Republic of the Philippines

DEPARTMENT OF EDUCATION
Region 1
School Division of Ilocos Sur
Narvacan National Central High School
Paratong, Narvacan, Ilocos Sur
S.Y 2023-2024
SENIOR HIGH SCHOOL

Perceived Effects of Inflation towards the Allowances of Grade 12 Accountancy,

Business, and Management (ABM) Students

A Quantitative Research Paper

Presented to
The Faculty of Senior High School
Narvacan National Central High School
Narvacn, Ilocos Sur

In Partial Fulfillment
Of the Requirements for the Subject
Practical Research II

Edward Justine C. Torres

Edmylyn S. Pira
Eric D. Camarillo
Mikaela Joan A. Escobar
Maryeen Ruth M. Montero
Arvin C. Salvador
Daniel A. Respicio

Accountancy, Business, and Management

2023
 Chapter 1

THE PROBLEM

Introduction

Over the past few years, several developed and developing countries have been

persistently experiencing fluctuation of prices in different sectors of the society due to global

economic crisis known as inflation, causing adverse effect on the lives of individuals and

households in profound ways. In the context of the Philippines, as an emerging economy in

Southeast Asia, has witnessed fluctuations in its inflation rate for its far-reaching implications

on the Filipino citizens. According to the statistics of Trading Economics (2023), starting

from January 2016, when the inflation rate in the Philippines was a modest 0.7%, it climbed

to 6.7% by October 2018, and further escalated to 8.7% in January 2023. This places it as the

highest among the ASEAN countries.

As defined in the study of Avila and Gatpolintan (2019), inflation is the overall

increase in the prices of goods and services leading to a fall in a nation’s currency’s value and

its purchasing power. Inflation affects the financial capability of individuals and households,

impacting their ability to afford basic necessities such as food (Fujii, 2013), transportation

(Akhyar et al., 2023), shelter (Louie et al., 2023), and healthcare system (Akbarian et al.,

2013). The result of Illes’s study (2010) also indicated that it affects businesses, as they must

navigate increased production costs and potentially reduced consumer demand. Through this

financial problem caused by fluctuations of prices, some consumers’ ability to purchase

relatively reduced due to increased costs for acquiring goods and services.

Inflation reduces the purchasing power of individuals, leading to social and economic

instability in an economy (Zou, 2014). This conclusion has been supported by various
studies. Mankiw’s findings (2007) found that inflation is harmful to long-term economic

growth, emphasizing in reduced quantity of goods and services as the overall price level rises,

and Adelowokan and Maku (2013) identified economic costs of inflation, such as a lower

standard of living and distortions in economic decision-making regarding investments,

savings, and production, ultimately resulting in slower economic growth. Inflation has

undeniably been exerting adverse effects on the global economy ever since its emergence

until the present days as the economy continues to grow.

According to Ha et al. (2021), back in the 1900s, global inflation saw its roots in

various economic and geopolitical factors which evidently felt sharply from its 1974 peak of

16.9%. Fast forward to today, inflation has gained renewed attention due to various global

events, including the Covid-19 pandemic, the Russia-Ukraine conflict and other factors. The

study’s findings argues that as a result of the widespread economic disruptions triggered by

the COVID-19 pandemic, global inflation began to increase during the pre-pandemic levels,

resulting to reduced productions of commodities leading to fluctuation of prices. The

aftermath of Covid-19 pandemic triggered inflation due to high rate of unemployment, low

production of supplies or commodities to meet the demands of consumers and the overall

reset of businesses, affecting the explosion of prices.

On the other hand, Russia's full-scale invasion of Ukraine triggered inflation in oil

and energy prices globally, affecting trading and importing activity with the countries in

conflict, as well as the increase in the price of essential commodities worldwide. Given its

high reliance on oil imports, this spike in oil prices had a notable impact on the cost of living

and contributed to inflation (Maurya et al., 2023; Khudaykulova et al., 2022). Although the

recorded percentages of inflation rate in recent times was lesser compared in prior decades,

the impact on countries with lower middle-income, such as the Philippines, is still apparent,
resulting to adverse consequences in their economic situation and its citizen’s financial

strength.

Certainly, several factors, both international and domestic, have contributed to this

persistent increase in inflation which currently being faced by the Philippine economy,

affecting individuals across all social classes and professions. Workers and business owners

are typically the ones who are popularly connected with price increase knowing its result in

their incomes and purchasing power. Many studies have proven the result of inflationary rate

on financial capabilities of professionals and businessmen.

However, other consumers such as those outside the labor force have been

disregarded about the inflation’s effect on their daily basis, knowing the lack of

comprehensive literatures addressing their specific experiences on this economic crisis and

how it impacts their financial well-being. Among those non-working consumers who are

particularly vulnerable to the impact of inflation are students.

Students are component of a population affected by the price hike considering its

extensive impact on their allowances. Learners pursuing higher education levels, which often

require financial stability to thrive and succeed in their academic journey, are the ones who

keenly experience the difficulties and obstacles brought about by the bearing of inflation.

Students rely heavily on their allowances to cover a range of educational expenses

including tuition fees, textbooks, specialized training, and project materials, transportation

fees, food and beverages, and other miscellaneous needs. As mentioned by Bansal et al.

(2020), school allowance, which pertains to financial support for students during their

academic journey, holds great importance as it directly impacts their ability to acquire

necessary materials for specific subjects. The abovementioned literature added that allocation
of funds for students can significantly influence their motivation and dedication to their

studies; thus, lowered amount of allowance impacts their academic life.

Parents are the ones providing financial support, and it plays a pivotal role in the daily

experiences of a student's school performance, making the socioeconomic status of

households a determinant of students’ capabilities. A study reveals that students having a

high socioeconomic status have a good exposure and surroundings giving a good result as

compared to low socioeconomic status (Azzimudin & Chandra, 2013). As a result, students

with low-income household may struggle to afford all the necessary school resources,

hindering their ability to concentrate on their studies. On top of that, inflation exacerbates the

problem further.

Accordingly, as inflation outpaces the growth of allowances, it places students and

their families in a more precarious financial situation. This not only jeopardizes their

academic pursuits but also raises questions about the accessibility and equity of specialized

education. Hence, despite the fact that while inflation's impact on the consumers’ income and

purchasing power has been widely examined in foreign and domestic publications. To

support this, existing research, such as the findings of Avila and Gatpolintan (2019), has

discovered the impact caused by inflation on secondary teachers, while Akpaeti et al.’s study

(2019) stated its effect on farmers’ income and agricultural investments, which are aligned

for workers. As stated, it is clear that a notable scarcity of research dedicated to

understanding the challenges of non-working consumers like students brought by the current

implications of inflation has not been widely examined. None of the past studies have

addressed the effect of inflation on students and their allowances, specifically in specialized

strands including Accounting, Business, and Management (ABM). Existing studies often lack

granularity when it comes to understanding the specific effect that these students face in

maintaining their educational pursuits amidst inflationary pressures.

 The present study, therefore, focuses on a specific aspect of inflation for which the

possible effects on students’ allowances in the ABM strand from Narvacan National Central

High School and Santa Maria National High School have not been previously considered.

With this, ABM students can greatly benefit from these assessments by becoming more

insightful regarding the consequences of inflation on their allowances. Furthermore, it aims to

analyse the extent to which inflation affects the financial well-being of ABM students, their

educational opportunities, monetary decisions and overall quality of life. Additionally, by

shedding light on this critical issue, the study seeks to provide valuable insights for

policymakers, educational institutions, organizations and the students themselves dedicated to

supporting them in navigating the economic impact of inflation.

The research ultimately intends to inform targeted recommendations and informations

that ensure students in the ABM strand can access specialized education without undue

financial hardship, even in the face of inflationary challenges.

Statement of the Problem

This research study will generally focus on determining the inflation’s effect on the

allowances of Grade 12 ABM Students from selected schools in the 2 nd district of Ilocos Sur,

particularly from Narvacan National Central High School (NNCHS) and Santa Maria

National High School (SMNHS).

Specifically, it seeks to answer the following questions:

1. What is the demographic profile of student in terms of;

a. age,

b. sex,

c. location,
 d. monthly income of parents, and

e. daily allowance?

2. What are the perceived effects of inflation rate to the ABM students in terms

of;

a. attendance,

b. academic performance,

c. school-related expenses?

3. What are the changes on the ABM students’ utilization of allowances in terms

of;

a. spending,

b. preferences,

c. quantity of consumption,

d. income supplements, and

e. savings?

4. Is there a significant relationship between the ABM students’ perceived effect

of inflation and their allowances?

Scope and Delimitation

The primary objective of this study is to determine the relationship between inflation

and the allowances of Accountancy, Business, and Management (ABM) students.

Additionally, it aims to assess ABM students' perceived effects of inflation on their

utilization of allowances.

This study will revolve solely on Grade 12 ABM students from selected schools in the

2nd District of Ilocos Sur, specifically Narvacan National Central High School (NNCHS) and

Santa Maria National High School (SMNHS). Using the total enumeration sampling, the
study will cover a total of 70 students enrolled in the aforementioned academic track during

the school year 2023-2024, comprising 29 students from NNCHS and 45 students from

SMNHS.

It will cover the profile of Grade 12 ABM students particularly from NNCHS and

SMNHS which includes the age, sex, location, monthly income of parents and daily

allowance. On the other hand, the perceived effects of inflation rate to the ABM students will

also be measured and it will be delimited to students’ attendance, performances, and school-

related expenses.

The changes in the ABM students’ status on their utilization of allowance will also be

looked into. The factors in students’ allowance will be delimited to spending, preferences,

quantity of consumption, income supplements and savings.

The study will employ the descriptive-correlational research to determine the

relationship of inflation and allowances of Grade 12 ABM students. The primary instrument

for data collection to be used will be structured questionnaire-checklist for respondents to

respond, adapted mainly from Avila and Gatpolinta's study (2019) with the research title

“Perceived Effects of Inflation on Budget Consumption of Public Secondary School Teachers

in Ragay, Camarines Sur, Philippines.”

Theoretical Framework

The concept that the researchers developed in order to help with the research issue

focuses on the students’ perceived effects of inflation that should be used to unravel its

enigma on their allowances. While the method is operating, the analysis and interpretation of

the input parameters will be presented. The present study's end output is to establish a

connection between students' perceptions of inflation, adapted from NNCHS and SMNHS

Grade 12 ABM students, and its effects on the changes of allowance usage.

To fully comprehend the significant influence of inflation rate on ABM students' allo

wances, it is essential to delve into the possible perceptions of these learners and its impact o

n their financial well-being. Inflation, according to Zou et al. (2011), affects the financial

capability of households, impacting provision of funds to their families. Bansal et al.’s study

(2020) contend that since school allowances carry significant weight as they directly affect

students' capacity to procure essential school materials, parents or guardians should provide

needed allowance in order to profoundly shape students motivation and commitment to their

studies. In the findings of Azzimudin and Chandra (2013) mentioned that reduced allowance

caused by low-income household can have a detrimental impact on their academic pursuits,

especially amidst the inflation’s adverse effect. Every ABM students, therefore, should be

insightful in their allowance utilization during inflation’s growth to avoid financial setbacks.

There are numerous local and international studies have been conducted, primarily focusing o

n the considerable inflation-related consequences affecting consumers, such as students.

Independent factors that contribute to the effects of inflation include the learners'

demographic profiles and their perceived assessments of the previously stated issue.

Dependent variables, such as students' allowances, illustrate what may change in their

allowance utilization based on the prior variable. In the context of inflation, this framework
will serve as a guide to identify the classifications of students' perceptions that will be

measured, as well as the areas where students encounter financial adversities. As a result, this

study will address both the tangible effects of inflation and the financial outcomes it has on

ABM students' allowances after they have experienced this economic crisis in order to assess

the variables’ interconnections.

Foreign Studies

Inflation Theories

According to Fernando's built-in inflation theory (2022), inflation happens when

workers demand raises to keep up with rising living expenses. The result is a self-reinforcing

cycle of salary and price increases as businesses increase their pricing to match their rising

cost of goods sold. Adaptive expectations, or the notion that individuals anticipate present

inflation rates to persist in the future, are related to built-in inflation. People may anticipate

an ongoing increase at a similar rate in the future as the price of products and services grows.

Workers may therefore request higher costs or wages in order to maintain their standard of

living. Their higher salaries raise the price of products and services, which perpetuates the

wage-price spiral in which one component causes the other and vice-versa.

Demand-pull inflation theory, on one hand, describes circumstances in which there

are not enough goods or services being produced to meet demand, leading to an increase in

their prices. Demand-pull inflation is when the economy's overall demand for goods and

services rises more quickly than its ability to produce them. This happens when the

availability of money and credit increases. Due of the increased demand, prices will rise

(Fernando, 2022).

Inflation Perceptions
 Various studies have been conducted to determine the inflation perception of

consumers such as students. Under this section, the researchers discussed some of the related

literatures on the topic.

One of the international related studies gathered entitled as Investigation of the

Factors Affecting Inflation Perceptions: A Case Study on Business and Economics

Undergraduate Students by Durukan et al. (2022), revealed the factors behind the inflation

perceptions of undergraduate students of economics and business, such as education, socio-

demographic conditions, cognitive abilities, financial situation and consumption habits. The

study at hand investigates the roles of these factors on the formation of the inflation

perceptions of undergraduate students. The findings implied that economic literacy, financial

situation, gender, the degree of trust regarding official measures of inflation, and purchase

frequency of goods influence inflation perceptions significantly.

Another gathered study by Del Giovane et al. (2009) entitled as What’s Behind

“Inflation Perceptions”? A Survey-Based Analysis of Italian Consumers. The study

investigated inflation perceptions, and their relationship with factors likely to affect them.

The study’s results shows that reported inflation perceptions are higher for women, the

unemployed or non-working such as students and less educated individuals, as well as for

consumers with some forms of financial distress. A very low knowledge of the inflation

concept and an inaccurate memory of past prices turn out to play a significant role in

explaining the highest class of perceptions. These findings imply that consumers' perceptions

of what they refer to as "inflation" are influenced by a variety of forces that go far beyond

those captured by official inflation statistics.

A study of Detmeister et al. (2016) titled Inflation Perceptions and Inflation

Expectations collected by the researchers argues that insight may come from better
understanding individuals' perceptions of recent inflation—what consumers think inflation

has been in the past. Inflation perceptions vary by gender and income, and age. Even

controlling for demographics, respondents with higher perceived inflation also tend to expect

higher inflation, suggesting that changes in inflation perceptions could lead to changes in

inflation expectations as well.

In connection to these related studies, the current research is guided by possible

results in the perceived assessments of ABM students on inflation’s effect. The given

researches are also the basis for the variables to be utilized, as well as foundation to

determine the correctness of the present study. In addition, the socio-demographic profiles

indicated on the gathered studies will employ as a tool to verify the outcome of ABM

students’ profiling in terms of the inflationary consequences.

Inflation on Education

As stated in the study’s collected findings by Bhattacharjee (2017) with a title Impact

of Inflation on Education, the inflation affected the allowances of students for it is observed

from their survey report that inflation or price hike is closely related with education. It was

observed in the study that the higher class have more inspiration while the lower class

struggles with the inflation, affecting their academic performances because price hike has

created various hurdles in maintaining their livelihood and their parents are unable to provide

suitable education to their children. Those low-income households continually experienced

rising costs of everything, especially the educational-related expenses such as tuitions fees,

books and notebooks, uniforms conveyance, coaching classes, transportation bills and food

expenses.

The study of Obiakor (2021) titled the Impact of Inflation and Economic Recession

on Education of Secondary School Students in Oji River Educational Zone of Enugu State,
also indicated the implications of inflation on education. The study implied that it is pertinent

to note that inflation drastically affected the education sector. Parents, guardians, and teachers

have had their purchasing power dropped, and as a result, it has affected the purchase of

books and educational materials and the exodus of learners from more expensive schools to

less expensive ones since parents can no longer afford it. For Nigerian students, some parents

cannot afford two square meals, let alone pay their children's school fees. Teacher’s truancy

to school: students fail external exams and engage in all sorts of malpractices. This implies

that the economic meltdown caused by inflation in Nigeria led to a falling standard.

The findings of a study by Musa (2023) entitled as Influence of Inflation on Business

Education Undergraduate Students’ Ability to Incur Indirect Costs of Studying in Tertiary

Institutions in Rivers State, indicated that three specific negative influence posed based on the

proxies of inflation are transportation, food and accommodation, affecting students' ability to

incur indirect costs of studying in Tertiary Institutions In Rivers State. On the part of

transportation and accommodation, consequences in the attendance of the students to lectures

as well as the kind of accommodation they secure for their living off campus where hostel

provision is insufficient. While in the matter of food, inflation caused negative influence on

students’ three-square meal, nutrition level and the energy needed to move around for

lectures as well as memory needs for recall.

Additionally, another study by Mulhern et al. (2015) entitled as the Effects of Rising

Student Costs in Higher Education: Evidence from Public Institutions in Virginia mentioned

that higher education faces an unstable financial and academic future. At the same time, an

unprecedentedly challenging landscape is being experienced due to inflation. The risk is most

evident in the ever-increasing tuition of students’ colleges and universities charge. With

regard to this, higher prices mean fewer families can gain the education and training they

need to grow and prosper in their communities. Thus, the tuition of the Virginia higher
education affects not only the students' allowances but also the families from deeper into the

middle class as they find it difficult to afford college education with the contribution of

inflationary pressures.

An additional collected study by Ireton (1975) entitled a Study of the Effect of

Inflation on Public School Education in Oklahoma has verified that inflation has had and is

having effects on education programs in the state of Oklahoma. Inflation has affected

Oklahoma school districts and the students attending Oklahoma schools regardless of the size

or geographic region, which is either directly or indirectly influenced reduction in certain

programs and budget items. The study also indicated that inflation’s effect has been a

contributing factor to the decreased purchasing of instructional supplies. However, effects of

inflation are not all negative since individuals become more aware of expenditures and the

need for prioritization of purchases as a result of inflation. More effective management

procedures are 1ikely to result from these conditions.

These related studies suggest that inflation incredibly caused implications on students

due to increased educational-related expenses. Thus, the linkage of the aforementioned

studies on the present research involves the correlation of inflation and students in terms of

altered allowance usage and academic journey.

Local Studies

Inflation and Students’ Allowances

According to the study conducted by Carbonel and Labbutan (2022) with a title

Money Management and Difficulties among Laboratory High School Students in Kalinga

State University, the findings mentioned that students' level of financial knowledge was

moderate. Some of the areas where they are less knowledgeable include the topic of inflation

rate, allowances, savings, and such. As a result, in the conclusion of the study, it is
recommended to support the need for personal financial education most especially extending

help on areas where students have less knowledge like inflation rate as against savings and

allowances. Therefore, in relation to the present study, the researchers’ topic is to determine

the effect of inflation on students’ allowances, building a bridge of insights for those learners

incapable of managing financial concerns, as well as those who are interested in finding out

the interconnection of inflation and change in student allowance utilization.

To support the abovementioned research, the study by Fornero et al. (2018) entitled

“Four Bright Coins Shining at Me” Financial Education in Childhood, Financial Confidence

in Adulthood also implied in the findings that individuals who received regular allowances in

their early youth are also more likely to become financially knowledgeable adults. The

study’s conclusion is supported by the relation between receiving such an allowance and

knowledge about inflation in adulthood. These results provide evidence for the significance

of imparting fundamental financial literacy to students in order to not only provide crucial

financial knowledge and assist them in developing some planning skills, as well as some

solid, long-term financial practices.

Another study by Aquino et al. (2022) titled as Cash Assistance Budgeting Behavior

of Students of Cagayan State University Andrews Campus, determined the expenditures of

students in their allowances include food, shelter, health and especially the educational bills.

Due to many expenses, most students face difficulties in their given allowance. As a result,

financial allowance of the students helps in controlling their spending habits, prioritizing

which they spent most on like basic needs followed by academic purposes. Relating to the

current research, this study gave the researchers the significant impact of allowance on how

students revolve in their academic life amid being affected by inflation.

 In contrary, the researchers gathered a study by Marijune and Moneva (2020) entitled

Students' Level of Financial Support Satisfaction towards their Daily Allowance, which

determined the association of the students' level of financial support satisfaction and their

daily allowance. The study’s findings revealed that level of financial support satisfaction does

not influence students’ daily allowances. It was established that some demographic

parameters that affect students' financial support did not have an impact on satisfaction. This

merely suggests that regardless of how effectively a student manages a financial resource,

including their attitude toward spending and how high or low their daily allowance can be,

the amount of financial support satisfaction cannot be changed. Through the usage of the said

study, the researchers can examine if the amount of financial assistance will still have no

effect on students' daily allowances despite rising inflation.

Inflation’s Impact on Students’ Allowances Utilization

One of the related studies that the researchers had also gathered was the Perceived

Effects of Inflation on Budget Consumption of Public Secondary School Teachers in Ragay,

Camarines Sur, Philippines by Avila and Gatpolintan (2019) in Polytechnic University of the

Philippines – Ragay Branch. The research determined teachers’ perceptions on inflation to

understand its impact on the changes of their budget consumption and decisions. The study

shows the adjustments of public secondary school teachers in their financial and budgeting

capabilities, such as escalation of household and personal expenditure, substitution of

preferences, reduction of quantity of consumption, engagement in income-generating

activities, and realization of less savings. In relation to the researchers’ study, this related

study gave an idea about the classifications of changes in allowance utilization due to

inflations’ effects and the possible choices that will be given to respondents. The study

determined the perceived effect of inflation on teachers, which the researchers replicated by
applying to students. The given research provides an insight of what perceptions will be

ranked as number one when it comes to the students’ viewpoint on inflation.

Inflation on ABM Students

Another study that the researchers collected by Ceron et al. (2022) entitled as How

Inflation Rate Affects the Daily Budgeting Allowance of Grade-12 Academic Track of

Pamplona National High School in Camarines Sur, Philippines. The study was conducted to

determine the effect of inflation in the budgeting allowance of STEM, ABM, and GAS

students. In the findings, affected areas in the Grade 12 academic track learners caused by

inflation rate were revealed. These areas include Students’ Attendance, Academic

Performance And School-Related Expenses, which shows that students with specialized

educations are greatly impacted by the fluctuations of prices. In the context of the current

study, the researchers are also conducting the affected areas of inflation through its

implication on ABM students’ allowances. The given study gave an insight on what part of

students education and allowance had been affected the most.

An additional study compiled by the investigators entitled as Budgeting Strategies and

Its Impact to the Financial Decision-Making of Grade 12 ABM Students in Bestlink College

of the Philippines by Deloso et al. (2019) is interconnected to the abovementioned study. This

research shows the differentiated areas influenced by inflation rate, including School

Expense, Food, Savings, and Other Expense/Wants. The study is related to the present

research for all the studies indicated effects of inflation rate on different variables regarding

its outcome on the ABM students allowance and to their academic performance.

Past researchers have revealed the connection between inflation and students. These

previous studies are likely to have shortcomings and inapplicable data that have to be altered

to suit specific benefactors, current issues, and contexts. Therefore, this present research
would provide relevantly new information to acknowledge the notable gap in the relationship

of inflation and students’ allowances, particularly in their perceptions and changes in

allowances’ utilization to satisfy particular beneficiaries’ needs and provide timely assistance

to be used as foundation for possible interventions.

Conceptual Framework

The study aims to determine the relationship of inflation and allowances among Grade

12 ABM students in NNCHS and SMNHS. There were four factors considered in extracting

substantial information for this study: the students’ demographic profile; the perceived effects

of the inflation rate on the ABM students; the factors in their allowance utilization that

changed due to inflations’ consequences; and to establish the relationship between inflation

and students’ allowances. Therefore, this study will utilize the IV-DV (Independent Variable-

Dependent Variable) model to show the possible connections of the study’s variables.

Independent Variable Dependent Variable

Demographic Profile of Grade Changes on the ABM students’

12 ABM students Allowance Utilization
 Age  Spending
 Sex
 Preferences
 Location,
 Quantity of consumption
 Monthly income of parents
 Daily allowance  Income supplements

 Savings
Perceptions of Inflation among
Grade 12 ABM Students
 Attendance
 Academic Performance
 School-related expenses

Figure 1. The schematic diagram of the Independent and Dependent Variables of the Study
 The Figure 1 paradigm shown above makes the present study's variables clear and

concise. The first variable in the illustration are the independent variable of the Grade 12

ABM students based on their demographic profile and differentiated inflation perceptions.

The second variable is the subject which tackles inflation’s substantial effect on the changes

in their allowance utilization. These mentioned variables are the primary focus of the

researchers to assess the relation of inflation and students’ allowances.

Operational Definition of Terms

To fully comprehend the nature of this research study, the following terms presented

are conceptually and operationally defined for the readers to indulge information properly:

Accountancy, Business, and Management (ABM). An academic track where

researchers gather data related to the effect of inflation and students’ allowances.

Allowance Utilization. This is a connected term of allowance that involves the

changes in the usage of students’ money.

Allowances. This term is the amount of money given regularly to students in order to

purchase school-related goods and services. This is a component where inflation’s

implications on students are greatly affected.

Income Supplements. It refers to students’ extra income-generating works in order to

financially regulate themselves during the inflationary period.

Purchasing Power. It refers to the students’ ability to purchase goods and services

through situations such as inflation.

Savings. The term refers to the capacity of students to allocate and budget allowances

amidst the rapid rise of commodity prices.

 Spending. This term refers to student’s expenditures, which in particular, the higher

expected rate of inflation will result in a higher expenditure on goods and services.

Preferences. This term indicates that students’ choice may adjust whenever they find

available alternatives in order to lessen their everyday expenses caused by inflation.

Quantity of Consumption. This term refers to the amount of an item bought by

students depending on the prices of goods amidst inflationary crisis.

Students. This term refers to the respondents needed in the study due to inflations’

attribute to them. They are the primary reason the present research is being conducted and

also the beneficiary of the study’s results.

Academic Performance. It is the measurements of students’ achievement across

various academic subjects affected by the implications of inflation.

Attendance. It refers to how often students are present in schools due to

circumstances such as lack of allowances.

Inflation Perceptions. The term refers to the differentiated insight of students in

terms of the impact of inflation on their lives. Every consumer has distinctive perspective on

inflation based on the experienced complications.

Inflation. The term is being used as fluctuation of prices in goods and services. It is

the main problem being faced by the students in the study owing to its extensive impact on

their allowances.

School-Related Expenses. These are educational expenditures that have fluctuated its

prices due to inflation which are charged to students’ allowances for using in school

activities.
Assumptions

In this study, the researchers were guided by the following assumptions:

1. The respondents answered the given questions correctly and truthfully, guided

by the researchers’ objective of their study.

2. The respondents were willing to cooperate and are open to discussions.

3. The information of the chosen respondents will remain confidential and

anonymous.

4. This study will not be biased in data collection to make the outcome reliable

and valid.

5. The researchers can explore widely the connection between inflation and

students’ allowances.

Hypothesis

In taking the variables, prediction of the possible outcome of a relationship among

attributes or characteristics are made. Therefore, the research study’s testable hypothesis is

presented:

H:0 There is no significant relationship between inflation’s perceived effect and

allowance utilization among Grade 12 Accountancy, Business and Management (ABM)

students in selected school in the 2 nd District of Ilocos Sur, particularly from NNCHS and

SMNHS.
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