A Comparative Study between ABM and STEM Students In

Terms of Their Spending Practices

Researchers:

CULATON, Mina

GARNACE, Vanessa

MARQUIEZ, Adrian

SANTOS, Neil Angelo

VALDOZ, Maria Christina

ABM SMITH
 CHAPTER 1

The Problem and Its Background

Introduction

Spending money is a thing that people do every day. Having cultures among different

regions globally can greatly affect the spending practices of people. Spending practices

refer to how people manage their money and where they spend it. Individual culture has a

greater influence on how they spend their money. A study found that US students are free

to use their credit cards because of it. They can use their card even if they do not have

any money on hand. They do not think about their debt, and as a result, their debt grows.

Because they are not concerned if their debt grows, there are times that they do not have

financial allowance to pay it off and they are forced to work while studying to pay their

debt on credit cards. They spend or use them on school supplies, personal needs,

adventures, dining, and bills (Roberts and Sepulveda, 2013)

In the Philippines, spending practices is quite strict, given that majority of

Filipinos are in the low to middle class earners. Filipinos, especially on students are

having a problem when it comes to managing their expenses especially now as of this

writing that the global economy is experiencing a deep recession that results to increasing

price of goods. Often, students divide their money among transportation, food, school

expenses, personal expenses, and savings. They occasionally spend money on luxuries.

Students can manage their money by saving and being frugal in their spending.

Furthermore, there are students who are studying in relevant fields; ABM students

are students who studies the fields of accounting, business, and managerial courses in
higher education. They learn the principles of business in the twenty-first century through

the said strand. To prepare the learners for practical scenarios and further study, this

strand will expose many ideas, perspectives, and concepts in business, accountancy,

marketing, advertising, and entrepreneurship.

On the other hand, there is also another strand of higher education in the

Philippines: The STEM strand for senior high school students who are proficient in the

field of math, science, and engineering studies. Science, technology, and engineering are

intertwining disciplines when applied in the real world. This field focuses on advanced

concepts and topics that makes this strand distinguished from other strands.

Given that ABM and STEM strand has their different specializations, especially

on their subjects taken, assessing these data led the researchers to come up with a study

entitled: A Comparative Study between ABM and STEM Students In Terms of Their

Spending Practices.

Statement of the Problem

This study generally aims to determine the difference between ABM and STEM

students in terms of their spending practices.

Specifically, this study sought to answer the following problems.

1. How does the students be described in terms of:

1.1. Specialized Subject

1.1.1. ABM Students

 1.1.2. Stem Students

1.2. Age

1.2.1. ABM Students

1.2.2. STEM Students

1.3. Average weekly budget

1.3.1. ABM Students

1.3.2. STEM Students

2. How do the students allocate their weekly budget?

3. How do specialized subject affect ABM and STEM students in terms of:

3.1. Managing their expenses

3.2. Savings

4. What is the implication of the study?

Location of the Study

This study will be conducted in Victoria National High School located in San

Gavino, Victoria, Tarlac. The majority of the town’s students chose to attend this school,

which is the largest public secondary school in the area.

Significance of the Study

 This study will benefit the financial understanding of students, teachers, parents,

and the government. It will give a much wide perception on the finances of the students

and it will serve as a guide on to how students manage their money.

Government: This study will help the government on how they impose rules and

regulations that may help the students on their financial status.

School Administration: It will give them the benefit of having the information

on how they can give a help to students by delivering enough understandings and wide

perception of financial management.

Teachers: This study can benefit teachers by giving them a deeper perspective on

the students in terms of their financial status and financial management.

Students: Students can learn about other spending practices and apply them to

have good management.

Researchers: This study can be used by future researchers as a guide and

source of data in their future studies.

Scope and Delimitation

This study is about the spending practices of ABM and STEM students in terms

of budgeting their daily allowances.

The researchers will use 30 respondents in ABM and 30 respondents in STEM at

Victoria National High School on the school year 2022-2023.

Definition of Terms

ABM Students: Students who focus on studying accountancy, business, and

management.

Debt: This is the amount of money that the students owe the bank or any financial

institutions.

Luxuries: Goods that man may do without, but may give comfort and

satisfaction.

Money Management: This refers on how ABM and STEM students manage their

weekly allowance on their expenses and savings.

School Expenses: Education cost for supplies, projects, and equipment needed for

academic program.

Spending Practices: This refers to how students use their money on different

things.

STEM Students: Students who focus on studying science, technology,

engineering, and mathematics.

 CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

RELATED LITERATURE

Spending Practices

As stated Mimura, J., Koonce, J., Plunkett, S.W., & Pleksus, L., students are

greatly influenced by their family background in terms of their spending practices and

spending behavior. Regardless of their demographic backgrounds, parents and finance

courses may provide beneficial inputs for financial socialization among young adults.

Students are doing certain financial practices affected based on their parent’s financial

literacy.

Financial Literacy Among Students

Financial literacy is also being taught to school under specialized subjects, an

article from Condino, R. V., Del Monte, A. ., Rodriguez, J. ., & Tamon, C.-J. . (2020),

shows that Students can benefit from business finance lessons by learning to be

financially literate. This reflects one of the respondents that will be used in this study;

ABM students. In connection to this, C. Anderson & K. Card (2015) stated that The

incorporation of financial education improves students' perceptions of their financial

behavior in terms of compulsive spending decisions.

Mohamad, Rashid, Baharuddin, and Mansor (2016) covered the association

between spending behavior and peer influence. The University Technology MARA

Terengganu (UTM) data from 300 students reveals a positive Pearson association
between peer and spending behavior attitude. According to the data, every element has a

sizable positive link with spending behavior. Thus, UITM students' attitudes of spending

are significantly influenced by their peers. Peer effect on children's attitudes, beliefs, and

behavior, however, increases as they enter adolescence. This is due to the fact that after

starting college or university, students obtain independence from their parents, and their

behavior is similar to that of their friends. such that peer pressure.

RELATED STUDIES

FOREIGN STUDIES

Spending Practices

A study conducted by Alexandro , R (2019) stated that the purpose of this study is

to know the factors that influence the spending practices towards to the UiTM students.

And in that study he have a 100 students from science and non-science taken as

respondents for his study. And as a result of his survey shows that the students are still

not that good when it comes in spending behavior. This study is nearly the same with this

study because the covered of this study is to know the factors that may affect or influence

the ABM and STEM students on how they spender money and also to know if they can

spend their money in a good way.

A study by Azer and Mohamad , S.A (2018) stated that the students have a good

financial management practices because they are avoiding to spend their money to the

things that are not important. Also the researchers added that it can contributes to the

school to know the students financial management and financial problem to guide them

to make a wise decision when it comes to financial decision in the future. In relation, this
study aimed to help and guide the ABM and STEM students on how they can manage

their money properly.

According to Mien and Thao (2015), the study concludes that setting aside money

for savings has become the most prominent financial management technique. Relatively,

this study is intended to help the students in terms of their financial planning and think

more wisely in terms of their spending.

Impact On Financial Literacy

Parents are the main socializational forces that have a favorable impact on

financial literacy, according to Sabri and Falahati (2012). They discovered that students'

financial literacy is greatly improved if they have early consumer experiences as children

dealing with family finances. In essence, parents may help their kids become more

financially literate, which helps them handle their money better. In conclusion, raising

awareness among parents, relatives, and students about the significance of developing

sound financial practices may improve their knowledge and abilities in this area.

Ackom-Wilson, Kelvin Isaac (2016) The study's conclusions showed that the

procurement board, which is tasked with ensuring that the procurement of products and

services inside the schools adheres to established protocol, regulates the schools'

procurement system. The survey also discovered that the primary foundation for

managing income and expenses in schools' finances is their budgets. However, the results

showed that the central government's delayed funding disbursement and headmasters'

lack of financial management expertise were the two main obstacles to the schools'
effective financial management. It is related to this study by knowing the effective

alternative to do if the money is not enough in terms of student’s school expenses.

LOCAL STUDIES

Financial Practices

A study conducted by Arcones,P.D. (n.d.) shows how grade 11 students of St.

Gregory's College of Valenzuela spend their money on food, and according to the study's

findings, grade 11 students typically spend 50.00 or less every day throughout the week

they are given to manage their money. This study looked at how students budget their

own spending money.

Factors Affecting Financial Literacy

Bona J.T.C (2018) conducted a study that shows the factors affecting spending

behavior and the result of their study. After analyzing the data, the researcher came to the

conclusion that family background has a significant impact on how much money students

spend. Parents have a significant influence on their children's attitudes toward life in

general as well as financial management. Therefore, in order to give themselves the best

opportunity of succeeding as adults, young people must start learning about finance

during their youth. This study is related to our study by knowing how they handle their

money and how it can affect or what the differences if your background environment is

different than others.

A study by Abun, D., Magallanes, T., Encarnacion, M., Ranay, F., Tacmo, C., &

Bello, B. sought to ascertain the degree of ABM and STEM students' attitudes toward

business and their intentions to engage in it, as well as whether these attitudes varied
between the two strands (ABM and STEM). The study's theories were established after a

review of the literature. The study employed a descriptive correlational research design,

and validated questionnaires were used to collect the data. Students in grade XII who

were majoring in ABM and STEM at Divine Word Colleges in the Ilocos Region made

up the study's population. Based on Pearson r correlation, it was discovered that there is a

significant correlation between attitude and intention to do business, according to the

study.