FINANCIAL LITERACY IMPACT ON SENIOR HIGH SCHOOL ABM STUDENTS’ SPENDING HABITS

Abstract

Personal financial management involves daily decisions related to saving, budgeting, investing, and spending. Financial literacy—the knowledge and skills necessary to make informed financial decisions—is essential for long-term financial well-being. However, in 2021, the Philippines ranked only 30th out of 144 countries in financial literacy, highlighting significant gaps. This study assesses the financial literacy levels of Accountancy, Business, and Management (ABM) students at St. Mary’s College, Inc., Quezon City, and examines how financial literacy influences their spending habits. It also explores the role of the social environment—including parental guidance, peer influence, and societal norms—in shaping these behaviors. This research is particularly significant, as spending patterns developed during youth often carry into adulthood. The findings aim to support educators, policymakers, and parents in creating targeted interventions to foster responsible financial behavior among Filipino youth. The researcher will employ the consensus method for this study, involving all Accountancy, Business, and Management (ABM) senior high school students at St. Mary’s College, Inc., Quezon City, for the academic year 2024–2025. This approach ensures comprehensive data collection and eliminates sampling bias, leading to more precise and reliable findings. By studying the entire population, the results provide stronger generalizability without the need for representative sampling. Based on survey data from high school students at St. Mary’s College, Quezon City, financial literacy levels are relatively high, with an average score of 3.48 out of 4.0. Students demonstrate a strong understanding of budgeting and the benefits of saving (3.81). However, the practical application of financial knowledge—particularly in tracking expenses—lags behind (3.0).  Spending behaviors reflect moderate financial responsibility (2.918/4.0). While students exhibit price consciousness (3.74) and maintain saving habits (3.48), they remain susceptible to impulse purchases (3.39). The social environment plays a significant role in shaping financial decisions, with an overall influence score of 3.232. Positive influences include family discussions (3.39) and school programs (3.35), while peer pressure (3.29) and social media (2.90) also impact students’ spending choices.  Students show strong financial self-awareness (3.60) and express strong support for mandatory financial literacy education (3.65), indicating a high level of openness to learning and improving financial habits. Students possess strong financial knowledge and positive attitudes toward money management; however, they struggle with practical application and navigating social pressures. Therefore, financial education should go beyond theoretical concepts and incorporate real-world strategies to help students effectively implement what they’ve learned in everyday situations.