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Chapter Ii RRL RRS
Chapter Ii RRL RRS
This chapter provides thorough related literature and studies that provide a strong
structure in order to support, cover, and obtain knowledge for the development of the study.
RELATED LITERATURE
Budgeting is essential for someone's financial security, helping to ensure people can pay
everyday expenses such as lease, education cost, pell grants, debt, and leisure. According to My
Great Lakes (2015), it is a proactive approach to financial organization, where allows planning
for both short- and long-term expenses. It ensures that people don't spend more than they earn.
Budgeting is a simple, effective way for people with various incomes and expenses to keep their
finances in order.
Budgeting is vital for students because it allows them to plan for unforeseen expenses and
school costs. Budgeting aids students in achieving their academic and financial objectives
(Federal Student Aid, 2014). The first step in making a budget plan to make students' aspirations
a reality is to write them down. It necessitates difficult decision-making, but creating goals will
make the difficult decisions a little simpler. Students should define short-, medium-, and long-
term goals and measure their progress toward reaching them as they develop a budget.
However, budgeting allowances and expenses are one of the difficulties that students
encounter. This is especially problematic when a budget item's estimated value varies (Stollak,
2011). Several things influence how they budget their money, including age, personality
attributes, and expertise (Norvilitis et al., 2006). Students are less likely to be in debt if they have
"Borrowing Against the Future: Practices, Attitudes, and Knowledge of Financial Management
among College Students," stated that many students do not create a budget plan or calculate
credit card payments based on their actual spending, which makes problems on their budgeting.
Thus, many students should have proper ways of budgeting to avoid overspending.
Assessing student behavior is a simple but effective way for students to reduce their
spending and improve their budgeting (IJCRT, 2020). Students can accomplish this by creating a
behavior chart. According to the International Journal of Creative Research Thoughts (IJCRT),
this behavior chart is a tool for keeping a consistent record of the students' behavior and creating
reinforcement for the same kind of behavior. When it comes to handling and adjusting student
behaviors, these charts are invaluable. It is critical that university students learn about finance
and budgeting throughout their adolescence phase, as this is their best chance of success in later
life. However, building a proper budgeting knowledge base is insufficient. Consistent success
necessitates a healthy and positive attitude and supportive parents who encourage a responsible
financial attitude.
Kidwell and Turrisi (2004) proposed that budgeting intent is ascertained by attitude,
subjective norm, perceived control, affect, and past behavior by combining the Theory of
Planned Behavior with two additional cognitive constructs. A few other researchers, such as
Sandberg and Conner (2008), contend that affect, or an individual's feelings about the intended
behavior, is a great indicator of intent to obtain the behavior, but this is controversial in the
literature. Kidwell et al. (2003) discover a weakly substantial inverse relationship among
budgeting intent and respond to the statement, "It makes me feel good to have a budget of my
finances," implying that budgeting is interpreted as an undesirable task. Kidwell and Turrisi
categorized affect about budgeting as positive or negative. Positive affect is inconsequential, but
RELATED STUDIES
One of the most persistent challenges that students face today is the enormous difficulty
in controlling their budgets. The current level of the budgeting problem is, once again, not
completely figured out and resolved. As a result, many studies have focused on determining
students' budgeting ways and behavior. Some researchers discovered the factors and effects of
In his study, Armstrong Opoku (2015) discovered that senior high students in Kumasi
Metropolis were less knowledgeable and inexperienced with personal financial planning and
budgeting issues. Senior high school students' incompetence limits their ability to make sound
financial decisions making them more likely to face financial problems in the real world. Minor
financial issues can become overwhelming due to a lack of financial literacy, leading to financial
stress, affecting other aspects of life such as personal relationships or work performance.
In studying students' spending habits in Miri, Jin Jin (2017) found that the students prefer
to spend their own money on food because they are students who require various foods to
survive in the academic workloads. The researcher also revealed that the gender preferences
were greatly affected the budgeting of students' allowance, where the proportion of young female
respondents end up spending money on shopping because it is a woman's thing, they enjoy
exploring new things, and shopping can help them feel better when they are sad. On the other
hand, a proportion of young male respondents love spending money on entertainment over other
activities because men prefer to play games, and half of those who play video, computer, or
According to Singh et al. (2020), their study of Student Budgeting and Spending
Behavior depicts a clear picture: more than half of the students in 138 universities in Delhi and
Mumbai in India are living on a relatively limited budget to pay their bills and support their
lifestyle, which often goes unmaintained. The majority of these students' spending is on their
lifestyle and entertainment, which impacts their allowance budgeting. The researchers discovered
that students consider dining out to be their most unavoidable expense, preceded by movies.
However, an intriguing finding was also revealed: when faced with a budget deficit, more
students reduced their daily expenditure than those who asked their parents for money. Students
also prefer to save a portion of their monthly allowance, usually in cash or in the bank,
Another study conducted by Jeevitha and Kanya (2019) supported student budgeting and
spending behavior analysis. Their research looked into why, where, what, and how students
budget their money in India as a result of the cultural shift to westernization and the introduction
of malls. Jeevitha and Kanya also investigated the various saving and spending options available
to students and how they manage their budgets with limited allowance and high expenses in the
city of Coimbatore. The researchers found that students are portrayed as financially secure and
emotionally free in the West area, but this is not the case in entire India. Even after being
financially completely reliant on parents until the age of 15-25, there is a significant difference in
students' spending and budgeting habits. They have become more brand-conscious and have
begun to spend more money on lifestyle and entertainment, affecting their budgeting.
REFERENCES:
https://studentaid.gov/resources/prepare-for-college/students/budgeting
International Journal of Creative Research Thoughts (2020). Student Budgeting and Spending
2434.
Jeevitha, P. & Kanya, P.R. (2019). A Study on Saving and Spending Habits of College Students
Jin Jin, I.T. (2017). A Study of Spending Habits Among College Students in Miri. [Student's
(2017/APR/TIUCT/BBAFA/02)
Kidwell, B., Brinberg, D., & Turrisi, R. (2003). Determinants of money management behavior.
Kidwell, B., & Turrisi, R. (2004). An examination of college student money management
Micomonaco, J.P. (23 April 2003). "Borrowing Against the Future: Practices, attitudes, and
https://mygreatlakes.org/educate/knowledge-center/successful-budgeting.html
Norvilitis, J. M., Merwin, M. M., Osberg, T. M., Roehling, P. V., Young, P., & Kamas, M. M.
(2006). Personality factors, money attitudes, financial knowledge, and credit card debt in
Opoku, A. (2015). Financial Literacy Among Senior High School Students. [Master's Thesis]
Sandberg, T., & Conner, M. (2008). Anticipated regret as an additional predictor in the theory of
Singh, S., Gupta, S., Jain, S., Kabra, S., & Gupta, S. (2020). Student Budgeting and Spending
2320-2882
Stollak, M. (2011). Student Budgeting and Spending Behaviors: A Comparative Study. Journal