Journal of Human Resource Management

2017; 5(5): 78-89

http://www.sciencepublishinggroup.com/j/jhrm
doi: 10.11648/j.jhrm.20170505.12
ISSN: 2331-0707 (Print); ISSN: 2331-0715 (Online)

Employees’ Financial Literacy, Behavior, Stress and

Wellness
Robert Oton Parcia, Emeliza Torrento Estimo
Administrative Department, Research Department, John B. Lacson Colleges Foundation, Bacolod City, Philippines

Email address:
[email protected] (R. O. Parcia), [email protected] (E. T. Estimo)

To cite this article:

Robert Oton Parcia, Emeliza Torrento Estimo. Employees’ Financial Literacy, Behavior, Stress and Wellness. Journal of Human Resource
Management. Vol. 5, No. 5, 2017, pp. 78-89. doi: 10.11648/j.jhrm.20170505.12

Received: October 14, 2017; Accepted: October 30, 2017; Published: December 12, 2017

Abstract: A successful financial wellness initiative may provide people with the information and support they need to
achieve an ideal state of being, the balance of which is unique to every person. This correlational study aimed to examine the
financial wellness of the employees of a maritime school and the factors that influence it. A survey was administered to 96
employees of the institution. Findings revealed that the employees have a fair level of financial wellness, a moderate level of
financial literacy, a very satisfactory level of financial behavior, and a low level of financial stress. The employees were found
to be comparably the same in their state of financial wellness regardless of their age, family status, sex, tenure, and job
position. Overall, the data implied that what the employees earn was just enough to support their basic needs but not enough to
cover for cases of sickness, job loss, or any form of emergency. The employees were comparably the same in terms of their
financial literacy, all variables considered. They also demonstrate a comparable financial behavior, except when they were
grouped according to age. Results of this study also indicate financial behavior being related to financial literacy. This result
implies that being financially literate could improve the employees’ ability to manage their financial resources. Financial
literacy was found to be the best predictor of financial wellness.
Keywords: Employees’ Financial Wellness, Financial Literacy, Financial Stress, Financial Behavior, Descriptive Design

reduced options for improving their financial condition, or who

1. Introduction feel that their financial condition limits their choices can feel
Financial wellness, also referred to as financial health, is a stress and that stress carries over to work. Signs of financial
crucial issue which confronts people in all walks of life. With stress could include higher rates of absenteeism, loans from
the prices of commodities soaring up and the cost of living retirement plans, wage garnishments, and pay-day advances [3].
being higher than what most of the Filipino families are Therefore, financial problems and financial stress affect not only
earning, daily survival has become a challenge even for an individual’s personal and family life but also his work life.
working professionals. In the United States, the PwC's One of the causes of financial problems is the lack of
Employee Financial Wellness Survey conducted in 2015 financial knowledge or the lack of understanding of how to
which tracks the financial wellbeing of full-time employed manage, save, and invest money. Low level of financial
U. S. adults nationwide reported that 20% of employees who literacy has been linked with abuse of credit and living
earn $100,000 or more find it difficult to meet household beyond one’s financial means [4]. In the Philippines, it was
expenses on time each month [1]. reported that only 25 percent of Filipino adults are financially
Certain practices can adversely affect a person’s financial literate [5]. According to the same source, only one in three
wellness, causing him financial troubles. Some of these practices adults or 31 percent shows an understanding of basic
include inability to properly manage debt, overspending, not financial concepts.
having an emergency fund, inadequate shopping and spending It is important that an individual must be financially
skills, low salary and lack of knowledge about money [2]. These literate. This literacy will enhance his ability to handle day to
practices can lead to financial stress in that employees who have day financial matters and will reduce the negative
difficulty paying everyday expenses and recurring bills, have consequences of poor financial decisions that otherwise
79 Robert Oton Parcia and Emeliza Torrento Estimo: Employees’ Financial Literacy, Behavior, Stress and Wellness

might take years to overcome. Many people lack the financial employers can educate their workers on how to manage their
literacy needed to make important financial decisions for financial resources to offer them a more secure and contented
their best interests [6], [7]. Moreover, experts generally agree life.
that financial knowledge appears to be directly correlated
with financial behavior [8]. Poor financial behaviors and 1.1.2. Life-Cycle Theory
personal and family money management practices have The Life-cycle theory makes its first appearance in two
consequential, detrimental and negative impacts on one’s life papers that Modigliani wrote in the early 1950s with a
at home and work [9]. graduate student, Richard Brumberg (Modigliani and
A survey of 329 human resources and employee benefits Brumberg 1954 and 1980). According to this theory, an
managers found a growing interest among employers in individual’s or household’s level of consumption depends not
offering financial education to their employees [10]. just on current income but also, and more importantly, on
However, less than half of companies surveyed offered long-term expected earnings. People are assumed to plan a
programs to help employees with their financial problems. pattern of consumer expenditure based on expected earnings
Employees are also reaching out to their employers for over their lifetime [12].
direction and support when it comes to their financial In the life cycle hypothesis, consumption and saving
problems. behavior are dependent on the individual's position in the life
Every institution must include among its objectives cycle. Young workers entering the labor force have relatively
initiatives to promote and protect the welfare and wellness of low incomes and low (possibly negative) saving rates. As
all the employees, financial wellness included. However, it income rises in middle-age years so does the saving rate.
can only offer a sound financial direction if given a baseline Retirement brings a fall in income and might be expected to
data of the financial condition of its employees. The school begin a period of dissaving (negative saving rates). This
needs to obtain a clear picture of the employees’ state of pattern of consumption and income results in periods of
financial wellness. This idea is supported by Delafrooz and dissaving during the early working years and the late stage of
Paim [11] who claim that an objective assessment of a the life cycle, and positive-saving over the high-income-
person’s financial situation is necessary for the investigation middle-period of the life cycle. The challenge then is how an
of an individual's financial wellness. It is also equally individual can be able to manage the decline of his income in
significant to investigate the factors that influence it; hence, his retirement years amidst the steadily increasing cost of
this study. expenditures. This implies the need to carefully plan and
manage his financial resources while it is at its peak.
1.1. Framework Given the assumptions held by the Life-Cycle Theory, this
study aims to examine the financial literacy of employees,
Some existing theories were found useful in establishing their financial behavior and the level of stress that they face
the grounds for this study. The assumptions held by these in relation to how they manage their income. The results will
theories and their applications in this study are discussed be utilized in designing a financial program that could assist
below. the employees in improving their spending lifestyle while at
1.1.1. Maslow’s Hierarchy of Needs Theory the prime of their life in preparation for their years of
Maslow’s (1943) Hierarchy of Needs proposed that retirement.
motivation is the result of a person's attempt at fulfilling his 1.1.3. Joo’s (1998) Conceptual Model of Personal Financial
five basic needs. These needs, according to him, can create Wellness and Worker Job Productivity
internal pressures that can influence a person’s behavior. His This model holds that the demographic characteristics of
Hierarchy of Needs includes physiological needs, safety an individual such as his marital status, income, education,
needs, social needs, self-esteem, and self-actualization. age and the number of dependents in the household, as well
Maslow believed that these needs exist in a hierarchical as his financial knowledge and his financial behavior
order. This progression principle suggests that lower-level influence his financial wellness [13]. Financial literacy
needs must be met before higher-level needs. The deficit comes with the individual's knowledge of how to manage his
principle claims that once a need is satisfied, it is no longer a financial resources for his life’s satisfaction. Financial
motivator because an individual will take action only to behavior, on the other hand, refers to positive and desirable
satisfy unmet needs. In this study, the need to be satisfied behaviors that are recommended as a best practice of
with their physiological and safety needs are essential for the financial activities [14]. An example of this is maintaining
employees. Being able to provide for their personal and reasonable and low debt, intentionally following a personal
family needs, which could depend highly not only on the spending plan, having an active savings plan, and the lack of
salary that they receive but also on how they manage this, money-related conflict with family or partner. A person’s
could affect their attainment of the rest of their needs in the financial behavior is affected by his financial literacy [15],
hierarchy. It is considered an extended responsibility of the [8]. Moreover, financial stressors such as life cycle events,
employers to help ensure that these needs are addressed to job-related events, unexpected changes, and unfavorable
provide the employees a sense of security and well-being. financial situations affect a person’s financial wellness.
Hence, beyond their duty to pay their salaries on time, Financial stress can be adversely caused by an individual’s
 Journal of Human Resource Management 2017; 5(5): 78-89 80

lack of financial knowledge, undesirable financial behavior, and financial stress?

and certain demographic variables. It is also negatively 4. Which among these factors could determine the
related to financial satisfaction. In a study among health care employees’ financial wellness?
professionals, it was revealed that financial stress explained
30% of the variance in participant financial wellness scores. 1.3. Hypotheses
Financially stressed workers are also less satisfied with their The following hypotheses were raised in the study:
jobs and their pay, and are more likely to go looking for 1. There is no significant difference in the level of
greener pastures elsewhere. They are also more tempted to financial wellness, financial literacy, financial
steal from their employer [16]. Furthermore, it was earlier behavior, and financial stress of the employees when
established that demographic characteristics and financial they are grouped according to age, family status, sex,
literacy can have impacts on financial behaviors. Individuals monthly income, job position, and tenure.
who have low incomes, less education and less financial 2. There is no significant relationship between the
knowledge are more likely to make different financial employees’ financial literacy and financial behavior,
decisions than others, resulting in varying behaviors and financial literacy and financial stress, and financial
financial outcomes. behavior and financial stress.
Given these theoretical underpinnings, the proposed 3. Financial literacy, financial behavior, and financial
conceptual framework of this study incorporates the stress cannot determine the financial wellness of the
interrelated influence of demographic characteristics, employees.
financial literacy, financial behavior, and financial stress
levels on an individual’s financial wellness. These concepts
are illustrated in the following diagram: 2. Methods
2.1. Research Design

This investigation employed a descriptive-correlational

design. This design explores the relationship between two or
more quantifiable variables to figure out which variables are
connected or are closely interacting with each other so that
when you can see one change, you have an idea of how the
other will change [17]. Correlation can be positive or
negative. A positive correlation means that as Variable A
Figure 1. Paradigm of the Study.
increases, Variable B also increases. A negative correlation
happens when as Variable A increases, variable B decreases.
1.2. Research Problems Quantitative data in this study were derived from a set of
surveys that were administered to the employees of the
This study aimed to examine the financial wellness of school.
the employees of a maritime school in the Philippines, to
determine their financial literacy, financial behavior, and 2.2. Respondents
financial stress, and to find out which of these factors could
determine their financial wellness. The following questions The respondents for this study covered 96 employees of
were addressed in this study: the institution. These respondents were further grouped
1. What is the employees’ level of financial wellness, according to age, marital status, sex, and income.
financial literacy, financial behavior, and financial stress 2.3. Research Instrument
when they are taken as a whole and when grouped according
to the following variables? A researcher-made survey questionnaire was used in this
a. Age study. The survey instrument was composed of five parts.
b. Family Status Part 1 was designed to obtain the demographic characteristics
c. Sex of the respondents as needed in this study. Part 2, 3, 4 and 5
d. Monthly Income were designed to determine the employees’ level of financial
e. Job Position wellness, financial literacy, financial behavior, and financial
f. Tenure stress respectively. The respondents were asked to rate each
2. Is there a significant difference in the level of financial of these parts using a five-point Likert scale. The survey
wellness, financial literacy, financial behavior, and financial questionnaire was content validated by a jury experts
stress of the employees when they are grouped according to composed of a Certified Public Accountant and two others
the same variables? being Ph. D. degree holders. Using the criteria of Good and
3. Is there a significant relationship between the Scates, the instrument obtained a score of 4.78, interpreted as
employees’ financial literacy and financial behavior, excellent. A reliability score of .88, interpreted as good, was
financial literacy and financial stress, and financial behavior obtained using Cronbach’s alpha.
81 Robert Oton Parcia and Emeliza Torrento Estimo: Employees’ Financial Literacy, Behavior, Stress and Wellness

2.4. Statistical Tools financial behavior, and financial stress when taken as a
whole.
To determine the employees’ level of financial wellness,
financial literacy, financial behavior, and financial stress 3.1.1. Financial Wellness
when they are taken as a whole and when grouped according Financial wellness or financial health (also referred to as
to age, family status, sex and monthly income, the mean and ‘financial well-being’) is a state where an individual enjoys
standard deviation were used. The following scales were satisfaction with income and savings, awareness of
used in interpreting the data: opportunities, ability to make ends meet, sense of material
security, and sense of fairness of the reward distribution
Table 1. Scale for the interpretation the mean. system [13].
Financial Literacy and Financial Wellness and Financial In Table 2, it can be seen that the employees have a fair
Financial Stress Behavior level of financial wellness as a whole. In particular, they
4.20-5.00 Very High 4.20-5.00 Excellent assign the highest rating for the statement "I can provide for
3.40-4.19 High 3.40-4.19 Very Satisfactory
my family and other personal basic needs"with a mean of
2.60-3.39 Moderate 2.60-3.39 Fair
1.80-2.59 Low 1.80-2.59 Poor 3.44, interpreted as very satisfactory, and the lowest rating
1.00-1.79 Very Low 1.00-1.79 Very Poor for “I have set aside emergency or rainy day funds that
would cover my expenses for at least three months in case of
To find out if a significant difference exists in the level of sickness, job loss, economic downturn, or other
financial wellness, financial literacy, financial behavior, and emergencies” with a mean of 2.91, interpreted as fair. It can
financial stress of the employees when they are grouped also be noted that there is a higher dispersion of the values as
according to the same variables, t-Test and Analysis of indicated by the standard deviation of 1.34 for the item “I
Variance were employed. Furthermore, to find out if a have other sources of funds aside from my salary.” This
significant relationship exists between the employees' indicates a higher variability in terms of the respondents’
financial literacy and financial behavior, financial literacy, responses to this particular item which means that some
and financial stress, and financial behavior and financial employees have scored themselves very high while others
stress, Pearson’s r was used. have scored themselves very low. This high dispersion from
the mean score could mean that some employees have other
3. Results alternative sources of income aside from their salary while
others may not have. This explains the fact that whenever
This section of the paper reports and discusses the results there is a little delay in the posting of salary online, a lot of
of this study based on the questions that were earlier raised in the employees can be heard complaining about where to get
this paper. their budget intended for the family needs for that particular
payday. Overall, the data imply that what the employees earn
3.1. Employees’ Level of Financial Wellness, Financial
is just enough to support their basic needs, but there is hardly
Literacy, Financial Behavior, and Financial Stress
more than enough to cover for cases of sickness, job loss or
When Taken as a Whole
any form of emergencies. Data also imply that a number of
The first concern of this study was to find out the them do not have other sources of funds except their salary.
employees’ level of financial wellness, financial literacy,
Table 2. Employees’ level of financial wellness when taken as a whole.

Indicators Mean SD Interpretation Rank

I am satisfied with my current personal financial condition. 3.30 0.98 Fair 3
I am confident towards my retirement savings. 3.19 1.13 Fair 6
What I am earning is enough to sustain me until the next payday. 3.27 1.05 Fair 4
I can cope with all my regular monthly bills (children’s education, utilities, etc.) 3.22 1.11 Fair 5
I have set aside emergency or rainy day funds that would cover my expenses for at least three
2.91 1.19 Fair 10
months in case of sickness, job loss, economic downturn, or other emergencies.
I have other sources of funds aside from my salary. 2.94 1.34 Fair 8
I can provide for my family and other personal basic needs. 3.44 0.91 Very Satisfactory 1
I can regularly pay my credit card bills, mortgage, and other loan obligations. 3.37 1.07 Fair 2
I am earning more than what I spend. 2.92 1.20 Fair 9
I can acquire/purchase what I decide to. 2.98 1.16 Fair 7
Total 3.13 0.87 Fair

employees have a moderate level of financial literacy. Data

3.1.2. Financial Literacy show that they assign the highest value on their knowledge to
Financial literacy was defined as the ability to make keep track of their money with a mean of 3.56, interpreted as
informed judgments and to take effective decisions regarding high, followed by their knowledge of the importance of
the use and management of money [18]. Table 3 reveals the saving and how much should be set aside as emergency
 Journal of Human Resource Management 2017; 5(5): 78-89 82

savings and basic budgeting. the need to enhance the financial literacy of the employees. If
In contrast, they assign the lowest value to their knowledge their financial literacy is just set at moderate level, they could
of shopping around to get the best financial product such as also fall short of their ability to practice more positive financial
loans or insurance rates; knowledge of different investments activities [14], hence, could experience a higher level of
like time deposits, money market, and stock market; and financial stress due to mismanagement of financial resources.
staying informed about financial issues. These results imply
Table 3. Employees’ level of financial literacy when taken as a whole.

Indicators Mean SD Interpretation Rank

Keeping track of your money 3.56 0.94 High 1
Making ends meet 3.35 0.96 Moderate 4
Shopping around to get the best financial product such as loans or insurance rates 2.93 1.13 Moderate 10
Staying informed about financial issues. 3.07 0.91 Moderate 8
The benefits and protection of various forms of insurance 3.13 1.06 Moderate 7
The importance of saving and how much should be set aside as emergency savings 3.55 0.98 High 2
Basic budgeting 3.52 0.93 High 3
Reading and interpreting financial statements 3.24 0.90 Moderate 5
Knowledge of different investments like time deposits, money market, and stock market 3.01 1.04 Moderate 9
Understanding what is meant by interest rate and cost of money 3.23 1.14 Moderate 6
Total 3.23 0.78 Moderate

bank account which I update every month, I make

3.1.3. Financial Behavior comparisons before asking for loans or using credit cards,
Financial behavior refers to positive and desirable and I carefully check the details of my bank statements/credit
behaviors that are recommended as a best practice of card bills. These results imply that the employees are wise
financial activities [14]. An example of this is maintaining spenders and good payers as a whole. This could be because
reasonable and low debt, intentionally following a personal the salary that they earn is just enough to support their basic
spending plan, having an active savings plan, and the lack of needs. It could be that they had gotten used to carefully
money-related conflict with family or partner. planning their budget to fit their needs; hence, they have
Data shown in Table 4 reveal that the employees have a grown more conscious and selective about what they spend
very satisfactory level of financial behavior. The employees for. However, they seem to be less cautious when it comes to
rated themselves highest on the following items: I pay in using their credit cards. They also scored themselves lowest
cash to purchase food and other basic needs instead of using in terms of owning a bank account, a result which implies
a credit card, I consider my financial situation before that a number of them might not have anything left of their
deciding to purchase anything, and I pay my bills/loans on salary to start a bank account for their savings.
time. In contrast, they scored themselves lowest on I own a
Table 4. Employees’ level of financial behavior when taken as a whole.

Indicators Mean SD Interpretation Rank

I pay my bills/loans on time. 3.78 0.95 Very Satisfactory 3
I own a bank account which I update every month. 2.99 1.47 Fair 10
I pay in cash to purchase food and other basic needs instead of using a credit card. 3.83 1.11 Very Satisfactory 1
I make sure to pay out all my outstanding credit card balance when it becomes due. 3.50 1.27 Very Satisfactory 5
I carefully check the details of my bank statements/credit card bills. 3.30 1.29 Fair 8
I make comparisons before asking for loans or using credit cards. 3.22 1.29 Fair 9
I discuss with spouse on financial issue/ I ask sound advice on financial matters from others. 3.46 1.33 Very Satisfactory 6
I involve my children/ family into the financial discussions. 3.35 1.21 Fair 7
I consider my financial situation before deciding to purchase anything. 3.79 1.04 Very Satisfactory 2
I am very particular with how much I can save by carefully selecting items to purchase. 3.71 1.10 Very Satisfactory 4
Total 3.48 0.92 Very Satisfactory

This result explains why they also scored themselves low knowing you’re going to have to spend a huge amount of
on the item “I have set aside emergency or rainy day funds money [19]. In this study, it refers to a condition where an
that would cover my expenses for at least three months in individual is bothered or disturbed by any problem which
case of sickness, job loss, economic downturn, or other affects his or her financial wellness due to mismanagement of
emergencies.” his or her financial resources.
Table 5 reveals that the employees have a low level of
3.1.4. Financial Stress financial stress. However, when the data are examined
Financial stress is a form of stress that comes from being carefully, it can be seen that on top of their worries is the
in debt, being unable to make the rent/mortgage repayment or item “I am wondering how I can afford the medical cost in
83 Robert Oton Parcia and Emeliza Torrento Estimo: Employees’ Financial Literacy, Behavior, Stress and Wellness

case of sickness or ailment” followed by “I find it hard to The data imply that even when there are financial concerns
provide all the needs of my family” and “My net pay is that worry them, they try not to allow these problems to
always not enough to cover my family’s needs until the next seriously affect them or the quality of their work. This
payday.” In contrast, the least among their concerns are the attitude is reflective of a high level of resilience among the
items "I have an unsettled problem with a collection agency," employees who can find ways to make ends meet. This
"Too much worry over my financial state affects my focus at implies that as long as they are in good health and there will
work," and “I often experience high blood pressure thinking be no untoward emergencies that might befall them, they are
about how to make ends meet in terms of our family budget. still able to survive from their financial worries.
Table 5. Employees’ level of financial stress when taken as a whole.

Indicators Mean SD Interpretation Rank

I have trouble paying my bills on time. 2.38 1.13 Low 6
I am wondering how I can afford the medical cost in case of sickness or ailment. 2.98 1.09 Moderate 1
I find it hard to provide all the needs of my family. 2.69 1.07 Moderate 2
I am in daze every time my children/dependent (s) inform me about their upcoming exams. 2.47 1.11 Low 5
I am unable to save for my future needs. 2.58 1.21 Low 4
I have an unsettled problem with a collection agency. 1.82 1.06 Low 10
I have trouble sleeping thinking about my financial condition. 2.12 1.18 Low 7
I often experience high blood pressure thinking about how to make ends meet in terms of our family budget. 2.07 1.44 Low 8
Too much worry over my financial state affects my focus at work. 2.04 1.12 Low 9
My net pay is always not enough to cover my family’s needs until the next payday. 2.67 1.22 Moderate 3
Total 2.42 0.88 Low

means obtained by each group.

3.2. Level of Financial Wellness, Literacy, Behavior, and
Stress When Viewed According to Age, Family Status, 3.2.1. Financial Wellness
Sex, Monthly Income, Job Position, and Tenure Table 6 shows that employees who belong to the youngest
group have rated themselves highest while the most senior
The following portions report and discuss the level of group rated themselves lowest in terms of financial wellness.
financial wellness, financial literacy, financial behavior, and Employees without dependents scored themselves higher
financial stress of the employees when grouped according to than those with dependents. Male employees reported a
age, family status, sex, monthly income, job position, and higher mean than their female counterparts.
tenure. Slight differences can be noted by comparing the
Table 6. Employees’ level of financial wellness.

Variables Group Mean SD Interpretation

20-33 3.17 0.74 Fair
Age 34-47 3.14 0.99 Fair
48 & Above 3.12 0.83 Fair
With Dependents 3.11 0.75 Fair
Family Status
Without Dependents 3.20 0.78 Fair
Male 3.15 0.88 Fair
Sex
Female 3.10 0.84 Fair
P50,000 & Above 4.17 1.04 Very Satisfactory
Monthly Gross Income P25,000-P49,000 3.16 0.85 Fair
P24,000 & Below 3.01 0.79 Fair
1-5 Years 3.06 0.72 Fair
6-10 Years 2.75 0.63 Fair
Tenure 11-20Years 3.30 0.73 Fair
21-30Years 3.62 1.06 Very Satisfactory
31 Years & above 2.73 0.37 Fair
Teaching 3.15 0.90 Fair
Job Position
Non-Teaching Staff 3.10 0.85 Fair
Total 3.13 0.87 Fair

Those receiving the highest scale of monthly income and who

have stayed with the school for 21 to 30 years reported a very 3.2.2. Financial Literacy
satisfactory level of financial wellness. It is worth mentioning that In terms of financial literacy, Table 7 reveals that
these are the same employees who are occupying management employees between 34 to 47 years old appear to be more
level positions in the school and are receiving the highest salary financially literate than those who belong to the younger or
scale. Those who are teaching rated themselves higher on older groups. It is the male employees who appear to be more
financial wellness as compared to the non-teaching staff. Overall, financially literate than female employees. Employees with
the employees rated their financial wellness as fair. dependents claim to be more financially literate than those
without dependents. In terms of monthly, income, the highest
 Journal of Human Resource Management 2017; 5(5): 78-89 84

earning group has high financial literacy compared to the rest themselves highest when it comes to financial literacy.
whose literacy is only moderate. This implies that the higher When it comes to position, the difference is almost
they earn; the more conscious they are when it comes to marginal between teaching and non-teaching employees. As
knowing how to manage their financial resources. Employees a whole, the financial literacy of employees is rated as
who have stayed at the school for 21 to 30 years rated moderate, a level which only falls as average.
Table 7. Employees’ level of financial literacy.

Variables Group Mean SD Interpretation

20-33 3.23 0.87 Moderate
Age 34-47 3.41 0.70 High
48 & Above 3.07 0.77 Moderate
With Dependents 3.31 0.75 Moderate
Family Status
Without Dependents 3.11 0.87 Moderate
Male 3.27 0.78 Moderate
Sex
Female 3.19 0.79 Moderate
P50,000 & Above 3.55 1.00 High
Monthly Gross Income P25,000-P49,000 3.29 0.92 Moderate
P24,000 & Below 3.20 0.64 Moderate
1-5 Years 3.24 0.65 Moderate
6-10 Years 2.93 0.84 Moderate
Tenure 11-20Years 3.17 0.87 Moderate
21-30Years 3.52 0.98 Moderate
31 Years & above 2.93 0.12 Moderate
Teaching 3.23 0.78 Moderate
Job Position
Non-Teaching Staff 3.21 0.76 Moderate
Total 3.23 0.78 Moderate

because it is the male employees who rated themselves

3.2.3. Financial Behavior higher in terms of financial literacy. It is those who are in the
In terms of financial behavior, Table 8 reports that employees highest salary scale and those who have served the school for
between 34 to 47 years rated themselves higher than those who 21 to 30 years who rated themselves highest in terms of
belong to the younger or older groups. This is the same age financial behavior.
group that appeared to have the highest level of literacy. Finally, teaching employees show a better financial
Employees with dependents appear to have a better behavior compared to those who are not teaching. Overall,
financial behavior compared to those without dependents. the financial behavior of the employees is described as very
Female employees show a better financial behavior satisfactory.
compared to their male counterparts. This is interesting
Table 8. Employees' level of financial behavior.

Variables Group Mean SD Interpretation

20-33 3.49 0.92 Very Satisfactory
Age 34-47 3.76 0.86 Very Satisfactory
48 & Above 3.20 0.91 Very Satisfactory
With Dependents 3.50 0.92 Very Satisfactory
Family Status
Without Dependents 3.45 0.94 Very Satisfactory
Male 3.47 0.89 Very Satisfactory
Sex
Female 3.52 0.98 Very Satisfactory
P50,000 & Above 4.02 0.98 Very Satisfactory
Monthly Gross Income P25,000-P49,000 3.62 0.99 Very Satisfactory
P24,000 & Below 3.35 0.83 Very Satisfactory
1-5 Years 3.38 0.89 Moderate
6-10 Years 3.30 0.92 Moderate
Tenure 11-20 Years 3.58 0.85 Very Satisfactory
21-30Y ears 3.71 1.07 Very Satisfactory
31 Years & above 2.70 0.52 Low
Teaching 3.57 0.87 Very Satisfactory
Job Position
Non-Teaching Staff 3.37 0.95 Very Satisfactory
Total 3.48 0.92 Very Satisfactory

served the school for 31 years or more, and those who belong
3.2.4. Financial Stress to the teaching group show a moderate level of financial
Table 9 reveals that while the rest of the groups of stress. It should be recalled that it is this age group (34 to 47
employees have a low level of financial stress, those who years old) that showed the highest level of financial literacy
belong to the age group of 34 to 47 years old, those who have and financial behavior.
85 Robert Oton Parcia and Emeliza Torrento Estimo: Employees’ Financial Literacy, Behavior, Stress and Wellness

Moreover, it should also be recalled that it is those who have rated themselves lowest in terms of the same factors.
have served the school the longest (31 years and above) who
Table 9. Employees' level of financial stress.

Variables Group Mean SD Interpretation

20-33 2.19 0.76 Low
Age 34-47 2.69 0.95 Moderate
48 & Above 2.31 0.83 Low
With Dependents 2.44 0.84 Low
Family Status
Without Dependents 2.37 0.97 Low
Male 2.56 0.93 Low
Sex
Female 2.18 0.74 Low
P50,000 & Above 1.38 0.33 Very Low
Monthly Gross Income P25,000-P49,000 2.41 0.97 Low
P24,000 & Below 2.55 0.78 Low
1-5 Years 2.50 0.77 Low
6-10 Years 2.26 0.75 Low
Tenure 11-20Years 2.54 1.03 Low
21-30Years 2.42 1.17 Low
31 Years & above 2.83 0.76 Moderate
Teaching 2.60 0.88 Moderate
Job Position
Non-Teaching Staff 2.36 0.85 Low
Total 2.42 0.88 Low

financial wellness of the employees when they are grouped

3.3. Difference in the Employees’ Level of Financial according to age, family status, sex, tenure, and job position.
Wellness, Literacy, Behavior, and Stress When When they are grouped according to monthly gross income,
Grouped According to Variables however, a significant difference in their financial wellness
Another concern of this study was to find out if there exists.
exists a significant difference in the employees’ level of This result implies that among the variables considered in
financial wellness, financial literacy, financial behavior, and this study, it is the how much the employees earn that spells
financial stress when the same variables are considered. the difference in their financial wellness.
Table 10 reveals that there is no significant difference in the
Table 10. Difference in the employees’ level of financial wellness.

Variables Group Mean SD F (2,93) p Interpretation

20-33 3.17 0.74
Age 34-47 3.14 0.99 0.025 0.98 Not Significant
48 & Above 3.12 0.83
Mean SD T (94) p Interpretation
With Dependents 3.11 0.75
Family Status -0.48 0.30 Not Significant
Without Dependents 3.20 0.78
Mean SD T (94) p Interpretation
Male 3.15 0.88
Sex 0.27 0.81 Not Significant
Female 3.10 0.84
Mean SD F (2, 93) p Interpretation
P50,000 & Above 4.17 1.04
Monthly Gross Income P25,000-P49,000 3.16 0.85 5.26 0.01* Significant
P24,000 & Below 3.01 0.79
Mean SD F (4, 91) p Interpretation
1-5 Years 3.06 0.72
6-10 Years 2.75 0.63
Tenure 11-20Years 3.30 0.73 2.52 0.06 Not Significant
21-30Years 3.62 1.06
31 Years & above 2.73 0.37
Mean SD T (94) p Interpretation
Teaching 3.15 0.90
Job Position 0.27 0.63 Not Significant
Non-Teaching Staff 3.10 0.85

Table 11 shows that there is no significant difference in the employees’ level of financial literacy when grouped according to
all the variables considered in this study. This means that regardless of their age, family status, sex, monthly income, job
position, or tenure, they are comparably the same when it comes to their financial literacy.
 Journal of Human Resource Management 2017; 5(5): 78-89 86

Table 11. Difference in the employees’ level of financial literacy.

Variables Group Mean SD F (2,93) p Interpretation

20-33 3.23 0.87
Age 34-47 3.14 0.70 1.65 0.20 Not Significant
48 & Above 3.07 0.77
Mean SD T (94) p Interpretation
With Dependents 3.31 0.75
Family Status 1.1+4 0.59 Not Significant
Without Dependents 3.11 0.87
Mean SD T (94) p Interpretation
Male 3.27 0.78
Sex 0.45 0.98 Not Significant
Female 3.19 0.79
Mean SD F (2, 93) p Interpretation
P50,000 & Above 3.55 1.00
Monthly Gross Income P25,000-P49,000 3.29 0.92 0.63 0.54 Not Significant
P24,000 & Below 3.20 0.64
Mean SD F (4, 91) p Interpretation
1-5 Years 3.24 0.65
6-10 Years 2.93 0.84
Tenure 11-20Years 3.17 0.87 1.18 0.33 Not Significant
21-30Years 3.52 0.98
31 Years & above 2.93 0.12
Mean SD T (94) p Interpretation
Teaching 3.23 0.78
Job Position 0.20 0.92 Not Significant
Non-Teaching Staff 3.21 0.76

A significant difference in the employees’ level of financial behavior when grouped according to age was noted as shown in
Table 12.

Table 12. Difference in the employees’ level of financial behavior.

Variables Group Mean Sd F (2,93) P Interpretation

20-33 3.49 0.92
Age 34-47 3.76 0.86 3.34 0.04* Significant
48 & Above 3.20 0.91
Mean SD T (94) P Interpretation
With Dependents 3.50 0.92
Family Status 0.24 0.84 Not Significant
Without Dependents 3.45 0.94
Mean SD T (94) P Interpretation
Male 3.47 0.89
Sex -0.30 0.35 Not Significant
Female 3.52 0.98
Mean Sd F (2,93) P Interpretation
P50,000 & Above 4.02 0.98
Monthly Gross Income P25,000-P49,000 3.62 0.99 2.10 0.13 Not Significant
P24,000 & Below 3.35 0.83
Mean SD F (4,91) P Interpretation
1-5 Years 3.38 0.89
6-10 Years 3.30 0.92
Tenure 11-20Years 3.58 0.85 0.99 0.42 Not Significant
21-30Years 3.71 1.07
31 Years & Above 2.70 0.52
Mean SD T (94) P Interpretation
Teaching 3.57 0.95
Job Position 0.96 0.52 Not Significant
Non-Teaching Staff 3.37 0.92

Given the mean scores in the table, this result means that and tenure.
those whose age falls from 34 to 47 years old significantly Moreover, Table 13 reveals that there is no significant
have a better financial behavior than the rest of the age difference in the employees’ level of financial stress when
groups. This group consists of employees who pay their grouped according to age, family status, tenure, and job
bills/loans on time, own a bank account which they update position. However, in terms of monthly income, the results
every month, pay in cash instead of using credit cards, show that a significant difference exists and that those who
consider their financial situation before purchasing anything, earn between P 24, 000 and below significantly experience
and paying particular attention to items that they buy. The more financial stress compared to those who are earning
same table also reveals that there is no significant difference more. This result implies that employees who belong to the
in the employees’ level of financial behavior when grouped lowest salary scale experience more financial stress. This is
according to family status, sex, monthly income, job position, the group of employees who have trouble paying their bills
87 Robert Oton Parcia and Emeliza Torrento Estimo: Employees’ Financial Literacy, Behavior, Stress and Wellness

on time, may not afford the medical cost in case of sickness, and have trouble making ends meet for their family’s needs.
Table 13. Difference in the employees’ level of financial stress.

Variables Mean SD F (2, 93) p Interpretation

20-33 2.19 0.76
Age 34-47 2.69 0.95 3.01 0.54 Not Significant
48 & Above 2.31 0.83
Mean SD T (94) p Interpretation
With Dependents 2.44 0.84
Family Status 0.33 0.46 Not Significant
Without Dependents 2.38 0.97
Mean SD T (94) p Interpretation
Male 2.56 0.93
Sex 2.07 0.33 Not Significant
Female 2.18 0.74
Mean SD F (2, 93) p Interpretation
P50,000 & Above 1.38 0.33
Monthly Gross Income P25,000-P49,000 2.41 0.97 5.33 0.01* Significant
P24,000 & Below 2.55 0.78
Mean SD F (4, 91) p Interpretation
1-5 Years 2.50 0.77
6-10 Years 2.26 0.75
Tenure 11-20Years 2.54 1.03 0.39 0.81 Not Significant
21-30Years 2.42 1.17
31 Years & Above 2.83 0.76
Mean SD T (94) p Interpretation
Teaching 2.60 0.88
Job Position 1.25 0.90 Not Significant
Non-Teaching Staff 2.36 0.85

they need to know. This finding supports that of Lusardi and

3.4. Relationship between the Employees’ Financial Mitchell [15] and Hilgerth et al. [8] who had earlier
Literacy and Behavior, Financial Literary and Stress, established a relationship between financial literacy and
and Financial Behavior and Stress financial behavior. In their study, they found out that a
Table 14 shows that financial literacy and financial person’s financial behavior is affected by his financial
behavior are substantially related. This means that the literacy.
employees’ level of financial literacy significantly affects Meanwhile, the table also reveals that there is no
their financial behavior. This result implies that for them to significant relationship between the employees’ financial
have a better way of managing their financial resources, it literacy and financial stress and between their financial
will help if they can be properly educated about the things behavior and financial stress.
Table 14. Relationship among factors between the employees' financial literacy and financial behavior, financial literacy and financial stress, and financial
behavior and financial stress.

Factors r r2 p Interpretation
Financial Literacy
0.692* 0.479 0.000 Substantial Relationship
Financial Behavior
Financial Literacy
0.022 0.0005 0.83 No Relationship
Financial Stress
Financial Behavior
0.039 0.0015 0.70 No Relationship
Financial Stress

*Significant at 0.05 alpha level of significance.

3.5. Predictors of Financial Wellness

4. Discussion
Furthermore, a multiple regression was run to find out
which among the factors (financial literacy, financial This investigation has provided evidence that the
behavior, and financial stress) could predict financial employees’ demographic profile, particularly their age,
wellness. This result shows that financial literacy and family status, sex, monthly income, job position, and tenure,
financial stress are, statistically, determinants of financial may have some bearing on their financial wellness. These
wellness. So, the general form of the equation to predict findings are corroborated by the study of Joo (1998) who had
financial wellness is: predicted financial wellness = 0.975 + found certain demographic characteristics such as his marital
(0.685 x financial literacy) – (0.144 x Financial Stress). This status, income, education, age and the number of dependents
means that 68.5% of the variance of financial wellness can be in the household, as well as his financial knowledge as
attributed to financial literacy provided that the level of influential to an individual’s financial wellness [13].
financial stress is below zero. The fair level of financial wellness and the moderate level of
 Journal of Human Resource Management 2017; 5(5): 78-89 88

financial literacy discovered among the employees indicate the the Human Resource Office, could identify a suitable
need to include financial education as an administrative seminar-workshop or a quick course on financial
initiative to improve the employees’ ability to manage their management to further educate the employees on how to
financial resources. Considering that what the employees earn manage their financial resources. A financial wellness
is just enough for their basic needs, it is highly relevant to also program can also be designed to better prepare the employees
educate them on how to cope with and prepare for unexpected in case of emergencies or illness and help them in making
changes and unfavorable financial situations such as job loss, smart decisions when it comes to managing their finances.
health problems, or emergency cases. This financial wellness program may include basic financial
One’s monthly income or salary has been found crucial in behaviors that benefit both employee and employer such as
attaining financial wellness. Hence, hierarchical budgeting and money management skills, debt reduction,
advancement which subsequently leads to salary promotion credit management, and financial goal setting such as
should be made part of every employee’s career plans. increasing savings. Future researchers could use this paper as
Inasmuch as age could significantly spell a difference in the a point of reference by replicating this study in the context of
employees’ financial wellness, a sound financial their workplace. It can also be a basis for considering other
management must be emphasized across the employees’ variables that could affect the financial wellness of various
cycle in preparation to their retirement where a fall in the groups of people outside the workplace.
income begins and the period of dissaving is high.
The study has also revealed a domino relationship between
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