Financial literacy and practices among college students

Abstract

The purpose of this study was to determine the the relationship between financial literacy and financial practices among financial management students in Iloilo City, Philippines. The research involved 264 students from both public and private schools, who were purposively selected to participate. The study was conducted from May to June 2024, and participants were classified based on sex, year level, type of school, senior high school strand, and place of residence. Data were collected through survey questionnaires administered via Google Forms. The data were then analyzed using SPSS, applying statistical tools such as frequency count, mean, standard deviation, Mann-Whitney U test, Kruskal-Wallis H test, and Spearman’s Rho. The results indicated a significant relationship between financial literacy and financial practices. The participants demonstrated a high level of financial literacy and strong financial practices, particularly in areas such as budgeting, saving, investing, and borrowing. Public school students showed superior performance in borrowing practices, rural participants excelled in budgeting and saving, while urban participants performed better in investing. Additionally, significant differences in borrowing-related financial literacy and practices were observed across sex, type of school, senior high school strand, and year levels, particularly between first-year and fourth-year students. These findings underscore the importance of financial literacy in shaping effective financial practices and highlight the need for tailored financial education programs to address gaps and strengthen students’ financial capabilities.