SAN MATEO MUNICIPAL COLLEGE

General Luna, Guitnang Bayan I, San Mateo, Rizal

Tel, No. (02) 8997- 9070
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College of Business and Accountancy

“Assessment of Perception on Household finance toward Family

Budgeting and Savings”
In Partial Fulfilment of the Requirements for the Degree
Bachelor of Science in Business Administration
Major in Financial Management.

Submitted by:

Cadupay, Lara Mae M.

Canunayon, April Joy

Dayao, Joshua P.

Dela Paz, Beatriz S.

Dela Rosa, Tricia U.

Funtanar, Mia T.

Laban, Nicole Kim V.

Lasam, Fedeliza R.

Madera, Angelika B.

Taberdo, Derrick

Tuquib, Kimberly N.

Mr. Reynaldo Salvador

Professor
Year 2021 – 2022

ACKNOWLEDGMENT

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APPROVAL SHEET

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ABSTRACT

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TABLE OF CONTENTS

Title Page

Acknowledgment

Approval Sheet

Abstract

Table of Contents

List of Tables and Figures

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Chapter 1: The Problem and Its Background

1.1 Introduction

1.2 Background of the Study

1.3 Theoretical Framework

1.4 Conceptual Framework

1.5 Statement of the Problem

1.6 Hypothesis of the Study

1.7 Significance of the Study

1.8 Scope and Limitation of the Study

1.9 Definition of Terms

Chapter 2: Review of Related Literature and Studies

2. 1 Review of Related Literature

2. 2 Review of Related Studies

2.3 Synthesis and Relevance of Related Literature and Studies

Chapter 3: Research Methodology

3.1 Method of Research Used

3.2 Source of Data

3.3 Data Gathering Procedure

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3.4 Data Gathering Instrument

3.5 Statistical Treatment of Data

Chapter 4: Presentation, Analysis and Interpretation of Data

Chapter 5: Summary, Conclusion, and Recommendation

List of Tables

List of Figures

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Chapter 1
The Problem and it’s Background
In this chapter, we will present the Background of the Study, the Statement of the
Problem, our Hypothesis, the Conceptual Framework, the Scope and Delimitation of the
Study, the Significance of the Study, and the Definition of terms.

Introduction

Today, the standard of living of people is reflected in their family budgets. A family
budget is a statement which shows how family income is spent on various items of
expenditure on necessaries, comforts, luxuries, and other cultural wants. It shows the
distribution of the family income over the various items of expenditure. In Addition, the
portion of the disposable income (or adjusted disposable income) of households that is not
used for final consumption expenditure (or effective final consumption) constitutes their
family savings.

Majority of the Household income earners of Kontagora Local Government Area of

Niger State that some families are do not engage or implement ineffective budget and savings
practices and this can be traced to their level of income, lack of awareness, illiteracy, and
level of education. Financial issues are one of the major causes of instability among families,

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especially for the income earners who live below the normal standard with an income that
can only go for food and housing, which makes it impossible to satisfy their family’s needs
and the attainment of goals. These problems are not only happening in Kontagora but also
here in the Philippines. People always rely on mental budgeting and feelings when they do
financial planning which always falls into errors (Ogori A. Friday, 2013).

Family households that struggle with budgeting and savings tend to ignore common
practices due to bias or negative perceptions and lack of knowledge towards the process.
They feel budgeting is unrewarding and often treat it as a trivial activity where little effort
should be exerted. Most of the family crisis stems from budgeting that, when implemented
consciously or unconsciously, could handle family crises throughout all spheres of family
existence. The experiences of individuals in the categorization of expenditure also impact the
budgeting and savings process, often leading households to underutilize resources in key
areas such as food, water, electricity, medication, education, travel, and emergency expenses.

Family households make important economic decisions, including financial decisions.

While some decisions can be made based on their perception, age, and other factors (de
Bruin, Parker, & Fischoff, 2007; Juliusson, Karlsson, & Gӓrling, 2005; Stanovich & West,
2008), other decisions are complex, require information, skills, and education. Financial
decisions such as budgeting and savings opportunities require expert advice or financial
education to execute them successfully. Perception of risk and return influences an individual
financial decision, even when decision-makers present high levels of financial literacy and
knowledge. Families’ lives are impacted by their level of financial awareness on risk and
willingness to engage in budget and savings activities. Every family household should take
the right direction in order to come up with a sound financial decision.

Financial awareness and knowledge do not only shape cost-effective financial planning
and behavior, but also enhance asset accumulation (Jappelli & Padula, 2011; Mitchell, &
Lusardi, 2011). Jappelli & Padula, (2011, 2013) recognized financial literacy as a specific
form of human capital, through which individuals and households can accumulate by
investing in their own financial knowledge. Having an understanding and knowledge of
money matters not only impacts sound financial decision making but also the financial health
and confidence of the family (Norman, 2010; Tschache, 2009). Managing one’s finances
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involves putting appropriate drives in place to protect one’s family, thinking about saving
money, and spending money wisely to be financially stable. It may be a challenging task for
some but this will be a stepping stone towards alleviating the lives of many people in the
country to combat the global financial crisis.

The main objective of the study is to know the level of financial awareness of every
Household; through the profile of respondents, factors preventing, and factors influencing
them in terms of financing family budgeting and savings. Understanding the impact of
Perception on Household fina ncial management is important to financial success. A
household member that is aware of his finances contributes much to the progress not just for
his family where he belongs but also to the economic development of his nation . This
research will therefore be of significance to individuals, families, and the society at large to
help provide awareness on the importance of budgeting and savings to individuals and
families of income earners. Through budgeting and savings, one can determine exactly where
his money goes. It will help him evaluate his income and subsequently his expenses. In doing
so, instead of spending money to buy unnecessary things, savings would be the option
instead.

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Background of the Study

The Economy

According to The World Bank, 2020. The real impacts on the economy can be seen at the
level of families or households. Impacts on businesses are felt in the households as job losses,
dramatic declines in incomes, restrictions in movements, which lead to reduced consumption
of basic goods and services such as food and health care. Rettig (1993) noted that the family
today is faced with a rapidly changing environment in the economic, technological, and
social arenas.

Several things are taking place that would seem to threaten the financial solvency of the
family. Consumer debt and a decrease in the budget and savings rates among families
(Godwin, 1990a). These two factors, working in opposite directions, diminish the family's
ability to maintain financial solvency. According to some studies, the family is experiencing
financial difficulty. The available evidence suggests more families are experiencing problems
managing their finances. One side of the equation, median income, has remained stagnant,
thus eliminating one solution to rising debt loads (Danziger & Gottschalk, 1994) Some group
said they experienced some financial problems, including: being unable to save, using
savings for everyday expenses; being too far in debt; being unable to make ends meet: and
being unable to pay their bills. The problem of adequate finances is highly subjective in that,

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in public opinion polls, people have always expressed high levels of dissatisfaction (Erskin,
1973).

Size of the Family

As has been explained by Orbeta Jr., A. (2005) Family size is one of the major concerns
why we should practice budgeting and savings. Low household savings also expose
households to the risk of income shortfalls. Households tend to spend wisely in order to have
savings, they often carefully choose and list their essential needs to avoid miscalculation. In
this case, a family who has savings will anticipate income shortfalls and will survive in the
long run. Household saving affects a family’s level of living, reserves for financial
emergencies, and the ability to purchase durable goods on a cash rather than credit basis
(Hira, 1987).

Lack of Awareness

Within the context of researchers, the rising cost of living and inflation results in the
household struggling with their financial aspect (Sievenpiper, M. & Butt, P. 2017). Besides
that, youngsters who have a lower level of financial literacy will not manage their money
well (Xiao & Chen, 2015). Non practicing and financially illiterate households tend to
struggle with their budgeting and savings due to negative perceptions that are caused by lack
of awareness. Furthermore, households can find the process overwhelming and out of reach
due to the complexity involved in the management of finances (Sievenpiper, M. &)

Household Management

Household, by definition, is a person or group of persons with the same living

accommodation, pools resources and consumes certain goods and services collectively [1].
Household Final Consumption Expenditure (HFCE) according to the 2008 System of
National Accounts (SNA) is the expenditure of resident households on final consumption of
goods and services [1]. Final consumption is goods and services used to directly satisfy
human needs and wants, while on the other hand intermediate consumption is for the purpose
of further production of goods and services.

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The management of household finances involves controlling and tracking expenditures

and revenues. In this study, we considered the household finance management construct as
being composed of the following two components: Budgeting and Savings (Antonides,
Groot, & Raaij, 2011), (Heath & Soll, 1996; Thaler & Sustein, 2009; Antonides, Groot, &
Raaij, 2011).

(Lynch, 2011) argues that the household financial management field of study has no well-
defined boundaries; although it is possible to consider any purchase as a financial decision,
the author argues that financial decisions are those that have the potential to change the
consumer’s financial situation due to just one expense, or the cumulative effect of repeated
behavior patterns derived from personal characteristics, skills and habits. The choice of
financial products (e.g. insurance, loans, investments, etc.) to improve consumers’ financial
situations can also be considered financial decision-making (Lynch et al. 2010, Soll, Keeney,
& Larrick, 2011; Spiller, 2011; Thaler & Benartzi, 2004). Researchers have emphasized the
importance of precautionary saving to help explain household financial decisions. The model
of precautionary saving is built based on the “buffer-stock” model of saving (Carroll et al.,
1992; Carroll, 1997). Carroll et al. (1992) suggested that households driven by
unemployment expectations save to insure their consumption against stochastic income risks.
In this model, if households are uncertain about their future income, they tend to save more to
accumulate assets to their target level.

Empirical findings have been mixed depending on the way in which researchers measured
income uncertainty. For example, Dardanoni (1991) used occupational categories that
combined occupation, industry, and economic position of the household head as a proxy for
income uncertainty. Guiso, Jappelli, and Terlizzese (1992, 1996) measured income
uncertainty using a direct question from the 1989 Survey of Household Income and Wealth
about the percentage increases in nominal earnings and inflation for the following year.
Researchers who have used the SCF dataset measured income risks with a question about
income uncertainty in the following year (e.g., Yuh & Hanna, 2010). The previous empirical
findings were inconsistent because they are very sensitive to measures of income risks
(Lusardi, 1997).

Budgeting Motives
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Financial resources are one of the key elements in achieving objectives and goals.
However, in order to achieve the objective the budget has to be prepared effectively and
adhered to. A budget may be described as a quantitative expression of a plan and the process
of converting plans into a budget is known as budgeting. Budget is one of the most widely
used tools for planning and controlling business organizations. The budgeting process may be
quite formal in a large institution with committees set up to perform the tasks. On the other
hand, in a very small firm, the owner may write down the budget on a piece of paper or just
budget in his head about the items he can remember easily. Budget is among the major tools
for implementation of the objectives and policies of every Household. In other words, a
budget provides the basis for decision-making. Budgeting plays an important role to
individuals on how to spend in relation to the income available. Further, budgets play roles
such as planning, controlling, communication and motivation. A well-formulated budgeted
system enables individuals, especially families, to reach its goals more successfully (Drury,
2004).

Saving Motives

Setting aside a portion of income as savings is typically motivated by the desire to weather
unforeseen changes in expenditures, in anticipation of income fluctuations, or to realize
future financial security through asset accumulation (Collins, 2015; Sherraden, 1991). In
lower-income households, the hierarchy of savings theory and quantitative research suggests
that savings can be motivated by the need to meet immediate and basic needs in an
environment where income is unstable and the ability to draw on existing assets is limited
(Acs, Loprest, & Nichols, 2009; Mills & Amick, 2010; Pew Charitable Trusts, 2015; Xiao &
Noring, 1994).

These motives for saving are important because they illustrate the different opportunities
and potential futures available to families. Perhaps due to having higher and more consistent
incomes, as well as benefiting from intergenerational wealth transfers, families with higher
education and income identify their reasons for saving as children’s college funds, long term
goals, spending Habits or retirement (Devaney, Anong, & Whirl, 2007; Xiao & Noring, 1994;
Larrimore et al., 2015; Shapiro, 2004). Some research has suggested that single-person
households, lower-income households, and households headed by a woman or person
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identified savings goals as those to meet basic daily expenses (Xiao & Noring, 1994).
However, other research has suggested that female heads of households were more likely
than male heads of households to move toward longer-term savings goals like retirement
(Devaney et al., 2007). Qualitative research suggests that both single-parent and two-parent
families across the low- to moderate-income spectrum save for unexpected emergencies and
moderate-term events such as family vacations or weddings. These households at the lower
end of the income spectrum discuss longer-term savings horizons but are all too often unable
to attain them due to income shortfalls (Halpern-Meekin et al., 2015; Sherraden et al., 2010).
Overall, the existing research examining households’ motivations to save for the future
indicates that income may be related to shorter and longer-term goals; however, the empirical
evidence regarding how household composition may impact reasons for household saving is
both nascent and contradictory.

Level of Education

The ability to make a wiser financial decision is considered the basic life skill for human
beings in the 21st century (Beckker et al., 2019). Proper financial education should also be
delivered to the Households and students or younger generation and help them to improve
their future financial decision (Luhrmann et al., 2018). It will help to improve the critical
thinking and understanding of every household and younger generation to their finances.
Besides, they will anticipate unnecessary loans, debt, or even unexpected events. The
researchers spot the significant relationship between level of education and their level of
awareness in practicing budget and savings.

In addition, Parents who demonstrated a good financial habit also posed a lifetime impact
on their child’s future financial behavior (Heckman & Grable, 2011). They will understand
the cycle of the market and economy, wherein, they will set concrete plans for their budget
and savings. Having a good foundation with budgeting and savings will help you in the long
run.utt, P. 2017).

The Role of Personality

The role personality plays in Household Budget and Savings. In recent years, economics
psychologists have carried out many studies of the effect of various phycologist variables on

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budget and savings (e.g. Daniel, 1997; Groenland, 1999, Lunt and Livingstone, 1991;
Wahlund and Gunnarson, 1996; Warneryd 1996a). Most of this work has been concerned
with the influence of variables such as attitudes, budget and savings motives and time
preferences and there has been much less attention paid to the role that personality factors
may play. This is somewhat surprising given that links between saving behavior and
personality were first identified over 30 years ago (Kline, unpublished PhD thesis,
Schmolders, 1966).

Theoretical Framework

Personal Budgeting Theory (Galperty, 2018)

Simone Galperty, 2018, Consumers often use personal budgets to manage self-control
problems. This paper analyzes the link between budgeting and self-control problems in
consumption-saving decisions.

The basis of our study aims to determine the level of budget and savings awareness of
every household. We come up with the variables that refer to the factors militating and
factors influencing budgeting and savings. Some of these are the personality and spending
habits of every household finance toward budgeting and savings that we can connect in this
theory. Because, if we want to control our spending and personality toward our financial
goals, we need personal budgeting.

Jeremy Vohwinkle, 2018, A personal or household budget is a summary that compares

and tracks your income and expenses for a defined period. While the word budget is often

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associated with restricted spending, a budget does not have to be restrictive to be effective.
Instead of viewing a budget as a negative, we can view it as a tool for achieving our financial
goals. Given this, A family household composed of a father, mother, and children or for
instance, also includes the grandparents. Usually, there are one to three individuals in every
family household that have their income to be used for their daily expenditures. However,
one of the most common family household problems is the non-practice of budgeting and
savings.

Conceptual Framework

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The researchers used the input-process-output (IPO) method to distinguish and connect
the information in the study. The researchers used the method to organize the ideas in
accordance to the study.

Figure 1.1: Paradigm of the Study

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The Input narrates the Independent variables, namely the profile of the respondent,
which is based on gender, age, education attainment, employment status and income level;
thus the second input is the factors preventing and influencing, which is based on inflation,
lifestyle of the family, financial illiteracy, economy, low income, family size, level of
education, long term goals to pursue, personality and spending habits; thus the third input is
the relationship between the household level of education and level of awareness; thus the
fourth input is the positive or negative relationship between household demographic profile
and financial management.

The process narrates the descriptive statistics which include the pie chart, frequency and
percentage that visualize every data that the researcher gathered; thus the second process is to
conduct a survey instruments with questionnaire in a type of demographic and likert scale
using google form in able to get the answers of respondents; thus the third process will be the
used of statistical treatment which include the correlational a statistical method used to
measure the stre ngth of the linear relationship between two variables and compute their
association and also to identify the relationship, patterns, significant connections, and trends
between two variables. There is a positive correlation between two variables when an
increase in one variable leads to the increase in the other. On the other hand, a negative
correlation means that when one variable increases, the other decreases and vice-versa.

Through the use of input and process the output will be the Assessment of perception on
household finance towards the budget and savings will survive.

Statement of the Problem

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The study focused on the Assessment of Perception on Household finance towards family
Budgeting and Savings, During the Second semester of Academic Year 2021-2020.
Specifically, it aims to answer the following questions:

1.0 What is the demographic profile of the respondent? in terms of:

a. Gender
b. Age
c. Education Attainment
d. Employment Status
e. Income Level
2.0 What are the factors preventing and influencing budget and saving practice?

A. Economy
a. 1 Inflation
a.2 Lifestyle of the Family
a.3 Financial Illiteracy
a.4 Low income

B. Family Size
b.1 Level of Education
b.2 Long term goals to pursue
b.3 Personality
b.4 Spending Habits

3.0 Is there a relationship between the household level of education and level of awareness
in budget and savings practice?

4.0 Is there a positive or negative relationship between household demographic profile and
financial management?

Hypothesis

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Null Hypothesis

Ho: There is no significant relationship between the Household level of education and
their level of awareness in practicing budget and savings.

Ho: There is a negative relationship between the demographic profile of respondent

and household financial management.

Alternative Hypothesis

Ha: There is a significant relationship between the Household level of education and
their level of awareness in practicing budget and savings.

Ha: There is a positive relationship between the demographic profile of respondent

and household financial management.

Significance of the Study

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The study focused on explaining the level of awareness of every household based on
their Perceptions, Factors militating and influencing them to do Budget and Savings.
Moreover, the results of the study will be beneficial to the following:

Household earners, the direct recipient of the output will be the household earners,
where it provides encouragement to think of ideas that will give a proper guidance on
implementing budget and savings practices.

Family members, it will help each family member to feel secure with their expenditure
and expenses because of the different level of awareness and perceptions that will help them
to cope and adjust in managing their finances.

Students, provide students a better understanding of budget and savings and how a
student can cope with it. Any improvement within their financing, means they become more
aware and that can lessen the risk that they may encounter and can meet its financial goals.

Teachers, help the teachers to provide different encouragement to think of ideas that will
give proper guidance and competence to the students.

Guidance staff, provide an assessment program about mentoring the proper and effective
budget and saving practices. That will encourage the guidance staff to create activities for
students to be financially educated.

Future researcher, provide a pattern for the researchers and also provide a background
of study regarding the level of financial awareness of every Household toward financing
Budget and Savings. This study can also be beneficial for both present and future researchers.

Scope and Delimitation of the study

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This study is primarily focused and aims to investigate the Assessment of Perception on
Household Finance Toward Family Budgeting and Savings. Since there is a pandemic and
there are a lot of families. These limits the researchers to not conduct studies in the areas with
a high risk of Covid 19 positive. Researchers will follow safety protocols to not be involved
in any kind of risk during the survey. This study limits its analysis for selected families in San
Mateo and Rodriguez, Rizal. This individual is chosen as the prospect as they practice
budgeting and savings.

The researchers decided that the sample will be a survey sampling with the use of
questionnaires in a type of Demographic and Likert scale by Google form where it was made
and validated. Out of 450 selected families, where selected using cluster sampling with
frequency and percentage, a number of 216 household respondents were used with a total of
100 % percentage as a sample that can participate in the given survey at the given time and
date. This study is to be conducted during finals of the first semester of the school year 2021
– 2022.

Definition of terms

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The following terms are defined based on the researcher's usage in the study:

Budgeting, allocating and utilizing finances in order to reduce wasteful spending and can be a
useful tool in household financial management.

Controlling, helps households in measuring their progress towards the financial goals and
brings any deviations, and indicates corrective action.

Covid 19, an infectious disease caused by the SARS-CoV-2 virus. Most people infected with
the virus will experience mild to moderate sickness.

Economic decision, household being able to choose between two goods or another.

Economy, a system of distribution of production, resources and trade.

Educational attainment, distinct level of education that a household attains.

Emergency expenses, household reserved money for the fortuitous or unpredicted events.

Expenditure, spending activity of a household.

Expenses, paying a cost using money in a certain good or service.

Factors Influencing, a control variable that determines key influencing factors of a dependent
variable.

Factors Preventing, a control variable that determines key preventing factors of a dependent
variable.

Family crisis, a situation where a household struggles with their financial aspect, lifestyle.

Family members, a group of individuals that consist, fathers, mothers, and children.

Family size, a number of families or number of brothers and sisters in a given family.

Financial decision, ability of households to plan or construct definite action to finances.

Financial education, the best tool to fight financial illiteracy. This can help the household to
prevent financial chaos.

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Financial goals, household specific targets towards their finances in a distinct goal.

Financial health, household continuous being or control of their monetary aspect.

Financial illiteracy, household absence of financial knowledge or awareness.

Financial literacy, household ability to acknowledge all aspects of his/her action towards
finances.

Financial management, planning, arranging, directing, and managing household financial

activities.

Final consumption, goods and services used to directly satisfy household needs and wants.

Financial management, a way to manage family household finances regularly and thoroughly
through the planning, implementation, and supervision / assessment phases.

Financial planning, a system wherein a household carefully analyzes their financial

allocation.

Financial security, a household being stable or debt-free.

Financial solvency, ability of household to survive in the long run, or commitment

Financially stable, a financial system that meets the needs of the household consistently.

Frequency and Percentage Distribution, is a frequency distribution in which the individual

class frequencies are expressed as a percentage of the total frequency equated to 100. Also
known as relative frequency distribution; relative frequency table.

Goals, an idea of the future or desired result that a household envision, plan and commit to
achieve.

Google form, a versatile tool of various applications that is used by the researcher for
gathering information through pop quiz or surveys.

Households, a person or group of persons with the same living accommodation, pools
resources and consumes certain goods and services collectively.

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Human capital, a measure of the skills, education, capacity and attributes of labor which
influence their productive capacity and earning potential.

Hypothesis, an assumption and an idea that a researcher proposes for the sake of argument so
that it can be tested to see if it might be true.

Income earner, a household who earns money through a job, investments, or a combination
of both.

Inflation, a gradual increase in the price of goods and services in a given economy

Lack of awareness, household failure to be alert, vigilant or observant

Likert scale, used by researchers in a questionnaire to identify or measure opinions, attitudes,

or behavior of the household respondent towards their perception or personal trait unto
budget and savings.

Mental budgeting, an increased household's overview of their expenses and current accounts
and improves their management on finances.

Needs, something that is necessary for survival (such as food and shelter) of a household.

Perception, household behavior that is aware, comprehend or an understanding of something

through their senses.

Personality, how the household values their money in life.

Questionnaires, a set of questions that a respondent conducted that are related to the study to
collect more information from the target respondents.

Savings, left or extra money of a household from overall expenditure.

Safety protocols, safety procedures, are step-by-step safety plans guiding the researchers
through the safe performance of a given workplace procedure.

Slovins’ formula, used by the researchers to calculate the sample size (n) given the population
size (N) and a margin of error (e) using cluster probability sampling.

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Spending habits, characteristic of a household member that often practices a routine in

purchasing something using their income.

Survey, a method that a researcher used for collecting data from a predefined group of
households to gain information and insights into study of interest.

Tracking, the way households tracing the flow of their everyday expenses.

Wants, a household wish or desire to own goods and services that gives satisfaction for their
household.

Chapter 2
Review of Related Literature and Studies
This chapter presents a brief review of different literature and studies, both foreign and
local, by other researchers which are relevant to this study. These literature and studies were
gathered by the researcher from different books, articles, and journals.

Budgeting and Savings

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Budgeting is the process of allocating and utilizing finances in order to reduce wasteful
spending and can be a useful tool in household financial management. Budgeting emphasizes
risk reduction via thorough planning and thought, as well as the efficient use of restricted
resources. It allows you to plan ahead of time for expenses and decreases the risk of making
an emotional spending mistake. Warneryd (1999), defined savings as left or extra from
overall expenditure conducted by the families or individuals. This is considered as a buffer in
anticipation of a fortuitous event and people who are avoiding taking high risks in debts are
preferred to have higher savings (Nyhus and Webley, 2001). Due to bias or bad opinions of
the process, many households do not budget or are unable to budget successfully, despite its
benefits. Although eliminating negative impressions about budgeting and savings to promote
appropriate financial management practices is tough, there are existing techniques that can be
useful in resolving such challenges. The majority (84%) of the sample stated that they feel a
little relaxed after making a family budget. 96% of them mentioned that saving is part of their
budget and it really helps them run their monthly expenses along with some savings. The
majority (60%) of the sample were not aware of how much money should be saved; 71% of
the total sample believed in saving accounts.

Socio- Demographics

Xie (2000) stated that Socio-Demographics deliver the empirical foundation for the
research in order to give the basic information about them. Jalil, et al. (2013) revealed that
socio-demographics have a relationship with financial management. In terms of gender, A
man may have a very large income, but, if it is not spent in a rational manner, he may not be
able to live happily as he is not getting the advantage from it. A woman who earns enough
money is spending in a more rational manner than a man with a very large income. The
authors argued that different levels of income will be different among high, medium, and
low-income levels. They also found that the age of a person where older the individuals, they
will focus more on budgeting and savings. This result is also in line with Lai & Tan (2009),
which found that an individual’s employment status is one of the primary factors which is
influencing the attitudes and management of their household finances using budget and
savings. The authors argued that the educational attainment of people has to have proper
knowledge and protections for the budget and savings of every family member. This is also

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similar to the findings from the study implemented by Agrawal, et al. (2015). However, Joo&
Grable (2004, cited in Taft, et al. 2013) found there is no evidence that socio-demographics
could affect financial satisfaction and management of households through budget and
savings.

Factors Preventing Households

According to Sievenpiper, M., & Butt, P., (2017), The past decade has experienced a
global recession and its detrimental impact on the quality of people’s lives. The economic
downturn resulting from the recession has been seen all over the world. In its aftermath,
commodity markets impacted households with higher prices, rising inflation, and reduced
economic opportunity. Households have felt the pressure of this decline through reduced
prosperity, dwindling effective income, and a reduction in the quality of life. The prevailing
uncertain climate continues to strain households and is forcing many to resort to desperate
and often unorthodox measures, such as mounting debt, which further compounds their
suffering. To alleviate households from this situation there is a greater need to manage
household finances and rationalize these with the economic reality.

For families to live efficiently there is a need for adequate financial management which
can only be achieved through budgeting (Olaitan, et al, 1996). Similarly, Ukpore (1993)
stated that a budget is the saving and spending plan designed to keep control of one’s
spending in order to achieve an individual or family’s financial goals. Every family needs to
practice budgeting based on goals as well as putting their financial strength and weakness in
check and balances. Olson, et al (2000) give the economic lifestyle of a family, that is
according to what the family earns for a living and how they are able to meet the various
needs of members as well as achievement of family goals.

The ability to make a wiser financial decision is considered a basic life skill for human
beings in the 21st century (Beckker et al., 2019). Two years ago, the Malaysian government
launched the “National Strategy for Financial Literacy 2019-2023” to avoid financial
illiteracy. The Ministry of Education (MOE) plays the role in promoting the financial literacy
of the future generation. MOE integrated the financial knowledge element in the curriculum
of Form 3, Form 4, and Form 5 Mathematics subjects. People should be nurtured in the

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aspect of financial knowledge from a very young age. People should practice healthy
financial habits to enhance their job skills and living standard, which is important in
financing their household. The resistance to material temptation and willingness to delay their
gratification also determine their future life. People can absorb and apply the new information
quickly. As a result, well-educated youngsters are able to improve their financial decision-
making and avoid the causes of financial Illiteracy which is a person's lack of understanding
of financial services and the basics of personal finance leads to a perpetual cycle of poor
financial decisions that restrict the social mobility (Sutter et al., 2013; Bruhn et al., 2016).

Income earners can be classified into levels of income, whether high-income earners,
middle-income earners, and low-income earners. According to Olson et al (2000), high-
income earners are the rich families, those who are living in wealth and affluence. They can
conveniently afford both luxury and necessities of life. They are influential indeed. The
middle-income earners as the name implies are those in the middle of the rich and the poor.
They are neither rich nor poor. They can afford the basic needs of life and sometimes some
luxuries but not in all cases. They can afford to pay school fees but not the best of schools,
they can buy a car but not the too expensive or latest one, to mention but a few. Low-income
earners on the other hand as cited by Ryder (1990) are those that are below the normal
standard of living. By this, it is believed that the low-income group earns what cannot satisfy
their needs and wants. They are poor and cannot meet their most important needs (Ryder,
1990). The needs for budgeting and savings, therefore, become necessary.

Factors Influencing Households

For Filipinos, a Household, by definition, is a person or group of persons with the same
living accommodation, pooling resources, and consuming certain goods and services
collectively, Robredo J.,( 2008). Household Final Consumption Expenditure (HFCE)
according to the 2008 System of National Accounts (SNA) is the expenditure of resident
households on the final consumption of goods and services. Final consumption is goods and
services used to directly satisfy human needs and wants, while on the other hand intermediate
consumption is for the purpose of further production of goods and services.

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One of the influences in budgeting and savings is the large family size of every Filipino.
According to Anacito C. and Orbeta Jr. (2005), having additional children practically in the
poorest households has an impact on their family budget and savings. More children in a
family can cause a reduction in their savings rate but it influences the household to do more
budget and savings. Accordingly, implementing a budget on having a smaller number of
children can help to build up savings to protect families from income shortfalls. A way to
achieve one’s desired goals in life through managing properly his finances. (Bona.,2007)
Long term Goals may include having a house, buying a car, your family’s exposure to
unexpected events like death, illness or disability, getting an educational plan for your
daughter’s or son’s higher education and even setting a retirement plan. This process enables
an individual to practice budgeting and saving to see his current situation, what he wants to
be in the future and what he should do to attain his longterm goals.

According to Maginn, et al., (2007), The reason for their small finances is because they
have little time to save and invest, but also because their levels of financial education
encourage them to manage their income through practicing budgeting and savings. This study
has positive social change implications and policy direction not only for the benefit of
individuals and households but also for the community and the nation. Because individuals
constitute the units of households, communities, and societies, educating individuals would in
turn benefit households, communities, and societies. Financial education is essential for
boosting development. Research indicates that most people cannot account for how much is
spent on basic needs such as food and drink per month.

(Ashraf, Karlan, and Yin 2006) An effective strategic savings design can help people
implement a savings plan, whether the design of a savings changes their savings plan, and
how this affects households' decisions about the effectiveness of various savings
management. As a result, it was found that 4,444 people had the same self-control as
effective and had a positive effect on financial management. (Orbeta, 2006) The saving of
rural households is not suppressed by the dependency ratio, whereas the average and
marginal saving propensity of urban households are inversely proportional to the household
size. The number of children between the ages of 0-6 and 7-12 seems to reduce wealth
accumulation, and children of this age consume net resources compared to a young adult who

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can contribute to household income rather than consume. Despite their contribution to
household income, the high fertility rate of households has no further wealth.

(Ducanes and Tan, 2020) states that the highly vulnerable households are more likely to
have no source of income during quarantine and no savings to overcome it. On a per capita
income basis, 30% of households say they are likely to save little or no savings at all based
on historical data. An increasing number of households are becoming very vulnerable due to
depletion of savings or unemployment due to a projected economic downturn, both locally
and globally, and even rising costs of goods raising the poverty line. ( Manasan, 2020 ) states
in his article that Filipinos' visions of self in 2040, enjoying a stable and happy life, sufficient
resources, and being ready at every unpredicted expense. Wherein, we can develop a solid
foundation of a good family and a better self. This means the vision we should attain is to
have a prosperous country in order to achieve a high-trust society.

Chowa, et al. (2012) defined Personality as how the individual values the money for their
life. Mhien &Thao (2015) found that there is a positive relationship between the personality
between the financial management. The authors argued that irregular personality will lead to
the increase of the stress levels of psychological well-being of the individual itself, such as
being unprepared to effectively manage the high debt associated with psychological costs.
Selcuk (2015) argued that a positive personality will tend to budget, report paying bills on
time, and plan for the future such as saving its money for its future, which is also in line with
the findings from Albeerdy & Gharleghi (2015). Besides, Hayhoe et al. (2009) found a
dissimilarity result where personality does not necessarily affect individual management.
This is because some heavy users of credit cards view money as a source of power, thus even
if they have positive personalities, they will tend to focus on how to cover the credit risk
rather than plan for the future financially.

Spending less than the earnings and saving for the future is a golden rule for having a
good control over personal finance. By paying attention to what you buy each month, you
quickly identify any leftover money, which can increase your retirement savings rate,
emergency fund and even your net worth. But in reality, many people fail in budgeting their
income and saving more. In a study conducted by Rick, Cyder, and Loewenstein published in
the Journal of Consumer Research, participants’ brains were scanned as they pretended to
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make buying decisions. Researchers observed activity in an area of the brain called the insula,
which is stimulated when you experience something unpleasant. The more stimulation in the
insula, the less likely you are to keep doing what you’re doing. S pending habits are not a
static phenomenon among households and constitute financial behaviour that depends on the
level of financial knowledge and financial attitudes that encourage more households to do
financial practices effectively (money management capabilities) (Nadome, 2014). When it
comes to money, insula stimulation can stop your spending.

Majority of the family households always spend their allocated budget on food.
According to the article by Rebecca Webber, households with higher wages are often
observed three times higher compared to households with lower wages. Families tend to buy
clothes when the price of the clothes are lower. Based on the basic needs of humans, the
researchers find out that the rural areas don't prioritize buying new clothes. Moreover,
medicine and education are also often observed in financial planning of a family household.
People tend to buy generic medicines rather than branded medicines because it is affordable,
on the other hand, the education sector was mainly concerned by the families. In instances
where the families only buy school materials if it's necessary in order to secure their budget.
According to the research of the U.S. Bureau of Labor Statistics, the rising cost of education
in the U.S and indeed households reported a 35% increase on their spending in 2013
compared to 2006 (Bona and Flores, 2017).

Awareness of Households

(Diksha, 2018) studied the awareness among households regarding the importance of
family budgeting and savings, with an aim to know the awareness among households
regarding the making and usefulness of family financial management. The data was collected
from Gurgaon. The information regarding budgeting reveals that the majority of the
respondents (93%) of resources where only 4% of them were not much aware of the belief
that budgeting is a “financial plan for a defined period about the same time” 3% feel like
budgeting means “enjoyment”. Regarding making a budget reveal that 60% of the

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respondents believed that during budget-making people forget to put a bracket of emergency
funds. 40% of them believed that people forget to add small items in the family budget and
savings. The majority (85%) of the respondents are aware of the items that cover the family
budget. 40% are making a budget for the past 5 years, 33% of them have been making for the
past 10 years and 13% have just started and 13% have been making since they started their
family. 84% stated that they feel a little e-relaxed after making a family budget. 96% of them
mentioned that saving is part of their life budget and it is really helpful to them running their
expenses along with some savings.

While the result in the survey was regarding savings, the majority 60% of the sample
were not aware of how much money should be saved; 71% believed in saving accounts, 16%
of them didn't believe the same, where 13% of them were unable to answer the same. 60% of
them were aware of the emergency fund. 56% stated that when bills are spiraling out of
control, consumption of expenses is greater than income. 33% believed that when saving is
negative, and 13% of them believed that when a credit balance is rising, consumption of
expenses is greater than income.

Ogori A.F, Adebayo and Apeh, (2013) conducted a study of the effect of budgeting on
family living, to determine the level of budgeting and savings awareness of income earners,
The first objective revealed that major of the respondents do not engage in budgeting
practices, that it can therefore be deduced that the level of budgeting awareness among the
low-income earners of families is low. These findings agree with the findings of (Ryder,
1990) which states that a vast number of families with a low income do not engage in
budgeting. The second object revealed that a majority of the respondents (90%) agreed that
the size of the family, level of education, long-term goals, personality, and spending habits
are the major factors influencing the family budget. The third objective is to examine the
effects of budgeting on income earners. Most of the respondents agreed that organized living
is made possible where budgeting is engaged. The result showed the benefits associated with
budgeting such as reduction of wastages, poverty, and ensuring an organized way of living. It
can therefore be deduced that budget and savings making has a positive effect on household
income families who engage in it. The fourth and last objective finding revealed that the
factors hindering the practice of budgeting by the low-income families include: low income,

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lack of awareness, illiteracy, and low level of education. This implies that the majority of the
respondents do not practice budgeting due to the above factors. (Akanbi,1981) stated that
budgeting is very important but has factors preventing its success such as illiteracy, lack of
awareness, low income and low level of education.

Synthesis Relevance of Related Literature and Studies

Several works of literature and studies about budgeting and savings help explain the
factors and variables of the study. According to Warneryd, (1999) Budgeting is a system of
allocating and utilizing finances to reduce unwanted expenditure and it can be a useful tool in
household financial management. In addition, while practicing budgeting, it is also good to
practice saving. Savings are a buffer or extra from your income after using it from the overall
expenditure. The study focuses on the four variables.

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According to Xie (2000) & Jalil, et al. (2013) revealed that socio-demographics like;
gender, age, education attainment, employment status and income level have a relationship
with financial management. On gender, where a male who always has higher income than a
female, a male spends its income in an irrational manner than a female. It also found that the
age from 18 to 50 plus where a person was older than the individuals, they will focus more on
budgeting and savings. The author Agrawal, et al. (2015) argued that the educational
attainment of people has to have proper knowledge and protections for the budget and
savings of every family member. This result is also in line with Lai & Tan (2009), which
found that an individual’s employment status is one of the primary factors which is
influencing the attitudes and management of their household finances using budget and
savings. The authors Xie (2000) & Jalil, et al. (2013) argued that different levels of income
will be different among high, medium, and low-income levels. Over all, Socio-demographics
could affect the financial awareness and management of households.

The past decade has experienced a global recession which leads every country to
experience an economic downfall. Due to its impact, the world market seemingly hit their
production which causes inflation and affects the economic opportunity of the country. The
family household encountered pressure to decrease its prosperity, shrinking salaries, and
diminishing quality of life. Olson, et al (2000) give the economic lifestyle of a family, that is
according to what the family earns for a living and how they are able to meet the various
needs of members as well as achievement of family goals. The author’s (Sutter et al., 2013;
Bruhn et al.; 2016) argued that well-educated youngsters are able to improve their financial
decision-making and avoid the causes of financial Illiteracy, which is a person's lack of
understanding of financial services and the basics of personal finance lead to a perpetual
cycle of poor financial decisions that restrict social mobility. Low-income on the other hand
as cited by Ryder (1990) are those that are below the normal standard of living. By this, it is
believed that the low-income group earns what cannot satisfy their needs and wants. They are
poor and cannot meet their most important needs (Ryder, 1990). The needs for budgeting and
savings, therefore, become necessary. Their study shows the factors on preventing has
variables that could affect the level of awareness of each household.

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One of the influences in budgeting and savings is the large family size of every Filipino.
According to Anacito C. and Orbeta Jr. (2005), having additional children practically in the
poorest households has an impact on their family budget and savings. According to Maginn,
et al., (2007), The reason for their small finances is because they have little time to save and
invest, but also because their levels of financial education encourage them to manage their
income through practicing budgeting and savings. In addition, filipinos' visions are set in
2040, enjoying a stable and happy life, sufficient resources, and being ready at every
unpredicted expense (Manasan, 2020). According to (Bona.,2007) Individual goals enables
an individual to practice budgeting and saving to see his current situation, what he wants to
be in the future and what he should do to attain his longterm goals. Chowa, et al. (2012)
defined Personality as how the individual values the money for their life. Mhien &Thao
(2015) found that there is a positive relationship between the personality and financial
management. Furthermore, Spending must be less than total income and savings to have
good financial standing. In addition, the researchers find out that family households are more
likely to focus on the three main things: Food, Medicine, and Education. Wherein, food is the
largest budget allocation of every household. Meanwhile, clothes are considered less priority
by the households even though it is part of the human needs, they prefer clothes when they
are on sale or set at a cheap price. (Nadome, 2014) Argues that Spending habits are not a
static phenomenon among households and constitute financial behaviour that depends on the
level of financial knowledge and financial attitudes that encourage more households to do
financial practices effectively (money management capabilities). The Study concludes that
several variables such as socio demographic, factors preventing and factors influencing have
an effect to the level of awareness, (Diksha, 2018) studied the awareness among households
regarding the importance of family budgeting and savings, with an aim to know the
awareness among households regarding the making and usefulness of the family financial
management that assess their perceptions towards the real definitions of budget and savings
in every life of Filipinos.

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Chapter 3
Research Methodology
This chapter includes the design of the research to be used in this study, defines the
method of research used, subject of the study, the respondents, the data gathering procedure,
data gathering instruments to be used and the statistical tools to be used in analyzing data.

Method of research used

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In order to see the general picture of the Assessment of Perception on Household finance
towards Family budgeting and savings in the selected area of San Mateo and Rodriguez,
Rizal the descriptive correlational survey method was used.

This research proposal employs a quantitative approach, a formal, objective, systematic

process in which numerical analysis of data is used to obtain information about the variables
through survey with test questionnaires. It tends to be more objective in nature, seeking to
quantify data, generalize results from a sample to the population of the household and to
measure the incidence of various views, beliefs, knowledge, behavior and opinions of our
chosen sample. This survey covers a large number of households and applies statistical
techniques to recognized overall patterns and examines the household level of awareness
towards budget and savings. Questionnaires related to the title will be used to accomplish the
quantitative method.

As a descriptive study, it collected detailed and factual information to describe existing

phenomena. It systematically describes the situation or area of every household factually and
accurately. It allowed the researchers to carefully describe and understand the awareness that
connects to the perceptions of every household. As a correlational study, in which it
demanded the degree to which the variables were related to each other using various
statistical instruments.

This design was chosen to meet the objectives of the study, namely to determine and
examine the level of household budget and savings awareness with regard to their
demographic profile, factors preventing and influencing them to manage their finances.

Source of data

Data can be identified as material for research and cannot be identified as subject of
research. As material, data are not raw materials but finished materials: they exist because it
has been through election and sorting in utterance.

The Data of this research were used by the researcher are primary and secondary sources
where it was drawn in obtaining the essential data needed in this research:

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1. Primary sources

Sources that are obtained and observed directly from the perceptions of the selected areas
in San Mateo and Rodriguez (Montalban), Rizal. By the use of cluster sampling, a probability
sampling procedure wherein elements of the population are randomly selected in naturally
occurring groupings; that based on geographical locations; The counted population will be
Four hundred fifty households (450), and the chosen Two hundred sixteen (216) in that
population; will be the final household respondents. The researcher visualized the following
respondent below:

Areas Target Population Target number of Respondents Percentage %

Ampid 58 27 12.5%
Burgos 55 27 12.5%
Dulong Bayan 52 27 12.5%
Guinayang 44 27 12.5%
Guitnang Bayan 66 27 12.5%
Maly 54 27 12.5%
San Isidro 69 27 12.5%
Sto. Nino 52 27 12.5%
Total 450 216 100 %

Table 1. 0 Target Respondents

2. Secondary sources
Sources that are obtained by the researcher in reading and analyzing journals, books,
articles, unpublished thesis and internet to strengthen the findings and complement existing
primary sources.

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Data gathering procedure

The researcher will conduct a survey that includes questionnaires; a set of questions that
are related to the topic were used in order to collect more information from the target
respondents.

Before conducting the Survey the first step was to ask permission from the professors to
conduct the survey. The survey questionnaires are being distributed once the permits are
secured by the researchers to avoid any problems. The researchers also ask permission to

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those target respondents to show respect, ensuring that their personal data will not be shared
with others who are not part of conducting the study; if they agree and are willing to
participate. Copies of the approved questionnaire were distributed using emails, messenger or
any kind of online platform in the context of Google form, as long as the respondent was able
to connect and open the given instruments easily, and to ensure safety during this pandemic.
The chosen respondent will answer the following questions in the given time and date, after
they finish answering, they can freely submit to retrieve the instrument in order to gather the
relevant data.

The researchers will use the frequency and percentage, a display of data that specifies the
percentage of observations that exist for each data point or grouping of data points that can be
a particularly useful method of expressing the relative frequency of survey responses and
other data and are displayed in pie charts to be conceptualized effectively. This will help the
researcher to recognize the answer to our research questions and to develop a precise
recommendation.

Data gathering instrument

This researcher utilized instruments to collect the data that will address the stated
problems. For the quantitative approach, a survey questionnaire was employed. The
researcher observed the following procedure in the formulation of the instrument. First, the
consultation with the expert was sought; which led to a discussion, where each member
provided a comment and suggestions to clarify things needed for the instruments. The

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researchers are able to illustrate the final draft of the survey questionnaire that will be used in
the process of collecting, analyzing and interpreting data from many individuals that aims to
determine the insights about a group of people.

The survey questionnaires consist of the following:

1. Demographic Questions
The demographic questions are powerful tools to segment your audience based on
who they are and what they do, allowing you to take an even deeper dive into your
data. It asks for information like age, gender, income level, and occupation.

2. Likert Scale
The likert scale type, wherein it is typically used by researchers to identify or
measure opinions, attitudes, or behavior. It is the best tool to operationalize the
perception or personal trait (Scribbr, 2020).

The consolidated points from the respondents’ answers to each item over a five-
point scale were as follows:

Scale Verbal Interpretation Rage - Value

5 Strongly Agree 4.50 -5.00
4 Agree 3.50 -4.49
3 Neutral 2.50– 3.49
2 Disagree 1.50- 2.49
1 Strongly Disagree 1.00– 1.49

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Table 2.0: Set 1: Five Point Scale

Scale Verbal Interpretation Range - Value

5 Always 4.50 – 5.00
4 Often 3.50 – 4.49
3 Sometimes 2.50 -3.49
2 Rarely 1.50 -2.49
1 Never 1.00-1.49

Table 2.1: Set 2: Five Point Scale

The researchers visualize the questions and possible choices for answers through a table to
understand the factors preventing and influencing them to practice budget and savings and
also the relationship of the two variables. The table shown below is the actual questionnaire
used for conducting this study:

Title: The Assessment of Household Finance Towards Family Budgeting and Savings”
Indicators Answers
Inflation SD D N A SA
1. Increasing expenses reduce my disposable income and erode
the value of my savings over a period of time.
2. I think that rising prices lead to an increased cost of my
borrowing on short and long term debt.
3. Increasing prices have an impact on my purchasing power as a
budgeter.
Lifestyle of the family
1. Does my present status affect my financial decisions?
2. Am I spending to keep up with other families?
3. Do my family values and expectations make me feel pressured
to manage finances right?
Financial Illiteracy
1. Does lack of financial knowledge cause my family to suffer

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financial hardship?
2. I don't see exerting little sacrifice in cutting my leisure time
that could help me to save more.
3. Today, as we experienced an inflation that is so high and
erratic, it is hard for me to plan ahead our household finances
effectively, given a little knowledge.
Economy
1. When the pandemic occurs and the businesses experience
downfall, I encounter a shortage in my financial household.
2. When the economic conditions such us GDP growth potential,
the unemployment rate, inflation, and fiscal and monetary policy
orientations are increasing, the higher risk we face in budget and
savings?
3. I believe that, with Covid 19 has generated a complex
economic shock causing a negative demand as households like
me react to a loss of wealth by cutting back sharply on
consumption of our spending?
Low Income
1. I believe that having a low income, the higher the difficulty
when making a budget.
2. Am I often running out of money due to inadequate earnings?
3. Having low income means having limited resources, but I
daily survive with the amount of money in my hands by dividing
it with my future expenses.
Family Size
1. Having more children in my family means more difficulties
handling finances but a greater influence in making budget and
savings.
2. Having a extended family structure influence me to make
proper financial decisions?
3. I think that having a single parent family with raising one or

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more children on my own pushes me to be more careful in

spending; for this to happen I become engaged in budget and
savings.
Level of Education
1. Does my career choices affect my financial planning
especially through educational requirements, income potential,
and characteristics of my profession?
2. Through my level of education, I have the ability to maintain
financial records for my income and expenditures.
3. I am not worried at all about different financial risks I might
face even though I did not finish my studies.
Long term Goals
1. I believe that having long-term goals is a reason for me to
strive and achieve them.
2. However life is complicated and risky, having an effective
financial plan and a method to reach my goals increases the odds
of doing so.
3. Should I consider investing in life insurance, education, and
the stock market for the future of my family?
Personality
1. People's characteristics make them financially capable
2. Whether we are a saver, spender and a budgeter, a personality
speaks volume on how I view money and how I live with my
household expenses.
3. My personality reflects traits and attitudes that influence my
financial behaviors toward practicing a well sound budget and
savings.
Spending Habits
1. Understanding shifting spending patterns, including how
much money remains in households’ budgets after purchasing
basic needs, is an important aspect of understanding economic

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security.
2. I believe that having spending habits is important for me to
have a plan for every miscellaneous item to keep track of all my
expenditures.
3. My spending habits influence me to practice budget and
savings so that I can spend my income in the right way.

Table 3.1 Set 1: The Questionnaire Used in the Study

Indicators Answers
Inflation N R S O A
1. Before inflation occurs, how frequently do you go to the local
market to buy your household goods?
2. When the prices in your local market or grocery increase, how
frequently do you buy your household goods?
3. Is your household's monthly spending increasing as a result of
rising expenses?
Lifestyle of the Family
1. I used to prioritize purchasing necessities over luxuries items.
2. Are you reviewing and updating your household budget?
3. I spend more on things to maintain my higher standard of
living.
Financial Illiteracy
1. Do I make miscalculations every time I purchase goods in a
local market or grocery store?
2. I am almost buried with debt because of my unrealistic budget
and savings practice?
3. Financial Illiteracy has a material impact on my family as I try
to balance our budget, pay bills at home, fund their children's
education, and ensure an income for retirement.
Economy

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1. Do I spend money to foreign goods or products, because of

their good quality?
2. Is the pandemic affecting my budget because I am unable to
work?
3. The Economic crisis mostly decreases my family wellbeing.
Low Income
1. Is the salary I earn enough to sustain my family’s needs in
everyday living?
2. How frequently do I experience financial hardship, without
everyday necessities
3 Having a low income, How frequently am I concerned with my
family's needs for everyday living than buying my personal
wants?
Family Size
1. Having a large member of the family makes it difficult to
manage our expenses.
2. Having larger families makes me devote more to our income
to necessities and less to luxuries.
3. As the number of my children grows, How frequently my
families spend a larger share of their income on current
consumption, and per capita income declines
Level of Education
1. Do you believe that a college degree was a stronger financial
satisfaction?
2. Having more education they are more likely to learn about
financial health and financial risk, improving their financial
literacy of what can be complex to their wellbeing.
3. I believe that with more education, they earn higher salaries
over their lifetime as well as contribute more in taxes.
Long term Goals
1. Do you believe that having long-term goals is a reason to save

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money?
2. Does setting long-term financial goals allow me to be
steadfast in my commitment to my finances?
3. Do you have interest in investing and savings programs like
PAG-IBIG MP2 and Sun life.
Personality
1.Am I very disciplined when it comes to managing money?
2. Did you suffer from financial hardship due to biased
perceptions?
3. Did you follow a strict budget and savings.
Spending Habits
1. I used to buy things and goods in a general merchandise
market rather than grocery malls.
2. I compare the prices between a store and an online store to
minimize my spending.
3. I tend to buy products that are on sale even though I don't
need them.

Table 3.2 Set 2: The Questionnaire Used in the Study

The link to google form: https://forms.gle/4S4P8LoDiQtPvoao9

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Statistical treatment of data

To analyze and interpret the data we have gathered through research questionnaires,
the following fundamental statistical formulas were observed:

1. Frequency and Percentage Distribution

The researcher used frequency and percentage in identifying the factors preventing
and influencing budget and saving by the respondents. The formula for computing
percentage is given below:
𝒇
𝒏
% = x100

Wherein:
% = Means Percentage
n = number of class
f = means Frequency
2. Spearman’ s Rho Correlation
The researcher used Spearman’s Rho Correlation since the following variables are
ordinal and non - parametric data will test the independence of data and to measure

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the strength and direction of a relationship of association between two ranked

variables.

𝟔𝜮𝑫𝟐
𝒓𝒔 = 𝟏 −
𝒏(𝒏𝟐 − 𝟏)
Wherein:
r = Spearman’s Rho Correlation Coefficient
d ⱼ = Difference between the two ranks of each observation
n = number of observations

BIBLIOGRAPHY

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