Christ the King College – Accountancy, Business and Management Strand Page

Chapter 1

THE PROBLEM

Introduction

In an era marked by ever-evolving consumer trends and economic

uncertainties, the management of personal finances has emerged as a critical

aspect of individuals’ daily lives. According to Amanda Daper (2017), a frequent

mistake made by students was failing to establish and stick to a sensible budget.

Students who neglect to create and stick to a reasonable budget face the

possibility of depleting their funds before the school year concludes. Conversely,

the spending habits of young adults have become a prominent subject within the

field of financial management. According to Henry, Weber, and Yarbough (2019),

as well as Parotta and Johnson (2018), these individuals are increasingly making

more sophisticated financial choices and implementing financial management

practices.

In today's world, a majority of individuals, especially students, can’t live

without having money and spending it. In the current economic environment,

money serves as the lifeblood of society, playing such a crucial role that the entire

modern economy is fundamentally organized around it, as noted by Cline (2011).

Therefore, it is not only a practical necessity to provide young people with the

tools and knowledge they need to deal with this complicated topic of finance but

also a societal obligation. For students, money is indispensable for the

maintenance of their daily expenditure, which in particular includes transport

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expenses, meals, private needs, accommodation, and education costs like

periodical or monthly financial contributions as well as projects. Their ability to

manage the budget effectively has a significant influence on their daily

expenditures. The lack of financial literacy would be an indication that students

are faced with managing their own money effectively and efficiently in this

context.

In a study titled "The Level of Spending Habits among Accountancy,

Business, and Management (ABM) Students of Tacurong National High School:

Basis for Programme Intervention" by Pasco, Dee, et al. in 2023, it was found

that there is a high level of compulsive spending, a particular attitude towards

debt, and significant parental influence on saving. This suggests that teachers and

parents should play a role in helping students learn how to be thrifty. In addition,

according to “Student Budgeting and Spending Behaviours: A Comparative

Study,” Novilitis et al. (2006), students who possess a better understanding of

their financial stability are less likely to accumulate debt.

In line with that, it's worth noting that not all students in this research are

equally concerned or connected to their level of financial literacy. Some may be

primarily focused on their budgeting skills, while others may concentrate solely

on evaluating their spending habits. Moreover, the existing literature has not

thoroughly examined how budgeting skills and spending habits intersect among

ABM strand students, creating a gap in knowledge. These gaps present an

opportunity for a more comprehensive understanding of how financial education

impacts students' financial decision-making. Additionally, the research may

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encounter challenges in collecting data, such as the difficulty of obtaining honest

and accurate responses about personal finances, which could impact the

reliability of the research's findings.

For senior high school students in the Accountancy, Business, and

Management strand who are on the verge of entering adulthood, their level of

spending habits and their proficiency in budgeting not only impact their current

financial stability but also play a significant role in shaping their long-term

financial security.

The aim of this study was to explore the complex interplay between

spending habits and budgeting skills among ABM students. It sought to uncover

the underlying factors that influence these behaviours, their consequences on

financial stability, and potential avenues for enhancement. This research aimed to

gain a deeper insight into how students handle their finances, identify the factors

shaping their financial choices, and utilise this knowledge to enhance their

financial welfare, as well as inform educational policies and programs. Moreover,

the objective of this research is to fill these gaps in knowledge and overcome

potential issues in order to gain a comprehensive understanding of the financial

behaviour and needs of ABM strand students.

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STATEMENT OF THE PROBLEM

The goal of the study is to identify the relationship of the level of spending habits

and budgeting skills of Accountancy, Business and Management (ABM) students.

Specifically, it sought to answer the following questions:

1.) What is the demographic profile of ABM students in terms of:

1.1 age

1.2 gender

1.3 year level

2.) What is the level of spending habits in terms of:

2.1 parental influence on saving

2.2 financial conciousness

2.3 compulsive spending

3.) What is the budgeting skills of students in terms of:

3.3 financial planning

3.4 discipline

3.5 tracking

4.) Is there a significant relationship between the level of spending habits and

budgeting skills of ABM students?

HYPOTHESIS

Ho: There is no significant relationship between the level of spending habits and

budgeting skills of ABM students.

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CONCEPTUAL FRAMEWORK

Level of Spending Habits Budgeting Skills

 Parental influence on  Discipline

saving  Financial Planning
 Financial  Tracking
Conciousness
 Compulsive buying

Figure 1. Paradigm of the Study

Figure 1 presents the conceptual framework of the study. It consists of two

variables, the level of spending habits as the predictor variable and budgeting

skills as the criterion variable.

In Figure 1, the predictor variable, the level of spending habits refers to the

overall pattern and extent of an individual’s expenditures. It pertains to

understanding how money is allocated across various categories, such as parental

influence on saving, financial consciousness, and compulsive buying. Students

can attribute their money saving habits to their parents’ influence and they can

also borrow money from their parents leding to financial conciousness.

Compulsive spending involves unplanned purchases driven by spontaneous

desires.

Another variable, budgeting skills encompass the ability to create, manage,

and adhere to financial plan. Discipline as an exercising control over spending,

avoiding unnecessary purchases and adhering to budgetary limits. Financial

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planning as to adhere about how students plan to save money for the future,

whether its for setting aside funds for specific goal or for managing living

expenses. Tracking as a regular monitoring allowance and expenses to

understand where money is going, identifying areas for potential savings or

adjustments to stay within the budget.

Theoretical Framework

This theoretical framework will examine the relationship between

budgeting skills and the level of spending habits that can be approached through

various perspectives. One potential framework integrates psychological and

economic theories to understand how individual behaviors influence financial

decision-making.

Psychological factors considers individual differences, personality traits,

and psychological factors that may influence budgeting skills and spending habit

level, in exploring the role of self-control. Behavioral economics explores the

insights from behavioral economic to understand how cognitive biases an

heuristics may impact budgeting and the spending decision.

Theory of personal budgeting (Galperti, Simone, 2019) in this theory,

from credible research, consumers frequently use personal budgeting to address

self-control problems. This theory explores the relationship between budgeting

and self-control in consumption-saving decisions, revealing that budgeting is

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influenced by the demand for commitment and flexibility due to uncertainty

about trade-offs, and its interaction with minimum-savings rules.

Hawkins stern impulsive buying theory (2018), Hawkins stern theory

surely believed in the idea of impulse behavior, arguing that sudden buying

decisions are driven by external stimuli and have little relationship to traditional

decision-making. In connection of impulsive buying in spending habits it has a

great connection, connecting in the spending of unimportant things for each

student that just a want not a need.

In Social learning theory, spending habits are learned from parents and

other key personalities. Researchers and academics are interested in learning

more about how students spend their money. The factors affecting how students

spend their money have been the subject of several hypotheses. In order to

provide an understanding of the behaviors and decision-making processes

connected to student spending, these theories often include concepts from

disciplines such as economics, psychology, and sociology (Ghazanfar, 2023)

Scope and Delimitation

This research focuses on evaluating the relationship between budgeting

skills and the spending habits of ABM students at Christ the King College. The

choice of selecting Grade 11 and 12 ABM students in the academic year 2023-
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2024 ensures that the research address a critical contingency in these students

financial journey. ABM strand is known for its business and management skills,

making its ideas setting to investigate the relationship of the level of spending

habits and budgeting skills. Specific attention will be given to factors such as

allowance, financial priorities, and financial decision-making process.

This study is delimited to ABM students at Christ the King College, and its

findings may not be generalized to other academic disciplines or institutions. The

research will primarily rely on self-reported data from the participants, and

external factors beyond the defines scope such as economic fluctuations, are not

extensively considered. The researcher aims to maintain a manageable sample

size to ensure a focused analysis within the designated period. Despite these

delimitation, the study aims to provide valuable insights into the budgeting skills

and spending habits of the targeted student population.

Significance of the Study

Specific groups which will be able to benefit from the information gathered

through this research are listed below:

Students. The findings of this study aim to improve ABM students'

financial literacy and decision-making skills, as well as promote financial stability

and sound financial management through their educational journey until they

have fully engaged in professional careers.

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Educators and Schools. The findings of this study can be used by ABM

educators to improve their teaching methods, tailor financial education lessons,

and implement targeted programs to foster financial responsibility.

Parents. The findings of this study provide parents with valuable insights

into the financial challenges faced by ABM strand students, enabling them to

provide guidance and support for developing responsible spending habits.

Future Researchers. This result is the basis for further studies and can be

used as related literature.

Definition of Terms

For a better understanding of this study, the following terms are defined

in the context of this research:

Budgeting skills. It is a classification of expenses and flexibility in making

financial decisions when adopting a budget.

Financial Education. Assess students’ financial literacy in budgeting,

saving and spending management.

School. Christ the King College of Gingoog City.

Spending Habits. Insight into financial decisions across educational

expenses, daily necessities, leisure and impulsive buying.

Strand. Accountancy, Business and Management (ABM)

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Students. Grade 11- St. Pedro Calungsod and Grade 12- St. Scholastica of Christ

the King College ABM strand students, Senior High School Department.
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Chapter 2

REVIEW OF RELATED STUDIES AND LITERATURE

This chapter presents the review of related literature and studies considered

relevant to the present investigation. These materials were from books, journals,

unpublished and published studies. The literature provided the researcher with

support for this current study.

Foreign-Related Literature and Studies

Lots of students are getting used to being on their own for the first time, and

one of the problems they’re dealing with is managing their money. This becomes

a big issue when something they planned to spend money on changes

unexpectedly (Stollak, et. al., 2011).

In both academic literature and in the media, financial literacy, financial

education, and financial knowledge are frequently used interchangeably.

According to Remand (2010), the four most commonly used ways to define

financial education focus on budgeting, saving, borrowing, and investing. In

alignment with this, Kozina and Ponikyar in 2015 provided a definition of

financial literacy as the elements of human capital utilized in financial endeavors

to enhance an individual’s financial welfare. Conversely, according to Mahdzan

and Tabani (2013), financial literacy is regarded as a fundamental set of skills and

knowledge necessary for individuals to thrive in contemporary society.

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Additionally, according to Kraschowska in 2015, the definition of financial

literacy encompasses various aspects, such as the capability to manage one's

personal income, make sound financial decisions, grasp the implications of

current choices on present and future earnings, and navigate the job market.

Consequently, there isn't a universally accepted standard definition of financial

literacy. Some studies incorporate knowledge into the concept of financial

literacy, while others assert that true financial literacy entails the ability to make

well-informed financial decisions.

One of the most common problems currently affecting college students is

the enormous difficulty. Very little research has been done on this topic in terms

of people's ability to manage how they spend money globally. The present degree

of again, the spending issue has not been fully identified and resolved. As a result,

this study has emphasized, employing a descriptive research design to ascertain

the spending habits of 138 university students in Delhi and Mumbai. When it

comes to their expenditures, respondents were found to be constrained. When it

comes to entertainment and way of life, I used loosely the terms shopping, travel,

and academic reasons (Singh et. al., 2017)

Shah (2017), examine the numerous psychological and demographic

components that influence the Indian youth's buying habits. In spite of the

challenging circumstances following the surgical strike, GST, demonetization, and

other issues are just things that India eventually gets over. It did, in fact, come to

a short halt in spending, but things have returned to normal. The article

emphasizes how the spending demographic trend is prominently highlighted by

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the under-30-year-old Indian generation. Fueled by a 'want it all' mentality,

health, and social image consciousness, youth in India are making more

purchases than ever.

According to Su and Deng (2012), 12 percent of high school students had a

summary and budget for their pocket money and that 79 percent never

summarized their pocket money expenses. Money is the foundation of the

modern economy. In this society, money is very significant (Jin, 2011). Knowing

how to manage your personal finances is an important efficient method of

controlling private property. Personal property is something that everyone owns,

which will lead to financial issues. Students in high school will soon join society.

Their capacity for financial management will directly affect their intended

behavior and attitude. Therefore, having strong financial knowledge or good

personal financial management is essential.

Understanding personal money management is a crucial component of

effective private property control. Everybody possesses personal property, which

will cause financial problems. High school students will soon become part of

society. Their ability to manage their money will have a direct impact on their

intended attitude and conduct. So it's crucial to have solid financial

understanding or sound personal financial management.

According to Abhijeet Birari and Umesh Patil's article on “Spending &

Saving Habits of Youth in the City of Aurangabad” reveals significant differences

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across education levels and genders, with a significant portion going towards

shopping, fast food, mobile phones, investment, and transportation.

Another article, "Gender Differences in Saving and Spending Behaviors of

Thai Students," studies differences between male and female students when it

comes to saving and spending. The results showed that there was no difference in

saving behavior between male and female students, although females had a more

positive attitude towards saving and shopping than males. In addition, females

cared more about their wealth or the amount of money that they had than males,

whereas men had a positive attitude toward spending money

Local-Related Literature and Studies

In societies that stress individual responsibility and self-sufficiency,

financial literacy is a crucial skill. The same is true for young people living in a

neighborhood with a complicated financial situation (Amagir et al., 2020). This

has led to the recognition that better financial decision-making among adults and

children may result from increased knowledge and awareness of financial

concepts and hazards (Lusardi, 2019). It is necessary to assess the financial

literacy of high school students in order to identify at-risk groups and the causes

of low financial literacy. With this knowledge, it is possible to identify young

individuals who require financial literacy instruction and create efficient financial

education programs that are specialized for particular populations. It is also

helpful in developing policies that would enhance student financial decisions and
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equip them with the knowledge they need to make sensible choices, ultimately

supporting them in being financially stable.

According to Lusardi (2019), there are an increasing number of nations

that offer financial literacy classes in schools. In the Philippines primary and

secondary school curiculla of financial literacy is not officially required.

For the most part, for pupils, reaching their best academic achievement is

fraught with difficulties. It takes much more than just studying to finish an

educational program. Time management, money troubles, lack of sleep, social

activities, and, for some students, taking care of their families can all compromise

a student's academic performance. Despite these challenges, teaching students

about finance as early as possible, in addition to important subjects like science,

English, and the like, will help them integrate into society in the future.

As reported in Lusardi and Mitchelli (2007), Lusardi et al. (2010), and

Gerardi et al. (2010), inadequate financial literacy can have serious

repercussions. As a result, policymakers and educators must know how to

increase financial literacy, particularly among young people. The first step in

creating effective educational materials is to comprehend the aspects of financial

literacy in the context of current educational programs.

To achieve sustained success, it's important to make wise decisions about

finances and cash management. Students, as the backbone of a nation, should be

physically and mentally prepared for the future. The management of funds
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involves budgeting, saving, and investments, as well as spending. Social liberty

should be taken into account, and students must keep up to date with fashion

trends, given the fact that they are allowed to spend on brand clothing, luxury

mobiles, or costly meals.

A few studies on financial education or financial literacy have become

publicly accessible in the Philippines. The majority of studies focus on the effects

of spending on school performance. The usage of budgeting skills is only briefly

discussed in a few studies.

Bona's study (2018), focusing on the spending habits of university students

in Surigao Del Sur, highlights the role that parents play in shaping attitudes

toward finance and life as a whole. The importance of parents having a strong

impact on children's attitudes towards finance is emphasized, highlighting the

need for early learning about finances. The key components of effective financial

education include good attitudes, supportive parents, and the involvement of

children in the decision-making process.

Research by lovato (2017) reveals that there was a connection between

personal budgeting and allowances with compulsive buying. Additionally, other

findings indicated that practicing self-control could diminish the impact of

allowances on compulsive buying behavior. Similarly, students' financial

decisions have been shown to affect their academic performance in a study

conducted at the Bestlink College of the Philippines (Valenzuela, et al., 2019).

Students' financial literacy and success can be significantly enhanced through

real-world applications of financial concepts, beyond theoretical teaching.

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Financial planning, as highlighted by Syakirah & In Azam (2017), is

crucial for students. Prioritizing needs over desires and making informed budget

decisions empower students to navigate their financial futures responsibly.

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Chapter 3

METHODOLOGY

This chapter describes the method of research design, the respondents of

the study, the instruments used, data gathering procedures and statistical

treatment and analysis.

RESEARCH DESIGN

The researcher will employ the quantitative method and use descriptive-

correlational design to determine the level of spending and budgeting skills of

students based on a survey. The descriptive correlation is simply defined as a

relationship between two variables. The whole purpose of using correlations in

research is to figure out which variables are connected. This method provides

essential knowledge about the concepts used in the study as well as their

relationship with each other. It is considered most suitable for assessing the given

condition due to its focus on understanding relationships between variables.

SAMPLING PROCEDURE

The researcher will employ stratified random sampling. It is a method of

sampling from a population which can be partitioned into subpopulations. In this

study, the whole population is ABM students which are subdivided into two

sections, Grade 11 St. Pedro Calungsod and Grade 12 St. Scholastica. The
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researcher will use fishbowl method to get the participants in each year level or

sections.

RESPONDENTS OF THE STUDY

The respondents of this study will be the Grade 11 and 12 Accountancy,

Business, and Management (ABM) Strand students of Christ the King College,

Gingoog City. The total population of ABM students in the selected schools wis

54. The population is subdivided based on their year level or sections. Among 54

ABM students, 48 is the total sample size which was utilized by an online sample

size calculator. (Figure 1)

Figure 1. Population and Sample Selection

GRADE ABM STRAND SAMPLE SIZE

LEVEL/SECTION STUDENTS

(POPULATION)

Grade 11 St. Pedro 28 25

Calungsod

Grade 12 St. Scholastica 26 23

TOTAL 54 48

RESEARCH LOCALE

This study is executed at Christ the King College in Gingoog City, which is

compose of Grade School, Junior High School, Senior High School and college

students. The Senior High School Department, particularly ABM students, was

chosen to engage in our research “Budgeting Skills and the Level of Spending
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Habits of ABM Students of Christ the King College” to focus the study of our

research.

RESEARCH INSTRUMENT

The instrument spending habits and budgeting skills were adapted to Philippot,

C.M. (2020). The survey questionnaires were tailored and adjusted to align with

the characteristics of the study's respondents. The survey was modified to better

cater to students at Christ the King College who are pursuing studies in

accountancy, business, and management.

SCORING PROCEDURE
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The instrument of the level of spending habits and budgeting skills were

adapted from Philippot (2020).

The level of spending habits study results will be analysed based on the

responses provided by the participants.

Descriptive Level Weighted Interpretation

mean/Equivalent

Very High 4.50-5.00 The means that spending

habits are always observed
High 3.50-4.49 The means that spending
habits are oftentimes
observed
Moderate 2.50-3.49 The means that spending
habits are sometimes
observed
Low 1.50-2.49 The means that spending
habits are rarely observed
Very Low 1.00-1.49 The means that spending
habits are not observed
The budgeting skills study results will be analysed based on the responses

provided by the participants.

Descriptive Level Weighted Interpretation

mean/Equivalent

Very High 4.50-5.00 The means that budgeting

skills are always observed
High 3.50-4.49 The means that budgeting
skills are oftentimes
observed
Moderate 2.50-3.49 The means that budgeting
skills are sometimes
observed
Low 1.50-2.49 The means that budgeting
skills are rarely observed
Very Low 1.00-1.49 The means that budgeting
skills are not observed
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VALIDITY AND RELIABILITY TEST OF THE RESEARCH

INSTRUMENT

The original survey questionnaire was created by Philippot (2020) for her

thesis at the University of Alberta. Its purpose was to explore the current

knowledge of personal finance, attitudes towards money, and recent spending

behaviours of young adults. The survey questionnaires was also used by Pasco et.

al. (2023) to determine the level of spending habits among accountancy, business,

and management students of Tacurong National High School.

To ensure the instruments' validity, clear and straightforward language

will be employed in the instructions and questions. The group leader, along with

all members, thoroughly reviewed the questionnaires for potential grammar and

sentence errors. Further validation will be conducted by Ms. Imee Fuentes, the

respected research subject teacher. Subsequently, senior high school students

from the ABM strand participated will answer the survey questionnaires to

evaluate the instruments in the study.

DATA GATHERING PROCEDURE AND ETHICAL PROCEDURES

The researcher will be modifying the survey questionnaires to enhance

their effectiveness in gathering insights into the financial literacy of ABM 11 & 12

students at Christ the King College. Following the modifications, the

questionnaires are then distributed to the researchers involved in the study,

facilitating collaboration and preparation for data collection. Before proceeding

further, the researchers submit the prepared questionnaires to a research

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professor for validation, ensuring adherence to ethical considerations and the

clarity of questions.

After receiving validation, the finalized questionnaires are distributed to

the ABM 11 & 12 students. This step underscores the importance of informed

consent, voluntary participation, and protection of participants' privacy rights.

Subsequently, the researchers prepare the questionnaires for distribution to the

ABM 11 & 12 students, considering their expertise in financial literacy. The

instrument provides detailed explanations to assist respondents in accurately

answering the questions.

Upon completion of the survey, the collected data is meticulously

tabulated, ensuring accuracy and reliability in preparation for analysis. The

Cronbach alpha will be used in identifying the study’s level of spending habits and

budgeting skills. The data undergoes analysis using the most appropriate

statistical procedures, maintaining the highest level of objectivity in discussions

and interpretations throughout the research process. Throughout the data

handling process, ethical considerations are prioritized. Adequate confidentiality

is maintained, and any possibility of misleading information or biased

representation of primary data findings is actively avoided. Ethical transparency

extends to declarations of affiliations, sources of funding, and possible conflicts of

interest, ensuring openness and trustworthiness in the research. Any

communication related to the research is conducted with honesty and

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transparency, aligning with the ethical principles developed by Bryman and Bell

(2007).

STATISTICAL TREATMENT OF DATA

After the data will be collected, the following statistical treatments will be

done, according to a given objective:

Research question 1, 2, and 3 will evaluate data through descriptive statistics.

The first question about demographic profile employs a frequency and percentage

of the factors under this variable. The second question will use the 5 point likert

scale and will have weighted means, frequency and percentages of each

description.

Research question 4 utilizes the Pearson correlation coefficient as a measure

in comparing the total scores in the level of spending habits to overall scores for

budgeting skills.