FINANCIAL LITERACY IN THE DIGITAL AGE : PERCEPTION ON FINANCIAL LITERACY OF SELECTED ABM STUDENTS IN BESTLINK COLLEGE OF THE PHILIPPINES

Abstract

Financial literacy is the ability to understand and effectively manage various financial aspects, including budgeting, saving, investing, and making informed financial decisions. Developing these skills at an early age is crucial for achieving long-term financial stability and well-being. In today's digital era, social media plays a significant role in shaping individuals' financial behaviors and literacy, especially among students.​  Influence of Social Media on Students' Financial Literacy  Social media platforms have become prevalent sources of financial information for students. Research indicates that exposure to financial content on these platforms can positively influence financial literacy. For instance, a study found that participants consuming financial information via social media had higher financial literacy scores than those who did not engage with such content. Similarly, another study highlighted that students' exposure to social media improves financial literacy, suggesting that these platforms can serve as valuable tools for financial education. ​   However, the quality of financial information on social media varies, and not all content is reliable. The phenomenon known as the Fear of Missing Out (FOMO) is amplified by social media, leading users to make impulsive financial decisions to emulate their peers' lifestyles. This can result in overspending or engaging in risky investments without proper understanding. Therefore, while social media can enhance financial literacy, it also necessitates critical evaluation of the information consumed.​   Financial Literacy Among ABM Students  Students in the Accountancy, Business, and Management (ABM) track are expected to have a foundational understanding of financial concepts due to their curriculum. Studies have shown that exposure to social media can enhance financial literacy among students, including those in specialized tracks like ABM. For example, research indicates that social media can enhance financial literacy by utilizing its extensive capabilities to reach a broader demographic for financial education. This suggests that ABM students can benefit from the financial content available on social media platforms, provided they critically assess the information's credibility.​   Recommendations for Enhancing Financial Literacy Among Students  To effectively improve financial literacy among students, particularly those in the ABM track, the following strategies are recommended:  Integrate Financial Education into Curricula: Educational institutions should incorporate comprehensive financial literacy programs that cover essential topics such as budgeting, saving, investing, and critical assessment of financial information sources.​  Promote Critical Thinking: Educators should encourage students to critically evaluate financial advice encountered on social media, distinguishing between credible sources and potential misinformation.​  Leverage Reputable Online Resources: Students should be guided toward trustworthy online platforms and tools that offer accurate and practical financial education.​  Parental Involvement: Parents can play a crucial role by engaging in open discussions about financial management and modeling responsible financial behaviors.​  By implementing these measures, students can develop robust financial literacy skills, enabling them to navigate financial decisions confidently and achieve long-term financial stability. n this study, we utilized a descriptive research design, implemented a convenience sampling technique, and employed an online questionnaire for data collection.​  Descriptive Research Design  A descriptive research design aims to systematically describe a phenomenon, situation, or population by collecting quantifiable information that can be used for statistical analysis. This approach is particularly effective in identifying patterns, frequencies, and categories within the subject matter, providing a comprehensive overview without manipulating variables.​  Convenience Sampling Technique  We employed convenience sampling, a non-probability sampling method where participants are selected based on their availability and willingness to participate. This approach is often used due to its cost-effectiveness and ease of implementation. However, it's important to note that convenience sampling may introduce biases, as it does not ensure that the sample represents the entire population. Consequently, findings derived from convenience samples may lack generalizability. ​ en.wikipedia.org  Online Questionnaire  Data collection was conducted using an online questionnaire, a tool that facilitates the efficient gathering of information from respondents. Online questionnaires offer several advantages, including rapid distribution and cost savings. However, researchers must consider potential limitations such as sampling biases and varying response rates.​  By integrating these methodologies, our study aims to provide insights into how social media influences the financial literacy of ABM students, while acknowledging the inherent limitations associated with the chosen methods. The study reveals a significant impact of social media on students' financial literacy. Engaging with financial content on platforms like Instagram, TikTok, and YouTube has been shown to enhance students' understanding of money management, leading to improved saving habits and more informed decisions regarding spending and budgeting. ​  However, it's crucial to approach social media content critically, as the accuracy and trustworthiness of financial advice can vary. Users should verify information from reputable sources to ensure they are receiving reliable guidance. ​  In summary, while social media serves as a valuable tool for enhancing financial literacy among students, discerning the quality of information is essential for making prudent financial decisions. This study highlights the positive impact of financial literacy on students, emphasizing its role in fostering informed financial decisions and prudent money management. The widespread use of social media in today's economy and daily life significantly influences both the financial industry and individual financial behaviors. Students with higher financial literacy are more likely to engage in responsible financial activities, a competence that can be enhanced by effectively utilizing personal financial information.​  The research is authored by the Fintech theory, which explores how digitalization affects individuals' financial literacy and capability. Digital platforms and interactive learning tools present opportunities to enhance financial literacy among students, particularly those in the Accountancy, Business, and Management (ABM) track. By leveraging these digital resources, we aim to improve the financial literacy levels of ABM students, equipping them with the skills necessary for effective personal finance management.​