Assessment of Adequacy in Financial Education
and its Effect on Interest to Participate
in the Equity Market of College Students
By
Financial Management Research Group 4
Austria, Ericka Louise M.
Hernandez, Joni Ivy M.
Marcial, Daffnie Ericka Marie O.
Plata, Eunice Ann G.
June 14, 2021
Ms. Teodora Gatus
Adviser
Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
College Students
ABSTRACT
College students are becoming late in adopting the significance of financial literacy,
because they are not empowered at the beginning of their financial lives with basic financial
education. Considering this gap, this research aims to determine the adequacy of financial
education and its effects on equity investment for all college courses of De La Salle Lipa. With
this, the research also focuses on developing the interest of college students to participate in the
equity market because participating in the said field will not only help improve their knowledge
financially, but it would eventually assist them in settling towards better investment judgements
and
decisions. Primary data will be obtained using adopted questionnaires to measure all
variables by surveying college students of De La Salle Lipa. Consequently, the questionnaires
will consist of questions regarding financial education, financial literacy, financial behavior and
equity market. The researchers believe that it is about time to broaden the financial education
given to the students.
Keywords: Financial Literacy, Financial Education, Financial Behavior, Equity Market
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
College Students
ACKNOWLEDGEMENT
With deepest and sincerest gratitude, the researchers would like to thank the following people
who helped on making the first three chapters of the study possible:
First and foremost, to God the Almighty, who guided the researchers throughout the
process of completing the study. It was Him who provided the researchers the enlightenment of
minds, patience, determination, and knowledge to persevere throughout all the hardships and
shortcomings faced during the completion of the paper;
To Mr. Edgar Allan G. Castro, Ph.D., the researchers’ professor in Business Research
for his exemplary guidance, valuable feedback and constant encouragement throughout the
completion of this paper;
To Ms. Dorie G. Gatus, MBA, the researchers' thesis adviser, for her unwavering
support throughout the research process, as well as her time, patience, motivation, enthusiasm,
and vast expertise. Her assistance was the most important to the researchers for it helped them
throughout the study and preparation of this thesis;
To the Faculties under De La Salle Lipa’s Learning Resource Center for allowing the
researchers on having an easy access to different references that have been their aid during the
time of conducting the case study;
To the families of the researchers who prayed and supported them during the
development of their study, and for their everlasting love and support, which encouraged the
researchers to accomplish their thesis;
Above all, this paper would not be successful without these people.
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
College Students
TABLE OF CONTENTS
ABSTRACT
ACKNOWLEDGEMENTS
CHAPTER I
INTRODUCTION
Background of the Study
6
Statement of the Problem
7
Significance of the Study
8
Research Objectives
10
Research Framework
10
CHAPTER II
REVIEW OF RELATED LITERATURE
14
CHAPTER III
METHODOLOGY
Research Design
19
Respondents of the Study
19
Sampling Design
19
Locale of the Study
20
Data gathering procedures
20
Research tool and instruments
21
Data Analysis
21
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
College Students
Ethical Considerations
23
Expected output
24
REFERENCES
25
APPENDICES
34
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
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INTRODUCTION
Background of the Study
The stage of students who are in college is the phase where self-discovery and growth are
being developed, but it is also where some young adults are becoming late in adopting the
significance of financial literacy because they are not empowered at the beginning of their
financial lives with basic financial education. According to BSP Governor Benjamin Diokno,
among the seven financial literacy related questions, Filipinos only got three correct answers as
they only have limited understanding about compounding interest; the effect of inflation on the
buying power of households and investment risks, returns and diversification.
Financial literacy is a critical factor when it comes to the engagement of students not only
to their financial objectives but to the participation in the equity market as well. According to the
news published by CNN Philippines last April 2, 2021, the lawmakers in the country highlight
that financial literacy is still one of the major problems in the Philippines. The absence of such
knowledge would greatly impact one’s ability to make choices when settling towards monetary
decisions. More so, lacking financial knowledge causes stress in their adulthood that results in
having severe financial worries. Hence, this study is significant for it will provide proper
evaluation whether the existing financial education is adequate to assist students in having the
right information that would help them get involved in broadening their financial knowledge and
eventually get involved in the equity market.
We can say that students’ prior responsibility is meant for their academic commitment, and
with this, the most applicable approach of gaining income that would offer them convenience,
can be investing. Considering that in today’s time, there is a wider space in the market for
investing and buying stocks for free considering that the dominance of technology provides
convenience and has a big part in the transformation of stock trading since there are mobile apps
now that allow users to invest for free (Farrington, 2020).
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
College Students
The number of students who are involved in the equity market is not so high or worse, no
one is. Thus, to encourage students to enter the equity market they should get profound education
and knowledge about it. The Philippine stock market is one of the oldest stock markets in Asia.
Consequently, the Philippines has an active stock exchange even when other countries in Asia
are still developing their own stock market. However, it has been stated that only less than
one-half of 1% of the total population of the Philippines invests in the equity market (Dungo,
2019).
The current standing of the financial literacy and equity market in the Philippines, has
prompted researchers to assess the adequacy of financial education and its effects towards equity
investment for all college courses of DLSL. The researchers have chosen this educational
institution since it is known to provide quality education. The participants of the study are all in
colleges of the said institution because the researchers believe that everyone should have
adequate financial education regardless of the field they belong to. The researchers have chosen
the Equity Market since it is one of the most flexible investment forms that even undergraduate
college students can maneuver and make their investments grow.
This project aims to propose a module that can merge in the existing financial education
of the college students in the De La Salle Lipa. This can be possible through the help of the
professionals in the field and in equity markets. Through introducing the depth concept of
investing in equity markets and feeding the students with elaborated financial knowledge,
financial opportunities of the students can be extended and would help them to responsibly build
their own investments with proper foundation.
Statement of the Problem
This study is entitled “Assessment of Adequacy in Financial Education of College and
its Effect on Student Interest to Participate in the Equity Market” that attempts to determine
the adequacy of the current financial education of college students of De La Salle Lipa have.
Hence, the study sought to answer the following questions:
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
College Students
1. What is the students’ perception on the adequacy of financial education?
2. What is the students’ level of financial literacy?
3. What is the students’ financial behavior?
4. What is the students’ intention to participate in the equity market?
5.
What is the effect of financial education on financial literacy?
6. What is the effect of financial literacy and the adequacy of financial education to
financial behavior?
7. What is the effect of financial behavior on intention to participate in the equity market?
Significance of the Study
The SDG that is correlated with this research is Goal 8: Decent work and Economic
Growth. The researchers believe that the sufficiency of financial knowledge can lead to
responsible investing which has a big impact on economic growth. Considering that an escalating
investment adds to the stock of capital, and the quantity of capital that the economy has is an
indicator of productivity. Therefore, the higher the investment, the higher the capital market is
being turned into productive capital which fuels the economy.
Accordingly, Goal 4: Quality Education of the SDG also corresponds to the purpose of
this research which is to assess the adequacy of financial education. An effective investment and
proper financial management would not be possible without financial education. Having
financial education integrated in the curriculum of the college students would start to awaken the
student’s thought that one has to be financially literate to survive and succeed. A high level of
financial education would not only provide students with necessary skills and knowledge, but it
would also lead them to implement and internalize a mindset of using skills and knowledge to
actively manage their finances. (Herman et al., 2015). Thus, the importance of financial
education does not just steer the students towards its primary goal because the effects of having
sufficient financial knowledge branches out and opens more opportunities.
SDG 11 is about sustainable cities and communities. One of the targets of this SDG is to
foster a developed community through financial assistance. Thus, our study can be one of the
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
College Students
responses to this target in such a way that our expected output would attend to aid the financial
struggle of the community. Moreover, an increase in investment is crucial for economic growth
but more than this, when the investments in the country increase it will generate more money in
the market that can be used for the further development of the company. These companies can
help us achieve SDG 11 through their CSR programs that aim to give back to the less fortunate
and the environment. Imagine hitting two birds in one stone, the environment and the community
will develop as the economy grows
The result of the study will be beneficial to the following sectors:
To the college students of DLSL, the research will serve as a future reference on their
investments undertakings. Since the topic of the study deliberates about adequacy of financial
education, specifically the effects of it towards the participation of the respondents in equity
markets, the study can serve as a basis in analyzing and understanding the field of study. Thus,
the study will serve as additional information that can broaden their knowledge and develop their
awareness.
To the Higher Educational Institutions, this research can provide guidance in teaching
financial literacy. It will assist the institutions in making lesson plans and provide deep
understanding to the students.
To CHED, the result of this study can serve as a standard information in improving the
contents of the curriculum specifically when it comes to financial education that is being
implemented in the universities. Thus, this study is an essential factor to consider since the
current curriculum is in need of modifications.
To future researchers, this research can be a framework for future researchers aspiring
to assess financial education in DLSL. Hence, the study will serve as an advantage on widening
the information, facts and data regarding financial literacy.
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
College Students
To the Financial Management Students, this research will serve as a future reference
for students who are enrolled in this program or any business related course. The data produced
will help them emerge in identifying the adequate financial education that will help them in
cultivating their financial knowledge.
Research Objectives
In the present circumstances, some college students are still lacking familiarity, skill and
experience with financial literacy. With this, the researchers aim to attain the following
objectives:
1. To describe the adequacy of financial education.
2. To describe the level of financial literacy.
3. To describe the financial behavior.
4. To describe the intention to participate in the equity market.
5.
To find the effect of financial education on financial literacy.
6. To find the effect of financial literacy and the adequacy of financial education to financial
behavior.
7. To find the effect of financial behavior on intention to participate in the equity market.
8. To present the results in a quorum with the HEI administration to appraise the educational
managers on any need to improve the financial literacy in the curriculum. Moreover, the
proponents wish to develop and present sample modules based on the result of the study.
Research Framework
Ho1: Financial education has a significant effect on financial literacy.
Ho2: Financial literacy has a significant effect on financial behavior.
Ho3: Adequacy of financial education has a significant effect on financial behavior.
Ho4: Financial behavior has a significant effect on intention to participate in the equity market.
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
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Figure 1. Conceptual Framework
The researchers used a conceptual framework that highlights the variables such as
financial education, financial literacy and financial behavior that leads to the student’s intention
to participate in the equity market. Through this framework all the relevant variables are
discussed and the pros and cons are unraveled that adversely affects students' current stand when
it comes to investments and stock market participation. This framework makes the paper follow
a step-by-step procedure when it comes to the flow of information that makes this study easier to
follow and understand. It is supported by different opinions from various authors of the same
grounds that makes it reliable and well founded.
A study conducted by Xiao & O’ Neil (2016) states that financial education improves
several different aspects of financial literacy and emphasizes the significant role of financial
education towards people with low levels of financial literacy. Accordingly, financial education
may lead to the perceived financial literacy outcome since a financially educated person is
believed to be one who not only acquires the necessary knowledge and skills, but also puts them
into informed action (Amoah, 2016).
Widyastuti (2020), also reiterated that a person with
prestigious financial education would result in having a higher level of financial literacy. With
all these claims, financial education is believed that it can fill an empty space in the movement
towards financial literacy.
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
College Students
The influence of financial education towards financial behavior depends on the amount
on how people are sustained by it and whether they perceive it in accordance with relevant
information (National Endowment for Financial Education, 2015). The study of Wagner (2015)
claims that financial education is not considerable in affecting short-term behavior because
people with short-term behavior gain their learnings through life experience and in less formal
instruction. However, the bright side of this study appears to have a positive influence on
long-term financial behavior.
Beside financial education, the factor which is also significant in contributing to affect
financial behavior is financial literacy. The said process of financial literacy is to make people
aware about safe savings and other investment products available and this can lead to better
financial behavior in terms of saving and budgeting (Sangeetha et al., 2019). Thus, the study of
Widyastut et al., (2020) has concluded that there was a positive influence between financial
literacy on financial behaviour. The results proved that the effect of financial literacy on financial
behavior is statistically accepted and has a positive significant influence of financial literacy on
financial behavior. Therefore, a higher financial literacy can foster someone to act in effective
financial behavior.
Correspondingly, financial behavior contributes to the investing intention of an
individual. A study from Harrison (2016), stated that financial behavior provides understanding
to the human characteristics that certainly affects peoples investment intentions. Yang et. al
(2021), shows the same interest as they claim that the financial behavior of an individual
substantially affects investment intention because the behavior signifies an investor’s enthusiasm
in exploring and performing a particular action. With all these claims, it demonstrated that the
impact of financial behavior is significant and has an impact on the investment intention of an
individual. As a result, developing financial behavior can encourage someone to engage in the
equity market.
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
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Figure 2. Operational Framework
The operational framework above presents the adapted elements that underlies how the
researchers’ ideas work together as a whole. It is modified to align it with the objective of the
research study. Nevertheless, this model indicates that adequacy of financial education, level of
financial literacy, and financial behavior are the determinants which serves as the dependent
variable of the study. Through this, the researchers ought to assess the students’ intention to
participate in the equity market. Thus, the scheme flows reveal whether these dependent and
independent variables affect one another. In essence, this framework was conducted in order to
trace and establish students’ intention to participate in the equity market.
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
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REVIEW OF RELATED LITERATURE AND STUDIES
This chapter will present literature reviews related to the assessment of adequacy in financial
education of College and its effect on student interest to participate in the equity market. This
section contains information, concepts, theories and findings from different sources like journals,
books, websites, articles, and thesis that are contributory and fitting for the selection and
development of the theoretical framework of the study.
Financial education
Banko Central ng Pilipinas defines financial education as a process of systematic
instruction to escalate financial literacy and financial capacity of an individual in order to run
their own financial lives and make the best benefits out of accessing financial resources and
services. A number of reasons explain the essence for financial education.
Financial education is needed at all ages to prevent costly mistakes that can have
long-term impact (Wagner, 2019). Consequently, individuals who had sufficient financial
education had a higher level of financial literacy than those without (Kim & Xiao, 2021). As the
population escalates, financial education becomes more recognizable as a tool in helping
individuals in grasping financial facts and equipping them to act accordance to the knowledge it
brings (Burke et al., 2020)
However, the contingency of individuals who do not grasp enough financial knowledge
throughout their educational stage can lead to poor saving management and irrational investing
behavior (Segura & Zamar, 2019).
Evidently, a survey conducted by the BSP revealed that only 55% of Filipino adults are
informed about inflation on the prices of goods and services. This low figure gives the urge to
implement a measure that seeks to introduce a subject regarding savings and investment in the
curriculum for junior high school in order to promote proper money management habits as they
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
College Students
foster the students in participating in investments (CNN, 2021). Finally, an adequate level of
financial education can stimulate the development of a student’s financial knowledge and direct
students in the participation in responsible and effective investing.
Financial literacy
Financial literacy is a level of knowledge and understanding about financial concepts and
risks, skills, and principles (OECD, 2018). According to Sjam (2016), it is the ability to use their
acquired comprehension and capabilities to effectively manage one's financial resources and
make important financial decisions over time. Meyers (2020), has the same claim with Sjam
because she mentioned in her thesis that financial literacy is the level of personal finance
knowledge that an individual encompasses in order to make beneficial financial decisions.
Hence, Meyers (2020) also claimed that once an individual becomes financial literate, the
knowledge can be applied to any financial situation.
On the other hand, the authors Garg and Singh (2018) analyzed the level of financial
literacy among the youth globally. The authors found evidence that the level of financial literacy
among young people is low, being a cause for concern. Meyers (2020), has uncovered the lowest
average score in the survey from senior high school in the United States regarding financial
literacy. The survey revealed that only 48.3% (under the passing score) of 6800 students passed
the survey.
Further, studies have shown that the Philippines has been dealing with problems with
financial literacy as well. The World Bank exposed that 98 percent of Filipinos could not answer
questions regarding financial literacy (Lee-Chua, 2020). According to the BSP, there is an in
demand need of improving financial literacy for Filipinos.
Thus, the lack of financial literacy reflects the minor amount of Filipinos that are
participating in the equity markets. Dungo (2019) mentioned that 98% of the total population in
the Philippines is not aware of investing in the equity market. He also stated that one of the main
reasons why only 2% of the population invests is the lack of financial literacy.
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
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Financial Behavior
Any human behavior that is relevant to money management can be classified as financial
behavior. Common financial behaviors include cash, credit and saving behavior (Özmete, 2015).
Attitude towards money determines financial behavior (Potrich et al., 2016). Hence, this mainly
concerns human’s actions regarding money management (Wizely, 2020) and attitude towards
money that determines financial behavior (Potrich et al., 2016).
The four specific financial behaviors that one needs to exhibit in order to achieve
financial well-being are living within their means, seeking knowledge about their financial
decisions, planning and goal-setting (Long, 2020). Consequently, individuals who apply positive
financial behavior will show a higher level of satisfaction on their personal finances (Yeti, 2017).
On the other hand, the adherence of inadequate financial behaviors can lead to temporary
or long-term debts, inability to pay bills or filing for bankruptcy and such behaviors result from
economic factors along with psychological ones (Fenton et al., 2016). Consequently, the starters
in investing tend to have behavioral factors such as representativeness, overconfidence,
anchoring, gambler’s fallacy, availability, herding, over-under reaction, mental accounting,
self-control and regret aversion affect investment intentions (Phung & Nguyen, 2017).
However, the side effect of the spread of investors who are considered beginners in the
investment sector, does not rule out the possibility that student investment behavior will lead to
behavioral biases (Istiana & Nur, 2020). Behavioral finance suggests that psychological
influences and biases impact the financial behaviors of investors and financial professionals
(Hayes, 2021). Basically, behavioral finance seeks to clarify the psychological perspective on
what, when and how investments should be made (Saxena, 2020). Behavioral finance theories
attempt to clarify and develop an interpretation of investors’ thought habits, and the cognitive
and decision-making mechanisms involved (Bikas & Glinskyte, 2021).
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
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Equity Market
According to Chen (2020), the equity market is a platform where buyers and sellers meet.
It is a marketplace where investors trade their stocks through buying and selling (Pesolab, 2021).
CFI (2021) on the other hand, imparted that an equity market is a focal point where company’s
shares are issued and traded. CFI (2021), also mentioned that an equity market hails in the form
of an exchange wherein it acts as the middleman between the buyers and sellers.
According to Ali (2020), there is an overall market capitalization of $89.5 trillion from
the world’s stock market exchanges. In his journal, he stated that the three biggest exchanges are
from NYSE, Nasdaq and Japan Exchange Group that rank correspondingly. He also mentioned
that global equity markets are commonly dominated by US companies. With this, Ross (2020)
stated that the dominance of the American companies provides investment opportunities to
people.
On the other hand, Pesolab (2021) stated that the Philippines has one existing exchange –
Philippine Stock Exchange (PSE). Ho and Odhiambo (2016) disclosed that the Philippine Stock
Exchange has gone into numerous reforms and development since the 1990s. It is also indicated
in their study that the Philippine Stock Market has undergone skyrocketing growth over the
years. However, Ho and Odhiambo (2016) do not deny that the Philippines are still experiencing
a wide range of challenges.
Johnson (2019) said that engaging in the equity market provides massive potential
returns. Maxwell (2019) supported the previous claim by reiterating that the equity market has a
huge potential in increasing one’s security in a short span of time. Furthermore, the equity
market can provide the
best opportunities for students to invest (Thapa, 2018). However,
anything with excessive possibility for returns obtains significant threats as well. Aside from
this, investors can anticipate volatility on a daily basis. When volatility overtakes, investors
could take years to rebuild their portfolios. (Maxwell, 2019).
Thapa (2018) emphasizes that stock markets have a lot to offer. But an individual should
be able to understand that equity markets are volatile. With this, it is important to understand
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
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how the market works (FinanceGAB, 2020). Henceforth, individuals should embody sufficient
knowledge, ideas and skills before participating in the equity market (Thapa, 2018).
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METHODOLOGY
This chapter explains the research methodology, which includes precise methods and
techniques for gathering accurate data. This chapter will provide accurate data that is crucial to
the research project.
Research design
This study is engaged in descriptive and causal design. Descriptive design is to be used
since our expected data would describe the variables we have. Second is causal design to
examine the adequacy of financial education and its effects towards students’ participation in the
equity market. These designs were contemplated to be an appropriate approach since the
purpose of this study is to focus on describing and examining the adequacy of financial
education and its effect towards the students' intention to participate in the equity market.
Respondents of the Study
The respondents of the research will be coming from the college department of De La
Salle Lipa. It was deemed that they were the most appropriate people for the study since they
were the ones who can communicate about the existing financial education they have. There are
3 823 college students for the school year 2020 to 2021 for the second semester in De La Salle
Lipa. It consists of 1 190 students in CBEAM, 619 students in CEAS, 376 students in CITHM,
26 students in CIHTM-LICA, 1 035 students in CITE, 368 students in CNURSING, 107 students
in COL, and 102 students in graduate program.
Sampling Design
In this study, the researchers will use the non-probability sampling method of purposive
sampling. In determining the sample size, the researchers used the G-power statistical tool with
the following parameters: the effect size of 0.15, 5% alpha, 80% power, and total sample size of
60.
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
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Locale of the study
The research study’s target locale is De La Salle Lipa, which is located at 1962 J. P.
Laurel Highway, Barangay Mataas Na Lupa, Lipa City, Batangas. It was founded in 1962 by the
brothers of the Christian School. This institution is a part of the educational service industry and
considered as a learning provider that promises its stakeholders for involving people of goodwill
for the transformation of the society. It is one of the leading educational institutions in Southern
Luzon and was also a pioneer when it comes to the use of online platforms integrated with the
current curriculum or also known as Digital Campus.
Data gathering procedure
The researchers will send a letter of approval to De La Salle Lipa's ethical research
department prior to conducting the study. The letter aims to confirm that the questions are
appropriate for the respondents while also requesting permission to perform the study. After the
questionnaire has been verified and approved by the institution, the researchers will use Google
Forms as a means in collecting the data. The data to be gathered from the respondents will be
solely voluntary among the college students of De La Salle Lipa. The survey will be conducted
online given the situation that the researchers and the participants are facing - a pandemic due to
Covid-19. When the information is all gathered, the researchers will analyze the results by first
compiling the data in a spreadsheet. The researchers will first clean the collected data in order to
remove the opaque and unnecessary elements. After that, the clean data will be translated into
values suitable for computer entry and statistical analysis. Then, the variables that will be created
and will be summarized in order to simplify the analysis. The researchers aim to produce an
output that is easy to follow and understand to avoid further confusion and further
misunderstanding of the topic. To ensure the study's confidentiality, the researchers will state in
the online survey that the details will be kept confidential, used only for academic purposes, and
that the respondents' identities will be kept private.
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
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Research tool and instruments
The researchers will use an adopted questionnaire to gather the needed data. The data
needed for the study will be gathered using an adapted questionnaire from the study of
Widyastuti, Sumiati, Herlitah and Melati (2020) which reflects subjective financial literacy that
consists of 5 items and financial behavior that consists of 5 items. Thus, the third part of the
questionnaire consists of 4 items related to financial education sourced from the study of Kim et
al., (2015). The last part of the questionnaire consists of 3 items that measure the intention to
participate in the equity market which is developed by Thapa (2018). All sections of the
questionnaire will be operationalised using 5-points Likert’s scale.
Data Analysis
In determining the significant data, the researchers will evaluate the results wherein the
following statistical tools and techniques will be used under the data analysis:
1. Mean will be used to describe financial literacy, financial education, financial
behavior and intention to participate in the equity market.
Table 1. 5-point Likert Scale
(Financial Literacy)
Mean Range
Response Category
Interpretation
4. 50 - 5.00
Strongly Agree
Very high
3.50 - 4.49
Agree
High
2.50 - 3.49
Unsure
Moderate
1.50 - 2.49
Disagree
Low
1.00 - 1.49
Strongly Disagree
Very low
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
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Table 2. 5-point Likert Scale
(Financial Education)
Mean Range
Response Category
Interpretation
4. 50 - 5.00
Strongly Agree
Very adequate
3.50 - 4.49
Agree
Highly adequate
2.50 - 3.49
Unsure
Moderately adequate
1.50 - 2.49
Disagree
Slightly adequate
1.00 - 1.49
Strongly Disagree
Not adequate
Table 3. 5-point Likert Scale
(Financial Behavior)
Mean Range
Response Category
Interpretation
4. 50 - 5.00
Strongly Agree
Very High
3.50 - 4.49
Agree
High
2.50 - 3.49
Unsure
Moderate
1.50 - 2.49
Disagree
Low
1.00 - 1.49
Strongly Disagree
Very low
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
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Table 4. 5-point Likert Scale
(Intention to Participate in the Equity Market)
Mean Range
Response Category
Interpretation
4. 50 - 5.00
Strongly Agree
Very high
3.50 - 4.49
Agree
High
2.50 - 3.49
Unsure
Moderate
1.50 - 2.49
Disagree
Low
1.00 - 1.49
Strongly Disagree
Very low
2. Simple regression analysis will be used to determine the relationship between the
single dependent variable and one independent variable.
3. Multiple regression will be used to determine the relationship between two
independent variables and one dependent variable.
P value less than 0.05 will indicate a significant effect.
Ethical Considerations
The following ethical criteria will be followed throughout the study's process and execution:
1.
The research participants should not be subjected to any kind of harm.
2.
Authorization should be fully obtained from the participants of the study.
3.
Confidentiality of the acquired data from the interview should be secured.
4.
All inputs in the study should be reported with honesty, transparency, and accountability
to avoid any form of misleading information.
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
College Students
Expected Output
The expected output for this research is to propose a module that can merge in the
existing financial education of the college students in the De La Salle Lipa. The researchers came
up with the module as a medium because this promotes self-paced learning. Having it in the form
of modules can be accessible to all college students. More than the readings, the module is also
formulated with talks, videos, discussions, and most importantly exercises that would help the
students to execute their learnings. This can be possible through the help of the professionals in
the field and in equity markets. The researchers have thoroughly considered the possible effect of
this solution in the participation of DLSL college students through introducing the depth concept
of investing in equity markets and feeding the students with elaborated financial knowledge,
financial opportunities of the students can be extended and would help them to responsibly build
their own investments with proper foundation.
24
Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
College Students
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Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
College Students
APPENDICES
Sample Questionnaire
Name (Optional):
Gender:
( ) Male
( ) Female
College Department: ( ) CBEAM
( ) CEAS
( ) CITHM
( ) CITE
( ) COL
( ) Graduate Program
( ) CNURSING
( ) CIHTM-LICA
Please rank the following on a scale of 1- 5 (1: Strongly Disagree, 2: Disagree, 3: Unsure, 4:
Agree, 5: Strongly Agree) by circling the response that best reflects your level of agreement or
disagreement with the statement.
I.
Financial Literacy
1.
An investment with a high return is likely to be high risk.
1
2
3
4
5
2. High inflation means that the cost of living is increasing rapidly.
1
2
3
4
5
3. It is usually possible to reduce the risk of investing in the stock market by buying a wide
range of stocks and shares.
1
4.
4
5
2
3
4
5
It is less likely that you will lose all of your money if you save it in more than one place.
1
II.
3
Buying a single company stock usually provides a safer return than a stock mutual fund.
1
5.
2
2
3
4
5
Financial Behavior
1.
I set financial goals for the next 1-2 years for what I want to achieve with my money.
1
2
3
4
5
2. In a typical month, it is difficult for me to cover my expenses and pay all my bills.
1
2
3
4
5
34
Assessment of Adequacy in Financial Educationand its Effect on Interest to Participate in the Equity Market of
College Students
3. I actively consider the steps I need to take to stick to my budget in the next 1-2 months.
1
4.
2
3
4
5
I like to look at my budget for the next 1-2 months in order to get a better view of my
spending in the future.
1
2
3
4
5
5. Saving money for the future is something I think about.
1
2
3
4
5
III. Financial Education
1. I am satisfied with the financial education I attained.
1
2
3
4
5
2. The financial education that I got helped me understand and appreciate my savings and
stock purchase plan.
1
2
3
4
5
3. Financial education provided me with the information I needed that helped me to be more
comfortable making independent decisions about my financial future.
1
2
3
4
5
4. The financial education offered met my needs and expectations.
1
2
3
4
5
IV. Intention to Participate in the Equity Market
1. Do you intend to participate in the equity market?
1
2.
2
3
4
5
Does your course introduce or tackle investing and trading of stocks?
1
2
3
4
5
3. Do you have experience in investing or trading?
1
2
3
4
5
35