“Coleration of spending habits of grade 11 students to their financial literacy in Westbridge

Institute of Technology Inc.”

Prepared by:

Verdejo, Anthonette, P.

Manalili, Erica, C.

Pingol, John Patrick, M.

Reolada, Rainier, C.

Polias, Angela, B.

Serrano, Jordan, D.
 CHAPTER I

INTRODUCTION

Financial literacy is an important life skill that enables people to make informed financial
decisions. Having an adequate understanding of financial principles is essential in the present day
when financial decisions are becoming more and more complicated.

This study attempts to look into the relationship between financial literacy and the spending
patterns of Grade 11 students in Westbridge Institute of Technology Inc. The goal of the study is to
find a link between effective money-management strategies and excessive debt levels by examining
students' spending habits and degrees of financial literacy.

There is evidence to suggest that financial literacy is correlated with higher income and social
equality. There are also studies that examine the impact of financial literacy education on high school
and college students. However, there is no direct evidence linking the spending habits of grade 11
students to their financial literacy. Nonetheless, it is reasonable to assume that students with higher
financial literacy are more likely to make informed spending decisions and avoid debt. Keep in mind
that it is important to promote financial literacy education among students to help them develop good
spending habits and make sound financial decisions. Additionally, financial literacy courses have been
proposed as a way to improve students' awareness of their spending habits and increase their financial
literacy. Real-world scenarios can also be used to help students consider everyday spending decisions.

BACKGROUND OF THE STUDY

According to research, there is a connection among students' spending patterns and financial
literacy. People that are knowledgeable about finances are more capable to make financial decisions in
daily lives. However, there has been no advancement in financial literacy throughout the years, which
is particularly worrisome for adolescents who can face larger financial difficulties. In addition, a
study on students believed that family background and parental socialization plays an important part in
shaping attitudes towards spending habits.

Financial literacy may be taught by guardians, who are more financially educated may
understand the value of smart spending practices. Research has also shown that financial education
can increase income levels and improve financial literacy.

A report by JPMorgan Asset Management suggests that saving 15% of your income is necessary
to be prepared for everything life will throw at you. It is important to budget and avoid buying things
you don't need to save money.

STATEMENT OF THE PROBLEM

1. What norms do students use when deciding the amount of money to spend?

2. What kind of spending habits do students follow?

3. What do students do with money?

4. How much does a student's daily allowance expenses?

5. Is it necessary for young ones to know about the correlation of spending habits and financial
literacy?
HYPOTHESIS

1.Is it necessary for young ones to know about the correlation of spending habits and financial
literacy?

There is significant relationship between HUMSS, ABM, STEM, TVL, or other strand, even
other graders if students apply spending habits. Students manage exact money wisely, make smart
financial decisions, and achieve financial stability in life.

SCOPE AND DELIMITATIONS

The primary focus of this study is to look into the correlation between the spending habits of
Grade 11 students and their financial literacy in Westbridge Institute of Technology Inc.

The bounds of this study include the fact that it will only focus on Grade 11 students in
Westbridge Institute of Technology Inc. This study will not include students from other institutions or
other grade levels.

The spending habits will be analyzed in terms of the amount of money spent on different items
such as food, clothing, entertainment, and education-related expenses.

Financial literacy will be measured by assessing the students' knowledge of financial concepts
such as budgeting, saving, and investing. Additionally, the study will only focus on the correlation
between spending habits and financial literacy and will not investigate other factors that may affect
financial literacy such as family background or socioeconomic status.

Research results show that financial literacy is an important skill for young adults to possess.
Studies have also shown that financial literacy is positively correlated with better financial decision-
making and behavior. Furthermore, research has shown that students who receive financial education
have better financial literacy skills than those who do not receive such education.

SIGNIFICANCE OF THE STUDY

By correlating the financial literacy and spending habits of students, we can identify areas where
students may need more education or support in managing their finances. This can ultimately lead to
improved financial decision-making and a stronger financial future for students.

This research is significant to the following categories of people:

Grade 11 students: The study can help Grade 11 students become more aware of one’s financial
knowledge, attitudes, and behaviors. By understanding strengths and weaknesses in this area, students
can take steps to improve financial literacy and make informed decisions about personal finances.

Educational institutions: The findings of this study can assist educational institutions in creating
financial literacy programs that can help young people improve financial literacy. By incorporating the
key learnings from the study into curriculum, educational institutions can provide students with the
knowledge and skills necessary to make informed financial decisions.

Young people: The study can help young people understand the importance of financial literacy and
how it can impact one’s spending habits. It can provide with insights and strategies for managing
finances effectively, which can help them make informed financial decisions in the future.
DEFINITION OF TERMS

This essential nature is crucial in developing effective financial literacy programs that can help
individuals make informed decisions about their money. By understanding key terms and concepts
related to spending habits, people can better manage their finances and achieve their financial goals.

the terms stipulated below are:

Budgeting - Refers to the projects anticipated revenue and expenditures for a future period based on
prevailing internal and external factors. A detailed statement of projected financial result is prepared
by considering inputs from various levels.

Environment - An Environment is everything that is around us, which includes both living and
nonliving things such as soil, water, animals and plants, which adapt themselves to their surroundings.

Financial Literacy - the presence of a set of abilities and information that enables pupils to use all of
their financial resources to make wise and effective decisions. In this study, financial literacy was
measured in terms of students’ skills in savings, managing debt, and budgeting.

Knowledge - Understanding gained through learning or experience. Ex; You read a recipe to gain
knowledge about baking buko pie. When it burns in the oven, experience gives you the knowledge of
what you’ve done wrong.

Spending Behavior - The act of disturbing money in response to an action, environment or person in
the satisfaction of needs and wants. In this study, it is measured in terms of basic necessities, leisure
activities and miscellaneous expenses.

\
 CHAPTER II

CONCEPTUAL FRAMEWORK

Advantages of financial literacy and

spending habits

The implications of Correlated spending

habits of grade 11 Students to their
financial literacy

-Grade 11 students are capable of -If future generations can understand -Secured financial needs in case of
empowering individuals to make the big picture of personal finance emergency
smart financial decisions and investing, new generations can
-Avoid poor financial decisions
thrive financially

Self-restraint Self-discipline Avoidance of temptations

The input of the study concentrates on the group's subject, which is related to the financial literacy of
students in Grade 11. The following structure emphasizes the beneficial factor of financial literacy,
which includes the ability to learn and apply a range of financial competencies, which could involve
personal financial management, budgeting, and long-term investing. The three boxes beneath it
possess as the the positive attributes that the researchers intend to focus keenly to. As most students
still rely on their parents for financial support, it is essential to learn how to manage money prudently.
Making a budget, keeping track of expenses, and taking on side employment are some essential stages
to achieving financial literacy. Additionally, there are three boxes to the right where sustainable
finances provide perks like self-control.
REVIEW OF RELATED LITERATURE

The correlation between spending habits and financial literacy among Grade 11 students has
been a topic of interest in recent years. Several studies have been conducted to examine the
relationship between financial education and financial literacy among high school students. One study
found that financial education had a positive impact on financial literacy, social equality, and higher
income. Another study used a natural experiment to compare students who received financial
education to those who did not. The results showed that financial education had a positive impact on
financial knowledge, attitudes, and behavior. A researcher examined the impact of a personal financial
management course on high school students. The results showed that the course had a positive impact
on financial literacy, with students reporting increased knowledge and confidence in managing their
finances. It also assessed the relationship between an undergraduate financial literacy course and
student financial status, retention, and graduation rates. The results showed that the course had a
positive impact on student financial status, with students who took the course having lower loan
acquisition rates and higher retention and graduation rates. Low levels of financial literacy have been
found to be correlated with ineffective spending and financial planning, as well as expensive
borrowing and debt. Therefore, it is important to promote financial education among high school
students to improve their financial literacy and help them make informed financial decisions. In
conclusion, the literature suggests that financial education has a positive impact on financial literacy
among high school students. Further research is needed to examine the long-term effects of financial
education on financial literacy and behavior

Teenagers performed an emotional maturity research that concentrated on recognizing and

controlling emotions/actions. It tries to assess pupils' emotional maturity in higher secondary schools.
The emotional maturity scale (EMS) is used to assess a student's emotional maturity.

School curriculums and educational resources may provide insight into financial literacy
education for high school students. It may also be helpful to consult with experts in the field of
financial literacy and education to gather more information and guidance on how to approach this
analysis. Students in high school aspire to be self-sufficient adults, and the parents are well aware of
this because they have been through it once. Some students may get distanced from parents in high
school when entering the world and do many things on their own, and instead of questioning, on their
phase of development will do what they wanted. based on the study, if an adolescents are reasonable,
elders will always say yes if asking for permission to stay out later than usual due t the fact that the
parents don’t want them to grow in distance any farther. Remember to focus on what is valuable, to be
compassionate, and to express your desires and needs clearly the next time you are seeking for
methods to grow more independent and gain the trust of adults in your life. A study on emotional
maturity was conducted.

Managing on spending money has shown to be a growing issue, particularly within American
culture. Within the first three months of 1999, consumer spending increased by 6.7% while savings
reached an all-time low of -0.5% (Roberts & Jones, 2001). At an early age, individuals are exposed to
various methods of handling personal finances, which can often lead to the development of poor habits
(Gutter, Garrison & Copur, 2010). It is not until the university level where most consumers begin to
experience a large degree of financial independence.

Attaining money has become especially important to college students, a generation of

individuals raised in a credit card society (Roberts & Jones, 2001). As they grow accustomed to this,
students develop own beliefs regarding spending and saving habits, many of whom have little regard
for incurring debt (Pritchard, Myers & Cassidy, 1989). Having easy access to credit allows students to
delay paying off purchases, resulting in large debt balances. While the majority of studies have been
conducted in the United States, few researchers have expanded the scope of this topic across various
cultures including Malaysia

According to (Sabri & McDonald, 2010),  Controlling for correlates of financial literacy,
multivariate analysis of a sample obtained at 11 colleges and universities demonstrated that students
who had higher financial knowledge test scores were more likely to report savings behavior and also
reported fewer financial problems.

The influence of childhood consumer experience and financial socialization agents on savings and
financial problems was more mixed, indicating that financial experience before college may create bad
habits or poor attitudes toward financial management that could be mitigated through financial
education during college. Implications of these findings for targeting financial education on particular
kinds of students are discussed.

The further analysis of spending habits among young adults can help identify methods to
resolve common issues that may arise as well as develop strategies that promote better financial
practices. This study utilizes an original survey distributed to students at Skidmore College, a private
Liberal Arts college located in upstate New York. The survey captures demographic 5 characteristics
and personal attitudes toward spending and saving.

Particular attention is drawn towards connecting existing economic theories of consumption to

the behaviors of senior high students, as limited research has been conducted in this realm of personal
finance. The data collected includes numerical as well as descriptive statistics that provide insights
into certain class years, ethnicities and gender that tend to spend more over others. It was found that
overall spending has fluctuated more than savings over the course of one’s career, so the focus of this
study is on average monthly spending.

Spending money is a common activity, and research demonstrates that individuals in the United
States spend approximately six hours each week shopping. Some individuals, however, have problems
controlling the time and money they spend shopping. The majority of adults with problem shopping
report that their behavior began during adolescence. Adolescence is a period during which many
people often acquire their first credit cards and have disposable income. In fact, adolescents between
the ages of 12 and 17 years of age spent $112.5 billion in 2003 alone. Approximately 40% of
teenagers have savings or checking accounts in their own names, and one-third of high school seniors
have a credit card of their own or one co-signed by a parent. Although shopping may be fairly
common among adolescents, it is unclear how many adolescents experience problems with shopping.
Problem shopping has been relatively understudied across the lifespan and particularly in adolescents.
In the present study, we assessed a large sample of public high school students regarding shopping
behaviors. Although previous research suggests that compulsive shopping and other addictive
behaviors may be linked, no study has systematically examined the relationship of problem shopping
to a range of behaviors and health was functioning. For purposes of this study, researchers chose to
examine problem shopping behavior using questions adopted from the Minnesota Impulsive Disorders
Inventory (MIDI) that were meant to capture core and related features of an impulse control disorder
as related to shopping. Previously we investigated impulse control disorders in adult and adolescent
psychiatric inpatients. Researchers found that compulsive shopping was frequently reported in both
the adult and adolescent groups, co-occurred with a broad range of psychiatric disorder (both
internalizing and externalizing), and was acknowledged particularly frequently by females.

According to Researchgate.net (2020), A researchers found a positive relationship between

financial education and financial literacy among high school students. Another study compared the
spending habits of senior high school and college students during the pandemic. A survey of high
school students in Southern California found that financial attitudes improved after eight class periods
of financial education. A study examined the relationship between a personal financial literacy course
and student academic success and economic status. A study found a correlation between financial
literacy, consumer debt, and financial behavior among high school students in the United Kingdom.

Research suggests that financial literacy is correlated with higher per capita income and social
equality. There are also studies that investigate the spending habits of high school students and the
impact of financial education on financial attitudes. A conceptual framework has been proposed to
study the relationship between financial literacy and spending habits. Additionally, evidence suggests
that the majority of high school students have not been exposed to a financial literacy course.
Therefore, it is important to provide financial education to high school students to improve their
financial literacy and spending habits.

Several studies have explored the relationship between financial literacy and spending habits
among high school students. One study found that financial literacy is correlated with higher per capita
income and social equality. Another study surveyed high school students in Southern California and
found that there was an improvement in financial attitudes after eight class periods of financial
education. A third study assessed the relationship between an undergraduate financial literacy course
and student financial status and found a positive correlation with loan acquisition, retention, and
graduation rates. A comparative study about the spending habits of senior high school students found
that they are likely to spend more money during the pandemic. Parental involvement was also found to
have a significant influence on financial literacy

Based on Smartcapitalmid (2023), the characteristics of student spending generally include

greater money spent on food, entertainment, electronic devices, and personal care products. Teenage
spending often involves cash spent on clothing, music, movies, and video games. While many college
students spend money on these same items, their expenses are often larger for this category of
students.

Teenagers usually have access to food at home, so the bulk of their spending tends to revolve
around entertainment and clothing. The teenage years present social pressures related to fitting in with
peers and preserving a specific image. Wearing the right brand-name clothing and shoes as well as
keeping up with the latest fashion trends is a large part of creating and preserving this image. Teenage
spending also often includes purchases of video games and music. These items are common
components of social activities and interaction among teenagers.

Here’s a list of typical categories that high school students may spend their money on.

1. Food
2. Clothes
3. Electronics
4. School Supplies 
5. Extracurricular Fees
6. Transportation
7. Special Occasions/Fun
8. Savings

Additionally, students often have to pay for transportation to get to school in the form of
gas or bus fees. Special occasions, such as prom or an academic banquet, require even more
money to attend.

REVIEW OF RELATED STUDIES

The type of state-of-the-art (SotA) review had been applied in this research. This kind of
literature review occupies chronologically ordered synthesis to outline the progression of significant
events in researchers' understanding of a phenomenon in order to contextualize a description of current
scientific thinking on the subject and offers directions for future research on the topic.

This review of associated studies acknowledges the notion and theories of financial budget
planning and control from many books and references that the researchers used to provide
supplemental data. Regarding the attainment of the objectives and completion of the study, a review of
relevant literature and studies, locally and globally, was done.
 By developing a framework and using appropriate research techniques, this research can
provide valuable insights into the financial literacy of high school students and help improve financial
education programs.

There are several studies related to financial literacy and spending habits of students. One
study found that financial education improves financial literacy, which is positively correlated with
better financial habits. Another study investigated how students perceived an engagement in an
experiential learning project with a focus on financial literacy. A third study examined the effect of
financial literacy level on spending behavior of young adults. Prior studies of high school students
consistently showed that students were not receiving a good education in personal finance.
Additionally, some states require high school students to complete a personal finance course

According to (emerald), Students also serves to validate the money attitude scale (MAS)
using an sample. Compulsive buyers are more likely to perceive money as a source of power and
prestige. Students are also more frequent users of credit cards and are more likely to bargain hunt.
There are no differences between compulsive and non‐compulsive buyers for the dimensions of time
retention, distrust, and anxiety The study has only captured young adult, and should not be generalized
across other demographics and national consumers. Studies on compulsive behaviour of online
shopping and a comparison between fashion and non‐fashion related variables could also be explored.

Based on annuity.org (2023), to be financially literate is to know how to manage money. This
means learning how to pay bills, how to borrow and save money responsibly. Take the initiative to
self-educate and grow your financial knowledge, by beginning with the basics of money management
and maturing into a smart spender. Putting time into a financial development improves saving and
investing decisions.

By leveraging resource like age, talent, money and the ability to establish good habits young
ones can build a long-lasting nest egg. Managing money is a personal skill that benefits a atudent
throughout life, and not one that everybody learns. With money coming in and going out, with due
dates and finance charges and fees attached to invoices and bills and with the overall responsibility of
making the right decisions about major purchases and investments consistently it’s daunting. Pupils
would think that managing own money requires a fundamental understanding of personal credit and a
willingness to embrace personal responsibility. That is, students pay bills in a timely manner and not
to drown in debt. Student must accept the fact that sometimes still has to sacrifice immediate demands
and desires for long-term gain. As a student, budget, save, and protect savings. When students spend,
one must spend wisely. When students make big purchases, do so for things that are worthwhile.

CHAPTER III

RESEARCH DESIGN

To implement the various elements of the spending habits and financial literacy of Westbridge
Institute of Technology Inc.'s Grade 11 students, the researchers of this topic chose a descriptive
study. A descriptive research aims to accurately and systematically describe a population,
situation or phenomenon. It can answer what, where, when and how questions, but not why questions.
A descriptive research design can use a wide variety of research methods to investigate one or more
variables.

The descriptive Based on prior studies, a framework may be created to conduct research on the
relationship of spending habits of Grade 11 students to their financial literacy in Westbridge Institute
of Technology Inc. One possible source of information is a comparison study on how senior high
school and college students spent their money during the pandemic.
 A study on financial literacy among senior high students can provide insights into research
approaches. It is also possible to analyze other studies that examine the relationship between spending
patterns and financial literacy. Primary data might be gathered for the study through surveys or
interviews, and observations. The study can concentrate on figuring out spending patterns, financial
literacy, and the variables that affect both.

SAMPLING DESIGN

The stratified sampling strategy was employed in this study to determine the observation of the
study. Generating an accurate sample via a population by segmenting it into groups or stratification
and choosing specific percentages of persons from each stratum is the main goal of stratified sampling.

This strategy ensures that the sample reflects the diversity of the community of interest while
also capturing significant population characteristics. When a researcher seeks to comprehend the
current relationship between two groups, stratified sampling is especially helpful.

DATA GATHERING INSTRUMENT

The researcher of this study chose observation as a data gathering instrument. Observations can
be overt or covert. Observational research is said to have adequate reliability since it helps the
researcher to get thorough information on a certain behavior. The researchers will conduct an
observation of journals, legitimate articles and journals.

Observational research allows the researchers to witness what happens in a natural situation,
which may offer insights that other research methods, such as surveys or focus groups, cannot supply.

Financial education is needed to pupils so they can learn how to manage their money
effectively. Financial education can help students comprehend the importance of budgeting, saving,
and investing for their future. Adolescents can also provide practical tips on how to manage money
effectively, such as how to avoid overspending, how to build good credit, and how to plan for future
financial goals.

From formal education programs, there are many resources available online that can help
students learn about financial literacy. Websites like the National Endowment for Financial Education
(NEFE) and the Jump$tart Coalition for Personal Financial Literacy offer free resources and tools to
help students learn about personal finance. By extending financial education to pupils, this study can
help develop healthy financial habits that will serve well throughout student’s lives. Students will
enhance to manage their money, make informed financial decisions, and build a more secure financial
future.

DATA GATHERING PROCEDURE

This study used online tracking and social media monitoring. Byt employing this type of method
for gathering data, the researchers will be able to identify the intended audience and examine internet
behaviors and discussions. Social media monitoring tools like Hootsuite, Mentionlytics, Brandwatch,
and Sprout Social can assist in tracking discussions, mentions, reviews, or keywords connected to a
specific topic or business.

The researchers also chose social media monitoring, because it is useful by keeping updated on
the internet. Furthermore, social media monitoring can provide insights into a target population's
behavior and preferences, which can inspire marketing strategies and product development. It can also
provide real-time data and insights to help manage a brand's social media presence.
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