Abstract
Financial literacy is the capacity to analyze financial options, planning for the future, and responding appropriately to the events. This study intends to look into the association of financial literacy and financial management. The study utilized a quantitative approach employing descriptive normative survey of a modified survey questionnaire on financial literacy and financial management. The respondents of the study were the participants of the annual national conference of the Grace Gospel Church of Christ, which was held in Iloilo City on April 22-27, 2019 with 250 adult respondents. The questionnaire of Financial Literacy and Management Practices was used to measure financial literacy of individuals. The questionnaire considered the most critical personal finance factors in the measurement of the level of financial knowledge literacy and the financial decision-making on financial practices (Cronbach’s Alpha results of Financial Literacy of 0.929, Financial Management of 0.738). It was found that the Normality Test utilizing the Shapiro-Wilk yielded significant results in almost all items. Hence, non-parametric tests were used in the statistical runs. To ensure the “do-no-harm,” after complying the consenting forms, the researchers submitted to the Ethics Review Committee as an assurance that the researchers followed the ethics protocol. Financial Literacy and Management Practices significantly differ in each of the three groups in the congregation namely Leaders (t=11.567, exact sig=0.000), Non-Leaders between financial literacy and management practices by rank in the congregation (t=12.431, exact sig=0.000), and Members (t=23.930, exact sig=0.000). T-Test showed significant differences between the financial management practice on Personal/Family Budget and Financial Decision-Making.
Highlights
Financial literacy is the fundamental knowledge and vocabulary which people need to internalize as the facts in the successful management of personal finances (Garman & Forgue, 2000) to survive in modern society
As we show below in more detail, this is far from right in the real world: very few people possess extensive financial knowledge conducive to making and executing elaborate plans (Lusardi & Mitchell 2014)
This study investigated the level of financial literacy in relation to financial management among the parishioners of Grace Gospel Church who attended the Annual Conference at Iloilo City, Philippines, April 20-27, 2019
Summary
Financial literacy is the fundamental knowledge and vocabulary which people need to internalize as the facts in the successful management of personal finances (Garman & Forgue, 2000) to survive in modern society. Adults have the responsibility to manage household budgets that need to consider a great deal on income constraints These constraints include buying goods, commodities, and services; monitoring financial accounts, handling credit cards, and saving. Investing in the foreseeable future, such as a child’s college education or retirement, purchasing insurance to reduce risk, paying taxes, and seeking sound financial advice. It is a daunting task of being fully aware of personal finances to pace with the complexities of the financial world. The aftereffect of not being aware of even the basics about household financial matters can prove to be costly for adults Such is imperative of making short-term or long-term financial decisions. It is this ever-changing and expensive financial environment that has stimulated significant interest in financial literacy in recent decades
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