CHAPTER I

INTRODUCTION

This chapter is divided into seven parts namely: (1) Background of the

study, (2) Statement of the problem, (3) Conceptual Framework, (4) Theoretical

Framework, (5) Definition of Terms, (6) Significance of the study, and (7) Scope

and Limitations.

BACKGROUND OF THE STUDY

The transition from secondary to tertiary education is a pivotal moment in

a student's life, especially for those specializing in vocational areas like bread

and pastry production (BPP). This period not only marks a significant step

towards career specialization but also introduces the challenge of managing

finances more independently. The study entitled "Financial management

practices among Grade 12 BPP students" aims to examine this crucial aspect,

focusing on how students in the BPP strand manage their financial resources.

This exploration is vital, considering that financial literacy and management play

critical roles in both personal well-being and professional success, especially in

entrepreneurial ventures within the culinary field. Financial management is an

indispensable life skill, deeply impacting an individual's ability to achieve financial

stability and security.

Money, as a universally acknowledged medium of exchange, is

fundamental to accessing quality education, supporting oneself through school,

and participating in enriching activities that go beyond the traditional curriculum.

The hypothesis driving this study posits that Bread and Pastry Production

students possess limited knowledge and skills in financial management,

potentially hindering their future entrepreneurial endeavors in the baking industry.

This assumption underscores the need to equip these students with the

necessary financial management skills to navigate the complexities of running a

successful business. To achieve this, the study employs a descriptive research

design, utilizing survey questionnaires to gather data on various financial

management practices such as budgeting, cash flow management, and financial

planning among Grade 12 Bread and Pastry Production students. The

significance of this study lies not only in its contribution to understanding the

financial literacy of vocational students but also in its potential to influence

educational policies and practices. By identifying the financial management

strengths and weaknesses of BPP students, educators, policymakers, and

industry stakeholders can develop targeted interventions. These interventions

could range from integrating financial literacy programs into the curriculum to

providing practical resources tailored to the needs of aspiring entrepreneurs in

the culinary field.

In conclusion, this study serves as a critical inquiry into the financial

management practices of Grade 12 Bread and Pastry Production students,

situated at a crucial juncture in their educational and professional journey. Its

findings are expected to contribute valuable insights into enhancing financial

literacy and management skills among these students, ultimately supporting their

transition into successful professionals in the baking industry. Through targeted

educational interventions, these future entrepreneurs can be better prepared to

navigate the financial landscapes of their chosen careers, ensuring their personal

and professional well-being.

STATEMENT OF THE PROBLEM

This study will be conducted to determine the financial management

practices of Bread and Pastry Production (BPP) student of Banate National High

School, School Year 2023 – 2024.

Specifically, this study sought to answer the following questions.

1. What are the financial management practices of the Grade 12 BPP

students?

2. What are the financial management challenges encountered by BPP

students in terms of the amount of daily allowances.

CONCEPTUAL FRAMEWORK

INDEPENDENT VARIABLE DEPENDENT VARIABLES

 Amount of Daily Allowance
of Grade 12 BPP students
 Financial Management
Practices of Grade 12 BPP
students
 Challenges encountered by
Grade 12 BPP students

Figure 1. Research Conceptual Framework

The conceptual framework explores the relationship between various

independent variables and dependent variables concerning the financial

behaviors of Grade 12 Bread and Pastry Production (BPP) students. The

researchers use the Independent Variable – Dependent Variable Model (IV-DV).

It shows the independent and dependent variables of the study. The independent

variable is the amount of daily allowance of Grade 12 Bread and Pastry

Production students while the dependent variables encompass financial

management practices and challenges. Through this framework, we aim to

investigate how these independent factors influence the financial decisions and

hurdles faced by Grade 12 Bread and Pastry Production students, providing

valuable insights into their financial behaviors and potential avenues for support

and intervention.

THEORETICAL FRAMEWORK

The focus of this study is the financial management practices of Bread

and Pastry Production students. It explores how Bread and Pastry Production

students’ financial knowledge can impact how they budget their allowance. In

relation to this topic, Resources Acquisition and Allocation Theory (Kirchler, 1993)

focuses on how individuals acquire, manage, and allocate resources. We will

determine how students source their income, allocate their finances (including

program-specific expenses), and make trade-offs between competing needs and

wants (Kirchler, 1993).

SIGNIFICANCE OF THE STUDY

In this study, researchers will be able to understand and acknowledge the

financial management practices of Grade 12 Bread and Pastry Production

Students. This study will provide background and information to other people

who may benefit in this study. Therefore, from these initiatives this study is

significant on the following aspects:

 Students. The findings of this study will benefit not only the Bread and

Pastry Production students but to all students of Banate National High School to

enhance their financial literacy and gain valuable knowledge and skills in

budgeting, saving, responsible borrowing, and debt management, leading to

more informed financial decisions throughout their lives.

Incoming Bread and Pastry Production (BPP) students. The result of this

study will equip incoming bread and pastry production students with practical

financial management practices that will help them budget their allowances for

ingredients, equipment, and other strand related expenses.

Parents. The result of this study will let parents understand their children’s

financial situation, gain insight into their children’s spending habits, saving

practices, and potential financial challenges within the BPP field. This knowledge

can help them provide better financial guidance and financial support.

Teachers. By understanding the students’ financial literacy level and

practices, teachers can identify how students spend their allowance in relation to

the requirements or projects they are assigning. This study will also let them

know if the students’ allowance is sufficient for them to meet their target

requirements. This can help them develop targeted interventions and strategies

to address these gaps.

School Administrators. This study can be beneficial for them to

understand the financial situation of Bread and Pastry Production (BPP) students

and allocate resources and support to improved financial literacy education

based on study findings.

 Policymakers. This study can contribute to the development of broader

policies and initiatives to promote financial literacy not only for the Bread and

Pastry Production Students but among young people in the Philippines.

Future Researchers. This study will serve as their cross-reference that

will give them a background or an overview on understanding financial

management practices among Bread and Pastry Production (BPP) students of

Banate National High School. This can inform future research questions,

methodologies, and comparisons across different contexts.

DEFINITION OF TERMS

The following terms are conceptually defined. Some are operationally

defined for the researchers to have a better understanding of the relevance of

these terms in the present study.

Allowance. It is the amount of money given or allocated usually at

regular intervals for specific purpose also a sum granted as a reimbursement or

bounty or for expenses (Merriam Webster Dictionary, 2013).

In this study, allowance is the money given by their parents to the

students of Grade 12 BPP students to be used for the daily need in school.

Bread and Pastry Production (BPP) students. These are students

taking the technical vocational program that develops the skills of a student in

preparing and producing bakery/pastry products, cakes, and desserts

(www.DepEd.com, 2016)

In this study, BPP students refers to the respondents who are enrolled in

Banate National High School, School Year 2023-2024.

 Budgeting. It is a crucial aspect of financial management. It involves

creating a plan for how to allocate income and expenses to meet specific

financial goals. (Merriam-Webster, 2018).

In this study, budgeting refers to the efficient and effective allocation of

the daily allowances among BPP students of Banate National High School.

Financial Decisions. Refers to deciding how and when to save and

spend money. (www.dictionary.com, 2018)

In this study, financial decisions refer to the financial knowledge and

decision-making skills of BPP students of Banate National High School.

Financial Literacy. The ability to understand basic principles of business

and finance. (Cambridge Dictionary, 2020)

In this study, financial literacy refers to the knowledge and skills of the

BPP students needed to make informed on financial decisions.

Financial Management. It is a functional part of a business organization

that sets policies towards organizing, planning, controlling, and directing the

proper use and allocation of its financial resources.

In this study, financial management refers to the strategic planning of how

a BPP students save and spend their allowance.

Financing. It is the act or process of providing funds for a person or

enterprise. (Merriam-Webster, 2000)

In this study, financing refers to the financial activities that support the

lives of BPP students of Banate National High School.

 Practice. Refers to do or to perform often, customarily, or habitually

(Merriam-Webster, 2000)

In this study, practice refers to the regular or daily activity of learners on

their allowance.

Saving. Tending to save or preserved. (www.dictionary.com, 2020)

In this study, saving refers to the allowance of the Bread and Pastry

Production students.

Socioeconomic Status. Socioeconomic status is the social standing or

class of an individual or group. It is often measured as a combination of

education, income, and occupation. (American Psychological Association

Organization).

In this study, socioeconomic status refers to the individual's or family's

economic and social position relative to others based on their annual income.

Students. a person who attends school or university (Merriam-Webster,

2020)

In this study, students are Bread and Pastry Productions students.

SCOPE AND DELIMITATIONS

This study will be conducted to investigate the financial management

practices among Bread and Pastry Production (BPP) students School Year 2023-

2024 of Banate National High School. Using a purposive sampling the

respondents of the study are 38 students from Psyche and 40 students from

Cupid, a total of 78 students from two sections of Bread and Pastry Production

Students. Through conducting this study, we are educating students to have full
knowledge on how to spend their money wisely and to be thrifty while spending

their money for necessary needs. Due to time and resources constraints, the

sample size may be limited. The findings may not be generalized to the entire

population of Bread and Pastry Production Students in the Philippines.