College students take a lot of time to successfully manage their personal finance. The ability to manage personal finances has become very important in our world today. Hira (2009) states that financial education is much demand in a wide range of entities including banking companies, government agencies and community interest groups, universities, schools and other organization. It measures the capacity of the individual on how to cope a problem related to personal finance.
This study was designed to evaluate the financial management skills regarding on handling their personal finances. In this study, a test of the skills of financial management students was examined. The survey will be conducted on De La Salle Lipa students. It covers advantages of money management of college students, steps in managing personal finance, studies in other countries regarding the finance of college students and lastly, women and men regarding on handling their personal finances. This shows that having knowledge about their personal finance is important. This will prove that having less knowledge regarding this tends to make incorrect decisions like their savings. This study will determine the student if they will be a good financial decision maker.
The purpose of this research is to know what the financial management skills are applying by the first year students that help them in the near future. More literate on this topic could prove useful to become a good decision maker in handling money that is one of the qualities of financial management students.
This paper was based on a study conducted by Adams & Moore in 2000, Avara, Manton, English & Walker in 2005 and Chen & Volpe in 1998. The focus of their study was on how the college students handle their money without much exposure to financial education. The researchers conclude that many students are not knowledgeable enough on handling their personal finances and need more than information to manage their money. According to Bandura (1982), knowledge of a specific content area is important in determining one’s perceived ability to cope with a situation. Students that are literate have an ability to easily cope to the situation.
In a recent study conducted by Mandel (1997) an average correct score of 57% in the areas of income, financial management, savings and investment and spending. His conclusion is that students are leaving schools without the ability to make critical decisions affecting their lives. According to Chen & Volpe (1998) the overall mean of correct answers for the survey is about 53%. The results suggest that college students need to improve their knowledge of personal finance. Princeton Survey Research (1997) surveys 1,770 households nationwide on their financial knowledge and find an average correct score of 42%. This result shows that household financial decision makers do not have a good grasp of basic finance concept. In another study of 522 adult women, 56% are found not very...