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Budgeting Strategies of The Accountancy, Business and Management (ABM) Students: A Comparative Study
Budgeting Strategies of The Accountancy, Business and Management (ABM) Students: A Comparative Study
Balagbagan, Godwin V., Tacderas, Leinz Bryle R., Alvarado, Patricia Nicole G.,
[email protected] [email protected] [email protected]
Faryao, Genevieve F., Lactao, Morella Kristina C., Magno, Bethany B., Ofanda, Jezreel P.
[email protected] [email protected] [email protected] [email protected]
University of the Cordilleras Senior High School
Abstract: The study is about the budgeting strategies of Accountancy, Business and Management
(ABM) students of the University of the Cordilleras Senior High School, it is to identify the common
budgeting strategies and budgeting awareness of the ABM students and to also differentiate the
difference of the grade 11 to the grade 12 when it comes to budgeting. The study included a sample
of 184 grade 11 ABM students and 234 grade 12 students who were randomly selected with the use
of stratified random sampling. As a tool of collecting data, checklists were prepared in accordance
to the research objectives. The content validity of the checklist was also verified by teachers who
are experts in the field. From the viewpoint of the respondents, the students’ common budgeting
strategy for both grade 11 and grade 12 ABM students is that they over-estimate purchases to
ensure that the students have enough money and the budgeting awareness of the grade 11 is that
they think of savings while for the grade 12, budgeting serves as a practice for them in the future.
The difference of the grade 11 to the grade 12 students which has the highest rank is that for the
grade 11 they think of savings and they also compare prices before buying, for the grade 12,
budgeting serves as a practice for them in the future and they also compare prices before buying.
Keywords: daily allowance, expenses, lifestyle, independent, Senior High School students
I. INTRODUCTION
Allowance or "baon" is part of the daily activity Budgeting is a systematic plan that can help
of every student. Allowance is the amount of students to attain a better savings and can help
something used for a particular purpose, which them to discipline themselves (Longa, Quijano
is given by their parents. Money plays a vital & Vergara, 2017). They furthermore added that
role in every person's life. It is used to pay a budgeting is not only to help students to
person's expense or to buy goods and materials discipline their way of spending but to also help
that are necessary in life. In fact, all people have them in their future especially when it comes to
their own ways to spend, budget and save their emergency needs. Also, students will not have a
money. According to Bermejo, Cabaya, hard time looking for money instead they
Malones, and Sales (2019), budgeting is the already have a savings where they can get
process of creating a plan on how to spend your money.
money wisely. They also said that this allows the
students to determine in advance whether they Budgeting is a good practice to high schoolers,
will have enough money to do the things they since they will be entering another kind of
need to do or would like to do and it also ensures environment as we enter college life. They have
that the students will always have enough money to be more knowledgeable on how to save and
for the things they need. spend their money wisely. They have to know
the difference of wants and needs. Budgeting is
Balagbagan, Tacderas, Alvarado, Faryao, Lactao, Magno, Ofanda
important to students because as they budget, becomes very challenging for students to
they can save up some money for them to be manage their money. It is indeed a challenge for
able to buy the things they need or want. students to budget their money because of the
Budgeting money is a very important matter, different expenses they face on a daily basis.
this will help them for their future expenses. Learning how to budget is one of the greatest
investments anyone can make at an early age.
Budgeting has a wide range of usage and is the This is because as you grow older, the more
most common systematic procedure in order to responsibility you will receive. A person will
build up a better savings for the future (Longa, need to focus his or her attention more on many
Quijano & Vergara, 2017). Having knowledge things other than money.
about the importance of budgeting will help
students to discipline themselves. As young as According to Marsha (as cited in Oloba, 2011),
they are, students must make it a habit to budget many people consider the attainment of personal
their money, so that it will not be hard for them effects as a principal focus in their lives. These
when they grow up at least they already have a are the type of people who willingly make
savings. Moreover, it will help students to lessen outsized sacrifices to acquire sought after stuff
their expenses and help them to think carefully and possessions. Additionally, they dedicate
whether they need to buy that certain stuff. considerable time to planning key future
Listing the expenses and buying the necessary purchases and visualizing future spending
things (food, house needs, and personal hygiene) outcomes.
are a good way to control a person’s money.
Budgeting is hard for students because they need Some students who are really dedicated in
to finance for their school requirements since budgeting wherein they really set aside money
some of them are working students and some get immediately before spending. They are used to it
their money for expenses from their monthly and they know how to buy things the right way
allowance. such as comparing the prices first before buying.
They plan ahead for the future which is a good
Tappa, Wico, Belaxi, Abbariao and Caya (2015), habit. According to Marthen (2011), sometimes,
stated that budgeting is an important component students do not want to be left behind that is
of financial success. They also said that it is not why they also want to follow other people's
difficult to implement, and it is not just for lifestyle. He also stated that some of them are
people with limited money. Also, budgeting independent enough since they live apart from
makes it easier for people with incomes and their family and they are responsible enough to
expenses of all sizes to make conscious budget and save their money. These are the
decisions about how they prefer to allocate their common problems certain students face from
money, and it can also help people save for their environment, this states that they cannot
emergencies or just about anything. Students in control how they spend their money on
the secondary level face a lot of expenses for unnecessary things. Most of the students just go
food, school supplies, school fees, transportation with the flow that is why their expenses are very
fair, school projects, and other school expenses. high because of the pricey things they want.
But when students learn to budget their Some students tend to live an impractical
allowance, they can make the right decisions lifestyle by buying things just to improve their
when it comes to spending it, whether it is on the social life. In the generation today, trendy things
satisfaction of their needs and wants. are worn by numerous teens and some feel like
they are left behind when they do not have that
Inamac, as cited by Alfeche, Dagondon, kind of clothing. A lot of students live away
Macagaan and Sarip (2018) said that budgeting from their family and with that, sometimes they
is one of the practical skills that come in useful cannot control themselves from being an
for them. In addition, he stated that with impulsive buyer. But not all students who live
escalating responsibilities and opportunities as apart from their family are responsible enough in
they go towards higher level of education, it handling their allowances which leads them to
debt to other people which is not a good. This is world and as a part of their daily practices. Also,
a wrong habit especially to the teens because to the parents, this study enables them to have a
they have to learn how to budget because time deeper understanding of their children who
will come that they would be needing money encounter the issues of financial independence in
and will have no choice but to borrow. their life. And they could control the inflow and
outflow of the money of their children. Another
Many people think of budgeting as something to is for the future researchers, in able for them to
do when they are short on cash. The truth is that have background knowledge about the
budgeting is not just for times when the money budgeting strategies of the ABM Senior High
is tight or a person's life is undergoing a major School students. Moreover, they can continue
transition (Tappa, Wico, Belaxi, Abbariao & this research in order to see if there will be any
Caya, 2015). Budgeting should not be an option changes as time passes by.
whether to save or to spend, it should be
accustomed to, whether that person has enough This study aimed to determine the budgeting
money, he or she needs to know budgeting so habits of the grade 11 and grade 12 ABM
that the person being used to it will have a better students. Specifically, this study answered the
savings in the future which will help that person following questions:
out of debt. Having knowledge on how to budget 1. What are the common budgeting
will give a big impact to their lives. Students can strategies and budgeting awareness of the grade
make budgeting a habit so it will help the them 11 and grade 12 ABM students?
grow having a matured mindset that can help 2. What is the difference between the
them to lessen their expenses. Setting a goal can grade 11 and grade 12 ABM students when it
be an advantage for students to start and learn comes to budgeting?
how hard budgeting can be but if it is practiced
regularly it will be easier.
II. MATERIALS AND METHODS an idea of how large the sample size needs to be,
Approach, Design and Methodology to ensure a reasonable accuracy of results. With
This research is a quantitative research upon the Slovin’s formula, the researchers used 5% as
conducting the study in order to determine the their margin of error having 324 students as the
budgeting strategies of the ABM students. total population for the grade 11 and 520
Quantitative research is defined as a systematic students for the grade 12 ABM students.
investigation of phenomena by gathering
quantifiable data and performing statistical With the consideration of the study’s feasibility,
techniques (Lavrakas, 2011). This gathers from the researchers used stratified random sampling
existing and potential customers using sampling under the probability sampling as their sampling
methods and giving of checklist. This study used technique to identify the sample size which was
correlational research design. Conventionally, used as a representative of the whole population.
comparative study emphasized on the Stratified random sampling is a method of
“explanation of differences, and the explanation sampling that involves the division of a
of similarities.” This helps to establish population into smaller sub-groups known as
relationships between two or more phenomena strata. In stratified random sampling or
and provide valid reasons. Comparisons are now stratification, the strata are formed based on
carried out on various levels being regional, members’ shared attributes or characteristics
national or wider geographical boundaries based such as age, gender or education (Hayes, 2019).
on specific subject or area of interest (Azarian, Using the stratified random sampling, the
as cited by Adiyia & William in 2011). researchers needed 23 respondents each from the
8 sections of the grade 11 and 18 respondents
The researcher used comparative research design each from the 13 sections of the grade 12.
to measure two variables which are the grade 11 Hence, the sample size of the said respondents
students and grade 12 students to understand and was grouped according to their sections.
assess the relationship between them in terms of
their budgeting strategies and as well as the Data Gathering Instrument
similarities and differences in both variables. The researcher used checklist as their data
gathering instrument in order to answer
Subject Selection and Sampling Procedures the specific problems of the study. The data
This study contained both grade 11 and grade 12 gathering instrument is a 20-item checklist. The
students taking up the Accountancy, Business said checklist was patterned from “Spending
and Management (ABM) strand who receives an Behavior of Management Students” by Abawag,
allowance ranging from ₱50 and above daily. Ancheta, Domingo, Rabina, Saclote, and
Since the study is comparative, the researchers Taguinod in 2019. This data gathering
compared the spending habits of the grade 11 instrument is composed of two parts. The first
with the grade 12 students. Since students are part talks about the budgeting strategies of the
prone of spending their money on the things students which answers the first statement of the
they want and in the things that they need. This problem which will determine the common
study covers on the spending habits of the ABM budgeting strategies and budgeting awareness do
students and as well as the differences and the ABM students make to manage their
similarities of both groups. The results can be budgeting strategies wisely. On the other hand,
used as their guidance to learn and understand the second part talks about the money
the importance of knowing about the right way expenditures which answers the second
of spending. And also, as a preparation for them statement of the problem which is to see the
to enter new campus life later on. differences between the grade 11 with the grade
12 students when it comes to budgeting.
To get the sample size, the researchers used the
Slovin’s formula which allows the researchers to Data Gathering Procedure
sample the population with a desired degree of The researchers made a validation letter to
accuracy. Slovin’s formula gives the researcher English teachers and ABM teacher to validate
our questionnaire to know if it is credible before unavailability, some journals are restricted since
floating their questionnaires. The researchers it is required to login and some requires
also made an approval letter to float their payments in order to access the published
checklist which was signed and approved by articles.
their adviser and for the principal of the Senior
High School Department of the University of the Analysis of the Findings
Cordilleras was informed about the research that The researchers used frequency and percentage
they conducted. After the principal and the in order to analyze the data gathered. It is
adviser signed it for approval, the researchers particularly useful method of expressing the
started surveying some grade 11 and grade 12 relative frequency of survey responses and other
ABM students from the University of the data. Many times, percentage frequency
Cordilleras using their checklist by making sure distributions are displayed as tables, bar graphs
that all terms and concepts in the data gathering or pie charts.
instrument are clarified for the respondents.
After conducting the survey, the researchers The process of creating a percentage frequency
made sure that all the questions were answered. distribution involves, first, identifying the total
After the survey, the researchers gave gratitude number of observations to be represented, then
to the participants for his/her time and counting the total number of observations within
participation. Lastly, the researchers checked, each data point or grouping of data points, and
tallied, evaluated and analyzed the data gathered. then dividing the number of observations within
each data point or grouping of data points by the
Limitations of the Study total number of observations.
This study included the population profile
included in the scope of this study is limited to Ethics of Research
the Senior High School students who are The researchers respect and protect the privacy
currently enrolled for the Academic Year 2019- and dignity of the respondents. They presented
2020 at the University of the Cordilleras in the findings objectively and honestly. And all
Baguio City which counts both grade 11 and other literature was acknowledged properly. As
grade 12 students taking up the Accountancy, well as the objectivity and integrity since the
Business and Management (ABM) strand. This researchers did not edit the answers and let it
study discussed about the importance of stay as it is stated by the interviewee to prevent
budgeting to the ABM Senior High School being biased. Also, in presenting the research
students who are currently enrolled at the findings, the researchers knew their target
University of the Cordilleras. Moreover, it audience in advance and to include
shows the different strategies of students in recommendations that are actionable in order to
budgeting which will give lesson and benefits to help the audience in every way. It must be
other people. This study is only limited to the specific, simple and clear to avoid
Accountancy, Business and Management misunderstandings towards the research itself
(ABM) strand since they are the ones who have and the audience.
specialized subjects related to this topic and the
researchers will compare the grade 11 with the
grade 12 level.
RESULTS AND DISCUSSION highest rank for the grade 11, while for the
The table below shows the daily allowances grade 12 students, the indicator 8 has the
of both the grade 11 and grade 12 ABM highest rank for their budgeting awareness.
students. This implies that the grade 11 students think
of savings as their budgeting awareness,
Daily Allowance of the Grade 11 and while for the grade 12 students, budgeting
Grade 12 Accountancy, Business and serves as a practice for them in the future.
Management (ABM) Students
The results show that the common budgeting
Daily Grade 11 Grade 12 strategies for both grade 11 and grade 12
allowance ABM students which gets the highest rank is
₱50 – ₱100 64 85 students that the students do overestimate purchases.
students The Federal Student Aid (2019), stated that
₱101 – ₱150 82 85 students it is better to overestimate the expenses and
students then underspend and end up with a surplus.
₱151 and 38 64 students This tells that it is important to overestimate
above students expenses so that the students can avoid
overspending on unnecessary things. It will
Generally, the results show that majority of help students to still have an amount of
the ABM students receive an allowance money to save. In this way, it will help
ranging from ₱101- ₱150. students to practice on overestimating so
that they can live to it and make it as a good
Budgeting Strategies and Budgeting practice to have a better savings. When
Awareness of the ABM students estimating for the whole money, it is better
The table on the next page shows the to overestimate budget for something since
difference of the grade 11 and grade 12 expenses are not stable and has a chance of
ABM students in budgeting strategies and changes from time to time. It will be a big
budgeting awareness. help for the students to overestimate since it
is better to have more excess money rather
Generally, the results show that majority of than having shortage in expenses. This is a
both grade 11 and grade 12 students over- good practice especially nowadays that
estimate purchases as their budgeting things are not stable on its prices. And also,
strategies and the budgeting awareness of it disciplines everyone in a way that the
grade 11 students is that they think of students can control the things that they are
savings while the budgeting awareness of buying by simply spending more on their
grade 12 is that budgeting serves as a wants in life.
practice to their future.
The results also show that students think of
The table shows that indicator 6 has the saving. According to Segal and Welch
highest rank in the first category (budgeting (2019), thinking about savings is not
strategies) for both grade 11 and grade 12 enough; the person should have the intention
ABM students. This implies that both the to do what the person needs to do on his/her
grade 11 and grade 12 students over- money. Even if the person thinks of saving,
estimate purchases to ensure that they have it is still not enough unless he/she will take
enough money. On the other hand, for the proper action to save his/her money rather
budgeting awareness, the indicator 1 has the than only thinking about savings. Nothing
will happen if the person keeps on thinking 175 respondents think of saving and 166
about savings yet he/she will not put into students compare prices before buying. For
action. It is just like making a written budget the grade 12 students, the indicator 8
plan without taking it into action. The plan (budgeting strategies) and the indicator 5
to budget will not be fulfilled if a person (money expenditures) have the highest rank
always spends and does not think twice for the grade 12 students. This implies that
before spending instead of budgeting and out of the 234 grade 12 ABM students, 218
saving it for the future. students serve budgeting as a practice for
them in the future and 211 students compare
In addition, extending one’s budget out into prices before buying.
the future also allows him/her to forecast
how much money he/she will be able to save On the other hand, indicator 4 (under
for the things he/she wants budgeting strategies) and 2 (under money
(myMoneyCoach, 2019). At an early age, expenditures) have the lowest rank for the
students will undergo temptations into grade 11 students. This implies that out of
handling money so it will be a tough the 184 grade 11 students, 142 respondents
decision for them to budget their money. So, do not make a written budgeting plan and
it is better to set aside money for the future 150 respondents spend their money on
use in able for emergency cases. Spending things that are on trend. While the indicator
on the things that are only needed is the 5 (under budgeting strategies) and indicator
most recommended way in saving. 8 (under money expenditures) has the lowest
Budgeting might need different processes rank for the grade 12 students. This implies
but it surely helps. It will show the students that out of the 234 respondents in grade 12,
the things which are needed to spend money 193 students do not record their expenses
on and not on the things that are only trend. and 178 students do not matter to them if all
of their things are branded.
Difference of the budgeting strategies of the Moukendi (2019) states that financial
ABM Students literacy is critical for students to increase
The table on the next page represents the their knowledge of why and how they can
comparison of the grade 11 and grade 12 live a financially stable life while still in
ABM students in their budgeting strategies school. He further added that when students
and their money expenditures in ranking. become aware of their finances, they will
Generally, the results show that most of the think about successful ways to save for their
grade 11 ABM students think of savings and future. Since, students know that budgeting
the students also compare prices before can serve as a practice for them in the future,
buying. While the grade 12 ABM students it is a big help for students for saving early
agreed that budgeting will help them in their as a student will not only worry less on
future and the students also compare prices money but rather, they are preparing
before buying. themselves to their adult lives. As a student,
this is a nice mindset since it really helps
The table shows that the indicator 1 and serves as a preparation in the future for
(budgeting strategies) and the indicator 5 the students. When speaking about the
(money expenditures) have the highest rank future, the students should also think ahead
for the grade 11 students. This implies that of everything before taking an action and
out of the 184 grade 11 ABM respondents, saving is one of the actions needed to be
Balagbagan, Tacderas, Alvarado, Faryao, Lactao, Magno, Ofanda
taken as a student. Saving as a practice may budgeting and how budgeting gives benefits
influence a lot as well so in case of them.
emergency, there is somewhere to get
money instead of leading into debt. The results also show that the grade 12
students compare prices before buying
The results show that thinking of savings is something. Furthermore, Laja (2012), stated
the lightest budgeting strategy of the grade that consumers compare prices form one
11 students. According to Segal and Welch store to another when buying similar things
(2019), thinking about savings is not but in a cheaper price, he further stated that
enough, the person should have the intention it is important to be aware on buying the
to do what the person needs to do on his/her things he/she really likes. Thus, students
money. They further added that, a goal should know how to canvass so that they
without a plan is just a wish. Student should will not be scammed by the prices of other
not always think of savings without the retailer stores. It is important to canvass so
intention of doing so. Thinking of saving is that it will help you find the cheaper prices
a goal for they will make action plans to the sellers are selling. Comparing prices is
come up with the goal that has been set. not bias, rather it is just being a wise
consumer so that you will not regret buying
The results also show that the grade 11 the higher price than a cheaper price.
students compare prices before buying a Comparing prices is a budgeting strategy
certain item. According to Laja (2012), since he/she compares the prices 2 or more
people usually only look at the most obvious things. It is considered as a budgeting
things like the price and key features. It is strategy because it helps the student to be
very important to compare the prices and aware of the prices so that the students
features of a product so that no money will would know how to budget their money by
be put to waste in case the person do not buying products with a cheaper price.
compare prices. Thus, comparing prices will
help students to have a surplus which will On the other hand, the results having the
then be put to their savings. In that way, it lowest rank on the data is that students do
will help students to learn on buying cheaper not a write a written budget and recording
ones rather than pricey ones just to show off the expenses contains the lowest rank among
that they can afford buying those things. the data collected. Caldwell (2019), stated
that it is important to track how one person
The results of the grade 12 students show spend his/her money and it will help
that budgeting serves as a practice for them students to create financial awareness. She
in the future. According to Sagdullas (2016), further added that if one person does not
it is a good idea to teach kids budgeting know where his/her money goes then he/she
skills as early as when they are high school will not know what habits to change in order
and teach them to handle their finances well. to have a better savings. When spending,
So that at a young age, students can be people need to have the knowledge how to
trained and they will learn to budget their budget money wisely. When people only
money, in that way it will help them have a spend and spend, people will not be
better savings in the future. Also, at a young disciplined and will not be able to know
age, they are prepared for their future which is right and wrong when it comes to
finances since they know the importance of spending money. Everyone should be used
to recording their expenses in their daily
living in able for them to trace and learn will be used to measure the proper money
how to fit in all the expenses with a certain needed for a span of time.
amount of money. It may need a lot of time
in listing, but it will surely serve as a help The difference of the 11 and grade 12 ABM
not only to others but to everyone too. It is students which have the highest rank is that
important to learn how to manage money
wisely as young as students are because they
will be bringing this routine up to their
adulthood. Without proper management of
money, students will be used to
overspending the amount of money they
have without thinking of the future and may
be leading them to debt.