THE SPENDING HABITS OF STI BAGUIO SENIOR HIGH SCHOOL STUDENTS

JAMAE A. FONTANOS
JOMAICA L. HILADO
JESSICA MAE B. LARDIZABAL
AARON TAMAYO
CLIFFORD R. VENDIOLA
NAJERAH M. YUSOPH

SUBMITTED TO THE FACULTY OF THE STI COLLEGE BAGUIO,

NEW LUCBAN BAGUIO CITY
IN PARTIAL FUFILLMENT OF THE REQUIREMENTS IN
PRACTICAL RESEARCH 2

July 12, 2018

 CHAPTER I

Background of the Study

Being a student means having an allowance. According to Merriam Webster

Dictionary, allowance is an amount of money that is given to someone regularly or for a

specific purpose. According to a research by T. Rowe Price, 70 percent of kids get some

kind of allowance nowadays. It’s essential that parents empower them with financial

knowledge and freedom. While there are arguments against giving allowance to kids, two

studies from the “Journal of Economic Psychology” and T. Rowe Price indicate that kids

who receive allowances tend to be more knowledgeable than kids who don’t.

Where do students’ allowance come from? Most of the time, it is from their parent’s

income or sometimes it is from their guardian. However, those incomes of their parents are

not only for their allowance because they also do budgeting for their families’ basic needs.

Parents have different thoughts about giving their child an allowance. For some it

is a good thing because they feel that giving an allowance can build a child's financial

literacy. Financial literacy is the ability to understand how money works: how someone

makes, manages and invests it, and also expends it. (Godfrey, 1993). For some parents, it

is not a good thing because it can be a breeding ground for bratty behavior, leading

to unrealistic expectations. If a parent, especially the rich one, keep on giving a lot of
money for his or her child then he will not only use it to school but to other things like

hanging out, buying unnecessary stuff and maybe do some irrelevant things with their

friends. (Fontana, 2012)

Students do budgeting because it allows them to create a spending plan for their

money, it ensures that they will always have enough money for the things they need and

the things that are important to them. Following a budget or spending plan will also keep

them out of debt or help how they work their way out of debt if they are currently in debt.

(MyMoneyCoach, 2018).

Allowance is inclined with money management however, not all students may

understand money management especially to those in primary levels they often spend

money right away. Older students like secondary levels and tertiary levels may do money

management without knowing it. As they grow, they take responsibility to their money

learn basic math addition, subtraction, multiplication and division or simply calculating

their expenses thinking of how much will remain in their money if they spend it on

something. Trying to earn for a certain item and more process in how they allocate their

allowance. (Linwood and Franklyn, 2000).At an early age, individuals are exposed to

various methods of handling personal finances, which can often lead to the development

of poor habits. (Gutter, Garrison & Copur, 2010). Once they have money hanging around

their necks, they seem to feel uncomfortable from the weight, and so they want to spend it

right away. (Rios, 2017).Giving too much allowance to a student risks financial

irresponsibility including unnecessary hanging out with friends and playing LAN-based
games in computer shops. Millennials tend to prefer to fork over money for fun and nice

experiences rather than for buying things. The younger ones value being in some place nice

than saving the money to buy a nice gear. But, of course they still spend on gadgets and

clothes if their funds allow. The youth has also started to spend more money on

entertainment and lifestyle and has become more brand conscious. With these poor habits,

will the students be able to save money?

This study was conducted because the researchers noticed that saving a lot of

money are becoming viral today. There are a lot of post on social media about the “Ipon

Challenge”. For example, the netizen would say that he or she has (100,000+) amount of

savings because every time he or she has P50, he will save it and the process continue.

Some people who post those inspirational “Ipon Challenge” are still students. The

researchers were curious because being a student has a lot of requirements, wants and

cravings. Can students commit in saving money from their allowance?

The main purpose of this study is to know the often expenses of STI students if they

end up saving for themselves and to go further about the spending habits of STI students

affecting the management of their allowances. The researchers would like to find out these

things because they are also students who pay for something they want or they need. So,

they want to find out how their fellow STI students manage their money and if they still

end up saving money at the end of the day.

 Significance of the problem

To the Respondents

This study will help the respondents to know how they spend their money, for them

to know their limitations in all their expenses and this will them know the important things

that they need to give value to.

To the Parents

This study will help the parents to find out whether the allowance that they are

giving to their child is enough or inadequate and this will provide information if the money

they are working hard for is being used properly. Also it will make them be aware about

their child’s way of thinking about money.

To the Researchers

This research will help us acknowledge certain attribute that students have in

allocating or budgeting their allowance.

 Statement of the Problem

In general, the study attempts to understand the spending habits of STI Senior High

School students.

Specifically, the study aims to answer the following:

A.) What are the often expenses of students?

B.) Are these expenses good or bad to them?

C.) Are the students able to save money from their allowance?

D.) Are the students able keep track on their spending habits?

E.) Do students manage well their allowance?

 Hypothesis

Null Hypothesis:

A.) The students’ allowance are allotted to their vices.

B.) The expenses of students are bad to them.

C.) The students does not able to save money from their allowance.

D.) The students does not able keep track on their spending habits.

E.) Students does not able to manage well their allowance.

Alternative Hypothesis:

A.) The students’ allowance are allotted to foods, beverages, school supplies

and other miscellaneous.

B.) The expenses of students are good to them.

C.) The students are able to save money from their allowance.

D.) The students are able keep track on their spending habits.

E.) Students are able to manage well their allowance.

 Definition of Terms

The terms are defined lexically and operationally.

Allowance

- A small amount of money that is regularly given to children by their parents

- The daily money of students

Expenses

- An amount of money that must be spent especially regularly to pay for

something

- The daily value of students spending

Habits

- Something that a person does often in a regular and repeated way

- Daily expense of students

Management

- The process of dealing with or controlling things or people

- How the students spend and save at the same time

Saving

- The amount of money one has saved, especially through a bank or official

scheme

- Amount of money that the students saved after spending for their expenses

Spending

- To use money to pay for something

- How the students use their allowance in a day