A DESCRIPTIVE RESEARCH ON ALLOWANCE AND BUDGET OF

ABM SENIOR HIGH STUDENTS (GRADE 11-12) OF ST. MICHAEL’S COLLEGE IN

ILIGAN CITY

CHAPTER 1

The Problem and Its Background

This chapter covers the introduction, background of the study, statement of the problem,
conceptual framework, scope and delimitation, significance of the study and definitions of terms.

Introduction

Going to Senior High School is an important part of any person's life. It is probably the first time
students get to experience independence. Being independent is both a privilege and responsibility. To be a
responsible student isn't something that can be achieve overnight. It needs to be put in mind and be an
attitude. One of these responsibilities is managing their allowance (Kazmier, 2004). One of the challenges that
every student encounter is to manage the money their parents provide them. Many students are having a
hard time in terms of budgeting their allowances. Money as one of the main necessity plays a significant
role in every student to survive Senior High School (Babbie, 1997 ).

Students on the other hand, learn to save their allowance as they grow and meet different
requirements in school as well as things they want to buy for their own. Budgeting is one of the practical
skills that come in useful for them (Norvilitis, et al., 2006). It helps them to attain a better understanding of
financial matters that would become handful in their future. The manner in which the students manage their
money depends on their daily needs; somehow it changes due to some factors. Students have their
personal needs, and through this study we will know how and where they generally spend their money. The
more knowledge students have about their financial responsibility and status the less likely they are to be in
debt (Norvilitis, et al., 2006). According to study women are more likely to report having a budget than men
(Norvilitis, et al., 2006). Allowance is a necessity for every student (Micomonaco, 2003 ). It is a means of
survival. It can also help students be financially responsible. Being essential, it just is right to state that
students shall be able to budget their allowance appropriately. The problem is how to do it. Doing so isn't
easy since students need to manage their allowance between their needs and wants. Also some only have
a limited amount of money. Proper budgeting is important. If done responsibly, it can give both the
students' needs and wants.

Due to factors that can affect budgeting, there exists a difference on planning a budget. The
manner in which college/senior high school students manage their money is based on several factors such
as age, personality traits, and knowledge (Gordon, 2010 ). This is the main focus of the study - the
personal budgeting practices of students. To assess if the students possess financial management skill. To
know how they manage their finances and the impact of the variables to their personal budgeting practices.

This study focused on the students of ABM Senior High School of the St. Michael’s College
in doing their budget daily. This study will also benefit the students as well as helping them to improve their
budget planning, make a recommendation based on the respondents what are the best thing to do in
budgeting their allowances and also the things that they need to change in their budget planning.

The main purpose of this study is to find answers from the respondents as to how and where they
spend their money every day. Budget as the main subject of this study will focus on the proper allocation of
allowances of every student in order for them to properly utilize their daily, weekly or even monthly
allowances. Of course budgeting will be different depending upon the student. Budgeting will be more
crucial most especially if the student is living in a dormitory wherein he himself is the master budget of his
daily needs.

Statement of the Problem

The objective of this study is to determine the personal budgeting practices of Business Students
of the College of Business Education. It aimed to answer the following sub-problems:

1. What is the profile of the students in terms of:

1.1 Age
1.2 Gender
1.3 Year level
1.4 Class schedule
1.5 No. of class days per week
 1.6 Allowance

2. What are the personal budgeting practices of business students as to:

2.1 Transportation
2.2 Food
2.3 Luxury and Leisure
2.4 Projects and Books
2.5 Communication
2.6 Savings

3. Is there a significant difference on students’ personal budgeting practices and their profile?

Conceptual Framework

4. INPUTS PROCESS
5.
PROFILE
6.  survey questionnaire
 Age  data gathering
7.
 Gender  analytical procedures
8.  Year level
 statistical procedures
9.  Class schedule
 No. of class days per
10. week
11. Allowance per day

VARIABLE
OUTPUT
 Transportation
 Food Budgeting Practices of
 Luxury and Leisure students
 Projects and Books
 Communication
 Savings

Figure 1. Research Paradigm

The diagram shows the organization of ideas.
 The proponents opted to use Input-Process-Output diagram. The first box shows the
inputs needed to gather data. These are the variables specific to each respondent. The second box
represents the how the data will be gathered and the tools to be used in analyzing the data. The
last box will be the result which is the main focus of this study.

Scope and Delimitation

The research study is limited and conducted only 100 students at St. Michael’s College- ABM
Senior High School in the 1st semester of school year 2018-2019. The respondents of the study are from
the from ABM Senior High School grade 11 and 12 since they have the knowledge in budgeting. Each of
the respondents will be given a questionnaire to answer. In order to assure the manageability of the
collected data, the proponents will only provide multiple questions like, checklist, ranking and rating
question. This is used to assess and estimate the amount of money of ABM Senior High School students
on where and how they spend their money and how they manage their finances.

Significance of the Study

According to Merriam-Webster Dictionary, budgeting is an amount of money available for

spending that is based on a plan for how it will be spend and allowance is an amount of something that is
allowed o available. If we connect these two words, it would mean, spending the available money within a
plan. This research focuses on the significance of different point of view of the users such as the students,
the parents, the administration, teachers or professors and the researchers.

For the students, some of the senior high school students are free from home and mostly they are
living on a budget, others are living without worrying their allowances running out because they have
enough to survive and the worst case are those students who simply getting themselves into a cycle of debt
by each other mean. This is where the significance of allowance budgeting practices exists, to know;
means to survive within daily allowance, ways to avoid over spending and having debt, allowance
budgeting practices that they do; suit to their lifestyle and live within their means.

For the parents, parents has different opinions about giving allowance to their children, because
they believe that they should provide the needs of their children and also believe that giving their children
allowance is a good way to teach them on their financial responsibility. This research will give them idea on
the amount of money they will allocate to their children and to monitor, on how their children spend their
allowances in the different variables given.

To the Administration, the school is the second home of the students and most of them spend
their entire day in school. Through this research, the school administration will be informed and have idea
on how they will formulate the class schedule of the students, that is one of the significant variables given,
that affects the allowance budgeting practices of the students.

To the Teachers, one of the variables given is the project that is usually given by the teachers.
This study has significance to them, to know the allowance budgeting practices of the students regards to
the projects. The sum that the students give up or practices that they set aside, enabling them to comply.

To the Researches, we, the researcher, the study itself is significant to us, not only, it is required
for us to conduct but also it give us the awareness and a chance to inform the users of the research, on
how the variable; Transportation, Meal, Luxury, and Projects affect the students on their allowance
budgeting practices. Also, it enhances the students’ awareness as to the importance of planning a budget.
They say the key is financial success is to be well aware of how to spend your money.

Definition of Terms

Allowance - is an amount of money given or allotted usually at regular intervals for a specific purpose.

Budget - is a quantitative plan used as a tool for deciding which activities will be chosen for a future time
period.

Budgeting - budgeting is a process. This means budgeting is a number of activities performed in order to
prepare a budget.

Budgeting Practices - the usual habit of students in spending their allowances and managing their
finances

Communication - means of connection between people or places, in particular.

Composite Mean - refer to composite measures of variables, i.e. measurements based on multiple data
items.

Descriptive method - is used to describe characteristics of a population or phenomenon being studied.

Luxury and Leisure - activities or hobbies students usually do after class or vacant period.

Meal - the food students eat at school.

Projects and Books - these are the school requirements the students must comply with.

Savings - the amount or money the students have saved.

Solving Formula - is used to calculate the sample size.

Stratified Sampling - with stratified sampling, the researcher divides the population into separate groups,
called strata. Then, a probability sample (often a simple random sample) is drawn from each group.

Transportation -mode of travelling from home to school.

Weighted Mean - Mean in which each item being averaged is multiplied by a number (weight) based on
the item's relative importance. The result is summed and the total is divided by the sum of the weights.