BIBLIOGRAPHY DEBAN, JAE ANN S. APRIL...
BIBLIOGRAPHY
DEBAN, JAE ANN S. APRIL 2007. Attitudes of Members Towards Savings in
the Kabayan Multi-Purpose Cooperative (KCMPC) in Central, Kabayan, Benguet.
Benguet State University, La Trinidad, Benguet.
Adviser: Marie Klondy T. Dagupen, PhD
ABSTRACT
This study was conducted in Central, Kabayan, Benguet in January 2007 to
determine the profile of the respondents, the attitudes of the members towards savings
and to find out the problems encountered by the members with regards to savings.
The source of data in the study were 100 respondents who were chosen at
random. The data were gathered through survey questionnaire. The questionnaire made
use of attitude scales described as: Strongly Agree (SA); Agree (A); Uncertain (U);
Strongly Disagree (SD); and Disagree (D). Each was given an equivalent numerical
value: SA=5; A=4; U=3; SD=2; D=1.
The three highest mean ratings where the respondents agreed on with regards
savings were: a) savings provides an emergency fund; b) savings provides money to meet
budget by readily making available cash when needed; and c) savings can be used for
specific future use.
Some of the members were undecided or uncertain whether their membership in
the cooperative is for the purpose of saving only.
Accessibility of the cooperative is the primary reason that encouraged the
respondents to save. Members maintained their savings in the cooperative by depositing
monthly. With regards to the problems encountered, most of the members cannot
withdraw because they forget their passbook with them and that the cooperative savings
were not clear to them.
Most of the respondents’ suggestion to improve savings in the cooperative was:
higher interest rate and policies should be clear and understandable.
With the aforementioned results, the following recommendations are proposed: a)
policies of the cooperative on savings should be explained well to the members, b) it is
also important for the cooperative to instill to the member other values of saving aside
being a source of “emergency fund”, c) the staff or officers should orient and familiarize
the members about savings or include this during pre-membership education seminar
(PMES).
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TABLE OF CONTENTS
Page
Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
INTRODUCTION
Rationale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Objectives of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Importance of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Scope and Limitation of the Study . . . . . . . . . . . . . . . . . . . . . . . . . .
3
REVIEW OF LITERATURE
4
METHODOLOGY
Locale and Time of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Respondent of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Data Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Data Gathered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
RESULTS AND DISCUSSION
Profile of the Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Attitudes Towards Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Reasons for Savings in Cooperative . . . . . . . . . . . . . . . . . . . . . . . . . 22
Frequency of Depositing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
iii
Problems Encountered by the Members
Related to Saving in the Cooperative . . . . . . . . . . . . . . . . . . . . . . . .
23
Member’s Suggestions on the Improvement
24
of the Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27
LITERATURE CITED
29
APPENDICES
Letter to the Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
Survey Questionnaire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
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INTRODUCTION
Rationale
Success is the product struggles and trails. Those who persevere will succeed. In
the Philippines, cooperatives are considered institutions for economic growth and
development.
Kabayan Multipurpose Cooperative (KMPC) is one of the most stable cooperative
in the country, in spite of the various problems it has encountered through the years. It is
also the oldest among the cooperatives in Kabayan. The organization started with the
initiative of Mr. Florentino S. Merino, a resident from the area providing financial
assistance to the farmers. With the help, encouragement and moral support of the parish
priest Rev. Alfonso Coymans; the Kabayan Parish Catholic Farmers Association was
formed or organized on July 16, 1966. Not to limit its membership only to Catholic
farmers, the Kabayan Parish Catholic Farmers Association was converted to Kabayan
Credit Cooperative Incorporated with registration No. 5373 with MLGCD/BCOD on
November 28, 1972. Although it was registered as a multipurpose cooperative on April
02, 1994 with the Cooperative Development Authority (CDA), at the start KMPC had
only sixty members, which composed of 40 males, and 20 females until it grew up to
1,090 members at present. It operates as a province wide membership to promote
savings, extend loans and promote wise use of money among its members. Membership
composition of the cooperative includes government employees, farmers and
entrepreneurs. Miranda (2001) stated that savings bank is merely the culmination of
attempts of thrifty people to provide for the proverbial “rainy day”. Workmen practically
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
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in all parts of the world have organized societies among themselves with the primordial
purpose of saving a part of their earnings in order to meet the contingencies of slack
times, sickness, old age and death.
There are Filipinos who can afford to save a little of their income. Because the
amount is not big, they are not inclined to deposit the money in banks for safety or invest
it for interest. The organization of savings cooperative gives the small savers a
convenient institution 9Jayoma, 1978).
Taking the objectives of the KMPC into consideration, a study of the attitudes of
members towards saving is necessary in order to introduce policies or interventions to
promote savings in the cooperative among members.
Statement of the Problem
Considering the aforementioned situation, this study seeks to describe the
attitudes of the KMPC members towards savings in answer to the following questions:
1. What is the profile of KMPC members?
2. What are the attitudes of members towards savings?
3. What are their problems with regards savings?
Objectives of the Study
The study aims to:
1. Determine the profile of KMPC members.
2. Determine the attitudes of the members towards savings.
3. Find out the problems with regards savings.
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
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Importance of the Study
The findings of this study will serve as information for the members of KMPC
and any other financial institutions on savings attitude of people.
Furthermore, the study will serve as a reference material for economics and
agribusiness students, especially the cooperative management majors.
Scope and Limitation of the Study
This study concentrates on determining the profile of 100 KMPC members, the
attitudes of the members toward savings, and their problems with regards savings.
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
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REVIEW OF LITERATURE
Attitudes
Aldog and Stearns (1987), defined attitude as the beliefs, feelings and behavioral
tendencies held by the person about an object, event, or person (called the attitude
object).
Lauer and Handel (1983) as cited by Darcio (2001) recognize that the nature of
attitudes; their interrelationship and their interrelationship and their relationships to
behavior are complex. This complexity underlies the apparent disparity between attitudes
and overt behavior as a number of researchers have shown. This can point out that
attitudes may not reflect inadequacies in research rather than that lack of relationship
between attitudes and behavior.
According to Ivancevich (1994), attitudes are determinants of behavior, because
they are linked with perception, personality and motivation. An attitude is a mental state
of readiness learned and organized through experience, exerting a specific influence on a
person’s response to people, object and which it is related. This definition of attitudes
has certain implication for the managers. First, attitudes are learned. Second, an attitude
defines one’s predispositions toward given aspects of the world. Third, attitudes provide
the emotional basis of one’s interpersonal relations and identification with others. And
fourth, attitudes are organized and are close to the core of personality. Some attitudes are
persistent and enduring. Yet, like each of the psychological variables attitudes are subject
to change.
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
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An attitude is a positive or negative tendency in relation to an object. An attitude
varies in degree from being extremely favorable to extremely unfavorable. One, which is
neither for nor against something neutral. An attitude that includes both positive and
negative tendencies is ambivalent.
Furthermore, attitudes are likes and dislikes, affinities for, and aversions to
objects, person, groups, situations and any other identifiable aspects of the environment
including abstract ideas and social policies. We often express our attitudes in opinion
statement but even though they express our attitudes in opinion statement but even
though they express feelings, attitudes are linked to cognition, specifically to beliefs
about the attitude objects (Dequit, 2003).
Care about Attitudes
It might seem that managers should be concerned about employees’ behavior, not
their attitudes (Aldog and Stearns, 1987). In fact, there are a number of reasons why
employee attitudes should be of concern to managers. First, attitudes maybe related to
behavior. Second, work attitudes maybe related to things of direct concern to the
employee such as stress levels, ability to sleep, and attitudes toward other aspects of life.
Furthermore, attitudes are important for their own sake, independent of their
consequences. Employees spend half their waking lives at work. Caring managers may
want to learn how to make the working hours of employees more pleasant.
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
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Measuring Attitudes
Social psychologist typically measures attitudes by having subject’s judge objects
on scale that range from “ good to bad” or “agree to disagree”.
A number of methods have been devised to measure attitudes. These commonly
consist of number of statements on some topic, on which people are divided, such as
attitudes toward labor unions, church, political radicalism or conservatism, women’s right
and so on. The scales have proven useful in discovering the attitudes of various parts of
the population on important issues and in studies of attitude change.
According to Gordon (1991), an attitude is a consistent predisposition to respond
to various aspects of people, situation on objects. Since attitude is a hypothetical
construct and cannot be observed, we only infer it from a person’s behavior or verbal
expression. We might, for example determine an individuals job for satisfaction by
inferring it from his or her general demeanor on the job or by asking the person to
describe his attitude. The strength of an attitude depends first on the type of experience,
the stronger the attitude. Second, the attitude strength increases along with the number of
times it has been expressed the more often a worker expresses dissatisfaction with his or
her job, the stronger the attitude becomes. Determining attitudes should be part of the
description phase of the diagnostic approach.
Moreover, attitudes are sometimes linked to actions we take with respect to the
attitude objects. Accordingly, social psychologists have studied as one component of
three-part-systems. Attitudes cannot be objectively judged to be right or wrong.
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
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Saving
The Member-Saving Operations (MSO) is consistent with Article 5 of the
Cooperative Code, which states that the first purpose in which a cooperative may be
organized is to encourage thrift and savings mobilization among members (Cooperative
Financial Intermediation Development Program Manual, 1997).
Miranda (2001) stated that the rules of governing deposits and withdrawals in
savings are printed in the passbook. All deposits and withdrawals shall be made only with
the proper presentation of passbook. In the case of withdrawals, it must be made by the
depositors ion person by filling out a withdrawal slip-receipt form furnished by the bank.
However, in certain exceptional cases, the bank may permit a person other than the
depositor himself to make withdrawals, with the written authority of the depositor given
in such form and with such authentication, as the bank may seem necessary.
Savings require foregoing consumption today in order to be able to consume more
tomorrow. Individual, businesses, government, and countries can save. An individual’s
saving is the difference between the person’s disposable income and his/her consumption
expenditures. Disposable income minus taxes paid to the government plus transfer
payment, such as employment insurance benefits. Consumption expenditures cover a
variety of expenses, such as groceries and house rent.
Most families do not question the importance of a family “nest egg”. Savings in
the form of bank accounts, savings bonds, money in credit unions, or in some other form,
which can quickly and easily be converted into cash, are essential to sound financial
management. In addition to the amount on deposit In savings accounts or with other
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
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financial institutions, most families save for the future through deductions from their
earnings for social security and private pension plans (Hobart et al., 1977).
Money used for some forms of life insurance, medical and hospitalization
insurance and for payments on the principal of a mortgage is also considered as a form of
savings. In addition to the life insurance provided for the production of dependents, half
of one year’s income should be available in ready cash. After such an emergency fund
has been established, then the family may be ready to consider other desirable
expenditures. These might include savings for home, a college education for the children,
or for a long vacation (Hobart et al., 1977).
Saving is important to the economic progress of a country because of its relation
to investments. If there is to be increase in productive wealth, some individuals must be
willing to obtain from consuming their entire income. Progress is not dependent on
saving alone; there must also be individuals willing to invest and thereby productive
capacity (New Encyclopedia Britannica, 1997).
Objective of Savings Program
Savings mobilization aims to create awareness/consciousness and encourages
members to participate in cooperative savings generation; develop self-reliance among
cooperatives through generation of funds that will finance their own operations, and
institutionalize the mechanism in usual enterprise or members livelihood project and
expansion of cooperative projects. (CDA, 1998).
Higher income enhances an individual’s ability to save, and higher interest rates
also encourage saving.
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
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Savings protect an individual from uncertainties regarding future income and
expenses. In the event of an accident or job loss, the individual can use past savings.
Unused savings can be willed to love ones. Savings is a key to economic growth and
development, because savings are used to finance investment in new capital. The
importance of Savings are:1) effective way to increase funds, which can be converted
into cash if necessary; 2) the earlier savings begin, the greater the impact of
compounding. The reasons for savings are: 1) provides money to meet budget by making
available cash reserves; 2) provides an emergency fund in the event of financial hardship;
3) enables saver to put aside money for a specific future purpose.
Savings are also an excellent form of protection against want in case of sickness,
during old age, or in the event of death of a person who has dependents (Grabhe et al.,
1966). It is true that the federal government and many businesses provide pensions for
retired workers. Also through insurance it is possible to decrease the risk of loss that is
caused by the sickness or the death of a wage earner. But pension and insurance usually
take care of one’s minimum needs only. Savings provide the extras that are often so
desirable.
Thus, the rationale for the cooperative savings mobilization program is to gather
more funds for more productive endeavors that would increase the earnings of the
members (CDA, 1994).
Constraints in Savings
Mobilizing savings is easier said than done especially for low-income earners
unless teamed with patience and innovativeness, savings promoters find it difficult to
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
10
convince and motivate members to save due to low income. Also, because of low
earnings, amounts accumulated are usually small to cover collection and other
administrative cost and make savings mobilization cost (Savings Mobilization for
Cooperative, 1994).
Furthermore, the problem faced by cooperative after saving operation launching is
often how to sustain member’s enthusiasm in patronizing the member savings facility
(Cooperative Financial Intermediation Development Program, 1997).
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
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METHODOLOGY
Locale and Time of the Study
The study was conducted in Central Kabayan, Benguet on January 2007. Figure 1
shows the location of the study.
Respondents of the Study
The respondents of the study were the member-savers of Kabayan Multi-purpose
Cooperative (KMPC). There were 100 respondents chosen at random from 1,090
members. Substitution was done for the identified respondents who were not available.
Data Collection
The researcher to gather data used survey questionnaire. The researcher also
interviewed some key informants to get details. The questionnaire made use of attitude
scale with the following description: Strongly Agree (SA); Agree (A); Uncertain (U);
Strongly disagree (SD); and Disagree (D). Each was given an equivalent numerical value:
SA = 5; A = 4; U = 3; SD = 2; and D =1.
Data Gathered
The data gathered include: a) profile of the KMPC members; b) attitudes of the
members toward savings; and c) problems encountered by the members towards savings.
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
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Data Analysis
The data gathered in this study were tabulated and analyzed with the use of
frequency tables and percentages.
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
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RESULTS AND DISCUSSION
Profile of the Respondents
Table 1 shows the general information of the respondent’s according to age, sex,
civil status, number of household members, number of years of membership in the
cooperatives, monthly salary, kind of membership, educational attainment and
occupation.
Age. Out of the 100 respondents, 29% are within the age bracket of 31 to 40
years old, 21% within 41 to 50, and 51 to 60 respectively. There were 11% within 61 to
70 years and 10% within 21-30, 5% within 71 to 80, 2% within 10 to 20 year and 1%
within 81to 90 years. The mean age of the respondents is 46.19 years.
Sex. Majority (65%) of the respondents are female while 35% are male.
Civil status. Eighty-seven (87%) of the respondents were married, 12% were
single and 1% widower.
Number of household members. Almost all (99%) of the respondents have 1 to
10 household members and only 1% have 11 to 20 members.
Number of years of membership. Majority (59%) of the respondents have been
members for about 1 to 10 years, 22% have been members for 11 to 20 years, 12% have
been members for 21 to 30 years and 4% have been members for 31 to 40 years. The
average number of years of membership in the cooperative is 12.81 years.
Monthly salary. Thirty two years (32%) of the respondents have a monthly salary
range within Php11,000 to Php20,000, while 25% are within Php1,000 to Php10,000
salary range.
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
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Kind of membership. Ninety-two percent (92%) of the respondents are regular
members, which means that they have capital subscription and paid the minimum paid –
up capital while 8% are associate members.
Educational attainment. A great majority (63%) of the respondents have gone to
college, 21% have gone to secondary school, 14% have gone to elementary and 2%
acquired a vocational course. This should be an advantage for the cooperative in terms of
sharing their knowledge for the common good and to have a better understanding of the
roles of the organization.
Occupation. More than half (52%) of the respondents were government
employees composed of teachers, clerks, bookkeeper, laborer and municipal officials.
This is followed by farmers (32%), housekeepers (11%), retirees (3%) and private
employees (2%).
Table 1. Profile of the respondents
CHARACTERISTICS
FREQUENCY
PERCENTAGE
(%)
Age (years)
11 – 20
2
2
21 – 30
10
10
31 – 40
29
29
41 – 50
21
21
51 – 60
21
21
61 – 70
11
11
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
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Table 1. continued ..
CHARACTERISTICS
FREQUENCY
PERCENTAGE
(%)
71 – 80
5
5
81 – 90
1
1
Mean Age
46.19
Sex
Male
35
35
Female
65
65
TOTAL
100
100
Civil Status
Married
87
87
Single
12
12
Widower
1
1
TOTAL
No. of Household Members
1 – 10
11 – 20
TOTAL
Number of Years of Membership
1 - 10
59
59
11 – 20
22
22
21 –30
12
12
31-40
7
7
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
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Table 1. continued …
CHARACTERISTICS
FREQUENCY
PERCENTAGE
(%)
Mean
12.81
Monthly Salary (pesos)
1,000.00 – 10,000.00
27
27
11,000.00 – 20,000.00
32
32
Kind of Membership
Regular
92
92
Associate
8
8
TOTAL
100
100
Educational Attainment
Elementary
14
14
Secondary
21
21
College
63
63
Vocational
2
2
TOTAL
100
100
Occupation
Farmers
32
32
Government employees
52
52
Housekeepers
11
11
Retirees
3
3
Private employees
2
2
TOTAL
100
100
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
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Attitudes Towards Savings
Table 2 presents the attitudes of members towards savings, which would
contribute to cooperative success. The weighted mean was derived to get the ratings of
the respondents towards a particular attitude.
The three highest mean ratings where the members agreed on with regards
savings were; a) savings provides an emergency fund (4.55); b) provides money to meet
budget by readily making available cash when needed (4.40) and, c) savings can be used
for specific future use (4.31).
Savings attitude statements with a mean rating of 4 (-4.16), where respondents
also agreed that savings can protect an individual from uncertainties regarding future
income and expenses; savings can be used in the event of an accident or job loss; savings
can be used to finance investments on new capital; and savings in the cooperative makes
the saver happy. These findings supports the reason why individuals saved as contained
in the Encyclopedia Americana (2002) that individuals save for several reasons, including
the desire for unexpected contingencies, such as, illness or loss of a job; the desire to
provide for some expected future needs, such as illness or loss of a job; the desire to
provide for some expected future needs, such as college expenses of children or
retirement; the desire to acquire certain goods or services, such as a car or vacations; and
the opportunity to gain financial rewards. Some of these motives resulted from the fact
that families do not receive income at the same time they wish to spend it. This maybe
related to the age of the family members, leading to save when the family is young (to
accumulates assets for retirement) and to dissaving at retirement or when illness strikes.
This explanation has been called the “life cycle” theory of saving. Economist have
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
18
emphasized that families adjust consumption spending to the level of income that they
expect on a permanent basis, leading them to save much of windfall income (such as
lottery winnings) and to maintain spending in case of a temporary reduction of income
(job loss). This explanation of the course of saving has been called the “permanent
income” hypothesis.
Many of the member agreed that saving is an effective way to increase
cooperative funds which can be converted into cash if necessary and that it can be used to
finance investment.
Some of the members agreed that savings is an excellent form of protection in the
event of death of a person (3.99 weighted mean). Also some of the members were
undecided or uncertain whether their membership in the cooperative is for the purpose of
saving only.
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
Table 2. Attitude of members towards saving in the cooperative
ATTITUDE SCALE
Strongly
Agree
Uncertain
Strongly
Disagree
Total
ATTITUDES
agree
disagree
WEIGHTED
F
%
F
%
F
%
F
%
F
%
F
%
MEAN
Savings is an effective way to
increase cooperative funds which
can be converted into cash if
necessary
35
35
45
45
19
19
-
-
1
1
100
100
4.13
Savings protect an individual
from uncertainties
38
38
46
46
10
10
3
3
3
3
100
100
4.13
Savings can be used for specific
future use
48
48
41
41
7
7
1
1
3
3
100
100
4.31
Savings provide money to meet
budget by readily making
available cash when needed
51
51
40
40
8
8
-
-
1
1
100
100
4.40
Savings provides funds for
emergency purposes
61
61
36
36
1
1
1
1
1
1
100
100
4.55
Savings can be used in the event
of an accident or job
42
42
38
38
13
13
3
3
4
4
100
100
4.11
Savings can be used to finance
investment in new capital
26
26
58
58
13
13
1
1
2
2
100
100
4.05
Savings is important to buy
things wanted/needed
25
25
51
51
19
19
-
-
5
5
100
100
3.91
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
20
Table 2. continued …
ATTITUDE SCALE
Strongly
Agree
Uncertain
Strongly
Disagree
Total
ATTITUDES
agree
disagree
WEIGHTED
F
%
F
%
F
%
F
%
F
%
F
%
MEAN
Savings is a protection in the
event of the death of a person
who has dependents
25
25
54
54
18
18
1
1
2
2
100
100
3.99
Savings is the purpose for
membership in the cooperative
23
23
46
46
20
20
3
3
8
8
100
100
3.73
Saving in the cooperative makes
one happy
38
38
50
50
6
6
2
2
4
4
100
100
4.16
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
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Reasons for Saving in Cooperative
Table 3 shows that 66% out of 100 respondents ranked accessibility of the
cooperative as one (1) followed by 34% of the respondents who also gave a rank of 1 to
“can withdraw money anytime”. The result confirms the finding of Darcio (2001) that
the highest encouraging factors for members to patronize saving is the location of the
cooperative, and saving must be withdrawable anytime. Twenty eight (28%) of the
respondents likewise gave “higher interest” rank 1, while 24% ranked 1 to “low
minimum amount required to earn interest” as “1”.
Table 3. Reasons for savings
REASONS
RANK
1
2
3
4
F
%
F
%
F
%
F
%
1. Accessibility of the
cooperative
66
66
20
20
9
9
5
5
2. Can withdraw money
anytime
34
34
44
44
14
14
8
8
3. Higher interest rate
28
28
21
21
26
26
25
25
4. Low minimum amount
required to earn interest
24
24
28
28
28
28
20
20
Frequency of Depositing in the Cooperative
There were 52% who patronize or maintain their savings in a cooperative by
regularly depositing every month. This finding is in support to the study of Darcio (2001)
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
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22
that most of the members patronized the saving through regularly depositing. Eleven
percent (11%) deposit weekly, 8% deposit annually, 5% deposit semi-annually while
23% are irregular in depositing money. This means that they deposit only if they have an
extra money (Table 4).
Table 4. Frequency of depositing in the cooperative
FREQUENCY OF DEPOSITING
FREQUENCY
PERCENTAGE
Daily
1
1
Weekly
11
11
Monthly
52
52
Semi-annually
5
5
Annually
8
8
Irregular
23
23
TOTAL
100
100
Problems Encountered by the Members
Related to Saving in the Cooperative
Table 5 shows the problems encountered by respondents related to saving in the
cooperative. Thirty-two (32%) of the respondents mentioned that they cannot withdraw
because they forgot their passbook and 31% do not understand the cooperative policies
on savings. Policies made sometimes flexible depending on who is the person making
transactions. According to Darcio (2001), saving policy is the most important aspect of
savings that must be improved in order to motivate or encourage people to save. Twenty-
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
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five (25%) indicated other problems such us; salary is not enough for family expenses,
thus they cannot save regularly in the cooperative; the cooperative is closed on Saturday s
and Sundays; difficulty in budgeting an amount for savings; and negligence in setting
aside money for savings. Thirteen percent (13%) mentioned difficulty in making
authorization letter in case the saver cannot personally withdraw. Only 4% said that they
do not have the time to go to the cooperative to deposit.
Table 5. Problems encountered by the members in saving in the cooperative
PROBLEMS ENCOUNTERED
FREQUENCY PERCENTAGE
Cannot understand cooperative policies on savings
31
31
Do not have time to go to the cooperative to deposit
4
4
Cannot withdraw because they forget passbook
32
32
Difficulty in writing authorization letter in cases that
13
13
the depositor cannot withdraw
Income is not enough for family expenses, thus
25
25
nothing to save
TOTAL
100
100
Members’ Suggestion for the Improvement
of Savings
Table 6 shows that 42% indicates that interest rate for savings in the cooperative
should be higher, 25% commented on the policies which they cannot understand. Policy
as mentioned by Darcio (2001), is the most important aspect of savings that must be
improved. For percent commented on the transparency of financial records, 3%
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
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mentioned on the seminars and orientation to new members, 2% mentioned that
cooperative should include savings campaign during PMES. One percent (1%) that the
improvement on the mode of collecting savings, like giving incentives to savers, and the
staff and officer to attend more seminars to improve costumer services.
Table 6. Members’ suggestion for the improvement of saving in the cooperative
SUGGESTIONS
FREQUENCY PERCENTAGE
Policies should be cleared, understandable
25
25
Interest rate should be higher
42
42
Transparency of financial records
4
4
Includes saving campaign during PMES
2
2
Improve mode of collecting savings
1
1
Giving incentives to savers
1
1
Staff and officers to attend more seminars to
1
1
improve customer service
Seminars, orientation to new members
3
3
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This research was conducted to determine the attitudes of the members of the
KMPC towards savings and to find out their problems encountered with regards to
savings.
The mean age of the respondents is 46.19 which implies that as people get older
they tend to save more for their families. Majority of the respondents were females,
married and with family size ranging from one to ten. Majority of the respondents were
regular members for about one to ten years in the cooperative. In addition, most of them
have gone to college and majority of the respondents were government employees
composed of teachers, clerks and others, then followed by the farmers.
As attitude of the respondents towards savings, most of them agreed on the
following points, a) saving provides an emergency fund, b) savings provides money to
meet budget by making available cash reserves; c) savings can be used for specific future
use. Most of the members also agreed that savings can protect an individual from
uncertainties regarding future income and expenses, also to the statement that savings can
be used in the event of an accident or job loss, and savings can be used to finance
investments on new capital.
Some of the members were undecided or uncertain whether their membership in
the cooperative is for the purpose of saving only.
Accessibility of the cooperative is the primary reason that encouraged members to
save. Members maintained their savings in the cooperative by depositing monthly. With
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
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regards to the problems they encountered, most of them cannot withdraw because they
forget their passbook and that the policies were not clear to them.
Most of the respondents’ suggestions to improve savings in the cooperative were:
higher interest rate and policies should be clear and understandable.
Conclusions
Based on the findings of the study, the following conclusion were drawn:
1. The study shows that the mean age of the respondents is 46.19, which implies
as people get older they tend to save more for their families.
2. Most of the respondents agreed that savings provides an emergency fund in
the event of financial hardship.
3. Most of the respondents were encouraged to save because of the location or
accessibility of the cooperative.
Recommendations
Based from the findings and results, the following recommendations were drawn:
1. The policies of the cooperative on savings should be explained well to the
members. It is also important for the cooperative to instill to the members
other values of saving aside being a source of “emergency fund”. Some
concepts of saving that can be introduced include:
a) A habit of saving instill discipline among members
b) Savings builds a culture of self –reliance
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
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c) Depositing the cooperative enables members to participate in the
business of the cooperative.
2. The staff or officers of the cooperative should orient and familiarize the
members about savings or include it during pre-membership education
seminar (PMES).
3. The members should not even forget their passbook whenever they will
deposit or make withdrawal so they wont be returning for the next day.
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
28
LITERATURE CITED
ALDOG, R. and T. STEARNS. 1987. Management. South-Western Publishing, Co. P 96.
COOPERATIVE DEVELOPMENT ASSISTANCE GROUP, LAND BANK. 1994.
Saving Mobilization for Cooperatives. Pp. 1-25.
COOPERATIVE FINANCIAL INTERMEDIATION DEVELOPMENT PROGRAM.
1997. Manual. Appreciation of Development Concepts and Approaches. Pp. 10-
43.
COOPERATIVE DEVELOPMENT AUTHORITY (CDA). 1998. Manual. Savings
Mobilization and Capital Build-up. P. 3.
COOPERATIVE DEVELOPMENT AUTHORITY (CDA). 1994. Saving Mobilization
for Cooperatives. P. 2.
DARCIO, J. 2001. Savings Mobilization Program Of Primary Cooperatives in the
Province of Benguet. BS Thesis. Benguet State University, La Trinidad,
Benguet. Pp. 34-37.
DEQUIT, F. 2003. Attitudes of Members of Selected Cooperatives in La Trinidad,
Benguet Towards Barrowing and Repayment of Loans. BS Thesis. Benguet
State University, La Trinidad, Benguet. P. 3.
ENCYCLOPEDIA AMERICANA. 2002, International Edition. Volume 24. Republic of
China: Groiler International Inc. P. 313.
NEW ENCYLOPEDIA BRITANICA. 1997. Encyclopedia Britanica Inc. P. 482.
GORDON, J. R. 1991. A Diagnostic Approach to Organizational Behavior. 3rd Edition.
United States of America.
GRABHE, E. J. DEBRUM, and P. HAINES. 1996. General Business for Economics
Understanding. South-Western Pub., Co. 9th Edition. P. 290.
HOBART, C. C. W. BERTHA and Z. HELENE.1977. General Business for Today’s
World Allyn and Bacon. Inc. Pp. 471-472.
INVANCEVICH, J. 1994. Human Resource Management. 6th Edition. University of
Houston. P. 57.
JAYOMA, B. 1978. Cooperative Join. PFCCI Manila. P.290.
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
29
MIRANDA, G. 2001. Essentials of Money, Credit and banking. Published by L and G.
House. Revised Edition. Pp. 360-364.
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
21
APPENDICES
Appendix A. Letter to the Respondents
January, 2007
Sir/Madam;
Greetings!!
I am a fourth year Agribusiness student major in Cooperative Management of Benguet
State University presently conducting a research entitled: “ATTITUDES OF MEMBERS
TOWARDS SAVINGS IN THE KABAYAN MULTI-PUPOSE COOPERATIVE
(KMPC) IN CENTRAL KABAYAN” as a partial requirement for graduation.
In this connection, may I request a portion of your most precious time to answer the
attached questionnaire and please give your honest answer/opinion. Rest assured that all
information you provide will be treated with utmost confidentiality.
Thank you very much for sharing me a part of your time. God Bless!
Sincerely yours,
JAE ANN S. DEBAN
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
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Appendix B. Survey Questionnaire for Member-Saver
1. Profile of Members
*General information
Name _______________________Age ___Sex ____Civil Status______
Number of household members _____Occupation___________________
Number of years in membership ____Monthly Salary___________________
Kinds of membership in the cooperative ______Regular ______Associate
*Educational Attainment
______Elementary ______Secondary _____college _______Vocational
II. Attitude towards savings
Instructions:
please indicate your degree of agreement with the statement below by
Checking the corresponding blank provided for.
SA=strongly agree A=Agree U= Uncertain SD=strongly disagree D= Disagree
ASPECTS OF SAVINGS
SA A
U
SD
D
1. Savings provides money to meet budget by
making available cash reserves.
2. Savings provides an emergency fund in the
event of financial hardship
3. Savings enables the saver to put aside
money for a specific future purpose
4. Savings is an effective way to increase
cooperative funds, which can be converted into
cash if necessary
5. Savings can protect an individual from
uncertainties regarding future income and
expenses
6. In the event of an accident or job loss, the
individual can use past savings
7. Savings are used to finance investment in
new capital
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
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8. Savings regularly and carefully is important
in order to be able to buy the things that we
want
9. Saving is an excellent form of protection in
the event of the death of a person who has
dependents
10. Membership in the cooperative is for the
purpose of saving
11. You are satisfied or happy in saving your
money in the cooperative
III. Questions
Instruction:
Please rank no.1 as the highest.
1. What encourages you to save in your cooperative?
______High interest
______Accessibility of the cooperative
______Can withdraw money anytime
______Low minimum amount required earning an interest
______Others (please specify)___________________________________
2. How do you maintain or patronize your savings in a cooperative?
____Through depositing; if yes how often_____Daily____Weekly______Monthly
____others (specify)__________________________________________________
3. What problems have you encountered with regards savings?
_____Cooperative savings policies are unclear to me
_____Do not have time to go to the cooperative to deposit
_____Cannot withdraw because I forget passbook
_____Difficulty in writing authorization in cases that the depositor cannot withdraw
_____others (specify)__________________________________________________
4. In your opinion, what part of the Cooperative Savings needs to be improved?
Attitudes of Members Towards Savings in the Kabayan Multi-Purpose Cooperative (KCMPC)
in Central, Kabayan, Benguet / Jae Ann S. Deban. 2007
Document Outline
- Attitudes of Members Towards Savings inthe Kabayan Multi-Purpose Cooperative (KCMPC) in Central, Kabayan, Benguet
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- Rationale
- Statement of the Problem
- Objectives of the Study
- Importance of the Study
- Scope and Limitation of the Study
- REVIEW OF LITERATURE
- Attitudes
- Care about Attitudes
- Measuring Attitudes
- Saving
- Objective of Savings Program
- Constraints in Savings
- METHODOLOGY
- Locale and Time of the Study
- Respondents of the Study
- Data Collection
- Data Gathered
- Data Analysis
- RESULTS AND DISCUSSION
- Profile of the Respondents
- Attitudes Towards Savings
- Reasons for Saving in Cooperative
- Frequency of Depositing in the Cooperative
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- Summary
- Conclusions
- Recommendations
- LITERATURE CITED
- APPENDICES