THE RELATIONSHIP BETWEEN FINANCIAL LITERACY AND SPENDING HABITS OF GRADE 12 HOME ECONOMICS STUDENTS OF IMMACULADA CONCEPCION COLLEGE

Abstract

This study aimed to determine the relationship between financial literacy and spending habits among Grade 12 Home Economics students at Immaculada Concepcion College during the academic year 2023-2024. Using a quantitative research method and a descriptive correlational design, the study examined students' financial knowledge, budgeting practices, and spending behaviors to assess how financial literacy influences their financial decisions.

The findings indicate that students who demonstrated higher financial literacy tended to exhibit more responsible spending habits. The study revealed a moderate positive correlation between financial literacy and spending habits, with a Pearson correlation coefficient indicating statistical significance. This suggests that as students' financial knowledge increases, their ability to manage expenses and make informed financial decisions improves.

The study highlights the importance of financial education in equipping students with essential money management skills. It recommends incorporating financial literacy programs into the curriculum to enhance students' financial awareness and encourage responsible spending habits. The study employed a quantitative research approach with a descriptive correlational design. A total of 127 Grade 12 Home Economics students were selected using Slovin’s formula and a simple random sampling technique. Data collection was conducted through a modified standardized questionnaire distributed via Google Forms, assessing students' financial literacy and spending habits.

The results revealed a moderate positive correlation between financial literacy and spending habits, indicating that students with higher financial knowledge tend to make more responsible financial decisions. The study underscores the importance of financial education in promoting better money management skills among students and suggests integrating financial literacy programs into the curriculum to enhance their financial awareness and spending discipline. The findings reveal a significant positive relationship between financial literacy and spending habits concerning food and academic needs, while a moderate positive correlation was observed in relation to personal needs. This suggests that students with higher financial literacy are more likely to make informed spending decisions, particularly in essential areas such as education and sustenance. These results highlight the importance of enhancing financial education to promote responsible financial management among students. The study recommends conducting financial management seminars to enhance students' financial literacy and decision-making skills. Additionally, encouraging the use of planners or budgeting tools can help students track their expenses effectively, promoting better financial discipline and responsible spending habits.