Preparation for the Future: Students' Preferred Mode of Savings Between Traditional Saving and Deposit Banking and its Effects to their Basic Financial Literacy

Abstract

INTRODUCTION

Saving money is an indispensable activity. It is practiced by people from all walks of life. The two most prominent ways are traditional methods and deposit banking. This study aimed to determine which mode of savings do the respondents prefer and its corresponding effects on students' basic financial literacy.

METHODS

This study used a descriptive-quantitative method of research with purposive sampling. The research questionnaires discern the respondents preferred mode of savings, and its corresponding effects to their basic financial literacy. The 119 research respondents were taken from the 11 sections of the Senior High School Department of Tanauan City integrated High School, enrolled in A.Y. 2018-2019. Data were interpreted using a multiple correlation analysis prescribed by the statistician.

RESULTS

It was discovered that the respondents prefer traditional saving over deposit banking, with 75% choosing the former while 25% preferring the latter. Based on multiple correlational analysis, rc = 1.741 at α= 0.05, it was inferred that the alternative hypothesis is affirmed, stating that the students' choice of mode of savings affects their basic financial literacy. Furthermore, "accessibility" and "feasibility" are the two main reasons for the respondents' choice.

DISCUSSIONS

It is recommended by the researchers that the respondents should know the impact of their preferred mode of savings to the financial aspect of the economy and save intelligently to mutually benefit themselves and the community.