A Proposed Investment Guide on Financial Literacy for State University Students

Abstract

It is important to expand one’s investment capability since investment literacy can upraise effectively and informed money management decisions. All investments start with the first dollar; thus, it is vital to start early especially among young professionals such as college students. Moreover, knowledge of investment as a student is one of the best rewards life has to offer. This study was undertaken to determine the level of knowledge of college students on investment products. In addition, the study identified the demographic and financial profile of the students and their problems with regard to investing. The study was conducted in Southern Luzon State University, a prominent state university in the Philippines. Stratified random sampling was used for equal representations of the respondents across all departments. Using the Slovin’s formula to identify the sample size from an 8,995 population, 383 served as participants of this study. The quantitative research design was implied in which a survey questionnaire served as the instrument for collecting the data. The research instrument was subjected to a reliability test using Cronbach’s alpha to assess its internal consistency prior to data gathering. The researchers concluded that the majority of respondents are 15-18 years old, female, fourth-year students from the College of Engineering. Most were financially supported by their parents with an average weekly allowance of P1,000 and more, and average savings per week of P51 to P100. In terms of financial literacy, they are somewhat knowledgeable about the concepts of bank accounts, stocks, and real estate. However, they are not knowledgeable about the concepts of bonds, mutual funds, and precious objects. The problems encountered with regards to investing were lack of knowledge, unknown starting point, and investing in the wrong investment product. An investment guide on financial literacy was proposed to suffice the knowledge of college students on investment products. This was recommended since it is important to invest in one’s financial education first before capitalizing. Ultimately, proper financial and investment planning should be included in the foremost responsibility of college students so they could be more sensible in financial decision-making in future time.