Personal Financial Management Practices of Bank Employees: Basis for Financial Literacy Enhancement

This study aimed to determine the bank employees’ personal financial management practices as basis for financial literacy enhancement. A descriptive method of statistics was used to determine the bank employees’ psychographic profile in terms of different financial products or services availed, financial literacy assessment according to basic numeracy and interest computing, inflation, and risk diversification. It also tests the respondents’ personal financial management practices based on savings, investment, consumption, debt management, retirement, health and insurance, and money management. Results showed that bank employees have availed different financial services and products including bank accounts, credit cards, investments, insurance, and loans. Bank employees have perceived high financial literacy assessment and it has a significant difference when grouped according to profile. Bank employees often practice personal financial management practices, with the exception on investment practices. Significant relationship exists between financial literacy knowledge and personal financial management practices except for bank employees’ money management, and a strong correlation between financial literacy and personal financial management practices exists, except consumption practices and money management. Several action plans were proposed especially to the mathematical concept of basic numeracy and interest computing, hyperinflation, and portfolio management for bank employees to enhance bank employees’ financial literacy knowledge. This study may provide awareness to different public or private financial institutions and government on enhancing the financial literacy of Filipino people.

Keywords: Bank employees, Financial literacy, Personal financial management practices