Navigating Finances: A Look at How University Staff Manage Their Money

Davao City, Philippines – Financial stability is a cornerstone of well-being for any employee, and those within our universities are no exception. Yet, a recent study of Dr. Exequiel Jr Gono, a professor in the University of Mindanao Professional Schools delves into the financial habits of teaching and non-teaching personnel at a higher education institution in Region XI, reveals a complex picture: while both groups share common financial competencies, their unique professional realities lead to distinct financial challenges and priorities. The findings underscore a critical need for universities to move beyond generic financial advice and adopt tailored strategies to truly support their workforce.

The Financial Landscape in Academia
For many, the world of academia might seem stable, but both teachers and non- teaching staff often grapple with financial hurdles. Teachers, for instance, can face fluctuating incomes due to additional work like consultancies or research grants, alongside the demands of continuous professional development. Previous studies in the Philippines have highlighted that public school teachers, in particular, struggle with financial literacy and budgeting, often leading to debt and stress. The recent COVID-19 pandemic only amplified these existing pressures.

Non-teaching personnel, while typically having more stable jobs, often contend with lower incomes, making budgeting, saving, and debt management equally challenging. Understanding these varied financial behaviors is crucial for fostering overall well-being within the university community.

Unpacking Financial Realities: A Local Study
To get a clearer picture, a quantitative study was conducted involving 333 teaching and 238 non-teaching personnel from a higher education institution in Region XI. Dr. Gono used a robust statistical method to identify the underlying dimensions of financial management, ensuring objective and reliable insights. Preliminary interviews with staff and a financial expert also helped shape the survey, ensuring comprehensive coverage of financial aspects.

Key Findings: Two Distinct Paths
The study revealed a fascinating divergence in financial priorities between the two groups:

For Non-Teaching Personnel: A Focus on Long-Term
Security Generally having more stable, though often lower, incomes, non-teaching staff showed a strong inclination towards long-term financial security. Their financial management profiles highlighted several key factors, with retirement planning and preparedness emerging as the most dominant concern. This group consistently contributed to retirement plans, set specific retirement goals, and sought expert advice, aligning with broader trends among individuals with stable employment.

Other significant factors for non-teaching personnel included:
• Investment Awareness and Decision-Making: A deliberate approach to managing investments.
• Emergency Fund Management: A clear readiness for unexpected expenses.
• Debt Management and Financial Discipline: A structured approach to borrowing.
• Smart Spending and Purchase Discipline: Emphasis on daily financial decisions and distinguishing needs from wants.
• Budgeting: Regular creation of monthly budgets.

Interestingly, while savings behavior and goal orientation was present, it was identified as the least prioritized factor, suggesting a stronger focus on retirement over short-term savings.

For Teaching Personnel: Navigating Fluctuating Incomes and Debt
Teachers, often experience more variable incomes, face unique financial challenges. For this group, insurance awareness and protection planning was the most dominant factor, reflecting a strong emphasis on financial security through comprehensive insurance coverage. Other key factors for teaching personnel included:
• Emergency Preparedness and Goal-Oriented Saving Behavior: A proactive attitude towards saving for unforeseen events.
• Responsible and Goal-Driven Investment Behavior: A conscious approach to building wealth aligned with personal goals.
• Structured Budgeting and Expense Monitoring: Disciplined financial planning in daily life.
• Debt Management and Financial Prudence: Responsible borrowing practices.

Crucially, the study identified two unique challenges for teachers: struggles and strategies in debt recovery and financial constraints and the challenge of building savings. These factors highlighted ongoing financial pressures, often leading to a "paycheck-to-paycheck" existence and borrowing due to unexpected expenses, likely influenced by variable income or delayed compensation.

Shared Ground: Core Financial Competencies
Despite these distinctions, both teaching and non-teaching personnel demonstrated common financial competencies in areas such as budgeting, insurance protection, emergency preparedness, investment behavior, and debt management. This suggests a baseline level of financial literacy, possibly fostered by institutional programs or shared economic contexts.

Dr. Gono’s Recommendations: Tailored Paths to Financial Well-being 
The study strongly advocates for strengthening financial literacy programs that are specifically tailored to the distinct realities of each group, moving beyond a one-size-fits- all approach.

For Teaching Personnel: Given their unique struggles with debt and savings, targeted interventions are crucial. Recommendations include:
• Providing financial counseling to help manage the emotional burden of debt.
• Offering structured debt repayment assistance to help educators regain stability.
• Ensuring access to emergency relief funds to mitigate the impact of unexpected expenses.
• Reviewing institutional policies related to salary disbursement and financial assistance to address any inconsistencies.

For Non-Teaching Personnel: Building on their strength in retirement planning, the study suggests:
• Further institutionalizing long-term financial planning initiatives, such as retirement simulations and personalized advisory services.  Introducing practical budgeting tools and smart spending incentives to reinforce their existing focus on daily financial decisions.

Cross-Cutting Recommendations for Both Groups:
Promoting automated saving systems to encourage consistent contributions. Encouraging regular contributions to emergency funds.
Offering investment literacy sessions focused on secure, goal-driven investing, while also educating personnel on identifying and avoiding financial scams.

A Financially Empowered Workforce
Dr. Gono’s research underscores that personal financial management is not a singular issue. By recognizing and actively addressing the specific financial challenges and priorities of both teaching and non-teaching personnel, higher education institutions can develop more focused and effective financial wellness programs. These tailored approaches promise to foster a more financially empowered and resilient university workforce, ultimately contributing to their overall well-being and job satisfaction, and strengthening the entire academic community.