SELF-EFFICACY and Financial Literacy as Determinants of Savings Behavior of Ambulant Vendors in Davao CITY

Abstract

This study examined the influence of self-efficacy and financial literacy on the savings behavior of ambulant vendors in Davao City. Given this sector's economic vulnerability, understanding the psychological and cognitive factors that shape their financial practices is critical. A quantitative-descriptive research design was employed, involving 200 ambulant vendors selected through quota sampling. Data were collected using a validated survey instrument and analyzed using descriptive statistics, Pearson correlation, and multiple regression. Findings revealed that ambulant vendors possess adequate levels of financial literacy and a moderately high level of self-efficacy. Among the dimensions of financial literacy, financial knowledge and behavior were found to be the most influential in promoting better savings practices. While self-efficacy exhibited a positive correlation with savings behavior, it was not a significant predictor when considered independently. Instead, financial literacy emerged as the sole significant determinant of savings behavior. The study also confirmed that while self-efficacy may shape one’s perceived behavioral control, its influence on savings behavior becomes meaningful only when coupled with sufficient financial knowledge and supportive environments. The study substantiates the Theory of Planned Behavior by highlighting the pivotal role of financial literacy in shaping saving intentions and practices among ambulant vendors in Davao City.