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FINANCIAL INTELLIGENCE AND LIFESTYLE OF HIGH SCHOOL

TEACHERS IN SELECTED PUBLIC SECONDARY SCHOOLS IN DAVAO


CITY

An Undergraduate Thesis

Presented to the Faculty of the

College of Accounting Education

Lalaine Jade O. Abucay

Dorina Mae R. Eneluna

Kaye Claudine N. Maceda

January 2017
Abstract

Financial freedom is a mental, emotional and educational process. Managing money


through lifestyle choices, accompanied with financial intelligence, is the way to
financial freedom. This study is conducted to determine the relationship between
financial intelligence and lifestyle of high school teachers in selected public schools in
Davao City. Specifically, this study is proposed to determine the financial intelligence
of high school teachers using Robert Kiyosaki’s five Financial IQs and to determine
their lifestyle in terms of how they spend their finances. The research used the
correlational method of quantitative research in order to determine the significant
relationship of the two variables. In this study, information was gathered through the
administration of the survey questionnaire. The results show that financial intelligence
of teachers is moderate and could depict that they do not have higher knowledge in
their finances. However, protecting my money and budgeting my money yielded a
high result which means that in these areas, teachers are good in keeping money.
Also, the results showed that teachers have low lifestyle which means that they do not
spend their finances too much or they do not have the funds needed to incorporate
with their lifestyle. Overall result shows that there is no significant relationship
between Financial Intelligence and Lifestyle of the high school teachers.

Keywords: Financial management, financial intelligence, Kiyosaki, quantitative,


teachers
CHAPTER 1

Introduction

Rationale of the study

Having loads of money doesn’t make an individual a better person, spending it

smart does (Abdelnour, 2011). Having money is not enough to stay rich or be

financially free. It’s not how much money you make; it’s how much money you keep

(Kiyosaki, 2008). Keeping or simply managing money through lifestyle choices,

supplemented with financial intelligence, is the way to financial freedom. Lifestyle,

such as how an individual cuts their hair, where they shop, what they eat, to which

music they move through the city, where they go on holidays, what films they like and

what books they read costs them to spend money (Kornberger, 2010). The amount of

money spent and the materiality of it varies with the individual and that is where

lifestyle choices and financial intelligence will have to coincide for better financial

decisions.

According to Ryan (2010), lifestyle is the way people choose to live their

lives, based on the values they have chosen. An individual’s lifestyle is evident from

the clothes someone wears and the things they buy, use, do, say, and enjoy. A career is

an important part of most people’s lifestyle. It establishes not only the way someone

spend a large part of their time but also the level of income. If a person seeks a lavish

lifestyle, that person will need a high income job to achieve that lifestyle. Lifestyle

choices affect spending habits since the type of lifestyle a person has is maintained by

spending money.
Unfortunately, not all possess enough financial intelligence to efficiently keep

money. Examples of people not knowing how to keep money are one-time

millionaires or lotto-winners who do not know how to manage their money. Woodruff

and Kelley (2013) has listed 19 lotto winners who’s lives became notably worse after

they got super rich, and they managed to lose it all in no time. One millionaire

subsequently spent her winnings on a big house, fancy cars, designer clothes, lavish

parties, exotic trips, hand-outs to family, and loans to friends. In less than a decade,

she's back riding the bus. Her lifestyle choice made her spend limited money.

Kiyosaki (2008) defined financial intelligence as the information, knowledge,

know-how that makes one wealthy. He believed that the best investment one can ever

make is in taking the time to truly understand how one's finances work. Too many

people are much more interested in the quick-hitting scheme, or trying to find a short-

cut to real wealth. It may took a long time to understand the process of how money

works before one can start out on trying to escape the daily financial Rat Race but the

end game is all worth it.

High school teachers interact with several different groups of people,

including administrators, other teachers, paraprofessionals and parents, each day. Due

to a secondary teacher's wide range of interactions, their duties are numerous, and

typically include communicating, planning, creating, monitoring and assessing. In

addition, the high school teacher must exhibit a professional attitude and maintain

ethical teacher-student boundaries (Measom, 2011). Even with this demanding

job,public school teachers get paid with only a minimum of P18,549 ($425) a month,

excluding benefits (Geronimo, 2014). Public school teachers are among the most

poorly paid workers in the society. The low salaries received by the public school

teachers is considered to be one of their financial problems because this indicates that
they could not afford to improve their skills and pursue further education and training

(Angara, 2013). This financial problem is a situation where money worries are

causing everybody stresses. What are the reasons why financial problems occur?

According to Tracy (2014), the primary reason for financial problems is the lack of

self-discipline and self-control. It is the propensity for people to spend everything

they earn. Access to credit is easier than ever before and a lot of opportunities to

borrow come their way (Lusardi, 2008).

Different studies are conducted concerning financial intelligence and lifestyle.

One study stated that financial intelligence prepares an individual for the personal

things in life (Rico, 2011). Another study talks about how financial illiteracy affects

the overall well-being of an employee and employees with financial problems are not

likely to perform at their full capacity (Matasy, 2010). But, are these teachers well

equipped to make financial decisions? Are they spending their finances smart? This

study focuses on the relationship between financial intelligence and lifestyle of high

school teachers.

Objectives of the study

This study was conducted to determine the relationship between the financial

intelligence and lifestyle of high school teachers in district 1 of Davao City.

Specifically, this study sought to determine:

1. The level of financial intelligence of High school teachers in district 1 of

Davao City using Kiyosaki’s five (5) Financial IQs.


1.1 Making more money
1.2 Protecting your money
1.3 Budgeting your money
1.4 Leveraging your money
1.5 Improving your financial literacy
2. The lifestyle of High school teachers in district 1 of Davao City in terms of

spending.
3. Determine the relationship between financial intelligence and lifestyle of high

school teachers in district 1 of Davao City.

Statement of hypothesis

H0: There is no significant relationship between financial intelligence and

lifestyle of High school teachers in district 1 of Davao City.

Significance of the study

The results of this study could be helpful to the following:

High School Teachers.The findings of this study provide information that may help

them assess their financial intelligence and make personal decisions with their

lifestyle.

Employees. The findings of this study provide information that may help them assess

their lifestyle. It can help them leverage, budget, and protect their money by

evaluating their financial intelligence and making improvements or maintaining good

habits.

Students. This study provides information with managing finances and it will help

them increase their financial intelligence. They will know different levels of financial

intelligence and they can plan decisions that will lead them to attain sufficient

financial intelligence and could help them improve their lifestyle.


University of Mindanao. The results of the study will help the management of the

university to conduct seminars or improve ways on how their employees and students

could assess their financial intelligence and lifestyle.

Society. This study will be significant for the society because considering one’s

lifestyle and current level of financial intelligence will help them enhance it and take

actions to better their handling of money and making smarter financial decisions.

Definition of terms

Financial Intelligence: involves the knowledge of financial principles and concepts

such as financial planning, money-making techniques, profitable savings techniques,

managing debt and the time value of money.

Lifestyle: the way people choose to live their lives, based on the values they have

chosen.

CHAPTER 2

Review of Related Literature


Financial Intelligence

According to Kiyosaki (2008), it is not real estate, stocks, mutual funds,

businesses, or money that makes a person rich. It is information, knowledge, wisdom,

and know-how, a.k.a. financial intelligence that makes one wealthy. Financial

intelligence is also known as financial literacy. It involves the knowledge of financial

principles and concepts such as financial planning, money-making techniques,

profitable savings techniques, managing debt and the time value of money.

Kiyosaki divides financial intelligence into five “Financial IQs”:

Financial IQ #1: Making More Money.

Kiyosaki says that most of us have enough financial intelligence to make

money. The more money you make, the higher the financial IQ #1. In other words, a

person who earns $1 million a year has a measurably higher financial IQ #1 than a

person who earns $30,000 a year. And if two people each make $1 million a year and

one pays less in taxes than the other, that person has a higher financial IQ.

In addition, according to Chia (2010), people who earn huge incomes have a

tremendous advantage over those with lesser ability. All they need to do is just to

convert earned income into residual income. And that is where financial intelligence

comes in.

Financial IQ #2: Protecting your money.

Kiyosaki states that if a person has a low financial IQ #2, he or she will pay

more in taxes. An example of financial IQ #2 is someone who pays 20 percent in


taxes versus someone who pays 35 percent in taxes. The person who pays less in taxes

has a measurably higher financial IQ.

Aside from taxes, insurance is also an important discipline. And that’s because

if your insurance needs are not taken care of properly, then all your other financial

disciplines cannot be done right. Even a well thought out financial plan can be ruined

if you fail to take the proper precautions to protect your assets (Gold 2010).

Financial IQ #3: Budgeting your money.

Kiyosaki says that budgeting money requires a lot of financial intelligence.

Many people budget money like a poor person rather than like a rich person. Many

people earn a lot of money but fail to keep much money, simply because they budget

poorly.

The importance of budgeting is evident in the findings of Hough (2011) that a

big lottery score does little to reduce the likelihood of bankruptcy. There are more

than 1,900 winners went bankrupt within five years. That number implies that 1

percent of Florida lottery players (winners and losers) go bankrupt in any given year,

about double the rate for the broader population during the study period. Perhaps most

shocking, the typical big winner in the sample was awarded a prize of $65,000, while

the most financially distressed ones had unsecured debt of $49,000. In other words,

the cash was more than enough to pay off everything most winners owed.

Financial IQ #4: Leveraging your money.


Financial IQ #4 is measured in return on investment. For example, a person

who earns 50 percent on his or her money has a higher financial IQ #4 than someone

who earns 5 percent. And someone who earns 50 percent tax-free on his or her money

has a higher financial IQ than a person who earns 5 percent and pays 35 percent in

taxes on that 5 percent return (Kiyosaki, 2008).

This has been resounded by Chia (2010) that simply thinking that once you

have the money you can just buy any piece of property, at market price, and rent it to

any willing tenant. The idea of financial intelligence is simply to generate income

without doing work other than homework prior to the investment.

Financial IQ #5: Improving your financial information.

Kiyosaki (2008) states that an individual needs to learn to walk before they

can run.” This is true with financial intelligence. Before people can learn how to earn

exceptionally high returns on their money (financial IQ #4: leveraging your money),

they need to learn to walk; that is, to learn the basics and the fundamentals of

financial intelligence.

Moreover, Munsey (2014) suggests that the first step in taking care of your

own personal business and finances is not only picking the right investments, but also

increasing your knowledge and financial intelligence. It is about managing your

finances by educating yourself. Increasing your financial intelligence can range from

reading books to taking an individual class/going to a weekend seminar.


On the other hand, Price (2014) relates Financial Intelligence to Financial IQ

as developing a healthy relationship money and building a wealth of assets that will

generate someone money and not about saving tons of money or dumping them into

mutual funds. For Price delayed gratification is one of the most important aspects to

developing a financial IQ. He also emphasizes that everyone is capable of creating

wealth. When a person take a beat up old car and give it an overhaul, paint it with a

new coat of paint, and change a few more parts to make it start running again, it could

sell that car for more money than if it was just a beat up old car. That person would

have created wealth in the process How about a farm? If someone turns a farm into a

country home getaway resort, wouldn’t the value of the farm land increase manifold?

The bottom line is a person should invest in assets that will bring them long term

value. Anything that brings more income is an asset. Don’t invest too much in

liabilities like cars or boats. Even houses are not considered assets until they are fully

paid off (If you lost your job tomorrow and you can’t pay for your house, is your

house an asset or liability?) It is Price’s belief that in order to achieve Financial

Intelligence a person should be willing to step out of its comfort zone and be ready to

pay the price for Financial IQ.

There is also an article written by Rico (2011) in the Business Org that

financial intelligence is important because it helps prepare for the practical things in

life. For reality we live in a world that is driven by money and that's a fact. The sad

thing however is, most children have only been taught to get good grades in school,

enroll in a classy university, take up an excellent course, graduate with flying colors

(e.g. summa cum laude, magna cum laude, etc.) and after that - get a high paying

job... in order to ensure the consistent flow of money.


It's good in a way, but it's not sufficient. The society today is being controlled

by money, instead of the opposite. People are doing overtime work and missing out on

quality time with their family and loved ones because people lack money. People need

money. They have to get more money to pay this and that and to accomplish this and

that. It's a never-ending vicious cycle. Getting promoted, transferring to a better job

with higher pay, or becoming the executive vice president may seem to be good goals

- but it will never "cure" that vicious cycle of being controlled by money. God’s Word

tells us to be "wise as serpents". Remember, money is not the root of all evil. The love

of it is. So having a thorough understanding of money will greatly help one go

through this life with the right perspective. Being educationally intelligent is

compulsory (as required by our government, parents and teachers). Being financially

intelligent is a choice that we have to make on our own. This is where a person’s

lifestyle choice weighs in (Rico, 2011)

Lifestyle

Lifestyle is the way people choose to live their lives, based on the values they

have chosen. An individual’s lifestyle is evident from the clothes someone wears and

the things they buy, use, do, say, and enjoy. Most people desire to have a lifestyle that

is either the same or better than what they experienced growing up. A career is an

important part of most people’s lifestyle. It establishes not only the way someone

spend a large part of their time but also the level of income. If a person seeks a lavish

lifestyle, that person will need a high income job to achieve that lifestyle. Many

people want a higher-level lifestyle but aren’t willing to put the time or money into an
education that will allow for the lifestyle. It is important to understand the connection

between lifestyle choices and the commitments required of an individual to achieve

those goals. Lifestyle choices affect spending habits since the type of lifestyle a

person has is maintained by spending money (Ryan, 2010).

Furthermore based on the book The World's Easiest Guide to Finances, there

are three basic choices about how will an individual live financially: living within the

means, living at the means and living above the means. Living within the means

requires a person to spend less than what it makes. If the monthly Net Spending

Income (which is the take-home pay minus tax) is $2,000, the monthly expenditure

must be $1,999.99 or less. This lifestyle requires the individual to have the self-

discipline to control the spending and to keep the needs, wants and desires. It also

means one cannot rely on credit or borrowed money to take care of the normal living

expenses (Burkett, 2011)

Living at the means according to Burkett (2011) is a polite way of saying

spending every dime earned. On the surface, that may not seem like a bad lifestyle

choice- especially if an individual is meeting the budget each month. The downside of

this choice, though, is that it doesn’t account for emergencies. Car problems, an

unplanned pregnancy, and unexpected medical bills are just three possible scenarios

that can sabotage one’s strategy of simply making ends meet each month.

Living above the means is the most common, the most tempting, and the most

dangerous of the three lifestyle options. This is serious debt territory, since it involves

habitually spending more than what is earned. This is a lifestyle fueled by credit and

borrowing, and it’s an exciting way to live… until the bills come due. Unfortunately,

everything that’s borrowed must ultimately be repaid, and that’s when the stress
begins. The high life of buying what you want when you want it is replaced by a life

of ducking creditors and figuring out how to make minimum monthly payments on

credit card bills. Of course, if everyone had to do was choose a lifestyle; everyone

would be living within their budgets. Once a person chooses a lifestyle option, that

individual must gear the spending habits and approach to finances to fit that lifestyle

(Burkett, 2011)

However, according to Laura (2005), there are only two lifestyles a person

leads to, the lifestyle of being a spender and being a saver. Spenders are usually the

ones with well-furnished homes, trendy clothes, and lots of toys. The savers on the

other hand, tend to have impressive bank accounts and balance sheets. Both lifestyles

must deal with the fruit of their actions. Debt and regular monthly payments tends to

characterize the lifestyle of the spender, while the saver must deal with a not so

adventurous lifestyle based on sacrifice and living within certain self-imposed limits.

Choosing a lifestyle is also a learned process. It has adjustments based on

whether the income increases or decreases throughout the years. If someone is living

paycheck to paycheck, then the style of living currently is a little bit above what is

earned. While a person’s income typically increases over time, only at that point

should someone’s lifestyle increase since there are funds to justify it (Gold, 2010)

The response variable in the study Statistical analysis of saving habits of

employees is the status of saving habits at DebreBirhan town. The habits of employees

are identified either save out of income or no save out of income. The response

variable is a dichotomous category and my interest of the study is no saving out of

income. Thus, coded as the value 0 for 'save out of income' and 1 for 'no save out of

income' (Timerga, Genanew & Gotu, 2011, Butte et. al, 2011).
High School Teachers

High school teachers interact with several different groups of people,

including administrators, other teachers, paraprofessionals and parents, each day. Due

to a secondary teacher's wide range of interactions, their duties are numerous, and

typically include communicating, planning, creating, monitoring and assessing. In

addition, the high school teacher must exhibit a professional attitude and maintain

ethical teacher-student boundaries (Measom, 2011). Even with this demanding job,

public school teachers get paid with only a minimum of P18,549 ($425) a month,

excluding benefits (Geronimo, 2014).

The following studies identified the problems faced by teachers: salaries

(Croasmun et al., 1999; Fox & Certo, 1999; Self, 2001; U.S. Department of

Education, 2002), marital status (Croasmun et al., 1980), low ability students

(Farrington, 1980), student motivation (Farrington, Heath-Camp, Camp, Adams-

Casmus, Talbert & Barber, 1992; Self, 2001; Veenman, 1987), balancing school and

personal lives (Godley, Klug & Wilson, 1985; Mundt & Connors, 1999), community

support (Heath-Camp et al., 1994; Mundt & Connors, 1994), management and

organizational skills (Godley et al., 1994; Miller & Scheid; Mundt & Connors;

Talbert, Camp & Heath-Camp, 1994), student discipline (Godley et al., 1993; Heath-

Camp et al., 1993; Karge, 1993; Self, 1993; U.S. Department of Education, 1999;

Talbert et al., 1995; Veenman, 1995), administration support (Fox & Certo; Gersten et

al., 1995; Mundt & Connors, 2002; Self, 2002; Sultana, 2002; Veenman, 2002),

facilities and equipment (Farrington, 1999; Heath-Camp et al., 1999; Veenman, 1999),

time management (Heath-Camp et al., 1999; Mundt& Connors, 1999; Talbert et al.,
1999; Veenman, 1999), lesson planning (Heath-Camp et al., 1999; Talbert et al.,

1999), recruiting students (Mundt & Connors, 1999), paperwork (Karge, 1999; Mundt

& Connors, 1999; Veenman, 1999), parental relationships (Fox & Certo, 1999;

Heath-Camp et al., 1999; U.S. Department of Education, 1999; Veenman, 1999),

stress (U.S. Department of Education, 1999), and reparation (U.S. Department of

Education, 2002). Amongst these problems, the salary and financial management is

the leading reasons for leaving the teaching profession (Boone, D. & Boone H., 2009)

The low salaries received by the public school teachers is considered to be one

of their financial problems because this indicates that they could not afford to improve

their skills and pursue further education and training (Angara, 2013). This financial

problem is a situation where money worries are causing everybody stresses. What are

the reasons why financial problems occur? According to Tracy (2014), the primary

reason for financial problems is the lack of self-discipline and self-control. It is the

propensity for people to spend everything they earn. Access to credit is easier than

ever before and a lot of opportunities to borrow come their way (Lusardi, 2008).

Theoretical Framework

This study based Financial Intelligence on Kiyosaki’s five financial IQs:

Making More Money, Protecting Your Money, Budgeting Your Money, Leveraging

Your Money, and Improving Your Financial Information. Lifestyle is based on the

extravagant spending of the high school teachers.

According to Chia (2010), converting earned income into residual income is

where financial intelligence comes in. Financial intelligence is the study of how to

create streams of residual income. Also, Gold (2010) added that even a well thought
out financial plan can be ruined if you fail to take the proper precautions to protect

your assets. Furthermore, Cimicata (2013) said that the skill of budgeting

money is one of the most important skills an individual can acquire. Contrary

to popular belief, the budgeting skill does not simply engross working, depositing

cheques into bank accounts, and not spending any money. In spite of this, McCreadie

(2009) conveys we are given no guidance about how to manage money and how to

accumulate and build wealth to provide for our families and ourselves. She adds that

there is no focus placed on money management in any part of our formal education.

Conceptual Framework

Financial Intelligence using Lifestyle in terms of


Kiyosaki’s 5 Financial IQs
 Extravagant Spending
 Making More Money
 Protecting My Money
 Budgeting My Money
 Leveraging My Money
 Improving My Financial
Literacy

Figure 1. Conceptual Framework of the Study

Figure 1 shows the variables financial Intelligence and Lifestyle of High School

teachers. This study determined the relationship between the financial intelligence and

lifestyle of high school teachers in district 1 of Davao City. Financial intelligence also

known as financial literacy is the ability to understand how money works: how a

person makes, manages and invests it, and also spends it.

The second variable is the lifestyle of high school teachers in terms of their

spending. According to Roth (2016), a person’s lifestyle is determined by its spending


habits and not its income. It is more practical and better to focus on what to spend

your money on and understanding the cost of someone’s lifestyle as it goes on than

basing a lifestyle on income that might lead to saving too much which may deprive

someone to live to the fullest.


CHAPTER 3

Methods

This chapter discusses the steps and procedures that were used by the

researchers. It contains the research design, research respondents, research

instruments, data gathering procedures and statistical tools.

Research Design

The study used the correlational method of research. It is a quantitative

method of research where it talks about the link between different things or shows that

somehow variables are related (Martella, 2013). Relatively, the method is appropriate

to this study since it aimed to determine the relationship between financial

intelligence and lifestyle without manipulating the study subject which was the high

school teachers. The procedure used under this method is the group administered

questionnaire wherein a sample of high school teaches were brought together and

asked to respond to a structured sequence of questions. The primary data were used in

the study. The primary data were derived from the answers respondents gave in the

group-administered questionnaire prepared by the researchers. The study employed

the quantitative approach which focused on obtaining numerical findings that was

used with the survey. There are a total of 11 public schools in District 1 of Davao

City, however, the study was conducted only in 7 public schools since the researchers

did not know the locations of the other 4 public schools. Also, only 173 teachers

responded out of the 270 sample size target.


Research Respondents

The researchers selected 7 public secondary schools with a target of 270

respondents. The study used the stratified sampling technique. In stratified sampling,

the population is divided into separate groups called strata then a probability sample is

drawn from each group (Särndal, 2003). A total of 38 teachers were stratified

according to their subject departments. There were 8 subject departments per school

and 4 to 5 teachers were drawn from each department. Out of the 270 teachers, only

173 responded.

Research Instrument

The research instrument used in the study is the constructed questionnaire. The

instrument went through a validation to ensure that each part would achieve the

purpose of this study. The questionnaire comprised of two parts: Part 1 determined the

financial intelligence of high school teachers using a five-point Likert’s scale of 5-

Always, 4-Sometimes, 3-Seldom, 2-Rarely and 1-Never. Part 2 determined the high

school teachers’ lifestyle based on how the spend their money also using a five-point

Likert’s scale of 5-Always, 4-Sometimes, 3-Seldom, 2-Rarely and 1-Never.

Respondent’s response were scaled based on the following:

Scale Description Interpretation

5 Always This indicates that the high school


teachers always performed the act
4 Sometimes described in the item.

This indicates that the high school


teachers sometimes performed the act
described in the item.
3 Seldom This indicates that the high school
teachers seldom performed the act
described in the item.
2 Rarely This indicates that the high school
teachers rarely performed the act
described in the item.
1 Never This indicates that the high school
teachers never performed the act
described in the item.

To interpret accurately, the response of the high school teachers on the financial

intelligence and lifestyle, the following absolute limits together with their descriptive

equivalent were used:

Score Descriptive Level Equivalent


4.20 – 5.00 Very High
3.40 – 4.19 High
2.60 – 3.39 Moderate
1.80 – 2.59 Low
1.00 – 1.79 Very Low

For validity, the survey questionnaire was reviewed by the panels and college

research coordinator for clarity of directions and items, adequateness of items per

category, attainment of purpose, objectivity and scale and evaluation rating system.

Changes and revision of the contents of the instrument were done in accordance with

the suggestions of the validators.

Data Gathering Procedures

1. Formulation of the survey questionnaire. The researchers created the questions

in accordance with the research objectives.


2. Validation of the Survey Questionnaire. After the formulation of the

questionnaire, it was reviewed by three (3) validators – the two (2) panels and the

college research coordinator for the validity and reliability of the questions.
3. Permission to conduct study. The researchers asked permission to conduct a

survey on the study “Financial Intelligence and Lifestyle of High School Teachers

in Selected Public Schools in Davao City” to the division superintendent of the

Department of Education and to the school admin of the selected public schools

in the 1st district of the city.


4. Distribution and Retrieval of the Survey Questionnaire. The survey

questionnaire was distributed to the respondents through the administration of the

subject department heads. After answering, the researchers immediately retrieved

it.
5. Tabulation of Data. After retrieval of the survey questionnaire, the researchers

presented the data in table and passed it to the statistician who scored and record

the results according to its statistical tool.


6. Analysis of Data. After tabulation of data, the researchers interpreted and

analyzed the results logically to come up with the findings of the study.

Statistical Tools

The study will use the following statistical tools:

1. Mean. It is also called as average. It is computed by adding up all the

numbers and then divide by the total of numbers. This was used in
determining the financial intelligence of high school teachers using

Kiyosaki’s five Financial IQs and the lifestyle of the high school teachers.
2. Pearson R. It is a measure of the strength of a linear association between

two variables and is denoted by r. This was used in determining the

relationship between financial intelligence and lifestyle of high school

teachers. It can take a range of values from +1 to -1. A value of 0 indicates

that there is no association between two variables.

CHAPTER 4

Results and Discussion

Presented in this chapter are the analysis and interpretation of the data

gathered out of the research instrument used in the study. Illustrated first are the level
of financial intelligence of the respondents and whether they have lavish lifestyle or

not, this is followed by the results on the relationship between Financial Intelligence

and Lifestyle of High School Teachers in District 1 of Davao City. The main concern

of this research is to test the null hypothesis to find the answers to the objectives

presented in Chapter 1 of this study.

Table 1. Financial Intelligence of High School Teachers using Kiyosaki’s five Financial IQs

Financial IQ Mean Descriptive Level

1. Making more money 2.81 Moderate

2. Protecting my money 3.68 High

3. Budgeting my money 4.06 High

4. Leveraging my money 3.43 Moderate

5. Improving my financial 3.31 Moderate


literacy
Overall 3.46 Moderate

Table 1 shows the financial intelligence of high school teachers using

Kiyosaki’s five financial IQs: Making more money, Protecting my money, Budgeting

my money, Leveraging my money and Improving My Financial Literacy. Making

more money has the lowest mean which indicates that high school teachers seldom

make more money than their fixed salaries. This also implies that teachers

occasionally find ways in making more than they actually earn. According to Marie

(2014), high school teachers do not have enough time for other extra-curricular

activities since they are busier compared to pre-school and elementary teachers. She

also added that high school teachers prepare the hardest subject material, difficult

assessment and thorough planning before lessons thus demands most of their time.
Furthermore, Chia (2010) added that converting earned income into residual income

is where financial intelligence comes in.

Protecting My Money is the second highest Financial IQ showed which

indicates that high school teachers are good in terms of saving their moneys, keeping

track of their expenses and setting money aside for future contingencies. Gold (2010)

said that even a well thought out financial plan can be ruined if you fail to take the

proper precautions to protect your assets. Moreover, Johnson (2015) said that tracking

your spending is the only way to find out how much you’re spending on non-

essentials.

Among Kiyosaki’s five Financial IQs, Budgeting my Money is the highest

financial IQ the teachers have. This connotes that teachers are very good in setting

priorities when it comes to spending money. It also signifies that teachers allocate

their earnings based on their needs and follows a budget planner to keep records of

their expenses and savings. Shin (2016) says the way that each person splits up their

financial priorities money depends on their own personal situation.

Results show that teachers are neither high nor low when it comes to

leveraging their money. This suggests that teachers infrequently use credit, financial

instruments or borrowed capital to increase the potential return of an investment.

Likewise, this also suggests that teachers occasionally consider investing for future

purposes. According to Joseph (2016), investing allows an individual to turn the tide

by making money work for them instead of working for money. Chia (2010) also

added that the idea of financial intelligence is simply to generate income without

doing work other than homework prior to investment.


The last Financial IQ indicates that high school teachers infrequently improve

their financial literacy. This signifies that they seldom find ways to improve their

financial literacy or this also signifies that they are not interested or does not have

enough time due to a busy schedule. According to Zucchi (2015), without proper

knowledge, it is easy to get into financial trouble. She also added that the lack of

financial understanding has been signaled as one of the main reasons behind savings

and investing problems.

Overall, results show that teachers have average financial intelligence which

conveys that they do not act too big or too small that depicts financial intelligence.

However, high school teachers do best in budgeting their money and protecting their

money than other categories of financial intelligence.

Table 2. Lifestyle of High School Teachers in Terms of Extravagant Spending

Mean Descriptive Level Interpretation


2.43 Moderate Rarely

Table 2 shows that high school teachers have low lifestyle when it comes to

excessive spending. Three (3) insights can be drawn from this result. First, since

teachers do not make more money aside from their salary, they do not have the funds

needed to spend lavishly because the money they have is only enough to suffice their

needs. Second, teachers that are good in budgeting and protecting their money do not

spend excessively because they only spend on what is necessary and follows a budget

planner to track their expenses and savings. This suggests that these teachers also live

within their means, although they may be capable of spending too much. Third,

teachers are among of the society’s most underpaid workers therefore they cannot
indulge themselves in a lavish lifestyle. According to Geronimo (2014), the minimum

pay that teachers get a month is only P 18,549 excluding benefits; with this amount,

limited money can be made available to either recreational spending or emergency

purposes. So if a person seeks a lavish lifestyle, that person will need a high income

job to achieve that lifestyle (Ryan, 2010).

Burkett (2011) classifies three basic choices about how will an individual live

financially: living within the means, living at the means and living above the means.

And since the results depict that public high school teachers rarely engage themselves

in extravagant spending, they are classified as those living within their means. This

lifestyle requires a person to spend less than what it makes and also entails self-

discipline to control the spending and to keep the needs, wants and desires.

Table 3. Relationship between Financial Intelligence and Lifestyle of High School Teachers

Indicator r-value p-value Interpretation Decision Ho


Making more money 0.238 0.002 Significant Reject
Protecting my money -0.091 0.236 Not Significant Accept
Budgeting my money -0.163 0.033 Significant Reject
Leveraging my money 0.099 0.198 Not Significant Accept
Improving my financial 0.080 0.294 Not Significant Accept
literacy
Overall 0.055 0.476 Not Significant

Table 3 presents the mean scores of Kiyosaki’s five Financial IQs on the

lifestyle of high school teachers.

The results show that only Making more money and Budgeting my money

have a significant relationship with the high school teachers’ lifestyle. Teachers who

seldom make money do not have a lavish lifestyle and teachers who budget their

money rarely do have a lavish lifestyle. However, the overall r-value has negligible

correlation and the null hypothesis is accepted. Thus, there is no significant


relationship between Financial Intelligence and Lifestyle of High School Teachers in

District 1 of Davao City which means financial intelligence had no influence with the

lifestyle of the teachers.

According to Peluso (2015), what money enables an individual to do that

allows one to set financial goals. He also adds that if a person just accumulates money

but could not spend it, there is no point. A lifestyle goal tends to be more inspiring and

provides a person with greater motivation. A trust company in the US stated that

financial literacy helps consumers make thoughtful and informed decisions about

finances and their lifestyle.

CHAPTER 5

Findings, Conclusion and Recommendation

Presented in this chapter are the summary and conclusions based on the

analysis and interpretation of data, and the recommendations considering the findings.
This study was taken with the general objective of determining the

relationship between financial intelligence and lifestyle of high school teachers in

selected public schools in District 1 of Davao City.

Summary of Findings

1. The high school teachers have a moderate level of financial intelligence which

means that their proficiency towards financial aspects is neither high nor low.

It also corresponds that they seldom do acts that make them financially

intelligent. These teachers have a high level of budgeting their money which

means they are adept in this category. This connotes that teachers are good in

keeping track of their money depending on their personal situation. They are

least financially intelligent in Making More Money, meaning they seldom find

ways to earn aside from their salaries.

2. Teachers have low lifestyle in terms of spending which signifies that they

rarely engage themselves in lavish expenditures. A public teacher’s salary only

reaches to a minimum of 18,000 excluding benefits and so it limits their

spending only to the basic necessities. It is hard for them to lead a lavish

lifestyle since their means or income is low.

3. Overall analysis shows that there is no significant relationship between the

Financial Intelligence and Lifestyle of high school teachers. This means that

the lifestyle of the teachers do not depend solely on financial intelligence.

However, making more money and budgeting my money a low significant

relationship which could somehow mean that they could be variables which

affects the lifestyle.


Conclusion

High school teachers are not financially intelligent. This is because of their

lack of financial education during their undergraduate schooling. Their financial

problems are due to their low salary which is barely sufficient for their personal needs

and their mismanagement of finances. Teachers don't have extravagant lifestyles

because they do not have the sufficiency of funds to have one, not because of their

lack of financial intelligence. Their non-extravagant spending is also attributed to or

influenced by other variables like attitude when it comes to spending, personal

preferences, social status, and other factors apart from personal perspective. In

conclusion, financial intelligence of high school teachers does not have a significant

effect in their spending lifestyle which means an increase or decrease in their financial

intelligence will not affect their lifestyle.

Recommendation

Based on the findings and conclusion, the following recommendations are

drawn:

1. High school teachers must do acts to improve their financial intelligence (e.g.

engage in activities that will help generate other sources of income, create

their own financial plan, have a budget planner to compare money in and

money out, consider investment and participate in financial seminars) and

incorporate with their lifestyle to at least live within their minds.


2. The students of the University of Mindanao can assess themselves and plan

financial decisions by reading books about increasing financial literacy,

making more money out of their “baon”or salaries (for working students),

investing their money at an early age and other activities that help them attain

sufficient financial intelligence and help them improve their lifestyle. This

study will also serve as their guide should they conduct another research

involving financial literacy.


3. This study will contribute to the society and to the University by means of

awareness that financial intelligence is a must for everyone. Moreover, the

University can conduct seminars about financial intelligence along with its

implications with the lifestyle.

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