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SPENDING BEHAVIOR OF GRADE 12 STUDENTS

IN UNIVERSITY OF BAGUIO

Espique , Drexian

Fernandez , Alvin

Laurente , Gabriel

Saturnino , Darryl

University of Baguio Senior High School

Introduction

Money is the amount of something available or needed for particular purpose,

word that is usually associated with students and school expenses. Spending behavior has
never been stable, especially among university students. Free from the comforts of home,
many students are experiencing being on their own for the first time. One of the
challenges they face is budgeting in their money spent.

According to The Association of International Educator’s study, Students who

budget and save tended to have higher scores on the social learning opportunities indices
than those who do not budget and save.

The spending conduct of youth and their constrained comprehension of cash

administration invigorate propensities that may result to expensive budgetary errors today
and later on. The adolescent of today are developing in a society of obligation assisted by
luxurious ways of life and simple credit. It was proven that adolescence spend
significantly. It was also found out that the ethnic identities had another difference at
purchasing amounts of goods, especially on consumption goods (Villanueva ,2017). At
this present age, student’s needs have increased because laptops are required for
assignments and ventures. Propels in innovation have likewise prompted expansion of
understudy's costs. Student’s expenses are directly associated to student’s resources.
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Being wise in one’s spending will lead to improved available resources and reduced
financial problems during education in college students of Surigao del Sur State
University (SDSSU) and Saint Michael College (SMC) in Cantilan, the northernmost
municipality in the province of Surigao del Sur, Philippines.

The students in University of Baguio can practice basic money management

techniques, ABM students can feel confident about their ability to manage their finance.
There are easy solutions to help students avoid making these common money
management mistakes. students should do to gain control over their financial lives is
create a spending plan. Having a spending plan will allow students to see where their
money is going and where they can cut back their spending. Students need to concentrate
on what they really want out of life in order to help them avoid overspending.

Review of Related Literature

Koc and Ceylan (2012), stated that consumers in lower status groups spend the
biggest portion of their income on food products. He added that the highest status
consumers always check the price labels of the food products with a high
percentage(66.67 percent) before purchasing. A total of 77 percent of study respondents
stated that they were open to spend in trying new food products. Meanwhile, consumers
within the top socioeconomic groups consider food ingredients carefully before
purchasing.

According to Tew (2012), the spending behavior of students in modern times has
emerged as an essential concern in our society. He concluded that socioeconomic status
issue influences the spending behavior of the students. Koc and Ceylan (2012), stated that
consumers in lower status groups spend the biggest portion of their income on food
products. He added that the highest status consumers always check the price labels of the
food products with a high percentage (66.67 percent) before purchasing. A total of 77
percent of study respondents stated that they were open to spend in trying new food
products. Meanwhile, consumers within the top socioeconomic groups consider food
ingredients carefully before purchasing.
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According to a research of Westwood College in US (2015) most of the seniors

and college students budget the least of their allowance for transportation, books and
supplies but 40% on optional activities entertainment, apparel and services, travel and
vacation. Stollak (2010) stated that freshmen were much more likely to spend all their
dollars quickly than juniors and seniors. This could be due to lack of awareness of their
budget or not planning appropriately. Contrary to this, Bailey. et. al(2013) said that
juniors and seniors spent significantly more than freshmen and sophomores on recreation,
food, general merchandise and miscellaneous items. Meanwhile, Villanueva (2017)
claimed in his study that, freshmen and senior students exhibit higher spending behaviors
while sophomores and juniors exhibit less spending.

Theoretical Framework

John Maynard Keyne’s Debt, Credit, and the Life-Cycle Hypothesis

John Maynard Keyne’s LCH replaced an earlier hypothesis developed by economist in

2012. He believed that savings were just another good and that the percentage individuals
allocated to their savings would grow as their incomes rose. This presented a potential
problem in that it implied that as a nation’s incomes grew, a savings glut would result,
and aggregate demand and economic output would stagnate. Subsequent research has
generally supported the life-cycle hypothesis.

The life-cycle hypothesis (LCH) is an economic theory that pertains to the spending
and saving habits of people over the course of a lifetime. The concept was developed by
Franco Modigliani and his student Richard Brumberg in the early 1950s.

Consumer Theory

Consumer theory is the study of how people decide to spend their money based on their
individual preferences and budget constraints. A branch of microeconomics, consumer
theory shows how individuals make choices, subject to how much income they have
available to spend and the prices of goods and services. Understanding how consumers
operate makes it easier for vendors to predict which of their products will sell more and
enables economists to get a better grasp of the shape of the overall economy
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Significance of the Study

This study will benefit the following:

Students: This study could bring awareness to the students in their current
condition with regards to their spending behavior
Parents: This study will provide sufficient information on the spending pattern of
their children and can help their children save money for future
Future Researchers: Future Researchers may use the result of this study as a
reference data in conducting new research

Objective of the study

1.) To determine the spending pattern of Grade 12 students

2.) To find out the factors that affects the student in their spending behavior

METHODOLOGY

RESEARCH DESIGN

This study will use quantitative and the method to be used is descriptive because
quantitative research relies on measuring variables using numerical system to formulate
facts and uncover patterns in research. Descriptive because it enables us to easily
determine the spending pattern of every student and the factors that affects their spending
behavior.

POPULATION OF STUDY

The total population Grade 12 ABM students in University of Baguio are 242 students.
The researchers will use Stratified random sampling to identify the participants who will
be participating in the study. Using the Slovin formula the sample size will be 150
students wherein there will be 25 respondents coming from all 6 sections of the grade 12
ABM strand.
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DATA GATHERING TOOL

To obtain the data that will be needed in the research, the researchers will prepare a close
ended questionnaire. The questionnaire will have three parts: The first part of the
questionnaire is the personal information of the participants including the information
about the study, why is the study being conducted as well as the parents’ consent to be
given to the participants. The second part of the questionnaire will contain questions with
different options on how do the grade12 students spend their allowance. The third part
will consist of questions on what are the factors that affect the student spending behavior.

DATA GATHERING PROCEDURE

The researchers will ask approval from the principal of the University of Baguio Senior
High School through a letter for the conduct of the study. When the study is approved,
the researchers will ask the secretary of the University of Baguio for the names of the
students enrolled in the ABM track. Next is to give the informed consent to the students
and parent’s consent will be given who are below 18.The researchers will obtain the
inform letters from respondents and the researchers will explain the contents of the study
and its purpose. Before gathering data, the researchers will ask permission to the teachers
in charge for each classroom if they could conduct the study in class before they enter.
Once it is done, the researchers will give questionnaires to the respondents who were
given the consent to participate. The researchers will assure confidentiality regarding the
information gathered.

Treatment of Data

The collected data will be tallied manually before making a table showing the
results. The researcher will create a table consisting of the frequency and rank of the
answers. Descriptive statistics such as mean and percentage are considered in analyzing
the data.
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Sample Table:

Where do you spend your Tally Marks Total

allowance?
Food
Entertainment
Clothes

Ethical Considerations

The purpose and objectives of the study will be explained to the respondents in
order for them to understand the content of the study. Student’s permission to participate
in the study will be given through the informed consent. The researchers will make sure
that all given information will be strictly confidential and be kept, the identity of
participant remains unknown. The respondents are allowed not to answer questions that
are inconvenient for them and are also given the right to withdraw from answering the
questionnaire. After gathering the data needed in the study we will inform the
respondents about the results.
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