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FACTORS INFLUENCING FINANCIAL MANAGEMENT SKILLS OF

ACCOUNTING STUDENTS AT PHINMA CAGAYAN DE ORO COLLEGE

S.Y. 2023-2024

Laiza Andrea Adlawan, Venice Alli, Felecity Exchaure, Ryziel Ivan V. Carupo, Richa

Desierto, Cyr Kyiean Dumaog, Rhea Mae Gabas, Nadine G. Macabodbod, Ma. Jesa dela

Peña, Charen Kaye B. Pingkian, Jessica D. Rañoa, Jessiel Mae R. Solamin

College of Management and Accountancy: PHINMA Cagayan de Oro College

ACC 116: ACCOUNTING RESEARCH METHODS

Bernard L. Naval, CPA, MBA

March 2024
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CHAPTER 1

The Research Problem

Introduction

Financial management has become increasingly important in today’s era because it is

involved practically in most transactions of everyone’s lives . People’s finances serve as an

important resource especially in sustaining their basic needs and covering related expenses in

each household and in businesses. Additionally, its importance is increasing day by day as

living becomes costly. However, people might have less than enough of it that makes it even

more challenging to them to budget in covering all of its needs. Due to the fact that people

have unlimited needs, the available financial resources that they have must be properly

allocated in order to satisfy those needs. Individuals’ knowledge and skills of financial

management is highly crucial as it enables them to make better and more informed choices

about the application of limited resources to reach financial goals (Swart, 2016)

Financial management is defined as behaviour and perceptions about how finance is

managed. For the present, student financial management refers to the behaviour and

perceptions of how students manage their finances and handle their money during studies

((Darlynie,Khalid,Sapiri, 2019). However , the ability to manage finances and make the right

decisions at this time is a real challenge that must be faced by every person in everyday life.

According to Rafi (2016), university students’ have difficulties in managing their limited

financial source. Most of them are linked to ineffective financial management.For students,

they may find financial responsibilities significantly change as they go from high school to

college. This phase of transition is crucial and at the same time challenging to students since

it is when parental financial supervision ends and they take full responsibility for handling

their funds (Khalisharani, Sabri, Johan, Burhan.,2022).

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They take on the duty of handling funds, which includes planning, spending, and

saving. Additionally, the college students who have acquired a reputation of irresponsibility

and impulsivity, which has contributed to the perception that they are poor managers of

money (Widener,2017). It is when they are more concerned with desires that are first met

than needs. Some students put their wants ahead of their needs, which may lead to impulsive

financial decisions. Their spending patterns might not be in line with proper money

management, which could put them in financial trouble. Also , as they tend to overspend and

prioritise wants over their needs and sometimes lead to having a high student debt. They may

also lack the self-discipline to set aside a small amount of money for their necessities. Which

they could also neglect to handle their money’s flow and management appropriately. As a

result, students may struggle to make ends meet which consequently leads to serious

financial stress and difficulties. Furthermore, many students are struggling in managing

their finances effectively while enduring challenges in academics. According to

Mowreader(2022), survey found that students who had experienced financial challenges

while being enrolled had affirmed to have difficulty in concentrating on academics. This

creates an additional barrier to success for students who are already facing academic

difficulties.

Thus, in light of this concern, the researchers believed that the link between financial

difficulties and academic performance is significant and cannot be ignored. Given this issue,

the researchers reasoned that it would be necessary to look at the aspects influencing college

students’ financial management skills.This study also intends to gather further research

findings from other investigators that will aid in our comprehension of the factors influencing

students’ inadequate financial management practices and to make a substantial contribution

to the solution of this problem.

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Theoretical Framework

To strengthen the results of this study, it will be anchored to the Theory of Planned

Behaviour that was developed by Icek Ajzen(1985,1991). This theory stated that most human

behaviour results from an individual’s intention to take on specific behaviour and the

capability of an individual to make a precise decision about it (Ajzen,1985). It also suggests

that intentions to engage in various behaviours can be accurately predicted by considering

attitudes towards the behaviour, subjective norms, and perceived behavioural control. These

factors play a significant role in shaping individuals' intentions and subsequent actions.

Additionally, intentions, along with perceptions of behavioural control, are strong predictors

of actual behaviour.

In this theory, the attitude refers to the degree to which a person has a favourable or

unfavourable evaluation of the behaviour of interest. It entails a consideration of the

outcomes of performing the behaviour. While subjective norms pertain to the belief about

whether most people approve or disapprove of the behaviour. It relates to a person’s beliefs

about whether peers and people of importance to the person think he or she should engage in

the behaviour. Moreover, the perceived behavioural control refers to a person’s perception of

the ease or difficulty of performing the behaviour of interest. In general, a more positive

attitude, more favourable subjective norms, and higher perceived control are associated with

stronger intention to perform the behaviour. The TPB also states that behavioural

achievement depends on both motivation (intention) and ability (behavioural) control. In

return, intention and perceived behavioural control can help predict the performance of the

behaviour. The stronger intention, i.e., stronger willingness to carry out the behaviour, can

lead to a higher probability of behavioural achievement. By considering these factors,

researchers have been able to accurately predict and understand various financial behaviours,

providing valuable insights for financial planning and intervention strategies. By

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understanding and analysing these factors, researchers can gain insights into human

behaviour and potentially influence behaviour change interventions. Regardless of the

intention, external factors may also directly force or prevent behaviours, contingent on the

degree to which an individual truly possesses behavioural control and the degree to which

perceived behavioural control accurately reflects actual behavioural control.

This theory has been widely used in previous studies which includes predicting

financial behaviours. This theory posits that an individual's intentions to engage in financial

behaviours, such as saving, investing or spending, can be predicted by their attitudes towards

these behaviours, subjective norms, and perceived behavioural control. Researchers found

that attitude, subjective norm and perceived behavioural control have a direct positive effect

on intention towards saving and final saving behaviour (Satsios & Shadjidak., 2018). Another

research study had utilised TBP to explore predictors of financial behaviour among working

adults and revealed that behavioural intention, perceived behavioural control . And that

financial knowledge which is positively associated with the attitudes towards retirement,

perceived behavioural control, subjective norms, and financial behaviour has a positive

relationship with financial behaviour among working adults , which indicates that working

adults with greater perceived financial knowledge tend to practise more responsible financial

behaviour (LongShe, Rasiah,Weissmann, Kaur 2023). Moreover, this theory of TPB was

used to answer the factors that influence personal financial management skills among

students in the Faculty of Entrepreneurship and Business at UMK. This study concludes that

factors such as financial knowledge, financial attitude, and family influence are significantly

correlated with the personal financial management skills of the students.

In this study, the researchers conclude that this theory of planned behaviour can be

highly relevant and useful in studying the factors influencing financial management skills

among students. By considering the elements of TPB, such as attitudes, subjective norms, and
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perceived behavioural control, researchers can gain insightful understanding into how these

factors impact students’ financial knowledge and behaviour. By studying these factors within

the framework of TPB, researchers can gather comprehensive data about the predictors of

students’ financial management skills.

Conceptual Framework

The study’s schematic diagram is shown in figure 1. It illustrates the research

paradigm that focuses on the factors influencing the financial management skills of students.

The independent variables identified include financial knowledge, financial attitude, family

influences, and financial self-efficacy.These factors will be further evaluated to determine

whether it significantly influences the financial management skills of students. In relation to

the theory employed in this study, financial knowledge and attitude are categorised under the

attitude determinant, which directly impacts financial management skills. Family influence is

associated with the subjective norm, highlighting the role of family dynamics in shaping

students' financial behaviors which was all linked to the theory of planned behavior.
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Figure 1: The Schematic Diagram of the Study

→一→
FINANCIAL
KNOWLEDGE

FINANCIAL ATTITUDE FINANCIAL MANAGEMENT

SKILLS

FAMILY INFLUENCES

INDEPENDENT VARIABLES DEPENDENT VARIABLE

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Statement of the Problem

The researchers purpose for conducting this study is to further investigate and

understand the factors influencing financial management skills of the students at Phinma-

Cagayan de Oro College. They believed financial management skills are crucial skills for

students to further develop as they enter adulthood in which they might deal with more

financial responsibilities. Nonetheless, it has been observed that a large number of students

have difficulty in managing their finances. With this, researchers aim to investigate the

underlying factors that influence financial management skills of the students including the

financial knowledge, financial attitude, and family influences. By addressing these factors,

researchers could possibly determine whether these independent variables do have a

significant influence towards financial management skills of the accounting students.

The study aims to investigate the factors that influence the personal financial

management skills of students. Specifically, the study seeks to answer the following

questions:

1. What is the level of financial knowledge among accounting students?

2. What is the level of financial attitude among accounting students?

3. What is the level of family influences among accounting students?

4. Is there a significant influence of financial knowledge on the students’ personal

financial management skills?

5. Is there a significant influence of financial attitude on the students' financial

management skills?

6. Is there a significant influence of family on the students financial management skills?

By addressing these research questions, the study aims to gain a comprehensive

understanding of the factors influencing students’ personal financial management skills.

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Hypothesis

This research topic has been chosen by the researchers to do further research in order

to gain better understanding about the influences of factors such as financial knowledge,

financial attitude and family towards the personal financial management skills of the

accounting students.

1. The first three research problem questions are free from hypothesis.

2. Financial knowledge

Null Hypothesis: There is no significant influence of financial knowledge to

the students financial management skills.

Alternative Hypothesis: There is a significant influence of financial

knowledge to the students financial management skills.

3. Financial attitude

Null hypothesis: is no significant influence of financial attitude to the students

financial management skills.

Alternative Hypothesis: There is a significant influence of financial attitude

to the students financial management skills.

4. Family influences

Null hypothesis: There is no significant influence of family influences on the

students' financial management skills.

Alternative Hypothesis: There is a significant influence of family influences

to the students financial management skills.

Significance of the study

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The study aims to investigate the factors that influence the financial management

skills of students. The possible results of this study will be helpful for the following

individuals including the teachers, parents and family members, policymakers, students and

future researchers.

Instructors: This study’s findings will support them in encouraging students to save

money, stick to budgets, and maintain financial records which will help them boost their

sense of financial self-efficacy.

Parents and family members: The result of this study is beneficial for parents and

family members as it will help them realise the importance of allowing their children to be

involved in the family financial matters which will be helpful in developing the proper

mindset and financial behaviour.

Policy makers and education administrators: findings of this study is beneficial to

them as it will serve as a significant basis for developing financial literacy programs that will

help students grasp the day-to-day financial practices of their lives.

Students: the results of this study is beneficial to them to have a better

understanding about their responsibility specifically in proper management of their own

finances and also encouraging them to enhance their financial management skills.

Future researchers- results are helpful for the future researchers as it will provide

them with guidance and information on the related topic they chose to study.

Scope and Limitations

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This study will focus on determining factors that potentially influence the financial

management skills of students. The research instrument will be using the survey

questionnaires to evaluate and determine the areas that are specified in the research

evaluation. Moreover, the respondents should be the college students currently enrolled in

Accountancy and Management courses for the school year 2023-2024.

Definition of Terms

The following concepts are intended to define for better understanding in grasping the

meaning of this study.

Financial management –Financial management defined as behaviour and

perceptions about how financial is managed. It also pertains to how an individual or a family

unit performs to budget, save, and spend monetary resources over time, taking into account

various financial risks and future life events.

Financial Knowledge – It is defined as an individual's degree of understanding about

important concepts related to personal finance and which is a measure of their knowledge

about personal finance.

Financial attitude – Financial attitude can be interpreted as a state of mind, opinion,

and evaluation of a person about his finances that manifests by the attitude.
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Chapter 2

Review of related literature

This chapter aims to provide a comprehensive review of existing literature on factors

influencing the personal financial management skills of accounting students. It explores

various aspects related to financial management, factors that influence these skills. The

chapter also identifies key gaps in the current understanding and sets the stage for the

research study.

Financial management is a key component to making our money work for us which

was significantly reflected in all areas of personal and business life. It has become a crucial

skill that helps us to create a comfortable life with an assurance of a secured future and

freedom to spend money to keep us happy and satisfied. Besides that, it also enables the

individual to make better financial decisions which reduces poverty, reduces debts and

increases savings and investments (Bimal Bhatt, 2011).

However, many people have been challenged to manage their finances and others

show irresponsible and impulsive approaches in handling their money which indicates poor

financial management. Poor financial management is a pattern of behaviours and decisions

that lead to financial difficulties and instability. Many Accountancy students struggle with

their finances due to inadequate financial management. Hics, S. (2021) stated that lack of

financial management knowledge has led to high student debt, failure to repay this debt, and

sometimes dropping out of college.It is a widespread issue that can have significant negative

consequences for individuals, families, and communities.

This chapter delves deeper into the various aspects of poor financial management,

exploring the contributing factors, common characteristics, and potential impacts. Financial
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problems are a serious issue that needs to be addressed as it leads to multiple stages of

problems such as health issues and academic performance. Norazlan, N. Yusuf, S. Majdhoub,

F. (2020).

According to Borbon, C. (2020), Many people are facing hard financial times and the

impact on their mental health, academic performance or motivation can be significant. This

includes worrying a lot or feeling anxious over money, arguing with loved ones, headaches,

feeling unwell, difficulty in sleeping, feeling guilty spending money on non-essentials,

anxiety, stress, and even failing grades in school. Moreover, according to Ummi Raida et al.

(2020), a lack of discipline and financial management leads to several youth financial

problems. In other words, financial problems lead to various problems that will eventually

affect the students academic performance. Another way financial problems could affect the

students' academic performance is stated by Widener (2017), in order to overcome the

financial problems, most students make a decision of having to work part-time and even

working for long hours, which takes away their time focusing on their academics.

Financial Attitude

A person’s financial attitude refers to their mindset, opinions, and assessment

regarding their finances, influencing how they approach financial matters, as indicated by

Rai, Dua, and Yadav (2019). The role of financial attitudes is crucial in shaping an

individual’s success or failure in financial management, as highlighted by Çoşkun and

Dalziel (2020).

According to Jackling & Calero (2006), Comprehending students’ attitudes towards

the accounting profession can be difficult due to their diverse life experiences, varying socio-

economic and educational backgrounds upon entering tertiary education, impacting their
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career choice beliefs. Adding to the complexity, students must weigh multiple factors,

including personal beliefs and the reactions of their surrounding environment, when making

career choices. In the study conducted by Ayu et al. (n.d.) it was stated that the general public

must understand the significance of financial attitude, financial behavior, and financial

knowledge in fund management because they are the most important variables in making a

long-term investment decision.

The financial troubles that the community, particularly the youth, frequently faces can

also be linked to financial attitudes. An individual’s attitude describes their feelings regarding

individual financial difficulties, which can be gauged by reacting to a claim or viewpoint

(Hidayat & Nurdin, 2020). Everybody’s attitude toward their daily financial actions can have

an impact, including attitudes that can impact a person’s capacity in the future and attitude

will guide their varied money management activities. According to the results of the studies

conducted by Rohmanto & Susanti (2021) and Ramadhan & Asandimitra (2019), financial

attitudes have a big impact on how families manage their finances

The success or failure of financial issues is significantly influenced by one’s financial

mentality. Positive attitudes influence positive behaviour. Applying a good and suitable

financial attitude is also a fantastic place to start when it comes to good and appropriate

money management behaviour. Students won’t be able to save money over the long run if

they don’t apply sound money management techniques Ameliawati, Rediana(2018).

According to Selcuk’s (2015) research, college students’ financial behaviour is influenced by

their attitude towards money. Positively oriented people are better able to budget their

money, plan their monthly bill payments, and manage their future savings. People with this

positive financial mindset, according to (Sabri and Aw, 2020), are more frugal with their

spending, implemented through careful planning for future financial needs and budgeting.
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A person’s financial attitude is reflected in his or her thoughts, beliefs, and evaluations

(Rafiqah et al., 2019). Financial mindset makes good choices and manages resources by

applying financial concepts to create and preserve value. The way someone feels about

money will influence how they behave and think about money, managing their finances,

creating a budget, and making judgements about what kind of investments to make

(Sorongan, 2022).

Based on research conducted by (Ameliawati & Setiyani, 2018), financial attitude is

one aspect that might have an impact on financial management. Financial attitude is defined

as a person’s state of mind, opinion, and judgement toward finances. According to the theory

of social learning, there is a three-way linkage that links each other’s conduct, environment,

and interior events that influence perception and action. In this study, financial attitudes and

financial management behavior influence perceptions and actions. A healthy and suitable

financial attitude might help to initiate effective money management practices. Additionally,

Financial attitude has a vital role in determining the success or failure of financial elements.

A positive mindset will influence excellent behavior. Good and appropriate financial conduct

can be initiated by adopting a good and proper financial mindset. Students will struggle to

save money in the long run unless they adopt a positive attitude toward financial

management.

Financial knowledge

Financial knowledge is defined as an individual's degree of understanding about

different personal financial concepts, which is a measure of their knowledge about personal

financial.’’ Financial knowledge, according to Kholilah and Iramani (2013), is one's mastery

of various things about the world of finance. Parents and schools are the main sources of
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financial education for youth, with a focus on saving money (Chowa et al., 2012). As it

developed, financial knowledge was included into education at different levels. conserving

money, and learning new things.

Financial knowledge is a crucial subject to take into consideration given the

substantial financial decisions that students must make in the modern world and the

significance of this information. Students make dozens of decisions in college – where to

live, where to eat, their academic major, organisations to join, student loans, and many others.

Their life may be affected by these choices in the long run. These choices could increase or

decrease income prospects as well as influence other decisions. This life cycle of decision-

making has financial consequences and having a solid base of financial knowledge is

important (Durband & Britt, 2012).

In today's globalized world, financial knowledge is becoming more crucial for

everyone who is in charge of handling their financial matters on a daily basis, not just experts

in the banking and investment industries. Having a high degree of knowledge empowers

individuals to make wise financial decisions as investors, savers, or consumers. These

decisions support growth and the economy as a whole. (Lusardi and Mitchell, 2011; Sohn et

al., 2012; Aprea, 2016; Atkinson and Messy, 2012; Erner et al., 2016).

Perry and Morris assert that a person's financial behavior is greatly influenced by their

level of financial knowledge, as they believe that an individual with greater financial

understanding will exhibit more responsible financial behavior. In the meanwhile, Chen and

Volpe said that people with a high degree of financial literacy typically have the proper

perspective and choose wisely when it comes to managing debt, investments, and savings

[11]. Through problem-solving, critical thinking, and an awareness of important financial

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facts and concepts, persons with financial knowledge and decision-making abilities can make

well-informed financial judgments.

The majority of individuals desire both financial stability and a high-quality living.

People in society want wise choices on the control of expenses and investments to eventually

attain an amount of money. On the other hand, some youth are growing up in a culture of

debt, made possible by luxurious lives and simple access to credit. Young individuals

frequently start college without taking financial responsibility for their sources of income. To

handle personal finances systematically and successfully requires knowledge because it is

necessary to develop financial skills. We must take into consideration the importance of

financial management as we always make decisions that concern money. As a student as

early as possible we must know the significance of financial literacy as we always make a

budget for our expenses from the food, apartment, and tuition.

Hilgert et al. (2013) state that financial knowledge is ultimately one's understanding of

finance. Theoretically, it refers to an individual's knowledge about financial literacy and their

ability to perform financial transactions in daily life by using the financial knowledge

obtained previously. Here, financial knowledge can be obtained through formal education,

informal sources, and real-life experiences. Individuals with higher financial knowledge

regarding personal finance are likely to behave more responsibly in dealing with financial

issues such as savings and investment (Perry, 2008). This knowledge allows them to make

better financial decisions in life (Hilgert et al., 2003; Howlett et al. 2008; Lusardi & Mitchell,

2007; Mansfield & Pinto, 2008). However, empirical findings have revealed that the effects

of financial knowledge on financial behaviour are mixed in nature. Certain scholars have

particularly found a positive relationship between financial knowledge and financial

behaviour (Hilgert et al., 2003; Shim et al., 2010; Serido et al. 2013; Yong et al., 2018;

Amagir et al., 2018; Adiputra & Patricia, 2020)

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Conversely, other studies have highlighted an insignificant relationship between

financial knowledge and financial behaviour (Jones, 2005; Borden et al., 2008). Borden et al.

(2008) have also noted an insignificant relationship between financial knowledge and

effective financial behaviour, indicating that higher financial knowledge may improve

students' intention towards more responsible behaviour.

However, they may not execute their financial plans according to their intention, thereby

technically suggesting that they are not using the knowledge that they have obtained. This is

further supported by another study by Jones (2005) in which an insignificant relation has

been found between financial knowledge and credit card debt.

However, a large volume of literature has indicated a positive relationship between

financial knowledge and the financial behaviour of college students. For example, Amagir et

al. (2018) have found a positive relationship between financial knowledge and financial

behaviour among high school students in the Netherlands, similar to findings obtained by

Loke (2015) and Yong et al. (2018) in the context of Malaysia. Collectively, this implies that

those with higher financial knowledge are more likely to display better financial behaviour.

Parallel to this, Sohn et al. (2012) have also found a significant relationship between financial

knowledge and financial management behaviour among Korean high school students.

Muhammad and Gharleghi (2015) prove that financial knowledge was strongly

influenced by education. The association between education and financial literacy was

beneficial. According to Grable and Joo (1999), financial education influences financial

knowledge, financial behaviors, and financial attitudes. According to a study, college

students were familiar with the fundamentals of money (Thapa & Nepal, 2015).
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Unfortunately, they had little knowledge of shared markets, bank credits, insurance, or

financial statements. According to Nidar and Bestari (2012), students' personal finances were

influenced by their parents' and teachers' educational attainment and salary, as well as by the

university's property insurance. Students' financial literacy in personal finance needs have

been improved as a result. A university or family could make the improvement. For instance,

a university could offer seminars or training on personal finance to students in several

faculties. In addition, parents could impart financial knowledge regarding financial services

and products.

According to Jorgensen (2007), students who want to be financially secure should have

personal financial knowledge. Financial knowledge is becoming increasingly evident in

today's society. It applies to everyone in the economy, not just investors. Financially literate

people may have the information, abilities and assurances needed to manage their resources

wisely. Additionally, when people understand the value of loan repayment and the

consequences of default, it may foster a culture of loan repayment and support a healthy

financial system (Shyamba & Kevin, 2015).

The study's findings demonstrate that financial knowledge is one of the essential criteria

indicating that the model is valid and that it is crucial in measuring its influence on students'

personal financial management skills. From this research, we can identify problems or find

the best method to solve problems. Financial knowledge and effective financial decision

making are now widely recognised as essential factors of both personal and social income

being connected with how people handle their money.

Family Influences

After high school, if a student decides to attend a university, their financial

independence most likely faces difficulties. Nonetheless, some students continue to look for
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financial aid since they attend a distant school. From their parents throughout their schooling

and even to meet their fundamental requirements. Consequently, achieving immediate

financial independence is not guaranteed for every student. The limited financial knowledge

and insufficient awareness among young individuals, coupled with a failure to initiate early

savings, make them more susceptible to financial risks. This, in turn, contributes to

challenges in their future savings (Utkarsh et al., 2020) and the adoption of risky financial

behaviours. Furthermore, the lack of financial literacy among young individuals, as noted by

Ergun (2018), further hampers their ability to save effectively. Communication about money

between parents and kids is frequently referred to as “financial socialization.”

Conversations between students and their parents about budgeting, saving, investing,

financial products, and spending habits are recognized as components of financial

socialization. This process plays a role in shaping financial behavior, as there is a significant

link observed in prior research between parental financial socialization and the financial

behaviours of individuals. Parents who have talked to their children about financial concerns

have been more likely to have raised children who have behaved as financially responsible

adults.

The most effective financial socialization strategy parents use to shape their children’s

financial behavior as students later in life is parental teaching and supervision. (Antoni,

Rootman, & Struwig, 2019). The research results from Sabri et al. (2020) also found that

parent-child financial communication improved college students’ lives in terms of both

quality and content.

Implementing and cultivating good financial behavior is essential for university

students who live far from their parents. To live, individuals must establish self-control and

handle their finances properly (Khalisharani et.al 2022). Creating a budget, handling bill

payments, using credit cards, and establishing savings are among the various financial
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challenges students face upon entering college. Multiple research studies emphasize the

importance of cognitive factors and financial literacy in making effective spending and

financial management decisions. (Sabri et al., 2021b; Sabri et al., 2022)

Financial educators should not ignore the students’ family variables, such as family

structure, when attempting to improve students’ financial behavior. The results show that

students from non-intact families versus intact families need more financial education to

improve their financial behavior. (Antoni 2023). According to previous research, parents may

significantly impact their children’s future financial behavior by discussing personal finances

at home (Johan et al., 2021; Lanz et al., 2019).

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Chapter 3

Research Methodology

This chapter presents the study’s setting, the research design, sample and sampling

design, data gathering procedure, research instruments used, and the statistical techniques.

Research Design

The study will employ the descriptive research design to assess and examine the

factors influencing the personal financial management skills of the Accounting students at

PHINMA-COC. Specifically , the survey method will be used in the study . The research

problem will be using a quantitative method of analysis, which, according to Goertzen

(2017), is the compilation and analysis of organised data and can be interpreted numerically.

One of the main objectives is to construct accurate and reliable measurements that allow for

statistical analysis. It shows behaviours and trends. The researchers believed that this design

and method are suitable for the present study since this design allowed the researchers to

gather information that was purely accurate and unbiased.

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Research Setting

The researchers will conduct the study at PHINMA Cagayan de Oro College, one of

the private non-sectarian schools. The school is located at Max Suniel St, Carmen, Cagayan

de Oro, Philippines.

Figure 1. PHINMA-COC Satellite View

Figure 2. PHINMA- COC Campus Building View

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Source: Google Map

Sample and Sampling Design

The target respondents of this study will be the third year students of Management

and Accountancy courses in PHINMA COC Main Campus of Misamis Oriental in the

academic year 2023-2024.

The sampling technique that will be used is probability techniques, specifically the

simple random sampling which helps in reducing biases and establishing validity of the

results. It is a simple and widely used technique for gathering data for research study. In this

technique, the members of the population have an equal chance of being chosen for the

sample. Also, by utilizing this sampling technique, the researchers can ensure that the sample

is representative of the target population which allows them to generalize their findings to a

wider group of students. The target respondents will be the students currently enrolled in

management and Accountancy courses, since researchers believe that accounting students are

suitable candidates to assess the variables impacting financial management abilities since

they probably have a solid foundation in financial concepts. Also, it may be more practical

for the researcher to reach out to a certain group of students, like accounting students, as this

would enable a more focused and accessible sample.

In computing the sample size, researchers will be using the Slovin’s formula formula

with a 10% margin of error with a confidence level of 95%. The researchers calculated a

sample of 142 respondents who are expected to participate in the study. Moreover, the

respondents will then be randomly selected from both courses in third year.

Data Gathering Procedure

The researchers will propose a letter of approval to the CMA Department Head before

conducting the said survey. In subsequent to the letter, a pre survey will follow towards the
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target student who are currently enrolled in the Management and Accountancy program. In

collection of data, the researchers will be utilising survey questionnaires. The questionnaire

is intended to collect data about the extent of financial knowledge , financial attitude , and

family’s influences towards their financial management. These questionnaires will be given

to the respondents at the designated time and setting.

Research Instrument

In this study, the researchers will employ structured online survey questionnaires as

the primary research tool. The survey instrument will incorporate the Likert scale as its

structural framework—a system designed for assessing attitudes, behaviours, and

perspectives. After presenting a declarative statement, respondents will be presented with a

range of options, prompting them to indicate the degree to which they agree or disagree with

the statement. Participants will then choose the option that best mirrors their sentiments

regarding the statement or topic, as outlined by Bhandari & Nikolopoulou (2020).

Respondents will express their preferences by rating statements on a 5-point Likert

scale. Furthermore, the questionnaire employs straightforward language in all its terms to

ensure easy comprehension of each question.

Statistical Treatment

The data analysis strategy for this study involves employing descriptive statistics and

regression analysis to interpret the data of the study effectively.

The responses collected from the questionnaires administered to the students will

undergo statistical analysis, utilising descriptive statistics, specifically focusing on frequency,

measures of central tendency such as weighted mean, and measures of variability indicating
 26

dataset dispersion. As asserted by Mazikana (2023), descriptive statistics are valuable for

condensing and simplifying extensive data into a concise set of numbers or graphs. This aids

in a better understanding of key characteristics, identifying trends, and detecting anomalies.

Descriptive statistics will be utilised by the researchers to generate a concise summary as a

starting point for subsequent data analysis. The researchers will also utilise the regression

analysis to determine the strength and significance of the relationships between these

variables and financial management skills.

Scoring Procedures

The researchers will use the Microsoft Excel to transfer all data gathered from the responses

provided by the accounting students. Scoring data involves the research assigned numerical

value for each response on the instrument.

Table 1: Scoring procedure on the extent of financial knowledge among the accounting

students.

Numerical Rating Scale Quantitative Description Qualifying statement

4.21-5.00 Strongly agree This means that the students

level of financial knowledge

is very high

3.41-4.20 Agree This means that the students

level of financial knowledge

is high

2.61-3.40 Neutral This means that student”s

 27

level of financial knowledge

is neither high nor low

1.50-2.49 Disagree This means that the student's

financial knowledge among

students is low.

1.00-1.49 Strongly disagree This means that the level of

the student's financial

knowledge very low.

Table 2: Scoring procedure on the extent of financial attitude among accounting students

Numerical Rating Scale Quantitative Description Qualifying statement

4.21-5.00 Strongly agree This means that the level of

financial attitude among

students is very high

3.41-4.20 Agree This means that the level of

financial attitude among

students is high

2.61-3.40 Neutral This means that the level

financial attitude among

students is neither high nor

 28

low

1.50-2.49 Disagree This means that the level of

financial attitude among

students is low.

1.00-1.49 Strongly disagree This means that the level of

financial attitude among

students is very low.

Table 3: Scoring procedure on the extent of family influence among accounting students.

Numerical Rating Scale Quantitative Description Qualifying statement

4.21-5.00 Strongly agree This means that the level of

family influence among

students is very high.

3.41-4.20 Agree This means that the level of

family influence among

students is high.

2.61-3.40 Neutral This means that the level

family influence among

students is neither high nor

low

1.50-2.49 Disagree This means that the level of

family influence among

 29

students is low.

1.00-1.49 Strongly disagree This means that the level of

family influence among

students is very low.

Table 4: Scoring procedure on the extent of personal financial management among the

accounting students.

Numerical Rating Scale Quantitative Description Qualifying statement

4.21-5.00 Strongly agree This means that accounting

students have a very high

personal financial

management.

3.41-4.20 Agree This means that accounting

students have a high

personal financial

management.

2.61-3.40 Neutral This means that accounting

students have neither high

nor low personal financial

management.

1.50-2.49 Disagree This means that accounting

 30

students have a low personal

financial management.

1.00-1.49 Strongly disagree This means that accounting

students have a very low

personal financial

management.

Appendix A: Letter of Consent

 31

A STUDY ON THE FACTORS AFFECTING THE FINANCIAL MANAGEMENT

SKILLS OF THE ACCOUNTING STUDENTS AT PHINMA COC

Dear Respondents,

Greetings!

We are third year students of BS in Management Accounting who are currently

enrolled in ACC 116-The Accounting Research Methods. We are currently conducting an

accounting research entitled as the Factors Influencing Financial Management Skills of the

Accounting students at Phinma-Cagayan de oro College. As part of this, we humbly ask for

your time in answering the survey questionnaires because your responses are relevant to

further this research study. Your participation in this study is crucial in helping us understand

the underlying factors that impact financial management skills of the students. We assure you

that all information will be kept confidential and will be used solely for research purposes.

Additionally, no personal information will be shared with other parties and your identity will

remain anonymous throughout the study. Thank you!

Respectfully,

Researchers

Appendix B: Survey Questionnaire

Part 1: Demographic Profile

 32

Please check the option that corresponds to your answers.

1.Name: (optional)

2. Age:

● 18-19 years old

● 20-21 years old

● 22-23 years old

● 24 years old and above

3. Course:

● BS ACCOUNTANCY

● BS MANAGEMENT ACCOUNTING

4. How much do you spend per month?

● Php 5,000-10,000

● Php 11,000-16,000

● Php 17,000-22,000

● Php 23,000-28,000

● Php 29,000 and above

5. How do you spend your allowance?

● Education ( Tuition fees, Books and Supplies)

● Transportation

● Living Expenses( Dorms, Boarding house, Pad,any others)

● Entertainment

● Clothing
 33

● Personal Expenses

● others (please specify)____________

Part 2:

Set A: Financial Knowledge

Statements Strongly Agree Neutral Disagree Strongly

Agree Disagree
(4) (3) (2)

(5) (1)

1. I have an idea

about how to do

proper budgeting,

investing, and

saving

2. I know how to

assess financial

risks that comes

with investing

3. I have knowledge

on how to engage

in different

investment
 34

options (stocks,

bonds, crypto)

4. I have an idea on

various saving

strategies

5. I have an idea on

various budgeting

strategies

6. My money today

is always worth

more than it will

be in the future.

Set B: Financial Attitude

Statements Strongly Agree Neutral Disagree Strongly

Agree Disagree
(4) (3) (2)

(5) (1)

1. I pay my bills on time to

avoid interest and penalty.

2. I am much more a saver

than a spender
 35

3. I keep close track of my

financial affairs.

4. I believe that investing in

my education is a

worthwhile financial

decision.

5. I regularly budget and

track my expenses

6. I prioritise saving money

for the future.

7. I aspire to achieve

financial independence in

the future

8. I believe in the importance

of managing my finance

responsibly, regardless of

my income level

9. I believe in living within

or below my means and

avoiding unnecessary debt

10. I am satisfied with my

current financial situation

and trajectory
 36

11. I prioritise saving money

for future goals over

spending on immediate

desires

Set C: Family Influence

Statements Strongly Agree Neutral Disagree Strongly

Agree Disagree
(4) (3) (2)

(5) (1)

1. My Family

practices a proper

financial

management

2. How I budget my

money right now

was heavily

influenced on

how my parents

budget their

money.

3. My parents

discussed/taught
 37

me how to

properly handle

my finances

4. My family put a

great emphasis on

saving money

instead of

spending it

impulsively

5. I was taught by

my parents about

basic financial

concepts (Saving

money,

budgeting.

Set D: Financial Management skills

 38

Statements Strongly Agree Neutral Disagree Strongly

Agree Disagree
(4) (3) (2)

(5) (1)

1. I prefer to save my 1 2 3 4 5

monthly income in the

saving account

2. I prefer to invest my

monthly income in the

insurance

3. I prefer to borrow from

family or friends to fulfill

my monthly need

4. I frequently create and

follow a personal budget

5. I set some short-term and

long-term financial goals

6. I believe that it is

important for students to

learn financial

management skills

7. I believe that financial

management skills is

essential for success in

 39

adulthood

8. I always take into account

the risk and benefit ratio

when making a financial

decision

9. I handle financial stress

well

10. I often engage in

impulsive spending or

purchases beyond my

budget.
 40

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