Financial literacy and income distribution of rice farmers

Preachy Mae D. Sanglay, Elaine Joy C. Apat, Julieta A. Sumague & Efren T. Tec

Volume 2 Issue 3, September 2021

Abstract

This study evaluated the financial literacy and income management practices of rice farmers in the Philippines. The study employed descriptive quantitative research method with researcher-made questionnaire as the primary tool. Data were collected from purposively chosen rice farmers in San Pablo City. Statistical treatments such as mean and Pearson r correlation were utilized. Results showed that respondents’ age, educational attainment, and monthly income have significant differences on their financial literacy as to attitude whereas gender, educational attainment, and monthly income differ significantly with financial literacy as to behavior. Age, gender, and monthly income differ significantly in income distribution as to family needs whereas age, gender, and educational attainment have significant differences in income distribution as to debt repayment. Financial literacy based on attitude and behavior; family needs have an inverse correlation. Debt repayment has a positive correlation to attitude and behaviors. Farmers spend less than what they earn and seldom save money. Older male farmers have high level of income distribution on basic family needs, paying debts, and financial matters as to attitude. Farmers who are low-income earners prioritize family needs and have positive attitude and behavior toward paying their debts. It was further revealed that there is a positive correlation between financial literacy as to attitude and behavior and income distribution as to family needs and debt repayment. It is recommended to provide knowledge, confidence, and skills for these farmers to manage money effectively and to make financial decisions that promote financial sufficiency, stability, and well- being of their family.

Keywords

Author information & Contribution

Preachy Mae D. Sanglay. Corresponding author. Instructor I, Laguna State Polytechnic University- San Pablo City Campus

Elaine Joy C. Apat. Instructor I, Laguna State Polytechnic University- San Pablo City Campus

Julieta A. Sumague. Assistant Professor III, Laguna State Polytechnic University- San Pablo City Campus

Efren T. Tec. Part-Time Instructor, Laguna State Polytechnic University- San Pablo City Campus

Disclosure statement

Funding

Institutional Review Board Statement

AI Declaration

Notes

Acknowledgement

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Cite this article:

Sanglay, P.D., Apat, E.C., Sumague, J.A. & Tec, E.T. (2021). Financial literacy and income distribution of rice farmers. International Journal of Accounting, Finance and Education, 2(3), 1-20. https://doi.org/10.53378/348732