A STRUCTURAL EQUATION MODEL OF FINANCIAL LITERACY AMONG UPPER SECONDARY SCHOOL STUDENTS

Abstract

Financial literacy is a critical foundation for shaping appropriate financial behaviors. This study is a survey research with the objective of 1) Developing and validating a causal model of financial literacy against empirical data, 2) Examine the direct and indirect effects of key factors influencing financial literacy, and 3) Propose methods to enhance financial literacy among upper secondary school students. The research population consisted of 973,953 students under the Office of the Basic Education Commission (OBEC), with a sample of 720 students selected through multistage random sampling. Data were collected using online questionnaires and interviews. The results showed that the proposed causal model fit well with the empirical data (KMO = 0.848, Bartlett's test: p < 0.0009). Significant predictors of financial literacy included social financial influence, teachers' learning management, and students' financial experience. Social financial influence exerted direct and indirect effects (β = 0.560) via financial experience (β = 0.222), yielding a total effect of 0.782. Financial experience (β = 0.333) and teachers' learning management (β = 0.415) also had significant direct effects. Based on these findings, six strategies for promoting financial literacy were recommended: 1) Organizing activities grounded in real-life experiences, 2) Fostering family and community participation, 3) Incorporating technology and engaging media, 4) Cultivating a school culture that supports sound financial practices, 5) Connecting classroom learning with external resources, and 6) Implementing continuous monitoring and feedback on financial behaviors.