CHAPTER I

THE PROBLEM: INTRODUCTION AND BACKGROUND

Everyone's ability to manage their own finances depended on their level of

financial literacy, therefore teaching senior high school students about money
management would be a good way to increase financial literacy and personal wealth.
Financial literacy was correlated with gender, higher academic achievement, parental
education level, and relative income level, according to Ginardi, A. et al. (2017).
(GAP)Were intended to assist students in improving their reading, evaluating, and
management of their own accounts so they might prevent daily financial issues or
concerns.

Investigating professional financial concerns is valuable, especially in the area of

money management, which has been demonstrated to dramatically rise as a result of
society knowledge of its advantages. Because fostering financial literacy among students
is necessary to avoid ongoing issues brought on by a lack of understanding of personal
financial management. This highlights how crucial it is for students to be conscious of
their financial situation given their upbringing, outlook, and family. Moreover (Sagi, J.,
Vasa, L., & Lentner, C.S. 2020). (Sagi, J., Vasa, L., & Lentner, C.S. 2020). Financial
literacy has been found to be an effective strategy for lowering households' vulnerability
to financial problems, bridging crisis times with sizeable precautionary reserves of liquid
assets, and enhancing their well-being over longer time periods. J. Farinela, J. Bland, et
al. claim that taking a money management course does not make a student less willing to
avoid debt, which is something that most governments are concerned with in 2017. On
the other hand, increasing a student's likelihood of staying out of debt is learning about
money management in another course.

Except from that (Thomas, A., and V. Gupta, 2021). An individual's

involvement in information exchange as a medium in the improvement of financial well-
being (FWB) total pleasure with one's present financial circumstances. Moreover, the
financial effects of changing one's financial practices. It was said by (Condino, R.V. et
al., 2020). The knowledge and comprehension of how money is created, spent, and saved
are used to enhance literacy. Students should be aware of how money functions in their
hands and how to manage their finances. Thus, a daily budgeting plan is suggested to
students who struggle with financial literacy in order to reduce and keep track of the
underlying causes of their spending.

Cleverism, 2019) Planning was done throughout the state characterized as the
capacity to consider and successfully overseeing actions to accomplish definite objectives
utilizing any tools at hand. Planning served as a kind of road map that before we tried to
begin a task, instructions on how to finish it were provided. They can determine in
advance whether they will have enough money to carry out the tasks they need or wish to
carry out by creating a spending plan. Planning served as a manual for deciding how
much money to spend each day by using a budget according to (Sollano et al., 2018), this
study discovered that pupils who are given a daily stipend at school to foster financial
literacy are more likely to thrive academically. The table indicates whether a student's
daily allocation is between 21 and 41 or more, with a daily allowance of 41 or more being
the norm for most students. Also, it was shown that the majority of pupils performed
academically between 85 and 89, which is considered to be "satisfactory" in terms of
grades. The researchers come to the conclusion that there is a substantial connection
between the socioeconomic position of the parents and the student's academic
achievement. This research looks into the link between student financial aid and
academic achievement. It disregards the many goods that a student can purchase clearly
states that higher spending allowance raises a student's academic performance.

Lastly. The scientists found that student budgeting is challenging due to the fact
that they use a substantial a portion of it on unnecessary purchases. The students'
financial circumstances were impacted social media, the media, and their peer group
friends. Financial literacy helps students succeed and advance. In addition, having a good
 understanding of your financial condition is essential. It is advised to develop financial
literacy (Tamon, C.J.2020). Is a daily spending schedule to reduce and keep track of
their spending. Regardless of how much or little money you have, it is a good idea to
spend responsibly. This is a great approach for students to save money and raise their
financial literacy at the same time. The student saves a proportionate amount each month
for their expenses since they have a substantial obstacle or difficulty sticking to their
budget.

STATEMENT OF THE PROBLEM

A.
 NAME:
 AGE:
 GENDER

B.
What is the effect of financial awareness on budgeting and spending habits of ABM
students on FEAPITSAT Dasmariñas?

C.
What makes the students of FEAPITSAT Dasmariñas aware about budgeting and
spending habits of ABM students?

SIGNIFICANCE OF THE STUDY

Improving Financial Awareness on Budgeting and Spending Habits. Financial

Literacy is the ability to understand how money works: how someone makes, manages,
 and invests it. This research can be used by teachers to instruct their ABM students about
financial literacy. Students will profit from the method for managing their finances and
debt effectively because it will enable them to save money while they are in school.

Instructing students in financial literacy is intended to improve their

understanding of money comprehension of fundamental financial ideas in order to better
manage their finances. Senior high school students' financial education enhances the
standard of financial services and promotes a nation's economic development.

The findings of the study can be used to find out if ABM students are becoming
more financially aware in terms of their spending and budgeting habits. High School
Senior.It will show which educational material the teachers value the most.With the
findings, it would be possible to demonstrate to teachers and other school personnel that
financial literacy is a necessary component of being able to enroll in senior high school,
whether the answer is Yes or No.It can be used as a tool for tracking spending patterns
and financial budgeting.

ASSUMPTION OF THE STUDY

1. To know their ability to effectively manage financial resource.

2. To know the importance of Financial Awareness.
3. To know the budgeting and spending habits.

SCOPE AND LIMITATIONS OF THE STUDY

This Study focused on the level of financial Awareness of senior high school student in
ABM 11 & 12 to analyze and develop money management efficiently and also be able to identify
the factors affecting the level of financial improvement. This study is limited to student of
FEAPITSAT College of Dasmariñas.

The fact that the student researchers, despite the fact that it is encouraged, guarantee that
the participants answered the survey honestly constitutes a limitation of this study. Another
important limitation of the study had already been conducted at other schools and there was no
other way to change the results, the researcher was unable to do so.
The studies make use of the original population's size.

RESEARCH PARADIGM

OUTPUT PROCESS OUTPUT

IMPROVING FINACIAL The researcher will get

AWARENESS on information by the
BUDGETING and following:
SPENDING HABITS of
ABM STUDENTS in  SURVEY
FEAPITSAT COLLEGE of  QUESTIONNAIRE
Dasmariñas  INTERVIEW

A.

 NAME
 AGE
 GENDER

B. What is the effects of

improving financial
awareness on budgeting and
spending habits of ABM
students?
 C. What makes the student
of FEAPITSAT Dasmariñas
aware about budgeting and
spending habit of ABM
students?

HYPOTHESIS OF THE STUDY

Null hypothesis (H0): Student budgeting primarily refers to management of financial expenses
within their assigned budget.
Alternative hypothesis (H1): Student budgeting and spending is consuming money for their
needs and wants.

DEFINITION OF TERMS

Financial Awareness - The ability to use knowledge and skills to effectively manage financial
resources efficiently at a personal-level and through the lifecycle. Also awareness for the students
who have ability to finance literacy.

Financial Literacy - The ability to understand and apply different financial skills effectively,
including personal financial management, budgeting and savings.

Budgeting/ Budget - A plan used to decide the amount of money that can be spent and how it
will be spend. A student how to spend their money in daily needs.

Spending Habits - A way you put your plan into action and to develop spending habits that will
help you balance you’re spending with your income.

Financial - relating to money. A student financial in budgeting. Students -Refers to the students
or learners that lack knowledge about budgeting a student who is studying at a FEAPITSAT
College of Dasmariñas.

Budgeting Skills - The ability of an individual to adopt a proactive approach.

Planning - The process of making plans for something. A planning to budget their money for
academic purposes or daily needs.

Financial Circumstances - means unavailability of dry-docking facilities; unavailability of

repair facilities; unavailability of essential materials, equipment or spare parts; or delays incurred
by action taken to avoid severe weather conditions.

Lowering Households – lack of access to economic resources (income) to satisfy basic material
needs. A person (or. household) is considered poor if the person's (or household's) income cannot
acquire the basket of goods and services used to define a threshold for poverty.

Underlying - significant as a cause or basis of something but not necessarily manifest or obvious.
"the flu can be particularly severe for the elderly and those with underlying conditions"