Personal Finance Practices of Microfinance Borrowers in Sta. Elena, Camarines Norte

Abstract

This study explores the personal finance practices of 280 microfinance borrowers in Sta. Elena, Camarines Norte, a third-class municipality, where microfinance programs are widely accessed. Using a descriptive-correlational method. Data were gathered via surveys and analyzed through statistical tools including Somers' Delta. The majority of respondents were female, aged 31–40, high school graduates, business owners, and regular loan borrowers with loan amounts ranging from ₱21,000–₱50,000.

The findings revealed that borrowers generally agreed with positive spending, saving, and investing behaviors, although investing had the lowest engagement. No significant correlation was found between personal finance practices and demographic variables like age, sex, and education—except for monthly income, which significantly influenced financial behaviors, especially in saving and investing.

Given the lack of existing studies in Sta. Elena, this research contributes valuable insights into borrowers' capabilities and knowledge in personal finance. The findings are expected to inform future financial literacy programs and policy interventions to improve borrowers' financial outcomes. Recommendations included financial education programs, regular borrower assessments, and improved borrower-institution engagement to foster smarter borrowing and investment practices.