FATHER SATURNINO URIOS COLLEGE OF BAYUGAN, INC

Mag-aral ay di biro: Challenges and Ways in Budgeting the Allowance of the Students in

FSUCBI

A Research Project to the Faculty of

Senior High School Department
Father Saturnino Urios College
of Bayugan Inc.

In Partial Fulfillment of the

Requirements for the Subject
Practical Research 2

CASIMERO RACHELLE ANN

CASIMERO STEPHANIE
GABRIELLA GRUYAL
MORALES PRINCESS NIEZY LOIZY
MORALES DARREN CLINE
PASCUALREGIE
REYES SHEILLA
ROMARATE BJ ZEMRAY
ROSALEJOS XYPRIL ROSE
RUALES EULA MARIE

JONATHAN F. GABAIS
TEACHER

DECEMBER 2022
 CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

1.1 Introduction

In the Philippines, respective schools filed to offer and implement the Senior High School

program for their students. This is a program offers an additional two years of High School

Education. Students who do not create and stick to a reasonable budget run the risk of running

out of money before the end of the first semester or the end of the school year, Stollak (2011)

concluded that they had a hard time budgeting their allowance in order to buy the requirements

on other expenses related to their project. One of the responsibilities of a student is to manage

their allowances given by their parents or guardians.(Bonggaoen et al., 2019)

In a study entitled “Student Budgeting and Spending Behaviors: A Comparative Study”

Novilitis et al., (2006), the more knowledge students have about their financial responsibility and

status the less likely they are to be in debt.

(Aquino et al.,2018) cited that, student budgeting refers to the management financial

expenses within the budget given to them. The major challenge that students face is the difficulty

to budget their expenses and save a proportional amount every time for contingent events since

most of students get their monthly allowance from their parents and are responsible for their own

expenditures. According to Stollak (2017) students are having difficult situations on how they

will budget their allowance in order to fulfill school requirements, their projects and other

expenses. Allowance is money that are given within time period (weekly, monthly, yearly)

by parents or the guardian for educational needs.

Amanda Daper (2017) cited that, a common mistake that students make was not creating and

sticking with a reasonable budget, In fact, Felipe (2011) stated that “A lot of the numbers of

students seem to want what was the “in” trend what people are doing or using “right now.

Student budgeting primarily refers to management of financial expenses within their

assigned budget (Singh et al.,2020). Several factors make the behavior of students dynamic and

different from each other. These factors can be technical as well as psychological and

controllable or uncontrollable. Budgeting has been part of the daily lives of people. It exists

anytime and anywhere, others have enough budget while others do not. Expenses of people also

differ based on their status in life. Students, having their weekly allowance, experience some

struggles in proper budgeting (Barreto et al.,2019) .

The value of education is rising, making its prospective economic return look less appealing

more ambiguous. However, it is important to highlight that the government now enforces free in

the Philippines, education. Although tuition is not the only expense associated with college,

students must understand the significance of their main choice in light of their weekly

allowances. While students can select their major in a number of ways, several considerations,

including as Expected financial returns on investment in education are becoming more and more

significant l (Dolan, 2004).

(Saifi and Mehmood, 2011) states that the effect of socioeconomic status on students’

performance result revealed that parents education, occupation and facilities at home affects the

student achievement. Many benefits for giving allowance to the children are teaching them

regarding to make a decision (limited money with unlimited needs), giving freedom and

responsibility while using money and they will learn the value from that money. Students then

wisely comes along on how to make a saving as well as budgeting. Allowance serves as salary
that you need to divide for expenses at school as well as the students’ needs. In addition,

according to Miriam Caldwell (2019), budgeting was one of the biggest keys to managing your

money, the misused of allowance can cause a light to a heavy risk and parents will also bear the

consequences. Godfrey (2013) that an allowance was not an entitlement or a salary. It was a tool

for teaching how to manage money. For avoiding the disadvantage and maximizing the

advantage, knowledge, ability, and skill support in order to use money.

George Peters (2014), budget ought to influence decision making knowledge about how

to manage money like money literacy, an ability to control allowance like saving or

investigation, and skill for allocating money. These are needed to be done to control the

resources that are owned with the decision that is must be done. Several studies already show

allowance management is good if it is combined with management knowledge branches,

connected to financial literacy, etc. However, some studies are not clearly enough to explain

what factors that can influence the allowance.” Almost all existing studies informally suggest

that consumers use budgets to manage self-control problems, often caused by present bias, which

interfere with their saving goals" (Thaler 2006, Ameriks et al. 2003, Antonides et al. 2011).

One strategy promotes streamlining the budgeting procedure and emphasizes budgeting's

planning issues in particular. The other advocates abandoning budgeting according by Hansen et

al. (2011) “Making a budget is the most important thing you can do to manage your money, but

many people are reluctant to take this beneficial step” (Miriam Caldwel 2022). The other is in

favor of doing away with the budget and focuses mainly on the issues with performance

evaluation.
 Participants who were randomly assigned to spend money on others experienced greater

happiness than those assigned to spend money on themselves ( Dann, Aknin, Norton et al.). Lo

and Harvey (2014) added that over a longer period of time, this behavior leads to financial harm

Objective of the Study

The objective of this study is to determine those Senior High School Students of FSCUBI that

are facing a challenge on how they will manage their allowance and expenditures and to provide

them various effective strategies in order to overcome this issue which is “A Challenge on

Budgeting their Allowance”.

1.2Conceptual Framework

INPUT PROCESS OUTPUT

 Demographic  Survey  Coping Mechanism

Profile; questionnaire
 Strategies
Name  Interviews
Age
Grade level
Strand
Everyday

1.2 Figure 1. Research Paradigm

Presented in Figure 1 was the research paradigm of the study. It shows the Demographic

Profile of the respondents which explains their information such as their

name, age, grade level, and strand. These factors will be combined together with the process.

Survey questionnaire will be utilize in the process to find the result, it also

includes the interview to be part of the process.

 The respondents will be surveyed based on the challenges that they encountered during

budgeting their allowances. Also, the ways will also be part gathered by the survey. Finally, the

outcome of the process will be the coping mechanism and strategies that the respondents used.

1.3 Statement of the Problem

• What are the challenges of the grade 11 students ?

• What are the coping strategies applied by the grade 11 students?

• Significant relationship between the allowance of the respondents and coping strategies

in Students

• What interventions can be prepared based on the findings of the study?

1.4 Significance of the Study

The purpose of this study is to determine the most efficient financial management
practices among students. The majority of students struggle with budgeting their allowances;
some have a tendency to do so while others do not. The goal of this study is to help students
understand the significance of having budgeting methods in their day-to-day financial
management. This study also enables parents to help their children budget the money they
provide them. During the academic year 2022–2023, this study was solely conducted at Father
Saturnino Urios College Bayugan Incorporated. In the study, a quantitative approach was
applied.
It examined Grade 11 students' assessments using a descriptive research design.

Students: The students will have a better understanding towards budgeting their allowance

effectively and efficiently. This is where the significance of allowance budgeting practices exists,

to know; means to survive within daily allowance, ways to avoid over spending and having debt,

allowance budgeting practices that they do; suit to their lifestyle and live within their means.

Parents: The parents will be able to guide/assists their children in studying the term
“budgeting.’’ This research will give them idea on the amount of money they will allocate to

their children and to monitor, on how their children spend their allowances in the different

variables given.

Teacher: The teachers will be more aware about their students situation. This study has

significance to them, to know the allowance budgeting practices of the students regards to the

projects.

Youth: The youth, they will be more aware and conscious about budgeting skills.

Researchers: As a result, this research would serve as a starting point for obtaining information,

knowledge, and facts concerning the student's awareness of the impact of budgeting on students'

academic performance. Also, it enhances the students’ awareness to the importance of planning a

budget. They say the key is financial success is to be well aware of how to spend your money.

1.5 Scope and Delimitation of the Study

The research study is limited and conducted only 100 students at Father Saturnino Urios

College of Bayugan Inc. This study will focus on the Challenges and ways of the students on

Budgeting their Allowance. Each of the respondents will be given a questionnaire to answer. The

proponents will only offer many questions like checklist, ranking, and rating questions to ensure

that the data collected is manageable. This is intended to evaluate and estimate the Father

Saturnino Urios College of Bayugan Inc. students and how they manage their allowance.
.6 Definition of Terms

Academic Performance: the evaluation of students' performance in various academic field. It

speaks about students' academic performance.

Allowance: An allowance is an amount of money given or allotted usually at regular intervals

for a specific purpose. In the context of children, parents may provide an allowance to their child

for their miscellaneous personal spending.

Budget: is a quantitative plan used as a tool for deciding which activities will be chosen for a

future time period.

Budgeting: Budgeting is the process of creating a plan to spend your money. This spending

plan is called a budget. Creating this spending plan allows you to determine in advance whether

you will have enough money to do the things you need to do or would like to do.

Budgeting Skills: The ability of an individual to adopt a proactive approach towards managing

his own money. On how the student would budget their daily allowance.

Challenges: A challenge is a situation that threatens to hinder or derail a student’s pursuit of

success.

Expenditure: An amount of money spent. The spending of money in academic purpose.

Expenses: the value for something to have to; the money that is paid on something.

Planned expenses that students have incurred as a result of their daily lives.

Finance: The control of significant financial resources and of the students..

Strategy: A formal method of managing a collection of funds.

 CHAPTER 2

REVIEW OF RELATED LITERATURE

Money is the most basic requirement of life, without which, one cannot fulfill their basic

needs and requirements of the daily routine. The importance of money is increasing day by day

as the living has become so costly (Archana 2017). Allowance refers to the money given to

students that shall be used for their daily needs and expenses given by their parents or guardian

(Galulu, et al., 2017). Budgeting on the other hand is characterized as a tool that encourages

students to plan and manage their cash assistance they received. Signh et al. (2020), assert that

student budgeting primarily refers to management of financial expenses within their assigned

budget. Financial literacy is not intended to complicate or curb people in enjoying life and using

the money they have, but rather with financial literacy, individuals or families can enjoy life by

using their financial resources appropriately to achieve their personal financial goals (Stolper &

Walter, 2017).

According to Felipe (2007) he stated that “A lot of the numbers of students seems to

wants what is the “in” trend , what people are doing or using “right now”. Most teens will
usually have one or two sources of income, either allowance from their parents or a job. The

answer to this question isn’t found by looking at the income of the family or social status, it’s

more a way of living and rearing that the parents have given their children”. Another study

Tempo (2010) he mentioned that “Students have the tendency to spend their allowances on their

recreational activities such as renting a computer unit for fun and games, buying items at the

shopping mall, and spending money for the peers. Teens are active consumers in terms of the

money they spend, as well as in the influence they wield in their families and on societal trends.

As a students that uses money everyday should be responsible on how much money we

spend in our daily lives. We should remember how to budget our allowance or better yet we

should be thrifty enough so that in a way we’ll be able to help our parents. We should have self -

awareness. Giving allowances is not just for teens financial purposes only but yet it is for variety

of ways.

According to Shahrabani (2012), financial literacy has a significant positive effect on

financial management behavior. The higher the level of financial literacy, the behavior of

personal financial management will also be better. Conversely, if the lower level of student

financial literacy, then the level of personal financial management is also getting worse. Manju

(2016), express that having a little hold on your cash expenses and controlling your spending

amount is not only a good habit but also contributes to financial success which is very important

in future. Since youth plays a lot more important role in our country, it is therefore important to

monitor their behavior towards financial aspects.

A budget is defined as the formal expression of plans, goals, and objectives of

management that covers all aspects of operations for a designated time period. The budget is a

tool providing targets and direction. Budgets provide control over the immediate environment,
help to master the financial aspects of the job and department, and solve problems before they

occur. Budgets focus on the importance of evaluating alternative actions before decisions

actually are implemented. Better budgets can boost your department and your career to higher

levels of performance and success ( Kim J. & Siegel J, 2011).

Budgeting is characterized as a tool that encourages students to plan and manage their

cash assistance they received. Having lack of experience might be hard for college students to

budget their allowance on their own. Signh et al. (2020), assert that student budgeting primarily

refers to management of financial expenses within their assigned budget. A budget standard

indicates how much a particular family living in a particular place at a particular time needs to

achieve a particular standard of living (Parthasarathy Krishnamurthy, 2018).

Budgeting in developing countries may be divided into two main areas, the first

concerned with the application of program and performance budgeting to individual countries,

and the second with analysis of comparative budget systems. Program and performance

budgeting remains a dominant prescription despite its questionable record in practice. While

there are several useful descriptive studies in practice. While there are several useful descriptive

studies of budgeting these there are insufficient for purposes of generalization and further

research is needed to explore specific areas in depth, construct comparative frameworks, evaluate

budgetary capacity, clarify assumptions, and utilize insight from related areas of study (Chris

Deal University of Oregon, 2014). Budgets have long been the dominant instrument for

management control (Horngren, (2013).

The school budgeting process factors into the financial stability of a district, that

ultimately impacts academic achievement. Best practices as defined by methods that allow for
greater transparency, cost effectiveness, and overall success in the passing of school budgets.

School funding is an important facet regarding how resources are ultimately provided within the

classroom and indirectly may have a major impact on student learning (Valdimer O Key

American Political Science Review,2012).

In a study conducted by Mone a, J., Tuñacao, M. (2020) most of its most of the students

receive their allowance in a daily basis. The allowances are used for their everyday consumption

and to be used for daily needs in school. The students appear to have a peaceful thoughts of their

financial lifestyles due to meeting financial duties with much less level of debt. For the

remaining money they have they can buy something for their love ones and save money for

future use. The budgeting technique that the students used is a proportional type of budgeting as

they allocated their allowances based on percentage.

An unconditional allowance is statistically associated with diminished financial literacy, lower

levels of motivation and an increased aversion to work. The 2000 JumpStart National Survey had

found that less than half of American high school seniors reported having received a regular

allowance when growing up. Thirty five point three percent(35.3%) received an allowance based

on chores and 10.5 % received an unconditional allowance. The savings habit was clearly

learned at home but didn’t relate to the size of the allowance. English scholars Sonuga-Barke &

Webley, interviewed parents in England in 1993 and found that a “surprisingly large number do

not make any concerted effort to ‘train’ their children in the management of money.” They felt

that this may account for the weak relationships between parents’ attitudes and values and their

attempts at economic education of their children. Thus the economic socializing power of parents

may depend primarily on the explicit rules they set regarding allowances and the adolescents’

agreement and understanding of these rules. In Australia, Warton & Goodnow, found in 1995
that adolescents saw household work more as a mechanism to earn pocket money in contrast to

adults, who saw their purpose significantly more as a way to learn that everyone has to do their

fair share, learn how to be helpful, and do what needs to be done.

CHAPTER 3

RESEARCH METHODOLOGY

The purpose of the study is to determine the allowance and the use of money management

practices of the students of Father Saturnino Urios College of Bayugan Inc. The objectives of

this chapter is to describe the research methodology of this study. explain the sample selection

and describe the procedure used in designing the instrument and collecting data.

I. Research Method

In order to gather the necessary data, the researchers used quantitative method . It

includes techniques that are used to summarize and describe numerical data for the purpose of

easier interpretation .

II. Participants of the study

The respondents of this study is the Senior High school students of Father Saturnino

Urios College of Bayugan Inc.

III. Setting of the study

 The study will be conducted at Father Saturnino Urios College of Bayugan. Lawaan

St. Poblacion, Bayugan City, Agusan del Sur.

IV. Research Instrument

The researchers designed a questionnaire survey instrument to assess the money management practices

of the students of Father Saturnino College of Bayugan Inc. And serves as the main tool of gathering

the data. It was designed to know how much the allowance of the respondents is in general,

how and where they spend it to and how they budget it.

V. Data Gathering Procedure

In collecting the data, the researchers will distribute the survey questionnaires to the

Senior High school students of Father Saturnino College of Bayugan Inc. After collecting the

data the researchers will tabulate and interpret the following information through the use of

statistical tools.