Clarin National High School

Población 3, Clarin, Misamis Occidental

“FAMILY SOCIOECONOMIC
STATUS: ITS EFECTS ON
STUDENTS’ BUDGET
CONSUMPTION”
Chapters 1,2, & 3

Presented to
Mrs. Maryjane N. Tizon
Inquiries, Investigation, and Immersion Techer

Presented By
Rezamil Milvar
Juliana Bernido
Kean Coca
Rhea Irish Pekit
Kaye Mateo
Rishel Ann Cartajenias
 Chapter 1
INTRODUCTION

1.1 Background of the Study

Family socio-economic status (SES) is a measurement of an individual's or family's

economic and social standing based on variables including income, education,

occupation, and social status. A family's socioeconomic status (SES) is a reliable

indicator of a child's academic and social outcomes. The possibilities and resources

available to a child, including their access to high-quality education, healthcare, and

nutrition, can vary depending on the socioeconomic position of their family (Sirin, 2005).

One area in which family SES may also have an impact on a child’s behavior and

decision-making is their budget consumption. Santrock (2018) stated that, students'

budget consumption describes how they allocate their funds to buy things like books,

entertainment, and other necessities or wants. Students' budget consumption may be

affected by things including their own income, financial management abilities, and

family's socioeconomic standing. Students from households with various socioeconomic

status levels may have various spending patterns, including budget consumption.

According to Ward and Scott (2018), compared to their classmates from higher

socioeconomic backgrounds, students from lower socioeconomic backgrounds tend to

spend less money on non-essentials like entertainment and apparel. Due to resource

constraints and the necessity of giving fundamental needs priority, this occurred. Also, a

2018 study from the University of Michigan discovered that those with greater

socioeconomic level are more likely to engage in risky financial activities like gambling,
speculative investing, and high-risk credit card use. Also, the study found that those with

lower socioeconomic status are more likely to place a higher priority on budgeting and

saving.

Many studies have focused on the general financial behavior of students, including

their saving and spending habits, without considering how these behaviors may differ

among students from varying socioeconomic backgrounds. This research gap highlights

the need for a comprehensive analysis of the impact of family socioeconomic status on

students' budget consumption habits, including their spending on education, leisure

activities, and other necessities. By exploring these differences, researchers can gain a

better understanding of how family SES may influence students' financial decision-

making and inform policies and interventions aimed at promoting financial well-being

among students from different socioeconomic backgrounds.

Moreover, this study aims to investigate the relationship between family

socioeconomic status and students' budget consumption habits in Clarin National High

School. The study will use a survey questionnaire to collect data from senior high school

students who are currently enrolled in the second semester of the academic year 2022-

2023. The survey questionnaire will include questions about students' spending

behaviors, including their budget allocation for educational materials, leisure activities,

and other needs or wants. Additionally, the questionnaire will gather information about

students' family socioeconomic status, such as their parents' education level,

occupation, and household income.

1.2 CONCEPTUAL FRAMEWORK

FAMILY STUDENTS’
SOCIOECONOMIC BUDGET
STATUS CONSUMPTION
HABITS
Figure 1. the schematic diagram of the Independent and Dependent Variables of the study.

This conceptual framework shows the independent (Family Socioeconomic

Status) and dependent variable (Students’ Budget Consumption Habits) of the study. It

is presumed that student’s budget consumption habits are affected by their family

socioeconomic statuses.

1.3 RESEARCH HYPOTHESIS

Students’ budget consumption habits are affected by their family socioeconomic status.

1.4 STATEMENT OF THE PROBLEM

Family socioeconomic status (SES) refers to the social and economic position of

a family within a society. One area where family SES may have an effect on students in

their budget consumption habits. This study aims to determine the effects of family
socioeconomic statuses on students’ budget consumption habits. Moreover, this study

seeks to answer the following questions:

1. What is the family socioeconomic statues of the students?

2. What are the students’ budget consumption habits?

3. Is there a significant difference between budget consumption habits among

students from different family socioeconomic statuses?

1.5 SIGNIFICANCE OF THE STUDY

Family Socioeconomic Status (SES) is an integral part in assessing its effects on

the budget consumption habits of students. The study is deemed beneficial to the

following:

The Students. The study can benefit students as it can provide insights into how their

family's socioeconomic status can influence their budget consumption habits. This

knowledge can help students make informed decisions about their spending habits and

budgeting.

The Parents. Parents can benefit from the study by gaining a better understanding of

how their socioeconomic status can impact their children's budget consumption habits.

This information can help parents make more informed decisions about their finances

and better support their children's financial literacy.

The Researchers. The study can provide insights into the relationship between family

socioeconomic status and consumption habits, which can contribute to the development

of theories and models that explain financial behavior.

1.6 SCOPE AND LIMITAITON OF THE STUDY

This study will cover the determination of the effects of family socioeconomic

status to the students’ budget consumption habits. The main objective is to determine

the differences in budget consumption habits among from different socioeconomic

statuses. This study will be limited to randomly selected 282 senior high school students

enrolled in Clarin National High School in the second semester of academic year 2022-

2023.

1.7 DEFINTION OF TERMS

Budget. A budget is a way to balance income, expenses and financial goals for a

specific length of time (Nerdwallet:2020). In this study, it refers to the primary household

unit that the senior high school students on Clarin National High School belong to.

Consumption. Consumption is described as the final purchase of goods and services by

individuals. (Study.com:2021). In this study, consumption refers to the act of using or

consuming goods and services purchased by the senior high school of Clarin National

High School using their budget.

Family. A family is a group of two or more persons related by birth, marriage, or

adaption who live together (Health Resources & Services Administration: 2022). In this

study, it refers to the primary household unit that the senior high school students of

Clain National High School belong to.

Habits. A habit is a settled tendency or usual manner of behavior that a person does

often and regularly (dictionary.cambrigde: 2023). In this study, it refers to the routines
that senior high school students of Clarin National High School engage in with regard to

their spending and budget consumption practices. This includes the types of items they

typically purchase and the frequency and quantity of their purchases.

Students. A student is a person who is formally engaged in learning, especially one who

is enrolled in school or college (dictionary.cambrigde:2023). In this study, students

refers to the senior high school students of Clarin National High School who are the

budget respondents of the study.

Socioeconomic status. Socioeconomic status is a measure of an individual’s or family’s

social standing or class, which is often determined by a combination of education

income, and occupation (American Psychological Associattion:2022). In this study,

socioeconomic status is referred as a composite measure of the family’s income,

occupation, and education attainment of senior high school students of Clarin National

High School.

Chapter 2
Review of Related Literature

Family socioeconomic status (SES) is a widely researched topic in the field of

education. It is often used as a predictor of academic achievement, but it also has a

significant impact on students' lives outside of the classroom, including their budget

consumption habits. This chapter provides an overview of the literature on the effects of

family SES on students' budget consumption habits.

2.1 Family Socioeconomic Status

Family socioeconomic status (SES) is a term used to describe a family’s social

and economic standing based on elements including income, education, occupation,

and social class. It may significantly affect how a family spends their money and makes

financial decisions.

A study in the Journal of Consumer Affairs (2018) found that, compared to

families with lower socioeconomic status (SES), families with higher socioeconomic

status (SES) tend to have bigger budgets and spend more on upscale products and

services. The study examined information from the 1984–2014 Consumer Spending

Survey, which was carried out by the Bureau of Labor Statistics in the US. The findings

indicated that while families of lower socioeconomic status (SES) spent more on needs

like housing, food, and healthcare, families of higher socioeconomic status (SES) spent

a bigger percentage of their budget on leisure, dining out, and vacation.

However, the study also discovered that over time, the consumption gap

between families of higher and lower socioeconomic status (SES) has shrunk, possibly

as a result of modifications in monetary conditions, social policies, and cultural attitudes

toward consuming.

2.2 Students’ Budget Consumption Habits

According to research done by T. Y. Chen and K. S. Chen (2019), students’

budget consumption habits are influenced by their family’s socioeconomic status (SES).

Researchers discovered that students from households with higher socioeconomic

status (SES) had distinct purchasing patterns from those from lower socioeconomic
status (SES) families because they often have greater financial resources and have

fewer financial limitations.

The study found a number of variables that contributed to the variations in

students’ spending patterns. For instance, children from households with higher

socioeconomic status (SES) typically receive greater financial assistance from their

parents, allowing them to spend more on luxuries like dining out, entertainment, and

vacation. Students from lower socioeconomic status (SES) households, on the other

hand, are more likely to give priority to necessities like food, shelter, and transportation.

Furthermore, the study indicated that students’ opinions of their family’s financial

position also play a substantial effect in their consumption behavior. Students from

households with greater socioeconomic status (SES) typically perceive their financial

circumstances more favorably, which may encourage them to spend more freely.

Students from lower socioeconomic status (SES) households, in contrast, typically seek

financial stability and are more frugal with their spending. The study’s overall findings

emphasize the influence of family socioeconomic status (SES) on students’ budget

consumption habits. The results imply that students from lower socioeconomic status

(SES) households may benefit greatly from financial education and support in order to

establish sound financial practices and improve budget management. The study also

underlines the significance of policymakers and educators recognizing and addressing

socioeconomic inequalities that may affect students’ consumption patterns.

2.2.1 Students’ Spending Habits from Low Socioeconomic Status Families

 Students from lower-income households often pay less on non-tuition fees than

students from higher-income families, according to a report by the Institute for College

Access & Success (TICAS) in 2020. This may be a result of the necessity to prioritize

basic requirements like housing, food, and transportation with limited financial

resources.

According to the study, a four-year public institution’s average total cost of

attendance for students from households earning under $30,000 in the 2017–2018

academic year was $20,810. This includes the cost of living, books, supplies, room &

board, transportation, and personal expenses. Yet, students from low-income families

may struggle to pay for these expenditures; some may even need to take out loans or

work part-time jobs to make ends meet. About half of respondents from low-income

homes in a poll of over 86,000 college students done in 2019 by the Hope Center for

College, Community, and Justice reported experiencing food or housing insecurity in the

previous year.

Also, studies have indicated that low-income students are more likely to leave

college owing to financial concerns. In order to help these students thrive, colleges and

universities must offer support services including financial aid and emergency

assistance programs.

2.2.2 Students Spending Habits from Middle Socioeconomic Status Families

According to a study published in the Journal of Financial Counseling and

Planning in 2020, middle-class families tend to spend more on discretionary costs like
eating out, entertainment, and apparel than low-SES families, but less than high-SES

families.

Almost one-third of the 300 undergraduate students in the study, who attended a

sizable public university in the United States, were from poor, middle, or high

socioeconomic status (SES) homes. According to the findings, students from families

with middle socioeconomic status (SES) spent an average of $292 per month on

discretionary expenses, which was more than the $183 per month spent by students

from low SES families but less than the $438 per month spent by students from high

SES families.

The survey also discovered that, as compared to students from low

socioeconomic status (SES) households, students from middle socioeconomic status

(SES) families were more likely to utilize credit cards to pay for their expenses.

According to this, middle-class students may have more disposable income than

students from lower socioeconomic status (SES), but they may also be more prone to

getting into debt if they do not carefully manage their finances.

2.2.3 Students Spending Habits from High Socioeconomic Status Families

High socioeconomic status (SES) households frequently have the most financial

resources available to their children, and their children may also have more disposable

cash to spend on non-essential expenses. According to research, these students may

be more inclined to partake in pricey social activities like travel and entertainment and to

feel more entitled to money (Callahan et al., 2018). But they might also have more
financial resources and knowledge at their disposal, which could aid in better money

management.

CHAPTER 3
METHODOLOGY

This chapter covers the methodology of the study, including the research method

used, research locale, the respondents, sampling technique, instruments used, data

gathering procedure, and statistical treatment used in this study.

3.1 Research Design

A quantitative research design is used by the researchers in this study. Bryman

and Bell (2019) stated that, quantitative research design is a systematic and organized

method for gathering and evaluating numerical data in order to comprehend ad explain

social phenomena. It makes use of methos for gathering structured and standardized

data, like surveys, questionnaires, and experiments that yield numerical data.

Researchers specifically used the descriptive research design to determine how family

socioeconomic status affects students’ budget consumption habits. Descriptive research

design in the definition of the American Psychological Association, “involves gathering

data in order to answer questions regarding the current status of the subject of study,”

(APA, 2020). It is a form of research methodology used to describe a populations or

phenomenon’s characteristics. It entails gathering and processing data in order to

provide a full and precise representation of the study.

3.2 Population and Sample Size

The target population of this study consists of 1050 senior high students of Clarin

National High School. The table below shows the breakdown of the recorder number of

students of senior high enrolled for the academic year 2022-2023.

Year Level Number of Students

Grade 11 500

Grade 12 550

TOTAL 1050

The researchers used the sample size calculator in determining the appropriate

sample size. From a population size of 1050, a sample size of 282 students were

chosen to represent the population with 5% margin of error and 95% confidence

interval. Using this technique, each sample has the same probability as other samples

to be selected to serve as a representation of an entire population, which leads to an

unbiased data collection and an unbiased conclusion.

3.3 Research Locale

The study conducted by the researchers in Clarin National High School in

Población III, Clarin, Misamis Occidental. Clarin High School was the name of Clarin

National High School in 1944. To service the residents of Clarin and the nearby towns

such as Tudela and Sinacaban it was established. The local government, led by the late
Mayor Juan Solomon, worked diligently to open Clarin’s first high school with the help of

community-minded residents who gave their land. The school location has a total land

size of more than seventeen thousand (17,424) sqiare meters and is situtated along a

national highway seven (7) kilometers from the City of Ozamiz.

And now, in the current years, Clarin National High School with the K-12

Curriculum enhances its further education by adding grade levels of 11 and 12 which

consists of three (3) tracks; namely, Academic Track, Technical Vocational and

Livelihood (TVL) Track, and Arts & Design Track. Under the Academic Track consists of

four (4) strands; the Science Technology Engineering and Mathematics (STEM),

Accounting Business and Management (ABM), Humanities and Social Science

(HUMMS), and General Academic Strand (GAS). For the Technical Vocational and

Livelihood (TVL) Track consists of four (4) strands; the Industrial Arts (IA), Home

Economics (HE), Information and Communication Technology (ICT), and Agrifishery

Arts (AFA).

3.4 Research Instrument

Researchers used survey questionnaire as an instrument in gathering data for

this study. The survey questionnaire was adapted and modified from J. C. Lee & J.H.

Lee’s (2019) study on the effects of family socioeconomic status on collage students’

consumption behavior in South Korea. Questions were based on the independent

(Family Socioeconomic Status) and dependent (Students’ Budget Consumption Habits)

variables of the study. It consisted of three parts. The first part includes asking the

parents or guardians occupation, educational level, household income, and family

socioeconomic class of the respondents. On the second parts, the respondents were
asked how much is their allowance, budget plan and how much they spend on

educational-related expenses, leisure activities, and necessities, respondents were

asked to rate how frequent they spend on these expenses. Furthermore, researchers

used to 5-point Likert/Rating Scale to measure the frequency of the respondents budget

consumption.

Table 1. A descriptive table of the 5-point Likert/Rating Scale to measure the frequency

of the respondents’ budget consumption.

RATING CLASS BOUNDARIES QUALITATIVE

DESCRIPTION
1 0.5 – 1.5 Never

2 1.6 – 2.5 Rarely

3 2.6 - 3.5 Sometimes

4 3.6 – 4.5 Very Often

5 4.6 – 5.5 Always

3.5 Data Gathering Procedure

The study looked into the effects of the family socioeconomic status students’

budget consumption habits. The 492 randomly chosen Senior High students of Clarin

National High School who are enrolled in the second semester of the 2022-2023

academic year provided the data. The researchers randomly selected 492 students to

participate in this study. Permission from the participants was required in order to collect

data. In person survey are used to gather information about the participants budget

consumption habits and the important information of their family socioeconomic status.
The researchers provided a questionnaire for the participants to fill out. The survey’s

results underwent statistical analysis, and the tables and charts that were given to

support the conclusion of the researchers.

3.6 Statistical Treatment

The use of statistical methods to support research hypothesis will be discussed.

The following are the statistical tools:

Mean was used in order to know which family socioeconomic status, the respondents

belong to. Mean was also used to figure out how frequent the respondents spend their

budget on educational-related expenses, leisure activity, and necessities.

Correlational Analysis was used in this study to figure out the relationship of family

socioeconomic status and students’ budget consumption habits of the respondents.

 References

Callahan, K. M., Zilvinskis, J., Renn, K. A., & Byrd, S. M. (2018). Making sense of

privilege: Defining and measuring the financial entitlement of college students.

Journal of Student Affairs Research and Practice, 55(1), 60-74.

Chen, T. Y., & Chen, K. S. (2019). Socioeconomic status and college students’

consumption behavior: a case study of Taiwan. International Journal of

Educational Development, 68, 17-23.

Dholakia, U. M., & Kadiyali, V. (2018). Consumption Patterns of High and Low Income

Families Over the Last Three Decades. Journal of Consumer Affairs, 52(2), 251-

271.

Gutter, M. S., Cupples, M. E., & Gjesvold, L. (2020). Financial behaviors and attitudes

of undergraduate students from diverse socioeconomic backgrounds. Journal of

Financial Counseling and Planning, 31(2), 176-187.

TICAS. (2020). The cost of college beyond tuition: Non-tuition expenses for low- and

moderate-income students at public four-year institutions. Retrieved from

https://ticas.org/affordability-2/cost-of-college-beyond-tuition/