International Journal of Advanced and Applied Sciences, 11(2) 2024, Pages: 230-237
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International Journal of Advanced and Applied Sciences
Journal homepage: http://www.science-gate.com/IJAAS.html
230
Extent of spending behavior, problems encountered, and financial
knowledge across generational cohorts among state universities and
colleges employees
Madelyn R. Gumarac *
College of Management, Northern Iloilo State University, Iloilo City, Philippines
ARTICLE INFO ABSTRACT
Article history:
Received 7 October 2023
Received in revised form
26 January 2024
Accepted 4 February 2024
This study investigates how financial well-being, a key factor affecting life
quality, job contentment, and retirement readiness, varies among individuals.
It looks at the spending habits, financial challenges, and knowledge of four
generations (Baby Boomers, Generation X, Generation Y, and Generation Z)
working in four state universities and colleges (SUCs) in the Philippines. The
study involved 371 regular staff and academic employees who completed a
modified questionnaire. The results showed that these employees generally
spend cautiously and face few financial problems, yet they possess
considerable financial understanding. There was a noticeable link between
how they spend and the problems they face. A strong connection was
observed between their financial knowledge and spending habits. However,
the link between the financial issues they face and their knowledge of
finances was weaker. This suggests that the employees are careful with their
spending and have good financial knowledge. These insights are useful for
creating specific programs and educational efforts to improve the financial
well-being of staff and academics at these Philippine universities.
Keywords:
Spending behavior
Problems encountered
Financial knowledge
Employees
© 2024 The Authors. Published by IASE. This is an open access article under the CC
BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
1. Introduction
*In the contemporary professional landscape, the
workforce is witnessing a profound evolution
characterized by a coalescence of diverse
generational cohorts (Miller, 2023). This
amalgamation encompasses Baby Boomers,
Generation X, Generation Y (widely recognized as
Millennials), and the emerging Generation Z, each
introducing a distinctive set of perspectives, values,
and financial paradigms into the workplace (Verma
and Garg, 2023). Baby Boomers, who experienced
the post-World War II economic boom, often
prioritize job loyalty and financial stability. They
tend to lean towards traditional financial values
rooted in a different economic era. Generation X,
born amidst socio-economic shifts, exhibits
adaptability and pragmatism. They navigated the
technological revolution and economic recessions,
shaping their resilient financial outlook (Khajeheian,
2012). Generation Y values work-life balance and
* Corresponding Author.
Email Address: madzarth47@gmail.com
https://doi.org/10.21833/ijaas.2024.02.024
Corresponding author's ORCID profile:
https://orcid.org/0009-0008-4652-683X
2313-626X/© 2024 The Authors. Published by IASE.
This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/)
experiences over material gains as characterized by
their digital upbringing. Societal shifts towards
sustainability and social responsibility often
influence their financial mindset (Jasrotia et al.,
2023). Generation Z, the youngest entrants, are
digital natives with an entrepreneurial spirit. They
perceive financial independence and technology-
driven finance as integral to their financial future
(Kangwa et al., 2021). The coexistence of these
generational perspectives in the workplace
underscores the importance of recognizing and
understanding these differences to foster an
inclusive and effective financial environment. This
evolving diversity enriches the tapestry of the
modern workforce, contributing to a multifaceted
approach to financial behavior and management
(Olawoyin and Ogutu, 2023).
State Universities and Colleges (SUCs) play a
pivotal role in shaping the academic landscape and,
by extension, the lives and careers of their
employees (Quimbo and Sulabo, 2014). The financial
well-being of their workforce is intrinsically tied to
their ability to fulfill their educational missions
effectively (Brüggen et al., 2017). Therefore,
understanding how spending behavior, financial
challenges, and financial knowledge vary among
different generational cohorts within the SUC
employees is paramount (Reams-Johnson and