Financial Literacy and Budgeting Strategies of Low-Income Parents of College Students at UM Digos College

Financial literacy provides important knowledge and skills to low-income parents, which are needed to effectively manage their limited financial resources and make proper financial decisions. Effective budgeting practices also help them to handle their finances, provide for basic needs, and support their children’s education. Therefore, this study examined the relationship between financial literacy and budgeting strategies of low-income parents of college students at UM Digos College. The researchers used a quantitative method and a descriptive correlational design with a standardized survey questionnaire. The data were collected from 334 respondents through purposive sampling. The data analysis using mean scores and the Pearson correlation coefficient presented a high level of financial literacy among the respondents and effective overall budgeting strategies. Thus, the study concluded a positive correlation between financial literacy and budgeting strategies, indicating that higher financial literacy leads to better budgeting practices. Moreover, low-income families could improve their quality of life by improving their financial literacy and managing their finances effectively.