Financial Literacy and its Effect on the Economic Conditions of Households in Barangay Imbatug

Abstract

This study aimed to determine the financial literacy of households in Barangay Imbatug and its effect on their economic conditions. The researchers chose this topic because they knew financial literacy was a common problem in their community, and they wanted to understand how people managed their finances and whether they had additional sources of income. They believed that exploring this topic would provide useful insights into the challenges and opportunities faced by individuals and families. This quantitative study used questionnaires and face-to-face surveys to gather data. Simple random sampling was used to select 188 respondents from three puroks (67 from Purok 3, 70 from Purok 8, and 51 from Purok 9). Data were analyzed using descriptive and inferential statistics, t-tests, and ANOVA to determine the relationship between financial literacy and economic conditions. Findings revealed that the overall mean financial literacy score was 2.99 (“High financial literacy”), while the overall mean economic condition was 3.02 (“High economic condition”). A correlation of 0.50068 indicated a moderate relationship between the two— not strong enough for definitive predictions, but suggesting a partial association. The p-value was >0.05, meaning the relationship was not statistically significant; the null hypothesis (no relationship) was not rejected. While a moderate relationship exists, it is not strong enough to draw firm conclusions. To improve financial literacy in Barangay Imbatug, this study proposes a budget plan based on models from other Philippine communities and aligned with government programs and funding mechanisms. This plan includes assessing current financial literacy levels, developing a customized curriculum, and conducting community segments for women, youth, and the elderly. For long-term success, follow-up surveys and collaborations with local financial institutions are recommended. Based on the study’s findings, it is recommended that Barangay Imbatug develop and implement comprehensive financial literacy programs tailored to the needs of its residents. These programs should emphasize practical topics such as budgeting, saving, responsible borrowing, and income generation. Collaboration with local government units, educational institutions, and financial organizations is encouraged to ensure proper guidance and sustainability. Regular workshops and community-based training sessions should be organized to strengthen financial decision-making among households. The inclusion of youth, women, and elderly groups will help promote inclusive participation and long-term impact. Monitoring and evaluation mechanisms should be established to assess improvements in financial behavior and economic stability over time.