Professional Documents
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A Qualitative Study of Spending Behavior
A Qualitative Study of Spending Behavior
by
Evelyn Pangan
Eloisa Vergara
January 2017
Chapter 1
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 —
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
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?
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
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
ABM Advisers & Teachers – this study will help them in giving aid to their
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
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
Some terminologies that are going to be frequently used are listed below for the better
granted.
Baon – Filipino translation of the word “allowance”. Also means something that is
Budget - the amount of money that is available for, required for, or assigned to a
particular purpose.
a means of payment.
STI – serves as Systems Technology Institute, one of the largest networks of for-profit
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
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.
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
. 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
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
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