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Abstract

This paper primarily interrogates the assumption that financial literacy essentially decreases impulse buying. However, this may not necessarily be the case, given that individuals navigate in different social contexts. Teachers in the Philippines are stereotypically perceived as heavy financial borrowers due to their limited income. Given their quick access to private financial loan companies, it is worthy to investigate if teachers also engage in impulse buying. The first goal of this paper is to describe the financial literacy of public-school teachers. Second, it examines the relationship between financial literacy and impulse buying. In this paper, financial literacy is operationalized in terms of two variables, namely, ownership of financial instruments and use of financial records and record keeping. This paper is based on a survey conducted among 310 public elementary and high school teachers in Metro Manila, Philippines. Results of the study show that savings accounts and debit cards are the more popular financial instruments that many of the teachers possess. Generally, the teachers also manifest a certain level of use of financial records and of record keeping. The results likewise exhibit a negative but weak correlation between impulse buying and financial literacy in terms of use of financial records and record keeping. This means that impulse buying will likely decline if use of financial records and record keeping are constantly practiced or observed. Results of the multiple regression analysis reveal that use of financial records and record keeping predicted impulse buying. These results necessitate that financial literacy education needs to underscore the importance of the use of financial records and of keeping such records as they can influence individuals to be critical in making decisions concerning purchases.

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