CHAPTER 1

INTRODUCTION

Background of the Study

The global marketplace is becoming riskier and more unstable daily (Utami

et al., 2021). The business world has encountered drastic changes in the last few

decades due to the global financial crisis (Sultana et al., 2018), which greatly

influences individual investment decisions. The complex part of investment

decision-making is carefully selecting the most appropriate investment type (Seraj

et al., 2022). Every investment incorporates factors such as the risk to take and its

potential return, Dash (2019) stated. Individuals must select how much risk to take

because future events are unforeseeable. The traditional economic theory

assumes that people are rational agents who make decisions objectively based on

their knowledge, experience, and expectations and can take advantage of

available opportunities (Raut, 2020). According to (Bikas et al.) in 2017, the

behavioral paradigm of financial decision-making—that is emotional desire,

ingrained thought patterns and a psychological bias of various people describes

how investors make investing decisions.

A study in Australia by Palm (2016) on financial literacy and investment

decision-making possesses a significant economic and social influence. A study

by Bucher et al. (2017) stated that most government employees are the vulnerable

group that does not possess financial literacy. Investment decision is a necessary

process that involves selecting a stock from various options available in various
 2

stock markets (Bucher et al.,2017). It should consider the rate of return, risk

tolerance, and various market situations (Kumari, 2020). Having the financial

information and ability to make wise investment decisions is necessary to make

well-informed financial decisions. Individuals must acquire financial knowledge

and skills to strengthen their ability to make rational investing decisions (Alshebami

& Aldhyani, 2022). Thus, carefully choosing the best investment is a complex

investment decision element.

In a Standard & Poor's (S&P Global Ratings) global study, the Philippines

ranked in the bottom 30 out of 144 countries surveyed in 2014, scoring only 25

percent in financial literacy. These findings highlight a financial literacy gap in the

country. Financial literacy or awareness is necessary for choosing the right project

in today's economy, especially in developing countries. According to Robb and

Woodyard (2016), sufficient financial literacy will positively influence a person's

financial decisions, such as setting or allocating finances appropriately. Investors

with high financial literacy can make better investment decisions. Individuals must

acquire financial skills and knowledge to improve their ability to make rational

investment decisions (Alshebami & Aldhyani, 2022). Improving financial literacy

has been emphasized due to multiple factors, such as changes in economic and

demographic situations, complicated financial markets, and new financial markets

(Al-Tamimi et al., 2019).

Studies have been conducted on the relationship between financial literacy

and investment decisions, but few research studies have been conducted on the
 3

relationship in developing countries. In addition, there is inconsistency and

inconclusiveness in the relationship between financial literacy and investment

decisions; some studies have found negative, others positive. This calls for further

investigation to prove the nature of the relationship. Given the abovementioned

issues, the study sought to examine the influence of financial literacy on

investment decisions among employees in the Local Government Unit (LGU) of

the City of Mati, Davao Oriental, Philippines.

Statement of the Problem

The main objective of this study was to examine the influence of financial

literacy on investment decision among employees in LGU- City of Mati, Davao

Oriental. Specifically, it seeks to answer the following questions:

1. To determine the level of financial literacy among employees in LGU- City

of Mati, in terms of;

1.1 Financial knowledge

1.2 Financial behavior

1.3 Financial awareness

2. To determine the level of investment decisions among employees in LGU-

City of Mati, in terms of;

2.1 Benefit

2.2 Security

3. To determine the significant relationship between financial literacy and

investment decisions.
 4

4. To determine the significant influence of financial literacy on the investment

decisions.

Hypothesis

Ha: There is significant influence between financial literacy and investment

decisions among employees in LGU- City of Mati.

Ho: There is no influence relationship between financial literacy and

investment decisions among employees in LGU- City of Mati.

Significance of the Study

By assessing the influence of financial literacy on investment decisions

presented by this study, there will be an expansion of understanding for individuals

regarding financial knowledge, financial behavior, and financial awareness. This

study will provide a clear presentation of financial literacy and investment

decisions. Giving the individual insights on how financial literacy impacts

investment decisions. Specifically, this study will benefit the following:

Investors- this study will help them expand their knowledge about financial literacy

and investment decisions and make informed choices by balancing risk and

reward.

Government- The study focused on measuring the level of financial literacy of

government employees; in that matter, it will help the government fill the gap in

terms of the employees' financial knowledge.

 5

Future investors- An individual who wants to invest someday will gain knowledge

of what to consider prior to deciding on a particular investment.

Academe- The study can serve as a reference as they will gather information on

particular matters that might help them in future events or for academic purposes.

Scope and Limitation of the Study

The focus of this study is limited to employees of the Local Government Unit

in the City of Mati, specifically the regular employees of LGU- City of Mati. This

study considers a specific aspect of the employees' financial literacy, such as

financial knowledge, financial behavior, and financial awareness, that impacts

investment decisions. The participants who will be included in this study are the

regular LGU- City of Mati employees from different departments, regardless of the

employee's salary and the duration of public service. Job order employees are not

included to be respondents of this study as job orders cover the short duration of

work. The Local Government Unit- City of Mati is located at City Hall Compound,

Nazareno St., Central, Mati City, Davao Oriental.

This provides further justification for the general objectives of this study - to

determine the influence of financial literacy on investment decisions among the

employees in LGU- City of Mati.

Definition of terms

Financial literacy- is an understanding and knowledge of a financial concept and

the ability to manage money wisely and appropriately on a financial product.

 6

Investment decision- The act of investors and how they interpret, anticipate,

investigate, and assess the decision-making steps and transactions regarding

financial.

Employees of LGU- City of Mati- Individuals currently working as regular

government employees in the Local Government Unit- City of Mati.

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CHAPTER II

REVIEW OF RELATED LITERATURES

This chapter will present the theoretical and conceptual frameworks of the

study at hand—also, related literature focuses on the aspect of financial literacy

and investment decision and their indicators. The subtopics covered in the related

literature are financial knowledge, financial behavior, and financial awareness. And

under the investment decisions are benefit and security.

Theoretical Framework

The current study was based on both dual process theory and theory of

planned behavior.

Dual Process Theory

This theory argues that both intuitive and cognitive processes influence the

decision-making process. The idea has gained popularity in various domains,

including behavioral finance, to demonstrate that interpretative variables, biases,

and framing are affected by System 1 (Alós et al., 2018). Previous research has

demonstrated that the second system is suitable for the enhancement and

involvement in the process of making decisions (Reyna, 2016). Mussweiler (2019)

states that a targeted strategy must be employed when assessing and examining

financial or economic aspects. Dual-process theories may help explain whether

investment decisions are based on intuitive thinking and the use of both analytical

and rational thinking. Financial knowledge skills include computing interest rates
 8

and incorporating inflation in decision-making and portfolio selection criteria.

Through these theories, employees of LGU- City of Mat criteria financial

knowledge will be examined to see whether it influences investment decision-

making.

Theory of Planned Behavior

The leading proponent of the theory of planned behavior (TPB) is Ajzen

(1988), who proposed that mainly individual behaviors can be changed. Given that

behavior can be predictive, TPB theory anticipates the latter to be intentional.

According to TPB, there are three categories of human behavior: behavioral,

normative, and control beliefs. Behavioral beliefs are concerned with the likely

consequences of individual behavior; normative beliefs are concerned with other

people’s expectations of our behavior, and a control belief stipulates that they are

impediments to behavioral performance.

Conceptual framework

The conceptual framework depicts the influence of financial literacy as the

independent variable and investment decisions as the dependent variable. The

independent variable incorporates three indicators: financial knowledge, financial

behavior, and financial awareness. The variables listed inside the frame anchor

the study's overall relevancy. The arrow in the framework indicates correlational

linkages among the variables. Therefore, the study examines whether there is a

significant influence between financial literacy and investment decisions.

 9

INDEPENDENT DEPENDENT
VARIABLES VARIABLES

Influence of Financial Investment Decision

Literacy
• Benefit
• Financial knowledge • Security

• Financial behavior

• Financial awareness

Figure 1: Conceptual Framework of the Study

Financial literacy

The term "financial literacy" refers to a notion intended to cover several

parts of financial education (Zait and Bertea, 2019). The focus is either on

knowledge, or on the ability of using the knowledge and even people’s self-

confidence towards their own financial actions. In this study, the researchers

defined “financial literacy” as having the understanding and abilities required to

manage money wisely and appropriately on investment decisions. Generally,

financial literacy has taken on a variety of meanings; it has been used to define

having understanding of financial products (such as what a stock, bond, security,

and the like are), knowledge of financial concepts (such as inflation, diversification,

credit scores), having the mathematical abilities required for sound financial

decision-making, and engaging in specific activities like financial planning. Today,

it is made clear by the concept that financial literacy is more than just knowledge;

it include attitudes, behavior, and abilities as well. It emphasizes the significance

 10

of decision-making, emphasizing the application of information and abilities to a

practical process, and suggests that the impact should enhance one's financial

well-being (Atkinson and Messy, 2018).

The conceptual definitions of financial literacy have evolved along with the

complexity of the economy. Researchers and financial experts have long argued

the definition of the idea. Based upon a review of research studies since 2000, the

many conceptual definitions of financial literacy fall into five categories: knowledge

of financial concepts, ability to communicate about financial concepts, aptitude in

managing personal finances, skill in making appropriate financial decisions, and

confidence in planning effectively for future financial needs (Remund, 2020).

Different researchers and programs try to expand the conceptual definition of

financial literacy beyond the five already mentioned categories to include various

aspects. It is essential to keep in mind that a few researchers who have recently

released research on financial literacy have not precisely defined the term.

Furthermore, a study conducted by (Klapper., et al, 2015) stated that without

an understanding of basic financial concepts, people are not well equipped to

make decisions related to financial management. People who are financially

literate have the ability to make informed financial choices regarding saving,

investing, borrowing, and more. Whereas Standard & Poor's Ratings Services

Global Financial Literacy Survey (S&P Global FinLit Survey) conducted a survey

in 2014 with the result that only 33% of adults worldwide are financially literate.

This indicates that over 3.5 billion persons worldwide most of whom live in
 11

developing nations, need a basic understanding of financial concepts. Financially

literate consumers not only manage money with more confidence, but also have a

better chance of handling the inevitable ups and downs of their financial lives by

understanding how to prevent and manage issues as they arise (McGurran, 2021).

Individuals should be financially literate before using financial services and,

therefore, it is important to increase financial literacy.

Financial Knowledge

In everyday life, individuals make a lot of decisions, some of which have

financial or economic aspects. Several researchers propose different methods to

measure financial literacy, but none of them is completely acknowledged as the

best one. However, for many years financial knowledge has been considered a

synonym of financial literacy (Van Rooij et al., 2017). Sanderson (2015), on the

other hand, described financial literacy as the capacity of a person to utilize

knowledge and abilities to make wise financial decisions for efficient management

of financial resources.

Financial knowledge helps individuals compare financial products and

services and make appropriate, well-informed financial decisions (Yoshino, et, al.,).

A basic knowledge of financial concepts and the ability to apply numeracy skills in

a financial context ensure that consumers can manage their financial affairs

independently and respond appropriately to news and events that may have

implications for their financial well-being. According to Howlett et al (2018),

individuals possessing financial knowledge are more financially literate and able
 12

to handle money efficiently. Lusardi and Mitchell (2014) argue that financial

knowledge impacts key financial outcomes during work life. Van Rooij et al (2011)

identified that financial knowledge has a positive association with retirement

planning and individuals possessing financial knowledge are more financially

literate. However, on the study by Rizal, et al., (2022), suggests no effect of

financial knowledge on financial literacy.

The current study adopts the OECD (2018) definition. It recognizes that, in

various financial circumstances, an individual's drive and confidence are

necessary for applying financial knowledge in investment decision-making. It also

places a strong emphasis on enhancing both societal and individual financial well-

being.

Financial behavior

Kelekye and Memba (2015) defined financial behavior as a human

behavior relevant to financial decision-making and money management includes

regular bill payments, regular savings, and creating and managing an appropriate

budget. The OECD (2013) states that sound financial behavior are essential

component of financial literacy. According to Atkinson and Messy (2012),

individuals who practice positive financial behavior—such as making appropriate

plans for their expenses and maintaining their financial stability have higher levels

of financial literacy, whereas those who practice negative behavior—such as

heavily relying on credit and loans have lower levels of financial well-being.
 13

Banerjee, et al., (2017) concluded that financial inclusion behavior

increases with the positive effect of financial literacy. Kadoya, et al., (2020) stated

the necessity of financial literacy is conceived because of consumers’ lack of

knowledge and susceptibility to making wrong decisions. Bhushan and Medury

(2014) concluded that in order to enhance the financial literacy level of individual,

government should focus on building positive financial behavior and attitude along

with financial education. The study identified that financial knowledge is an

essential factor to determine financial literacy and investment decisions.

Financial awareness

Being knowledgeable in the entire process is necessary to be able to

provide guidance to others on how to best manage your assets and resources in

any particular investment. According to Mugo (2016), Financial Awareness is an

important aspect of our lives. It helps us to understand how to manage our money

and how to make informed decisions. (Priyadharshini, 2017) the greatest

advantage of financial literacy education is reducing employees’ financial problems

and encouraging them to be responsible for their own financing and both will help

increasing the efficiency of the organization of personal finance.

Bhushan (2019) examined the connection between financial literacy and

investment behavior of the individuals who receive monthly pay from both the

government and non-government job in Himachal Pradesh, India. Bhushan

concluded that high levels of financial literacy created more financial awareness of
 14

the financial products hence were found to be likely to make wiser investment

decisions as compared to their counterpart with low financial literacy.

Financially well-informed people are also more likely to plan for retirement,

and those who do so tend to become wealthier (Lusardi and Mitchell, 2011). The

assessment of different investment opportunity calls for financial education to

understand the role of the parameter (Mugo, 2016). The source of financial

education is therefore essential. Financial awareness focuses on need of financial

education and the source of financial education. Financial education is increasingly

important for all individuals in fact, it is essential for every family trying to balance

its budget, acquire a home, to fund the children’s education and ensuring that there

will be income when parents retire (OECD, 2006).

Investment decision

In this modern era, money plays an important role in one’s life. In order to

overcome the problems in future they have to invest their money (Muthalif and

Munivel, 2018). In investment decisions, investors require some information which

is important factors as the basis in deciding an investment. Investment is defined

as investment activity or activity, while an investor is a person or legal entity with

the money to invest or invest. Investment is the placement of a fund that we have

today, hoping that it will bring benefits in the future (Nguyen et al., 2020).

According to Rusdin (2016), the choice to invest is personal and entirely up

to the individual. As a result, carefully analyze all of the options before making a

decision. Making informed investment decisions requires individual to have a

 15

certain level of financial knowledge in order to comprehend a range of information

to evaluate and track the performance of alternative investment possibilities in the

context of particular investment choice decisions. Individual must assess each

option's investment strategy, portfolio, estimated investment risks, and expected

returns to choose which best matches their risk-return preferences (Gallery, et al.,

2018). People should also be aware of the various cost structures, including

entrance, exit, management, and investment fees, as well as any potential impacts

these fees may have on net returns.

According to Dash (2019) each investment has features like the risk you

must take and the potential return. Future events are unforeseeable, and users

must decide how much risk and be ready to take it because it is associated with

greater returns and risk. For a sound investment decision, the investor needs to

understand completely and correctly the possible opportunities and these

decisions should be made on time. A wrong investment decision can even lead

companies to bankruptcy. It is necessary to understand the basic ideas of

investment decisions to obtain the maximum value from the appraisal process. In

investment evaluation, the indicators should be chosen regarding the specific

nature of the project and the information held by the decision maker (Avram et al.,

2019). The investment decision maker does not always behave in a manner

consistent with the assumptions made according to the perception and

understanding of the information received (Christanti and Mahastanti, 2011). For a

successful investment decision, investors must adapt totally and accurately the

potential chances and these decisions ought not to be made in a surge (Alaaraj
 16

and Bakri 2020). Therefore, having the financial information and ability to make

wise investment decisions is a necessary component of making well-informed

financial decisions.

Benefit

Making investment decisions alone can be a daunting and time-consuming

process filled with doubt. That is why many people choose to work with an

experienced investment manager with knowledge of the financial markets, who

can take the burden of managing your investments from your shoulders Hudiya

(2021). Assessing risk and return, investment decisions inherently involve risks

and rewards. It helps individuals make informed choices by balancing risk and

reward according to their personal circumstances (Lusardi and Mitchell, 2020).

In today's fast-paced and complex financial landscape, financial literacy is

more crucial than ever, especially when it comes to making sound investment

decisions. It empowers individuals to take control of their financial future, make

informed choices, and navigate the investment world with confidence (Hudiya,

2021). Investors look for investments that offer potential for capital appreciation,

allowing investors to grow their wealth over time (Muthalif and Munivel, 2018).

Benefit is one factor that most investors take into account while making

investing decisions (Dash, 2018). For instance, investors primary look for income

generation where certain investments, such as dividend-paying stocks or bonds,

can provide a steady income stream. In other words, investors gauge the
 17

performance of their investment based on individual entry price disregarding

fundamentals or attributes of the investment that may have changed.

Security

Risk is a factor in security investment decisions, and as several researchers

have pointed out, these decisions frequently deviate from the core tenets of

rational choice decision models. In addition to gathering important data required

for the creation of decision aids and decision models, this study makes a

contribution by offering descriptive, behavioral information that aids in the

explanation of information security investment decisions.

According to Zafar and Clark (2019), there has been a significant surge in

interest in IS security research since the early 1990s. Few authors have focused

their attention on the economic implications of security, despite the fact that

security governance, data integrity, privacy, and threat mitigation issues make up

the majority of the literature produced to date (Cavusoglu et al., 2014). In

accordance with, Cavusoglu et al. (2004a), IS security concerns have grown in the

majority of organizations due to increased network interconnectivity, not just those

that compete in high-risk industries.

Researchers have varying opinions about which solution approaches are

best; Cavusoglu, Raghunathan, and Yue (2018) contend that IT security

investments should be handled differently from other types of investments that

organizations make. As stated by, Huang and Behara's (2013) investigation into

the distribution of restricted information security budgets, businesses with little

 18

funds for security would be better off directing most or all of them toward defenses

against a particular kind of attack. Further, the study does not assist practitioners

in measuring the percentage of potential losses that ought to be allocated in order

to protect against such a loss. The decision theory perspective is the prescriptive

approach; it centers on assisting people in making better decisions through the

application of normative models while being cognizant of the underlying

motivations, processes, and mental models that may impact their capacity to make

logical decisions (Edwards et al., 2017).

Correlations between Measures

As Widayat (2019) stated that that investment decisions are influenced by

many preexisting variables, such as financial literacy, demographic aspects, and

individuals. Determining individual investment decisions will be driven by financial

literacy, and this can be seen from how they manage their finances, which will

affect satisfaction in financial management (Baihaqqy et al., 2018). The

researchers also sought to describe how the educational level of investors

influences their understanding of financial literacy and its effect on investment

decision-making in capital markets with the use of a quantitative descriptive

design. The findings of the study reveal that there is a significant correlation

between the investor education level and their understanding of financial literacy

which subsequently influences their financial decisions.

In a related study but with contradictory findings, Hamza and Arif (2019)

examine the impact of financial literacy on investment decisions with the mediating
 19

effect of personality traits based on the big-five model. The study used data

collected from 235 respondents from Karachi with the use of a convenience

sampling technique for analysis. The results of the study reveal that financial

literacy did not have a significant effect on investment decisions through

agreeableness, upright and extraversion. The findings further reveal that financial

literacy has a significant negative impact on investment decisions.

In reality, many studies provide convincing evidence that a large proportion

of the adult population knows little about finance and that many individuals are

unfamiliar with basic economic concepts, such as risk diversification, inflation, and

interest compounding (Jappelli and Padula, 2013). Rational investors will make

decisions based on financial literacy and take relevant information into

consideration; meanwhile, irrational investors make decisions based on good

experiences, especially based on a number of successful past investments that

eventually make them overconfident (Utami and Luciana, 2021). Investment

basically refers to the act of putting certain amount of money in the expectation of

returns in the future. To generate the expected profit, investors need investment

planning to help them make the right decisions (Halim, 2019); planning process

includes such as determining investment objectives, analyzing one or more stocks,

building a stock portfolio, evaluating stock performance and making revision for

stock performance. There is also considerable evidence that financial literacy

affects saving and portfolio decisions. (Rooij et al., 2018) find that financial

sophistication is associated with greater wealth, a higher probability to invest in the

stock market and a higher propensity to plan for retirement.

 20

Synopsis

The study regarding “Influence of Financial Literacy on Investment

Decision”, it has quite a lot of preexisting literature which holds a relation to the

topic of an individual’s research, thesis, or dissertation of topic. In this study, a

review of related literature has a huge impact that encompasses understanding of

financial literacy, financial knowledge, financial behavior, financial awareness, and

investment decision. Since, this study, has gathered information through an excess

of already available studies of various researchers. It also encompasses to widen

our intellectual as individuals’ that through this research study will makes us

knowledgeable, well-informed, and make a good decision that one needs more

influence on financial literacy to acknowledge oneself, especially in terms of

investment decision. Moreover, with the use of review of related literature, in this

study, may collecting information regarding the topic of research title that contains

references to support and prove the concept.

Based upon a review of related literature, it has various term of financial

literacy and that concludes knowledge toward financial aspects. In addition, it

indicates that focus their ability of using their knowledge and even self-confidence

towards their own financial action. Moreover, financial literacy encompasses

knowledge of financial concepts, effective communication, personal financial

management, decisions-making skills, and confidence in planning for future

financial needs (Remund, 2019). For some reasons, the concept of financial

literacy is more than just knowledge, also include attitude, behavior, and abilities
 21

as well. However, a few researchers at a recent time released research on financial

literacy have not accurate defined the term.

Furthermore, the essence of knowing financial literacy and gathering ideas

of other researchers it helps consumers manage money confidently and prepares

them for financial industry challenges. People make many decisions in their daily

lives, some of which are economic or financial aspects. While many researchers

have proposed various approaches to gauge financial literacy, none of them has

recognized as the most effective. However, financial literacy and financial

knowledge have long been related (Van Rooij et al., 2017). Moreover, Howlett et

al (2018) stated that people with financial knowledge are more capable to manage

their finances and more financially literate. In contrast, Rizal, et al., (2022)

suggests that financial literacy is not influenced by financial knowledge. Hence, it

recognizes that, in various financial circumstances, an individual's drive and

confidence are necessary for applying financial knowledge in investment decision-

making.

In today’s world, having money has become essential to one’s existence.

They must invest their money in order to overcome challenges in the future

(Muthalif and Munivel, 2018). In investment decision, investors require timely and

accurate information for making investment decisions. To make sound decisions,

investors must understand the project’s nature and the decision maker’s

information. They should take their time and make accurate adjustments because

a poor choice could lead the company to bankruptcy.

 22

CHAPTER III

METHODOLOGY

Presented in this chapter are the research design, research locale,

population and sample, research instrument, as well as the data gathering

procedure and statistical tools utilized in conducting the study.

Research Design

This study uses a quantitative descriptive and correlational method. A

quantitative method emphasizes objective measurement and statistical,

mathematical, or numerical data analysis collected through a questionnaire

(Connody, 2023). Descriptive research, also called observational, measures,

observes, and describes a subject or a particular problem without manipulating the

variable. Thus, the behavior and condition of the subject remain constant

(Siedlecki, 2020). In this study, the researchers used the non-experimental method

since it does not rely on controlling the variables but on observing how they are

related. It is purely based on observational, and the results are intended to be

purely descriptive.

In addition, researchers also use the correlational method to measure two

variables and assess the statistical relationship of the variables – financial literacy

and investment decisions. To express the relationship between the pair variables,

researchers use linear regression. Devault (2017) stated that linear regression

models show or predict the relationship between two variables or factors. The
 23

predicted factor is called dependent variables, while the factors used to predict the

value of dependent variables are called independent variables. Dependent

variables must be continuous, and the independent variable may be continuous or

categorical (Schneider & Hommel, 2019). The initial analysis of the possible

relationship between the two variables is measured based on a scatter plot. A

scatter plot will determine whether the relationship is linear or non-linear. Thus,

regression will only make sense if the relationship is linear. This chapter presents

the research design, research locale, population and sample, research instrument,

as well as the data gathering procedure and statistical tools utilized in conducting

the study.

Sources of Data

In this study, the researchers used primary and secondary data to gather

information about the study, which consists of two variables: financial literacy and

investment decisions among employees in LGU- City of Mati. Surbhi (2020)

defines primary data as data originated for the first time by the researcher through

direct efforts and experience, specifically to address the research problem.

Researchers used primary data since the data from this study originated from the

researchers through a survey questionnaire. Also, the researcher used secondary

data as researchers got information collected by other researchers and sources.

Moreover, the researchers will use the structured questionnaire as a survey

instrument adapted from Mugo (2016) and Dash (2018) to obtain the pertinent
 24

information from the respondents. This is appropriate for the date will yield

information to answer the research objectives.

Research Locale

This study will be conducted in the City Hall compound, Nazareno Street,

Central City of Mati, where the Local Government Unit of Mati City is located. The

City of Mati is the capital of the province of Davao Oriental. In addition, the City of

Mati is located on the southeastern side of Mindanao, a coastal component city in

the province of Davao Oriental. It serves as the provincial capital and has a land

area of 588.63 square kilometers or 227.27 square miles, accounting for 10.36%

of the entire area of Davao Oriental. The population of the whole area was 147,

547 according to the 2020 census. This represented 25.60% of the total population

of Davao Oriental Province or 2.81% of the overall population of the Davao Region.

These figures compute the population density at 251 inhabitants per square

kilometer or 649 inhabitants per square mile.

The age group with the largest population in Mati City, according to the 2015

Census, is 15 to 19 years old, with 15,787 people. In contrast, the age group with

the lowest population has 1,090 individuals aged 80 and over. The population of

Mati grew from 1,365 in 1903 to 147,547 in 2020, an increase of 146,182 people

over 117 years. The latest census figures 2020 denote a positive growth rate of

0.94%, or an increase of 6,406 people, from the previous population of 141,141 in

2015. The annual regular revenue of Mati for the fiscal year of 2016 was

₱812,896,522.17.
 25

Figure 2. The Research Local of the Study

 26

Respondents of the Study

The respondents of this study were the employees of LGU- City of Mati,

specifically the regular employees of the city. Regular employees performed

activities that were usually necessary or desirable in the usual business or trade

of the employer (Article 295, P.D. 442, Labor Code). The researchers chose the

employees of LGU- City of Mati as respondents since the employees often had a

stable source of income, which allowed researchers to analyze how individuals

with steady earnings managed their finances and made investment decisions. In

addition, the corresponding respondents were easily accessible. In that case, the

mentioned respondents helped provide a comprehensive understanding of how

individuals, specifically regular employees, navigated financial challenges and

planned for their financial futures within the context of stable employment.

Therefore, the respondents could provide accurate information and data regarding

their investment decisions and whether it influenced of financial literacy.

Sampling Technique

In this study, researchers employed the convenience sampling technique

for their sampling. In a convenience sampling method, researchers select

participants based on their accessibility and availability (Fleetwood, 2019). In

addition, this method also is a simple and easy way to get information compared

to other sampling methods. The researchers used this sampling method because

the respondents are accessible to the researchers, who are employees of LGU-

the City of Mati and can be found in their workplace at any time.
 27

The sample size required by the researchers will be determined using Slovin’s

formula.

n- N / (1+Ne²)

Where:

n = Number of samples

N = Total of populations

e = Error tolerance

Sample Size

Using Slovin’s formula, the researchers created a total sample size of 234.

Since the total number of regular employees in LGU- City of Mati was 566, and the

desired margin of error was 5%, researchers came up with the total sample size

mentioned above. The researchers obtained the data precisely the total number of

regular employees of the city by sending a request letter of information to the City

Human Resources Management and Development Office (CHRMDO).

Moreover, the respondents’ participation will be entirely voluntary; hence,

they can withdraw their participation at any time and shall not face penalties due

to withdrawal of participation.

Data Collection Procedure

 28

The collection of data is started in the month of February 2024. In this study,

researchers used primary and secondary data. The data provided by the

respondents was gathered in a structured way. The following are procedure to

gather data:

1. Writing the letter of approval of the signature to request permission to

conduct the study. This guarantees that the study will be conducted ethically

and the respondent’s rights are acknowledged and protected.

2. Ethics approval: where the Institutional Review Board (IRB) must give its

ethics approval before collecting of data.

3. The questionnaires were distributed to the selected respondents in this

study which are the employees of LGU- City of Mati.

4. The data collected in this study will be interpreted and analyzed by using

appropriate method.

5. Describing and summarizing the data.

6. The researcher will report the findings of the study based upon the

information gathered as a result of the methodology applied by the

researchers. The result will be interpreted without manipulation and

arranged in a systematic sequence.

Ethical Consideration

Emphasizing ethical consideration is crucial to conducting the study with

integrity, fairness, and regard for the rights and welfare of all involved participants.

Researchers uphold the principles of ethical inquiry, which are integral to furthering
 29

knowledge. Thus, it's imperative to reflect on various ethical dimensions when

undertaking this study.

Voluntary Participation: The researchers made sure the participant's willingness

to participate in the study was given freely, without any form of compulsion or

promises of rewards that were improbable to materialize.

Privacy and Confidentially: These safety measures safeguard the confidentiality

and privacy of participant information. The researcher maintains the confidentiality

of the study's records to uphold the rights and well-being of participants. Both

parties are provided with a Non-Disclosure Agreement (NDA) by the researcher to

ensure the confidentiality and protect their reputations.

Risk Assessment: It is crucial to evaluate risks, researchers involve assessing

potential harm or adverse effects that participants may encounter as a result of

their involvement in the study. Researchers must consider the vulnerability of

certain populations and take measures to protect their rights and interests.

Conducting a thorough risk assessment helps ensure that ethical guidelines are

followed and that the study is conducted in a manner that minimizes harm to

participants while maximizing the benefits of the research.

Data Treatment

In this study, the researchers engage the following statistical treatments.

Mean. The mean is the average or the most common value in a collection of

numbers (Taylor,2020). This tool is to measure the central tendency of a probability

 30

distribution. Where in this study, it is used to determine the boundary of the

financial literacy and investment decisions among the employees of LGU- City of

Mati.

Mean Score Interpretation

1.00 – 1.80 Very Low

1.81 – 2.60 Low

2.61 – 3.20 Medium

3.21 – 4. High

4.21 -5.00 Very High

Pearson (r). According to Statistic Solution, Pearson is the test statistics that

measures the statistical relationship, or association, between two continuous

variables. It is known as the best method of measuring the association between

variables of interest because it is based on the method of covariance. It gives

information about the magnitude of the association, or correlation, as well as the

direction of the relationship. In this study, this tool will be used to determine the

significant relationship between the boundaries of financial literacy on investment

decision among the employee of LGU- City of Mati.

Regression Analysis. Regression analysis is a set of statistical methods used for

the estimation of relationships between a dependent variable and one or more

independent variables. This tool used for analyzing different factors that might

influence an objective. Whereas, in this study, this tool will be used to measures
 31

the strength of the relationship between of financial literacy on investment decision

among employees of LGU- City of Mati.

5-Point Likert Scale. The Likert scale, in its ultimate form, is a five- or seven-

point scale that people can use to express how strongly they agree or disagree

with a particular statement (Mcleod, 2023). This tool will be used to measures

subjective psychological attitudes and opinions of the employees of LGU- City of

Mati regarding the influence of financial literacy on investment decision.

Range Description

4.20-5.00 Strongly Agree

3.41-4.20 Agree

2.61-3.40 Neutral

1.81-2.60 Disagree

1-1.80 Strongly Disagree

 32

CHAPTER IV

RESULT AND DISCUSSION

This chapter presents the results of primary data collected through adapted

questionnaires from Mugo (2016) among the LGU- City of Mati employees. Data

analysis was carried out according to the study objectives from which data were

examined, interpretations done, and conclusions were drawn. The chapter is

organized as follows: level of financial literacy in terms of financial knowledge,

financial behavior, financial awareness, level of investment decisions regarding

benefit and security, the relationship between financial literacy and investment

decisions, and influence of financial literacy on investment decisions.

Level of Financial Literacy in terms of Financial Knowledge

Table 1 presented the results of a study on financial literacy in terms of

financial knowledge among employees of LGU-City of Mati, Davao Oriental. The

study aimed to assess the level of financial knowledge among the participants and

its potential influence on their investment decisions.

Based on the table, it can be observed that the respondents generally

demonstrated a moderate to high level of financial literacy, as indicated by their

agreement with statements related to investment knowledge. The mean scores for

each statement range from 3.76 to 3.87, with an overall weighted mean of 3.82,

indicating a high-level perception of financial knowledge among the respondents.

 33

Moreover, these findings suggest that the participants have a good

understanding of basic investment concepts such as the relationship between

interest rates and bond prices, the risk associated with different types of

investments, and the importance of diversification in reducing investment risk.

These results are supported with previous study indicating that individuals with

higher levels of financial literacy are more likely to make informed investment

decisions (Lioudos, N., 2022).

Nevertheless, in the context of employees of LGU-City of Mati, Davao

Oriental, these findings have important implications for financial education

programs and initiatives aimed at improving the financial well-being of employees.

By enhancing financial literacy among employees, organizations can empower

individuals to make better-informed decisions about their investments, ultimately

leading to improved financial outcomes and greater financial security

(Cayangcang, M., Salvaña, Q., et.al, 2023).

Level of Financial Literacy in terms of Financial Behavior

Table 2 presents the financial literacy of respondents in terms of their

financial behavior. It covers areas such as budgeting, debt management, record-

keeping, and saving habits, with the standard deviation indicating the variability of

responses and the mean scored 3.90 reflecting the high level of interpretation.

Moreover, in the study on the impact of financial literacy on investment

decisions among LGU-City of Mati, Davao Oriental employees, the findings

suggest generally positive financial behaviors.

 34

Table 4.1. Financial Literacy in terms of Financial Knowledge.

Statement Standar Mean Descripti Interpret

d ve Level ation

Deviatio

Usually buys a company stock High

0.99 3.85 Agree
that provides a safer return than
stock mutual fund.
When interest rate rises the 0.95 3.76 Agree High
bond price falls
Company stocks are riskier than 0.85 3.85 Agree High
bonds
Bonds compared to savings High
accounts and stocks considering 0.82 3.87 Agree
a long investment period give
highest interest return.
When investors spread their High
money 0.87 3.81 Agree
among different assets the risk
of losing money decreases.
Imagine that the interest rate on High
your investment account was
1% and inflation was 2%. To
what extent do you agree that 0.85 3.82 Agree
the goods and services that you
would be able to buy with the
money in this account after one
year would be less than today.
To what extent do you agree that High
buying single company stock
0.93 3.76 Agree
usually provides a safer return
than a stock mutual fund.

Overall Weighted Mean 0.89 3.82 Agree High

 35

Respondents maintain personal budgets, have consistent household

incomes, and prioritize financial record-keeping. They also demonstrate

responsible borrowing and saving habits, indicating a relatively good level of

financial literacy among them (Kumari, D., 2020).

Furthermore, it implies that the employees of LGU-City of Mati, Davao

Oriental, are likely to make informed investment decisions due to their financial

literacy. However, it's important to consider other factors such as risk tolerance,

investment knowledge, and personal financial goals, as they also influence

investment decisions alongside financial literacy based on the result (Cayangcang,

M., Salvaña, Q., et.al, 2023).

Level of Financial Literacy in terms of Financial Awareness

Table 3 shows financial literacy in terms of financial awareness among

employees of LGU-City of Mati, Davao Oriental, the overall weighted mean scores

3.08 which indicates moderate level of interpretation. The table reveals a neutral

stance towards the importance of financial education and its integration into the

school curriculum. Family members or relatives are highly trusted as reliable

sources of financial advice, with unanimous agreement among respondents.

Similarly, colleagues or friends are viewed positively as sources of financial advice.

However, financial consultants are perceived less positively, with disagreement

regarding their reliability as sources of financial advice. Consequently, while family

members, relatives, and friends are highly trusted sources of financial advice,

there's less confidence in the reliability of financial consultants.

 36

Table 4.2. Financial Literacy in terms of Financial Behavior.

Statement Standard Mean Descriptive Interpretation

Deviation Level

I have a personal budget. 0.77 4.19 Agree High

My household income High

0.92 3.91 Agree
each month is regular and
reliable.
I currently owe money to a High
1.10 3.65 Agree
friend or a family member
as a loan.
I currently owe money on 1.20 3.49 Agree High
my credit card.
Maintaining adequate 0.73 4.05 Agree High
financial records
Spending less than income 0.77 3.99 Agree High
regularly
Avoid borrowing to balance 0.84 4.01 Agree High
personal budget
Striving to save even in 0.82 3.93 Agree High
difficult circumstances
Overall Weighted Mean 0.89 3.90 Agree High

To address the lack of confidence in financial consultants, efforts should be

made to educate employees about the role and benefits of seeking professional

financial advice. This could involve organizing seminars or workshops to demystify

financial planning and highlight the value that qualified consultants can bring to

personal financial management. This suggests a potential lack of awareness or

understanding among the respondents regarding the significance of financial

literacy in influencing investment decisions. To address this, there is a clear need

for targeted financial literacy programs within the organization or community to

raise awareness and provide education on financial management.

 37

Anent to, it consistently shown that financial literacy is essential for

individuals to make informed financial decisions, particularly regarding

investments. Studies by Lusardi and Mitchell (2014) and Hastings and Mitchell

(2011) have demonstrated that individuals with higher levels of financial literacy

are more likely to engage in retirement planning and investment activities, leading

to improved financial behavior and outcomes.

Moreover, on findings the LGU-City of Mati has an opportunity to implement

tailored financial education initiatives for its employees. By offering workshops,

seminars, or online resources focused on enhancing financial literacy, the LGU can

empower its employees to make more informed investment decisions, ultimately

contributing to their financial well-being and the overall socio-economic

development of the municipality (NEDA, 2018).

Table 4.3. Financial Literacy in terms of Financial Awareness.

Statement Standard Mean Descriptive Interpretati

Deviation Level on
The need for financial education 1.43 3.23 Neutral Moderate
Financial Education introduce in Moderate
1.37 3.18 Neutral
school curriculum
Accountant 1.28 2.35 Neutral Moderate
Financial planner 1.01 2.22 Neutral Moderate
Family member or relatives 1.45 3.25 Neutral Moderate
Colleagues or friends 0.71 4.16 Agree Moderate
Financial consultants 1.01 2.22 Disagree Moderate
1Teachers/Instructor 0 4 Agree Moderate
Overall Weighted Mean 1.03 3.08 Neutral Moderate
 38

Level of Investment Decision in terms of Benefit

The table 4 shows the result on the investment decisions of employees from

the LGU-City of Mati, Davao Oriental, focusing on benefit statements and their

corresponding statistical measures. Notably, the high overall weighted mean of

3.93 values indicates a consensus among respondents regarding the importance

of tax benefits, risk coverage, and wealth preservation in investment choices. This

suggests a strong agreement among employees on the significance of these

factors in shaping their investment decisions.

Anent to, financial literacy emerges as a pivotal factor influencing

investment decision-making. Employees with a deeper understanding of financial

concepts are better equipped to assess the potential benefits and risks associated

with various investment options. Consequently, they are more likely to make

informed and rational decisions regarding their investments, thereby enhancing

their overall financial well-being (Lusardi, A., 2019).

Moreover, studies support the positive correlation between financial literacy

and investment decision-making. For instance, research by Lusardi and Mitchell

(2011) found that individuals with higher financial literacy levels tended to engage

more actively in retirement planning and stock investments. Similarly, Fernandes

et al. (2014) demonstrated a strong link between financial literacy and investment

diversification, as well as retirement preparation.

In addition, the importance of financial literacy, interventions such as

educational programs and workshops can play a crucial role in enhancing

employees' financial understanding. By providing employees with the necessary

 39

knowledge and skills to comprehend concepts like tax benefits, risk management,

and wealth preservation, organizations can empower them to make better-

informed investment choices aligned with their long-term financial goals.

Ultimately, the findings underscore the significance of promoting financial

education as a means to empower individuals and improve their financial decision-

making abilities (Michuad, P., 2017).

Table 4.4. Investment Decision in terms of Benefit

Statement Standard Mean Descriptive Interpretation

Deviation Level

I invest to take advantage of 0.80 3.86 Agree High

tax benefits.
Risk coverage is reason for 0.77 3.95 Agree High
investment.
I invest to preserve my 0.82 3.97 Agree High
wealth.
Overall Weighted Mean 0.80 3.93 Agree High

Level of Investment Decision in terms of Security

The table 5 presents the influence of financial literacy on investment

decisions among employees of LGU-City of Mati, Davao Oriental, providing

valuable insights into how individuals make investment decisions, particularly in

terms of security. The mean scores for each statement range from 4.15 to 4.22,

with an overall weighted mean of 4.18, and the descriptive level of “agree,” which

indicates a high level of interpretation. The findings suggest that individuals who
 40

are financially literate are more likely to prioritize investments that contribute to

meeting their family needs, emergency needs, and overall safety and security.

Moreover, financial literacy plays a crucial role in shaping individuals'

investment decisions. When people have a better understanding of financial

concepts such as risk management, diversification, and long-term planning, they

are more likely to make informed decisions that align with their goals and

preferences. In this study, the employees of LGU-City of Mati, Davao Oriental, who

exhibit higher levels of financial literacy, are inclined to invest in ways that provide

security for themselves and their families (Lusardi, A., 2019).

Furthermore, the idea that financial literacy positively influences investment

decisions. For example, research has shown that individuals with higher levels of

financial literacy are more likely to engage in retirement planning, invest in diverse

assets, and adopt strategies to mitigate financial risks (Lusardi and Mitchell, 2014;

Hastings et al., 2013). Moreover, studies have also found that financial literacy is

positively correlated with wealth accumulation and financial well-being (Behrman

et al., 2012; van Rooij et al., 2011).

Overall, the findings of the study underscore the importance of promoting

financial literacy among employees, especially in the context of making investment

decisions. By enhancing financial literacy through education and training

programs, organizations like LGU-City of Mati can empower their employees to

make more informed and secure investment choices, ultimately contributing to

their financial stability and well-being.

 41

Table 4.5. Investment Decision in terms of Security

Statement Standard Mean Descriptive Interpretation

Deviation Level

I invest to meet my family 0.71 4.15 High

Agree
needs in future.

I invest to meet 0.71 4.16 High

Agree
emergency needs.

I invest to live a safe and 0.68 4.22 Strongly High

secure life. Agree

Overall Weighted Mean 0.70 4.18 Agree High

Relationship Between Financial Literacy and Investment Decision

The study on the influence of financial literacy on investment decisions

among employees of LGU-City of Mati, Davao Oriental, reveals significant

correlations between financial literacy and investment decisions. Therefore, it

elucidated that there is significant influence of financial literacy on investment

decisions. Hence, Ha was accepted and Ho is rejected.

Thus, the study found a positive and significant correlation between

financial knowledge and investment decisions. This implies that individuals with

higher levels of financial knowledge are more likely to make informed investment

decisions, which has consistently shown that individuals with greater financial
 42

knowledge tend to exhibit better investment behavior and outcomes (Kumari, D.,

2020).

Similarly, the study found a strong positive correlation between financial

behavior and investment decisions. This suggests that individuals who

demonstrate responsible financial behavior, such as budgeting, saving, and

avoiding debt, are also more likely to make prudent investment decisions. Thus,

with the idea that financial discipline and good money management skills are

closely linked to investment success (Dwiastanti. A., 2015).

However, the study found a weaker correlation between financial

awareness and investment decisions. While financial awareness alone may not

directly impact investment decisions, it is still an important component of overall

financial literacy. Financial awareness includes understanding basic financial

concepts, such as inflation, interest rates, and investment options, which can

ultimately contribute to more informed investment decisions over time (Kumari, D.,

2020).

Overall, the study underscores the importance of financial literacy in

influencing investment decisions. By improving financial knowledge and fostering

responsible financial behavior, individuals can enhance their ability to make sound

investment choices and ultimately achieve their financial goals. This highlights the

need for educational initiatives and resources aimed at promoting financial literacy

among employees and the broader population (Lusardi, A., 2019).

 43

Table 4.6. Relationship between financial Literacy and Investment

Decisions

Investment Decisions
Financial Literacy
Benefits Security

Pearson
.482** .257**
Correlation
Financial Knowledge
Sig. (2-tailed) .000 .000

N 234 234

Pearson
.585** .444**
Correlation

Financial Behavior
Sig. (2-tailed) .000 .000

N 234 234

Pearson
.059 .171**
Correlation

Financial Awareness
Sig. (2-tailed) .373 .009

N 234 234

**. Correlation is significant at the 0.01 level (2-tailed).

 44

Influence of Financial Literacy on Investment Decisions

In table 4.6, it also showed the findings of the study highlight the significant

influence of financial behavior on investment decisions among employees of LGU-

City of Mati, Davao Oriental. With a Pearson correlation coefficient of .585** for

benefits and .444** for security, financial behavior emerges as the most influential

factor shaping investment decisions. This strong positive correlation suggests that

individuals who exhibit responsible financial behavior, such as prudent budgeting,

disciplined saving, and avoidance of excessive debt, are more likely to make

informed investment choices that align with their financial goals and objectives.

Thus, these findings demonstrating the critical role of financial behavior in

driving investment decisions. For instance, a study by Lusardi and Mitchell (2014)

found that individuals who engage in proactive financial management practices,

such as regularly monitoring their finances and adhering to a budget, tend to have

better investment outcomes and overall financial well-being. Similarly, research by

Fernandes et al. (2014) revealed that individuals who exhibit higher levels of

financial discipline and self-control are more likely to make rational investment

decisions, leading to greater wealth accumulation over time.

Moreover, the significant influence of financial behavior on investment

decisions can be attributed to its role in shaping individuals' attitudes and habits

towards money management. By cultivating responsible financial behaviors,

individuals develop a heightened sense of financial awareness, which enables

them to evaluate investment opportunities more effectively and mitigate risks

 45

associated with their investment portfolios. Moreover, individuals with strong

financial behavior are better equipped to resist impulsive financial decisions and

withstand market volatility, thereby enhancing the long-term sustainability of their

investment strategies (Dwiastanti. A., 2015)

In conclusion, the study underscores the importance of promoting positive

financial behavior among employees as a means of empowering them to make

informed and prudent investment decisions. By fostering a culture of financial

responsibility and providing educational resources aimed at enhancing financial

literacy and behavior, organizations can empower employees to achieve their

financial goals and build a secure financial future (Potrich, A., Vieira, K., et.al.,

2016).
 46

CHAPTER V

SUMMARY, CONCLUSION AND RECOMMENDATION

This chapter summarizes and presents the research findings. It has been

organized to summarize the study findings, conclusions, and recommendations.

Summary

The primary purpose of this study was to examine the influence of financial

literacy on investment decisions among employees in LGU- City of Mati, Davao

Oriental. The study was hinged on three questions that sought to examine the

influence of financial knowledge, financial behavior, and financial awareness on

investment decisions. The dual process theory and theory of reasoned behavior

guided the study. The study adopted a descriptive research design and a

correlational method. Convenience sampling techniques were used to select 234

respondents who are regular employees of LGU- City of Mati.

The study investigated the level of financial literacy among employees of

LGU-City of Mati, Davao Oriental, focusing on financial knowledge, behavior, and

awareness, as well as its influence on investment decisions. Data was collected

using adapted questionnaires, and analysis was conducted to assess the

respondents' perceptions and practices regarding financial matters.

Results revealed that the LGU- City of Mati regular employees generally

demonstrated a moderate to high level of financial literacy, particularly regarding

investment knowledge and behavior. The employees understood basic financial

 47

concepts and exhibited responsible financial practices such as budgeting, saving,

and avoiding excessive debt. However, there was an overall neutral stance

towards financial awareness, indicating a potential lack of financial awareness in

this area.

Furthermore, the study found significant correlations between financial

literacy and investment decisions, with financial behavior emerging as the most

influential factor, with a Pearson correlation coefficient of .585** for benefits and

.444** for security. Individuals with higher financial knowledge and responsible

financial behavior were likelier to make informed investment choices aligned with

their financial goals and objectives. However, the correlation between financial

awareness and investment decisions was weaker, suggesting further education

and awareness campaigns were needed to enhance overall financial literacy.

Conclusion

In conclusion, the study highlights the importance of promoting financial

literacy among employees, particularly in the context of making informed

investment decisions. The findings suggest that enhancing financial knowledge

and fostering responsible behavior can empower individuals to achieve better

financial outcomes and build a secure financial future.

Organizations like LGU-City of Mati have an opportunity to implement

tailored financial education initiatives for their employees, including workshops,

seminars, and online resources. By providing the necessary knowledge and skills

to comprehend financial concepts and practices, organizations can empower their

 48

employees to make more informed investment choices, ultimately contributing to

their financial stability and well-being.

Additionally, the study emphasizes the critical role of financial behavior in

driving investment decisions. Cultivating responsible financial knowledge and

behavior toward money management can help individuals evaluate investment

decisions effectively, mitigate risks, and achieve their financial goals over the long

term.

The findings underscore the significance of promoting financial literacy and

behavior as essential components of individual financial empowerment and socio-

economic development. By investing in financial education and awareness

programs, organizations and communities can empower individuals to take control

of their finances and work towards a more secure and prosperous future.

Recommendation

Based on the findings, the financial awareness of the employees reveals a

neutral stand. To address this, organizations should implement comprehensive

financial education programs tailored to employees' needs and preferences,

including workshops, seminars, and online resources. Collaborate with financial

institutions, educational institutions, and community organizations to expand

access to financial literacy resources and support initiatives to improve financial

well-being. Organization should also promote awareness of financial consultant,

to educate employees about the role, benefits, and importance of seeking

 49

professional financial advice. Integrate financial literacy into employee training and

development programs to ensure ongoing learning and skill development.

For future researchers, the current study focuses only on examining the

financial literacy of investment decisions among employees of LGU- City of Mati.

There is a need for a similar study to be carried out but with an enormous scope,

not just limiting a specific organization. In addition, conduct further studies to

explore the effectiveness of specific financial education programs and initiatives in

improving employee financial literacy.