how they apply it is based on what they have for that day.
They apply personal finance when they need to save money or when their money is
just enough.

Personal Financial Management

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Taking charge of planning and managing our finances and putting it into
practice is very important for every individual. Knowing how to manage well their
finances can lead to a happy life (Thulasimani Munohsamy, 2015).

Managing money is really important for each and every one of us. For you to
have a good life/ happy life you should know how to handle money in a nice way so
that in the end there’s no problem when it comes to money.

Financial Literacy among University Students: A Study of Guru Nanak Dev

University,

According to the study of Kaur (2015) the financial literacy level is fairly good
on the students that it would be helpful in addressing the issue of financial literacy
among students and has nothing to do with their demographic profile.

Even though the study was just an attempt it is good that the result shows that
students are aware with financial literacy. Having enough knowledge about financial
literacy will help them to manage their own money in a good way.

The Impact of Financial Literacy on Individual Saving: An Exploratory Study in

Malaysian Context

According to Tabiana (2013) the level of financial literacy had a significant and
positive impact on individual savings. In addition, saving regularity, gender, income
and educational level of influenced the probability of saving positively.

Trends in Spending and Money Management Practices among Students of

Kerala

The study of R. Manju (2016) examines the spending patterns and

consumption preferences of students and their practices of money management.
The study reveals that major source of income for most are their parents. Also the
study reveals that the practices of money management – utilizing pocket money in a
planned manner, the priorities of money spending, budgeting and saving habits
among students are hope worthy.
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Moreover, a lot of the student’s money is coming from their parents. When it
comes to their practices, students are doing well because they know how would they
manage and spend their money in case of their needs.

Financial Management Issues of College-Aged Students: Influences and

Consequences

Widener (2017) when it comes to money, college students have a bit of a

reputation involving low income, irresponsible spending and overwhelming debt
loads. Researchers revealed that students suffer from immediate

Financial Literacy in Nepal: A Survey Analysis from College Students (2015 or

2013)

The study examined the financial literacy: the impact of demographic,

educational and personal characteristics on financial literacy on college students.
The result shows that the college students in Nepal are knowledgeable in basic level
of finance. They also concluded that their financial knowledge is determined by their
family income, age, stream of education, type of college they study and their
financial attitude. (Thapa & Nepal 2015)

Therefore, knowing how well they know financial literacy can help them to
improve their savings and for their future to be in a right path. The way they save
money is totally based on their experiences and in that situation they can start
applying how to save money or spend it right

Effect of Financial Literacy and Parental Socialization on Students Saving

Behavior of Bangladesh

According to the study of Mabia Khatun (2018) savings is one of the crucial
wheels of economic growth and university students are the peddler of that wheel.
The study focuses on determining the relationship between saving behavior and
financial literacy. It is found that financial literacy and parental socialization has
positive effect on saving behavior and parental socialization can affect savings
behavior more than financial literacy.
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Therefore, parental socialization are way better in terms of encouraging

students to save money and they are really helpful for the students saving behavior
to save money and know how to spend money in a right way.

Determinants of Saving Behavior among the University Students in Malaysia

According to the study of Thung et al., this study aims to include several
factors in order to be more accurate in determining the university students saving
behavior and investigate whether financial literacy, parental socialization, peer
influence and self-control have significant influence on the saving behavior of
university students in Malaysia by applying the Theory if Planned Behavior. The
findings shows that all the factors have positive relationship with saving behavior
while parental socialization has the greatest impact on saving behavior among the
four independent variable.

It shows that parental socialization is more helpful when it comes to the

students because it’s their parents who are really pushing and guiding them to save
money for themselves.

CONCLUSION

It is really important to know the meaning and importance of personal finance or

financial literacy to make people’s life better and for them to not worry on how would
they manage their money. Some studies had positive results because most of the
students know the importance of financial literacy and the way for them to know how
to save money is by their pocket money. Also some of the studies had a low level of
financial literacy because they don’t know how manage their own money. When the
study falls to negative result, it means that students don’t know how to limit
themselves when it comes to spending their money to something they want so they
became irresponsible in managing their money.

LOCAL STUDIES
According to Aldaba et al., (2010) Finance is a critical factor for
competitiveness and the ability to exploit and participate in the global economy, as
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well as taking opportunities arising from regional integration. The paper focuses
mainly on the access to finance issues confronting SMEs in the Philippines.

As claimed by Nangia and Vaillancourt, access to finance has remained one

of the most critical factors affecting the competitiveness of MSMES. Many are unable
to qualify for bank loans because they lack the necessary track record and collateral.
Moreover, most do not have the financial expertise to manage a healthy cash flow.

According to the researcher Rhine &Niederauer (2010) it states that Financial

literacy topics such as record keeping, budgeting, personal finance and savings were
viewed to be more important to lower-income individuals. This suggests that financial
educators should not only teach how to save or ways to save, but also the why’s to
save.

In connection with the study of Uddin, Chowdhury and Zakir

(2011)Budgeting, on the other hand, refers to the expenditure planning and cash
flow analysis. Males are more knowledgeable financially than females

In this study said by Al Tamimi and Kalli (2010) Also, those who have low
financial literacy have low education Lusardi (2010) Basedon the survey 31% had
made financing requests (defined as any request for borrowing, capital leases,
government grants and equity financing)

Morever as claimed by Borodich et al., (2010)Good business leads to

competitiveness in the globalized community.

In connection with the study of Niederauer (2010) Lack or no financial literacy,

cautioned, would lead to shut down of the business. Thus, a good financial
foundation of the entrepreneurs is also a significant barometer of the success and
growth of the enterprises in a competitive business environment.

According to the researcher named Aldaba et al., (2010) indicated that

financing constraints have remained one of the most critical barriers affecting SME
growth.
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CONCLUSION
Personal finance is a term that covers managing your money and saving. This
study aims to investigate the determinants of financial knowledge of college
students. College students needs to know how to save and budgeting their money by
having a financial knowledge. According to Remund (2010) Financial literacy is
“having the knowledge, skills and confidence to make responsible financial
decisions". In additional financial knowledge alone is not enough to become
financially literate, but one needs to have financial skills and confidence which could
translate to responsible decision making. Moreover, having discipline and good
decision making can help to spend less and save more.

FOREIGN STUDIES
TITLE

In the Study of Lusardi and Mitchell (2014), Financial literacy refers to an

individual’s abilities and skills to manage financial problems and make informed
decisions that benefit his or her personal financial well-being, including retirement,
investing, and loans, etc. Over the past several years, an increasing number of
researches were done to evaluate the importance of financial literacy and financial
education

Moreover, Financial Literacy refers to person’s financial knowledge or ability

to manage their personal funds and financial problem and such. Therefore, financial
literacy benefits a person to make a wise decision in managing the person’s personal
finance and evaluate good decision for investing, saving and managing of funds.

From: Literacy

According to Mahdzan and Tabiani (2013), increasing financial literacy and

capability promotes better financial decision-making, thus, enabling better planning
and management of life events such as education, housing purchase, or retirement.
This is particularly more relevant for college students.

They found in this study that financial literacy enables the person to make a
wise decision in terms of financial planning and managing their own funds. It
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prepares the students to have a future proof financial decision and make a good
investment despite being inexperience.

TITLE

According to the Researcher OECD (2011), helping young people by

understand their financial issues is quite important, as younger generations are likely
to face ever increasingly complex financial products and services. They are also
more likely to bear more financial risks in adulthood than their parents, especially in
saving, planning for retirement and covering their healthcare needs

Moreover, understanding financial issues and such enables a person to be

prepared in the future. The downside of financial such as the issue build up the
person to be financial literate. It helps a person to be independent in the future in the
field of finance.

From: Financial literacy in Nepal

According to Gathergood (2012), Having a poor financial knowledge will also

increase individuals’ financial burden of debts that positively associate with
nonpayment of consumer credit.

Therefore, having a low financial knowledge or literacy helps the person to

become more productive and creative in the field of finance. It motivates them to
think wise and make a wise decision to be able to gain more money. It benefits a
person to strive hard for their own good and to be able to sustain the person’s own
needs.

TITLE

According to Sam, et. al (2012), in their study found that

attending/participating in financial education program was not statistically significant
with undergraduate students’ financial management behavior

Moreover, it states that financial program is dependent to person’s knowledge

or literacy. It varies depending on person knowledge, experience and wise decision
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that he/she makes. Person’s individual management skill depends on financial

literacy, knowledge or it can depend on experience.

From: Social Influences

According to (Worthy et al. 2010; Xiao et al. 2009) Developing positive

financial behaviors during the college years increase an individual's chance of
attaining a better quality of life later in life.

Moreover, Having stable financial behaviors secures and prepares the

person's individual saving and person towards better life. It also guaranteed that
having good financial behaviors will make a individual have strong and steady future
later on.

From: Financial behavior

According to Norman (2010) financial education refers to knowledge or an

understanding on the importance of money and the use of money, it answers the
question ,why spend on this as opposed to that. It can literally be summed up as the
wise use of money. Financial literacy is the ability to understand finance. More
specifically, it refers to the set of skills, and knowledge that allow an individual to
make informed and effective decisions through their understanding of finance.

Furthermore, It clarifies that financial education is broad and refers to the

understanding and relevance of money. Essentially financial literacy refers to the
skills, knowledge and understanding of money and making a wise and effective
decision.

From: determinates of university working students

According to (Hilgert et al. , 2003 ; Hira, 2012; Huston, 2012) Most of the
current literature concerning financial literacy seeks to raise the aggregate level of
financial knowledge, because a number of studies have found that higher levels of
financial knowledge are often associate with more desirable financial behaviours,
which in turn contribute to higher levels of financial well-being.
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Moreover, financial literacy develops a person's understanding of financial

which results to a better life later on. With the increasing of financial literacy it
develops a person's individual into a good financial decision. Having said that it
develops and it improves that understanding of financial literacy and financial
behaviours, which results into wise decision making

From: earlier financial literacy

According to Robb et al. (2012), Greater financial knowledge has also been
associated with the use of financial professionals in making decisions.

Moreover, Having great Financial Knowledge is great in all aspects of finance,

and it is also connected in decision making of the financial professionals. With that
being said, having Financial knowledge helps a person manage her/his own
personal finance ease and make a wise decision that will help a person grow in the
field of finance.

From: Literacy and emergency savings

CONCLUSION

Personal Literacy refers to Person’s Individual Managing skills in terms of financial

aspects. Such as saving, investments, loans, etc. This study summarizes that having
Financial Literacy is a great ability and skill to have. Also Financial Literacy promotes
and prepares good financial decision making and managing of one’s life especially
college students. Moreover, the understanding of Financial issues is very important
for the college students because they are more likely to experience Financial issue
at first hand in the future. Besides Having a poor financial knowledge will also
increase individuals’ financial burden of debts that positively associate with
nonpayment of consumer credit ( GatherGood ,2012).

Furthermore, Attending Financial program is not associated with Financial

behavior. Because Financial program is dependent to financial literacy, means that
improving understanding of financial aspects varies on person’s individual
management skills, planning ability and good financial decision-making. Additionally,
developing positive financial behavior increases the chance of having a good life in
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the future. Because being discipline and aware in financial decision result in having
to spend less, and saving more instead. Not to mention Financial Education is an
aspect of understanding the use of money. Moreover, having financial knowledge is
very important and relevant to the decision making of the professionals. Therefore,
People with financial literacy tends to have good financial-decision making and
increase the quality of life of a person in the future.

SYNTHESIS
In contrast to the study of the researchers, the related literatures and studies
focused on finance, particularly about personal finance, financial literacy and
financial knowledge. It was clearly explained
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Chapter 3
RESEARCH METHODOLOGY
RESEARCH DESIGN
The study used Descriptive Research design and it aims to study the role of
personal finance towards managing of money of CBA students. The researchers
used the statement of the problem as framework in formulating the survey
questionnaire of the study which provides questions that will measure the role of
personal finance of the CBA students towards managing of their money. The
researchers used the stratified random sampling to gain an equal sample in the
courses under CBA program. The gathered data was computed and interpreted with
a quantitative approach such as the Percentage, Measure of Central Tendencies,
and Weighted Arithmetic Mean. The treated data was illustrated and showed through
a table and the results were discussed afterwards which helped the researchers
come up with a conclusion and recommendation for the study.

SOURCE OF DATA
The researchers used the answers of the respondents on the surveys as the
primary source of data. The data collected from the respondent is accurate and
precise for the researchers used validated questionnaires from the study of
Sagdullas (2016) entitled Personal Budgeting . To support the research, the
researchers have taken some ready information from journals, online articles, and
books.
The researchers used 100 respondents from the College of Business
Administration students at the University of the East - Manila. The College of
Business Administration is the business program of University of the East – Manila;
Bachelor of Science in Accounting (BSA), Bachelor of Science in Managing
Accounting (BSMA), and Bachelor of Science in Business Administration (BSBA) are
the courses under the CBA program of University of the East – Manila. The
researchers got an equal sample in each course with the use of stratified random
sampling technique. The The College of Business Administration students answered
the questionnaire provided by the researchers to know the role of personal finance
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towards managing of money of the college of business administration students at the

University of the East- Manila.

INSTRUMENTATION AND DATA COLLECTION

The researchers made use of the questionnaires from previous studies of Parotta
(1996) entitled
The researchers used survey questionnaire as the research instrument. The
survey questionnaire consisted of ten (10) questions, five (5) questions for Personal
Finance Management and five (5) questions for their Perception of their Financial
Literacy, based from the statement of the problem and was in Likert scale with
values from 1 being the lowest and 5 being the highest. 1 for “Rarely”, 2 for
“Infrequently, 3 for “Moderately”, 4 for “Frequently” and 5 for “Always” for the
questions for measuring their Personal Finance Management. For the questionnaire
to know their Perception towards their Financial Literacy is consist of values from 1
being the lowest and 5 being the highest- 1 for “Strongly Disagree”, 2 for “Disagree”,
3 for “Neutral”, 4 for “Agree”, and 5 for “Strongly Agree”.

This scale is used to measure the answers of every respondents. Therefore, the
researchers used the Likert scale which is based on: