Financial Literacy and Spending Habits on Job Order employees in the Local Government Unit of Island Garden City of Samal

Abstract

The financial literacy has become a major challenge in society. Financial literacy is mostly concerned with financial planning, continuing wealth accumulation and having better financial decision making. Nonetheless, people tend to become financially illiterate due to personal problems and lack of awareness. The study entitled Financial Literacy and Spending Habits of Job Order employees in the Local Government Unit of Island Garden City of Samal was conducted to determine the significant relationship between financial literacy and spending habits. Hence, the purpose of this study is to examine the financial literacy and spending habits of job order employees. The study engaged a quantitative research method where an adapted questionnaire was used fit to specifically target the apprehension of the 297 job order employees’ participants using five-point Likert scaling. The statistical tools are Mean and Pearson Product Moment Correlation Coefficient (Pearson r). The study composed of two variables which is financial literacy as dependent variable has its three indicators namely, financial knowledge, financial behavior, and financial attitude. And spending habits as an independent variable containing its two indicators which are basic necessity and leisure activities. The result also rejected the hypothesis of no significant relationship between financial literacy and spending habits. This research suggests that the Local Government Unit (LGU) should maintain and continue the existing program that they already imposed to the job order workers in the city that helps them enhance and deepen their knowledge about finances and keep their financial literacy in a very high level.