Factors Affecting the Budgeting of Allowances of Senior High School

Students: Basis for a Proper Budgeting Awareness (PBA) Program

Angelica M. Abrehan

Published: 2019-01-18

Keywords: allowance, budgeting, factors, financial, financial status, influence, money

Abstract

INTRODUCTION

The main objective of this study was to determine the factors affecting the budgeting of
allowances for Senior High school students.

METHODS

The study used a typeof quantitative research thru survey. The results were used as the basis for a
proper budgeting awareness program.

RESULTS

Respondents agree that their family, financial status, peers, and personal decision affect them in
budgeting their allowances. However, when the respondents were grouped according to their
demographic profile, there was a significant difference in the perception of the respondents. Also, there
was a significant difference in the perception of the respondents regarding the factors affecting the
budgeting of allowances when they were grouped according to their daily allowance in terms of
personal and peers influence.

DISCUSSIONS

There was no significant difference in the perception of the respondents regarding the factors
affecting the budgeting of allowances when they were grouped according to their sex, age, and family's
monthly income in terms of family influence, financial status influence, peers influence, and personal
influence. Also, there was no significant difference in the perception of the factors affecting the
budgeting of allowances when they were grouped according to their family members in terms of family
influence, financial status influence and peers influence. Moreover, there was no significant difference in
the factors affecting the budgeting of allowances when they were grouped according to their daily
allowance in terms of family influence, and financial status influence. A proper budgeting awareness
program was developed to help the parents, teachers, researchers, future researchers, and the
students.

Students Budgeting and Spending Behaviour

II.i. To search for the underlying factors behind their expenditure

(Bona, 2018) Study found that students choose to buy the product which will meet their interest
relative to product and price. The study concluded that college students' spending behavior is massively
influenced by their family background. Parents also play a critical role in shaping not only the attitudes
towards financial management but also life attitudes in general of their children. To improve financial
habits, students must take some time to create concrete measures to help them keep track of their
expenses. First, they should create their own budget and keep ways on how to improve it. Keeping a
record of expenses will help them monitor how much money they spend on clothing. entertainment,
and gadgets. They should not forget to allocate money for savings because a good budget does have
savings. Lastly, they should keep a positive attitude. This study failed to quantify student spending
behavior in terms of monetary terms, since it was more qualitative in nature.

(Sorooshian, et al., 2013) The research paper finds that the cost of college has risen dramatically
in the past years. Prices for multiple commodities like tuition, books and fees has risen by 5 to 10%
annually. Most full-time students, however, receive financial aid, grant funding and a loan to offset the
cost of college. Study estimates that students are paying about one-third of the actual costs of a college
education. Experience says that college students are now demanding luxury, and they are not seeing the
problem with their spending. They seem to have become so comfortable with these high prices that the
items are now commonplace things seen at campuses. If students think before they spend, they will
spend wisely and if they did not, they are likely to waste money. Student spending behavior can be
improved if they plan their expenses ahead. They need to think to save to buy "needs" item rather than
spend on "wants" item. Entertainment seems to be the spending that the student does at a very high
frequency, thus they need to find ways to control it. This study went in depth into the financial and
psychological aspect of spending behavior and brought out concrete results, but failed to take monetary
terms into its scope.

(Shah, et al., 2017) The main aim of this research paper is to study the various psychological and
demographical factorsthat drive the spending behavior of the Indian youth. The paper shows how even
after trying times of Surgical strike, demonetization and GST etc., India just eventually moves on from
everything. Yes, it did suffer a temporary halt in spending but it is now back to normal. The paper
highlights how the spending demographic trend is majorly highlighted by the Indian youth under the age
of 30. Fueled by health and social image consciousness and the 'want it all' attitude, Indian youth is now
spending more than ever. They have been classified as 'experimentative' by various MNC's especially
with regards to food, media and personal care. A general trend in their spending behavior shows that a
majority of their purchases are impulse driven and that too relying on the word-of-mouth publicity.
These purchases reflect their characteristic to be 'rich enough' and high demands and aspirations. They
finally concluded that students spending patterns differ based on different education levels, gender,
entertainment and investments.

(Sollano, et al., 2018) This research shows that students who have daily allowance in school has
the advantage to havehigh grades or has the advantage to excel in class. The table reveals that whether
the student's daily allowance that ranges from 21 to 41 and above in which majority of the students are
found to have a daily allowance that ranges 41 and above. Moreover, most student level of academic
performance is found to be at the average of 85 to 89 which is described as 'satisfactory' in terms of
grades. Thus, the researchers conclude that there is a significant relationship between the parents
socioeconomic status and the students' academic performance. This paper compares student allowance
with academic performance. It does not consider the various commodities on which a student spends
and just talks that with higher allowance, the academic performance of a student improves.

II.ii. To ascertain how much they spend monthly

(Vhalery, et al., 2018) The research paper classifies variables that become factors that
influence allowance management. The population of the study are the college students from first year
(term one) in Indraprasta University (UNINDRA) PGRI Jakarta. Samples in this study are 282 people that
are taken randomly with sampling random technique. Data collection technique used is the
questionnaire that is already validated by experts and field trial. Study questionnaire is divided into two
types which are online through Google form and hardcopy (physique as the form) that is distributed
manually. The result shows that factors which influence allowance management is divided into 10
factors which are financial knowledge factor, financial motivation and desire factor, wisdom factor,
socio-culture factor, individual status factor, individual attitude factor, family relation factor, individual
friends' environment factor, and also family background factor. The paper however does not take into
consideration the various spending habits of students like shopping, movies, dine outs etc. It does not
give a clear picture that how much an average student spends monthly on what activity.

(Jeevitha, et al., 2019) This study addresses the question of why, where, what and how the
college students spend their money with the cultural shift to westernization in India and advent of malls
and to analyze the various saving and spending avenues for college students and how they maintain the
financial requirement with limited income and high expenses in the city of Coimbatore. In the west,
students are depicted as financially stable and emotionally free but inIndia, the case is not the same.
Despite being financially dependent on parents till 15-25 years of age, there is a radicaldifference
observed in the spending behavior of students of our country. They have become more brand conscious
andhave started spending more on lifestyle and entertainment. However, in the paper, an in-depth
analysis could not becarried out due to shorter time period. The questionnaire has a set of 16 questions
and hence respondents were not verypatient in answering the questions

II.iii. To plan, advance and equalize the measure to gauge the saving behavior of students

(Birari & Patil, 2014)The paper talks about the spending and savings pattern of the Indian
youth. They show howwesternization and increase in cost of living has influenced these spending
patterns over the years. The results of thisstudy show how the youth spends a large part of their
allowance on shopping of branded items. The research paper hasa sample of three groups of students at
junior level, graduation level and post-graduation levels. The sample is basedoff the students in
Aurangabad City of Maharashtra. The researchers used ANOVA and T-TEST to analyze thedifference
between spending patterns of all the three groups as well as genders. The results of the research
showed howthe spending patterns of the students differed significantly in many categories based on
their level of education. Also,another result is that male and female student youth have different
spending patterns with some similarities. A largeportion of the students go towards their lifestyle
patterns- shopping, dining out, mobile phones, investments andtravelling. The paper suggests the youth
to cultivate a habit of rational spending. It tells them to save and invest morein the financial markets.
The only limitation of this paper however was that it was done in a Tier-II city of India wherethe cost of
living is significantly low as compared to the metropolitan cities.

(Manju, 2016) 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 importantrole in our country, it is therefore important to monitor their behavior
towards financial aspects. Money managementis a long process of budgeting, saving, investing, spending
and seeing the overall usage of cash. As far as studentsconcerned, how they see spending is a matter of
social freedom and they always are updated about the latest fashion intrend. For students buying good
clothes, travelling to faraway places, going to famous fast food places all this is a dailyexpense for a
college student on average and their parents give them a monthly allowance on that basis only.
Thisresearch is most likely to find out a budget for students to limit their spending, a little savings on the
part of the studentsso that they can invest in some good places and so that they can manage their
personal finance with the budget beingthe counter for measuring.

II.iv. To determine spending pattern of the students

(Abawag, et al.. 2019) College students face a lot of difficulty in maintaining I spending
according to the budgetmaintained by them. A very little research has been conducted on this subject as
a result of which the problem is stillnot identified. This study is conducted to observe the behavior of the
university of Saint Louis Tuguegarao, Stratifiedrandom sampling was used to determine the 234
respondents who are taking Management Accounting. FinancialManagement and Marketing
Management course. It can be concluded that sex, course, year level and ethnicity aredeterminants of
the difference on spending behavior of management students while socioeconomic status was
foundinsignificant when comparing the said behavior. This research shows what are the daily allowances
of students fromdifferent countries. The paper tells what the students are more likely to spend on
including transportation, clothing.food, parties, etc. The main focus of the study was to determine the
spending behavior of management students ascompared to other field students.

(Stollak, et al.) The research paper studies the manner in which college students manage their
money on various factorslike age, personality traits and knowledge. Some variables did not show
differences in the accumulation of debt butperceptions varied among groups. Demographic variables,
GPA and number of hours worked did not play role in theamount of debt acquired but students with a
higher GPA or those who worked more were more worried about theirfinancial status. In this study, they
have considered the printing budget to analyze the differences in spending behavior.They examined
significant differences between males and females and found that females had a more
responsibleattitude towards budgeting their monthly expenses. There were also significant differences
in spending according tovarious age groups (freshmen, juniors, seniors, sophomores). The paper focused
on a relatively homogenous populationat one school. There can be a possibility of students having
dissimilar outcomes at a more diverse campus.