Theoretical framework 

The theories that will serve as the basis of our study are as follows:

Behaviorism or the Behavioral Learning Theory 

Behaviorism or the Behavioral Learning Theory was founded by John Broadus Watson
and Burrhus Frederic Skinner. Behaviorism focuses on the idea that all behaviors are
learned through interaction with the environment (Watson, 2022 & Skinner, 2022). This
learning theory states that behaviors are learned from the environment, and says that
innate or inherited factors have very little influence on behavior. 

This theory is relevant to the study since it determines student's’ behavior on how it
affects their allocation of allowances.

Explanation:
Behaviorism or the Behavioral Learning Theory focuses on the idea that all behaviors are
learned through interaction with the environment (Watson, 2022 & Skinner, 2022). This
learning theory states that behaviors are learned from the environment, and says that
innate or inherited factors have very little influence on behavior. For example: Peer
pressure

Consumer Theory 

Consumer Theory is the study of how people make financial decisions based on their own
preferences and budget constraints (Liberto, 2022). Consumer theory shows how
individuals make choices subject to how much income they have available to spend and
the prices of goods and services. In this theory, Individuals have the freedom to choose
between different bundles of goods and services. According to Kenton (2022), people are
not always rational and are occasionally indifferent to the choices available. 

This theory assumes that people, given their preferences and constraints, are capable of
making rational decisions by effectively weighing the costs and benefits of each option
available to them. Thus, the researchers intend to utilize their knowledge of this to
determine where the ABM students allocate and how they budget their allowances based
on their preferences and budget constraints.

Explanation:
Consumer Theory is the study of how people make financial decisions based on their own
preferences and budget constraints. Consumer theory shows how individuals make
choices subject to how much income they have available to spend and the prices of goods
and services. In this theory, Individuals have the freedom to choose between different
bundles of goods and services.

Social Learning Theory 

Social Learning Theory was discovered by Albert Bandura. He conducted a series of

experiments in 1961 and 1963 to see if social behaviors (aggressions) could be learned
through observation and imitation. The research that entailed children observing a model
punch an inflatable doll looked to support the idea that children emulate their behavior by
watching others. These experiments were collectively known as the Bobo doll
experiments. Supported by his findings in the Bobo doll experiments, Bandura developed
the social learning theory in 1977. The theory later evolved into the social cognitive
theory in 1986 which postulates that learning takes place in a social framework with an
ever-changing and shared interaction between the person, environment, and behavior.
Social learning theory suggests that social behavior is learned by observing and imitating
the behavior of others.

This theory is relevant to the research study since it helps in learning how ABM students
can learn from other students on how they allocate their money through observing and
imitating other students' behavior.

Explanation:
The Social Learning Theory suggests that social behavior is learned by observing and
imitating the behavior of others. For example: a child is observing and imitating their
favorite superhero, by imitating the child can act like a superhero.

Lastly, the Social Cognitive Theory 

Social Cognitive Theory was developed in the 1960s as an alternative theory to explain
human behavior. According to Bandura (1986, 1997), behavior is influenced directly by
goals and self-efficacy expectations and indirectly by self-efficacy, outcome expectations,
and sociostructural factors. SCT suggests that an individual's behavior choices are
selected based on internal and external factors, such as the environment, model selection,
and past experiences. In terms of human learning, SCT suggests that an individual does
not learn a behavior out of conditioning, but selects behaviors based on the desire to
achieve a certain outcome.

This theory can aid the study since the environment and people's interactions are the main
factors in an individual’s behavioral choices. Thus, this theory may help the researchers
to identify the factors that influence Grade 12  ABM students' behavior in budgeting their
allowance.
Explanation: Social Cognitive theory (SCT) suggests that an individual does not learn a
behavior out of conditioning, but selects behaviors based on the desire to achieve a
certain outcome. In SCT a person can adapt or select a model for their behavior that can
have a big impact to a individual. This theory may help us or we the researchers to
identify the factors that influence Grade 12 ABM students’ behavior on budgeting their
allowance.