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    International Journal of Advanced Research in ISSN: 2278-6236  Management and Social Sciences Impact Factor: 6.284   Vol. 5 | No. 3 | March 2016 www.garph.co.uk IJARMSS | 230 AN ANALYSIS ON THE FINANCIAL AWARENESS AND LITERACY AMONG THE STUDENTS OF CAGAYAN STATE UNIVERSITY ANDREWS CAMPUS Giehlito Cammayo Dulin* Abstract: This research was conducted to determine the financial literacy of the students of Cagayan State University-Andrews Campus. The 385 respondents of this research were computed using the Slovin’s Formula and it was allocated to the four colleges of the university. There were 110respondents from the College of Business Entrepreneurship and  Accountancy (CBEA), 46 from the College of Allied Health and Sciences (CAHS), 117 respondents from the College of Teachers Education (CTE), and 112 respondents from the College of Hospitality and Industrial Management (CHIM). The qualitative-quantitative research design was used in the study. The data were obtained from the respondents through the use of questionnaires which were accompanied by personal interviews. The study revealed that the identified factors (financial subjects, learnings in investing, budgeting, taxes, credit, loans, interest rates and insurance, financial interest, background in  financial literacy, preparation for the future and financial test) of the researchers had significant impact on students’ financial literacy. The chosen college of students had something to do with their financial literacy; the business major students from CBEA are more financially literate than students from the other colleges. Students’ who have more  financial subjects and learnings answered the financial test better than those who have less  financial knowledge. There is a positive relationship of students’ level of financial literacy to their corresponding year level and age. The higher the year level and the older the student is, the higher the financial literacy he has. Based on ethnicity, students who are Ilocanos are more prepared for their future compared to students who are Ibanag, Itawes and Tagalog. This revealed also that females are more interested in increasing their financial literacy and are more prepared for their future compared to males. The parents’ income also of the students greatly affects their savings. The students who have higher number of family members are thriftier than students who are the only child in the family. The study also revealed that the students are influenced by their parents, sisters/brothers, friends, relatives, grandparents, and classmates in their financial decisions. The overall result showed that the financial literacy of CSU- Andrews students is only moderate having a total percentage of 61.73%. This revealed that many of the students are still financially illiterate. *Tuguegarao City, Cagayan      International Journal of Advanced Research in ISSN: 2278-6236  Management and Social Sciences Impact Factor: 6.284   Vol. 5 | No. 3 | March 2016 www.garph.co.uk IJARMSS | 231 INTRODUCTION Nowadays, people suffered from a high level of financial anxiety. They do not stop in seeking for the answers on how to properly manage their financial resources, how money will work for them and how their decisions on financial matters will affect their lifetime financial security. Most of us think that acquiring huge sums of money will solve our problems easily. It may be true for some, but without the knowledge to handle it properly, others might find themselves in a more problematic situation. Most Filipinos lose their money because of overspending due to lack of financial knowledge. You may have heard of lotto winners who ended up being bankrupt or in a financial mess. This is what usually happens to instant millionaires who suddenly find themselves rich – in fact, too rich that they do not know what to do with the money anymore. “A wise man should have money in his head, but not in his heart.” (writer Jonathan Swift said). Truly, the value of a person’s financial assets is largely determined by his understanding of them—his financial literacy. Literacy, as a general term, is the ability to read and write. This implies having knowledge and understanding of words and grammar that can be acted upon through reading and writing. Financial literacy is “the ability to understand basic principles of business and finance.” Financial literacy, then, implies knowledge and understanding in preparation for action of some sort. Thus, financial literacy is best achieved by acquiring knowledge and understanding of financial values and putting that knowledge into practice. This is the reason why having money and financial knowledge at the same time is the key that will greatly help in improving one’s life. Money and f inancial knowledge go hand in hand just like what the author Robert Kiyosaki said, “Money without financial knowledge is money soon gone.” There are three (3) reasons why people have money problems, lack of knowledge, lack of action and lack of discipline. (“Kontento Ka Na Ba Sa Kaperahan Mo?”- How to Unleash the Highest Potential of You Money towards Success, happiness and Significance-Vic & Avelynn Garcia) Thus, financial literacy as a study evolved out of the needs of people to understand better how someone manages money to sustain his and his family needs and wants not only currently but also prospectively. It has become increasingly important now than ever to    International Journal of Advanced Research in ISSN: 2278-6236  Management and Social Sciences Impact Factor: 6.284   Vol. 5 | No. 3 | March 2016 www.garph.co.uk IJARMSS | 232 equip not only students but every Filipino citizen with the proper skills and knowledge to handle money correctly. Its main focus is to provide economic and financial learning to everybody whom they can use in their daily lives and in their future. Financial Literacy is the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being. (President’s Advisory Council on Financial Literacy, 2008 Annual Report to the President). Personal financial literacy is more than just being able to balance a checkbook, compare prices or get a job. It also includes skills like long-term vision and planning for the future, and the discipline to use those skills every day. These knowledge and skills pertains to making decisions involving personal expenditures, investments, savings, insurance and retirements. It also includes the financial concept of financial planning, financial management, compound interest, credit cards, savings methods, time value of money, budgeting and decision-making skills. Philippines was ranked 68th globally in terms of financial literacy index (study of Asian Development Bank ) and 8 th  out of 16 Asia-Pacific countries (MasterCard Index of Financial Literacy) having 68.2 index same in year 2011. It revealed that in our country, only the Bangko Sentral ng Pilipinas has its public awareness campaigns on economic and financial issues and no other national strategy for financial education. The BSP has been active in developing strategies for financial education and has issued a number of circulars. Their main focus is the economic and financial learning program to promote awareness of economic financial issues. Financial Literacy was recognized by Finance Ministers of all Asia-Pacific Economic Cooperation (APEC) countries to be an essential skill for everyone in the 21 st  century and an important component of any economy’s efforts that will effectively support economic and financial stability, inclusive development and individual and families wellbeing. Most financial literacy surveys conducted worldwide and particularly in APEC economies, show that large segments of the population have insufficient knowledge to understand even basic financial products, plan for the future and often do not make optimal decisions on managing their finances. APEC countries have viewed that financial education supported by effective consumer protection can lessen the risk of crises occurring by enabling individuals to effectively use financial products and services and to make sound choices to protect    International Journal of Advanced Research in ISSN: 2278-6236  Management and Social Sciences Impact Factor: 6.284   Vol. 5 | No. 3 | March 2016 www.garph.co.uk IJARMSS | 233 themselves and fruitfully participate in financial and economic activities. Such steps can also help in prompting recovery and economic growth in the wake of financial challenges. Financial Literacy has therefore become a life skill that is essential for every economy to foster safe and sound, efficient, transparent and inclusive financial systems. (Asia-Pacific Economic Cooperation-“Policy Statement-APEC Ministers of Finance”) Knowledge is rarely useful without application. Even if a concept is understood through a real-life example, it takes personal use to comprehend it well. You are not called “financially literate” until your financial knowledge will put into action. STATEMENT OF THE PROBLEM This research study generally aims to determine the financial literacy of the Cagayan State University- Andrews Campus students at Caritan, Tuguegarao City. More specifically, it also aims to study about the following: 1.   How the different factors (financial subjects, learnings in investing, budgeting, taxes, credit, loans, interest rates and insurance, financial interest, background in financial literacy, preparation for the future and financial test) identified by the researchers affect the financial literacy of the students when they group according to: a.   College b.   Year Level c.   Ethnicity d.   Gender e.   Age 2.   How does parents’ income affect students’ financial management? 3.   How does students’ number of family members affects their financial behavior? 4.   Who/What are the financial influences of the students in making financial decisions? SIGNIFICANCE OF THE STUDY The study conducted focuses on determining the financial literacy of the students of Cagayan State University- Andrews Campus. It hopes to be of a great significance to the following: Researchers.  The result of this study is of great benefit to the researchers not just because they will partially fulfill the requirements of the subject but also to satisfy their curiosity regarding the topic of interest.
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