THESIS2final (Fixed) Ivan Santos

ADAMSON UNIVERSITY 1
THE EFFECTS OF INFLATION RATE INCREASE ON STUDENT’S

BUDGET IN THE COLLEGE OF BUSINESS ADMINISTRATION OF
ADAMSON UNIVERSITY.
A THESIS
Presented to the
Faculty of the College of Business Administration
Adamson University
Manila
in partial fulfillment of the requirements
for the degree
BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
MAJOR IN BUSINESS ECONOMICS
De Castro, Patrick
Santos, Ivan
Santos, Raven Jake
November 2018
COLLEGE OF BUSINESS ADMINISTRATION

Table of Contents
Chapter 1 3
Background of the study 3
Statement of the problem 5
Research Hypothesis 6
Scope and Delimitation 6
Significance of the study 7
Chapter 2 8
Review of related literature and studies 8
Conceptual Framework 21
Operational Definition of terms 23
Chapter 3 24
Research Design 24
Research sampling technique 25
Population 25
Target Population 26
Research locale 26
Research instruments and techniques 26
Research instruments 27
Data gathering procedure 27
Data analysis procedure 28
Statistical tool analysis 28
Percentage 28
Weighted mean 29
Four-point scale 30
Standard Deviation 31
T-Test 31
Decision Criteria 32
Survey Questionnaire 33
References 36

Chapter I
THE PROBLEM AND ITS BACKGROUND
Background of the Study
A college student will surely undergo obstacles when it comes to budgeting.
Regardless of his/her social status, money will always be a problem because, most
students are being supported by their parents or guardian. In addition to that, especially
here in the Philippines, tuition fees are another problem. When tuition fees increases,
students, and their family as well, will be affected. They would face challenges when it
comes to their allowances and their family’s budgeting and spending.
It is important for students, especially at his/her youth, to understand the value of
money and the proper allocation of his/her need and wants. A student must know his
responsibilities when it comes to spending, especially on being aware that his tuition fees
just increased.
According to Upsi and Khalid (2014), being on their own or further away from
parents with their own money (education funding/loan), may influence into improper
spending behavior.
According to Tang Jin Jin(2017), The first finding is the college students mostly
like to spend their money on food because they are students and they need a lot of foods
to survive in their life. The second finding is a majority of the female respondents mostly
like to spend money on shopping because shopping is a woman thing, they love to

explore things and even shopping comes to their rescue at this time when they feel sad or
unhappy. On another hand, a majority of the male respondents mostly like to spend on
entertainment compared to other activities because male mostly like to play game and
half of them who play video, computer or online games, they feel that it keeps them from
studying “some” or a “lot.” The third finding is majority respondents get the source
income from the family income because the college students like to spend money on
some expenses. The last finding the financial planning is an important way to improve
the financial management because it plays an important role in determining the college
students how to spend their money wisely.
According to Oyelana (2017), the majority of students in higher institutions of
learning will be adversely affected by the increase because they are from less privileged
households. The paper also identified the need to prevent the increase in tuition fees in
the higher institutions of learning in South Africa by providing an insight into further
study regarding the institutional weaknesses and policy issues.
An increase in tuition fees, especially in a developing country like the
Philippines, will absolutely cause budget deficiency among student and his/her family
because aside from reasons such as being irresponsible and being in a middle or lower
class income family, the quality of education here does not give most Filipino students
motivation to prioritize their education and there is a very high chance for them to divert
their budget to their comfort and leisure instead. The Philippines is not the only country
in the world who face problems like these.

Statement of the problem
This research studied the changes on the budgeting of the students it sought to
answer the ff. questions:
1. What is the profile of the respondents in terms of:
1.1 Age
1.2 Course Specialization
1.3 Monthly allowance
2. To what extent does the following types of expenses are affected by the inflation
rate increase:
2.1 Food expenses
2.2 School Related expenses
2.3 Transportation expenses
3. Is there a significant difference in the extent of effect of inflation rate increase on
the expenses of the students when they are grouped according to monthly
allowance?
4. What are the problems students encountered in inflation?
5. What budgeting proposal can be formulated from the result of the study?

Research Hypothesis
Ho = There is no significant difference in the extent of effect of inflation rate
increase on the expenses of the students when they are grouped according to monthly
allowance.
Ha = There is a significant difference in the extent of effect of inflation rate
increase on the expenses of the students when they are grouped according to monthly
allowance.
Scope and Delimitation
This study is focus on the change in after the 6.4% increase in inflation rate. The
survey will gather the data about the Student expenses like Food, Transportation, School
related, and Leisure. These data will be compared to their previous expenses before
tuition fee increase is implemented. We will be gathering information about the tuition
fee implemented for the last 3 years and determine the percentage amount of the
increase.
Answer from the respondent’s questionnaire is the limitation of the presentation
and analysis posed in the study. Distribution and collection of survey sheets are within

the College of Business Administration in Adamson University. There are 50
respondents from the students in Adamson University will be selected. Each respondent
is distinguished based on their course major taking. There will be 10 respondents each
from BSBA Financial Management, BSBA Business Economics, BSBA Marketing
Management, BS Customs Administration, and BSBA Operations Management.
Significance of the study
The purpose of this study is to determine the impact of inflation rate hikes
towards budgeting of the students and guide them to balance the budget for allowance
and other expenses to assure the graduation without a delay while incurring the problem
of higher tuition fees. This research can be benefited by:
Parents – This study will help parents to manage budget they provide for the
students and gain financial knowledge about efficient budgeting for school expenses.
Students will also have substantial data of their expenses as parents have to monitor if
they are giving excess or insufficient money.
Students – The results of the study can be used for future related studies that may
apply to the changes in tuition fees and other school expenses, and provide optimal
solution to the problem arises. Accordingly, this research determines factors that is
influenced by tuition fee hike, which can be classified as other activities inside and
outside the school. Students can use this study to plan efficiently their budget and
allowance ahead of incoming future undeterminable expenses that may impact their
progress in school.

Researchers – This can be used as reference on future researches and study
relevant to tuition fee increase, student’s spending behavior etc. Each output from the
research can help researchers to gather summarized information about relationship
between tuition fee and student expenses.
Chapter 2
Review of Related Literature and Studies
According to Galvin, Nieuwenhuis, Phillips, Thain and Kokkori (2015), students
from low socioeconomic backgrounds are likely to be put off going to university for cost
reasons. Their findings also revealed that students from middle class backgrounds
reported a lack of financial support from both the government and their parents. This
finding helps to promote the notion that a parent earning over a certain pay threshold will
not necessarily be willing, or be able to afford, to fund their child through higher
education.
Muniady, Rajennd & Mamun, Abdullah & Permarupan, P.Yukthamarani &
Zainol, Noor. (2014) have conluded that consumers buy products not for what they can
do, but also for what they mean. In line with that, store or brand owners and managers
whose target market is university students should strive to maintain their store or brand

image and ambience in consistence with current trends and icons, which reflect the
younger generation.
According to Karay and Matthes (2016), tuition fees did not affect
discontinuation rate or study duration of Cologne medical students. However, fees
obviously influenced the study course due to an increased need to pursue a sideline.
Abrogation of these fees (or of the meanwhile introduced compensation payment by the
federal state government) likely rules out many measures that aim at enhancing quality
of medical studies. To enhance students’ acceptance of tuition fees in the future, their use
and (potential) benefit should be evaluated and communicated more intensively.
Thomsen, von Haaren (2014) states that tuition fees may affect disposable funds
available for consumption or saving. If students’ expenditure matched their individual
budget (constraint) previously, they would have had to increase their amount of
disposable funds, for example by increasing working hours. Obviously, if students were
not that financially constrained, the imposition of the comparatively low tuition fees in
Germany may not have affected spending behavior at all.
Upsi, Khalid (2014) documented that spending behaviour is strongly influenced
by the faculty that the students belong to and the semester that they are in. Therefore, it
is possible that, the spending behaviour may also be influenced by the university they

were enrolled. Understanding students’ spending behaviour will assist university top
management to evaluate the necessity of providing assistance to students in the form
of training, seminars or counselling in regards to financial management for current and
future references.
Tang Jin Jin (2017)The college students should make a budget plan for their daily
life expenses and able to help them to identify the wasteful expenditures and to achieve
their financial goals. The college students should establish a good saving habit to learn
some financial planning skills how to save the money.
Most young adults have their first sense of financial independence during their
college years, and having no prior knowledge of experience may have adverse effects in
the future. Villanueva(2017)
Pohane(2015) concluded that students spend their pocket money cautiously.
Many students have developed the habit of saving. Average level of the awareness was
seen as per as operating and maintaining bank account. The students should be taught to
use the banking facilities to put their savings which will earn the returns for them.
According to Kroth (2015), Students’ career motivations are captured using
seven factor variables that measure the importance students assign to different goals.
These motivational variables are: income, secure job, social engagement, working
independently, acquiring skills, learning and uncertain goals.They are held constant
because changes in these characteristics that occurred in tuition-states and not in non-

tuition-states would be an alternative explanation for differential changes in enrollment
rates and thus threaten the internal validity of the results.
Unemployment rates might have a positive effect on enrollment rates because the
opportunity costs of studying are lower when unemployment is high for lowskilled entry
level positions. On the other hand, unemployment rates might also have a negative effect
on enrollment rates because the risk of human capital investments in a college education
is higher if unemployment rates among college graduates are high.
According to Amoakon, Ejimakor,and Hardy (2016), the high proportion of
income that college students spend on food is mostly likely due to their limited income.
Given that food is a necessity, only a small proportion, about 8 percent, of additional
income received by students will be spent on food. Budget allocations to food decrease
by about one half percent for each percent increase in student income. During periods of
rising incomes, businesses that sell food to college students could get more of the student
dollar if they find ways to diversify into selling non-food items.
Bona(2018) concluded that most of the respondents spent more money on their
projects and assignments, tuition fees and school supplies, and room and board. This is
due to increasing price of materials used in doing their projects and assignments.Students
should plan their expenses so that their spending behavior can be better. They must put
into consideration saving money and buying items that they really need rather than
spending so much on their wants. Students must be conscious on the consequences of
their financial decision because it affects their future.

According to Wolla (2014),Price discrimination allows colleges to charge many
different prices for essentially the same service. This practice benefits students from low-
income families. But, there is no free lunch: The cost burden has become increasingly
progressive as wealthier families are paying more for education and subsidizing needier
students.
Geven (2015) argues that younger and older students face different costs and
benefits. Older students may be less certain about their benefits, and therefore be more
sensitive towards price increases.
Sá (2014) suggests that, when faced with higher fees, students take future
employment prospects into account when deciding which subjects and institutions to
apply for. There is, therefore, scope for fees to vary by course and be set at a higher level
for courses that offer better employment prospects after graduation.
From this finding, Yuan (2015) suggest that we can help young college students
increase their awareness of budgeting as early as possible. For example, we can ask
students to enroll in an introduction class of budgeting, helping them prepare for their
college lives financially. Even though major affects budgeting behaviors at 10% level of
significance, we are not confident enough to conclude that major affects budgeting

behaviors. Major could affect financial literacybecause business students learned some
financial knowledge from finance classes. However, neither major nor financial literacy
affects budgeting behaviors. The results from the survey are not what I assumed and
expected, and even gender, race, math ability and prediction do not affect budgeting
behaviors. Budgeting behaviors maybe more related to other factors, such as personal
financial situation, family financial education and so on. For instance, students who are
under financial pressure may be more likely to budgeting because they have to use every
dollar efficiently. Also parents may teach their children to develop budgetingbehaviors.
More research is needed to discover what factors can impact budgeting behaviors. Even
though financial literacy is not related to budgeting behavior, this research is useful
because we know we should go to a different direction to analyze budgeting behaviors.
According to Thapa (2015),Instead of buying insurance policy, investing in stock
markets, buying jewelry and lending friends, most of the students are involved in bank
saving. Similarly, it was also found that financial knowledge is determined by income,
age, stream of education, types of college, and attitude of students while it is unaffected
by gender, university affiliation, financial behavior and influence. Therefore, it is
concluded that college students have basic level of financial knowledge and their level of
financial knowledge is determined by their family income, age, stream of education, type
of college they study and their financial attitude. Government, financial sector regulators,
NGOs, and educators might use these findings for developing their policies in financial
literacy

Richards (2015) concluded that college students’ debt and spending is an issue
that needs to be addressed. Credit card debt is climbing as students are spending
carelessly without thinking of the consequences. Students lack of financial knowledge is
causing them to put themselves in a position that will put them into more debt. Teaching
high school students about personal finance will give them an advantage when going into
college. They will know how to manage their money in a safer way. Budgeting is crucial
for a student to learn quickly. Being able to budget correctly will save them a lot of
money. Student loan debt has become a huge as college students who graduate cannot
afford to pay their loans unless they halt the rest of their lives. Being able to pay the
student loans engulfs graduates causing them to have to work
Stollak, Vandenburg, Steiner, Richards (2014) concluded that students became
better budgeters and planners as they matured. As a result, the college should start
examining how they can better inculcate the younger male population.
Hermansson, McGregor,Swales (2018) show that students from different
domiciles are heterogeneous in terms of the level and degree of exogeneity of their
aggregate consumption expenditure.

Many consumers lack sufficient knowledge (literacy) about budgeting, financial
products, and financial planning. Due to this, they make suboptimal decisions, take too
much credit, pay too high interest rates, do not save enough for their retirement and
pension plan, are over- or underinsured, and make costly mistakes in their investments.
(Van Raaij,2014)
According to Monika (2015), that students with lower incomes are full-time
students and do not have a regular income from a full time job. Students with higher
incomes, presumably part-time students, are working people who spend their disposable
incomes mainly in classes 4 (Housing, water, electricity, gas and other fuel), 1 (Food and
non-alcoholic beverages) and 7 (Transport).
According to Kurt, Inman (2018) Spending Decreases the Religiosity of the
person. In U.S Spending behavior of religious people including students is controllable
people tend to spend less on grocery and they make few unplanned purchases. According
to Gino it has an indirect relationship between religion and spending behavior of a
person.
According to Norvilitis and MacLean (2014) Parental hands-on mentoring of
financial skills was most strongly related to lower levels of credit card debt and this
relationship was partially mediated by it leading to greater financial delay of gratification

and less impulsive credit card purchasing which in turn were related to less problematic
credit card use. Having parents who struggled with debt was not significantly related to
debt although having parents who avoided talking about finances predicted problematic
credit card use. Students’ beliefs that their parents would bail them out of debt were
related to lower levels of debt. Financial knowledge and parental verbal instruction
appear to have complex relationships to credit card debt.
According to Ajide that in Nigeria that the youth spend most of their income
towards fast food, shopping, movies and transportation in Nigeria.
According to Lacuesta (2014) the way Filipinos spend are inevitable or in other
words in sometimes cannot be controlled because we Filipinos as long as we are satisfied
and as long as that we want the product we immediately and sometimes we rush things
just to get the things that we desire that is the background on how Filipinos and also
according to Lacuesta that Spending money when people earn it is enjoying. With the
help of controlling money, Filipinos should know how to control their spending habits, if
not then they would end up in a lot of trouble.
Lacuesta (2014)
Ways on how to spend money wisely:
　Create a budget.

　Plan your purchases in advance.
　Avoid impulse purchases.
　Don't be fooled by marketing.
　Wait for sales and discounts.
Millennial, also referred to as Generation Y, are currently between the ages of 17
and 36 and one of the first generations to spend their formative years online. At 83
million people, Millennial account for a quarter of the population of the United States,
making them the largest living generation. Like every generation. Law (2018).
According to PSA(2016) The survey results showed that the average annual
family income of Filipino families was approximately 267 thousand pesos. In
comparison, the average annual family expenditure for the same year was 215 thousand
pesos. Hence, Filipino families has savings of 52 thousand pesos in a year, on average.
Adjusting for the inflation for the two reference years using the 2006 prices, the average
annual family income in 2015 would be valued at 189 thousand pesos, while the average
annual family expenditure would be valued at 152 thousand pesos.Families were
grouped and ranked into per capita income deciles. The richest decile represents families
belonging to the highest ten percent in terms of per capita income, while the poorest
decile represents families in the lowest ten percent. From 2012 to 2015, average annual
family income in all deciles increased, the average ranged from 86 thousand pesos for

the first income decile (lowest 10 percent) to 786 thousand pesos for the tenth income
decile (highest 10 percent) in 2015. The average annual family income of the tenth
decile in 2015 was about 9 times that of the first decile, while it was 10 times that of the
first decile in 2012 In 2015, about 41.9 percent of the total annual family expenditures
was spent on food. For families in the bottom 30 percent income group, the percentage
was much higher at 59.7percent, while for families in the upper 70 percent income
group, it was 38.8 percent
Canlas (2014) said that via philSTAR.com's computation, parents could spend
anywhere between P25,000 and P30,000 (computed at three times a week of classes for
18 weeks of two semester at P250 allowance per school year). College school students
typically get P150 to P250 (excluding transport allowance) per day. Students from
exclusive schools like Ateneo and DLSU receive were surrounding places to eat tend to
be more expensive receive higher allowance. The allowance covers P50 to P100 for
lunch, P30 to P50 for merienda, P20 on average for photocopies, and P50 to P80 for
school requirements like printing, buying pens, etc.
According to Leclerc (2014), it is important to take away that college students do
not form their financial habits and their credit card use independently. Students must be
careful about the consequences of their financial decisions because they will impact their
future.

Rising gasoline prices are being noticed much more than falling gasoline prices,
and they lead consumers to revise their expectations more frequently, but worsen their
bias.( Michael Ehrmann, Damjan Pfajfar and Emiliano Santoro,2014)
The price rise has clearly impacted the poor urban households, leaving the poorer
among them in a state of helpless desperation. The main means of livelihood of these
peoples are employment in governmental and non-governmental organizations, trade,
and daily laborer. In addition to involving the aforementioned livelihood activities, a
significant number of the study households involve in petty trade. Not only has the price
rise rendered many commodities unaffordable on a regular basis (and thereby reduced
consumption below levels termed as adequate nutrition), but it has also resulted in the
household facing hardships in other spheres of the household. Over the long term
worrying trends are likely to consolidate, wherein households are forced to sacrifice
necessities such as professional healthcare and children’s education just to make space
for sufficient food to survive.( Tassew Dufera Tolcha,2015)
Food prices have increased during the past decade on a global level. That has
influenced inflation around the world since food is an important element of Consumer
Price Index (CPI) which is most commonly used as a measure of inflation. However, it is
important to note that impact of food prices on inflation can be very diverse. Firstly, it is
important to note that on average inflation in emerging market economies is going to be
differently affected by food price changes compared to inflation in developed economies.

The influence of these prices is directly related to the level of wealth or economic
development of the economy, since the share of income spent on food declines as the
level of income rises.( Dejan Šoškić,2015)
Periods of inflation influences consumers to save rather than consume because of
pessimism and uncertainty in the economy. Inflation again influence consumer spending
behaviour by influencing both liquid and illiquid assets since in period of inflation, there
is motivation to hold real assets and not assets fixed to nominal values or not indexed to
inflation (Gabriel Effah Nyamekye and Eugene Adusei Poku,2017)
Households make economic decisions on the basis of the outlook for inflation
and wages as well as current economic conditions. Therefore, monitoring expectations
regarding both inflation and wages is important for considering the effects of monetary
policy on consumer spending as these reflect households’ future outlook for the economy
(Yuichiro Ito, Sohei Kaihatsu 2016).
Conceptual Framework
This study deals with the understanding relations when it comes to budgeting of
the students after an increase in inflation. Conceptual framework can determine what
would be the results based on concepts that the researchers have. In this study budgeting
can be affected through the following variables. Expenses can affect the budgeting of

students by means of spending. The researchers can determine the variables which has
the high influence that can affect the spending habit of the students.
The input method denotes the budgeting of the respondents and it also includes
the profile of the respondents composed of Course Specialization, Age and Monthly
allowances.
The Process determines the variables affecting the budgeting of the students,
through data gathering and data analysis the researchers can determine the level of
influence of the spending habit of the students.
The output determines the expectation and the results after the inflation increase
of the students inside Adamson University. The output represents as an advantage on
both sides between parents and students because they can control their spending behavior
by the means of determining how these expenses can affect their buedget and
allowances.
Input
Profile of the Respondents
Process

Extent of effect of inflation rate increase:
Food Expense
School Related expense
Transportation expense
Problem that students encountered in inflation
Output
Budgeting proposal
Control and awareness in budgeting

Operational Definition of Terms

 Expenses – it is a cost occurred by the student’s consumption.
 Food Expense- Cost occurred when buying food.
 Influence- a way on how a person can convince other person.
 Institution- A organization formed by a certain individual for a purpose.
 Leisure- activity that a individual do whatever they want for the sake of
satisfaction.
 Leisure expenses- these are expenses that students acquire upon they leisure time.
 Motivation- a process that drives a person’s confidence to the highest level.
 Obstacles - it is a form challenge that can be an advantage, disadvantage, benefits
or hindrances.
 Prioritize- objective; Main focus.
 Respondents – an instrument; persons involved in the study in order to answer
the problem of the researchers.
 School Related Expenses- Expenses which students acquire upon buying goods
that they need at school.
 Spending - it is a result of an individual who undergo transaction.
 Spending habits – it is a tradition or a way an individual consume his or her
money; purchasing hobby of a person.
 Tuition Fee- a Cost; payment rendered by the students.
 Transportation expenses- Cost occurred in transportation.

Chapter III
RESEARCH METHODOLOGY
Research Design
We use a quantitative approach because we need to gather data on how increase
in inflation rate affects Adamson University affects student’s budgeting, specifically
students in the College of Business Administration. This research also is numerical. The
findings should be generalizable and thus can be applied to other populations, being able
to look at cause and effect as well as making predictions (Leung, 2015). Quantitative
research tries to find answers to concrete questions by generating numbers and facts.
(Barnham, 2015). Quantitative research designs aim to establish the relationship between
an independent and dependent variable within a population by gathering data to classify
and count features and construct statistical models as an effort to explain observations
(University of Southern California, 2016).
Descriptive research design will be used because in order to suffice our data and
results that we need for our research, we will be using survey questionnaire. Students
from the College of Business Administration are the respondents and they must be the
one who will have to answer the questionnaire for they are the target of this research.
The purpose of descriptive research is, of course, to describe, as well as explain, or
validate some sort of hypothesis or objective when it comes to a specific group of
people. (McNeill,2017). Descriptive research gathers quantifiable information that can
be used for statistical inference on your target audience through data analysis. (Fluid
Surveys University, 2017).

Research Sampling Technique
The procedure in which the researchers select sample members in the population
as respondents in order to come up with a result that can answer specific question and
problem.
The researchers designed the survey questionnaire in order for them to gather
important data, opinions and assumptions and observation and value judgment. In order
for the researchers to gather data, Adamson University students particularly students
under business administration courses was their particular respondents.
The researchers choose non-probability sampling, specifically the convenience
sampling method, because it is more appropriate since the questions are based on the
value judgment of the respondents and their observations. According to Bhat (2015),
better way to recruit respondents is to use convenience sampling so us researchers is one
of the best and it suites for us since we only target students from Adamson University
particularly business administration students. Since we limit our respondents on business
administration students we undergo the process of quota sampling in which limiting
respondents in a particular size Bhat (2015). The researchers used the questionnaires in
order for them to identify the profile of the respondents.
Population
The respondents of the study will be chosen from the total population of students
in Adamson University Particularly Business Administration students.

Target Population
The target population is defined as the entire group of people the researcher is
interest with the study. The sample size for the research is 50 business administration
students of Adamson University.
Research Locale
The data and information of the research gathered in Adamson University located
at San Marcelino, Ermita Manila, Philippines. Budgeting is a technique where in a
certain person needed it in order to comply on future expenditures plus it helps an
individual to save and to reduce its spending habbits and it also help consumers to
control their consumption on unnecessary goods. . Since Philippines is a developing
country, people who are earning low income from the past and now they generate
income in this case the country is experiencing economic development. Kruegar, Myint
(2016).
Since people are now generating income people tend to work more instead of additional
leisure and so therefore productivity rate increases on goods and services Amadeo
(2018). Why we conducted the research in Manila it is because Millenials spend hard on
non-essentials for so many reasons and earn hard on savings Anonas (2015).

Research Instruments and Techniques
Research Instruments and Techniques is one of the key factors deciding the
methodological rationale of the research and subsequent analysis. Each of the individual
techniques used to obtain data is linked to specific analysis and interpretation
processes. PMR (2018). The Technique used by the researchers to collect data analysis is
by conducting survey and respectfully distributed to the respondents to gather accurate
data and information which is needed in the study.
Research Instrument
According to McLeod (2017) A Quantitative research aims to establish general
laws of behavior and phenomenon across different settings/contexts. Research is used to
test a theory and ultimately support or reject it. Quantitative research consists of survey
questionnaires that respondents must answer the following questions in order to come up
with a better result. Quantitative Research’s main purpose is the quantification of the
data. It allows Generalizations of the results by measuring the views and the responses of
the sample population Chetty(2016). Research Quantitative method has also its
limitation and weaknesses, pros and cons, advantages and disadvantages according to
Chetty (2016)
Data Gathering Procedure
This method of data gathering aims to identify the ideas of budgeting of Business
administration students in Adamson University, used by survey questionnaires.

According to PMR(2018) Survey questionnaires fall into the following categories:
paper-based, online and auditorium questionnaires. The latter involve respondents being
gathered in a single room and completing their questionnaires, following which the
completed questionnaires is pooled. Three types of questions can be asked in
questionnaires: open-ended, semi-open-ended and closed-ended questions. This
questionnaire consists of questions that can answer the researcher’s problem with the
help of the data that the respondents provide it will be much easier for the researcher to
come up with accurate results. Respondents was given allotted time to answer the
questions within 12 to 24 hours of respective time.
Data Analysis Procedure
Data analysis procedure consists of series of steps that ensures and accurate
results that the respondents had given through answering the set of questionnaire that the
researchers had provided. The given set of questions are answered by the students of
Adamson University particularly Business Administration students.
Statistical Tool Analysis
To analyze the responses of the respondents, the business administrations
students of Adamson University, the following tools was used:
To determine the exact information of the respondents, Frequency Distribution
was used. This is an expression of the population corresponding to a particular variable
or item. This is used to present the profile of the respondents.

1. Percentage
Is a part of the whole expressed in period. The result was obtained by
multiplying a number to 100%. This can determing the percentage of the
profile of the respondents in terms of age and their course specialization
through percentage
Given Formula:
%= f/m x 100
Where:
%= Percentage
F= Frequency
N= Total number of respondents
2. Weighted Mean
This is the measure of central tendency for a set of opinions. This was adopted to
determine the weighted means of the budgeting of the respondents. It used to
know the extent of the effects inflation rate in the following expenses: Food
expense, transportation expense, school related expenses and leisure expenseto
the respondents known as the business administration students of Adamson
University.
Given Formula:

x́=∑ ¿ x / N
Where:
x́= weighted mean
f= Frequency
x= scale rate
∑ ¿ x / N = sum of all the population
N= total number of respondents
Four Point Scale
For better understanding of the result, verbal interpretation is employed. This
served as the basis of interpretation of the result that were arbitrarily prepared. The
weighted mean of the evaluation interpreted will be based on four point scale shown
below.
Scale Mean Interpretation Code
4 3.51-4.50 High Extent HE
3 2.51-3.50 Moderate Extent ME
2 1.51-2.50 Low Extent LE
1 1.00-1.50 No Extent at all NE

3. Standard Deviation
The researchers used this because it is the most commonly used indicator of
the degree of dispersion and the most dependable measure to estimate the
variability in a total population from which the same.
Formula:
s = √[ Σ ( xi - x )2 / ( n - 1 ) ]
Wherein:
S = standard deviation of sample
Σ = means “sum of”
x = each value in the data set
X̅ = mean of all values in the data set
n = number of values in the data set
4. T-Test
The test for independent sample determined whether or not there are no
significant differences in the perception of the students of business administration
of Adamson University as to their buying and spending behavior of them.

5. Decision Criteria – the hypothesis of the studied both null and alternative
was tested at 0.05 level of significant. It implies that the decision is 95% to be
right. The decision whether to accept or reject the null hypothesis based on
the following:
a. Accept the null hypothesis if the computed value is less than 0.05;
b. Reject the null hypothesis if the computed value is equal or greater than 0.05.

CHAPTER 4
PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA
This chapter presents, analyzes and interprets the data that were
gathered using questionnaire. The data were collected and then processed
in response to the problems posed in the chapter.
Statement of the problem
This research studied the changes on the budgeting of the students it sought to
answer the ff. questions:
1. What is the profile of the respondents in terms of:
1.1Age
1.2 Course Specialization
1.3 Monthly allowance
2. To what extent does the following types of expenses are affected by the inflation
rate increase:
a. Food expenses
b. School Related expenses
c. Transportation expenses
3. Is there a significant difference in the extent of effect of inflation rate increase on
the expenses of the students when they are grouped according to monthly
allowance?

4. What are the problems students encountered in inflation?
5. What budgeting proposal can be formulated from the result of the study?

QUESTIONNAIRE
The researchers would like to know the extent of effect of inflation

rate increase in spending behavior of business administration student of
Adamson University.This questionnaire serves as our material on
gathering datafor our research. The data or information gathered will be
used only for academic purpose and will be kept confidential. We are
hoping for your most honest answers. Thank you.
DIRECTION: Check or specify your respective answer in each question.
Name (Optional) __________________________________
Basic information
Age:
17-20
21-25
26-30
31 above
Course Specialization:
Business Economics
Customs Administration
Financial Management
Marketing Management
Operation Management

Monthly allowance
Less than 6,000 (Six thousand)
More than 6,000 (six thousand)
DIRECTIONS: Please check ( ) and rate the question according to

personal point of view using the following scale: 4 will be the highest
and 1 will be the lowest
4-High Extent
3-Moderate Extent
2-Low Extent
1-No Extent at all
II. To what extent is the effect of the increase in inflation rate on the
expenses of College of Business Administration students of Adamson
University in terms of:
Food Expense 4 3 2 1
Breakfast
Lunch
Dinner

School related 4 3 2 1
Expense
Printing and
paperworks
School supplies
Seminars and
Conferences
Transportation Expense 4 3 2 1
Train
Jeepneys
Taxi
Motorcycles/ Tricycles
Problems Encountered by the students on Budgeting and Spending

during inflation of College Business Administration students of
Adamson University.
 Hard time on making excuses with peers

 Making choices based on fear of social embarrassment
 Spending more with given amount of allowance
 Lack of ideas on different tips on how to save
 Insufficient control consciousness within the peer
 Difficulty of prioritizing expenses
 Over spending on the given allowance
Others: (Please specify) ______________________________

Table 1
Profile of the respondents
(Age, Business Administration major, and Category)
1.3 Category
Students with Students with
more than 6k less than 6k
allowance per allowance per
Parti culars month month Total
Age F % F % F %
17-20 2 16.67 22 57.89 24 48
21-25 10 83.33 16 42.10 26 52
TOTAL 12 100 38 100 50 100
CBA major in: F % F % F %
Business Economics 1 8.33 10 26.31 11 22
Customs
Administrati on 3 25 6 15.79 9 18
Financial Management 6 50 9 23.68 15 30
Marketi ng
Management 1 8.33 6 15.79 7 14
Operati ons
Management 1 8.33 7 18.42 8 16
TOTAL 12 100 38 100 50 100
Legend: f= frequency; %= percentage
Table 1 shows that the respondents categorized as students with
less than 6k allowance per month, 22 of them belongs to the age bracket
of 17-20 years old or 57.89% of the total respondents and 16 of them
belongs to the age bracket of 21-25 years old or the 42.10% of the total
respondents. While the respondents who are classified as students with
less than 6k allowance per month shows that 2 of them belongs to the age
bracket of 17-20 years old or the 16.67% of the total respondents and 10

of them belongs to the age bracket of 21-25 years old or the 83.33% of
the total percentage of the respondents.
According to the table 1 that results came from our
conducted survey, the percentage difference of age in students with less
than 6k allowance per month category is ranging from 17-20 years old
with 22 respondents or a total of 57.89 percent and 21-25 years old with
16 respondents 42.10 %. This shows that on the students who has 6k
below monthly allowance the age of the respondents has an almost equal
probability on ranging from the age of 17 to 25. While in the students
with more than 6k allowance per month category has 16.67% with age
ranging 17-20 and 83.33% with age ranging 21-25. This implies that
finding students with more than 6k allowance per month concentrates on
age ranging from 21-25 years old which justifies that older students tend
to have more allowance that younger ones.
Table 1 shows that there are 10 students with less than 6k
allowance per month in business economics respondents or 26.31 percent
respondent, 6 customs administration students or 15.79% of the total
respondents, 9 students from the financial management or 23.68% of the
total respondents, 6 students from marketing management or 15.79% of
the total respondents and 7 students from the operations management or
18.42% percent respondents. As for students with more than 6k allowance
per month, there are 1 student from business economics or 8.33% of the

total respondents, 3 customs administration students or 25% of the total
respondents, 6 students from the financial management or 50% of the
total respondents, 1 student from marketing management or 8.33% of the
total respondents and 1 student from the operations management or 8.33%
percent respondents.
Based on table 1, on overall total of the respondents are
mostly financial management course with a total of 15 students while the
least ones are the marketing management students with a total 7. It
justifies the fact that most of the students in college of business
administration are financial management. After categorizing the
respondents, it turns out that most of the students with less than 6k
allowance per month are business economics while most of the students
with more than 6k allowance per month are financial management. The
business economics and financial management students almost tied in
students with more than 6k allowance per month category.

Table 2
Extenf of effect of inflation rate on the student’s budget in College of
Business Administration of Adamson University in terms of food
expenses
Less than 6k More than 6k Composite

Particulars per month per month Mean
M V.I M V.I M V.I
Breakfast 3.24 ME 3.58 GE 3.41 ME
Lunch 3.24 ME 3.5 ME 3.37 ME
Dinner 3.44 ME 3.16 ME 3.3 ME
Average
Mean 3.31 ME 3.41 ME 3.36 ME
Legend: M= Mean
V.I. = Verbal Interpretation
ME= Moderate Extent (2.51-3.50)
GE = Great Extent (3.51-4)
Table 2 is about the extent of the increase in inflation rate to
the student expenses in terms of food expense. The tabulation will show
the impact of increasing inflation rate to the expenses of the business
administration students.
On the morning breakfast we get 3.24 mean or Moderate extent
for students with less than 6k per month allowance and 3.41 or Great
Extent for the students with more thank 6k allowance. This would imply
that a typical Filipino breakfast which is coffee and pandesal or silog

meals which might also be the best option for students with less than 6k
per month allowance while basic meal like vegetables and meat for
students with more than 6k per month allowance and that the latter is
much impacted by the inflation, tends to become more expensive than the
former.
Regarding with the result from the Lunch expense, we get the
same 3.24 mean for the students with less than 6k allowance while 3.5 or
Moderate mean for the students with 6k allowance and has decreased
compare to the breakfast expense. This might actually explain that
students with 6k less allowance are taking their lunch with the same
fashion as breakfast. Also since we have 38 people for students with 6k
less allowance compare to 12 people with for students with 6k allowance,
there is also a possibility that the former are taking their meals as a
group. This would imply that as a Filipino, we tend to consider each
other’s budget. While for people with more than 6k allowance had
slightly decrease as compared to breakfast, this is due to the tendency
that they had sufficient meal on their breakfast. If they had been had a
full meal for the breakfast, they tend to eat lesser for the lunch which
would also be expected since inflation affects meats and vegetables.
As for the case in dinner expenses, we have 3.44 mean or
moderate extent for the students with less than 6k per month allowance
while 3.16 mean or moderate extent for the students with more than 6k
per month allowance. A sudden increase for the case of former and this

might actually imply that they save their budget for a good dinner while
the latter had already a good meal from the breakfast and lunch. Also as
the inflation affects full meal with either vegetable or meat, students with
6k less allowance will incur more expense.
The overall average mean of extent of effect of the inflation
rate in the college business administration students in terms of food
expense is 3.36 or Moderate Extent.
This table show the pattern of the spending of the students
during the increase of inflation rate. As we can see we have moderate
Extent for both average mean which means that inflation rate might have
impact on the student expenses. As the inflation is inevitable in fast
growing economy, such factors like increase on the price of exported
products or shortage of some supplies would might had been taking place.
As the increase on the price on a raw material would have
affected the price of the products to the national level, students would
definitely feel a slight change on the price of the food they are buying.
Regardless of the allowance they are spending, they would have
considered alternatives since some of the students have fixed budget for
the food.
Students has to take their breakfast before attending the
school. Some prices of pandesal or egg, which is very common for

breakfast consumption, has been unstable for some time. Take for
example that some family actually buy less pandesal when the price
increased or the pandesal actually becomes smaller than usual but with
the same price. Some techniques involves making the product with lesser
quantity in order to maintain price. Which would imply that the had
actually increased the price.
Taking lunch inside or outside the school is very common for
the students. Some also prefer to take their lunch in their homes. However
this will imply additional expense like gas or transportation fees. Also it
is very popular for the students to take their lunch on the street foods
which is also affected by the inflation. Take for example the very famous
pares rice which for last year costs 30 php per serving but this year it
becomes 35 php per serving. This actually affects many students who rely
on street foods specially when their budget if fixed.
When students finally has ended their class, they might decide
to take the dinner home or in school. Considering an average student
might have 8 hours a day on school, he/she might have actually taken
dinner inside or outside the school or in home which make us think that
taking dinner is mostly wherever. Common place to eat when outside
home is fast foods or street foods which is also affected by inflation.
When in home, ingredients like vegetable and meat are greatly affected by
inflation. This would have result in either less consumption or more
expense.

Table 3
Less than 6k per More than 6k
Particulars month month Composite Mean
M V.I M V.I M V.I
Printing and
Paper works 3.05 ME 3.58 GE 3.31 ME
School
Supplies 2.55 ME 3.75 GE 3.15 ME
Seminars
and
Conference 2.57 ME 3.41 ME 2.99 ME
Average
Mean 2.72 LE 3.58 GE 3.15 ME
Business Administration of Adamson University in terms of school
related expenses
University
Legend: M= Mean
GE= Great Extent (3.51-4)
Table 3 is about the school related expenses affected by the
increase in inflation rate on the students in College of Business
Administration of Adamson University.
Printing and Paper works. College students with less than 6k
allowance per month has a mean of 3.05 or moderate extent. While the
college students with more than 6k allowance per month has a mean of
3.58 or great extent which is higher. This implies that on time of

inflation, students with higher allowance are generously spending more
on prints and paper works..
School supplies. College students with less than 6k allowance per
month has a mean of 2.55 or moderate extent. While the college students
with more than 6k allowance per month has a mean of 3.75 or great extent
which is also higher, where it tells that, during inflation students with
lower allowance find some alternative to cheaper school supplies or might
actually avoid too much budgeting for school supplies.
Seminars and Conference. College students with less than 6k
3.41 or moderate extent. In this case when inflation is prevalent, students
with less allowance have avoided attending some seminars and
conference.
Overall the average mean of school supplies expense is 3.58 or
great extent in terms of school related expenses affected by the increase
in inflation rate on the students in College of Business Administration of
Adamson University.
In college, school related expenses can be part of the student’s
allowance. Some students also may ask their parents for additional budget
as for any school related expenses. In some situations, some expenses
incurred within the school can be too much expensive that some students

tend to sacrifice even their food allowance to satisfy school expenses.
Inflation can affect this kind of expenses but not as much as food and
other basic needs. However, to the extent of the effect of inflation, in
economics, all of the prices of commodities should be affected and the
purchasing power of the currency will be decreased. Furthermore, this
study will clarify whether inflation can affect student’s spending on these
type of expenses.
Printing and paper works expenses are the most basic school related
expense. In every class, it is natural to pay for extra paper works since
some handout have large number of pages. However, there are the case
where students with more allowance tend to cover the expenses of their
classmates or groupmates since they have more capability to sponsor such
expense. This case was most often happened in thesis grouping since
massive number of prints are required and for most cases the one with
more allowance shoulders the expense and the one with more
perseverance on studying works on the thesis itself. In addition to this,
one with more allowance tend to deduct school related expense on their
budget and rely less additional money they might ask from their parents.
The difference in the result from table 3 clearly indicate than on inflation
and rising prices on prints, the one with more allowance has the burden.
Buying school supplies can be much expensive with progressive
inflation. Increase on prices of school supplies must be unfelt on students
with more allowance. However, on the study we conducting, it might also

mean that the moderate extent result is actually a behavior that a student
felt that he need to save money and find much cheaper products for
school supplies. Students with higher allowances will often choose better
quality school supplies.
Seminar and Conferences can be expensive and most often out of
the budget expense. Which means that students with lower allowance tend
to sacrifice their budget for food in order to comply or attend in the
seminar or conferences. Students with higher allowance can easily cover
the expense but compare to the students with lower budget they might
actually choose not to attend seminars and conferences. In times of
inflation, these kind of expense might actually be affected although in a
way that food is majorly affected by inflation, other non-basic need
expense can be affected too as a conservation in order to satisfy basic
expenses. In table 3, this clearly indicates that students with lower budget
might actually choosing not to spend so much on seminars and
conference.

Table 4
Business Administration of Adamson University in terms of
transportation expenses
Less than 6k More than 6k Composite

Particulars allowance allowance Mean
M V.I M V.I M V.I
Train 3.05 ME 3.58 GE 3.31 ME
Jeepney 3.10 ME 3.66 GE 3.38 ME
Taxi 2.89 ME 3.41 ME 3.15 ME

Motorcycle/Tricycl
e 2.94 ME 3.41 ME 3.17 ME
Average Mean 2.99 ME 3.51 GE 3.25 ME
Legend: M= Mean
GE= Great Extent (3.51-4)
Table 4 is about the transportation expenses affected by the
increase in inflation rate on the students in College of Business
Administration of Adamson University. The tabulation will show the
extent of the transportation expenses in time of inflation on the students.
Train. College students with less than 6k allowance per month has a
mean of 3.05 or moderate extent. While the college students with more

than 6k allowance per month has a mean of 3.58 or great extent which is
also higher, where it tells that, during inflation, students with higher
allowance are still willing to use train.
Jeepney. College students with less than 6k allowance per month
has a mean of 3.10 or moderate extent. While the college students with
more than 6k allowance per month has a mean of 3.66 or great extent
which is also higher. Students with higher allowance are much willing to
pay for jeepney fare.
Taxi. College students with less than 6k allowance per month has a
mean of 2.89 or moderate extent. While the college students with more
than 6k allowance per month has a mean of 3.41 or great extent. Based on
the results, taxi is less likely to be an alternative to the students with
lower allowance compare to the students with higher allowance.
Motorcycle/Tricycle. College students with less than 6k
3.41 or great extent which is also higher. Where it tells that, during
inflation students with higher allowance consider both taxi and
motorcycle as nearly good alternative as train and jeep. We can finally
conclude that the difference on the result was nearly close and small. This
indicated that each alternatives are considered good in times of inflation.

Overall the average mean of the transportation expenses affected by
the increase in inflation rate on the students in College of Business
Administration of Adamson University is 3.25 or moderate extent.
Transportation could be very much affected by inflation since
petroleum products are one of the most important product in today’s
economics and the most basic and current raw material used on
transportation and machinery. On the scope of everyday use, students will
also be affected since many of them rely on public transportation.
Depending on how much allowance a student had, the choice of the
method of transportation is very much affected. Some transportation are
more expensive compare to the others. On time of inflation, the price of
the transportation expense increases. Some alternative might be consider
but many doesn’t mind a slight increase.
Most of the students use train as a transportation since it can avoid
traffic. The only disadvantage is the waiting line on the train station. At
the time of inflation, train fare can be less affected compare to other
transportation like jeepney and bus. However, considering train might be
an alternative, it important to know how much students spend to it
compare to other transportation in time of inflation. As the result imply,
students with more allowance has been using train on great extent.
Jeepney would be the mostly cheap but mostly affected means of
transportation in time of inflation on this category. Fare hike would be an
immediate occurrence when inflation is prevalent. However, alternatives

might not be considered since the usual fare has a slight increase while
other means of transportation remains more expensive. This is very
apparent in our result because we can notice that jeepney has the highest
mean compare to the others.
There are several students that chooses taxi over other means of
transportation. Taxis are great alternative to other transportation method
when it comes to the places where other public transportation aren’t
available. It is also spacious and convenient to use a taxi but offers
expensive fare. Most of the students with lower allowance might not have
budget for hiring a taxi but it is still considered a great transportation
when strolling around manila or any other city. During the inflation, taxi
fare might actually become higher but felt less. We can see that based on
the results, taxi got the lowest mean.
Motorcycles/Tricycles are ideal transportation for students who
doesn’t want to wait for the available vehicle or fall in line to the station.
It is also considered cheap and accessible. There are plenty of parking lot
for the motorcycles in manila. As on the occurrence of inflation,
motorcycle users tend to feel the increase on the gas but has a minimal
chance on considering an alternative. There are few people uses
motorcycle or tricycle since some terminals or parking are too far from
their actual destination.

Table 5
Test on significant difference on the “extent of effect of inflation rate
increase in the expenses of student’s budget in business
administration student of Adamson University”
R espondent
Term s s Mean SD DF CV TV R em arks
Less than
6k 3.31 0.115542
Food More t han 0.35202
expense 6k 3.41 0.222485 48 2 2.011 Accept ed
Less than
S chool 6k 2.72 0.283107
rel at ed More t han 4.51145
expense 6k 3.58 0.170000 48 1 2.011 R ej ect ed
Less than
6k 2.99 0.261406
Transport at i o More t han 2.18604
n expense 6k 3.51 0.125698 48 4 2.011 R ej ect ed
Legends: SD= Standard Deviation DF= Degree of Freedom
CV=Computed Value TV=Tabular Value
On the table 5 we got the result of general weighted mean of the
college students with less than 6k per month allowance and more than 6k
per month allowance as to food expense is 3.31 and 3.41 respectively and
the standard deviation for the food expense are 0.115542 and 0.222485
respectively. Accordingly, the degrees of freedom is 48 and a tabular
value of 2.011. The computed value equals to 0.352022 that is less than
the tabular value which means that null hypothesis (Ho) is accepted which
implies that there is no significant difference in the perception of the
college students with less than 6k per month allowance and more than 6k

per month allowance as to food expense in business administration
students of Adamson University.
Based on the table 5, we got the result of general weighted mean of
the college students with less than 6k per month allowance and more than
6k per month allowance as to school related expense is 2.72 and 3.58
respectively and the standard deviation for the food expense are 0.283107
and 0.170000 respectively. Accordingly, the degrees of freedom is 48 and
a tabular value of 2.011. The computed value equals to 4.511451 that is
less than the tabular value which means that null hypothesis (Ho) is
rejected which implies that there is a significant difference in the
perception of the college students with less than 6k per month allowance
and more than 6k per month allowance as to school related expense in
business administration students of Adamson University.
According to the table 5 we got the result of general weighted mean
of the college students with less than 6k per month allowance and more
than 6k per month allowance as to Transportation expense is 2.99 and
3.51 respectively and the standard deviation for the food expense are
0.261406 and 0.125698 respectively. Accordingly, the degrees of freedom
is 48 and a tabular value of 2.011. The computed value equals to
2.186044 that is more than the tabular value which means that null
hypothesis (Ho) is rejected which implies that there is a significant
difference in the perception of the college students with less than 6k per
month allowance and more than 6k per month allowance as to

transportation expense in business administration students of Adamson
University
It shows that the variable from food expense is accepted and for the
school related expense and transportation expense their variable are
rejected where it shows that there is no significant differences between
the former and there is a significant difference between the latter when it
comes with the perception between the students with less than 6k
allowance per month and students with more than 6k allowance per month
in the business administration students of Adamson University. Each
group has their own distinct way of budget when inflation occurs and
managing their money properly is critical in order to address common
problems when price of commodities are rising. Proceeding from this
topic are the perspective of the students based on the problems they had
encountered and the suggested or alternative solutions for the problem
which are connected to the four (3) variables in this area.

Table 6
Problems Encountered by the Respondents on Budgeting and
Spending during inflation
More than
Less than 6k 6k
Problems allowance allowance
Encountered per month per month Total Rank
F % F % F %
-Having diffi culty
on making excuses
with peers 22 18.64% 9 25% 31 20.13% 3
-Making choices
with the fear of
social
embarrassment 0 0% 0 0% 0 0% 7
-Spending too
much to the same
product/service 8 6.78% 5 6.78% 13 8.44% 6
-Lack of
knowledge on how
to save money 13 11.02% 3 8.33% 16 10.39% 5
-Insuffi cient
control and
infl uence with the
friends 20 16.95% 5 13.89% 25 16.23% 4
-Diffi culty of
managing
expenses 27 22.88% 5 13.89% 32 20.78% 2
-Over spending on
the given
allowance 28 23.73% 9 25% 37 24.03% 1
Total 118 100 36 100 154 100
Legend: F= Frequency %= Percentage

Table 6 shows the ranking of the problems encountered by the
respondents in response to their spending and budgeting during inflation.
As for the results, the “Over spending on the given allowance” is
the main problem which means that they have too much expenses incurred
during inflation, next to this is the “Difficulty of managing expenses” ,
3 r d is “Having difficulty on making excuses with peers”, 4 t h is “Over
spending on the given allowance” and “Insufficient control and influence
with the friends”, 5 t h is the “Lack of knowledge on how to save money”,
6 t h is “Spending too much to the same product/service” and there is no
score obtained from the “Making choices with the fear of social
embarrassment”.
We got the first problem which is over spending on the given
allowance which had been the major problem when the inflation is
prevalent. It is difficult to save money since prices of commodities are
going up.
The second problem is that the difficulty on prioritizing expenses
since on time of inflation, most of the students find other alternatives
better than the usual commodity. This can be a very common problem for
the students with less than 6k allowance per month.
On the third problem is having a hard time making excuses with
peers which also a factor on budgeting. Being with friends and other
classmates sometimes requires budgeting and unable to comply makes

your friendship with them might have negative effects. On the time of
inflation, most of students should be aware that this kind of expenses can
be excluded from basic necessity in school and can be listed as outside or
from your extra budget.
The fourth problem is the insufficient control the peers which
might looks like the third problem. The difference is that the fourth
problem determines one’s influence and to his/her peers which makes a
proper plan for your budget. This is important to monitor your allowance
spending during inflation.
As for the fifth problem which is the lack of idea and tips on how
to save money is a very fundamental importance on modern society. Being
able to prepare for future as how to deal with inflation and decreasing
purchasing power of the currency can be a good advantage in the future.
The sixth problem would be something like an addiction towards a
certain item or services. This is a very problem that result in
overspending or worst is resulting in a huge debt. Fortunately, very few
has this kind of the problem.
Finally, there is no score for making choices with the fear of social
embarrassment. Spending money as with the consciousness of fear from
being embarrassed could have the meaning that in time of inflation, best
alternative should be chosen by thinking of its practicality.


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ADAMSON UNIVERSITY 1

THE EFFECTS OF INFLATION RATE INCREASE ON STUDENT’S

Faculty of the College of Business Administration

in partial fulfillment of the requirements

for the degree

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION

MAJOR IN BUSINESS ECONOMICS

COLLEGE OF BUSINESS ADMINISTRATION

COLLEGE OF BUSINESS ADMINISTRATION

Background of the Study

A college student will surely undergo obstacles when it comes to budgeting.

comes to their allowances and their family’s budgeting and spending.

It is important for students, especially at his/her youth, to understand the value of

COLLEGE OF BUSINESS ADMINISTRATION

students how to spend their money wisely.

According to Oyelana (2017), the majority of students in higher institutions of

study regarding the institutional weaknesses and policy issues.

An increase in tuition fees, especially in a developing country like the

in the world who face problems like these.

COLLEGE OF BUSINESS ADMINISTRATION

answer the ff. questions:

1. What is the profile of the respondents in terms of:

1.2 Course Specialization

1.3 Monthly allowance

2.1 Food expenses

2.2 School Related expenses

2.3 Transportation expenses

3. Is there a significant difference in the extent of effect of inflation rate increase on

4. What are the problems students encountered in inflation?

COLLEGE OF BUSINESS ADMINISTRATION

Ho = There is no significant difference in the extent of effect of inflation rate

Ha = There is a significant difference in the extent of effect of inflation rate

Scope and Delimitation

Answer from the respondent’s questionnaire is the limitation of the presentation

COLLEGE OF BUSINESS ADMINISTRATION

from BSBA Financial Management, BSBA Business Economics, BSBA Marketing

Management, BS Customs Administration, and BSBA Operations Management.

Significance of the study

of higher tuition fees. This research can be benefited by:

they are giving excess or insufficient money.

COLLEGE OF BUSINESS ADMINISTRATION

research can help researchers to gather summarized information about relationship

between tuition fee and student expenses.

Review of Related Literature and Studies

According to Galvin, Nieuwenhuis, Phillips, Thain and Kokkori (2015), students

Muniady, Rajennd & Mamun, Abdullah & Permarupan, P.Yukthamarani &

COLLEGE OF BUSINESS ADMINISTRATION

discontinuation rate or study duration of Cologne medical students. However, fees

and (potential) benefit should be evaluated and communicated more intensively.

available for consumption or saving. If students’ expenditure matched their individual

Germany may not have affected spending behavior at all.

Upsi, Khalid (2014) documented that spending behaviour is strongly influenced

COLLEGE OF BUSINESS ADMINISTRATION

management to evaluate the necessity of providing assistance to students in the form

of training, seminars or counselling in regards to financial management for current and

some financial planning skills how to save the money.

the future. Villanueva(2017)

Pohane(2015) concluded that students spend their pocket money cautiously.

　Avoid impulse purchases.

　Don't be fooled by marketing.

　Wait for sales and discounts.