The correlation between the financial literacy and the behavior on finances as perceived by the graduating finance students from the selected Universities and Colleges in Manila / Malasmas, Judy Ann M., Baquiran, Hanna Krystal C., Castanares, James Kenneth N., Ibanez, Marlon P., Mines, Rona Joyce T., Pangan, Angelica G., Rosas, Joshua M., Villarta, Krizzia D. 6

Research Paper: (BSBA major in Finance and Treasury Management) - Pamantasan ng Lungsod ng Maynila, 2016. 56

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ABSTRACT: This research determined the correlation of financial literacy and the behaviour of on finances as perceived by the graduating students taking up finance courses from the selected universities and colleges in Manila. It sought to examine the relationship of the student's knowledge to their financial competency. Financial literacy is a requisite of an individual in order for them to put it into application towards being financially competent. Financial literacy pertains to one's knowledge of facts, concepts, principles, and technological tools that are fundamental to being smart about money (Garman & Gappinger, 2008). As finance students, it is imperative that they possess the quality of being financially literate; furthermore it must, as well, reciprocate with their financial behaviour. Descriptive method was used by the researchers to determine the respondents level of financial literacy and its correlation to their financial behaviour. The data gathered were treated under various statistical tools including frequency distribution, percentage, and ranking, weighted mean, likert scale, rating scale, t-test, one-way ANOVA and Pearson's correlation coefficient. This research used purposive sampling method in choosing the respondents of the survey and Slovin's formula in calculating the representative of the entire population. The study revealed that financial literacy was correlated with the behaviour on finances of the graduating finance students. The knowledge of the respondents has a positive impact on their behaviour. The study also found that most of the respondents were considered literate in financial literacy specifically in banking, money market, capital market, and investment and they are in the best behaviour or finances in terms of saving, borrowing and investing. This means that the understanding and the knowledge of the respondents must be utilized and applied for them to become financially competent that will enable to make important financial decisions and to efficiently manage their own financial affairs. Integrating what they know to what they practice enrich their financial attitude that is beneficial for them to become an intelligent consumer in today's increasingly complex marketplace.

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