Chapter 2

Review of Related Literature

Chapter 2 is divided into two parts: Conceptual Literature about the “Quantitative Research

,and (2) Related Literature about

Part One, Conceptual Literature presents the concept related to the study.

Part Two, Related Literature presents the foreign and local topic related to the study.

RELATED STUDIES

Local Studies

A study was conducted in University of Santo Thomas comparing the allowance and
budget of College of Fine Arts and Design students. It seeks to describe how much allowance is
given to CFAD students in general, where they spend it and at the same time how they budget it.
It illustrates the attributes of students towards financial matters.

At the end of the study, the researchers were able to draw their conclusion that spend
based on the priority they are following.

The study recommends that parents must be aware of the spending habits of their children
and where most of their allowance go. Both parents and students must understand the importance
of savings and should try to take means to save money. The institution should conduct further
studies to evaluate students’ issues and make adjustments for the benefit of all the students.

(source: https://scribd.com/doc/85158411//A-DESCRIPTIVE –RESEARCH-ON-

ALLOWANCE-AND-BUDGET-OF-SECOND-YEARS-STUDENTS-OF-UNIVERSITY-OF-
SANTO-TOMAS-COLLEGE-OF-FINE-ARTS-AND-DESIGN)

Foreign Studies

In the article in international student.com, it gives a four steps in how to start budgeting.
Managing your finances is one of the most important and challenging aspects of a successful and
enjoyable academic experience. Dealing with a new currency and cost of living are the beginning
of the challenge. When you are admitted to an Australian institution, take a close look at the
budget you prepared for yourself based on estimated expenses.

Expenses you may have:

 Tuition
 Fees
 Rent
 Meals (Board)
 Health Insurance
 Books
 Transportation
 Communications
 Clothes
 Personal Expenses
 Family Expense
 Recreation
 Travel
 Taxes

Creating a Budget

Step 1: Available Funds

The first step in creating a budget is to figure out the amount of money you will have for
the duration of your trip. Knowing your total budget will make it far easier for you to itemize
expenses later on.
Step 2: Convert Currency
You need to convert your currency; figure out what your total budget amounts to in the
currency of the country in which you will be studying (you may want to overestimate, as these
rates change second to second).

Step 3: Total Necessities

The next step is to figure out the cost of necessities such as tuition, housing
accommodation, food, and transportation, as well as things like books and lab fees for
your courses. You’ll also want to set aside 10-15% of your budget for emergencies.

Step 4: Total "Fun Money"

After doing this, you can figure out your "wants." These are fun things like excursions,
nights out, and souvenirs. Set aside some "fun money" for your trip; and you may want to
 create a monthly budget of this money, as well, to make sure you don’t spend it all at the
beginning of your trip.

The estimates provided by your school (if you do not have an estimate of living costs from your
school - ask them for one!) are usually accurate, and international students are expected to have
funds to cover the full amount shown. It is normally not possible to arrange for more financial
aid once you arrive at an institution. If you are a graduate student and are awarded an
assistantship, be sure you understand what it will include and what you will be expected to pay
form your own pocket. If you will receive a scholarship or fellowship, determine ahead of time
what portion of it is taxable and include the necessary taxes in your budget.

(source: https://www.internationalstudent.com/study_australia/finances/budgeting/)

Keep your family involved. Especially if your family is paying for part or all of your college
expenses, you will want to work with them when creating your budget. Make sure that everyone
is on the same page when it comes to who will pay for what, how much money will be
distributed, and how much leeway you’ll have in making financial decisions.

List all of your income. In your budget, you will want to list all of your potential categories and
amounts of income. For example, for college students this usually includes: financial aid such as
scholarships, grants, work study, and student loans, savings, contributions from parents, and
income from a part-time job.

List all of your expenses. Next, you will want to list all of your potential categories and
amounts of expenses. If you are not sure what your expenses are, you might try tracking them for
a week, a month, or more. Recording everything you spend can be a great way to determine areas
to cut out.

Plan for emergencies. Life can never be completely planned. If your car breaks down or you get
sick, you’ll be grateful that you have money saved up in case of emergency and you won’t have
to rely on credit.

Save up for big expenses. If you’re planning a spring break trip with your friends, or have your
eye on a new couch for your apartment, you’ll need to start saving up for that expense as soon as
you know about it. You consider reworking your budget to attempt to increase the amount you
save every month.

Make sure your budget balances. Finally, total your income and your expenses, and make sure
your budget “balances.” This means that you’re not spending more than you’re making. You
want to either break even or (preferably) have some money left over. If your budget doesn’t
balance, you’ll need to reduce your expenses and/or figure out a way to bring in more income.

(sources: https://www.internationalstudent.com/study_usa/financing/budgeting/)