Financial Management Practices of Millennial Single Parent

Abstract

The study aims to assess the effectiveness of financial management practices of millennial single parents in selected business districts in National Capital Region (NCR): Makati, Bonifacio Global City, and Ortigas. A descriptive-survey method of research was employed to the study in determining the effectiveness of financial management practices of millennial single parents. The respondents were composed of 65 millennial single parents for the evaluation of their financial management practices. Based on the findings, the level of their financial management practices’ effectiveness in terms of earnings, savings, and investing were somewhat effective, while they voted ‘effective’ in terms of spending. The study also notes several significant differences. The assessment of the respondents varies depending on the sex, employment status, and monthly income. Hence, the researcher recommends that in terms of earnings’ management, millennial single parents should give importance to budgeting and give a commitment to personal financial management. In terms of saving, millennial single parents should strongly consider making automatic saving a part of the budget by setting aside money for funding an emergency account, paying fixed and variable expenses or creating a fund for their children. In terms of spending, millennial single parents should track expenses and must be educated that the bigger the gap between income and spending, the better. Being tech-savvy, the millennial single parents can use excel sheets, a simple diary, mobile applications, or desktop computers to track expenses and know what percentage of earnings goes where. Additionally, they should always separate their wants from their needs in order to manage finances well. In terms of investing, millennial single parents should always look forward beyond the current month. They must know that properly invested money earns more money over time. Risk is always there but they must remember that the higher the risk, the higher the return. Furthermore, millennial single parents need to research and learn continuously throughout their working lives. They must remember that financial freedom is not achieved the day they start working, but the day they get their finances in working order. Moreover, it is a time to learn whatever poor financial management practices millennial single parents had in the past and also a time to be hopeful about the future.