The influence of financial literacy towards money management among newlywed couples

Abstract

Finances play an important role in marriage, and money is either the best or worst area of communication in marriage. The study intends to determine the influence of financial literacy on money management among newlywed couples in the shoreline areas of Maco, Davao de Oro by evaluating the level of financial literacy in terms of financial knowledge, financial attitude, and financial behavior; and the level of money management particularly in Spending, saving, and Debt of the newlywed couples. It also aims to determine the significant relationship between financial literacy and money management. Also, which domains of financial literacy significantly influence money management of newlywed couples. A Quantitative and Nonexperimental research design is used, with a correlation technique through adapted survey questionnaires where 152 newlyweds responded in the study. Results were tested at a 0.05 level of significance, whereas financial knowledge has the highest level (4.13 mean and 0.72 standard deviations). Spending is very much observed (4.31 mean and 0.82 standard deviations) in the couples. Using Pearson-r, significant value (p = 0.001), confirming that the money management of newlywed couples was significantly associated with the levels of financial literacy. Moreover, through multiple regression analysis, 50.3% variance with a corresponding F-ratio = 49.84 and p = 0.001 revealed that financial literacy has a significant influence on money management. Specifically, Financial Knowledge (Beta = 0.291, t = 3.222, p = 0.002), and Financial Behavior (Beta = 0.335, t = 3.761, p = 0.001) are correlated to money management of the newlywed couples. Everyone struggles with money at least once in their lives. Thus, being financially knowledgeable can be an advantage to mend financial difficulties.