Decoding the eco-financial mindset: financial literacy, attitudes, and efficacy measures and the spending behavior of Filipino millennials

: In today's volatile economy, millennials stand out as a generation defined by their significant reliance on technology and the issues they encounter in their formative and later years. Experiencing problems from education costs and socio-economic backgrounds, exacerbated by the lack of financial acumen and economic downturns, millennials inevitably become financially vulnerable in the increasingly evolving financial landscape. This research delves into Filipino millennials' financial decision-making, focusing on financial literacy, financial attitude, financial efficacy, and spending behavior. Survey questionnaires were distributed among 431 millennials from the cities of Laguna, Philippines, through Google Forms. Data analysis was conducted through Structural Equation Modeling (SEM) and Confirmatory Factor Analysis (CFA) in Jamovi, unveiling strong positive correlations among eco-financial literacy, eco-financial efficacy, and eco-financial attitude, emphasizing their interdependence in shaping millennials' financial decisions. A negative correlation is identified between spending behavior and financial attitude and a breakdown of spending patterns revealed both variability and consistency of millennials’ spending patterns across categories. The findings emphasize the value of tailored financial education, training, and intervention programs. Such initiatives must be crafted with acute sensitivity, recognizing millennials' unique aspirations and inclination towards social media and peer influences.


Introduction
Born from 1981 to 1996, millennials encompass a generation shaped by globalization, digitalization, and economic events.This era has left an indelible mark on their lives, leading to their high dependence on technology and the financial struggles they face between their early twenties and late thirties.Known to balance their increased spending on entertainment, online shopping, and travel while saving, avoiding debt, and considering retirement, millennials were discovered to be more worried about financial management than other generations prior and after them.
As they enter adulthood, where financial markets and products are becoming increasingly complex, they are prone to experience difficulties in evaluating appropriate financial behaviors and identifying optimal decisions, potentially falling into the traps of high-interest loans, payday lends, and excessive credit card debts.Especially in the Philippines, where economic uncertainties and fluctuations are apparent, Filipino millennials usually come from financially struggling families, necessitating them to address personal loans, credit card debts, and other financial obligations early in their careers.
Uncertainties brought about by distressing economic conditions in their countries induce a lack of financial confidence and trust among millennials.Constituting the most significant percentage of today's workforce, many cannot earn more than the high education costs and are perceived as more financially stressed and fragile than other generations .
Exacerbating these problems is their generation's observed lack of financial literacy and competencies to assess tradeoffs and apply knowledge to their specific circumstances compared to previous generations.
Nevertheless, they are seen to have a crucial impact on labor markets, financial markets, and economies on a global scale.Given their perceived pivotal influence, this article aims to comprehensively delve into the financial decision-making of Filipino millennials using aspects such as financial literacy, financial attitude, financial efficacy, and spending behavior through a quantitative approach involving data gleaned from self-administered survey questionnaires, analyzed through the SEM and CFA.As the existing body of literature with regard to the financial behavior of millennials often tackle constructs, such as financial literacy, financial attitude, and financial efficacy in isolation or through paired combinations, this study intends to address the observable gap by exploring these variables comprehensively in the context of spending [31][32][33][34][35][36][37][38].
Through the collective examination of these factors, the research intends to offer a holistic perspective pivotal in crafting interventions and strategies that address the multifaceted challenges of the millennial generation.

Review of related literature
Financial Literacy Financial literacy, often described as an individual's capacity to grasp and apply financial knowledge in practical, real-world scenarios, is a pivotal element in overcoming financial challenges (Dai et al., 2021).The increasing uncertainty in the emerging global economy deems financial literacy more critical, especially in making sound investment decisions, managing money, and coping with financial pressures, given that financially literate individuals can ensure their economic security and well-being (Dewi et al., 2020).
Moreover, financial literacy is discovered to be linked to prudent investment behaviors leading to wealth accumulation (Cude et al., 2021).It has been proven to positively impact and enhance saving intentions and frugal behavior (Widjaja et al., 2020).
Rational investors attain financial stability by integrating financial literacy when devising financial choices, positively impacting their financial well-being (Mohta & Shunmugasundaram, 2022).Not having financial literacy can lead to bankruptcy, inadequate retirement funding, and overspending (Yoopetch & Chaithanapat, 2021).
In the context of millennials, studies have found that social media and socialization play a massive role in developing their financial literacy.Yanto et al. (2021) unveiled that social media's positive portrayals of financial literacy and the indirect influence of knowledge from peers fostered millennial students' financial literacy.
In addition, Salumintao & Cinches (2019) asserted that interactions with financial socialization agents like parents, schools, and peers influenced millennial students to exhibit financially literate practices, such as saving and budgeting their allowances.

Financial Attitude
Often assessed through statement responses and opinions, financial attitude is defined as how an individual feels about personal financial challenges, primarily influenced by his understanding of finances (Dai et al., 2021).A corpus of studies has empirically supported the essential significance of financial attitude in affecting individual financial management behaviours (Firli & Hidyati, 2021;Yanto et al., 2021;Dewi et al., 2020).
Like financial literacy, it was discovered to develop in millennial students through social media and socialization (Yanto et al., 2021).Researchers observed its presence in millennials who possess self-control when deciding on a savings account or a personal loan, implying that an individual's level of self-control is related to a positive financial attitude (Rey-Ares et al., 2021).With an ideal financial attitude, millennials demonstrate responsible expense and income management by meticulously seeking information about the goods they intend to buy and religiously keeping a record of their purchases (Dewi et al., 2020).
Their risk aversion, particularly in terms of investment, although exhibiting self-control, was found to be negatively associated with financial attitude (Rey-Ares et al., 2021).Thus, a positive financial attitude is apparent in millennials' conscious spending, willingness to save, and a forward-looking investment perspective.
Financial Efficacy Financial efficacy, perceived to be an individual's confidence and ability to effectively deal with monetary stress and uncertainty, has long been linked with acquiring lower debt, fewer financial problems, higher savings, and financial satisfaction (Lim et al., 2014).
It entails having a positive financial behavior to cope with any financial challenge by anticipating the likelihood of credit problems and choosing appropriate financial products and insurance services (Ismail et al., 2017;Mindra et al., 2017).
Individuals with high levels of financial efficacy experience improvement in their financial welfare as they are more likely to make informed choices and exhibit responsible financial practices (Mindra et al., 2017).

Theoretical framework
Developed by Ajzen (1991), the Theory of Planned Behavior (TPB) takes attitudes, subjective norms, and perceived behavioral control into account to provide a comprehensive framework for understanding human behavior.This theory infers that positive attitudes, subjective norms, and perceived control over a specific behavior encourage individuals to exhibit that behavior.Attitudes, subjective norms, and perceived control are elucidated as positive or negative evaluations, approval or disapproval, and observed convenience or difficulty concerning behavior performance (Rutherford & DeVaney, 2009).The social support or pressure associated with a particular behavior hones an individual's foundational beliefs (Ajzen, 1991).
Previous studies have utilized the TPB to investigate various financial decision-making aspects, such as managing family firms, acquiring insurance, frequent credit card utilization, and participation in the stock market.Within the framework of this research, TPB will aid in the understanding of how the intentions, attitudes, subjective norms, and perceived behavioral control of millennials influence their spending behavior.Important drivers of spending behavior may include financial characteristics, such as financial literacy, financial attitude, and financial efficacy.
Consistent with TPB principles, the study postulates a strong correlation between millennials' spending behavior, financial efficacy, financial attitude, and financial literacy.
Millennials' financial decision-making highlights the importance of attitudes, subjective standards, and perceived control when analyzed through the lens of TPB.
Financial literacy, representing knowledge and understanding, contributes to optimistic outlooks and a sense of control over financial decisions.In addition, millennials' financial actions are shaped by subjective norms that are impacted by sociodemographic traits.
Moreover, perceived behavioral control, embodied in financial efficacy, shows millennials' confidence in their financial decision-making skills, affecting their perceived control over spending.

Methodology
The study conducted an online survey within Laguna, Philippines, targeting a sample size of 431 millennials from various age groups, job types, and biological sexes.To comprehensively study millennials' financial decision-making, the data collection process included a custom survey questionnaire distributed through Google Forms with three main sections: general information, money management practices, and financial preparedness.The general information section covered the respondents' demographic information.The money management section inquired about their spending habits.
Respondents had to identify the percentage of their spent income and spending from five bracket ranges: 10% and less, 11% to 20%, 21 to 30%, 31 to 40%, and 41% and more.Lastly, the financial preparedness section assessed their level of financial literacy, financial attitude, and financial efficacy.
Participants were asked to analyze these three financial elements using carefully constructed questions, prompting them to self-evaluate their position and understanding.For financial literacy, respondents had to rate themselves by utilizing a five-point likert scale with choices, such as not at all knowledgeable, slightly knowledgeable, moderately knowledgeable, very knowledgeable, and extremely knowledgeable.For financial attitude and financial efficacy, they had to use the same five-point likert scale with options, such as strongly disagree, disagree, neutral, agree, and strongly agree.
In line with analyzing the intricate relationships and underlying mechanisms among financial literacy, financial attitude, financial efficacy, and various spending patterns, the diverse profiles of the respondents were examined in Table 1, shedding light on their sociodemographic demographic characteristics, such as sex, age, monthly income, employment duration, job, and primary financial goal.
The sample had a predominant representation of males (Males = 62.9%,Females = 37.1%, SD = 0.484) while exhibiting a diverse monthly income (SD = 1.52) with a substantial proportion earning between PHP 20,000 and PHP 26,999 (50.8%) and having one to five years of experience (49.2%).
With regard to age distribution, most of the respondents belong to the range of 26-27 years (SD = 2.73) having job roles spanning multiple domains (SD = 4.50), prominently in accounting and auditing (19.3%), administrative (13.9%), and banking and finance sectors (10.9%).Diverse primary financial goals were apparent (SD = 0.74) with wealth creation being the most prevalent among respondents (38.5%).Proving to be an optimal framework for investigating complex connections between millennials' financial literacy, financial attitude, financial efficacy, and spending behavior, Structural Equation Modeling (SEM) possesses the capability to simultaneously explore complex associations among multiple variables, linking latent variables with observed variables.Given that the study investigates latent constructs inferred from observed variables, SEM's adeptness in handling latent variables ensures a more accurate representation.
Moreover, SEM accounts for measurement error in observed variables, crucial for counteracting potential biases in self-reported financial data.Fit indices help evaluate the overall appropriateness of the model, while SEM's capacity for hypothesis testing guarantees a rigorous investigation of specific hypotheses, providing an evidence-based understanding of the associations in question.Previous studies in the same area of research employed SEM to scrutinize complex relationships involving variables, such as consumer purchasing behavior, financial behavior, and financial capability (Arbabi et  behavior and attitudes shown in Table 2. Seven observed variables from financial literacy provide a comprehensive view of participants' financial knowledge by encompassing specific aspects like interest rates on savings, borrowing rates, credit ratings, and basic financial knowledge.Representing people's beliefs and actions related to budgeting, saving, goal-setting, and cost control, eight observed variables from financial attitude delve into individuals' beliefs and behaviors.Ten observed variables from financial efficacy constructs assess individuals' confidence in handling unforeseen costs, planning for retirement, managing finances, and tackling financial challenges. Allowing for a more thorough analysis of millennials' financial behavior, nine observed variables examine spending patterns in terms of dining out, grocery, clothes, credit card payments, and recreational activities.All latent variables, such as financial literacy, financial attitude, financial efficacy, and spending behavior to be integrated in the model exhibited reasonable internal consistency reliability with Cronbach's alpha values of 0.971, 0.863, 0.858, and 0.656 and Variance Inflation Factor (VIF) values of 1.51, 2.54, and 2.72 respectively, indicating that constructs are distinct from each other and there is no severe multicollinearity issue in the model.
Upon garnering the mean scores of respondents in terms of financial literacy, financial attitude, and financial efficacy, they exhibited a moderately knowledgeable overall financial literacy level (AVE = 3.42) with most agreeing to financial attitude (AVE = 3.69) and financial efficacy statements (AVE = 3.56).
Financial literacy scores showcased a solid understanding across various aspects, from interest rates on savings to general financial knowledge, with a composite score indicating a reasonable overall proficiency.Scores for financial literacy demonstrated participants' strong grasp of a range of topics, including general financial knowledge and interest rates on savings, with a composite score signifying a respectable level of overall competency.The majority of participants had positive financial attitudes and concurred that they could manage their spending, set goals, save consistently, and stick to budgets.
When it came to financial efficacy, respondents demonstrated skill and confidence in managing their money, sticking to budgets, and achieving their financial goals, but expressed neutrality in terms of utilizing credit.To closely analyze the spending patterns of millennials, a detailed breakdown of participants' spending behavior across various categories, along with corresponding standard deviations offering insights into the variability within each spending construct was created through computations from Jamovi in Tab. 3. In S1 (Percentage of spent income), 42% of participants reported spending 41% or more (SD = 1.495).For S2 (Percentage of income spent on groceries), the majority (77.5%) allocated 10% or less (SD = 1.050).S3 (Percentage of income spent on dining in or out) and S4 (Percentage of income spent on clothing, shoes, and accessories) depict similar patterns, with most respondents spending within lower ranges.S9 (Percentage of income spent on beer and wine) demonstrates high consistency, with 93.7% of respondents allocating 10% or less of their income to this category, revealing a prevalent and uniform spending pattern (SD = 0.521).
In contrast, S5 (Percentage of income spent on credit card or loan payment) exhibits variability (SD = 0.993), while S6 (Percentage of income spent on gas and car maintenance) shows moderate variability (SD = 0.625).Both S7 (Percentage of income spent on travel or vacation) and S8 (Percentage of income spent on hobby and electronics) display similar patterns, with a majority of participants spending within lower percentage ranges (SD = 0.690, 0.629).
The standard deviations obtained from the observed variables provide valuable information on the degree of variation or consistency in the spending habits of the participants in various categories of expenditure.A wide range of financial habits are suggested by the significant standard deviation in S1 (Percentage of spent income), which suggests significant variability in participants' total spending behavior.Furthermore, a more uniform pattern in this particular spending category is shown by the consistent and low standard deviation in S9 (Percentage of income spent on beer and wine), which may be a reflection of a solid and predictable component of participants' financial habits.To gauge the suitability of identified variables, Confirmatory Factor Analyses (CFA) was conducted using Jamovi.Apparent in Tab. 3, the Root Mean Square Error of Approximation (RMSEA) values of 0.121, 0.150, 0.163, and 0.092 suggest a reasonable fit of the latent variables in the model.
Arrows link latent variables and observed indicators demonstrate directional relationships suggested by the model.Additionally, the figure shows standard path coefficients represented by numbers on the arrows that indicate the strength and direction of relationships examined while errors associated with the arrows signify the unobserved factors or random variations unaccounted for by the mentioned primary latent variables to ensure a more accurate representation.
Quantifying the strength and direction of relationships between key financial constructs, the parameter estimates shown in Tab. 3 provide significant insights contributing to an indepth understanding of complex associations governing financial behavior.Among the noteworthy results are the strong positive correlations financial efficacy and financial literacy (b = 0.40142, β = 0.6136, p < .001),financial attitude and financial literacy (b = 0.36387, β = 0.5776, p < .001),and financial literacy and financial attitude (b = 0.36387, β = 0.5776, p < .001).Furthermore, a strong inverse relationship between spending and financial attitude is discovered (b = -0.02963,β = -0.1759,p = 0.034).Nevertheless, the relationships between spending and financial efficacy (b = -0.02963,β = -0.1759,p = 0.034) and spending and financial literacy (b = -0.00871,β = -0.0449,p = 0.477) are not statistically significant.Intending to validate and reinforce the findings from the structural paths, a correlation matrix was calculated using the Data Analysis Toolpak of Microsoft Excel.A comparison from the SEM results found in Tab. 3 and correlation matrix outcomes presented in Tab.6 unveils internal consistency and coherence.The negative parameter estimate for the path for spending to financial literacy and financial efficacy is mirrored by the negative correlations between spending and financial literacy/financial efficacy in Tab. 4 (r= -0.07, -0.06).This consistency forwards that millennials who engage in lower spending behaviors, apparent in decreased percentage of spent income, exhibit higher levels of financial financial literacy and financial efficacy.
Similarly, the positive parameter estimates in the examined structural paths align with the positive correlations between financial attitude and financial literacy/efficacy (r = 0.52, 0.57).A concordance perceived from the said results reveals that millennials with a positive financial attitude tend to demonstrate higher levels of financial literacy and efficacy.Patterns traced from SEM and the correlation matrix paint a convergent image of the relationships investigated in this study.

Results and discussion
By comprehensively uncovering associations between various financial factors and spending behavior using SEM, this study offers a nuanced understanding of millennials' financial decision making.The detailed breakdown of spending patterns previously discussed indicates a notable variability in the percentage of spent income, suggesting diverse total spending behaviors among participants.The pattern of expenditure was consistent when it came to beer and wine, with 93.7% of respondents spending 10% or less of their income in this area.Demonstrating the suitability of identified variables, CFA was employed with reasonable fit indices (i.e., RMSEA, TLI, CFI, SRMR) for financial literacy, financial attitude, financial efficacy, and spending.Additionally, the SEM path diagram visually depicted the proposed financial behavior framework, and the parameter estimates quantified the intensity and direction of relationships among key financial constructs.
The positive correlations found among financial literacy, financial attitude, and financial efficacy align with the findings of Yanto et al.  2022), which highlight the interconnectedness of the three factors while underscoring the essence of demonstrating self-control, possessing a solid financial knowledge base, and embodying confidence in financial decision-making processes among millennials.An observed interplay among the mentioned variables suggest that millennials with higher financial literacy are more likely to have optimistic views towards financial management and enthrall greater efficacy in their financial decisions.The synergy among these factors points to a comprehensive strategy for financial well-being, where confidence, attitude, and knowledge jointly contribute to wise and sensible financial choices.
In contrast to the weak association observed by Hashim et al. (2022) between spending behavior and financial literacy, this study was not able to trace a statistically significant relationship.Nevertheless, it revealed that spending and financial attitude has a significant adverse connection (b = -0.02963,β = -0.1759,p = 0.034), which could imply that millennials who have a more optimistic outlook on money typically behave more responsibly with regard to spending.This finding resonates with the assertions of Sotiropoulos and d'Astous (2013) and Ramli et al. (2022) advancing that a high degree of financial attitude prevents millennials' propensity to overspend while decreasing their tendency to experience financial fragility.
The present study found that, specifically within the category of beer and wine, respondents demonstrated a consistent and low standard deviation in the percentage of income spent-mostly 10% or less.In contrast, Murray's (2021) observed an overall trend of increased alcohol spending among millennials, challenging claims that millennials are negatively impacting the alcohol industry.
This inference suggests a general rise in alcohol consumption and expenditure within this demographic, indirectly challenging Murray's broader observation of increased alcohol spending among millennials.Supporting the idea that millennials exhibit a more consistent pattern in their alcohol spending, Conley & Lusk (2019) diverged from the path of Murray (2021) as they elucidate that millennials are more likely to demonstrate scrupulous wine purchasing decisions by relying on their previous knowledge and beliefs, possibly limiting their alcohol spending.Overall, these observations offer indispensable information for the current discourse on the financial behavior of millennials and provide practical applications for academics and experts working in the field of financial decision-making.

Conclusion and recommendations
This study examined millennials' financial decision-making habits using the TPB, taking into account elements including financial literacy, financial attitude, and financial efficacy.
Strong positive connections between financial literacy, financial efficacy, and financial attitude were found through the SEM technique, accentuating the interconnectedness of these variables in influencing millennials' financial decisions.The resonance of the findings with earlier studies emphasizes the importance of interdependent collective knowledge, attitudes, and confidence in supporting well-informed financial decision-making.
The study found a notable negative correlation between spending behavior and financial literacy even if it did not uncover a statistically significant relationship between spending behavior and financial literacy.While the study did not find a statistically significant relationship between spending behavior and financial literacy, it identified a noteworthy negative association between spending behavior and financial attitude, which implies that millennials with a more positive financial attitude tend to exhibit more responsible spending behaviors.The detailed breakdown of spending patterns across various categories further enriched the understanding of millennials' expenditure, highlighting both variability and consistency in their financial habits.
Building on the study's findings, several recommendations emerge for stakeholders involved in financial education, policymaking, and research.First, there is a need to improve financial education programs tailored to millennials.By concentrating on realworld applications, programs should address specific aspects of financial decision-making and aim to improve financial literacy, attitudes, and efficacy.
Additionally, they should aim to enhance financial knowledge and include the use of social media and peer influence to boost financial literacy while fostering engagement (Mohta&Shunmugasundaram, 2022;Yanto et al., 2021;Dewi et al., 2020).These programs can be conducted at higher education institutions, government initiatives, and corporate training programs (Salumintao& Cinches, 2019).Incorporating social media and peer influence can leverage the platforms millennials regularly use, ensuring a more tailored and accessible approach to financial education.Furthermore, it is vital to cultivate optimistic financial attitudes among millennials.Campaigns for financial awareness and educational programs should highlight the advantages of sound financial practices and offer doable methods for fostering a positive attitude toward money management as these initiatives may help to promote a culture of finance that values making wise decisions.Customized programs must be created with the various traits and objectives of the current millennial generation and interventions must address nuanced traits and constraints related to various socio-demographic profiles.This strategy ensures that interventions speak to the diverse needs and experiences of millennials.The study recommends continuous monitoring of spending patterns through frequent assessments that identify emerging trends and behaviors, informing the development of targeted interventions and adaptations to financial education programs, contributing to timely responses that address evolving financial challenges faced by millennials.
This article sheds light on various critical findings on the financial behavior of millennials in Laguna, Philippines.However, inherent limitations need to be recognized, highlighting areas of future research.The study relies on self-reported data from survey questionnaires, offering practicality in data gathering but may be prone to recall and social desirability bias often experienced by researchers.
Additionally, since most of the study's respondents work in jobs requiring financial skills, the nature of the work could have heavily influenced their financial knowledge.As such, future research should consider combining self-reported assessments and objective financial indicators while targeting millennials with job types unrelated to finance to address the limitations of this research.
Moreover, because this study is cross-sectional, accentuating data reliability at a specific time, future research should track the changes in millennials' financial behavior over time through longitudinal studies.Finally, the evolving landscape of technology necessitates future research to conduct a broader geographical examination of financial behaviors beyond Laguna, Philippines.These prospective research areas provide promising directions for future inquiries, contributing to a more nuanced understanding of millennials' financial behaviors.

Table 1 :
Categorial Socio-demographic Characteristics of Respondents (N = 431) Hashmi et al., 2021;Çera et al., 2021)al., 2021), leveraging the technique's ability to deal with intricate models and explore nexus among dependent and independent variables.Accentuating the importance of examining endogenous latent variables, such as financial literacy, financial attitude, financial efficacy, and spending behavior, the model incorporates a comprehensive set of three latent variables comprising aspects of financial

Table 2 :
List of Latent Variables in the Model Note: CA = Cronbach Alpha, AVE = Average/Mean

Table 3 :
Frequency Table for Observed Variables of Spending Constructs

Table 4 :
Confirmatory Factor Analysis for Latent Variables