Personal Financial Management Practices in Empire East Land Holdings, Inc.
Keywords:personal financial management practices, personal finance planning, risk management, educational planning, retirement planning, investment decisions
The primary purpose of the study was to assess the level of effectiveness of personal financial management practices in Empire East Land Holdings, Inc. in terms of Personal Finance Planning, Risk Management, Educational Planning, Retirement Planning, and Investment Decisions. The researcher applied the descriptive method into the study, which made heavy use of survey-questionnaire. The data gathered were subjected at .05 level of significance. The researcher used various statistical tools such as Frequency and Percent Distribution, Weighted Mean, One-Way Analysis of Variance, and Ranking. The study revealed that the respondent employees were dominantly female, aged 20-40 years old, single, college graduates, earning an average of P20,000.00 monthly and below, mostly Rank and File, with one (1) to ten (10) training sessions or seminar participated in, employed in the company for one (1) to five (5) years and regular employees. The respondents perceived that the level of effectiveness of the Personal Financial Management Practices in Empire East Land Holdings, Inc in terms of Personal Finance Planning was “Effective” while Retirement Planning was “Less Effective.” The researcher concluded that age and number of years in the organization were significantly different in the assessment on the Personal Financial Management Practices of Employees in Empire East Land Holdings, Inc. (ELLHI). When respondents were grouped by sex, civil status, average net monthly income, job position level, the number of training sessions or seminars participated in, and employment status, they were statistically the same in all aspects of Personal Financial Management Practices such as in Personal Finance Planning, Risk Management, Educational Planning, Retirement Planning, and Investment Decisions. Overall recommendations were drawn from the study such as the management should review the company policy about salary increase for those regular employees and have already rendered five years and above in the company but still have below 20,000as their average monthly income. The management may consider the length of service, achievements, and performance of the employees for a reasonable increase. Or, the employees can look for other sources of income like a part-time dealer of cosmetics or any beauty products to earn additional income to manage their finances. The management should create a program for those employees who may be affected by emergencies. The management should provide educational programs for outstanding employees who wish to pursue their studies by through a performance-based promotions scheme. The company can partner with the insurance providers that offer less expensive retirement plans. The employees themselves may also look for other investment schemes like the Unit Investment Trust Fund or Variable Life insurance for their retirement stage. Moreover, the corporation should increase the salary of the outstanding employees so that they would be able to join the stock market; second, the company should conduct literacy program to educate the employees about stocks; lastly, the employees can look for any part-time job to have an extra income for them to be able to allot money in stocks or mutual fund and hire fund manager as an advantage.