Effects of financial literacy to saving behavior among young professionals in Davao City

Abstract

The purpose of this research is to better understand how young professionals in Davao City are using their money and what the effects of their financial literacy on their savings behavior. Knowing how to manage one's finances is a strong indicator of one's ability to save. Considering how this study provides insight on the financial literacy of young professionals, the researchers assume it will be of significant use to students. Encourage young people to use what they learn about budgeting, saving, and investing in the real world through partnering with financial institutions. Moreover, the government may suggest that young professionals create a savings plan and stick to a program to develop savings and have an emergency fund in case of unforeseen events. Future researchers may gain insight into how improving their financial literacy affected their own situation. They might use this information in their on-going research and development. In addition, we need to know if today's young professionals are financially literate and have saving behaviors. The study used a descriptive survey, and the respondents were all young professionals from Davao City. Additionally, a Google Form questionnaire was used to collect information for the study. They were chosen as respondents so that we could evaluate the effect of financial literacy on respondents' saving behaviors. The problem was solved using the statistical techniques of frequency and percentage. This was used to determine the number of respondents in each profile category. The mean and Spearman’s rho were used to determine the influence. Correlation was utilized to determine the strength of the relationship between financial literacy and saving behavior. This research discusses the nature of this relationship by putting out a suitable conceptual and theoretical framework, and it finds that financial literacy may have a relationship effect on saving behavior in young professionals.