Financial Literacy, Personal Financial Management Practices and Retirement Readiness of the Teachers in Pedro A. Paterno National High School

Authors

  • Geraldine P. Signo
  • Ma. Eva D. Marasigan
  • Magdalena A. Nibay

Keywords:

Financial Literacy, Personal Financial Management, Retirement

Abstract

INTRODUCTION

One of the most controversial issues regarding teachers is how to manage their salary in order to avoid loans and debts with friends and families. This concerned the researchers to conduct this study and aimed to correlate the employees' state of financial literacy, personal financial management practices, and retirement readiness. The study aimed to determine the significant relationship of the employees' demographic profile, state of financial literacy and personal financial management practices with their retirement readiness, as well as the relationship of personal financial management practices with their state of financial literacy.

METHODS

A descriptive-correlation was employed by the researchers as research design. Purposive sampling was used to select the 44 teachers in Pedro A. Paterno National High School.

RESULTS

As the results, the data showed that most of the teachers are financially literate but have poor personal financial management practices. Although they manifest financial literacy, their overall saving, credit and investing practices are poor which signifies that they lack actions involving the use of financial knowledge. It showed that half of the respondents are not yet ready for retirement and the other half are somewhat ready. It means that employees are indifferent when it comes to retirement readiness. On the other hand, employees' age, educational attainment, salary, state of financial literacy and personal financial management practices have positive significant relationship with retirement readiness.

DISCUSSIONS

Teachers in Pedro A. Paterno National High School showed that their personal financial management practices and the state of financial literacy also have positive significant relationship with each other. Thru this, it is recommended that the government should encourage the teachers to be more educated about financial literacy and proper personal financial management practices by conducting different trainings and seminars, because these two were identified in the study to have a relationship with their readiness towards retirement.

Published

2019-01-18