Financial Management Literacy: Its Impact on School Operations Performance of Higher Education Institutions in Sulu, Philippines

Abstract

This study investigates the demographic profile and financial management literacy of finance personnel across various Higher Educational Institutions (HEIs), focusing on how factors such as age, gender, marital status, eligibility, educational attainment, employment status, training experiences, and job designations influence their financial competencies. The research evaluates the extent of financial management literacy in key areas—planning, budgeting, implementation, monitoring, evaluation, and reporting—and examines its correlation with staff performance in instructional, research, extension, and production activities. The findings reveal that while finance personnel exhibit a diverse demographic profile, these attributes do not significantly impact their performance or financial management literacy. Despite this, finance personnel demonstrate proficiency in essential financial skills, though there is room for strategic enhancements to improve institutional operations further. Financial management literacy positively influences school operations performance across various functions, but its impact alone is insufficient to drive substantial improvements. Demographic factors show minimal and largely non-significant effects on both financial literacy and operational performance, suggesting that other underlying variables play a more prominent role in shaping outcomes. This study underscores the complexity of factors influencing institutional effectiveness and highlights the need for a multifaceted approach to professional development. To achieve meaningful progress, HEIs should integrate financial management training with efforts to strengthen organizational culture, optimize resource allocation, and promote collaborative practices. Future research should explore additional variables, such as leadership styles, institutional policies, external partnerships, and socio-economic contexts, to enrich the framework guiding finance personnel’s roles within the education sector. Significantly, enhancing institutional performance requires a comprehensive strategy that addresses both individual competencies and systemic factors holistically.