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PARENT’S INVESTMENT VIEWS: ITS IMPACT TO CHILD’S

INVESTMENT CHOICES

An Undergraduate Thesis

Presented to the Faculty of the

College of Business and Entrepreneurial Technology

RIZAL TECHNOLOGICAL UNIVERSITY

Mandaluyong City

In Partial Fulfillment of the Requirements for the Degree

Bachelor of Science in Business Management Major in Financial

Management

By

Dionisio, Trisha Mae M.

Jesalva, Angela Mae F.

Jumawid, Jubileen G.

Lazarte, Reyna C.

Macawile, Jenifer A.

______________

Date
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APPROVAL SHEET

This thesis entitled “Parent’s Investment Views: Its Impact to Child’s

Investment Choices”, prepared and submitted by Jenifer A. Macawile,
Reyna C. Lazarte, Jubileen G. Dionisio, Angela Mae F. Jesalva and Trisha
Mae M. Dionisio, in partial fulfillment of the requirements for the degree,
Bachelor of Science in Accountancy, has been examined and is hereby
recommended for oral examination.

___________________ DR. ANNALIZA B. VIERNES

Date Adviser

PANEL OF EXAMINERS

Approved by the Oral Examination Committee with a grade of _____,

on May 21, 2021.

_____________________
Chairman

_______________________ ________________________
Member Member

Accepted in partial fulfillment of the requirements for the degree,

Bachelor of Science in Accountancy.

DR. LEONILA C. CRISOSTOMO

Dean, College of Business and
Entrepreneurial Technology
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DECLARATION OF ORIGINALITY

We hereby declare that the thesis entitled "Parent's Investment

Views: Its Impact to Child's Investment Choices" is our own original work

carried out as an Undergraduate students at Rizal Technological University

except to the extent that assistance from others in the thesis design and

conception or in style, presentation, and linguistic expression are duly

acknowledged.

All sources used for the thesis have been fully and properly cited. It

contains no material which to a substantial extent has been accepted for the

award of any other degree at RTU or any other educational institution, except

where the due acknowledgement is made in the thesis.

Dionisio, Trisha Mae M.

Jesalva, Angela Mae F.
Jumawid, Jubileen G.
Lazarte, Reyna C.
Macawile, Jenifer A.

Students’ Name and Signature

_______________
Date
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ACKNOWLEDGMENTS

The researchers would like to extend their profound gratitude and

sincerest appreciation to the following persons who have contributed and

extended their unselfish assistance and support in the completion of this

study:

To the selected students of RTU who serve as respondents in our

study.

To our family who served us our inspiration, for their support, for

deep understanding and most of all for the patient rendered to us.

To our research professor, Dr. Annaliza Viernes, for guiding us

while doing this requirement, for teaching the subject, for sharing the

knowledge and for patiently understanding our concerns. Thank you.

Most especially to our almighty God for the blessings, strength and

power He gave us to face all the trials that we encountered. For the gift of

knowledge and protection God is giving to us in fulfilling this requirement.

To all, heartfelt gratitude! Thank you!

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ABSTRACT

TITLE : Parent's Investment Views: Its Impact to Child’s

Investment Choices

RESEARCHERS : Dionisio, Trisha Mae M.

Jesalva, Angela Mae F.
Jumawid, Jubileen G.
Lazarte, Reyna C.
Macawile, Jenifer A.

DEGREE : Degree of Bachelor of Science in Business

Administration Major in Financial Management

INSTITUTION : Rizal Technological University

YEAR : 2022

ADVISER : Dr. Annaliza B. Viernes

Parents have been and continue to be the major source of financial

knowledge for their child. The financial habits and ideals of one's child is heavily

influenced by their parents. The way parents handle their personal finances has

been demonstrated to influence how their child interact with and view money.

One of the things that a parent teaches their child is how to manage investment.

However, the differences between the parents and child’s views and beliefs has

its effects in the future decisions of a child, as well as in considering the best

investment choices for them. Because of this, the researchers conducted a

study to determine what are the impacts of parent's investment views to their

child's investment choices.

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In this study, a survey questionnaire was used to poll the respondents,

which included relevant questions for determining the study's stated aim. The

sampling technique used in this study was quota sampling. The researchers

used the Weighted Mean, Pearson Product Moment Correlation Coefficient

(Pearson's r) and Frequency and Percentage the statistical tool in this study to

determine if there was an impact and a relationship between parent's

investment views and child's investment choices.

Finally, based on the careful analyzation of the findings, the researchers

come up with recommendations which consists of some suggested increased

financial literacy and investment planning programs in order to utilize the

parent's investment views in creating and managing a child's own investment

plans.
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TABLE OF CONTENTS

TITLE PAGE .....................................................................................................i

APPROVAL SHEET ......................................................................................... ii

DECLARATION OF ORIGINALITY....………………….........................………..iii

ACKNOWLEDGMENTS .................................................................................. iv

ABSTRACT ......................................................................................................v

TABLE OF CONTENTS .................................................................................. vi

LIST OF TABLES .............................................................................................x

LIST OF FIGURE ........................................................................................... xii

I. THE PROBLEM AND ITS BACKGROUND

Introduction ......................................................................................... 1

Conceptual Framework .................................................................................... 4

Statement of the Problem ................................................................... 4

Hypothesis .......................................................................................... 5

Scope and Delimitation of the Study ................................................... 5

Significance of the Study…..........................………………….…………6

Definition of Terms .............................................................................. 7

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II. REVIEW OF RELATED LITERATURE

Parents Investment View .................................................................... 9

Parents Investment Behaviour .......................................................... 10

Preferred Investment Vehicle ............................................................ 15

Child’s Investment Choice ................................................................. 21

Starting Age ...................................................................................... 22

Purpose of Investment……………………………………………………22

Financial Education from Childhood…………………………………….24

Preferred Investment Vehicle………………………………...………….26

Impact of Parents Investment View to Child Choice………………..…28

CHAPTER III. RESEARCH METHODOLOGY

Research Method Used ................................................................... 35

Population Frame and Sampling Scheme........................................ 36

Methods and Data Gathering Procedure ......................................... 37

Research Instrument ....................................................................... 38

Statistical Treatment of Data............................................................ 39

IV. PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

V. SUMMARY, CONCLUSION AND RECOMMENDATIONS

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CHAPTER I

THE PROBLEM AND ITS BACKGROUND

Introduction

Children learn about financial matters differently from personal

experience, observation and education. The main contributor to a child's

knowledge about finance comes from the key adults in their lives, specifically

their parents. Parents are the role model; they also motivate and guide them

on the path of navigating their financial capability.

Investing is one of the best vehicles that parents share with their child in

order to secure their future financial stability. It can be done in various ways,

with different types of investment serving different purposes depending on the

parents financial goals and risk tolerance. According to Eastspring Investment

(2021), investment goals also vary from parents to parents, based on their

beliefs and experiences, but these goals normally include their child’s university

fees, retirement, what they hope to leave behind for their child, and general

future uncertainty. Most of the Asian parents today place a great value on

education, and to prepare for the hefty education price tag, they may consider

investing in bonds since its maturity can range from 1 to 10 years or longer,

while other parents who wish to relieve their children from financial burden of

supporting them in retirement, they may sort to investing in stocks. These

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investment choices of parents are often emulated by their children once they

decide to step and navigate in the financial world.

Li and Qui (2018) found that environmental factors in the home have a

significant impact on a child's interest. Parents with a working environment,

business people, or higher education are likely to have an impact on their

children. Because this is a common occurrence at home, the child is becoming

increasingly interested in following in the footsteps of his or her parents.

Furthermore, children will tend to observe their parents' everyday activities and

develop an interest in them if they see them doing anything. The value of putting

money aside and letting it grow was underlined several times by participants in

the qualitative research conducted by Jorgensen et al. (2019). Parents and

grandparents emphasized the importance of making money work for you

instead of spending it all immediately. Many young adults are said to have

learnt this lesson from their parents' example as well as direct instruction.

In the research conducted by Lanz et al. (2019), the findings show that

through the adoption of parents as a financial role model, family communication

quality has an indirect, positive impact on subjective financial well-being. This

is in line with the results of the study analysis conducted by Perdana and Yasa

(2021) the financial literacy level and family environment had a positive effect

on students' investment interest. Sirsch (2019) also stated that prior parental

direct financial instruction had a beneficial influence on the students' self-

assessed financial behavior control, which was somewhat mediated by their

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subjective financial knowledge. Therefore, the influence of self-perceived

financial behavior control on students' financial satisfaction was mediated by

the students' perceptions of their financial relationship with their parents and

financial conduct. Research by Xu, Zuo, Gao, & Yao, (2019) also states that

experience affects contentment, and satisfaction affects one's interests. In

addition, one of the factors influencing interest is the inner urge factor, which is

stimulation that comes from an environment that easily arouses one's interest,

with the family environment being the first and foremost environment that

includes all conditions that affect behavior, growth, and life one's processor,

thus that one's interests might be influenced by one's home surroundings.

One of the recent studies of Salumintao and Cinces (2019) revealed that

in the Philippines, parents are the most influential financial socialization agent

in a child’s financial education, beliefs, attitudes, and behaviors throughout their

lives. The financial literacy rates of the child depends on their exposure to their

parents as a socialization agent; the more they engage with them, the more

they will be educated and vice versa. These normally consist of modeling

consumer behavior, creating rules regarding a person's consumer behavior,

and participating in direct talks about purchasing decisions, money, credit,

promoting saves, and the providing of an allowance. Students and young adults

who were closely observed by their parents growing up had good views about

money. The reason why children usually depend on their parents’ financial
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views is because they are expected to accept adult authority and follow

parental orders due to Filipinos' deeply ingrained social norms of respect and

obedience to elders.

In light of the high influence of parents on their children, the researchers

conducted this study to investigate the notion that parents’ investment behavior

extent impacts the investment choices of their children, and to determine

whether financial education from parents during childhood is associated with a

greater frequency of healthy financial management and investment behaviors

in early adulthood stage of children.

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Conceptual Framework

Figure 1. Research Paradigm

PARENTS INVESTMENT VIEWS: ITS IMPACT TO CHILD’S INVESTMENT
CHOICES

This study was anchored based on the Parents Investment Views: Its

Impacts to Child's Investment Choices.

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The researchers used the input-process-output framework to identify the

connection of series of activities in this study. The input-process-out is a widely

used approach in systems analysis for describing the structure of an

information especially on group research today. The framework is based on

classic systems theory, which states that the general structure of a system is

as important in determining how effectively it will function as its individual

components.

As shown in the figure no. 1, the inputs in the demographic profile of the

respondents are the age and sex. The second inputs refers to the parents

investment views that includes their investment behavior and preferred

investment vehicles. The third input pertains to the child's investment choices

that includes their starting age, purpose of investing, financial education from

childhood and preferred investment vehicles. The last input related to the

impacts of parents investment views to a child's investment choices.

The expected outcome of this study is to find out the Impacts of Parents

Investment Views to Child's Investment Choices. To achieve this output, the

following process undertaken: data gathering using survey questionnaire

through Google Forms.

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Statement of the Problem

This study aims to determine the Parents’ Investment Views and its

impact on a child's investment choices. Specifically, this study looks to answer

the following questions.

1. What is the demographic profile of the respondents in terms of the

following:

1.1 Age

1.2 Sex

1.3 Monthly Income

1.4 Type of Investment

2. What are the different investment views of parents in terms of the

following:

2.1 Stocks

2.2 Bonds

2.3 Mutual Funds

2.4 Savings Accounts

2.5 Retirement Plan

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3. What are the impacts of parent's investment views to child's investment

choices?

4. Is there a significant relationship between parent's investment views to

child's investment choices?

Null Hypothesis

There is no significant impact of a parent's investment views to a

child’s investment choices.

Significance of the Study

The study about parent’s investment views and its impact to child’s

investment choices is important and possibly useful to the following:

Students: This study may give the students considerable information on the

impacts of a parent's investment views on a child's investment choices. This

will also help the students to be more wise in making decisions in saving or

investing their money to have the best possible outcome.

Parents: As children’s first teachers, this study may provide them with insights

about investments and their influences to their children. They will also be

motivated to teach their children the best way to invest at an early age based

on their experiences.
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Teachers: They are the person that helps the students in the learning process.

This study can help them provide recommendations and helpful insights in

guiding their students in learning about financial education.

Investment Analyst: The person with expertise in evaluating financial and

investment information. This study can help them determine and understand

how parents can influence their child in financial matters as well as provide

recommendations and helpful insights for their future clients.

Future Researchers: This study will be a good help as a reference for another

study regarding the same line that will help them to develop the new study.

They will be able to extract accurate data which they can use in their research.

Scope and Delimitation of the Study

This study aims to deeply understand the parent’s investment views and

its impact on the child's investment choices. The main objective of this

research is to identify the financial behavior of the parents including their

preferred investment vehicles and how they influence their child in financial

matters.

The researchers will conduct this study in Mandaluyong City, specifically

at Rizal Technological University Boni Campus. The subject of this study are

the parents and their children who are already engaged in investments.
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For this study, a survey questionnaire will be made to selected 307

students along with their parents. The collected data will be accurately

analyzed and interpreted to come up with enlightening insights, findings and

recommendations.

Definition of Terms

For better understanding of the research under study, the following terms

are defined using conceptual and operational approach.

Consumer behavior is the actions and the decision processes of people

who purchase goods and services for personal consumption.

Finance refers to the system that includes the circulation of money, the

granting of credit, the making of investments, and the provision of banking

facilities.

Financial literacy is the ability to understand and effectively use various

financial skills, including personal financial management, budgeting, and

investing.

Financial management is strategic planning, organizing, directing, and

controlling of financial undertakings in an organization or an institute.

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Financial socialization is a process of learning and advancing values,

knowledge, norms, standards, attitudes, and behaviors that promote financial

viability and individual well-being.

Financial stability is a property of a financial system that dissipates

financial imbalances that arise endogenously in the financial markets or as a

result of significant adverse and unforeseeable circumstances.

Investment vehicles are assets offered by the investment industry to

help investors move money from the present to the future, with the hope of

increasing the value of their money.

Socialization agents refers to the significant individuals, groups, or

institutions that influence others sense of self and the behaviors, norms, and

values that help them function in society.

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CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter presents the related studies conducted by individuals to the

pertinent study. These articles discuss the theories, concepts and principles

relevant to the research being undertaken by the researcher.

Parents’ Investment Views

Gauthier et al. (2020) states that parental investment in children refers to

the allocation of resources (time and money) by parents to their children, as

well as the management of risks and opportunities by parents. It includes

money spent directly (e.g., on clothing) and indirectly (e.g., a higher utility bill

as a result of having a larger family. (Pailhé, Solaz, &Tanturri, 2019). Mayer et

al. (2019) stated that parental engagement plays a key role in children’s future

success. According to Jackson and Schneider (2022), because families are the

major sources of investment in children, parents are required to offer access to

basic resources as well as additional developmental possibilities for their

children. From a young age, parents invest in and offer consumption for their

children. Following an income shock, these parents make their own spending

decisions and temporarily allocate resources by borrowing or saving. (Caucutt

and Lochner, 2019). Furthermore, this increase in parental investment in

children has been documented in a diverse range of nations and settings,

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implying the advent of a new worldwide trend. (Cornwell, Gershuny, & Sullivan,

2019).

Investment Behaviors

Saxon (2020) states that how students perceived their parents' financial

behaviors had the most influence on their capacity to invest, save, and manage

their savings. There is evidence that there may be differences in parent's

financial behaviors depending on a variety of conditions. This includes their

family's social status, income, financial situation, and beliefs, as well as their

child's assistance and independence.

Samudra and Burghate (2018) revealed that most of parents from middle

class preferably have an access to their investments and do not want to old

them for a long time. In countries such as India, where the majority of the

population is middle-class, families prefer an investment that can be easily

converted into cash in order to have multiple income sources and provide a

support system for their financial health and overcome issues of financial

burdens (Canara HSBC Life, 2021), whereas upper-class families prefer to

diversify their investment portfolio as they constantly seek to multiply their

source of income and ensures that risks are diffused and overall return earned

is high (Yiji, 2022).

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One of the factor that parents also consider in investing is their income. In

spite of the fact that income is the main reason why people are encouraged to

invest, it is also serves as starting point of investment. For an example, middle

class mostly rely on their wage as major source of their income and it was used

as basis of their investment choice. (Burghate, 2018). Without an income,

people have nothing to invest with.

The differences between the parents and child’s views and beliefs has its

effects in the investment behaviors of parents, as well as in considering the

best investment choices for them. According to Mehta et al. (2020), some of

the parent’s financial wisdom may not suit their children’s financial views. The

main reason is because parents normally depends traditional insurance plans

to achieve all their financial goals. These traditional plans not only provide very

poor profits, but also insufficient life insurance. Traditional plans were adequate

for parents to reach their milestones since they had pensions and other

government perks to fall back on, but they will not be for children who need to

develop their own retirement corpus and medical buffer. More than that,

parents were often so concerned with selecting safe and prudent investment

alternatives that even a modest post-tax return on fixed or recurring deposits

was acceptable because the uncertain nature of the stock market was

absolutely repulsive to them. Additionally, there were difference between their

priorities. While parents prioritizes buying house and retirement plans, their
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child do not as it will be a financial burden and would also confine them to one

place.

Another factor that affects the investment behavior of parents is the

independency and need for assistance of their child. According to a recent Pew

Research Center study of monthly Census Bureau data, 52 percent of young

adults lived with one or both of their parents in July, up from 47 percent in

February. The number of people living with their parents increased by 2.6

million from February to 26.6 million. The number and proportion of young

adults living with their parents increased across all major racial and ethnic

groups, men and women, metropolitan and rural populations, and all four major

census areas. Growth was greatest among young adults (ages 18 to 24) and

among White young people. Some of the young adults have been more like to

lose their employment or have their wages lowered. Due to the epidemic and

subsequent economic slowdown, the proportion of 16- to 24-year-olds who are

neither enrolled in school nor working more than quadrupled from February

(11%) to June (28%). (Fry, Passel & Cohn, 2020). This growing population of

young adults that chooses to live with their parents may result to a various

sources of conflict and stress in the financial standing of their parents.

The family economic stress perspective, in particular, contends that

financial strain in the family, such as unstable work, low income, or income loss,

causes parents to worry about their finances, which, in turn, contributes to

increased emotional distress such as frustration and depression, which

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interferes with couple relationships like increases in conflict and withdrawal,

and parenting practices including reduced responsiveness and increased

hostility and disengagement.(Mistry & Elenbaas, 2021).

Increased housing costs, the precarity of young adults' labor-market

experiences, and shifting societal standards are also factors, making it more

hard for them to put their money in investment. Single parents are frequently

financially disadvantaged and at increased risk of financial difficulty of this as a

result of having just one income and the difficulties of juggling childcare,

sometimes in part-time, low-paying job.(Clery, Dewar and Bivand, 2020; JRF,

2021). Research conducted by Hill (2020) found that for struggling parents on

low to middle incomes where young adults live with them, financial contribution

from young adult sons or daughters can be critical in keeping them afloat. On

the one hand, this can be mutually advantageous, but it can also prevent young

adults from saving to move out. It may act as a safety net in an unpredictable

environment, as well as a source of company and emotional support. Most

importantly, it is less expensive than living independently, and at best, it can

assist young adults in saving up to finally move out. While some parents may

be able to help their children with a deposit or support them while they live at

home, many low-income families just do not have the money.

Financial pressures, a lack of space, and poor relationships may all

contribute to the stress for both parents and their children. While living together

might cause issues associated to young adults taking on responsibilities, it can

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also be a rewarding experience. Recent study based on the family economic

stress model has also shown that parents distinguish between perceived

economic pressure to satisfy their family's practical necessities such as paying

bills, affording a place to live, purchasing food, and their family's aspirations for

modest luxuries or wants like vacations and new clothes. Importantly, mixed-

methods research with a diverse sample of low-income shows that a

psychological sense of being able to meet basic needs is associated with

mothers' sense of stability, feeling "okay" or "caught up", whereas affording

modest extras or wants is associated with feelings of fulfillment and

accomplishment. In fact, the mothers in these studies described doing

everything they could to protect their children from feelings of economic

hardship, pooling money from extra jobs and aid from family and friends to offer

unique extras such as requested games or toys, visits to the movies, or gifts.

Thus, for parents, family financial requirements and wants are distinct notions,

and both are critical for understanding the various ways in which family

economic stress affects kid well-being. In particular, when parents expressed

anxiety about satisfying their family’s basic material needs, their children were

aware too and shared their concern.(Mistry & Elenbaas, 2021).

Preferred Investment Vehicles

Parents choose investment instruments and plans depending to their

financial goals and risk tolerance. For an example, middle class mostly rely on
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their wage as major source of their income and it was used as basis of their

investment choice. Mukul Burghate (2018) found out that most preferred

investment of middle class income is the bank deposit and mutual fund, though

it does not guarantee high return, it was a low risk. Moreover, their decisions

are primarily personal and differ from parent to parent; nevertheless, there are

certain common goals that every parents share and end up picking based on

their retirement, child's education, what they plan to leave behind for their child,

and for the general uncertainties of the future.

Many of today's parents wish to free their children of the significant

financial burden of supporting them in retirement. As a result, more parents are

focusing on ensuring they have enough for their golden years. Parents like this

often look for investment in equities that pay dividends. (Eastspring Investment,

2021). Parents who are close to retiring are mostly lacking a paycheck from a

job and constantly looking for a different way to generate income to make ends

meet while also ensuring they do not outlast their income stream. As a result,

the best retirement plans to buy are the ones that pay dividends. (Bollinger,

2022). Examples of investment vehicles that pay dividends and is perfect for

parents’ retirement are stocks or shares, bonds and individual retirement

account.

Stocks is a type of investment vehicle that represents the holder owns a

share of the issuing corporation. This allows an individual to invest in a

company by buying shares of a company. Stockholders are entitled to a share

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of the corporation's assets and earnings in proportion to the amount of stock

they possess. Stocks are purchased and sold mostly on stock exchanges, but

private trades can occur, and they are practically the foundation of every

portfolio. Corporations issue or sell shares to raise cash for their operations.

Stock is classified into two types: common and preferred. (Hayes, 2022).

However, investing in stocks would also require time, information, and an

appetite for risk. As parents might not have time to monitor stocks so closely,

thus instead of buying stocks for the short term, they might consider buying

blue-chip stocks that provide consistent dividends. Blue chips are firms that

have been around for a long time and have a consistent profit stream. Investing

in blue-chip companies might pay off in the long term and lead to a comfortable

retirement.

Another best option for parents’ retirement are bonds. Bonds are units of

corporate debt that are securitized as tradable assets and issued by firms. It is

also referred to as a fixed-income instrument since it pays debt holders a fixed

interest rate (coupon). Variable or floating interest rates are becoming

increasingly popular. Bonds have maturity dates after which the principal must

be paid in full or the bond will default. Interest rates and bond prices are

inversely related: as rates rise, bond prices fall, and vice versa. (Fernando,

2022). According to The Investopedia Team (2022), bonds are perfect for

retirees because offer a fixed rate of interest, making them a reliable source of

income. It is also considered risk-free securities, which means that the

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investor's money is not at danger. Additionally, bonds can also be traded in the

secondary bond market before they reach maturity. To put it another way,

because there is so much liquidity, or a large number of buyers and sellers,

investors may simply sell their current bonds if they need to.

Ultimately, individual retirement plan or IRA is valued retirement plan

designed by the United States government to assist employees in saving for

retirement. It is best for retirement because it gives some substantial tax

benefits and allows an individual to buy an almost endless variety of

investments – stocks, bonds, CDs, real estate, and other items. As a result, the

IRA became a highly popular account to invest in for retirement. The major

advantage is that you won't have to pay any taxes until you take the funds in

retirement.

Saving for university is at the forefront of Asian parents' minds, since they

place a great importance on education. Unfortunately, greater education has a

correspondingly high cost. To fill in this high cost, parents often buy bonds and

takes the 529 plan.

As bonds maturities can range from 1 to 10 years, one alternative for

parents is to purchase a bond with a maturity date that corresponds to the

eventual lump sum financial expenditure necessary for your child's university

expenses. Bond also has the added benefit of providing a fixed income at

regular intervals throughout the duration of the bond's existence. In the interim,
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these recurring payments might assist the parents to pay for their other ongoing

financial obligations. (Eastsprings Investment, 2021).

A 529 tax-advantaged account is an ideal investment vehicle for K-12

tuition or college fees for parents wishing to save money for their children's

education. A qualifying tuition plan, often known as a 529 plan, is a tax-

advantaged savings account for educational costs. A 529 account, unlike other

tax-advantaged savings accounts, has no income restrictions on plan

contributions. The federal income tax on capital gains from investments does

not apply to withdrawals from a 529 plan used to pay for eligible school

expenditures. It is more adaptable than a standard savings account. The

account can be transferred to another kid or family member as the new

beneficiary if the original beneficiary decides not to attend a trade or vocational

school, college, or other post-secondary educational program. 529 plan

earnings increase tax-free over time. The sooner a beneficiary's account is

setup, the more time the money are invested, allowing for higher earning

potential. (Likos, 2022).

Many parents wish to leave a legacy endowment to their children in order

to give them a leg up in life. If they have the financial resources, they might

invest in real estate with the intention of leaving it to their loved ones, or they

could opt to invest in a Real Estate Investment Trust.

Investing in real estate might provide extra rewards. They could rent it out

to provide additional income to their child in the years when they don't need to
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live in it, sell it later if the value of their property rises or if they need the money,

or put it to their own use later; as a starter home for when their child starts their

own family, or as a more cost-efficient home when their child become empty

nesters. When they die, their offspring may be able to inherit real estate.

(Eastspring Investment, 2021).

A real estate investment trust (REIT) is a business that owns and runs

income-producing real estate or associated assets. Office buildings, retail

malls, flats, hotels, resorts, self-storage facilities, warehouses, and mortgages

or loans are examples of these types of properties. Individual investors can get

a percentage of the income generated by commercial real estate ownership

and take benefit of the real estate market through REITs, without having to

acquire commercial real estate or commit a big quantity of money to a second

home. (Investor.gov, 2021).

There are several other reasons to invest in addition to the above-

mentioned main aims. Parents seek to safeguard their children from dangers

they cannot predict. Some of these demands are met by insurance products,

while others might be met by investing. Mutual funds and certificate of deposits

are an excellent alternative for those concerned parents.

According to the Philippine Investment Assets Association, a mutual fund

is "an investment organization that combines the funds of numerous individual

and institutional investors to establish a vast asset base" (PIFA). Bonds,

equities, and other investment items are handled professionally by mutual

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funds. They're made up of a pool of funds gathered from a variety of sources.

The funds are then invested in other assets. (Zoleta, 2022). Mutual funds

provide a wide range of options and are a suitable choice for parents because

the initial and recurrent outlays are often minimal and well-managed. Money in

mutual funds does not have to be locked up for lengthy periods of time; it may

be withdrawn at any moment, making it perfect for use as a fund for unforeseen

situations. (Eastsprings Investment, 2021).

A certificate of deposit (CD) is a bank or credit union product that pays a

higher interest rate in exchange for the consumer agreeing to keep a lump-sum

deposit undisturbed for a certain amount of time. CDs are a more secure and

conservative investment than stocks and bonds, with less potential for growth

but a fixed rate of return. In return for keeping monies on deposit for a certain

amount of time, top-paying certificates of deposit provide greater interest rates

than the best savings and money market accounts. (Fernando, 2021).

Child’s Investment Choices

Musab and Mehemet (2019) revealed that parental decisions in particular

generate a dynamic dilemma that influences children's maturity states and, as

a result, their future choices. In return, parental actions are influenced by those

children's adulthood results, which are a proxy for the children's worth to

parents. Groups of people aged 18 to 24 were more likely to participate in long-

term activities. Their parents are most likely still behind them. (Henager &
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Cude, 2016). This is in line with the results of the study analysis conducted by

Jorgensen (2017) stating that parents' influence has a significant impact on a

child's investment or financial knowledge that he or she can carry up to

adulthood. Children with financially responsible parents are more likely to follow

in their parents' footsteps not only throughout childhood, but also into

adulthood. The study also revealed that the significant influence that parents

may have on their children when it comes to training young persons for future

financial stability.

Investing at a young age teaches a child a habit of financial independence

and discipline. According to Axis Bank (2019), early investment explains the

true distinction between investing and saving. It also boost the likelihood of

achieving financial stability at a young age and results in compounded profits.

Starting Age

Exposing children to the stock market at a young age may inspire them to

concentrate on accumulating wealth as adults. Around the age of eight or older,

kids will learn the most about the account. Any age is a good time to create a

child's investment account, but if the child is under the age of 18, they will

require parental help and custody. (McCurry, 2021 & Lankford, 2017). On the

other hand, to begin investing in stocks on their own, the child will need a

brokerage account, and they must be at least 18 years old to open one.A

lengthy time horizon is one of the most important aspects of successful

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investment, and children have plenty of it. They're likely to receive a substantial

return on their original investment if they're prepared to leave their money

invested for several years. (O’Shea, 2022).

Purpose of Investment

Younger individuals, according to Costanza Nosi et al. (2017), invest for

the purpose of building retirement wealth. Investing in annuities when they are

young will ensure their financial security in retirement. According to Axis Bank

(2019), there are an advantage of investing in an early age. If an individual

invest early and lose money, they will have more time to recover their losses.

An investor who begins investing later in life, on the other hand, will have less

time to recuperate his losses. Subsequently, if they invest early, their money

has more time to rise in value. Compounding returns result from early

investments. Money has a temporal value that rises with time. Regular savings

started at a young age can pay off handsomely when it comes time to retire.

Furthermore, early investing allows a child to enter the world of finance sooner.

With time, their money will increase in value. This puts them ahead of those

who would rather invest later in life. A child will also acquire the habit of saving

more when they start investing at a young age. The more they put in, the more

they will receive in the future. As a result of that mental process, they tend to

save more by reducing needless costs and investing the money they save.

Furthermore, they will never need to borrow money or become someone's

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debtor if you have enough money to invest. During such circumstances where

there is a need for immediate financial assistance, investments acquired at a

young age might come in helpful. It can help the investor to get through the

difficult times and to cover unforeseen costs. In addition, young investors are

more capable of taking risks than older investors. Adult investors, on the whole,

are conservative and desire stability, therefore they shun high-risk investments.

With great risk-taking capacity, the chances of generating excellent returns at

an early age increase. Finally, investing at an early age increases the chances

of achieving financial security. It is usually a better idea to start saving for

retirement when an individual are in their 20s rather than when they are in their

40s. Life after retirement is more difficult than it has ever been, therefore

planning for it now will result in a happier retirement.

Financial Education from Childhood

Financial education, according to the OECD, is the process by which

financial consumers/investors improve their understanding of financial

products, concepts, and risks, and develop skills and confidence to become

more aware of financial risks and opportunities, to make informed decisions, to

know where to seek help, and to take other effective actions to improve their

financial well-being, through information, instruction, and/or objective advice

(Arrondel, 2018). It is a lifetime learning process that will define one’s

relationship with money. Commonly, a child’s financial education begins at a

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very young age as they are proficient at learning through imitation during their

childhood and will develop as they grow up.

Children as early as three years old grasp basic economic ideas, and by

the age of seven, they have established long-term financial habits. Parents

have the most impact over their children's financial habits; at this age, children

turn to their parents to set an example and lead them. This was an excellent

opportunity for parents to begin teaching to their children that material objects

are expensive. Parents frequently urge their children to save more money at a

young age by offering to match their savings dollar for dollar or by a particular

percentage, which will allow them to observe how their balance changes as a

result of their actions. Because children have limited resources and rely on their

parents for income, they develop the habit of saving by keeping a piggy bank

or a savings jar in which they may put coins or cash. Eventually, they can save

their money by putting it in a bank when they have made a significant amount

of money. Between the ages of 6 and 14, spending will most likely be a part of

a child's early contacts with money. They frequently witness their parents using

it to make purchases, even those for them. Children learn more effectively

when their parents introduce them to money and explain what it is and how it

is utilized. They also learns about money by assisting with grocery shopping,

taking them through their parents' decisions to shop at various places, look for

coupons and promotions, and choose certain brands based on price and

budget. However, it's critical for parents to instill in their children the idea that
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money isn't just for spending—also it's for saving. Compound interest and how

credit cards function will mostly certainly be taught to children of this age. By

the time a child reaches high school, he or she is capable of comprehending

more complex financial ideas and has at least a basic degree of financial

literacy, which includes knowledge of earning, saving, spending, and sharing.

Credit card firms specifically target college students, consequently a child now

understand the risks of maxing out credit cards, how interest works, credit

limits, and the need of safely developing credit. (Borwick, 2022 & Huddleston,

2021).

Preferred Investment Vehicles

Investing, like anything else in life, benefits from getting started early. The

earlier an individual start planning for retirement, the better the chances of

getting a good return on their investment. This is true for college students as

well as young adults. They may get a good start on saving for their future by

taking advantage of their youth. Nevertheless, financial risk and tolerance are

taken into consideration in investing.

There are numerous investment vehicles available on the market that are

ideal for students who do not have a lot of money but want to start investing.

According to Moneymax (2021), the Philippines has seven of the cheapest

investments, all of which cost less than P1,000 and mostly preferred by

students. Mutual funds are one of the greatest investments in the Philippines,
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especially for a newbie with little time or knowledge to monitor the success of

their fund. Most mutual funds have a PHP 5,000 minimum initial investment

requirement. However, at a minimum of PHP 1,000, students can make further

deposits. Their money will be managed by a professional fund manager from

the mutual fund provider of their choosing, who will grow it and make

investment choices on their behalf. The Unit Investment Trust Fund, an open-

ended pooled investment fund managed by a fund manager, is also popular

among students. It works in a similar way to a mutual fund. The only difference

is that UITFs are provided by banks and are controlled by the Philippines'

central bank, the Bangko Sentral ng Pilipinas (BSP). On the other side, if

students want to step up their investment game, they might look into investing

in stocks. In the Philippines, joining the stock market entails purchasing shares

in a publicly traded firm and becoming a shareholder. They will profit if the firm

does well, and they will lose if the company does not. The biggest benefit is

that shareholders have easy access to their money, which they may cash in or

out through their broker during trading hours. If students choose, they can place

their money in a time deposit and receive a predetermined rate of interest for a

certain length of time. The lock-in time might be as little as a year or as long as

a year, but longer periods necessitate greater placement fees. Time deposits

are a safe, secure, and insured investment alternative. Interest rates are

guaranteed and stable, and they are greater than those offered by traditional

savings accounts. It's also easy to comprehend and set up. Another low-cost
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investing option for Filipino students is the Pag-IBIG MP2. They can begin

investing as little as PHP 500 each month. Enjoy government-guaranteed

savings and a yearly dividend rate of up to 7%. Furthermore, there is no limit

to the amount of money people may invest. Their MP2 deposits will mature

after five years, and they will be able to withdraw their funds. Similar to that is

the SSS PESO Fund. The GInvest by GCash app is the last on the list; it allows

anybody with a smartphone to establish their own investment. Based on the

Risk Profile Questionnaire, it is excellent for first-time investors with little

income, college students, and anybody with a smartphone who has varying risk

appetites/profiles.

Impacts of Parents Investment Views to Child’s Investment Choices

Parental financial pattern and example has been linked to strong self-

control skills in adolescents and shown improvements in young adulthood

financial ability and literacy skills (Tang, 2017). Jackson and Schneider (2021)

stated that parents affect the resources available to children to learn and obtain

information in order to engage in opportunities. Families and governments are

the key providers of child investment, providing basic resources and additional

developmental opportunities. Study by Rea, Danes, Serido, Borden, and Shim

(2018) found that young adults use both implicit and explicit family interactions

in how they perceive communication about money and well-being connected

to their finances, confirming the family financial socialization theories. The

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model is then expanded by Rea et al. (2018), who claim that a person's

cognitive interpretation of finances and financial well-being is derived from

family financial socialization processes, which serve as the foundation for the

ongoing development of their financial attitudes, knowledge, and capabilities.

Parents have been and continue to be the major source of financial

knowledge for teenagers and college students. The financial habits and ideals

of their children are heavily influenced by their parents. One of the things that

a parent teaches their children is how to manage money. The bulk of a child's

financial socialization takes place almost subconsciously as a result of family

money habits. Financial education and training for parents and children may

also be incredibly useful. Parents may connect with their children in a variety

of ways when it comes to their financial habits and practices. Discussing family

finances with a parent improves financial literacy, meaning that more

involvement in important aspects of family finances might lead to better

understanding and experience with money management. Even if parents go to

great measures to actively socialize their children in financial matters, this does

not guarantee that their words and instructions will be valued. When money is

addressed openly, however, children may find it easier to make a deliberate

decision that is similar to or opposes their parents' ideas. This is especially true

when children live apart from their parents and are more likely to keep their own

homes, resulting in larger financial gaps between their own and their parents'

lives. (Curran et al., 2018).

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Parents and family serve as the key socialization agents for children,

acting as a conduit for knowledge from the outer world into the child's more

personal reality. Children with financially responsible parents are more likely to

follow in their parents' footsteps not only throughout childhood, but also into

adulthood. It happens via the eyes of the parents, and as a result, the function

of information in the development of that child's financial perspective is

influenced. Children's learning from witnessing parents can last far into their

adult years. (Jorgenson, 2019). Moreover, Jorgensen et al. (2017) stated that

increased financial communication between parents and children resulted in

statistically significant improvements in cash management and the prevalence

of budgeting behavior, as well as increased saving and investing behaviors,

more positive credit usage, and increased purposeful planning behavior for

long-term financial goals.

The way parents handle their personal finances has been demonstrated

to influence how their children interact with and view money. Saxon (2020)

states that student’s ability to invest, save and their how they manage their

savings were most strongly impacted by how they viewed their parent’s

financial behaviors. Parents' nurture regarding investment has a lasting effect

on a child's ability until adulthood and beyond. Since the parents are the

primary source of income of young investors, most likely they will seek

guidance about their investment; when, where and how they will save their

money. Parents who spoke directly to their children about money issues,
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teenagers who were working and receiving a pay, and parents who supported

a relationship with a financial institution for money management had children

who were more inclined to save money rather than spend it.

LeBaron, Hill, Rosa, and Marks (2018) conducted interviews with college-

aged students to learn more about how their parents or grandparents taught

them about money and what topics they were educated about. Their findings

suggest that the most common way for participants to receive financial

socialization was through their parent or grandparent's modeling behavior,

followed by explicit family discussions about money-related topics (i.e. directly

addressing needs versus wants in a store), and finally through the parent or

grandparent providing experiential learning opportunities, such as encouraging

them to have a relationship with a financial advisor (LeBaron et al., 2018).

However, there is evidence that how, where, and how often parental

financial socialization happens may change depending on family

circumstances. (Jorgenson, 2019) According to Luhr (2018)'s qualitative

research, middle-class families were more deliberate in educating their children

about money than working-class families. Working-class parents, on the other

hand, expressed increasing emotions of being inexperienced and unprepared,

as well as a lower degree of confidence in their ability to teach their children

excellent financial information. Working-class families were also shown to have

a stronger desire to protect their children from their family's financial problems

than middle-class families (Luhr, 2018).

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CHAPTER III

RESEARCH METHODOLOGY

This chapter defines the methods and procedures implemented

in conducting this research study. It concentrates on the research

methodology, population, sampling scheme, methods or procedures,

instruments and statistical treatment of data.

Research Method Used

This study used a quantitative approach to answer the research

question. Quantitative research is the process of collecting and analyzing

numerical data. It can be used to find patterns and averages, make

predictions, test causal relationships, and generalize results to wider

populations. (PrithaBandhari, 2020)

This aimed to find out how much the students know something about

savings and investment, how they perceive both, and the factors as to why

students can’t save or invest money. A questionnaire used by the researcher

to assess the response of the participants to the research. Quantitative

questions will be used in this study's research questionnaire. Based on the

research‘s design and statement of the problem in chapter one, the data and

questions offered in the questionnaire are quantitative. The questionnaire

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included questions about the respondents' socio demographic profile, such as

their age, gender, monthy income, and type of investment. What training does

the respondent have in saving funds such as seminars and E-learning. The

questionnaire also asked if the respondents experienced investing their

capital, and what are the reasons why students can’t save or invest capital in

regards to their spending habits and ningaskugon.

Population Frame and Sample Scheme

The data in this study will be derived from the estimated total number of

BSBA – Financial Management students studying in Rizal Technological

University, Boni Campus and their parents which are based on the computed

sample size of the population. Those who are qualified to participate in this

study are individuals with the following characteristics:

1. Currently enrolled in RTU BSBA – FM program.

2. Parents who have child studying Financial Management in RTU

3. Currently has savings and investment

Those who were not qualified to participate in this study are individuals

with the following characteristics:

1. Who has no investment

2. Who are not enrolled in RTU BSBA – FM program.

3. Parents who do not have child studying Financial Management in

RTU.
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According to Bock (2019), simple random sampling is the most

straightforward approach to getting a random sample. It involved picking the

desired sample size and selecting observations from a population in such a

way that each observation has an equal chance of selection until the desired

sample size is achieved. The total population of BSBA – Financial

Management students is 1,315 from 1st year to 4th year, however, the total

number of respondents will be 307 according to the result using Slovin’s

formula. This formula can be used to figure out what sample size you need to

take. In addition, Slovin's formula is used when nothing about the behavior of

a population is known at all. (Stephany Ellen 2020). The researchers will

conduct this study through online Google forms designed by them according

to the research method decided to use and it will be forward or send to target

participants.

Description of the Respondents

The respondents of the study were the selected three hundred seven

(307) students of Rizal Technological University who are enrolled in Financial

Management program and who are already engaged with investments and

their parents. They answered a survey questionnaire prepared by the

researchers along with the parents.

Research Instrument
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The instruments used for this study is an online survey questionnaires

using the Google Form. The said questionnaires were constructed by the

researchers and based on the statement of the problem. The survey

questionnaire is consist of three parts.

Part I of the questionnaire consist of the items which gathers

respondent's profile such as name, sex, and age.

Part II of the questionnaire consist of the information about the

investment views of a parent. Part II was measured using the following

Preferential Level

Scale Range Corresponding

Remarks

4 3.26-4.00 Highly Preferred

3 2.51-3.25 Preferred

2 1.76-2.50 Non-Preferred

1 1.00-1.75 Strongly Non-Preferred

Part III of the questionnaire consist of the information about the

investment choice of their child.

Part III was measure using the following Agreement Level

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Scale Range Corresponding

Remarks

4 3.26-4.00 Strongly Agree

3 2.51-3.25 Agree

2 1.76-2.50 Disagree

1 1.00-1.75 Strongly Disagree

Data Gathering Procedures

The researchers prepared the questionnaire that led to answering the

problem and the respondents in this study were selected Financial Students

of Rizal Technological University (Boni Campus).

The researcher request permission from the Department Head of

Financial Management to distribute questionnaire to the respondents through

a Google form link. After the approval of the Department Head, the

researchers distributed to the Rizal Technological University Financial

Management Students.

After the data collected, the researchers proceed in tabulating and

summarizing the data being collected for statistical analysis and

interpretation.

Statistical Treatment of Data

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1. Weighted Mean

The weighted mean is calculated by multiplying the weight

associated with a particular outcome of an event or respondents summing

all the product all together then it will be divided by the sum of the weights.

Weighted average is considering data values to be more important to

other values since we want them to contribute to the final average of the

research.

WM = fwx
Formula:
WM: weighted mean
∑ : sum of
f: frequency

w: weights
x: total number of respondents

2. Person R

The Pearson product-moment correlation coefficient is a

measure of the strength of a linear association between two variables

and is denoted by r. In order to determine the investment influences of

a parents to child’s investment choice the coefficient can range

between -1.00 to 1.00. If the coefficient value ranges negatively the

means of relationship of variables is negatively correlated. If the

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coefficient value ranges positively the means of variables is positively

correlated or the both values can be together increased or decreased.

Formula:

r = correlation coefficient of person r

n = observation number
xi = value of x variable for its observation
yi = value of y variable for its observation

x = means of the value of x

y = means of the value of y

3. Frequency and Percentage

A percentage frequency distribution is a visualization of data

that shows the amount of observations for each data point or cluster

of data points as a percentage. It's a great way to describe the relative

frequency of survey replies and other information. Tables, bar graphs,

and pie charts are frequently used to show percentage frequency

distributions.

To create a percentage frequency distribution, begin by

determining the total number of observations to be represented, then

counting the total number of grouping of data points or exist for each
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data point, and finally dividing the total number of observations by the

number of observations within each data point or grouping of data

points. The total of all percentages that relate to each data point.

Percentage = F/N x 100%

Formula:

p = percentage

f = frequency of occurrence

n = number of respondents
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CHAPTER IV

Presentation, Analysis and Interpretation of Data

This chapter deals with the presentation of data in tabular and

graphical form which are engaged according to the problems stated in the

first chapter. Each table was given appropriate interpretation based in the

context of the problem raised in the study and with corresponding tables

presented sequentially to hive further clarity on data presentation and

analysis.

1. Demographic Profile of the Respondents

1.1 As To Age

Table 1.1

Frequency and Weighted Mean of the Demographic Profile of the

Respondents As to Age

FREQUENCY PERCENTAGE

18 years old and below 4 1.3%

19 – 22 years old 246 81.4%

23 – 25 years old 52 16.9%

26 – 28 years old 5 1.6%

TOTAL 307 100%

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This table represents the Age of the respondents. 18 years old and

below we have conducted 4 respondents (1.3%) which has the least

respondent that we had followed by the highest respondents 19-22 yrs old

we have conducted 246 respondents (81.4%). At the age 26-25 yrs old

we have conducted 52 respondents (16.92%).And last but not the least

Age 26-28yrs old we have conducted 5 respondents (1.6%).

1.2 As To Sex

Table 1.2

Frequency and Weighted Mean of the Demographic Profile of the

Respondents As to Sex

Frequency Percentage

Male 141 45.9%

Female 166 54.1%

Total 307 100%

These table represent the sex of respondents. Male 141

respondents (45.9%). Which has the highest and female 166 respondents

(54.1%).

1.3 As To Year Level

Table 1.3
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Frequency and Weighted Mean of the Demographic Profile of the

Respondents As to Year Level

FREQUENCY PERCENTAGE

1st Year 61 19.9%

2nd Year 42 13.7%

3rd Year 73 23.8%

4th Year 131 42.7%

TOTAL 307 100%

This table present the respondents that we had in the order of 1st

to 4th year. For the 1st year we had 61 respondent (19.9%). Followed by

the least respondents of 2nd year 42 respondents (13.7%) and 3rd year

we had conducted 73 respondent (23.8%) and lastly is the 4th year 131

respondents (42.7%) which has the highest respondents that we had.

1.4 As To Type of Investment

Table 1.4

Frequency and Weighted Mean of the Demographic Profile of the

Respondents As to Type of Investment

FREQUENCY PERCENTAGE

Bonds 9 2.9%
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Grocery Stores 1 0.3%

Jewelry Collection 2 0.6%

Mutual Funds 34 11.1%

Real Estate 1 0.3%

Retirement Plan 13 4.2%

Savings Account 214 69.7%

Stocks 33 10.7%

TOTAL 307 100%

This table presents the respondents type of investment. Bonds

have 9 respondents (2.9%), followed by the least respondents grocery

store having 1 respondents (0.3%), jewelry collection have 2 respondents

(0.6%), mutual funds have 34 respondents (11.1%), real state has 1

Respondent (0.3%) which is also the least respondents, retirement Plan

have 13 respondents (4.2%), savings account have 214 respondents

(69.7%) which has the highest respondent, and last but not the least

stocks have 33 respondents (10.7%).

2. Different Investment Views of Parents

Table 2.

Weighted Mean and Standard Deviation of the Different Investment

Views of Parents
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MEAN STD. VERBAL

DEVIATION INTER

PRETATION

1. I discuss financial matters 3.29 1.046 STRONGLY

with my child. AGREE

2. I track my monthly 3.53 0.829 STRONGLY

expenses. AGREE

3. I save money each month 3.51 0.802 STRONGLY

for the future. AGREE

4. I speak to my child about the 3.38 0.953 STRONGLY

importance of savings. AGREE

5. I encourage my child to 3.02 1.005 AGREE

invest.

6. I discuss how to choose the 2.87 1.057 AGREE

best investment to my child.

7. I teach my child how to track 2.84 1.079 AGREE

their investments.

8. I prefer investing in short 3.15 0.958 AGREE

term investments than in long

term investments.
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9. I tell my child to copy my 2.40 1.220 DISAGREE

investment plans.

10. I allow my child to make 3.27 1.039 STRONGLY

investment and financial goals AGREE

on their own.

WEIGHTED MEAN 3.13 0.637 AGREE

RESPONSE

PARAMETERS

(3.26 – 4.00) STRONGLY AGREE

(2.51 – 3.25) AGREE

(1.76 – 2.50) DISAGREE

(1.00 – 1.75) STRONGLY

DISAGREE

Table 2 above indicates a grand weighted mean of 3.13 in the

different investment views of parents. This means that the respondent

Agrees they are seeing their investment in different aspects. It can be

seen that the item 2 “I track my expenses.” ranked first with a weighted

mean of 3.53 and item 5 “I tell my child to copy my investment” ranked

least with a weighted mean of 2.40

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The highest mean that can be seen in item 2 with the statement of

'I track my expenses' agrees with the study of Saxon (2020) in which it

can be seen that parents are the most influential people to their child.

Children usually perceive their parents' financial behavior in a way of

tracking their expenses to be mindful of their investment, savings and

management of financial.

This supports the claim of Saxon (2020), that students perceived

their parents' financial behaviors had the most influence on their capacity

to invest, save, and manage their savings. There is evidence that there

may be differences in parent's financial behaviors depending on a variety

of conditions. This includes their family's social status, income, financial

situation, and beliefs, as well as their child's assistance and

independence.

3. Child’s Investment Choices

Table 3

Weighted Mean and Standard Deviation of the Impact of Parent’s

Investment Views to Child’s Investment Choices

MEAN STD. VERBAL

DEVIATION INTER

PRETATION
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1. I discuss financial matters 3.13 1.068 AGREE

with my parents.

2. My parents often tell me to 3.37 0.956 STRONGLY

track my monthly expenses. AGREE

3. My parents teach me to 3.52 0.781 STRONGLY

save money each month for AGREE

the future.

4. My parents encourage me to 3.09 0.971 AGREE

invest.

5. I make investment decisions 2.68 1.040 AGREE

based on what my parents

have done similar situation.

6. I look up to my parents as 3.02 1.077 AGREE

my role model when it comes

to managing money.

7. When it comes to choosing 2.58 1.147 AGREE

the best investment, my own

decisions are influenced by my

parents.

8. My parents have a positive 3.01 1.019 AGREE

influence on me when it comes

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to managing my own

investments.

9. I always follow my parents’ 2.50 1.121 DISAGREE

investment plans.

10. It is easy to choose my 3.07 1.127 AGREE

preferred investment without

any help from my parents..

WEIGHTED MEAN 3.00 0.679 AGREE

RESPONSE

PARAMETERS

(3.26 – 4.00) STRONGLY AGREE

(2.51 – 3.25) AGREE

(1.76 – 2.50) DISAGREE

(1.00 – 1.75) STRONGLY

DISAGREE

Table 3 shows the impact of parents on their children’s investment

decision making. It shows that on average, students agreed on statements

under parents’ impact to child’s investment decision making with overall

mean of 3.52 (Strongly Agree). Respondents strongly agreed in the

statement [My parents teach me to save money each month for the future.]
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with mean of 3.53 - highest mean while respondents Disagreed on

statement [I always follow my parent’s investment plans.]' with lowest

mean of 2.50 (Disagree).

The highest mean with the statement "My parents teach me to save

money each month for the future." had the average response of strongly

agree. The study of Grohmann & Menkhoff (2015), reflects why most of

the respondents strongly agreed to statement 2. According to them, the

research on child financial behavior shows for instance, parents

encouraged their children to save or taught them to budget, has a strong

impact on financial literacy. The present study shows that family

background has a major impact on financial literacy levels and, through

financial literacy, has a knock-on effect on financial behavior.

The lowest mean with the statement "I always follow my parents’

investment plans." had the average response of disagree. This is because

BSBA students know that parents understood their children has their own

plan of investing and saving up money which will be helpful to them. This

was supported by Jorgensen & Savla (2010), which states in their findings

that perceived parental influence had a direct and moderately significant

influence on financial attitude, and did not have an effect on financial

knowledge, and had an indirect and moderately significant influence on

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financial behavior, mediated through financial attitude. It includes parents

allowed their children to make their own investment decisions.

4. Relationship Between Parent’s Investment Views to Child’s

Investment Choices

Table 4

Relationship Between Parent’s Investment Views to Child’s

Investment Choices

r Strength p- Sig

value value

PARENT’S CHILD’S .872 STRONG p= S

INVESTMENT INVESTMENT 0.000

VIEWS CHOICES < 0.05

The statistical treatment used is Pearson-r correlation. The tables

above shows the correlation coefficient and the p-value. The strength of

the relationship can be determined by the value of the correlation

coefficient presented as r. The significance level is at .05. So if the p-value

is less than or equal the significance level then we consider the

relationship significant.
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If r is positive that means as one variable increases the other also

increases. But if r is negative that means that as one variable increases

the other decreases.

The table 4 shows the significant relationship between parents

investment views to child's investment choices. The result shows that

there is .872 r value, which indicates that there's a strong relationship

between parents investment views to child's investment choices. The

parents' perspective in investment has a big factor in their children's

preference in selecting investment which is a good result for the reason

that they still consider their parents' opinion when it comes to investment.
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CHAPTER V

SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS

This chapter summarizes the study on Parent’s Investment Views:

Its Impact To Child’s Investment Choices. It present results of quantitative

data analysis to come up with the findings and conclusions drawn from

the research that serves as the basis for the recommendations.

Summary of Findings

The following are the major findings of the study based on the

research conducted:

1. Demographic Profile of the Respondents

Based on the data obtained, majority of the students who are

engaged in investment are ages 19 to 22 years old, and more than half of

them are female. Results also showed that most of the respondents are

in their 4th year and consider savings accounts as their preferred

investment vehicle, while the second-most pick are the mutual funds and

stocks.

2. Different Investment Views of Parents

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It was revealed in the data that majority of the parents provide

resources and information for their child to learn and gain knowledge

about managing their own finances and investment. For example, parents

teach their children to keep track of their monthly expenses and to save

money for the future. Most of them also strongly agreed that they talk

about financial matters with their child, which includes discussing the

importance of saving money and allowing them to make their own financial

goals and investments. However, they do not recommend telling their

child to copy their investment plans. This implied that while parents had a

direct influence on their child's financial behaviors, they had no overall

control over how their child perceived investments. Most of them allow

their child to make their own decisions and determine what type of

investment is best for them.

3. Child’s Investment Choices

The responses revealed that a child learns about managing their

finances and investing from their parents. They gain knowledge through

consistent teaching and advising, such as when their parents encourage

them to invest and tell them to keep track of their expenses. Through these

kind of discussion, a child is more likely to get behavior of their parents

because they are more experienced in finance and investment. The

findings also revealed that, despite adopting their behaviors, a child may
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not apply this when making their own investment decisions. For instance,

a child may consider following their parent's investment techniques and

methods, but not their entire investment plan. This indicates that a child

has to make the decision. Although their parents have a major influence

on choosing their preferred investment vehicle, they are still allowed to

realize what type of investment are best for them and to make their own

decision.

4. Relationship Between Parent’s Investment Views and Child’s

Investment Choices

The data collected from the survey showed a significant correlation

between parent’s investment views and child’s investment choices at a

strong level, indicating that the relationship between the two is strong.

Parents are the most influential people to their child, especially in

managing their finances and investments. The knowledge provided by

parents has an impact on a child's ability to manage their money and

investment. The child learned by direct example and instruction from their

parents, and they will eventually seek advice on when, where, and how to

save their money. While parents who encouraged their child to invest and

taught them about financial matters, recognize that their child still consider

their opinions and views, as well as the importance of their perceptions,

in choosing their own investment.

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Conclusion

Based on the foregoing findings, the following conclusions are

drawn:

1. Parent's investment views are taken into consideration when a

child chooses for the best investment. The values and behaviors they

passed on to their child will serve as a guide in making financial decisions

and choosing the best investment on their own. They may have a direct

influence on their decision making, but they have no control over them.

2. The financial behaviors and teachings of parents had the

greatest influence on their children's ability to invest, save, and manage

their finances. A child who has a financially responsible parent will always

consider their parent's advice and lesson when making their own

investment. Nonetheless, the child has the complete authority to choose

and decide in what is the best investment for them on their own

3. Parent’s views and behaviors had a strong influence to a child’s

investment choices. They seek for their parent’s opinion and consider their

perspective when choosing their preferred investment vehicle.

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Recommendations

Based on the findings and conclusions, the following

recommendations are hereby follows:

1. Increased financial and investment literacy. The results showed

a significant relationship and proved that parent's investment views had a

strong impact to a child's investment choices. Owing to that, the

researchers decided to suggest that parents should improve their financial

and investment literacy since their views and behaviors are passed down

through generations. A good knowledge about finance and investment

would maintain positive growth and increase the impact of the modelling

behaviors they are able to pass on to their child before the latter chooses

their preferred investment.

2. Establishment of investment planning programs in higher

education institutions. Although parent's investment views and behaviors

can be passed down to their child, this does not necessarily indicate that

they have control on how their child chooses the best investment for

themselves. Therefore, the researchers strongly recommend that college

campuses should provide a program that assists a child in utilizing the

views and behaviors of their parents in creating their own investment

plans.
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3. Conducting research studies that focuses on identifying the

problem areas. Since the researchers concluded that a child do not copy

their parent's investment plans, it is recommendable for future researchers

to study the problem areas of the impacts of parent's investment views

and behaviors on child's investment choices. Further research into how a

child previously learned to create their own investment plan and how they

would like to gain more knowledge would also be critical in identifying and

solving the area of concern.

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Appendices

SURVEY QUESTIONNAIRE

VALIDATION OF SURVEY QUESTIONNAIRE

STATISTICIAN CERTIVICATE

CURRICULUM VITAE
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SURVEY QUESTIONNAIRE

PARENT’S INVESTMENT VIEW: IMPACT TO CHILD’S INVESTMENT

CHOICES

We are 3rd year students from Department of Business Administration of

Rizal Technological University, Boni Campus. We are working on a
research titled "Parents' Investment View: It's Impact To Child's
Investment Choice's" as part of our requirements for completing the
program Bachelor of Science in Business Administration major in
Financial Management.

Your responses will remain anonymous and confidential. Thank you for
participation.

Researchers:
Dionisio, Trisha Mae M.
Jesalva, Angela Mae F.
Jumawid, Jubileen G.
Lazarte, Reyna C.
Macawile, Jenifer A.

I agree that any that any personal information provided in this

survey

Data Privacy Act of 2012

In accordance with the Data Privacy Act of 2012 and it's Implementing
Rules and Regulation in answering this form and disclosing your
personal information you give the researchers from CBET-22-603A your
consent to collect, access, and process any personal information and/or
sensitive personal information for evaluating purposes. We will surely be
gathered information with confidentiality.

Part I. General Information

1. Demographic Profile of the Respondents

Instruction: Please fill out the needed information or check the

corresponding answer for each item.
COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

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1.1 Name: (Optional) ________________________________

1.2 Gender

Male Female

1.3 Age

18 below 26-29
18-21 30-34
22-25 35 above

1.4 Year level

1st Year 2nd Year

3rd Year 4rd Year

Do you have investment or savings?

Yes No

What type of investment do you have?

Stocks

Bonds

Mutual Funds

Retirement Plan

Savings Accounts

Others: ___________________

Part II:

Direction: Read each statement carefully. Please indicate your level of

agreement on the following statements by checking the box provided.

1 – Strongly Disagree
COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

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2 – Disagree

3 – Agree

4 – Strongly Agree

Parents View 1 2 3 4
1. I discuss financial matters with my child.
2. I track my monthly expenses.
3. I save money each month for the future.
4. I speak to my child about the importance of
savings.
5. I encourage my child to invest.
6. I discuss how to choose the best investment to
my child.
7. I teach my child how to track their investments.
8. I prefer investing in short term investments than
in long term investments.
9. I tell my child to copy my investment plans.
10. I allow my child to make investment and
financial goals on their own.

Part III:

Direction: Read each statement carefully. Please indicate your level of

agreement on the following statements by checking the box provided.

Child’s View 1 2 3 4
1. I discuss financial matters with my parents.
2. My parents often tell me to track my monthly
expenses.
3. My parents teach me to save money each
month for the future.
4. My parents encourage me to invest.
5. I make investment decisions based on what my
parents have done in similar situation.
6. I look to my parents as my role model when it
comes to managing money.
7. When it comes to choosing the best investment,
my own decisions are influenced by my parents.
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8. My parents have a positive influence on me
when it comes to managing my own investment.
9. I always follow my parents investment plans.
10. It is easy to choose my preferred investment
without any help from my parents.
 Rizal Technological University

Boni Avenue, Mandaluyong City

Bachelor of Science in Business Administration

Financial Management Department

VALIDATOR’S CERTIFICATION

Date: _____________________

This is to certify that the Test Instrument “Parent’s Investment Views: Its Impact To
Child’s Investment Choices” of Researcher/s: Macawile, Jenifer A., Dionisio, Trisha Mae
M., Lazarte, Reynca C., Jesalva, Angela Mae F. and Junawid, Jubileen G. was corrected
for content and face validation.

This further certifies that on the bases of my utmost content knowledge in Research,
the content of the test instrument is:
( ): Poor ( ): Good ( / ): Very Good ( ): Excellent.

Validated By:

_DR. NELSON R. GARCIA_________________

Name & Signature of Evaluator/Expert

__Doctorate Degree________________________
Highest Degree Attained & Year Attended

_Rizal Technological University______________

Granting University/College

___ _________________________________
On- Going Degree/Study

_ 8/25/2022_____ _____________________
Date of Validation
 Rizal Technological University

Boni Avenue, Mandaluyong City

Bachelor of Science in Business Administration

Financial Management Department

 Rizal Technological University

Boni Avenue, Mandaluyong City

Bachelor of Science in Business Administration

Financial Management Department

VALIDATOR’S CERTIFICATION

Date: September 5, 2022

This is to certify that the Test Instrument “Parents’ Investment Views: Its Impact
To Child’s Investment Choices” of Researcher/s: Jenifer A. Macawile, Angela Mae
F. Jesalva, Jubileen G. Jumawid, Trisha Mae M. Dionisio and Reyna C. Lazarte
was corrected for content and face validation.

This further certifies that on the bases of my utmost content knowledge in Research,
the content of the test instrument is:
( ): Poor ( ): Good ( / ): Very Good ( ): Excellent.

Validated By:

Gabriela C. Flores___________
Name & Signature of Evaluator

Master of Arts in Literature and Language Instruction/ May 2016_

Highest Degree Attained & Year Attended

Rizal Technological University_____

Granting University/College

Doctor of Philosophy in Technology Education

On- Going Degree/Study

September 5, 2022_ _____________________

Date of Validation
 Rizal Technological University

Boni Avenue, Mandaluyong City

Bachelor of Science in Business Administration

Financial Management Department

 Rizal Technological University
Boni Avenue, Mandaluyong City
Bachelor of Science in Business Administration
Financial Management Department

VALIDATOR’S CERTIFICATION

Date:

This is to certify that the Test Instrument “Parents Investment Views: Its Impact
To Child’s Investment Choices” of Researcher/s: Jenifer A. Macawile, Angela Mae
F. Jesalva, Jubileen G. Jumawid, Trisha Mae M. Dionisio and Reyna C. Lazarte
was corrected for content and face validation.

This further certifies that on the bases of my utmost content knowledge in Research,
the content of the test instrument is:
( ): Poor ( ✔ ): Good ( ): Very Good ( ): Excellent.

Validated By:

Christian Neil A. Ramos

__________________
Name & Signature of Evaluator/Expert
Master’s in Business Administration / 2016‐2019
__________________________
Highest Degree Attained & Year Attended
Polytechnic University of the Philippines
______________
Granting University/College
N/A
___ _________________________________
On- Going Degree/Study
September 7, 2022
_ _____ _____________________
Date of Validation
 CERTIFICATE OF STATISTICIAN

This is to certify that the undersigned has computed and analyzed the thesis

entitled Parent's Investment Views: Its Impact To Child’s Investment Choices by

Dionisio, Trisha Mae M., Jesalva, Angela Mae F., Jumawid, Jubileen G., Lazarte, Reyna

C. and Macawile, Jenifer A. aligned with the set of rules that govern the analysis of data

in Statistics.

This certification is issued upon request of the researchers. Given this 18th day of

November in the year of the Lord, 2022.

Signed:

KARIZZA M. ABOLENCIA
Statistician