Home⇛The Trinitian Researcher⇛vol. 12 no. 1 (2024)

Assessing Financial Literacy and Money Management of the Employees in Selected Government Academic Institutions

Marivel E. Unciano | Irvin R. Perono

Discipline: Finance

 

Abstract:

This study focuses on determining the financial literacy and money management practices of government employees, with a particular emphasis on the issue of insufficient knowledge and the inability to manage personal finances effectively. Specifically, the objective of the study was to statistically ascertain the demographic profile of the sample and explore their level of financial literacy concerning money earning, money saving, investing, smart borrowing, and protecting pillars and their financial knowledge, attitudes, and behavior of teaching and non-teaching employees of the Department of Education in Quezon City, Philippines. The study employed a mixed-method approach, where 249 respondents were interviewed using a researcher-structured questionnaire, and 10 participated in a Focus Group Discussion. The internal consistency, as measured by Cronbach's alpha reliability, for the pillars of financial literacy is 0.87, whereas for the money management variables is 0.83. The study's findings showed that employees were slightly dissatisfied with their financial literacy but were slightly satisfied with the management of their finances. Pearson's r correlation between financial literacy and money management showed that there was a statistically significant association between the two variables. In addition, the research examined the role of demographic characteristics on the latter constructs and the main issues faced by workers when managing their finances. The results have important implications for financial managers in designing tailored financial literacy programs to enhance the financial wellbeing of employees and address persistent financial management issues.



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