Understanding Monetary Policy: Student Awareness, Perceptions, and Financial Behaviors in the Philippine Context
DOI:
https://doi.org/10.65166/f7eayj47Keywords:
monetary policy, , financial literacy, , student perceptions, saving behavior, investment behavior, spending behavior, PhilippinesAbstract
This study investigates Filipino students’ awareness, perceptions, and financial behaviors related to monetary policy, focusing on how demographic factors and academic background influence economic literacy. Using a descriptive–correlational survey design, data were collected from 200 respondents across senior high school, undergraduate, and graduate levels in selected Philippine institutions. Results reveal that overall awareness of monetary policy is moderate, with graduate and business/economics students exhibiting significantly higher levels of understanding than senior high and non-business peers. While students generally perceive monetary policy as effective in controlling inflation and stabilizing the economy, they express more cautious views about its role in employment and long-term growth. Correlation analysis indicates that awareness is positively associated with perceptions of monetary policy effectiveness (r = 0.48, p < .001), saving behavior (r = 0.31, p < .001), and investment behavior (r = 0.24, p = .001), but shows no significant relationship with spending behavior (r = –0.07, p = .310). Regression results confirm that awareness and perceptions significantly predict saving (R² = .22) and investment (R² = .15) behaviors but not spending (R² = .04). These findings affirm the relevance of the Theory of Reasoned Action and Theory of Planned Behavior, highlighting how knowledge shapes attitudes and, in turn, influences certain financial decisions. The study underscores the need for integrating monetary policy literacy across curricula, enhancing financial education initiatives, and strengthening the Bangko Sentral ng Pilipinas’ communication strategies. By addressing these gaps, policymakers and educators can better prepare the country’s youth—its future economic stewards—to navigate complex financial environments and contribute to long-term economic stability.
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