Home⇛Augustinian⇛vol. 24 no. 1 (2023)

Financial Literacy and Self-Efficacy of Local Government Unit Employees in Negros Occidental

Leilani C. Dusaban | Geff B Sagala | Marianito M. Vito

Discipline: Finance

 

Abstract:

Today’s society is already financially driven where every person's life depends on their capacity to manage their financial affairs effectively and efficiently. This descriptive-comparative and correlational design study explored the extent of financial literacy, and self-efficacy of LGU employees. Lusardi and Mitchell's (2011) research instrument on Financial Literacy was used in this study while the instrument of Lown (2011) was used for Financial Self-Efficacy scale. The adopted and modified survey was administered to 345 LGU employees. Data were analyzed using the mean, standard deviation and Mann-Whitney U test and Spearman Rho. This study showed that Financial Literacy, and Self-Efficacy of LGU employees are “high” when grouped according to age, sex and salary grade. Moreover, women and lower salary grade employees should be given more focused in all the financial areas as revealed in their lower mean scores. There was also significant relationship between the extents of Financial Literacy to Financial Self-Efficacy. The results implied that the extent of employees’ financial literacy is associated with their level of confidence in handling their financial resources. Overall, employees feel comfortable with their basic and advanced financial knowledge. They are satisfied with their financial situation and confident in managing their finances and handling unexpected financial challenges. However, it is recommended that policy efforts including financial education programs complemented by tools should be implemented to improve the women and lower salary grade employee’s financial situation.



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