Financial Literacy Practices on the Investment Decisions of Accounting Professionals in Makati City

Abstract

Financial literacy provides individuals with the means to assess the potential risks linked with various investment options enabling investors to make educated decisions. Therefore, the objective of this research is to identify the financial literacy practices adopted by accounting professionals and determine the level of influence of these financial literacy practices on the investment decisions of the respondents. This research applied a quantitative research methodology with convenient selection of participants. The respondents consisted of Eighty (80) accounting professionals of selected firms in Makati City. A self-made survey questionnaire was utilized in gathering data on the demographics of respondents and the degree to which financial literacy practices influenced their investment decisions. Thus, the data collected from the survey questionnaire underwent analysis and interpretation utilizing interval data measurement on a Four-point Likert scale. The findings of this research highlighted that there exist a statistically significant correlation between budgeting (r=0.924, p=0.001), saving and investing (r=0.970, p<0.001), and debt management (r=0.919, p=0.001) on investment decisions of accounting professionals. Notably, saving and investing as financial literacy practices can be positively associated with investment decisions. When budgeting, it is crucial to assess whether significant purchases align with your needs and fit within your financial capabilities. Thus, the fact that the respondents tend to prioritize avoiding new debts emphasizes how important it is to manage debts responsibly when making investment decisions.