Chapter 1: INTRODUCTION

This chapter includes the background of the study; statement of the problem; the significance of
the study; conceptual framework; assumption of the study; scope and delimitation; and definition
of terms used.

Background of the Study

Going to the senior high school department will require every student to be responsible in a
variety of ways. Being a responsible student isn't something that can be achieved overnight. It
needs to be kept in mind and be an attitude. One of these responsibilities is managing allowances
(Kazmier, 2004), and one of the practical skills they can use is budgeting (Norvilitis et al., 2006).
Proper allowance allocation aids them in developing a better understanding of financial issues
that will weigh them down in the future. The way the students handle their money varies
depending on what they need each day; various factors such as food, transportation, and other
educational expenses cause this to happen. Our understanding of how and where students
typically spend their money will help us better understand their personal needs. Students are less
likely to be in debt as their understanding of their financial situation and responsibility grows
(Norvilitis et al., 2006).

The purpose of an allowance is to fund life's needs and wants. With the aid of allowances, an
individual can decide what to do with their money. The student looks forward to receiving his or
her allowance every day because it can be used to purchase a variety of items. For them,
allowances are essential to surviving each day. The ability to go home or hang out with friends
after school is specifically made possible by allowance. An expense is a sum of money that
might be regularly spent to pay for necessities and wants in life. It is the cause of a person's
decreasing allowance. One of life's tragedies is having to pay for things, especially if you're
trying to save money. Additionally, it cannot be avoided because it is a part of every person's
daily routine.

Since TAPS Alicia currently permits face-to-face instruction, it is important these days to look at
how students in the accounting, business, and management fields put what they have learned into
practice since they will soon be future entrepreneurs, businessmen, and accountants. The
moment to assess how pupils are spending their daily allowances and if they are incurring
excessive daily expenses has come after they have lived at home for two years. The majority of
students believe they have more control over their finances than minority students do
(Micomonaco 2003).

Research by Delafrooz and Laily (2011) investigated how much financial literacy affected the
behavior of budgeting. 2,246 employees from the public and private sectors were given self-
administered questionnaires as part of the quantitative technique used for this study. The results
demonstrated that financial literacy has a substantial impact on budgeting habits and behavior.
People with inadequate financial literacy do not aim to save and eventually run into financial
difficulties.

Erskine, Kier, Leung, and Sproule (2005) conducted a study to look at further variables for
young people's budgeting behavior. A total of 1806 young Canadians between the ages of 12 and
24 took part in the survey, which was conducted in Toronto, Canada. The groups would be more
patient and more likely to save money if they were placed high on the adult or academic-oriented
dimension, while the groups that were placed high on the peer group-oriented dimension were
expected to be less patient and less likely to save money, according to the economic theory of
time preference and psychological theories about adolescent crowds. The outcome therefore
showed that peer group influence has an effect on the budgeting habits of individuals.

According to Mahdzan and Tabiani (2013), as referenced in Hinga (2012), those who save more
regularly exhibit a favorable attitude toward their personal budgeting practice compared to those
who do not save. The likelihood of having a good attitude about saving is strongly correlated
with the frequency of saving. Additionally, the practice of saving a percentage of one's salary
will probably increase the likelihood of having a favorable attitude towards saving. The
association between financial intention (family and peer group influences), attitude (financial
literacy), behavioral perceived control (self-control), and budgeting habit behavior in university
students has been the subject of several research studies in the past.

As Greene (2014) and Baker, Bettinger, Jacob, and Marinescu (2018) investigated the
connection between financial intention (family influence, peer group influence, and financial
literacy) and budgeting habit behavior, they discovered that an individual's increased financial
awareness leads to a positive budgeting habit behavior. 

Students are free to budget their allowances, but there are some things to keep in mind, such as
how they divide the money and how much their transportation, food, and school supplies cost.
Do pupils understand how to appropriately allocate their daily allotment or do they squander it
all at once? The items that we researchers are attempting to determine would be the findings are
a lot of unresolved questions.

This study focused on grades 11 and 12 of Top Achievers Private School, INC. Alicia Campus,
in correlating their budget and allowance. This aims to help them improve their allocation plans
and spending practices over time.

Statement of the problem

This study generally aims to determine the correlation between expenses and allowances of
senior high school students at TAPS Alicia. Specifically, this study is intended to answer the
following questions:

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

a) Age;
b) Sex;
c) Status (student/working/unemployed)

2. How much is the allowance of the respondents?

3. What expenses do the respondents incur?

4. How did the respondents allocate their allowances?

5. How do daily expenses impact student allowances, particularly for senior high school
students at TAPS Alicia?

The significance of the study

The focus of the study is the correlation between expenses and allowances of senior high school
students. Moreover, the results of the study will be beneficial for the following:

To SHS students, Since senior high students are our target respondents, they will benefit from
this. In this study, it talks about the correlation between the expenses and allowances of students.
This study will be beneficial to them given the fact that allowances are necessary to cover all
their expenses like transportation, meals, and other school necessities. In this case, the data given
in this study will provide them with factual information that is helpful in determining the
correlation between the expenses and allowances.

To Parents This will also benefit the parents who provide the allowances for their children. It
will help them in determining the appropriate amount of allowance they give.
To future researchers, All the findings and information from the study will serve as a reference
material for future researchers who wish to conduct the same study related to the correlation
between expenses and allowances.

    Conceptual Framework      
 
 
      
  Expenses of
Allowance
 
students
 

Figure 1. Conceptual Framework

Figure 1 presents the conceptual framework of this study. It consists of two variables: allowance
as an independent variable and student expenses as the dependent variable.

In figure 1, allowance as an independent variable generally refers to funding life's needs and
wants. With the aid of allowances, an individual can decide what to do with their money. The
student looks forward to receiving his or her allowance every day because it can be used to
purchase a variety of items. For them, allowances are essential to surviving each day. The ability
to go home or hang out with friends after school is specifically made possible by allowance.

Another variable, student expenses, is a sum of money that might be regularly spent to pay for
necessities and wants in life. It is the cause of a person's decreasing allowance. One of life's
tragedies is having to pay for things, especially if you're trying to save money. Additionally, it
cannot be avoided because it is a part of every person's daily routine. 

Assumption of the Study. 

This study aims to correlate the expenses and allowances of senior high school students of
TAPS Alicia.

 
  To determine the profile of respondents in terms of age, sex, and status
(student/employed/unemployed),

 To determine the daily allowance of selected SHS students, Alicia ABM students in
Grades 11 and 12.

 To figure out how much the expense of selected TAPS Alicia ABM students in Grades
11 and 12.

 To determine what expenses the respondents incur

 To ascertain how the respondents allocate their allowances.

 To determine how daily expenses impact student allowances, particularly TAPS, Alicia’s
chosen ABM students in Grades 11 and 12

Scope and Delimitation

The research study is limited and conducted with a minimum of 100 students and a maximum of
200 at TAPS Alicia. Researchers' attention will be given to the expense and allowances of the
students. This study employs a correlational research approach because it seeks to determine two
factors, namely the ability to stick to a budget and the expense of the pupils. The senior high
school students that participated in the research study were the responders. Aside from that, the
demographic profile will be gathered by the researchers, at their expense and allowance. The
socioeconomic situation of the participants in this study is not discussed. For example, the
income of the respondent's parents and the respondents' socioeconomic class. The study's
respondents come from Grades 11 and 12 students Senior High School, as they have experience
with budgeting. This is employed to evaluate and forecast the financial position of senior high
students.

Definition of terms

Amount: A sum awarded as compensation, a bounty, or for expenses. (Merriam Webster)

Budget-Suitable for someone who is following a plan for coordinating resources and
expenditures: suitable for one on a budget (Merriam Webster)

Allocate: To designate something for a specific purpose or to specific people or things for
distribution.(Merriam Webster)

Expense: Operating expenses that are offset against income for a particular period. (Merriam
Webster)
Financial literacy is defined as the ability to comprehend and apply a variety of financial
skills, such as personal financial management, budgeting, and investing (Jason Fernando,
1967).