In our generation today, Teenagers are lacking in the basic knowledge and skills important

in personal finance such as savings, investing, and debt management. There were several studies

that serve as guide for students who still can’t manage their own money properly. The Philippines

is considered one of the countries whose citizens have poor financial IQ. In a survey conducted by

Standard and Poor‘s Rating services in 2015, only 25% of Filipinos are financially literate and

among the 143 participants of the study, the Philippines belonged in the bottom 30. Moreover the

country ranked 3rd to the last in the South-East Asian region.

In that case, the researchers came up with a new research about “The Financial Knowledge

Level and Saving Behavior of College Students.” This paper will be establish to determine if being

financial literate is related to the saving behavior of students. The researchers came up with three

research question to serve as guide in determining the financial knowledge level of students,

savings behavior of students, and the relationship of the financial knowledge level and savings

behavior of a student. First, what are the financial literacy levels of college students? Second, what

are the Savings behavior of the college students? And Lastly, Is there a significant relationship

between financial knowledge levels and saving behavior of college students? The result of this

study will serve as an eye-opener to college students about how their financial literacy affects their

behavior in terms of saving their own money. This research will serve as their guide to be aware

of the different behavior that they usually do while saving. This will also serve as guide to teachers

and professionals who may be teaching personal finance in school or in seminars in understanding

student’s knowledge about their personal finance. The study can also be a guide to other

researchers who plans to do the same research. Most Importantly, It can enlighten the government

who can implement a new subject about personal finance. According to Mateo (2017), in the new

K-12 program, financial education shall be taught in subjects that teach related competencies such
as EdukasyongPantahanan at Pangkabuhayan and Technology and Livelihood Education.

Furthermore, the Philippine government also launched its Financial Literacy Program last year

based on Beltran (2016).

Assumptions may exist, but people cannot predict the future. They cannot foretell their

sudden emergencies, as well as upcoming expenses. Credits are not always available when needed,

either. Thus, saving is important to improve financial situations whether you are full-time working

or not. As it is worth the effort, it also gives people peace of mind, options, and the more they save,

the easier it becomes to acquire additional savings. Saving essentially leads to financial

independence which refers to the reduction of reliance when it comes to spending money.

Bernanke (2016) once said that it is essential that a person becomes financially literate in a very

young age to prepare them to make better financial decisions and navigate an increasingly complex

financial marketplace. Consequently, Byabaziere (2016) claims that financial literacy is central in

knowing one‘s financial responsibilities, having a budget plan for example. Tiongson (2015)

identified 2 of the most common reasons why Filipinos fall into financial crisis. First is a

significant percentage tends to borrow money as an easy way out of overspending without

considering the repercussions, thus they are unable to secure savings. He recommends forced

saving as it keeps you in track of your spending. Saving some money as soon as you receive your

pay check forces you to abandon your bad spending habits and lets you accumulate wealth over

time.

This study is intended to produce data about the relationship of the saving behavior and the

financial knowledge levels of the college students. The researchers will do a quantitative research

which helps to establish relationship among variables. Through this type of method, the researcher

will be able to gather the set of data that is needed to answer the question that is stated in the study.
The researcher aims to know whether the level of financial knowledge is connected to the saving

behavior. The respondents of the study are college students; disregarded of year, course and school

the students are in. the respondents will be 50 in total. The data will be gathered using electronic

style. First, the researchers will disseminate the survey questionnaire through a social media

application — messenger. Second, the interviewee will be then directed to a site, the Google forms.

There, the interviewee will answer the survey questionnaire. The data will be then subjected to

statistical analysis and interpretation.

 Electronic Sources

Beltran, G. (2016, June 6). The Philippines‘ Financial Literacy Program. Retrieved from
http://www.dof.gov.ph/index.php/the-philippines-financial-literacy-program/

Financial Wisdom Online Resource Library. (2014). The Importance of Saving.

Retrieved
fromhttp://www.financialwisdom.com/ResourceLibrary/Sample/General/Import

Fontinelle, A. (2015). Why Saving Money Is Important? Retrieved from

http://www.investopedia.com/articles/personal-finance/031215/why-saving-money-
important.asp

Folger, J. (2017, January 28). The 7 Best Places to Put Your Savings. Retrieved from
http://www.investopedia.com/financial-edge/0810/the-7-best-places-to-put-your-
savings.aspx

Louren. (2015, December 30). Financial Literacy Philippines – Awareness 101. Retrieved
from http://powerpinoys.com/financial-literacy-philippines-awareness/

Louren. (2016, January 13). 7 Worst Spending Habits Filipinos Need To Break. Retrieved
August 22, 2017, from https://powerpinoys.com/spending-habits-filipinos-need-to-break/

Macalintal, R. (2013). Top Reasons Why Filipinos Failed to Save. Retrieved August 22, 2017,
from http://richardmacalintal.com/top-reasons-why-filipino-failed-to-save/

Manila Times, (2016). Only 25 of Filipinos are Financially Literate. Retrieved from
http://www.manilatimes.net/only-25-of-filipinos-financially-literate-sp/232428/
Musundi, K. (2014) The Effects Of Financial Literacy On Personal Investment
Decisions In Real Estate In Nairobi County. Retrieved from
http://chss.uonbi.ac.ke/sites

PK. (2016). What‘s the Ideal Savings Rate for Retirement or Financial Independence?
Retrieved from https://dqydj.com/whats-the-ideal-savings-rate-for-retirement-or-
financial-independence/

Republic of the Philippines - Department of Education (June, 2016). Basic Education

Curriculum to Include Financial Education.Retrieved from
http://www.deped.gov.ph/press-releases/basic-education-curriculum-include-financial-
education

News Article

Mateo, J. (2017, July 6). Financial literacy included in basic education. Philstar. Retrieved
from http://www.philstar.com/education-and-home/2017/07/06/1716783/financial-
literacy-included-basic-education

Journal

Bhushan, P. (2014). Relationship between Financial Literacy and Investment Behavior of Salaried
Individuals.Journal of Business Management & Social Sciences esearch.3(5)