CERTIFICATION OF THE EVALUATION COMMITTEE

This research entitled “FINANCIAL LITERACY OF UL BSA AND

BSAT STUDENTS” has been reviewed and orally presented by Group 2,

11:00-12:00pm during Monday, Wednesday and Friday, in partial

fulfilment of requirement for the subject Principles and Methods of

Research (RES11), and has been carefully examined and was found good

to be approved in form and substance.

________________________________________

MR. MARK JOSEPH V. BALOLONG, CPA

Chairman, Oral Examination Committee

_________________________________________

PROF. JHARAM A. TOLENTINO, CPA

Member, Oral Examination Committee

Accepted and Approved by:

________________________________________

DR. CARMELO JOHN E. VIDAL, PH.D.

Research Adviser

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 ABSTRACT

Title: FINANCIAL LITERACY OF UL BSA AND BSAT

STUDENTS

Researchers: Daoana, Kenneth E.

Lazarte, Joyce R.

Magtibay, Maria Camille M.

Soriano, Syra Mae P.

Aquino, Leslee J.

Sison, Ayda Ylla F.

Tandoc, Argil V.

Course: Bachelor of Science in Accountancy

Bachelor of Science in Accounting Technology

Professor: Dr. Carmelo John E. Vidal

Institution: University of Luzon

Background of the Study

This research was a probe into integration of Financial Literacy as

a consideration in planning and preparing relevant professional

development seminars and training for the BSA and BSAT students of

the College of Accountancy, University of Luzon. In particular, this

research aimed at determining the level of knowledge acquired by the

students through parental influence, experience and research, in

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applying Financial Literacy concepts such as savings and investing in

making financial decisions.

Statement of the Problem

This study aimed to know the level of Financial Literacy of UL BSA

and BSAT students attained in their studies, and the factors that

influence their knowledge and application of Financial Literacy concepts

in making financial decisions.

Specifically, the study pursued to answer the following questions:

1. How financially literate are University of Luzon BSA and BSAT

students on the following Savings and Investing topics:

Savings

 Budgeting;

 Compounding interest;

 Inflation;

 Government Regulation; and,

 Transaction Instruments.

Investing

 Risk diversification;

 Return on investment;

 Liquidity;

 Short- and Long-term saving and investment strategies; and,

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  Insurance.

2. What are the factors that influence the students’ financial literacy?

3. What measures can be proposed to improve the students’ financial

literacy?

Research Method

Descriptive Method is defined as a research method that describes

the characteristics of the population or phenomenon that is being

studied. This refers to research questions, design of the research and the

data analysis that could be conducted on the topic. Descriptive studies

are closely associated with observational studies, but they are not limited

with observation data collection method, and case studies, as well as,

survey also be specified as popular data collection method used with

descriptive studies. In survey research, respondent answers through

survey or a questionnaire or polls. They are popular market research tool

to collect feedback from respondents in order for a survey to gather good

quality data, it should have good survey questions, which should be

balance mix of open ended and close ended questions.

The descriptive method of research was applicable for this study

since the researchers want to describe the level of knowledge of the UL

BSA and BSAT students in Financial Literacy. In connection with this

study, the collected data will be analyzed to determined the Financial

Literacy status among the College of Accountancy student of University

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of Luzon. The researchers used the descriptive method because it

primarily focused on describing the nature of a demographic segment,

without focusing on why a certain phenomenon occurs. In other words, it

describes, the subject of the research which is the focus of the study.

Significant Findings

The following are the summary of significant findings. Relative to

the Level of Knowledge, the results are, to wit:

Conclusion

The research study showed the benefits that can be derived from

an adequate level of Financial Literacy, and the effects that can be

derived from the lack thereof. Considering the findings gathered after

conducting the study, the researchers concluded that based on the

respondents’ performance in the practical examination administered, the

respondents’ Financial Literacy is “Poor” in Savings and Investing topics,

with forty-two percent (42%) having this rating. The researchers

concluded that UL BSA and BSAT students do not have enough

knowledge in the Financial Literacy areas of Savings and Investing. The

researchers also conclude that BSA and BSAT students are dependent

on their parents as expected source of Financial Literacy, this means

that their knowledge is based on what their parents know which is

influenced by their educational attainment, life experiences and

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knowledge previously acquired. Finally, the researchers concluded that

the students expect series of seminars as means to increase their

Financial Literacy, with Financial planners and, or consultants, and

books and pamphlets be made available.

Recommendations

Based on the findings and conclusion, the following

recommendations are advanced:

1. The College of Accountancy Dean, professors, student organization

officers take into consideration the proposed measures stated in the

Chapter 4 of this research study because those measures were the

combined suggestions of both the researchers and the respondents

which reflect the means in which they desire to acquire knowledge of

savings and investing as part of their Financial Literacy, thus making

those measures a reliable guideline for the gradual increase of BSA and

BSAT students’ level of knowledge.

2. To the future researchers, the researchers recommend to use the

research output in their future studies and to look at conducting a study

on other aspects of Financial Literacy, and look at financial behavior and

financial attitude in order to analyze Financial Literacy from another

aspect.

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 TABLE OF CONTENTS

Certification of the Evaluation Committee………………………………... i

Thesis Abstract………………………………………………….....…………… ii
Table of Contents………………………………………………………………. xi
List of Figures and Tables……………………………………………………. xiv
Acknowledgment………………………………………………………….……. xvi
Dedication………………………………….……………………………………. xviii

Chapter I: THE PROBLEM AN ITS BACKGROUND

Rationale………………………………………………………….. 1
Statement of the Problem……………………………………… 4
Scope and Delimitation………………………………………… 5
Significance of the Study………………………………………. 6
Definition of Terms……………………………………………… 8
Chapter II: REVIEW OF RELATED LITERATURE AND STUDIES
Conceptual Literature………………………………………….. 10
Research Literature……………………………………………… 21
Chapter III: RESEARCH DESIGN
Research Method………………………………………………… 27
Locale of the Study……………………………………………… 28
Respondents of the Study……………………………………… 29
Data Gathering Instrument…………………………………… 31
Data Gathering Procedure…………………………………….. 33
Statistical Treatment of Data…………………………………. 39
Chapter IV: PRESENTATION, ANALYSIS AND INTERPRETATION

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 Factors Influencing the BSA and BSAT students in
managing their money…………………………………………
Sources Expected to Increase the Financial Knowledge
of UL BSA and BSAT students………………………………
Measures Expected to Increase the Financial Knowledge
of UL BSA and BSAT students………………………………
Proposed Measures to Improve Financial Literacy………
Chapter V: SUMMARY, CONCLUSION AND RECOMMENDATION
Summary of Findings…………………………………………
Conclusion…………………………………………………………
Recommendation………………………………………………...
BIBLIOGRAPHY………………………………………………………………...
APPENDICES
Appendix A Letter of Permit to Conduct the Study…....
Appendix B Table of Specifications……………………....
Appendix C Letter to Respondents……………………….
Questionnaire………………………………………………….
Appendix D Computation for Mean………………………
Appendix E Interview Guide…………………………………
CURRICULUM VITAE………………………………………………………...

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1 University of Luzon Site Map 36

No LIST OF TABLES pg

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 ACKNOWLEDGMENT

The researchers wanted to express their gratitude to those who

have helped them accomplish this research study through thick and

thin, and who have been by their side since inception of this study.

To the Divine Creator for the gift of wisdom and humility that have

guided the team in planning, preparing, gathering, analyzing and writing

this research paper; but, most of all for keeping the zeal in each member

in times of despair and when they are broken down by hardships.

To their family, who have provided beyond necessary support and

understanding all throughout the writing of this research: without your

presence and support, the team could not have come this far; you are

their inspiration.

To the Dean of the College of Accountancy, Prof. Renante D.

Balocating, thank you sir for making possible the conduct of this study

through allowing the team to float the instrument, access to vital

information, and your guidance throughout the study.

To the faculty members of the College of Accountancy, Madams

and Sirs, the team is grateful for your understanding and support

provided all throughout the conduct of this study.

To Ms. Inah Marey Delos Reyes and Ms. Rose Ann C. Paramio,

faculty members of the College of Accountancy, your inputs, insights and

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thought-provoking questions made possible the success of this research

paper. Your guidance in the preparation of the Data Gathering

Instrument is the life of this research study.

To their research adviser, Dr. Carmelo John E. Vidal, the team is

greatly indebted for your support and insights since the inception of this

research paper. Without you, Sir, this wouldn’t have been a success.

The Researchers

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 DEDICATION

We humbly dedicate this study to our family, friends, respondents,

schoolmates, professors, dean and adviser whose presence contributed to

the success of the study and to all those who have played minor or major

role in the preparation, conduct and data gathering for the study.

Kenneth

Joyce

Camille

Syra

Leslee

Argil

Ayda

University of Luzon

Dagupan City

October 2018

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