Decoding the eco-financial mindset: financial literacy, attitudes, and efficacy measures and the spending behavior of Filipino millennials

Abstract

In today's volatile economy, millennials stand out as a generation defined by their significant reliance on technology and the issues they encounter in their formative and later years. Experiencing from education costs and socio-economic backgrounds, problems exacerbated by the lack of financial acumen and economic downturns, millennials inevitably become financially vulnerable in the increasingly evolving financial landscape. This research delves into Filipino millennials' financial decision-making, focusing on financial literacy, financial attitude, financial efficacy, and spending behavior. Survey questionnaires were distributed among 431 millennials from the cities of Laguna, Philippines, through Google Forms. Data analysis was conducted through Structural Equation Modeling (SEM) and Confirmatory Factor Analysis (CFA) in Jamovi, unveiling strong positive correlations among eco-financial literacy, eco-financial efficacy, and eco-financial attitude, emphasizing their interdependence in shaping millennials' financial decisions. A negative correlation is identified between spending behavior and financial attitude and a breakdown of spending patterns revealed both variability and consistency of millennials’ spending patterns across categories. The findings emphasize the value of tailored financial education, training, and intervention programs. Such initiatives must be crafted with acute sensitivity, recognizing millennials' unique aspirations and inclination towards social media and peer influences.