Chapter 4

DISCUSSION

This chapter presents the discussion of the results of the

study, which includes: the level of financial management

practices, the respondent’s distribution profile when categorized

according to their perceived level of financial management

practices, and variables of financial management practices

separating the very high group from the other group levels

The Level of Financial Management Practices

The respondent’s overall perceived level of financial

management is high. This is indicative that majority of the

respondents believe that all the variables in this study was

being manifested or simply financial management practices under

study is evident. Although it can be said that such result is

satisfactory, it would be much better that this level of

financial management practices be improved to the next higher

level since it was concluded in recent researches that personal

financial management has become increasingly important in today’s

world and this is because financial decisions are among the most

important life shaping decisions that people make (Bimal, 2011;

financial management as a critical concept that allows people to

control their financial situations and realize a feeling of

financial security, create wealth and be in a state of financial

well being. Personal financial management helps us to manage the

finance of our home which includes budgeting, saving, investing,

debt management and other aspects related to personal money where

by an individual can achieve personal goals (Bhatt, 2011). In

other words, personal financial management is the process of

controlling income and organizing expenses through a detailed

financial plan. Learning to keep track of money coming in, and

tailoring the use of this money to fit expenses provides a

systematic way and utilizing income (Wilner, 2009).

The high-level description on indicator savings management

is indicative that majority of the respondents observed that this

indicator is evident in their personal financial management

practices. Although an acceptable result, this still needs to be

improved to the next level since it was found out that one of the

most widely recognized financial management principles is to save

regularly, generally by setting aside some amount for savings

before paying for expenses (Hilgert, et al., 2003). According to

Virani (2012), saving is scarifying the current consumption to

increase the living standard and fulfilling the daily

requirements in the future.

management is indicative that majority of the respondents

observed that this indicator is very evident in their personal

financial management practices. A very satisfactory result and it

has to be sustained since it was concluded in previous research

that money management practices are the ability to plan for the

future and manage money efficiency is important indicators of

financial capability (Ferrer, 2017). Money management practice is

the process of budgeting, saving, investing, spending or

otherwise in overseeing the cash usage of an individual or group.

According to Kempson (2009), money management skills are

influenced by three consequential factors; financial control,

making ends meet and approaches to financial management.

Financial control relates to budgeting, keeping records and

knowledge of daily living costs and the competency to meet the

financial obligations as they fall due. Making ends meet refers

to a person’s faculty to predict times when finances may be low,

and to remedy that situation. This also includes assessing the

competency to maintain spending and keep up with commitments

Furthermore, the high-level description on indicator

investment management is indicative that majority of the

respondents observed that this indicator is evident in their

personal financial management practices. They invest part of

still needs to be improved to the next level since it was found

out that investment is an important part of an individual's

financial plan. Individuals invest to increase their future

wealth (Jayantilal, 2017). The money should not just be saved but

should be invested, more often than not, the interest earned by

saving money on the bank is less than the inflation, thereby

reducing the actual worth of the deposited money (McMahon, 2013;

Heer, B., & Süssmuth, 2009).

Finally, the high-level description on indicator debt

management is indicative that majority of the respondents

observed that this indicator is evident in their personal

financial management practices. They invest part of their income

paying their personal debts. Although an acceptable result, this

still needs to be improved to the next level since it was found

in past researches that debt management practices is the ability

of financial manager or management to make good use of the money

(Ezigbo,2001). Healthy personal financial management will be

based on good financial knowledge (Timmon&Spinelle,2007), f

furthermore, debt management is one of the key components that

will make individual financial management in good shape (Chong et

al.,2010).
The Respondent’s Distribution Profile When Categorized

According their Level of Perception on Personal

Financial Management Practices

Four categorized groups of level of perception on personal

management practices were identified based on the group’s

obtained mean scores: very high group, high group, the average,

and the low group. Majority of the employees belong to the very

high and high level group and only a few employees belonging to

average and low group level. This profile indeed seemed to be a

satisfactory picture of the level of perception personal

financial management practices of the respondents despite the

pandemic period. However, it would be much better if this

respondent’s level of perception would be sustained or improved

to depict the picture of a very observable personal financial

management practices.

The Variables of Personal Financial Management Practices

Separating the Very High Group from the Other Group

Levels and Implications

used in this study were identified to separate the very high

level group from the other groups (high, average, and low) and

these variables are: savings management, money management and

investment management. This implies that the high group, average

group, and low group need enhancement on these variables in order

for them to become a member of the very high group. The School’s

Administration through the HR Department therefore has to develop

a Enhancement and Sustainability Program that can improve or

enhance personal financial management practices among its

employees in terms of the these variables. This supports the

findings of Personal Financial Management has become increasingly

important in today’s world. This is because Financial decisions

are among the most important life shaping decision that people

make (Bimal,2011; Chinen & Endo,2012).Describe personal Financial

Management as critical concept that allows people to control

their financial situition and realize a feeling of financial

security ,create wealth and be in a state of financial well

being( Joo, 2008)

study which is the Theory of Planned Behavior by Adzen which was

conceptualized as a method to predict human behavior regardless

of situation and also to design interventions to assist people in

their attempts to curb risky or unhealthy behavior. Both theories

have been used to predict different types of behavior, including

financial behaviors such as investments, saving, and debt

behaviours (e.g., Chudry et al., 2011; East, 1993; Kennedy &

Wated, 2011).

Conclusions

Financial problems resulting from poor personal financial

management is known to cause financial stress and affect

individual productivity at the workplace. These financial problem

include over-indebtedness, overspending, unwise use of borrowed

funds, bad spending decisions, poor money management and

inadequate resources to make ends meet. In this study, the

financial practices tested the ability of positive responsive

financial behavior of Davao Central College (DCC) Employees in

managing their personal finances on four key area of personal

management and debt management. The findings of this research

established that there are more employees (66%)found to have

fully embraced the use of the standard practices recommended in

managing their personal financial management. Based on the

findings, only (4%) of the employees were found have not wholly

embraced the use of the standard practices recommended in

managing their Personal Financial Management.

Overall however, the financially literate had a better

appreciation and application of the financial management

practices and we can therefore conclude that financial literacy

leads to better personal financial management practices.

Recommendations

The researcher recommend future researchers to expand this study

and investigate areas not covered in this study,as well as ti

include additional significants factors in order to gather more

information to uplift ,and enhance personal financial management

among DCC employees, the researchers recommend to invest more and

not just save their money. Investing can double money they save.
They should be more aware that investment is one of the best way

of saving money.