A Study on Financial Literacy and Financial Behavior of Young Professionals in Metro Manila

Abstract

Understanding the determinants of financial behavior and financial literacy affects people in many different aspects and the understanding of them may help in leading towards better lives. Due to this, a study was conducted on young professionals residing within the Metro Manila area in order to assess their financial literacy and financial behavior through the utilization of a survey-questionnaire developed by the researchers. This study aims to determine the direction and the strength of the relationship that exists between financial literacy and financial behavior amongst the sample population. The regression concludes that financial literacy has a significant influence on financial development and financial well-being. Moreover, capability and utilization of money are two determinants that influence financial literacy of young professionals. There is no significant influence of utilization of money found on financial literacy.