Financial Literacy and Management Practices Among Employees of the Local Government Unit of Sagay

Abstract

Financial literacy and sound financial management are essential to employees' financial well-being, yet salaried workers may continue to experience debt pressure, weak saving habits, and limited long-term planning. This study examined the financial management practices and level of financial control among employees of the Local Government Unit (LGU) of Sagay, Camiguin. It described the respondents' demographic profile, determined short-term and long-term financial management practices, assessed financial control, identified commonly encountered financial problems, and tested the relationship between financial management practices and financial control. A quantitative descriptive-correlational design was employed. Data were gathered from 60 regular LGU employees through a structured questionnaire and analyzed using frequency count, percentage, weighted mean, standard deviation, t-test, one-way analysis of variance, ranking, and Pearson correlation at the .05 significance level. Results showed a moderate extent of financial management practices (M = 2.95, SD = 0.97) and a moderate level of financial control (M = 3.14). Short-term practices (M = 3.08) were stronger than long-term practices (M = 2.82), while debt management obtained the highest financial-control mean (M = 3.29). No significant differences in financial management practices were found across demographic groups. Financial management practices were positively related to financial control (r = .656, p < .001). Unexpected emergencies affecting savings ranked as the most pressing financial problem, followed by insufficient monthly income. The study concludes that practical financial literacy interventions should strengthen budgeting, emergency savings, debt management, and long-term financial planning among LGU employees.