A Qualitative Study of Spending Behavior of ABM Students in STI College Malolos, Bulacan

by

Ivan Vince Longa

Evelyn Pangan

Christel Anne Quijano

Eloisa Vergara

A Research Submitted in Partial Fulfillment of the Requirements for Practical Research

Humanities & Social Sciences

STI College Malolos

January 2017
 Chapter 1

The Problem and its Background

Introduction

Allowance is the amount of something available or needed for a particular purpose), word

that is usually associated with students and school expenses. According to a research of

Westwood College in U.S., most of the seniors and college students spend the least of their

allowance in transportation, books and supplies but spends 40% on discretionary activities —

entertainment, apparel and services, travel and vacation.

Statement of the Problem

STI Malolos is a school located in Brgy. Dakila, Malolos, Bulacan along McArthur

Highway. Just a few meters away from some public establishments where every ordinary

students can hangout or spend their money whenever they want to. STI Malolos offers some

senior high programs and it includes the whole Academic Track strands and some strands in

Technical-Vocational Track which are tourism, culinary and computer-related specializations.

Inside the Academic Track is where ABM or Accountancy, Business Management belongs. This

strand tackles about business and accountancy studies including entrepreneurship, organizational

matters, stocks and shares etc. Looking inside their courses or subjects, it teaches the students

about the issues regarding expenses and it includes money. If these students are being taught
about money, then they have a big opportunity of understanding spending it wisely. Even though

they're just students and not yet applying the major purpose of their strand as an accountant or

businessman they are still part of our economy. Questions regarding the study are listed below.

1. As a youth and part of the society, how does an STI Malolos ABM Student spend his/her

extra money from their allowance after having the enlightenment of some ideas in

economics?

2. What are the major factors they are facing in spending their baon and how do they budget

it?

3. In creating a budget plan, what are their most priority as well as the least priority?

4. How frequent did they spend their baon for their wants?

5. Do they consider themselves responsible enough in budgeting with their own allowance?

Significance of the Study

Nowadays, it's undeniable that our allowance or “baon” have a huge amount compared to

the past generations. There are so many factors why this phenomenon happened in our

generation, some of them are increase of some school-related goods, mode of transportation,

school fees or just simply because of the demand of the majority of teens/youth nowadays. This

study will benefit the following:

 ABM Students – this study will tackle about their understanding about their

expenses and spending behavior. It will enhance their capability of applying their

knowledge from their field of study to the real world and as a part of their daily

practices.
  Parents – this study will provide a sufficient number of information to enlighten

and give insights for the ABM students’ parents for they are the most affected in

terms of monetary issues intertwined with the Kto12 Program.

 ABM Advisers & Teachers – this study will help them in giving aid to their

students’ understanding and providing their plans and procedures in delivering

every lessons related to their program.

Assumptions of the study

The researchers seek to describe how much allowance are given to ABM students in

general, where they spend their allowance and how at the same time they budget it. This will

illustrate different mindset and behaviors of the students towards financial matters. The study

also aims to benefit ABM students, parents and the ABM advisers & teachers upon the

information gathered on the end of the study.

Scope and Delimitations

This research study was limited and conducted only at the Systems Technology Institute

(STI) College Malolos during the second semester of the school year 2016-2017.The respondents

of the study are Grade 11 students, specifically Accountancy, Business, and Management (ABM)

students. The researchers have planned to survey 20 ABM students either male or female ranging

from 16-18 years of age. This is used in order to formulate an effective study regarding the

spending behavior ABM students.

Definition of Terms

Some terminologies that are going to be frequently used are listed below for the better

understanding of the study:

 Allowance – amount of money given to ABM students. A share or portion allotted or

granted.

 Baon – Filipino translation of the word “allowance”. Also means something that is

brought for in case of emergency.

 Budget - the amount of money that is available for, required for, or assigned to a

particular purpose.

 Spending - to use up or pay out.

 Behavior - the manner of conducting oneself.

 Spending Behavior - defined as the act of disbursing money in response to an action,

environment, or person in the satisfaction of needs and wants.

 Money - something generally accepted as a medium of exchange, a measure of value, or

a means of payment.

 STI – serves as Systems Technology Institute, one of the largest networks of for-profit

information technology based colleges in the Philippines.

 ABM – serves as Accountancy, Business, and Management, is a strand perfect for those

inclined in mathematics and for those persons who want to venture into the world of

business, marketing and enterprise.

Theoretical / Conceptual Framework

The concept of microeconomics will enter when talking about allowance and savings.

Some variables and data that we manage to figure out are the following.

INDEPENDENT VARIABLES D DEPENDENT VARIABLES

 Amount of Daily  Academic Excellence
Allowance  Projects & Activities
 Distance & Transportation Output
 Track & Specialization  Frequency of hanging out
 Schedule  Peer Selection
 Gender  Appetite
 School Environment or
Location

Figure I. Conceptual Framework showing the factors affecting allowance spending

 Chapter 2

Review of Related Literature and Studies

According to Department of Education, the additional two years in High School is not

necessarily about expenses. Furthermore, Senior High School will be offered free in public

schools and there will be a voucher program in place for public junior high school completers as

well as Educational Service Contracting (ESC) beneficiaries of private high schools should they

choose to take Senior High School in private institutions. Unfortunately, this statement does not

cover most of the miscellaneous fees.

Allowance & Expenses

. The manner in which students manage their money is based on several factors such as

age, personality traits, and knowledge (Norvilitis, et al., 2006). Also, students are in a unique

situation because they have restricted incomes and high expenses; therefore, they manage money

differently (Micomonaco, 2003). The more knowledge students have about their financial

responsibility and status the less likely they are to be in debt (Norvilitis, et al., 2006). It clearly

states that students are very different with each other, even though they are having the same

amount of allowance, their expenses still vary.

Relationship between allowance and expenses

 Students should maintain their priorities in spending so that it won’t be a problem if they

are cut short on their budget (De Guzman, M., et al., 2012). Budget is a financial plan that lists

expected expenses and income during a particular period. People saved diligently for major

purchases keeping plenty of funds for unforeseen emergencies (Ritzer, 1995). It’s very important

to make sure that you have enough money to cover the cost of your tuition fees and living

expenses before you begin your course. Majority students perceive themselves as more incontrol

of their finances than minority students perceive themselves (Micomonaco, 2003) Therefore,

budgeting is the most important factor to consider keeping allowance and expenses balanced

with each other.

Impact of budgeting on school expenses

The success and importance of budgeting relates to the identification of organizational

goals, allocation of responsibilities for achieving these goals, and consequently its execution

(Shah, & Robinson., 2007. Drake, & Fabozzi., 2010). It is one of the most successful and useful

management accounting techniques that can reap handsome rewards if properly understood and

implemented (Allaham , et al., 2012.). To sum it up, budgeting has a wide range of usage and is

the most common systematic procedure in order to build up a better profit.