The Financial Literacy of Indigenous People Entrepreneurs in Capas, Tarlac

Abstract

This study described the indigenous people entrepreneurs’ financial literacy through their socio-economic profile, spending, borrowing, and saving practices. A survey questionnaire was used in gathering data from 70 indigenous people entrepreneurs in Capas, Tarlac. Financial literacy of indigenous people entrepreneurs in Capas, Tarlac was affected by their poor and low socio-economic profile. Necessities are their priority and they forget to spend money on their business ventures which causes them to borrow money or lessen their savings. Borrowing practices were considered limited, wide access to financial institutions is deficient resulting in a lack of various financial aids that can be used in running their businesses and sufficing their other needs. Their saving practices was found unstable, they only save money irregularly, and that creates a gap in their spending, borrowing, and saving practices in a way that same reasons were drawn as to why they borrow and save money. The study implies that strong implementation of the policies enshrined in the mandates of the National Commission of Indigenous People should be given high importance by the authorities from the government to uplift the level of socio-economic profile and status of the respondents, provide various seminars and training regarding financial literacy, and give wide access to other financial aids. This is essential to the security and advancement of indigenous people’s lives especially those who are engaged in entrepreneurial endeavors, as socio-economic status runs parallel to the core concepts of financial literacy.