Financial Planning Challenges in the Gig Economy: An Exploratory Factor Analysis

This study examines the specific financial planning challenges faced by independent contractors and freelancers in therapidly growing gig economy. While gig work offers compelling advantages such as flexibility and autonomy, this research aims toanalyze how the shift from traditional employment models impacts the ability of Davao City-based freelancers to achieve long-termfinancial security. This study uses a descriptive exploratory approach using Exploratory Factor Analysis through PrincipalComponent Analysis (EFA-PCA). This study identifies financial knowledge, financial security, financial stability, financial behaviorand insurance awareness as primary challenges towards financial planning of freelancers. Likewise, this research shows that despitethe efforts exerted in budgeting and efficient financial management, freelancers and gig economy workers are vulnerable to economicshocks. The study concludes that current financial practices and social security systems are insufficient for this emerging workforce.It recommendssystemic reforms, including the development of inclusive financial products tailored for irregular income, governmentsupported portable benefits, and targeted financial literacy programs to ensure the sustained well-being and stability of freelancers inDavao City.