La Marea Academy

Remedios Village, Tapuac District, Dagupan City

Financial
Management of
Senior High School
students in relation to
Fluctuating Inflation

Submitted by:

Andrei Abian

Ashley Lopez

Nikko Sangalang

Jomari Arzadon
 CHAPTER 1

INTRODUCTION

Financial management is a concept many are aware of but do not actually apply; it

involves handling one’s finances and developing a spending plan. Many people are

facing hard financial struggles which could greatly effect one’s mental health. Students

with financial independence without parent’s supervision are facing financial issues

because of poor financial management. They do not have the skill to manage their own

money nor the skill to ensure the money is well spent and not misused.

Inflation rate in the Philippines is consistently increasing for the past few periods,

which only puts more pressure to a student’s financial struggles. Inflation has always

been an issue for not only students, but the people of the country as well. The sometimes

unpredictable nature of inflation can cause a sudden shift of plan in one’s financial

management.

This study seeks to determine the affects of inflation and to spread awareness of

the importance of financial management to SHS students. As well as to determine the

level financial literacy of SHS students in order to conclude whether it is sufficient

enough during fluctuating inflation

OBJECTIVES

The purpose of this study is to gain more knowledge about the importance of

financial management and the influence of fluctuating inflation. It specifically aims:

 To present how important financial management is to SHS students

financial management of SHS students

 To discover other factors for financial management

STATEMENT OF THE PROBLEM

The aim of the study is to investigate the role of fluctuating inflation to financial

management of SHS students. It aims to answer the following questions:

1. What is the average spending amount of SHS students in a daily basis?

2. How does inflation impact SHS students?

3. What is the level of financial literacy of the students in the following areas:

a. Spending Habits

b. Saving Habits

SIGNIFICANCE OF THE STUDY

This study will benefit the following:

SHS STUDENTS. The results help SHS students have a clear understanding of the

importance of financial management and how inflation effect different variables in the

student’s surroundings.

HOME. The conclusion will also be very useful for the family in terms of financial

management. They will be aware of where consumption of funds goes and how the

erratic behavior of fluctuating inflation greatly effect consumption.

SCOPE AND LIMITATIONS

Academy (S.Y. 2022 - 2023) in relation to inflation. The researchers will get respondents

from grades 11 and 12.

DEFINITION OF TERMS

 Financial Behavior - financial behaviour is defined as the management of a person’s

savings, expenditure, and budget (Perry and Morris). Or human activities related to

money management such as cash, savings, and credit (Xiao)

 Financial Independence - is the status of having enough income or wealth sufficient

to pay one's living expenses for the rest of one's life without having to be employed

or dependent on others. (Wikipedia)

 Financial Management - is an act of managing one’s finances

 Financial Literacy - is the possession of the set of skills and knowledge that allows

an individual to make informed and effective decisions with all of their financial

resources (Wikipedia)

 Financial Planning/ Budgeting - the process of taking a comprehensive look at your

financial situation and building a specific financial plan to reach your goals; or

budgeting budget is a spending plan based on income and expenses.

 Inflation - is a general increase in the prices of goods and services in an economy.

When the general price level rises, each unit of currency buys fewer goods and

services; consequently, inflation corresponds to a reduction in the purchasing power

of money (Wikipedia)
 Spending plan - is a method for distributing your income, or in this case you savings,

among the mix of things you want and need.

 Spending habits - the repeated and sometimes involuntary routines and practices you

have around using money to purchase experiences, services, and things

 Saving habits - frequently practiced behaviors, done without a particular sense of

awareness, with the goal of freeing up funds for saving or debt reduction

CHAPTER 2

REVIEW OF LITERATURE

The importance of money for students is that it can help them learn how to be

responsible with their finances. When they are young and just starting, they must learn

how to budget and save their money. The importance of money management for students

will also help them in the future when they are adults and need to support themselves.

Money management can also help students stay out of debt. If they are careful with their

spending, they can avoid financial trouble.

Other than that, students need to understand that their financial behavior will

effect their future. Students should empower their financial planning. They need to plan

and budget their money on specific things with priority by differentiating their needs and

wants. Students nowadays are lacking of financial awareness and financial planning

concepts (Joyce K.H. Nga, Lisa H.L. Yong, and Rathakrishnan D. Sellappan 2010)

Financial Literacy
 Students tend to not know what to value first, and they tend to spend it on things

that are not important. Therefore, it would become inevitable for people to overspend

when they buy things because they do not know what to prioritize the significant ones

(Paine, 2012). This is when financial planning comes in. Financial planning is useful for

both short range and long range plans (Ferdinand L. Timbang, 2015). Financial planning

serves as a basis of operations or the allocation of funds the person has to undergo.

FACTORS IN FINANCIAL MANAGEMENT

Inflation can reduce the value of your savings overtime, because prices typically

go up in the future. This is most noticeable with cash. In other words, the buying power

of an individual dollar decreases when the price of everything has increased.When you

keep your money in the bank, you may earn interest, which balances out some of the

effects of inflation. When inflation is high, banks typically pay higher interest rates. But

once again, your savings may not grow fast enough to completely offset the inflation loss.

Financial Behavior of individuals is essential but difficult to understand, define,

and measure. There are many way the spending habits of students may vary. It can vary

due to personal demographics and school environment. Even in today’s web-driven

shopping environment, the old norm that women love shopping more than men still

applies (Karr, 2012).

Spending habits and Saving Habits

There have been many articles, studies, and researches about said topic among

students all over the world, an example would be Atie Nadome’s research about the

“Spending Habits among Malaysian University students.” This researched explained that
spending habits has never been stable, meaning spending habits of students today are

significantly different from the spending habits of students in the past.

Another study concludes that there is a massive influence of peer group in the

youth below nineteen years while making purchase decisions. As they mature, the

influence of peer groups decrease and he/she relies more on evaluating the product

instead. (Dr. Rekta Attri, 2012).

CHAPTER 3

METHODOLOGY

RESEARCH DESIGN

The goals of this research is to determine the average spending amount of SHS

students, determine whether said spending amount is adequate during inflation, and

determine SHS student’s financial literacy.

The researchers are going to be using a combination of descriptive-analytical

design and quantitative survey questions. Descriptive-analytical design to determine the

financial literacy of SHS students based on spending habits and saving habits. And

quantitative survey questions to determine the average spending amount of SHS students.

RESPONDDENTS OF THE STUDY

The respondents of this study are SHS students of La Marea Academy

RESEARCH INSTRUMENT

A self-made survey questionnaire by the researchers for gathering data. The

questionnaire is based on professional literature, previous studies,. and observations.

Creation of Survey Questionnaire

The questionnaire used to pinpoint the average spending amount of SHS students

of La Marea Academy. It is also administered to determine the level financial literacy of

SHS students in order to conclude whether it is sufficient enough during fluctuating

inflation. The questionnaire will consist close-ended questions and open-ended question.

Scoring and Interpretation

Response Set

Strongly disagree Neither/Undecided agree Strongly

disagree agree

Distribution

The researcher would be conducting the distribution and retrieval of

questionnaires would be at the comfort of their homes. However, if possible, distribution

and retrieval of physical questionnaires during onsite classes in the campus of La Marea

Academy.

STATISTICAL TREATMENT

The statistical tool to be used by the researchers is correlation analysis to

determine the financial literacy of SHS students based on spending habits and saving
habits. And determine the average spending amount of SHS students. For the Likert

scale questions, the collected data can be analyzed as interval data. The percentage is to

be calculated for each circumstance. The researchers obtain the percentage (P) by

dividing the answers (f) and the total number of respondents (n). Then it is multiplied to

one hundred to get the total percentage.

f
P= ×100
n

For open-ended questions, statistical tools persists. The researchers would remove answer

which are essentially the same and interpret them.