Level of Financial Literacy and Debt Management: Basis for Personal Financial Management Program

Marilou  E. Albano,; Cliff Kirl  F. Lubon,; Winona Caryl  Carvajal,; Cristine Marie  Baltonado,; Mary Gil  Gocela,; Laurence Jay  Pajes,; April Joy  Soliman,; Hardy  Bankas,

Level of Financial Literacy and Debt Management: Basis for Personal Financial Management Program

Discipline: Finance

Abstract:

This study emphasizes the importance of financial literacy and debt management among college faculty members, who play a vital role not only in educating students but also in modeling responsible financial behavior. In the Philippines, faculty often face financial challenges that impact both personal well-being and professional effectiveness. To address this concern, the study investigates the level of financial literacy and the extent of debt management among selected faculty members at Holy Trinity College of General Santos City. The research employed a quantitative descriptive-correlational design using stratified random sampling. A total of 48 full-time faculty members participated in the study through a self-made, validated survey instrument. Findings revealed that the mean score for financial literacy was M = 4.03, SD = 0.52, interpreted as high financial literacy. For debt management, the mean was M = 2.84, SD = 0.49, interpreted as moderately efficient. A Pearson correlation analysis revealed a strong positive correlation between financial literacy and debt management (r = 0.915, p < 0.001), indicating that higher financial literacy is associated with better debt management practices. The results suggest that enhancing financial literacy among faculty through targeted programs can significantly improve debt management, promoting financial independence and stability.

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