ABSTRACT
This study investigates how investment and saving attitudes impact the financial decision-making abilities of Overseas Filipino Workers (OFWs) in Dubai, United Arab Emirates, particularly emphasizing the mediating role of financial literacy. Utilizing a quantitative research design, the study explores how active financial participation, especially in Investing and Saving influences the economic control and confidence of OFWs. A key aspect of this research is the hypothesis that financial literacy serves as a crucial link, enabling individuals to convert basic financial actions into a state of psychological and practical empowerment.
Results of the Study indicate a state of Full Mediation. While respondents possess a robust investment and saving attitude, this internal motivation has no significant direct impact on advanced financial decision-making (β = 0.1733, p = 0.1706). Instead, the Will to save only translates into Action when channeled through the Skill of financial literacy (β= 0.6004, p = 0.000). The data further highlights a Knowledge-Action Gap, where OFWs demonstrate strong basic discipline in budgeting and debt management but remain in a trap state regarding high-level wealth building, such as portfolio diversification and long-term planning.
In conclusion, the study underscores that a positive attitude is merely latent capital without the technical intervention of literacy; even the most disciplined saver will hesitate to enter complex investment markets. The implications are significant for policy design, government agencies, and consular posts must shift from purely motivational campaigns to technical, skill-based interventions. The Recommendations include the development of structured, community-based financial workshops in the Philippine Consulate in Dubai that provide practical, hands-on training in investment tools. By prioritizing the growth of technical human capital, the Philippine government can empower the diaspora to transition from being temporary remittance-senders to becoming sustainable, long-term wealth-builders.
https://doi.org/10.65494/pinagpalapublishing.147
