NON-INTEGRATION OF FINANCIAL LITERACY IN ABM: EXPLORING

IMPACT ON SENIOR HIGH SCHOOL STUDENTS’ FINANCIAL SKILLS

Presented to:

Abegail D. Labiao

Faculty Member

Antique National School

In Partial Fulfillment of the Requirements in

Reading & Writing: Review of Related Literature

Presented By:

Group 2 11 ABM-Musk

Justine Lee Suño Jamaica Micaella Diaresco

Aracele Marie Francisco Marielle Mendoza

Ella Samantha Yuro Richcel Ciriaco

Erica Rose Millamena Shyla Eunice

2023
 Review of related literature

In this section, we will provide a brief introduction to the literature review, setting the

context for the review and highlighting its significance.

In this study we intend to carry out an incisive evaluation of available research and

relevant material concerning the teaching of financial knowledge. The investigation will be

focused especially on its incorporation into the Accountancy, Business & Management

(ABM) course offered at senior high school level. Given that this program concentrates

heavily on business-related themes along with managerial concepts it undoubtedly offers a

fantastic medium through which essential money-management skills may be taught.

However, some reservations have been expressed over how fully incorporated they currently

are- any deficit might leave students less-than adequately prepared for real-world monetary

situations. Educators face numerous challenges integrating financial literacy into the ABM

curriculum. This literature review examines those difficulties as well as effective strategies

and recommendations to enhance such education among senior high schools. To achieve our

aims, we have analyzed extensive research regarding these topics with a view to identifying

gaps or inconsistencies that require exploring further. We believe that this analysis will

contribute towards developing innovative initiatives aimed at improving delivery of

comprehensive evidence-based policies for enhancing Financial Literacy Education targeting

SHS students mitigating future uncertainties associated with finances in life. This literature

review serves as the foundation for our study by giving us an all-encompassing understanding

of existing knowledge, theories as well as best practices concerning integrating financial

literacy into ABM education. This underscores why providing financial literacy education is

crucial while emphatically emphasizing that exploring its integration in ABM tracks is much

needed.
Measuring Financial Literacy. A study was done last 2011 namely; Financial Literacy

Around the World: An Overview by Lusardi, A., & Mitchell, O. S. (2011), concludes that

financial literacy is low worldwide, regardless of financial market development or pension

type. It states that market changes have not significantly improved financial knowledge,

indicating limitations in learning from personal financial experiences, and gender and age

differences are observed, with women generally having less financial knowledge than men.

According to Lusardi and Mitchell (2014), financial literacy is low among the young. In a

study conducted by the US National Financial Capability Study in 2015, only 13% of the

respondents between: the age of 18-24 correctly answered all the Big Three Questions, as

shown from this figure:

(Finan

c ial

literacy across age in the USA. This figure shows the percentage of respondents who

answered correctly all Big Three questions by age group.) (National Financial Capability

Study, 2015)

The Big Three Questions:

1) Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5

years, how much do you think you would have in the account if you left the money to grow?
2) Imagine that the interest rate on your savings account was 1% per year and inflation was

2% per year. After 1 year, how much would you be able to buy with the money in this

account?

3) Please tell me whether this statement is true or false. “Buying a single company’s stock

usually provides a safer return than a stock mutual fund.”

Source: Lusardi and Mitchell (2011b)

In another study which was conducted by Opoku, A. (2016), assesses the level of financial

literacy of Senior High School students in the Kumasi Metropolis in Ghana. Findings from

his study revealed that students need to improve their personal finance knowledge. The

results show that 320 students answered about 48.7% of the questions correctly. The

results also reveal that many of the students are seen to be familiar with issues relating

to simple interest, compounding and loan guarantee. In contrast, the students are less

knowledgeable and inexperienced with issues concerning personal financial planning,

budgeting and overdraft. The incompetency exhibited by the senior high school

students therefore limits their ability to make sound financial decisions and hence

more likely to have financial related issues in the real world. The low level of

financial literacy could also make small financial issues become overwhelming which

could turn into financial stress and consequently affects the other aspects of live such

as personal relationships or performance at work. The low level of financial literacy

and its consequences then shows the need for stakeholders in educational system to

put policies in place to ensure that the level of financial literacy among senior high
students in Ghana is improved since financial literacy has essential implication for

future behavior. It is recommended that personal finance literacy course is well

elaborated in the academic curriculum of senior high schools. Also, the national

financial literacy week should be extended to school as workshops to encourage

students’ participation in financial literacy.

Difficulties faced by educators in implementing financial literacy education. A critical

challenge faced by educators, community leaders and policy makers is to bring financial

literacy and consumer education effectively to their constituencies. While most would agree

that improved financial literacy is needed, identifying what attributes make an education

program most beneficial to consumers is less certain. For example, would seminars be a more

effective way to share information or would informational brochures and materials suffice?

Should financial literacy programs be targeted to all consumers or should they be primarily

targeted to students, lower-income individuals or other uniquely selected consumers? Should

different programs be created for each consumer group targeted? Or does one program fit all?

Who should provide or offer these programs? Finally, what resources are available to help

finance or implement these financial literacy programs? (Toussaint-Comeau & Rhine, 2000).

In a recent study conducted in 2022 in the Philippines titled 'Integrating Financial Literacy

into the K-12 Curriculum: Teachers' and School Leaders' Experience' by Barrot et al. (2022)

the examination of financial literacy education (FLE) implementation at the school and

classroom levels was explored. The study concluded that (1) teachers' implementation in the

classroom was influenced by various learner, learning, and contextual factors, and (2) school

leaders faced significant implementation challenges related to staff development,

instructional supervision, administration, and leadership functions, despite recognizing the

(2017), which suggests the need to educate teachers to reflect upon the knowledge, skills, and

capabilities required to make informed financial decisions, identify and interpret the

possibilities for financial literacy teaching, and enact sophisticated pedagogical practices.

Effective strategies and recommendations to integrate financial literacy. In today's

complex and ever-changing financial landscape, the need for individuals to possess strong

financial literacy skills has become paramount. Recognizing the significance of integrating

financial literacy into education, researchers, policymakers, and educators have explored

diverse strategies and recommendations to enhance financial literacy levels among

individuals of all backgrounds. In a study conducted by Toussaint-Comeau & Rhine (2000),

information seminars and information pamphlets/books are effective strategies in delivering

financial literacy education. Seminars in an informal atmosphere may be preferred, and as a

consequence, better attended. In general, individuals might feel less intimidated when

attending seminars at locations often frequented such as community centers, churches, places

of employment, day-care centers, local K-12 schools, community colleges, recreation centers,

and local business establishments. Presenters who are culturally or ethnically/racially similar

to the audience will be better able to connect with the participants. On the other hand,

distributing pamphlets is a quick way to disseminate information to a large audience.

However, pamphlets are most effective when given as part of a seminar or a training

program, with readers having an opportunity to have information in the pamphlets elaborated

upon by the financial educator or counselor. It is important that the written educational

materials be attractive, engaging, and easy to follow. In another study by Koh, N.K. (2016), 3

effective approaches to teaching financial literacy in schools are through partnerships with

educational institutions, development of scalable programmes through gamification, and ICT-

development and programme implementation that have been informed by the latest research

findings in the field of financial literacy education. These strategies and methods can be

implemented in the senior high school curriculum. These strategies and methods offer

valuable insights for integrating financial literacy into the senior high school curriculum. By

establishing partnerships with educational institutions, schools can leverage the expertise and

resources of external organizations to enhance the delivery of financial literacy education.

Additionally, the development of scalable programs through gamification can make learning

about personal finance engaging, accessible, and adaptable to a larger student population.

Furthermore, leveraging Information and Communication Technology (ICT)-enabled

learning approaches can provide students with interactive tools, online resources, and real-

time financial simulations to reinforce their financial knowledge and skills. By embracing

these evidence-based approaches and continually staying abreast of emerging research,

educators and policymakers can effectively equip students with the essential financial literacy

skills needed to navigate the complexities of the modern financial landscape.

The Effects of Financial Education on the Financial Knowledge of Students. A well-

specified and properly implemented program in financial education can positively and

significantly influence the financial knowledge of high school students (Walstad, W. B. et al.,

2010). In a study conducted by Jonubi, A., & Abad, S. (2013), results of a probit regression

revealed that the level of financial literacy had a significant, positive impact on individual

saving. Another study by Zulaihati, S., Susanti, S & Widyastuti, U. (2020) support these

statements by concluding that financial literacy had a significant impact on financial behavior

in terms of saving behavior, shopping behavior, short-term planning and long-term planning.

These statements are further supported by Wagner, J. F. (2015) from his research titled; An
analysis of the effects of financial education on financial literacy and financial behaviors

where he concluded that financial education has benefits, particularly for individuals with

low levels of financial literacy, and that it has the strongest positive relationship with

financial literacy and long-term financial behaviors. The study considers seven categories,

including senior high school, where it showed the positive impacts of financial education on

short-term and long-term behaviors. Financial education shows positive effects on short-term

behaviors for individuals with low education and income, suggesting its effectiveness in

teaching fundamental financial skills. On the other hand, financial education appears to have

a positive effect on long-term behaviors, which lack immediate feedback and are less

susceptible to experiential learning. Hence, highlighting the importance of financial education

on the students’ financial literacy skills.

The present literature highlights that worldwide levels of financial literacy remain low

despite changes in market patterns. Studies indicate underlying gender- and age-based

disparities persisting across populations. Within Ghana specifically, reports demonstrate

deficiencies in senior high school students' understanding of finance related topics -

particularly personal finance management. Despite recognizing these concerns educators

must overcome various obstacles; such challenges include choosing effective delivery

methods for teaching material while accounting for target audience demographics or

contemplating resource availability limitations. Moreover, variables ranging from teacher

investment within classroom settings to adequate school leadership support may influence

program implementation efficacy. Thus, incorporating engaging strategies such as culturally

appropriate seminars located nearby paired with attractive educational materials generated via

partnerships between institutions become essential methods for achieving optimal learning

experiences while utilizing gamification or ICT-enablement tactics generate further exposure

when targeting wider student populations beyond only traditional learners. High school-based

financial literacy programs have shown affirmative effects on students' financial behaviors

and knowledge, however, information regarding the impact of non-integrating financial

literacy within vocational track programs for Accountancy, Business, and Management

(ABM) students still represents an unresolved gap in current research. Therefore, calls for

further exploration remain crucial for the education of tomorrow's leaders.

Barrot, J. S., Gonzales, J. M., Eniego, A. A., Salipande, A. L., & Olegario, M. L. G. (2022).

Integrating financial literacy into the K-12 curriculum: Teachers’ and school leaders’

experience. The Asia-Pacific Education Researcher, 1-9.

Binobo et al. (2019, April). Level of Financial Literacy of Senior High School Students from

Private Schools of Bacolod City. [Link]

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Definition of non-integration. (n.d.) In Wordhippo.

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Jonubi, A., & Abad, S. (2013). The impact of financial literacy on individual saving: An

exploratory study in the Malaysian context. Transformations in Business &

economics, 12(1), 28.

Koh, N. K. (2016). Approaches to teaching financial literacy: Evidence-based practices in

Singapore schools. International handbook of financial literacy, 499-513.

Lusardi, A. (2019). Financial literacy and the need for financial education: evidence and

implications. Swiss Journal of Economics and Statistics, 155(1), 1-8. Sawatzki, C., &

Sullivan, P. (2017). Teachers’ perceptions of financial literacy and the implications

for professional learning. Australian Journal of Teacher Education (Online), 42(5),

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Lusardi, A., & Mitchell, O. S. (2011). Financial Literacy Around the World: An Overview.

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National Institutes of Health [NIH]. (n.d.). Definition of Financial Acumen.

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%20direct%20organizational%20actions.

Opoku, A. (2016). Financial literacy among senior high school students evidence from

Ghana (Doctoral dissertation).

Toussaint-Comeau, M., & Rhine, S. L. (2000). Delivery of financial literacy programs.

Federal Reserve Bank of Chicago.

Walstad, W. B., Rebeck, K., & MacDonald, R. A. (2010). The effects of financial education

on the financial knowledge of high school students. Journal of consumer

Affairs, 44(2), 336-357.

Wagner, J. F. (2015). An analysis of the effects of financial education on financial literacy

and financial behaviors. The University of Nebraska-Lincoln.

Zulaihati, S., Susanti, S & Widyastuti, U. (2020). Teachers’ financial literacy: Does it impact

on financial behaviour? Management Science Letters, 10(3), 653-658.