Chapter 1

BACKGROUND OF THE STUDY

A. INTRODUCTION

People spend their money on a daily basis, whether it may be for their necessities or for

their personal satisfaction. And due to this, they are constantly losing money, making it difficult

for them to save and meet their goals. Therefore, it is important that one be educated in terms of

financial literacy. Financial literacy, according to Fernando & Schmitt (2021), is the knowledge

and skills that allows every person to be informed and make effective decisions regarding their

money. Being financially literate entails not only stability in the future but also the knowledge

that will stick to them throughout their life.

As children get older, they are faced with lots of responsibilities, one of which includes

finances. Thus, not being able to understand basic financial concepts at an early age, might make

it difficult for them as they progress through adulthood. Most students are already familiar with

handling money, however, many of them still lack the foundational understanding that will serve

them well in the long run. Moreover, being able to provide for one’s needs and achieve one’s

goals, can stem from their ability to manage their finances effectively. In addition to that, Maur

(2018) emphasized that many filipinos struggle to pay for their basic needs due to their lack of

financial education. And the number of senior dependents or retirees who rely on their children

for financial assistance is increasing.

 This study was undertaken by the researchers to promote financial literacy among high

school students and to assist them in effectively managing their finances, so that they may grow

up to be financially responsible individuals.

B. STATEMENT OF THE PROBLEM

The study aims to create an application, BillFold, on financial literacy for high school

students. Specifically, it seeks to answer the following questions:

1. What are the functions of each feature in this app:

1.1. Calculator

1.2. Expense tracker

1.3. Balance checker

1.4. Budgeting calendar

1.5. Savings book

1.6. Informative wallet

1.7. Login/Sign up feature

C. RESEARCH OBJECTIVES

I. To determine the functions of each feature in this app.

1.1. Calculator

1.2. Expense tracker

1.3. Balance checker

1.4. Budgeting calendar

1.5. Savings book

 1.6. Informative wallet

1.7. Login/Sign up feature

D. SIGNIFICANCE OF THE STUDY

This study is beneficial to students, especially to those who lack financial awareness, for

it provides them with an application that comprises of devices that will assist them in managing

their finances better. Also, it provides information on financial literacy. With this, one can gain a

better understanding of financial literacy while keeping control over their finances. This research

also teaches them how to make responsible financial decisions that will eventually impact their

future.

E. SCOPE AND LIMITATION

The BillFold app is designed to assist individuals, specifically high school students, in

managing their money and finances. This is made possible with the use of its features, including

an informative wallet, a calculator, an expense tracker, a balance checker, a login/sign-up

feature, a budgeting calendar, and a savings book. Also, it provides information on financial

literacy. Research and studies will be used as references for the given information.

the MIT App Inventor, however, has its limitations, thus, the app will not be containing

features such as an advanced calculator, access to any form of bank account, or an email and

cellphone reminder. Its users will have to manually input their expenditures and finances for this

app is not linked to any banking platforms or accounts.

 F. DEFINITION OF TERMS

The following terms were defined to facilitate a better understanding of the terms used in

the study.

BUDGETING. It refers to the process of making a spending plan.

EXPENSES. It refers to the cost of something; a product or service.

FINANCIAL CRISIS. It is a situation in which one's financial assets and resources drop rapidly

in value, causing panic among individuals. (Kenton & Scott, 2021).

FINANCIAL LITERACY. It is the knowledge and skills that allows every person to be

informed and make effective decisions regarding their money. (Fernando & Schmitt, 2021).

FINANCIALLY LITERATE. It refers to an individual who uses their financial knowledge to

make better financial decisions. (Financial Literacy 101, n.d.).

FINANCIAL SECURITY. It refers to the ability to support one's lifestyle while still working

on their financial objectives. (Cautero, 2019).

FINANCIAL STABILITY. It refers to individuals who are comfortable with their financial

situation. (Silva, 2022).

SPENDING BEHAVIOUR. It refers to one's behavior that affects how one uses their money to

meet their wants and needs without exercising any control. (Solomon, n.d.).

SPENDING HABITS. It refers to how individuals spend their money on a regular basis.

(Solomon, n.d.).

SPENDING LIMITS. It refers to the daily restriction on the amount that individuals would

spend. (Law Insider, n.d.).

SPENDING PATTERNS. It refers to what people buy and how much money they are likely to

spend. (Synergos Technologies, Inc., n.d.).