The moderating role of financial literacy on the relationship between credit card utilization and spending behavior of employed millennials in Binondo, Manila: Basis for debit management program

ABSTRACT: This study investigates the moderating role of financial literacy in the relationship between credit card utilization and spending behavior among employed millennials in Binondo, Manila. Using survey data from 152 respondents working along Masangkay and Reina Regente Streets, the research explores how financial awareness affects spending patterns shaped by credit card use. Findings show that although many millennials are financially literate, this knowledge does not always lead to disciplined financial behavior. Digital transactions tend to create psychological detachment from spending, leading to increased and often impulsive purchases. Some respondents also report difficulty budgeting and monitoring expenses, suggesting a gap between financial understanding and practical application. The study concludes that credit card use impacts spending more significantly than financial literacy. This highlights credit cards emotional and psychological influence, which financial knowledge alone may not counteract. As a result, the study proposes the development of a Debt Management Program. This program includes budgeting plans, spending alerts, behavioral assessments, and real-time notifications to help employed millennials manage their finances more effectively. Financial institutions are encouraged to adopt proactive measures like lower initial credit limits and customizable spending settings. Moreover, educational institutions and advocates should integrate practical financial learning into workplace and community programs. Future research is recommended to explore the emotional and behavioral drivers of spending, particularly in the context of digital credit usage among millennials.

Filipiniana