Financial Wellness and Empowerment among Members of Non-Stock Savings and Loan Associations in the Philippine Public Safety Sector
DOI:
https://doi.org/10.65339/ijsair.V2.I2.247Keywords:
Empowerment, Financial Wellness, Microfinance, Non-stock savings and loan associations, Philippines; public safety personnelAbstract
This study investigates the financial wellness and degree of empowerment among members of Non-Stock Savings and Loan Associations (NSSLAs) in the Philippine public safety sector, particularly personnel of the Philippine National Police. Anchored on financial wellness theory (CFPB, 2017; Netemeyer et al., 2018) and empowerment theory (Zimmerman, 1995; Kabeer, 1999), the research examines how institutional credit influences both financial stability and household agency. A descriptive–correlational design was employed, with data collected from 398 randomly selected respondents in Metro Manila using a structured questionnaire. Financial wellness and empowerment were measured through weighted mean analysis, while relationships among income, loan utilization, and empowerment indicators were analyzed using Chi-square tests, Cramer’s V, and the Wilcoxon signed-rank test. Findings reveal a normal level of financial wellness alongside a high degree of empowerment. Respondents demonstrated strong repayment discipline and improved access to essential services and asset ownership following loan utilization. However, savings adequacy remained limited, and loan deductions significantly constrained income, indicating moderate financial resilience. Significant relationships were found between income and loan frequency, as well as between household improvements and empowerment indicators, confirming the rejection of the null hypothesis. The study highlights a “structured credit paradox,” where institutional credit enhances empowerment but may simultaneously constrain long-term financial stability. The study concludes that financial access, empowerment, and resilience do not necessarily progress simultaneously, particularly within payroll-deducted lending systems. It recommends strengthening debt monitoring, integrating financial capability programs (Lusardi & Mitchell, 2014), and designing loan products that promote savings alongside credit access. The study aligns with SDG 8 (Decent Work and Economic Growth) and SDG 1 (No Poverty) by addressing financial stability and vulnerability among salaried workers. It contributes to socio-economic and institutional sustainability by informing policies that balance financial inclusion with long-term financial resilience.
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