Chapter I

THE PROBLEM

Introduction

Today’s generation students are more likely to spend their money on things that they

just want and not to those things that they necessary need. The Spending Behavior of some

college students took our interest and make us eager to study it particularly on the university

setting. Conducting this kind of research and to understanding how college students manage

their money effectively and efficiently, how they manage their finances and how they make

or plan their financial decision is we think is very crucial for their what we call financial well

being as well for their future, specially now that college students are preparing to the future,

and preparing to enter the real life.

Spending and Budgeting money is very hard in today’s era specially that the price

of goods and even services is very high that some people have difficulties just to afford it,

it’s even more harder if you’re a student or specifically if you are a college student with an

average weekly allowance. College life is a different stage or period of every individuals or

students where they are engaged and experience a lot of changes and becoming

“independent” and having a responsibility on focusing on their studies and on how do they

manage their allowances, particularly that you are given 1000 pesos allowance per week

imagine what are the things you need to do in order to budget it. Having to step in college

world you’re also expecting a lot of different expenses, on buying books, school fee’s and

etc. We use University of Northern Philippines to serve as a setting for our study, to present

our insights regarding on the Spending Behavior of students in a specific place. By this kind

of research and by knowing the students spending behavior and spending habits, we can
acquire important perception into their financial knowledge, attitude and even challenges they

are facing.

According to the study conducted by the college students in Cabiao, Nueva Ecija (2019)

spending behavior is a learned pattern of conduct that is repeated on a regular basis. A good

spending habit is a crucial component of financial success. The elements impacting

respondents’ spending behavior in terms of family background, lifestyle, and attitude are

described in this study. This study uncovered what students consider to be their top priorities

when it comes to spending. The goal of this study was to identify the least and most desired

elements that influence respondents’ spending habits.

As stated on a research paper conducted by Senior High School, University of Saint

Louis, Tuguegarao City, Cagayan (2019) one of the challenges that college students

encounter is the difficulty to control the way they spend and in the Philippines, very minimal

research has been conducted about this. The level of the perceived problem on the spending is

still not absolutely figured out. Another studies conducted from San Isidro Campus, Nueva

Ecija Philippines, it stated that spending behavior is a learned pattern of conduct that is

repeated on a regular basis. A good spending habit is a crucial component of financial

success. The elements impacting respondents’ spending behavior in terms of family

background, lifestyle, and attitude are described in this study.

The young generation spends more money on online shopping, convenience, travel,

socializing, and online gaming than on homes and cars compared to previous generations.

This bad habit affects spending behaviour as the young generation tries to follow trends and

buy anything they want without thinking twice. Therefore, this problem needs to be

focused on so that the younger generation, especially students, do not develop bad habits.
 Spending behavior is generally a behavior that affects the way a person uses his or

harmony to fulfill his or her wants and needs without any use of command. Whether students

spend their own money can become a habit that can be a difficult thing to change, as behavior

has been conditioned by the environment.

Spending behavior is the behaviour of customers to spend available money, money

from debit card and credit card to satisfy their needs or wants. No customer has a stable and

fixed spending behaviour. People’s spending behaviour varies and differs according to

people’s race, religion, family background, ethnicity, and where they live. It is very

common for male students to gravitate towards masculine items such as expensive gadgets,

watches, and purses, while female students may be interested in decorative items such as

makeup or cosmetic products, as well as jewellery. There are many factors that influence

spending habits. These include understanding of financial management, parental income, and

peer influence. There are many researchers who have shared their ideas and thoughts about

customer spending behaviour. According to Kamis et al (2021), spending behaviour is the act

of distributing money in response to an activity, atmosphere or person to satisfy needs.

Spending behavior is commonly a behavior affecting the way a person use their

money in order to satisfy their wants and needs without any use of control. The way on how

students manage their own money may become a behavior that may be a difficult thing to

change, for behavior had been also an influenced by the people around them.

According to Obagbuwa and Kwenda (2020), a person is classified as a poor

spender if he or she has poor discipline in terms of constant spending behaviour. Researchers

Kamis et al (2021) said that when spending increases, demand also increases. Obagbuwa and

Kwenda (2020) found that students who have good financial management spend a larger
proportion of their money on purchasing durable goods. Durable goods can be items related

to education and housing.

There are a lot of factors that affect the spending behavior of college students this

includes; attitude, family background, lifestyle, financial knowledge, access to credit,

familiarity with debt and financial education, socialization agents and social identities,

academic performance, financial aid, and family income .

Without understanding your spending behavior, you are likely to keep doing

what you’ve been doing. That’s why it’s helpful to do a money personality assessment. Like

any personality assessment, it’s helpful because it lets you see the forest rather than just the

trees. It helps you set goals. And it brings new awareness to certain traps, challenges and

weaknesses you may have but don’t realize.

The spending behavior of college students not only Impacts their financial well-

being but also sets the foundation for their long-term financial health. As young adults move

from being teenagers to grownups, they are faced with newfound responsibilities and

financial decisions that can have lasting effects on their financial future.

College is a critical period in a person’s life where they are not only gaining

academic knowledge but also acquiring life skills, including financial literacy. The financial

decisions made during these years can shape habits and attitudes towards money that will

carry over into their professional and personal lives.

As they navigate the challenges of managing money, making purchasing

decisions, and allocating resources, college students are tasked with balancing various

expenses such as tuition, rent, groceries, transportation, and discretionary spending.

Balancing these expenses while managing a limited income can be challenging, especially for

those who are still learning how to budget effectively and prioritize their spending.
 Peer influence, social media trends, and marketing strategies can impact their

spending behavior, leading to impulsive purchases and potential financial strain. Developing

financial literacy, setting clear financial goals, and cultivating responsible money

management practices are essential skills that can empower college students to make sound

financial decisions both in the present and for their long-term financial well-being.

Educational institutions, financial literacy programs, and parental guidance play

a vital role in supporting college students in their financial journey. By providing resources,

guidance, and opportunities for practical financial learning, students can enhance their

financial awareness, avoid debt traps, and work towards achieving their financial objectives

during and after their college year. Understanding and managing spending behavior is

crucial for promoting financial responsibility and ensuring a secure financial future for

college students.

Improving the spending behavior of students is crucial for their financial well-

being and success. To achieve this, it is important to plan ahead and think carefully before

making any purchases. It is also essential to prioritize needs over wants, as this will help in

controlling expenses effectively. Entertainment expenses should be monitored and limited, as

they can quickly add up and impact overall spending habits.

In earlier study was conducted by researchers Kamis et al. (2021). It was

found that there is a positive correlation between financial management knowledge and

spending behaviour among university students (Chang et al., 2019).

Budgeting is another key aspect that students need to master. By creating a

realistic budget, they can keep track of their income and expenses, which will enable them to

make informed financial decisions. Cultivating good saving habits early on in life is also vital
for long-term financial stability. Saving a portion of one’s income regularly can help build a

solid financial foundation that will come in handy during emergencies or unexpected events.

Developing the saving habits of students can be an effective tool to encourage

the younger lot to live in a financially sustainable way. The more knowledge student shave

about their financial responsibility and status, the less likely they are to be in debt. Living in a

university is a change from childhood into adulthood that makes student life more

challenging and tougher because they need to make a decision for themselves.

Spending is a crucial factor in economic analysis as it helps maintain stable

economic growth. Many economists have studied the relationship between expected income

and consumption. People often choose to either save or spend their money, with some opting

to spend money from their future income before they actually receive it.

Based on the research of Kamis et al. (2021), it was found that financial

management knowledge is strongly correlated with university students’ spending behaviour.

In short, according to Chang et al. (2019), students are able to think wisely before making a

decision in spending money if the knowledge is available.

As spending is an individual’s routine, technically, it is also part the economic

cycle. For every purchase of goods or services, even in leisure activities and miscellaneous

expenses needs the use of money that leads it to habit . If students think before they spend,

they will spend wisely and if they did not, they are likely to waste money. Student spending

behavior can be improved if they plan their expenses ahead. They need to think to save to buy

“needs” item rather than spend on “wants” item. Entertainment seems to be the spending that

the student does at every high frequency, thus they need to find ways to control it.
 This research aim to dig or to focused to the spending behavior of college

students particularly in the University of Northern Philippines to discover and to learn about

how they use and spend their money on a wise way.

Statement of the problem

In general, this study aimed to determined the level of spending behavior or habits of

college students in the University of Northern Philippines. Particularly, this seek to answer

the following questions:

1. What is the demographic profile of the respondents in terms of:

A. Age

B. Sex

C. Course

D. Year level

E. Monthly allowance

F. Ethnicity

2. What is the level of spending behavior in terms of:

A. Personal needs

B. Academic purposes

C. Food

D. Transportation

3. Is there a significant relationship between the spending behavior of the college student

in University of Northern Philippines in terms of their demographic profile?

Significance of the study

 The study aims to provide valuable data which will be helpful in making the decisions

for college administrators, instructors, parents, students, and Future researchers. By

indicating financial awareness, students’ spending patterns may alter for the better. The

researchers hope to learn about the spending behavior of college students in terms of

spending habits.

Students. The findings of this study would benefit the students by giving awareness about

their current condition with regards to spending. Especially that college life was a different

world, were students are being ready on their future.

Teachers. The findings of this study would benefit the teachers by being aware of their

student’s level spending behavior or their knowledge on their finances, they will be able to

know what necessary skills they need to focus on in teaching their students.

Administrators of UNP. The findings of this study would then assist the administration in

determining what initiatives and policies to employ to address the improvement of students’

Spending Behavior.

Parents. The findings of this study will enable parents to determine how well their children

are in terms of spending and to arm themselves with the information they need, to help their

children become a responsible individuals in terms of spending their money.

Future researchers. For the Future researchers who want to do the study on the same issue

might use this work as a reference in conducting new research.

Scope and delimitation

This study entitled “ The Spending Behavior of College Students in the University of

Northern Philippines was conducted at the University of Northern Philippines where in some

students were used as a sample. This study will focus on determining the Spending Behavior
among college students. In this regard, the study will find out the demographic profile of the

respondents in terms of their age, sex, course, year level and their monthly allowance. At the

same time, the respondents asses spending behavior in terms of their personal needs,

academic purposes, food and also for their transportation.

Theoretical framework

This part of the research work present the related literatures and studies gathered from

different sources that is related and give insights to the spending behavior of college students

in University of Northern Philippines. Internet information and other published or

unpublished like these on were considered to give a better understanding of the study.

Spending behavior

Understanding the spending habits of students is a topic that has garnered interest

among researchers and scholars. Various theories have been proposed to explain the factors

that influence how students spend their money. These theories often draw from fields such as

economics, psychology, and sociology to provide insights into the behaviors and decision-
making processes related to student spending. There are different theories that are appropriate

in spending habits or behavior this are:

Life-cycle theory: According to this theory, it is potentially rational to overspend

while in college because students are dissaving in the life-cycle hypothesis.

Social learning theory: Spending habits are learned from parents and other key

personalities.

Theory of planned behavior: This theory measures money management intention

among undergraduate students. It includes attitudes toward spending, perceived ability to

spend, and normative influences regarding spending.

Spending Behavior of the young individuals and the way they manage their finances

would determine their financial status in the near future. Developing good financial habits at

an early stage will help them best to finish their education and eventually on how to be

financially stable. Managing one’s expenses prevents overspending, impulsive buying, and

paying too much for an item. Spending behavior is an acquired outline of behavior that is

done regularly. Good spending habit is an important tool to one’s financial success. Spending

in a smart way takes your money to go further and lets you achieve your money goals.

Creating a plan is one way to plan ahead your expenses and will help you prioritize your

spending based on your needs. The financial independence that senior high school students

experience may affect their lives in many ways, not only in their financial and economic

well-being, but also in terms of their relationship with their

Family, friends, and even the people they meet. It is important to teach them good financial

management skills for them to practice while they are in senior high school and that they can

use them when they graduate. Monitoring expenses helps them keep track with their budget.

An individual’s spending behavior is greatly influenced by his/her family. Family members

play a key role on what products to buy and consume. Moreover, the lifestyle of an individual

also affects his/her buying behavior. We often observe and follow the spending habits of our

parents and other members of the family. Lifestyle refers to the person’s way of living in the

society expressed through the things he/she buys or consumes. Moreover, attitude makes up

one’s interest towards spending. Knowing what to spend and why you spend the way you do

is a way to better understand your finances. Furthermore, this helps you keep track of your

budget and your expenses. This is a way of keeping your spending habits in the right track.

The purpose of this study was to look at the factors affecting the spending behavior of senior

high school students in terms of attitude, family background, lifestyle and financial

knowledge. Subsequently, this study is done to better understand how these factors

influenced the spending conduct of college students and their financial behavior.

Living in a university is a change from childhood into adulthood that makes student

life more challenging and tougher because they need to make a decision for themselves. In

the ages past, book stationeries, clothes, and other similar items for study were bought by the

students. In the present time, student’s needs have increased for sure, when laptops and others

gadgets are needed for assignments and for some, vehicles outside the basic necessities that a

student should own.

Spending habits have been studied in various contexts. One study found that scholars’

saving and spending habits play a role in their economic and social well-being. Another study

focused on fishermen in a specific village and found that their spending habits were often

driven by social status rather than actual needs. Many of them lacked financial knowledge

and did not have savings .

A different analysis examined spending behavior based on education level, gender,

and age. It aimed to understand the differences in spending habits and their impact on
financial patterns. Additionally, a study investigated the relationship between spending habits

before and during the Great Recession and financial distress. It found that those who reduced

their spending during the recession were less likely to experience financial distress, while

those who continued to spend more than their income were at a higher risk . Finally, a chapter

explored how tradesmen targeted students with marketing strategies and flexible payment

terms, leading to financial difficulties for some students.

In the survey that the researchers have conducted, data from 192 respondents were

collected. The respondents are enrolled under Business Administration Program in University

Putra Malaysia. The results showed that saving behavior, parental socialization, peer

influence and self-control are some of the factors that affects financial literacy. The factors

such as saving behavior, parental socialization and peer influence show a positive

relationship with financial literacy, however, self-control showed a negative relationship with

financial literacy. Each student should learn more about personal financial management,

provide effective ways or strategies to have a positive attitude towards money saving.

According to Keynes’s Psychological Law of Consumption theory. The foremost

objective of this theoretical paper was to determine whether there is any difference in

spending patterns among public and private university students and the association between

parental incomes and spending behavior among public and private university students, as

well as to examine the relationship between financial literacy and spending behavior among

public and private university students. In addition, this study seeks to determine how well

students comprehend the idea of needs and desires.

The association between students’ degree of financial literacy as well as their income

and their spending habits will next be examined using the data (Norimah Rambeli 14 Apr
2023).A great deal is put into the issue whether females spend their money more

compared to males and vise versa.

Sex and spending behavior

Gender or Sex plays a significant role in the spending behavior of students.

Research suggests that males and females are socialized differently, which can affect their

saving and spending behaviors . Early family experiences also contribute to financial

behavior, with paternal influence being a significant predictor of impulsive spending,

financial satisfaction, and credit card debt for college students . Additionally, demography,

specifically age and gender, shows significantly different buying behavior in different

countries, including online shopping attitudes of male and female college students . However,

a study found no statistically significant difference in the spending habits of male and female

university students . Furthermore, gender moderates the effect of childhood consumer

experiences, primary and secondary socialization agents’ influence, financial knowledge, and

financial skills on savings behavior, with males exhibiting higher levels of financial

knowledge, skills, and better savings behavior than females .

According to Bakshi (N.D.), women tend to be more subjective and intuitive, they

value emotional connect and relations, and they look at purchase as a long term decision.

Contrary to men who tend to gather information through heuristics in judgment and decision

making. They are more analytical and logical in terms of buying products, they based it on

immediate needs, quality and efficiency. According to a new poll, women are more

financially responsible than men as women are more likely to set a budget and stick to it

while men spend more money on impulse purchases (Bailey, 2019).

According to Stollak, M.J. et al. (student budgeting), women were far better planners

and budgeters than men. Similarly, as they matured, students became better budgeters and
planners. As a result, the college should begin looking into ways to better instill the younger

male population. This research was carried out in the United States. The study was carried

out in India, according to P. Jeevitha and R. Kanya Priya (2019). They conclude that students

save less than they spend, but their spending habits vary. The majority of students have

savings and understand the value of saving. Students frequently prefer saving bank accounts

as avenues for saving. Students set aside money for an emergency. According to a study of

student spending habits, they spend the most money on transportation and education.

Year level and spending behavior

The relationship between course and year level and the current trend and spending

behavior of students has been studied in several papers. One study found that year of study,

family financial level, gender, and school are significant factors in explaining spending habits

of students . Another study concluded that college students’ spending behavior is greatly

influenced by their family background, with parents playing a key role in shaping attitudes

about financial management . These findings suggest that factors such as family financial

level and parental influence are important in understanding the spending behavior of students.

However, there is no specific mention of the relationship between course and year level and

spending behavior in the abstracts provided.

Spending Behavior and Age is an important demographic factor that has a

significant influence on an individual’s spending behavior. As people grow, many

psychological changes take place. Consequently, spending behavior will change, as well.

Older adults, who perceive their time as more limited, place greater emphasis on emotionally

meaningful goals rather than knowledge-related goals (Mohammad & Drolet, 2019).

Ethnicity and spending behaviors

 One of the ways in which ethnicity influences spending behavior is through the

values and beliefs that people hold. For instance, people from Asian cultures tend to be more

collectivistic, meaning that they prioritize the needs of the group over the needs of the

individual. This can influence their purchasing decisions, as they are more likely to take the

opinions of family and friends into account when making a purchase. In contrast, people from

Western cultures tend to be more individualistic, meaning that they prioritize their own needs

and desires. As a result, they are more likely to make purchasing decisions based on their

own preferences rather than seeking the opinions of others.

Socio economic and spending behavior

Socio-economic status and income level have been found to impact spending behavior

in several ways. Low-socioeconomic-status (SES) consumers tend to be more price sensitive

than high-SES consumers, but various economic-related burdens hinder their ability to attend

to scarcity, resulting in a “ghetto tax” phenomenon. Additionally, low-SES consumers are

willing to pay higher prices and accept lower-value rewards to avoid commercial settings that

require intergroup interaction, driven by their heightened expectations of discrimination in

upscale settings. In terms of health behaviors, individuals with lower SES and income levels

have been found to have higher carbohydrate intake and lower fat intake. Furthermore, lower

SES has been associated with distinct patterns of reward processing, which may have adverse

implications for health outcomes and human capital .Meanwhile, consumers with the top

socio economic groups consider food ingredients carefully before purchasing.

According to the study in Turkey It was observed that as the socio ‐economic status

increased, the proportion of business owners increased as well. Consumers in lower status

groups spend the biggest portion of their income on food products. As the wages increase, the

level of spending on food product decreases proportionally and the ability to make savings
increases. The highest status consumers always check the price labels of the food products

with a high percentage (66.67 percent). More than half of consumers do not believe that

producers write all information and ingredients of the products on the packaging. A total of

77 percent of study participants stated that they were open to trying new food products.

Consumers within the top socio‐economic groups are most careful about food ingredients.

Originality/value In this study, the consumers themselves are classified according to their

socio‐economic status. These are the top, middle and bottom status as determined.

Consumers are clustered according to the general characteristics of the correspondence

analysis.

Monthly allowance and spending behavior

Daily allowances can vary depending on the individual’s socioeconomic status,

though some may think that they can manage their own money by not spending. Some

students only buy their necessities like food and water for the whole day at school to further

manage their daily allowance. Though some may ask how the expenses of the students can

vary depending on the amount of their weekly allowance.

According to Abawag, C.F.N et al. (2019), the majority of their respondents’

monthly allowance in the Philippines is spent on food. Spending is restricted, particularly for

personal needs and academic purposes. According to their research, gender, course, year

level, and ethnicity are determinants of differences in spending behavior.

According to Jessica l. Knudsen, we gain good money management skills as we go

through life. It will be because of our successful and failed experiences in life. Giving

students allowance serves as the key for them to realize the true value and importance of

money. Also, budgeting is what they will learn as they handle their own allowances.
 According to Cussen, (2019). Most of the Millennials or the generation Y wants to

have the same clothes, bags, shoes, cars and technological gadgets as their friends. Moreover,

studies show that young people decline, being financially stable means paying all bills. Older

adults appear to be interested in issuing new technologies. As they encounter these evolving

modern technologies, they may be vulnerable to fraudulent marketing practices. However,

studies show that older consumers tend to have more excellent persuasion knowledge than

younger adults from their experience. These imply that they are well-informed of the tactics

and methods of resisting persuasion attempts. Spending Behavior and Sex. The process of

decision making is one of the most complex mechanisms of human thinking. Gender is the

primary factor out of all the other factors that affect consumer purchasing behavior. When

gender dillers, the perception of consuming the product is different as well. Men and women

tend to have different choices while shopping because of the difference in their upbringing

and socialization. Additionally, they have stated that women are more internally focused

whereas men ought to be externally focused. Review of Related Studies According to

Research Publish, Abawag, et al,(2019). The paper stated that the spending behavior of the

students is not solely affected by their course as there are other factors that contribute to the

differences of the way they spend which includes the demographic profiles of the students

Abawag, etal. 2019.

As stated by Ordinario (2019), the household poverty status of the Philippines,

according to the latest data of Philippine Statistics Authority has worsened in 17 provinces

and cities but it also has caused the overall rate of family income and expenditure to improve.

The average student’s expenditure is higher than their income. Furthermore, the highest

proportion of student revenue was spent on food and then by rent and entertainments.

It has been made issue of whether financial education correlates with

behavior change as per previous studies. Several researchers have agreed that financial
education have brought upon a favorable outcome based on a conducted study from

distinct target population like that of employees, students and financial counselling

clients.

Based on their study, Laursen and Veenstra (2021) claim that there is a high

correlation between peer influence and university students’ shopping behaviour. In agreement

with Chang et al. (2019), this is due to the fact that the mental state and maturity level of

university students is still low as they have just entered puberty. Researchers Mohamad et al.

(2016) mention that there has been shown to be a strong relationship between peer influence

and student spending behaviour (Laursen & Veenstra 2021).

According to (Abawag, et al., 2019) College students face a lot of difficulty in

maintaining and spending according to the budget maintained by them. A very little research

has been conducted on this subject as a result of which the problem is still not identified. This

study is conducted to observe the behavior of the university of Saint Louis Tuguegarao.

Stratified random sampling was used to determine the 234 respondents who are taking

Management Accounting, Financial Management and Marketing Management course.

It can be concluded that sex, course, year level and ethnicity are determinants of

the difference on spending behavior of management students while socioeconomic status was

found insignificant when comparing the said behavior. This research shows what are the daily

allowances of students from different countries. The paper tells what the students are more

likely to spend on including transportation, clothing, food, parties, etc. The main focus of the

study was to determine the spending behavior of management students as compared to other

field students.

A study conducted by Abwag (2019) entitled Spending Behavior of

Management Students stated that one of the challenges that college students encounter is the
difficulty to control the way they spend and in the Philippines, very minimal research has

been conducted about this. The level of the perceived problem on the spending is still not

absolutely figured out. Thus, the research aimed to evaluate the aforementioned dilemma.

The said study focused on determining the spending behavior of management students of the

University of Saint Louis Tuguegarao using Quantitative survey research design. Stratified

random sampling was used to determine the 234 respondents who are taking Management

Accounting, Financial Management and Marketing Management course. A researcher-made

questionnaire was used for data collection. Respondents were found to spend tightly in terms

of personal needs and academic purposes while loose in terms of food and transportation.

Meanwhile, Independent samples test and Analysis of Variance were used to test the

difference in spending behavior when grouped according to profile variables. It can be

concluded that sex, course, year level, and ethnicity are determinants.

Of the difference in the spending behavior of management students while socioeconomic

status was found insignificant when comparing the said behavior.

The study of Abwag (2019) is very identical to this study, utilizing a survey to gather

data and the stratified random sampling method. It found that sex, course, year level, and

ethnicity are factors that affect the difference in spending behaviors among management

students.

According to (Stollak, et al.) The research paper studies the manner in which college

students manage their money on various factors like age, personality traits and knowledge.

Some variables did not show differences in the accumulation of debt but perceptions varied

among groups. Demographic variables, GPA and number of hours worked did not play role

in the amount of debt acquired but students with a higher GPA or those who worked more

were more worried about their financial status. In this study, they have considered the
printing budget to analyze the differences in spending behavior. They examined significant

differences between males and females and found that females had a more responsible

attitude towards budgeting their monthly expenses. There were also significant differences in

spending according to various age groups (freshmen, juniors, seniors, sophomores). The

paper focused on a relatively homogenous population at one school. There can be a

possibility of students having dissimilar outcomes at a more diverse campus

Spending behaviour is the behaviour of customers to spend available money, money

from debit card and credit card to satisfy their needs or wants. No customer has a stable and

fixed spending behaviour. People’s spending behaviour varies and differs according to

people’s race, religion, family background, ethnicity, and where they live. It is very

common for male students to gravitate towards masculine items such as expensive gadgets,

watches, and purses, while female students may be interested in decorative items such as

makeup or cosmetic products, as well as jewellery. There are many factors that influence

spending habits. These include understanding of financial management, parental income, and

peer influence. There are many researchers who have shared their ideas and thoughts about

customer spending behaviour. According to Kamis et al (2021), spending behaviour is the act

of distributing money in response to an activity, atmosphere or person to satisfy needs.

According to Obagbuwa and Kwenda (2020), a person is classified as a poor spender

if he or she has poor discipline in terms of constant spending behaviour. Researchers Kamis

et al (2021) said that when spending increases, demand also increases.

Obagbuwa and Kwenda (2020) found that students who have good financial

management spend a larger proportion of their money on purchasing durable goods. Durable

goods can be items related to education and housing. According to Obagbuwa and Kwenda

(2020), this is more for the purpose of investment. There are different types of spending
habits such as impulse buying, shopping as a basic habit, spending very frequently on small

items, and forgetting to save. One of the most important indicators of a person’s

financial satisfaction and spending behaviour is financial literacy. Based on the research of

Kamis et al. (2021), it was found that financial management knowledge is strongly correlated

with university students’ spending behaviour. In short, according to Chang et al. (2019),

students are able to think wisely before making a decision in spending money if the

knowledge is available. At the end of 2019, the Malaysian Department of Insolvency

reported 303,415 cases of bankruptcy. Empirical research in various Asian countries has

found that increased financial management knowledge has a negative impact on spending

behaviour.

An earlier study was conducted by researchers Kamis et al. (2021). It was found that

there is a positive correlation between financial management knowledge and spending

behaviour among university students (Chang et al., 2019). It led to an increase in financial

awareness, which is a means to achieve personal responsibility and improve the quality

of life. As a result, students who have a better understanding of the concept of financial

management are able to make better financial decisions. This can be seen in their ability to

manage their personal finances and properly plan their investments. Relationship between

parental income and spending behaviour.

Because university graduates do not yet work themselves to earn their own income,

they still rely on their parents’ income. According to Chang et al. (2019), most university

students aged 18 to 25 who live far away from their family tend to study full-time. Therefore,

in this case, parents’ income plays a big role in how students spend their money. And the

higher the parents’ income, the higher the students’ spending. According to the research

conducted, there is a close relationship between parents’ income and students’ spending

behaviour. Students whose parents have higher incomes spend more and save less. This is
due to the fact that spending money (provided by parents) is an indicator of children’s

purchasing power. In this study, a negative relationship was found between these two

factors. Children’s spending tends to decrease when parents’ income increases. The majority

of students still rely on their parents’ financial support during their university years. This is

because their behaviour and mindset have been conditioned since childhood, leading

children to prefer saving more and spending less even as their parents’ wealth increases. As a

result, the parents’ income and their spending habits develop in opposite directions.

Relationship between peer influence and spending behaviour According to our research, peer

influence is one of the elements that affect students’ spending behaviour. As a child matures

into a young adult, certain patterns of purchasing intentions and behaviors emerge and

change. This is because when people shop with friends, they seek expertise, adapt to others’

tastes, and use each other’s values to guide their purchasing decisions.

Based on their study, Laursen and Veenstra (2021) claim that there is a high correlation

between peer influence and university students’ shopping behaviour. In agreement with

Chang et al. (2019), this is due to the fact that the mental state and maturity level of

university students is still low as they have just entered puberty. Researchers Mohamad et al.

(2019) mention that there has been shown to be a strong relationship between peer influence

and student spending behaviour (Laursen & Veenstra, 2021). 3. Methodology The target

population of the study was students from public and private universities. The

respondents in this survey are university students. Due to the ease with which responses

could be obtained, this study focused on universities in Malaysia. This survey is conducted

entirely online. To complete the sample, stratified random sampling divides the total

population into smaller groups. In this study, data is collected using a stratified sampling

strategy based on gender, age, education level, type of institution, and parents’ income.
 The reason for this is that it facilitates data collection and reduces the possibility of

a low response rate. In this survey, researchers mainly used measurement scales such as the

Likert-Five scale. Using a questionnaire is recommended because this study has a large

sample size. By using an online survey, the study can be completed faster and more

successfully. The questionnaire will be shared on Instagram, Facebook, and WhatsApp

groups and distributed to all students on campus who meet the requirements. The core data

for this study was collected by sending questionnaires to the intended respondents. In

addition, the questionnaire is divided into three (3) sections: Demographic Information ii.

Dependent Variable (Spending Behaviour) iii. Independent Variable (Knowledge of financial

management, parental income and peer influence.

A study by (Yanto, Ismail, Kiswanto, Rahim, & Baroroh, 2021)examined the

effect of peer networks on financial habits of students. Peer pressure and social norms are a

significant factor and has a high impact on students’ spending decisions. This research

demonstrates the necessity for interventions. That promote aggressive economic behavior

within peer networks to curb impulsive spending among college students.

A study by (Ashok, Satnalika, & Mishra, 2023)has results that demonstrate that

students have a low level of pecuniary knowledge. Consequently, it is important for

students to have knowledge about various products like credit cards, UPI, insurance, and

possibly some others that are used by them.

Another study (Singh, Gupta, Jain, Kabra, & Gupta, 2020)revealed that a

portion of students also tends to invest their savings in the pecuniary markets. One

really easy but powerful method for students can reduce their spending is by analyzing

their actions. They Mukt Shabd Journal Volume can accomplish this by creating a

behaviour chart. This is a method of keeping constant record of the students’ behavior
and providing reinforcement for that same behavior. According to these research’ findings

in overall, college students tend to exhibit poor pecuniary behaviors and lack pecuniary

literacy and skills, but pecuniary education can have a positive impact on their pecuniary

behaviors and attitudes.

The study is anchored on Senior High School, University of Saint Louis, Tuguegarao

City, Cagayan, (2019). One of the challenges that college students encounter is the difficulty

to control the way they spend and in the Philippines, very minimal research has been

conducted about this. The level of the perceived problem on the spending is still not

absolutely figured out. Therefore, this study focused in determining the spending behavior of

management students of the University of Saint Louis Tuguegarao using Quantitative survey

research design. Stratified random sampling was used to determine the 234 respondents who

are taking Management Accounting, Financial Management and Marketing Management

course.

A researcher made questionnaire was used for data collection. Respondents were

found to spend tightly in terms of personal needs and academic purposes and loose in terms

of food and transportation. Meanwhile, Independent samples test and Analysis of Variance

were used to test the difference on spending behavior when grouped according to profile

variables. It can be concluded that sex, course, year level and ethnicity are determinants of

the difference on spending behavior of management students while socioeconomic status was

found insignificant when comparing the said behavior.

Many groups of students spent their money differently, especially among

gender. It looks at how students manage their education’s money that they get, whether

from scholarship, a loan or by a parent. According to previous research, females tended to

spend more money on clothes, while men spent more money on entertainment and eating out.
According to (Jalil et al.2020), women are more likely to having a wise budget than men.

However, women more frequently accumulate a higher amount of credit card debt and total

debt. Another research state that early exposure to financial management is essential

for the younger generation because they have various obligations such as paying back the

loans, they used for their university education even before they graduated. All students,

not just students receiving financial aid like business students, need to establish good

spending habits. The educational background seems to have an impact on university student

spending habits. They find that non-business majors are more likely to be less

knowledgeable about personal finance than business majors, particularly banking and

accounting.

This theory is supported by the study of NK Ekambareswarar, D Boomika, and R

Dinesh Kumar et al.(2021). International Journal of Business Forecasting and Marketing

Intelligence. In this modern era, impulsive buying behaviour has drastically increased

through different marketing strategies and business ideas by marketers. This paper explores

the association between gender and impulsive buying among university postgraduate students

in Bengaluru City. The purpose of this study is to determine gender differences among PG

students in Bengaluru City. This study was conducted using primary data collected from 88

respondents, out of which 44 were males and 44 were females. The collected data were

analyzed using SPSS software. Percentage analysis and Chi-square test were conducted to

analyze the data. The comprehensive study shows that female PG students tend to be more

impulsive than male PG students. In some cases, male students are more impulsive than

female students. Factors like lack of self-control, marketing and promotion tactics, excess

pocket money, credit card availability, and brand image significantly influence university
postgraduate students’ impulsive buying behaviors. External factors are considered to be the

primary factors influencing impulsive buying among university PG students.

According to Sorooshian Shahryar, Seng Teck Tan ,Asian Social Science 10 (2),

64-69, 2019 Recently, interest in exploring professional financial issues mainly money

management was shown to be highly increased due to the societal awareness of its benefits.

The skill of money management is a major tool in exercising control over them to obtain

quality life as working adults. Stratified random sampling was used to examine the spending

patterns of student population at one of Malaysia universities. Due to the habit of student

expenditures on campus which was shown to influence the way money is managed through

their lives. Taking a look at literatures from researchers outside Malaysia, it can be seen that

financial literacy among students is required to restrain future problems that may arise from

lack of knowledge on individual financial management. This study emphasizes the need on

financial literacy awareness among the students looking into their background, financial

awareness, attitude and family. Data analysis show that majority of the students do not put to

practice correct skill in money management.

A study conducted by Binobo et al. (2019) namely ‘Financial Literacy of Senior

High School Students in Bacolod City’ collected data through questionnaires and found out

that a total of 140 out of 9636 from different private schools of Bacolod City see no

difference in the level of awareness regarding their personal demographic profile. They also

concluded that as early as a child can be, he or she must be exposed in the area of financial

management. This is because people who are able to learn their financial habits during their

teenage years will use this knowledge as they grow old and encounter adulthood stage. If

today’s youth will understand and practice financial literacy, they will be able to manage and

budget their money in the future wisely. Also, higher education should introduce programs
pertaining to developing the skills of the students in the field of budgeting so that they will be

able to comprehend aspects of financial stability through further training.

According to the study conducted by Waggener Edstrom Communications LTD.

(WECL,2022), Filipinos are among the consumers worldwide who often try new products

when grocery shopping. There are about 68% of Filipino respondents said that they bought a

new product during their last grocery trip, 78% prefer to buy new products only while 77%

like it when manufacturers offer new product options, as a brand name assures quality and

credibility of the product. Spending Habits of students decrease when inflation occurs as it is

related to what is happening with the world today. While consumer Spending Habits

increases when the price of goods and services decreases.

In the research ;Trends in Spending and Money Management Practices among

Students of Kerala R Manju International Journal 39, 2019, the study examines the spending

behaviour of school/college students aged between 16 and 22. A survey conducted among

240 students comprising of 120 males and 120 females belonging to higher secondary and

degree studies from schools and colleges of Kerala. Participants completed a survey

regarding the likelihood to follow a budget to limit spending, savings and investments and

management of personal finance. The study reveals that the students spend most of their

money on pleasure trips, fast food and digital life than to books, savings etc. Majority depend

their parents for meeting their day to day ends. Only half of them exercise budgeting; but

more than ninety percentages limit the expenditure within their income. Female students are

more savings savvy compared to male students.

According to Money Habitudes (2020), it is often contextual. You spend the same

way with the same set of conditions. Because it’s a habit, it may be so natural and involuntary

that you don’t even realize it. The examples of it are you always spend a lot of money right
after you get paid, that might mean taking your family out to dinner every payday; You

always give to charity at the end of the year; You have a habit of spending on souvenir T-

shirt son vacation, and You always wait until the last minute to buy a plane ticket.

The limitless desires for insignificant materials inhabited our minds, encouraging

individuals to lose interest in budgeting and saving money which often resulted in poor

spending habits, serving one common financial challenge defined as spending beyond one’s

means (Kerr, 2022).

No matter where and how we shop, spending money on random stuff is always a

temptation (Cruze,2022), as one of the crucial challenges for Senior High School students is

how to control their expenses, specifically those who have budgeted allowance.

Moreover, irregular expenditure has a negative impact on budgeting and prohibit

students from saving (Nair, 2022). For instance, collecting merchandise of their K-Pop biases

or purchasing irrelevant items from online shopping as they serve as the potential market for

online sellers, affirmed by Kuswanto et al. (2019) in an article called Analysis of students’

online shopping behavior. If this tendency persists and isn’t addressed, students with limited

budgets will undoubtedly be impacted.

Not only that overspending’s a product of student’s wants, but also the factors

behind it.Ergo, developing saving habits serves as a vital strategy for motivating the younger

generation to live in a financially sustainable way (Singh et al., 2020). That’s why students

should be aware of the benefits of budgeting, often referred to as the management of financial

expenses within an assigned budget (Singh, et al., 2020). Because of that, students should

keep an eye on their expenses, observe their purchasing behavior towards food and other

unwanted stuff, not overpay for transportation, and utilize student discounts (Higginbotham,
2021). Budgeting and saving are two important financial literacy skills that even the best

students may find difficult (Jones, 2019), particularly senior high students.

In the research entitled Influential factors contributing to college student spending

habits and credit card debt Kristi Leclerc Perspectives 4 (1), 20, 2020) it said here that it

explores how access to credit, familiarity with debt and financial education, socialization

agents and social identities, academic performance, and financial aid and family income

influence college student spending habits and credit card debt. Being in credit card debt is

common for many college students, but exploring the specific factors that contribute may

help prevent future generations of students from participating in unhealthy spending habits

and accumulating credit card debt. After a close comparison of eleven studies, I was able to

conclude that easy access to credit cards makes students susceptible to accumulating debt.

Students who perform poorly academically, are female, minorities, and who are older tend to

be more likely to be in debt than other students.

Family income and the amount of financial aid a student receives also affects their

financial situation, as does the student’s own level of financial education, and financial

socialization from parents. Although future research is needed on this topic, it is important to

note that students’ social environment has an effect on their financial health.

Consumer theory studies how people decide how much money to spend

depending on their tastes and available budgets. According to their general funds and the

prices of goods and services, people make decisions according to consumer theory, a branch

of microeconomics (Liberto, 2023). According to the Family Financial Socialization

Theory (Gudmunson & Danes, 2019), families are one environment where financial

socialization occurs, with parents playing an important role. Family financial socialization
theory developed gradually over time, acquiring additional iterations as it did so (see, for

instance, Beutler and Dickson, 2019).

Gudmunson and Danes’ (2020) seminal paper, which provides family financial

socialization as a theory directly, has improved and united family financial socialization

research. What parents teach (and do not teach) their children about money will affect those

children’s financial wellness both now and in the future (Gudmunson and Danes, 2011Family

financial socialization that takes place during childhood and adolescence (from birth to

age 17) is critical in building the framework for and is directly connected with, economic

outcomes (Serido et al., 2019), even though it continues after the age of 18 (Serido et al.,

2019).

In the theory of Social Cognitive Theory (Bandura, 2019), a person’s behavior is

influenced by how they observe other people and how their behavior and cognitive

processes interact. Socialization, the process through which people learn about values and

norms, may be dramatically different for individuals if they do not discuss or observe

saving activities in their families of origin or by peers (Gutter et al., 2020).

9 People learn to manage their money in various ways early, frequently leading to poor

habits. Financial issues start to affect young adults often. This issue arises because kids lack

financial literacy and are forced to make challenging financial decisions at a young age,

particularly at the beginning of their careers. They ultimately made the wrong choice,

which had a terrible impact on their life. Thus, effective measures for addressing these issues

and assisting the young population in developing financial literacy must be created by

legislators.

The variety and ongoing advancements in the financial markets and financial

services industry are to blame for these financial problems (Mandell & Klein, 2019). To
achieve economic well-being, people must be financially educated to recognize and

distinguish between various providers, products, and services (Wagland & Taylor, 2019).

This study anchored on Jurnal Ilmiah Akuntansi Universitas Pamulang (2021),

Nowadays, uncontrollable spending habit towards Malaysian young generations are

becoming progressively. They have a tendency to have less value of money compared to the

elder generations in spending their money. Since the cost of living in Malaysia has improved

remarkably, the young generations enjoyed spending their money heavenly, therefore

Malaysia faced changes in lifestyle and spending trend. This study proposes to investigate the

relationship between money attitude and socio-demographic as determinants of college

students’ spending behaviours. As such, the correlation between money attitude factors

(power-prestige, distrust, retention-time and anxiety) and spending behaviours among

Malaysian college students is a topic worthy of further exploration. At the same time, this

study also attempts to explore whether college students’ spending behaviours are affected by

their socio-demographic factors such as gender, age. The sample of this study consists of 176

students from three different universities in the Shah Alam area ie University Selangor

(UNISEL), University Management Science (MSU) and Universiti Teknologi Malaysia

(UiTM). The regression analysis showed that there were only two factors of money attitude

(power-prestige, and anxiety) that had a significant effect on spending behaviour among these

universities’ students. However, from the analysis, it can be revealed that none of the socio-

demographic factors had a significance (more than 0.05) towards the spending behaviour of

the students. Thus, age (positive result) is the most influenced factor of the students’ spending

behaviour. Consequently, several suggestions have been put forward and hoped that it will

assist students in managing their fund effectively.

Youths nowadays do not have enough of self-control on financial management that

leads to overspending. Besides, overspending will occur many problems such as involving in
debt, bankruptcy and lowering the standard Of livings. The Finance Minister in Malaysia said

that money problems may also have an impact on social issues such as theft, engaging in

gangsterism, selling drugs and even Suicide (Kurukullam, 2019).

Similar evidence where the researcher found out that young individuals begin to learn

about finance since childhood will have the best possible chance to be free from debts in

adulthood (Bona, 2019). Therefore, educating one with financial knowledge is important

despite their ages, it is suggested that children should be brought up with basic financial

related education until they reach university age in-order to ensure enough knowledge has

been spread wisely before entering adulthood. This may help to decrease the number of

bankruptcy cases of the country.

All humans have different behavior in terms of spending their hard-earned money it

may be good or bad spending depending on the person. The spending behavior of a person

can be developed in many ways, and sometimes people are being influenced by external

factors. Having good spending behavior is essential, especially to students, to learn its value.

According to the research of Bona (2019), the spending behavior of students is influenced by

their families. Family plays a significant role in influencing their members on what to buy

and consume. Most of the students follow the spending behaviors of their parents. This is

clearly stated that an individual’s spending habits and behaviors came from their family’s

spending behavior as well.

The lifestyle of a person’s family and a person’s lifestyle in buying affect his/her

behavior in spending. According to the research of Tew (2019), today’s student spending

behavior emerged as an essential concern in society today. Socioeconomic factors influenced

the spending behavior of students. Many students are not cautious in managing money, which

leads to financial problems.

 Students are easily affected by different factors. It ensures that people don’t spend

more than they earn. Budgeting is a simple, effective way for people with various incomes

and expenses to keep their finances in order. Budgeting is vital for students because it allows

them to plan for unforeseen expenses and school cost. According to the research of J.T.C.

Bona (2019) Lifestyle and financial knowledge play a role in shaping spending.

Personal finance knowledge and lifestyle have a big impact on how much people

spend. A person’s spending habits are greatly influenced by their lifestyle choices, including

whether they like to live frugally or in luxury.

It is important to examine spending behaviors of emerging adults given the

financial struggles they are currently facing (e.g., majority moving back in with parents; Fry

et al., 2020).

Further, it is important to examine the spending behaviors of college students

specifically given that a major contributor to emerging adults’ lack of financial wellbeing is

mounting student loan debt, rates of which are at an all-time high (Cilluffo, 2019).

Parents, peers, employment, and media are socialization agents that influence the

financial attitudes, beliefs, and behaviors of individuals as they mature in society (Lanz et al.,

2020).

There are likely other predictors of spending behaviors beyond these socialization

agents that should be considered in future models, such as financial self-efficacy (a potential

positive association; Palmer et al.,2021) and financial knowledge overconfidence (a potential

negative association) (Lee & Hanna, 2022).

Finally, to more comprehensively capture the nuances of the influences of these

socialization agents, researchers should examine how various interactions with peers (e.g.,

shopping together, discussing budgeting, loaning money), differing forms of media usage

(e.g., online shopping, internet financial tutorials, following celebrities on social media),
employment activities (e.g., working with HR on insurance and retirement, earning their own

money), and parent interactions (e.g., direct teaching, role modeling, hands-on experiences)

influence spending differently.

Most students left their parents or to say their “comfort zone” to start a new

journey in college or university. At this time, students are required to manage their limited

pocket money given by their parents more cautiously. The challenge they are about to face is

the changes in consumption habits as well as the ability to manage their spending. According

to StudyMalaysia.com (2020), the monthly living cost of a student in Malaysia is around

RM2,000. Within this RM2,000, accommodation and food have accounted for a large

proportion (of RM300 to RM600; and RM600 to RM900 respectively), and the remaining

will be spent on utilities, transportation, required course materials, and entertainment. But in

reality, there are some common money management mistakes made by students which might

cause them to overspend: poor budgeting skills, dependent on credit cards, do not know how

to distinguish between needs and wants, and lack of financial self-control. Case in point, most

students tend to spend more on entertainment, an idolater, for example, tends to spend

RM757 for a concert ticket without regret (Hassan, n.d.). In a research study conducted in

universities across the UK, there are 52% of students are feeling financial stress. The worst is,

there are 39% of students among the universities did not involve in financial planning at all

(“Finance Digest”, n.d.).

. Spending behavior might be vary based on an individual’s condition of life; at the

same time, it is important to create a budgeting plan to manage where does the money goes in

a week, or even a day. Without proper money management, many students tend to give up

this journey halfway because of financial stress (University of Nebraska- Lincoln, n.d.). In

addition, if a student lack of proper financial management, he or she tends to do a part-time

job for extra pocket money. Hence, it shows the significance of possessing proper financial
management skills, especially to a student in order to avoid overspending their monthly

budget.

Consumer spending is unpredictable, as their spending behavior will change

based on their expectations and preferences, and the expectation here indicates the long-term

average income” (Kagan, 2020). This theory is the so-called permanent income hypothesis, it

was drawn up by an American economist, Milton Friedman in 1957. It is the opposite of the

Keynesian law of Consumption function, where Keynes believes that consumer expenditure

will solely depend on the income after tax, at least in the short-term. On the flip Side, Milton

observes the changes in spending behavior based on consumer’s income and permanent

income. Also, he believes that an individual will prefer consumption smoothing rather than

keep changing their spending behavior after receiving additional income. For instance, an

individual will not increase his or her spending merely due to a one-off bonus payment given

by the boss, instead, he or she might choose to save the bonus received because of the

expectation for future income.

Conceptual framework

The study revolved around the module shown below:

Demographic Profile

 Sex
 Course Spending Behavior
 Year level  Personal Needs
 Ethnicity  Academic purposes
 Socio economic status  Food
 Monthly allowance  Transportation
 Demographic profile of
the student

Independent Variables Dependent Variables

Figure 1: Above shows the conceptual framework for the study. It can be observed from the

paradigm of this study that there is a significant relationship between the Spending Behavior

and the Demographic profile in terms of Sex, Course, Year level, Ethnicity, Socioeconomic

Status, and Monthly allowance.

Operational Definitions of Terms

The following term are defined operationally to provide clearer reference of the

content of the study:

Spending Behavior. It refers to the patterns and behaviors individuals exhibit when it

comes to their expenditures of money. It involves the wag people choose to allocate their

financial resources and make purchasing decision.

Personal Needs – Personal needs refer to the requirements or desires that are specific

to an individual’s well-being, comfort, and overall satisfaction. These needs are unique to

each person and can vary based on factors such as cultural background, lifestyle, and personal

preferences.

Academic purposes – means basic research with publication and dissemination to the

public of the knowledge generated by the use of the MATERIAL.

Food – substance consisting essentially of protein, carbohydrate, fat, and other

nutrients used in the body of an organism to sustain growth and vital processes and to furnish

energy.

Transportation – the action of transporting someone or something or the process of

being transported. “the era of global mass transportation”

Demographic profile. The characteristics of a population that have been categorized

by distinct criteria such as age, gender and income as a means to study the attributes of a

particular group.

Sex - to biological differences between males and females.

 Course – a set of classes or a plan of study on a particular subject, usually leading to

an exam or qualification.

Year level – in terms of education refers to the specific academic year or grade level

that a student is currently in. It indicates the progression of a student’s education from one

year to the next.

Ethnicity – refers to the identification of a group based on a perceived cultural

distinctiveness that makes the group into a “people.”

Socio economic status – is an economic and sociological combined total measure of

a person’s work experience and of an individual’s or family’s access to economic resources

and social position in relation to others.

Monthly allowance – an amount of money that is given to someone regularly or for

a specific purpose. A monthly allowance for household expenses.

Demographic profile of the students- Include the range of students’ characteristics

that compromise the comparisons between traditional and distance education. Differences in

student characteristics include age, full/part-time status, financial support, learning goals, and

so forth.

Assumption

The following were assumed in the conduct of the study:

1. The respondents provided honest, objective, and reliable answers to the questionnaire.

2. The Demographic profile is measurable.

3. The data gathering instrument is valid and reliable.

Hypothesis

The study was anchored the following hypothesis:

1. There is no significant relationship between the spending behavior of the college

student in University of Northern Philippines in terms of their demographic profile.

Methodology

This portion of the study present the research design, population and sample, data

gathering instruments, data gathering procedure and statistical treatment of data.

Research Design. The study made use of a written interview. The data that we

gathered describe the demographic profile of the respondents. These data were correlated

with the spending behavior of college students in University of Northern Philippines. A

questionnaire were used to gather other pertinent data deemed necessary for the study.

Population and Sample. The population and sample of this studies compressed all

the students enrolled in different course in the university. All undergraduate student in

University of Northern Philippines were considered in the study. Random sampling of the

students of the university was used to determine the number of students respondents. Random

sampling is a part of the sampling technique in which each sample has an equal probability of

being chosen. A sample chosen randomly is meant to be an unbiased representation of the

total population. If for some reasons, the sample does not represent the population, the

variation is called a sampling error. Random sampling is one of the simplest forms of

collecting data from the total population. Under random sampling, each member of the subset

carries an equal opportunity of being chosen as a part of the sampling process . The

population of the study composed of (32) students of the CTE, (10) students of Ctech, total of

(44) students of the CAS, (83) students of the CBAA, total of (16) students of Carch, total of

(20) students of CCIT, total of (26) students of CCJE, total of (31 ) students of COE, (11)

students of CFAD, (28) students of CHS ,total of (35) students of CHTM, total of (22)

students of CN, (12) students of the CPAD, and (15) students of CSW a total of 389
respondents. To determine the registered students in different filled or college, we’ve

requested and use the record of the registrar.

Formula and Solution:

Determining Sample Size ( Using Yamahe’s Formula)

Margin of error: if e = 0.05

n= N ÷ 1+Ne^2

= 14169 ÷ 1+14169*(0.05)^2

= 14169 ÷ 36.4225

Table 1 presents the distribution of respondents of the study

Table 1

Distribution of Respondents of the Study

College Students (N) n

CTE 1151 32
Ctech 356 10
CAS 1591 44
CBAA 3034 83
Carch 567 16
CCIT 885 24
CCJE 945 26
COE 1112 31
CFAD 400 11
CHS 1023 28
CHTM 1273 35
CN 817 22
CPAD 451 12
CSW 564 15
14169 389

Data Gathering Instrument. The data gathering instruments consisted of three (3)

parts namely:
 Part I gathered data on the demographic profile of the students in terms of age, sex,

course, year level, ethnicity, socioeconomic status, and their monthly allowance.

Part II this part is intended to collect information about the students spending

behavior in each courses in line with the sub. variables personal needs, academic purposes,

food, and transportation.

Part III this section dealt with measuring the level of spending behavior in terms of

their personal needs, academic purposes, food, and transportation. The researchers establish

this part of the questionnaire.

To determine the content validity of the questionnaire, the following will be used:

Numerical Value Statistical Range Descriptive Rating

5 4.21-5.00 Very High
4 3.41-4.20 High
3 2.61-3.40 Moderate
2 1.81-2.60 Low
1 1.00-1.80 Very Low

In analyzing and interpreting the data on the level of students spending behavior in

different courses, the following norms will be used in the study:

Scale Statistical Range Item Descriptive Rating Overall Descriptive Rating

5 4.21-5.00 Always (A) Very High (VH)
4 3.41-4.20 Often (O) High (H)
3 2.61-3.40 Sometimes (S) Moderate (M)
2 1.81-2.60 Rarely (R) Low (L)
1 1.00-1.80 Never (N) Very Low (VL)
 Data Gathering Procedure: In the conduct of this study, the researchers sought

assistance from the registrar to serve the list of the officially enrolled undergrad students of

the university. The questionnaire administered and retrieved personally by the researchers by

going to the different colleges in the University of Northern Philippines.

Statistical Treatment of Data. The data gathered were treated using the following

statistical tools.

1. Frequency and percentage to describe the demographic profile of the

respondents in terms of age, course, year level, ethnicity, socioeconomic

status, and monthly allowance of the students.

2. Mean to determine the level of spending behavior of the college students in

University of Northern Philippines.

3. Simple correlation analysis to determine the significant relationship

between the demographic profile and the spending behavior of the students.
Questionnaire

1.) Demographic profile

Please answer the following questions by checking (✓) the relevant block or writing

down you answer in the space provided.

Name (optional):_____________

Sex: [] Male [] Female

Age:[] 40-49 and above

[] 30-39
[] 19-29
[] 18 and below

Year:[] 4th year

[] 3rd year
[] 2nd year
[] 1st year

Course:[] Educ.
[] BSBA
[] Midwifery
[] Nursing
[] Engineering
Others:__________

Monthly allowance:
[] Php: 20,000.00 and above
[] Php: 15,000.00 – Php: 20,000.00
[] Php:10,000.00 – Php: 15,000.00
[] Php:10,000.00 and below

Belong to an ethnic group

[] Yes
[] No
If yes please specify:___________

Student Category
[] Full time student
[]Working student
2.Level of Spending

Put a check on the number that suits your answer well.

Use these are your guide on choosing: 5 for ALWAYS,

4 for OFTEN, 3 for SOMETIMES, 2 for RARELY, and 1 for NEVER.

PERSONAL NEEDS 1 2 3 4 5
1. How often do you allocate money for hobbies or
personal interests (books, art supplies, sports equipment,
etc.)?
2.I prefer higher end personal items that are more
expensive than the regular one.
3.I compare prices when I buy clothes, shoes and
cosmetics.
4.I spend my money on mobile data load, prepaid wifi load
and etc.
B.FOOD 1 2 3 4 5
1.I compare prices I spend for foods.
2.I usually eat on restaurants.
3.I usually eat on carinderia
4.I usually eat on fast food chains
5.I prefer eating homemade meals.
C. ACADEMIC PURPOSES 1 2 3 4 5
1.I compare prices when I spend for school supplies.
2.I don’t hesitate to spend my money when it comes to
academic purposes
3.I spend large percentage of my money on review
materials such as photocopies or printed handouts.
4.I prefer to buy school supplies from popular book stores
such as National Bookstore, Pandayan Bookshop and etc.
D. TRANSPORTATION 1 2 3 4 5
1.I prefer walking rather than taking a tricycle or cab.
2.I prefer to commute in terms of transportation

3.I spend money for gas consumption because I have my

own service vehicle.