2
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Chapter 1
INTRODUCTION
education, we have observed that a number of senior high students have a problem of
budgeting their allowance. Especially, in the school expenses that can be related into
paper works or school related including photocopy, and research papers, “budgeting can
help you control spending” (Bob, 2019). When will be the time to begin this budgeting?
There are many benefits to create this budgeting on your life because money consider as
one of the main necessity plays a significant role in every students to survive a Senior
High School.
Budgeting is the best way to see that you’re a responsible students and this will
make the students know more about budgeting in a good way it will also change your
behaviour, budgeting will also getting your expenses under control (Bob, 2019).
Based on our research, many of the students particularly people have reasons why
they don’t want budgeting, you can’t buy what you want example are the food you want
or the things you want because you are budgeting your allowance or money. Your
emotional brain responds to the word budget the same way it responds to the word diet.
implies scarcity, needs, and desire and it’s our instinct to overcome those and the best
way we know: spending our money. That’s why budgeting their allowances give a hard
time to many students when they feel hungry and can’t help to buy.
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In this, topic we want to know what will be their strategies and the way they
budget their allowances in terms of school. This will help the students learn to save their
allowance as they grow and meet different requirements in school as well things they
want to buy for their own. One of the practical skills that come in useful for them is
budgeting (Norvilitis, et. al., 2006). Budgeting helps the students to attain a better
understanding of financial matters that would become handful or useful in their future.
This study will inform the people and other stakeholders in education the
budgeting ways of senior high students in Davao City National High School. Findings of
this study enable the people to persuade senior high students on budgeting allowance.
This study would also expose parents to the need of budgeting that will expose them to
dilemma. Students get difficulties how to budget their allowance example poor person
while some in middle-class of the students society are not totally conscious about their
money. An effective way of budgeting is to make a list or to do list their needs rather than
wants.
Research Questions
Theoretical Lens
theory, this analyzes the link between personal budgets to manage self-control problems
renders budgets useful commitments, their interaction with minimum-savings rules, and
how budgeting depends on the intensity of self-control problems and with support of
marginal utility analysis on the way they spend and the behaviour of the person.
something that make them spend their money, in this topic we will know their ways to
adopt by many students and to know the most effective way on budgeting aiming to help
them.
This study is focusing only to the senior high students of Davao City
National High School. The researcher will meet students with various strands who had a
problem of budgeting or don’t know how to budget their money. The research assume
that they will met various challenges when conducting the research including
4
participating to our research. The research wills confidentiality claims the information
and the researcher must filter questions to avoid conflict “using his or her eyes and ears
and filters” (Lichtman, 2013 p.4). Time limitation made it impractical to include more
respondents in the study. This study was also limited by other factors in some
respondents may have been biased or dishonest in their answers. The study is only
conducted at Davao City National High School and therefore does not cover other
culture.
groups:
Students. This study will help the students to know how to budget well their allowance.
Teachers. This study helps the teachers to guide and help their students who don’t know
Parents. This research helps the parents on teaching their child in budgeting there
allowance.
Future researcher. They can use this as their guide and reference in their research or
Definition of Terms
future period of time and is usually compiled and re-evaluated on a periodic basis.
5
Budgets can be made for a person, a family, a group of people, a business, a government,
a country, a multinational organization or just about anything else that makes and spends
absolutely acceptable from an ethical perspective. Although we face many ethical and
moral problems in our life, most of them come with relatively straightforward solutions.
The study is organized into three (3) chapters. Chapter one (1), Introduction gives
a brief background into budgeting among Senior High students. The chapter also presents
the purpose of the study, research questions, theoretical lens, and importance of the study
and the definition of terms. Chapter two (2) stresses on a detailed review of the relevant
literature on budgeting. Chapter three (3) presents the methodology of the study. Thus, a
detailed review of the processes through which the study will be carry.
6
Chapter 2
and financial behaviors of senior high school students. Topics to be reviewed include
senior high school student’s financial literacy, senior high school student’s financial
behaviors, the need for personal finance education at the secondary school level, and
views students toward their personal finance. The chapter concludes a summary. This
occur. Budgets are thus part of the firm’s organizational architecture; they partition
decision rights and control behavior. Dwight D. Eisenhower, Supreme Commander of the
Allied Forces in Europe during World War II and the 34th president of the United States,
is quoted as saying, “In preparing for battle, I have always found that plans are useless
Eisenhower, in many cases their value lies more in the process of planning than in the
actual budgets produced. Many times budget are obsolete before they can be
implemented because the world has changed in some unexpected manner. However, the
communicating it to than managers with the decision rights. Budgets are developed using
key planning assumptions or basic estimating factors that are widely accepted forecasts of
7
strategic elements faced by the firm. Typical planning assumptions are product prices of
key inputs. Budgets help assemble and then communicate these key planning
assumptions. Key planning assumptions represent those factors that are, to some extent,
beyond management control and that set a limit on the overall activities of the firm.
Students 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, 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
A number of online sites spread giving a complete guide covering all aspects of
personal financial management. The field has been numerous also discussed in textbooks,
publication articles from the popular press to academic journals, for instance, gender,
race, allowance, education, occupation, age and marital status (Anderson, 2000; Kemp,
2004). Those discussions merely analyzed the intersections of real life-course domains.
Yet, as students, they need to know how to manage their money practically to obtain the
greatest benefit from the money they earn or get from their parents. Students are quite
susceptible (Lee & Workman, 2015). Amongst students, the range of CBB was growing
from time to time (Roberts, 1998; Magee, 1994; Hassay & Smith, 1996). Mostly,
compulsive buyers buy items such as apparel, shoes, electronic devices, accessories,
8
beauty haul, household things (Miltenberger, 2003). People with higher allowance have
more tendency to do CBB ( Guo & Cai, 2011). And for those who have limited amount, it
is still not adequately evaluated in some previous studies. Beside allowance, financial
budgeting. The use of a budget is to control the flow of money. Budgetary is enlightening
to track expenses for a month and the compare actual expenditures to planned
expenditures (Chieffe & Rakes, 1999). Researches and articles on budgeting have been
conducted over the years (Horvath & Sauter, 2004; Goode & Malik, 2011 Lorain et. al,
2014). All those discussed the integration of budgeting system in the point of view of
Budgeting process still require more attention for the sake of the organizations,
and in changing the environment, it provides a set of source information that can serve as
budgeting is still questionable, as some believe that budgeting help people in controlling
their spending (Antonides, 2011; Reka, 2014). Nevertheless, there is still a remarkable
lack of empirical research on the benefits that people who budget their money actually
Study conducted by the bank and financial institution, students fork over money
to buy cell phone load, to play computer games at Internet cafes and to buy cigarettes and
alcohol. They also spend money on going out and on clothes and accessories (TJ
Manotoc, ABS CBN News, 2010). Students hang out and shop. They are active
consumers in terms of the money they spend, as well as in the influence they wield in
9
their families and on social trends. Despite being raised in a period of rapid change, they
sector, relies heavily on budgets and budgetary systems to achieve strategic goals. The
allocation of responsibilities for achieving these goals, and consequently its execution
(Shah 2007; Robinson 2007; Drake and Fabozzi 2010). It is one of the most successful
and useful management accounting techniques that can reap handsome rewards if
strategic goals and objectives and developing forecasts for revenues, costs, production,
cash flows and other important factors (Jr. Bierman 2010; and Bonner 2008). By putting
together a financing and investment strategy in place, this will allow those responsible for
financing of the company to determine what investment can be made and how these
investments will be financed. “In other words, budgeting pulls together decisions
regarding capital budgeting, capital structure, and working capital.” (Drake and Fabozzi
2010: 115). The end result of the process is the production of the formal document
be pursued for that period to attain a given objective. Its main purpose is to aid in the
purpose. Like Campbell (1985), other writers such as Drake and Fabozzi (2010), Bonner
10
(2008), Jr. Bierman (2010), and Miller et al (2001) have all agreed that budgeting is
mapping out the sources and uses of funds for future periods. However, it is believed that
there are both technical and behavioral aspects to budgeting that can benefit all firms if
emphasized as being most important, Campbell (1985) indicates that the recognition of
both the technical and behavioral aspects of budgeting is essential, if goal and behavior
congruence1 are to be achieved. Recognizing this dimension, Hope & Fraser (2001),
Morris et al (2006), Boon et al (2007) and other writers in the field are now focusing on
the organizational and behavioral changes needed to support the budgeting process. This
is reflected in the latest set of twelve Beyond Budgeting principles, which entails a shift
from financial performance emphasis to one based on people. The technical component
of budgeting deals with a mathematical computation of projected costs and expenses and
has been heavily emphasized in the public sector. The behavioral component however
focuses on the ability to achieve the technical aspect of budgeting with the use of people.
Having observed the nature of the budgeting process Hopwood (1974), Redman and
Wilkinson (2009), Boxall and Purcell (2008) and Eamets et al (2008) argues that
behavioral and social aspects are an integral part of the budgeting process and should not
be divorced from the technical side. As such, organizations should recognize that the
effective use and application of any budget is very much dependant on the extent to
which employees are committed to the ideals of the budgetary process and encourage
behavior that is in accordance with the entity’s objectives. Bratton and Gold (2007: 442)
assert that an organization can build capacity through employee participation and
empowerment.
11
financial aid (Coomes, 1992; Dennis, 1983; Hira & Brinkman, 1992; Holland & Healy,
1989; McDougal, 1983; Moreland, 1986). Other research examines the relationship
between money management and credit (“Planting the seeds,” 1992; Broebeck, 1992;
McEldowney, 1994; Murdy, 1995; Rush, 1995). A third body of research looks at money
management as part of the larger issue of consumerism (Garman & Bach, 1995; Glade,
15 1991; Herrmann, 1982). These studies provide valuable insight about money
(Anderson et al, 1993; Archer &Lamnin, 1985; Danes & Hira, 1987; Heckroth, 1993;
Ingalls, 1990; Jackson & Pogue, 1983; Murphy & Archer, 1996). These studies offer
insights about college students’ needs, attitudes, and knowledge about money
management.
Self-control which is linked to CBB has been actually discussed in some prior
studies (Billieux, 2008; Gupta, 2013; Achtziger, 2015). For instance, Billieux mentioned
that three aspects (urgency, perseverance lackness, and premeditation lackness) that
correlated with compulsive buying (Billieux, 2008). Some studies followed by looking
from a marketing perspective (Gupta, 2013) other causes of CBB due impulses or lacks
domain related to CBB is lacking. In this study, self-control is linked to CBB to see
the influence of excessive buying decision making as financial control. The purpose of
this study is to identify the effects of allowance, personal budgeting, and self-control as
mediating role on CBB. This study hopefully will give a significant facilitation for
12
college students in giving suggestions to prevent CBB by being aware of the importance
activities, such as those described here, are not new to political science
pedagogy. Various authors describe how these activities successfully reinforce content
(Mariani, 2007), promote increased engagement (Endersby & Webber , 1995), and foster
and interactions among institutional actors” (Smith & Boyer, 1996). These exercises
can be utilized to increase student participation and engagement with course material
(Wallin, 2005). These activities are used to enhance teaching and learning in a number of
content areas including international relations (Asal & Blake, 2006; Kanner, 2007;
Raymond & Sorenson, 2008;Shellman & Turan, 2006), budgets (Taylor, 2011; Wallin,
2005), legislative settings (Baranowski, 2006; Frederking, 2005; Rackaway & Goertzen,
2008), and elections (Caruson, 2005; Mariani, 2007). Generating student enthusiasm
around the topic of budgeting can be difficult. Courses on public budgeting often attract
different students than those who are interested in specific policy topics. Putting students
in the midst of a budget cycle can be one way to make this process real (Kanner,
2007). Seek to overcome the difficulty of teaching Congress (Sands & Shelton, 2010),
and others explore the use of similar approaches in teaching other political and
governmental processes, aside from Taylor, there are few references for those seeking to
governance. There is similarly a paucity of examples where simulations have been used
described in this article is the utility of these approaches in giving students opportunities
to directly apply theory (Kanner, 2007), to enhance their understanding of course material
2006). Students are also challenged and caused to explore differing perspectives when
they “put on the skin” of another by taking on a different role than they might be
students from a range of disciplines outside of political science, is the ability “to make
interesting what can otherwise seem a very dull topic” (Wallin, 2005). While the political
activities, our experience as colleagues from political science and education in team-
teaching the Education Politics and Policy course highlighted the integration of
perspectives and approaches represented by the literature from education. The field of
education has long promoted active learning, often referred to as experiential learning
(Burns, 2007; Kohn, 2010; Ohanian, 2005). The idea behind this approach is that learners
are not sponges, passively taking in information by listening or reading, but need to make
sense of the material by actively engaging in it. Another trend prominent in the field of
education is that the syllabi must include measurable, observable learning outcomes.
Through articulating the learner outcomes, active learning naturally shapes the course
activities (Garry, 1995; Trigwell & Prosser, 1991). For example, “students will
understand the budget process” may not yield the same type of class activities as
would “students will analyze competing interests in balancing the school district budget.”
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The former objective could be delivered through lecture and measured through exams,
while the latter would probably require some hands-on experience with competing
interests (what they are, how they operate, how they negotiate issue positions and/or
coalesce). In sum, when it comes to the use of simulations and role-playing, the education
and political science pedagogical literatures have significant similarities. The more
knowledge students have about their financial responsibility and status the less likely they
are to be in debt (Norvilitis, 2006). In “Borrowing against the Future: Practices, attitudes
finds college students tend not to have a budget or calculate credit card bills based on
their actual spending. For example, there was a significant amount of students that did
not know their SES or how much they would owe in student loans when they graduate
(Micomonaco, 2003). Also, only 36% of students with credit cards reported paying off
their credit cards bills monthly (Norvilitis, 2006). Although, students are concerned
about their future financial status; 67% of freshmen at academy or universities have
concerns about paying their tuition. This is the highest amount of concern expressed in
There are many groups of students that accumulate and perceive debt differently,
for example, how they used credit cards. Women are more likely to report having a
budget then men (Norvilitis, 2006), but women more frequently accumulate higher
amount credit card debt and total debt (Micomonaco, 2003). Also, majority students
perceive themselves as more in control of their finances than minority students perceive
Some variables did not show differences in the accumulation of debt but perceptions
varied among groups. Demographics variables, GPA, and number of hours worked did
not play a role in the amount of debt acquired but, students with a higher GPA and/or
those who worked more were more worried about their financial status (Norvilitis, 2006).
spending the cash usage. Though it is not something we are born with, they are acquired
over one’s lifetime through many successes and some failures as well. “An allowance is
not an entitlement or a salary. It is a tool for teaching children how to manage money.”
(Godfrey, 2013) Allowance is an amount of money given. It is a need for teenagers where
The manner in which students manage their money is based on several factors
such as age, personality traits, and knowledge. These factors form the basis for the
managing money is the maintenance of a financial budget (Kidwella & Turrisi, 2004).
Budgeting can be defined as the allocation of part or all of a person's total financial
resources into distinct categories in order to plan and control expenses against a tangible
monetary forecast. This definition relies on the assumption that funds are depleted on
expenses thus making future purchases less likely. In this regard budgeting can be viewed
outcomes such as debt accumulation (Norvilitis, 2006; Loibla, 2011). Spending usually
involves the use of money to acquire what an individual desires or wishes to own.
from over a half century of experience with U.S. antitrust regulation. Porter introduced a
more rigorous methodology and shifted the focus of strategic analysis largely from the
positioning, discussed in more detail below, introduced into strategic analysis a new level
of analytical rigor. It also has afforded a clear target for its critics (Michael porter, 1980).
Kontes & Mankins attempts to integrate such financial criteria into management
Strategy as a management discipline is not one thing. Nor is there one way to go
about formulating strategy. Rather, as the previous discussion suggests, strategy is multi-
dimensional. These various dimension often pull in divergent, if not opposite, directions.
Not only are these issues subject to different definitions, interpretations and responses,
they also are inextricably woven together “wicked problem” (Rittel, 1972)
thinking and provides a clear rationale for the allocation of assets. However, its value is
necessarily encumbered by its limited foresight on the course of future events and its
ambiguous insight into appropriate courses of action. It also tends to overlook the power-
behavioral factors within firms- typical of turf battles and the not-invented-here (NIH)
syndrome- that often determine strategic decisions and are often crucial to strategic
success.
There real limits, therefore, to rationality and the quantification of data as well as
on the time and resources available for strategic planning. One response is to abandon the
17
ideal of reaching an optimal decision from among all possible alternatives in favor of
identifying a satisfactory choice from among a much more limited array of options.
employers or the government to individuals themselves demand the need for educated
consumers (Hogarth, 2002). Other trends requiring attention include teenagers having no
positive financial role models and immigrants who need to learn about the financial
market (Hogarth, 2003). Hogarth also explains why she feels financial education is
important when she states, "Informed consumers provide the checks and balances that
education (Hira, 2002). Four in ten Americans admit they are living beyond their means
due to their misuse of credit (United States Department of the Treasury Office of
Financial Education, 1992). Unfortunately, this shows that consumers are not acting in a
financially responsible manner. The need for financial education is for individuals of all
socioeconomic status levels, ages, and races. Family financial failure has great
consequences at the individual, family and community levels (Hira, 2002). Furthermore,
stressful situations and financial problems (Hira, 2002). Financial education will not
solve these perennial problems; however, it does have the possibility of reducing the
Many consumers themselves feel they are in need of financial education as well.
Evidence can be seen through responses in surveys, such as the National Association of
Securities Dealers (NASD) investor literacy survey (2003), indicating an expressed need
for personal finance education. Individuals' poor money management practices point
toward the possibility they are also in need of personal finance education. Ninety-seven
percent of respondents to the NASD investor literacy survey responded it was very
important to increase their investment knowledge (NASD, 2003). The same survey also
reported that almost half of the respondents said that a negative market experience could
have been avoided had they known more about investing at the time. A survey found that
only 27% of respondents felt very well informed about managing household finances
(Boston, 2003). When researchers are finding that less than half of their research
participants have retirement accounts, but 80% have a credit card, it is clear that
Other research studies point toward the need for personal financial education as
well (Hira, 2002; Hogarth, 2003; Lown, n.d ). One such study evaluated a workplace
personal financial education seminar upon its completion (Kim, Bagwell & Garman,
1998). Survey results showed overall participant satisfaction with the seminar.
behaviors and they indicated they wanted future financial education. The results of this
study support the need and desire of those participants for financial education. Because
this survey was administered immediately following the seminar completion, it is not
Perhaps the most important reason for educating consumers about money matters
researcher Jean Lown from Utah State University interviewed fifteen women ranging
from age 24 to 63 to identify their healthy financial behaviors. The most common healthy
financial behaviors participants mentioned were paying credit card balances in full each
month and having money automatically deducted from their paychecks and put into
savings or some investment vehicle. Being free of debt provided them with a sense of
pleasure (Lown, n.d ). Lastly, Lown found that women who had their finances under
control could focus more on what was important to them in life such as their families.
Former Federal Reserve Chairman Alan Greenspan stated that learning the basics
of personal finance at a young age can help avoid poor financial decisions later in life
(Ezarik, 2001). Thirty-one states include personal finance in their curriculum, which had
dropped from 40 states in 2002 (Aspen Publishers Inc., 2003). Reasons for the stated
decrease in including personal finance standards may be attributed to the recent focus
given to reading and math in the No Child Left behind Act. This leaves little time for
elective subjects such as personal finance. Financial education in high schools should not
be delayed. This is why I suggest incorporating personal finance education into the
family and consumer sciences curriculum in high schools. I will discuss this at length
financial knowledge and a state mandate in personal financial education (Tennyson &
Nguyen, 2001). This would lead one to believe that implementing a financial curriculum
20
between financial curriculum mandates and higher savings rates (Bemheim, Garrett &
Maki, 1997). A major difference between the two studies is that Tennyson and Nguyen
(2001) studied high school students and Bernheim, Garrett, and Maki (1997) studied
adults who were between the ages of 30 and 49. Another inconsistency in the studies is
that Tennyson and Nguyen (2001) studied knowledge levels and Bemheim, Garrett, and
Maki (1997) studied behaviors. Comparative results suggest the effects of a personal
finance curriculum in high school may have more long term effects.
Tennyson and Nguyen's study (2001) was conducted to assess the financial
literacy level of students in twelfth grade in the United States. The test consisted of 31
facts, and terminology (2001). The authors found that a general financial curriculum
mandate in a state does not translate into higher student scores on a financial knowledge
survey. They report that, "mandating personal finance education may be effective in
increasing student knowledge, but only if the mandate requires significant exposure to
personal finance concepts" (2001). Therefore, specific topics such as savings, spending,
investing, and debt should be included in the curriculum if financial knowledge levels are
to be increased. They also stated that the results may relate to how the mandate is
implemented in each state. The study also found that teacher attitude towards the subject
was directly related to student learning and that teacher attitudes were more negative in
States have any effect on the education and savings of individuals who had been exposed
21
to mandates in high school (Bernheim, Garrett & Maki, 1997). Their analysis was based
2,000 participants between the ages of 30 and 49 completed the survey. Information
gathered included household assets and liabilities, earnings of participant and spouse,
employment status, ethnic group, and education as well as other subjects. Research
participants were also asked to identify the state in which they attended high school.
Results are based on comparisons across states and over time. States which did not adopt
a mandate were used as a benchmark. At the time of the study, 29 states required students
the area of personal finance. The first mandate was issued by Nevada in 1957 and most
other states had adopted mandates by the 1970s (Bernheim, Garrett & Maki, 1997). This
study's conclusions were that mandates significantly raised both the exposure to financial
education as well as asset accumulation once exposed students became adults. Net worth
for participants exposed to a mandate was higher by approximately one year's earnings
than for participants who had not been exposed to a mandate in high school. The effect of
individuals who were exposed to a mandate having a higher net worth appear to have
occurred gradually rather than immediately. The authors attribute the gradual rather than
Maki, 1997).
Parental involvement Parents also feel there is a need for personal finance
education for their children. However, some parents feel uneasy about teaching their
Implementing personal finance courses in schools would ease the burden of some parents
source. The annual back-to-school survey from Visa (2004) found that 56% of parents
believe high school graduates are totally unprepared to manage their personal finances
responsibly. Parents and teachers should collaborate to ensure their children receive an
Teenagers are not gaining financial knowledge at home (Mosser, 2005). However, even
though teenagers may not be learning the knowledge and skills needed to succeed
financially in their home, the home is still a teenager's primary source for learning about
money (Jumpstart Coalition for Personal Financial Literacy, 2005). The 2004 Jumpstart
Coalition for Personal Financial Literacy survey reported parental involvement played a
major role in the financial education of 58.3% of the research participants. Almost 20%
said they learn money management skills at school and 17.6% from experience. It is
important for parents to teach their children about money matters. However, more
important than talking with young people about money is for parents to act as financial
role models. A common parental method used for teaching children about personal
regular allowance scored worse on the Jumpstart Survey than students who did not
receive an allowance (Mandell, 2001). Reinforcing values linking money to work can be
Historically, there has been no obvious subject area or teacher that should be
teaching personal finance courses (Morton, 2005). This leads to some confusion about
personal finance courses in high schools because it does not have a universally
23
recognized home in the curriculum. In some schools, personal finance is included in the
researcher suggests incorporating personal finance courses into the family and consumer
sciences curriculum of high schools. Content standard 2.6 in the Consumer and Family
to meet the goals of individuals and families across the life span" (National Standards for
Family and Consumer Sciences Education, 2006). Personal finance should be taught by
topics such as resource management, investing for goals, and the psychological effects of
Research has shown that well-informed financially educated consumers are able
to make wiser decisions for their families (Hilgert & Hogarth, 2003). They have also
come to the conclusion that financially secure families are better able to contribute to a
education helps to strengthen the family and community, which is the core of the mission
of family and consumer sciences. Hogarth (2003) recommends family and consumer
organizations, faith-based organizations and community groups to help bridge the gap
between the need for programs and the key audiences. The gap also needs to be bridged
Evidence shows that there is a great need for teaching teenagers about personal
finance topics. Family and consumer sciences have been an evolutionary field. The
evolving nature of the profession can be seen through the inclusion of a 40% male
24
population in some FCS courses in what used to be seen as a traditionally female area
(Blassingame, 1999). The reality of the family is changing and with it, family and
Another reason for including personal finance education in family and consumer
sciences courses is because FCS educators deal with sensitive human issues on a daily
basis. The emphasis in personal financial education in economics and business is based
financially pay a steep price that comes in the form of stress and possible humiliation,
thus impacting the family (United States Department of the Treasury, 2002). Family
financial management can be viewed through different lenses, many of which relate to
One human issue that could be discussed in a personal finance course is how
males and females differ financially. For example, women are more likely than men to be
in charge of their family's finances (Hira, 2006). Also, women believe investing is
stressful and time-consuming, while men describe investing as being exciting (Hira,
2006). Family and consumer sciences educators teaching personal finances courses could
take issues such as gender into consideration when teaching about financial issues.
Topics such as this would have the potential to lead to lively classroom discussions and
Family and consumer sciences teacher education programs around the nation are
leads to an FCS teacher shortage. In 1984, there were 284 FCS teacher education
programs reported nationwide. By 1995, only 171 of the same programs existed,
25
indicating a 40% decrease during that time period (American Vocational Association,
showed that 74% of respondents "strongly agree" there is a national crisis in the supply of
financial education in the schools. Morton (2005) stated, "Although everyone endorses it
[personal finance], few educators [general educators] take responsibility for making
personal finance education a priority, and efforts thus are diffused." Family and consumer
sciences educators graduating from some universities such as Iowa State University are
required to take personal finance courses and would not require additional training.
American and Bermudian school administrators and policymakers should take advantage
of FCS educators who may be willing and able to teach personal finance as part of their
curriculum.
not necessarily about expenses. Most teens will usually have one or two sources of
income, either allowance from their parents or from their job (Felipe, 2007). The manner
in which students manage their money is based on several factors such as age, personality
traits, and knowledge (Norvilitis, 2006). It clearly states that students are very different
with each other, even though they are having the same amount of allowance, their
Over longer periods, consumption will gradually regain the long-run relationship
with income (Pollock, 1999). 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., 2012).
Budget is a financial plan that lists expected expenses and income during a particular
period1 People saved diligently for major purchases keeping plenty of funds
for unforeseen emergencies (Ritzer, 199). 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 in control of their finances
the most important factor to consider in keeping allowance and expenses balanced with
each other.
consequently its execution (Shah & Robinson, 2007; Drake & Fabozzi, 2010). It is one of
the most successful and useful management accounting techniques that can reap
sufficient financial aid, students increasingly turn to loans and credit cards (Long, B.,
2009).
three mechanisms. Under mimetic diffusion, organizations adopt budgets because they
observe that other groups become more financially confident and successful with a
As budgeting became more popular, there were coercive pressures to adopt budgets.
Stockholders who demand sound financial management may expect yearly budgets for
is taught in every business school. Budgets have also become a "rational myth" for
ceremonial (Rowan, 1977). Budgets necessary for legitimacy can be de-coupled from
organization in Kenya. The aim of the study was to establish effectiveness of budgeting
practices among British NGO‟s in Kenya. The research looked at the concept from a
different point of view and found that most organization used modern practices as zero
based and philosophies to reduce financial management. The researcher observed that
there is a limitation on budgeting process which leads to cost cutting to achieve cost
effectiveness there is lack of solid based to enforce budgeting controls as a motivator and
concluded that although profit was the main indicator of performance in public sector,
policies. The researcher concluded that budgeting is well accepted in evaluation and
generally used to communicate plans and operations. (Melek, 2007) did a study on the
commitment. He conducted a study on the top 500 firms in Turkey the results of this
study suggested that the effects of budget participation and organizational commitment
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by itself on managerial performance are positive and significant second this study found
out that the managerial performance scores were found to increase when the interaction
provides appropriate condition, for high managerial performance. However, the results
in firms can lead to increase in their performance, low organizational commitment feeling
of subordinates can lead to decreasing in their performance. Similarly the study supported
the hypothesis that interaction score between budget participation and organizational
commitment varies according to low and high managerial performance. As to this, while
associated with high managerial performance, low interaction score between budget
commercial airlines operating at Wilson Airport, Nairobi indicated that the challenges
faced were budget evaluation deficiencies, lack of full participation of all individuals in
the preparation of the budget and lack of top management support. He further concludes
that airlines operate and use budgets to plan implement and evaluate their business
performance. All enterprises make plans using budgets some in a systematic and formal
way, while others in an informal manner but still have some form of budgetary control
Therefore the issue is not whether to prepare a budget but rather how to do it
security fund (NSSF). The aim of the study was to establish the challenges of budgeting
process and the challenges faced when drawing up a budget to be used by an organization
and how organization can effectively face the budgeting challenges. The population
constituted nine (9) board of directors and sixteen (16) senior managers at NSSF who
were concerned with budgeting issues at the organization. The researcher collected data
collection. From the study the researcher found that the organization faced challenges
when drawing up budget and the biggest included on commitment, various head of
department did not take budget seriously leading to giving ambitious budgets which
would end up not achieving target, leading to complaints from the board. The researcher
concluded that budgeting was very effective at NSSF as they served their purpose
of department. The researcher added that the process of budgeting at NSSF faced some
challenges which were inability to achieve the required value of business inadequate
authority to spend despite allocation, cost inflation, poor participation and poor co-
ordination of the exercise. The researcher recommends that all units in the organization
should be involved in the budget preparation and enough time is allocated to prepare.
(Otley, 1978) did a study on budget use as a measure of managerial performance. He did
Kingdom. The individual production units were largely independent on each other.
Therefore, the unit of analysis was the individual unit manager who was responsible to
the group manager for the production of their units. His findings were that there is a
30
positive relationship between budget use in evaluating mangers and their level of
performance unlike (Hop-wood, 1972) he noted little evidence to indicate that any
particular style of budget use affected actual performance although this is a most elusive
relationship to capture in a field study, But it was found that there were considerable,
interaction and long-term unit profitability. A situation had evolved where profitable
units produced accurate budgets which were subsequently used as a basis for evaluation;
whereas unprofitable units produced optimistic budgets which gave the impression &
profitability, but which were not then used in evaluating unit and managerial
performance. (Hop-wood, 1972) had done a previous study to determine what effects
that one important dimension of budget use is the relative importance attached to the
budgeted that one important dimension of budget use is the relative importance attached
primarily upon whether or not a manager has met his budget, was found to result in the
belief that the evaluation was unjust, in wide-spread tension and worry on the job and in
feelings of distract and dissatisfaction with the superior using the 25 style managers
evaluated in this rigid manner were also found to manipulate accounting data to improve
their reported performance and to make decisions detrimental to the long-term wellbeing
of the organization. However when a more flexible style of evaluation was adopted with
budget information being used in conjunction with other sources of information, concern
with long-term economic performance was maintained but fewer dysfunctional side
effects were observed. However, Hopwood’s emphasis was primarily on the effect that
budget use has on manager’s beliefs and feelings and not with the overall effectiveness of
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evaluated under different styles met their budgets he was able to conclude that this was
likely that the tensions and manipulations noted under the rigid style of evaluation caused
present a paper titled Budgetary and management control practices (budget being the tool
for management control in Guinness Nigeria plc “The study was described based on a
qualitative approach in data collection (primary data) research purpose, data analysis as
well as critiques to the method use. A sample of 50 respondents was used. The research
conclusion was that budgets could facilitate the creating and sustaining of competitive
participation and performance. New identities are some variables which are effective on
There are two important studies examining national culture variable that was categorized
in the first category by Brownell. Norway culture based study of (Lau and Buckland,
2000). (Tsui, 2001) study based on China and Caucasian cultures points that the
more specifically, he put forward the observation that the relationship between
participation but positive for Caucasian managers past studies consider organizational
school students before they graduate. A budget is clearly the key to succeeding
financially. Students think that a way to pay for college is student loans, but there are
other options like scholarships, financial aid or work options. Some can take investing
classes where students can learn the process of investing and budgeting.. Most people
recommend parents to have a long-term planning for their teen. (Caldwell, 2017) Parents
can teach their children money management where they can set up a personal savings
account for their teen. These guardians can explain to teens how managing money is very
Chapter 3
METHODOLOGY
This chapter included research design, research participants, role of the researcher, data
sources, data collection procedure, data analysis, trustworthiness of the study and ethical
consideration that the researcher used during the entire conduction of the study.
Research Design
a lived experience within a particular group. The fundamental goal of the approach is to
arrive at a description of the nature of the particular phenomenon (Creswell, 2013). Other
forms of data such as documents, observations and art may also be used. The data is then
read and reread and culled for like phrases and themes that are then grouped to form
Study on Budgeting among Senior High School Students was conducted to know the
ways of budgeting of the Senior High School students in Davao City National High
School.
In this study, we will invite twenty (20) students from senior high school who
have difficulties on budgeting their allowances. These students will serve as the
participants of this research study. They were provided with an informed consent before
we conducted the interview or the gathering of data through Focus Group Discussion
34
where the participants were asked to answer flexible questions. Transcribing the recorded
Research Participants
We invite a total of twenty (20) participants for this study. All of them are
included in our Focus Group Discussion. The number of our participants is sufficient
since we will be dividing the twenty (20) participants into two (2) groups. It is also
recommended that a few extra participants be recruited for each focus group, in case
there are no-shows (Gibbs, 1997 and Stewart et. al., 2007).
All the participants of this study were suitably selected and were only willing to
openly and honestly share information or “their story” (Creswell, 2007). These
participants were enrolled in the Davao City National High School of the Senior High
Data Sources
The sources of the data are coming from the answers of the participants. The
researchers will only depend on the answer of the participants on the questions given by
the researchers.
In gathering the data, the researcher was the primary instrument. However, in
gathering the data the research undergoes the following procedures that would be helpful
in the study.
In the data collection, the main procedure that is closely related which associated
by a qualitative research is the In-Depth Interview (Englander, 2012). The purpose of the
35
In-Depth Interview is to encourage talking in depth with the participants about the topic
under investigation without the researcher’s use of predetermined, focused and short-
answer questions. Given (2008) was used to elicit information in order to achieve a
asking informants open-ended questions, and probing wherever necessary to obtain data
Data Analysis
to describe and illustrate, condense and recap, and evaluate data (Shamoo and Resnik,
2003). Robson (2011) also offers an equally important view on analysis and
interpretation of data, when he suggests that the process and products of analysis provide
the bases for the interpretation and analysis. This study was followed Creswell (2005),
Stake (1995) and Yin’s (2003) models of data analysis, by which we analyze the data by
both direct interpretation and aggregation of instances in the form of codes. As Stake
(1995) says, “some issues call for categorical analysis, while others may only occur one
with all the documents we gathered. During this period in the analysis, we listened
carefully to the audio recorded in our phones; moreover the written notes were read
through and analyzed them carefully. After gaining familiarity with the documents and
searching for general ideas, coding was completed with an eye for both descriptive and
thematic data (Creswell, 1995). Meaning, we transcribed the data that we have gathered
36
and set a code that is appropriate to the data and grouped the significant codes into
We have interpreted the definitions to reflect the individuals ' lived experiences.
After that, we conceptualized a summary of the meanings as well as the nature of the
The researchers assure that the result of this study will not be biased on the
participants. The results are based on the participants’ responds and not on the personal
motive of the researchers. Also, it is dependable since it provides the truth and not the
biased results.
Ethical Consideration
In this study, we made sure to follow the ethical considerations throughout the
whole process. We assured that our participants were well-informed about the purpose of
the research they were being asked to participate. We gathered our participants and gave
them an informed consent, to let them know about their voluntary participation in the
study, guarantee of full confidentiality of responses and convenient schedule that will not
We’ll also ensure that their identity would not be revealed nor exposed in our
Moreover, we let our Practical Research teacher validate the guide questions in
the interview to confirm that only relevant, significant, and culture-sensitive questions
that will be asked to the participants. It is to make sure that the participants will not be
37
endamaged in any ways. In addition, before we start the actual interview, we must remind
the participants that they are entitled to refuse to answer uncomfortable questions or to
We also inform the participants that the result of the study benefit them for they
are also experiencing the difficulties of budgeting the allowance. Better understanding
how to budget the allowance efficiently can affect them might inspire and help them
improve in any way. We also provided our participants with a snack and made sure they
were familiar with the location we were going to meet. In addition, we informed our
participants that for research purposes only the recorded audio and pictures were used.
We also showed them the transcribed data to check that their answers were correct.
Ultimately, with the use of the American Psychological Association (APA) model, we
have correctly cited and referenced scholars from whom insights and points of view have
been integrated.