Definition of Terms

The following are conceptually and operationally defined terms commonly

used in the study.

Financial Literacy - Financial literacy is the education and understanding of

various financial areas including topics related to managing personal finance, money

and investing and knowing how money is made, spent, and saved, as well as the

skills and ability to use financial resources to make decisions. These decisions

include how to generate, invest, spend, and save money. (Investopedia.com)

In this study, it focuses on the ability to manage personal finance matters in

an efficient manner, and it includes the knowledge of making appropriate decisions

about personal finance such as investing, spending, budgeting, and saving money.

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

and it is defined as the act of disbursing money in response to an action,

environment, or person in the satisfaction of needs and wants. (Bartleby.com)

In this study, it refers to the individual’s behaviour affecting why they use or

spend their money just to satisfy their self wants and needs without controlling their

self wants.

ABM Students - An integrated or combined program in accounting and

business management that prepares individuals to function as accountants and

business managers. In this study, it refers to the track in senior high school which

specifically pertains to the Grade 11 and 12 ABM students as the main foundation of

our research.
Significance of the Study

This study would certainly benefit many individuals especially the Senior High

School students in UM Tagum College. First and foremost, it would equip young

people – students, with the good skills, knowledge and confidence they need to

make financial decisions. Students will know and understand what they must do and

what are the purposes of their money. They will be enlightened and simply know the

importance of spending money for their study.

Secondly, parents also would benefit from this research as this will help to

improve their thinking that it is very important for them for their children’s education.

It would also help parents to encourage their children to start saving at a young age

because the results will make them aware of the importance of family financial status

in shaping the spending behaviour of their children.

Third, the finding will serve as an aid for the teachers to encourage

themselves and their students to save.

And lastly, this will serve as a catalyst to the future researchers who will

desire to undertake a more thorough study regarding this aspect.