Level of Financial Literacy and Job Preparedness of the Graduating BSBA-FM Students in Cor Jesu College
Level of Financial Literacy and Job Preparedness of the Graduating BSBA-FM Students in Cor Jesu College
Theoretical Framework The theoretical construct predominantly used when studying financial decisions and resource management practice is systems theory (Goldsmith, 2005). The present research used family resource management theory (Deacon and Firebaugh, 1981), based in systems theory, to understand the financial management practices of college students. The four stages (inputs, throughputs, outputs, and feedback loop) in the family resource management model explain how people make financial decisions and develop financial behaviors. This study combined social learning theory and family resource management theory in a way that considers environmental influences that shape where a person currently is in regards to their knowledge, attitudes, and personal characteristics. Social learning theory helps explain the environmental influences college students have had that shape them into who they are today. As students learn over the years through social interaction (Bandura, 1986), they begin to understand and form their values, knowledge, and attitudes about finances. Family, friends, school, community, nation, church and media all shape college students’ knowledge and attitudes over time (Bubolz & Sontag, 1993). The environmental influences of parents and educators were focused on for this study because of the great influence they have on college students’ financial knowledge, attitudes, and behaviors (Alhabeeb, 1999; John, 1999). Parents tend to have a greater influence on students at a younger age (Brown et al., 1993; Clark et al., 2005) while educators influence increases as the student becomes older, especially after entering high school and then moving onto college (Harris, 1995; John, 1999). Figure 1 shows the variables of this study. The dependent variables are the financial literacy measures which are the basic money management skills, financial
Theoretical Framework The theoretical construct predominantly used when studying financial decisions and resource management practice is systems theory (Goldsmith, 2005). The present research used family resource management theory (Deacon and Firebaugh, 1981), based in systems theory, to understand the financial management practices of college students. The four stages (inputs, throughputs, outputs, and feedback loop) in the family resource management model explain how people make financial decisions and develop financial behaviors. This study combined social learning theory and family resource management theory in a way that considers environmental influences that shape where a person currently is in regards to their knowledge, attitudes, and personal characteristics. Social learning theory helps explain the environmental influences college students have had that shape them into who they are today. As students learn over the years through social interaction (Bandura, 1986), they begin to understand and form their values, knowledge, and attitudes about finances. Family, friends, school, community, nation, church and media all shape college students’ knowledge and attitudes over time (Bubolz & Sontag, 1993). The environmental influences of parents and educators were focused on for this study because of the great influence they have on college students’ financial knowledge, attitudes, and behaviors (Alhabeeb, 1999; John, 1999). Parents tend to have a greater influence on students at a younger age (Brown et al., 1993; Clark et al., 2005) while educators influence increases as the student becomes older, especially after entering high school and then moving onto college (Harris, 1995; John, 1999). Figure 1 shows the variables of this study. The dependent variables are the financial literacy measures which are the basic money management skills, financial