Financial Literacy, Family Support, and Financial Stability among Household Heads Receiving Scholarship Subsidies in a Selected Barangay in Iloilo City, Philippines

Abstract

Background: Financial assistance programs like United Nations-aligned initiatives and Philippine policies such as AmBisyon Natin 2040 and Pantawid Pamilyang Pilipino Program (4Ps) aim to reduce poverty, but financial stability among beneficiaries still depends on factors like financial literacy and family support. Introduction: This study examined the relationship between financial literacy, family support, and financial stability among household heads receiving financial assistance in Sto. Niño Sur, Arevalo, Iloilo City. The study was motivated by the observation that despite government aid programs such as the Pantawid Pamilyang Pilipino Program (4Ps), many households continue to experience financial difficulties, raising questions about the roles of financial knowledge and family support. Methods: A quantitative descriptive-correlational design was used. Data were collected from 80 household heads (from a population of 100) using convenience sampling. A structured questionnaire was validated by Ma’am Angel Posadas (field expert) and statistically reviewed by Sir Henjie Posadas (statistician). The instrument was pilot-tested (n = 20), yielding reliability coefficients ranging from 0.72 to 0.94. Data was analyzed using Jamovi. The Shapiro–Wilk test indicated non-normal distribution for some variables; thus, both Spearman’s rho and Pearson’s r were applied at a 0.05 significance level. Results: Respondents showed high financial literacy (M = 8.98, SD = 1.40) and family support (M = 3.25, SD = 0.30), but moderate financial stability (M = 2.99, SD = 0.40). No significant relationship was found between financial literacy and financial stability (ρ = -0.017, p = 0.879). A significant positive association was found between family support and financial stability (ρ = 0.378, p < .001). Pearson’s correlation also indicated a moderate positive relationship (r = 0.506, p < .001). Discussion and Recommendations: The findings indicate that financial literacy was not significantly linked to financial stability, while family support showed a positive association, suggesting knowledge alone may be insufficient, especially for low-income households. Due to the correlational design, causality cannot be established. Strengthening family support and promoting practical financial behaviors may improve outcomes, but results are limited by convenience sampling, small sample size, single-barangay scope, and self-reported data.