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One of the highly celebrated doctrines in Economics is the doctrines of
intertemporal choice. In this context, the rationality of the person is not measured based
on basic mental prowess but on his spending pattern. It is highly regarded as worthy
emulating when one foregoes current spending in lieu of future choices provided the
derived benefit is greater. However, no matter what mode of spending is adhered to,
what dominates as a phenomenal event is the surging up of international prices of wide
range commodities. A soar in price of the major needs of consumers is of special
concern to the worlds economy particularly to developing countries like the Philippines.
Even though Philippines is now one of the newly industrialized countries, thousands of
Filipinos become frustrated due to the surging prices of commodities and low standards
of living in the country. An increasing number of the Filipino workforce leaves the
country everyday to seize better income opportunities in order to cope with the recent
In todays era, families financial management practices like saving,
spending, budgeting, and borrowing are issues commonly discussed daily in
every household. The rising of prices offers few means of substitution and adjustment

of personal finances through proper financial management and allocation especially for
the urban poor. In managing financial matters, there is a need to understand the
financial management practices of every household and the system in which they make
financial decisions. It requires one to be fully cognizant and have a justifiable knowledge
in managing personal finances.
As financial management students, this is basically the reason why the
proponents conducted this study. This paper intends to explore the financial
management practices of every household in terms of the following categories: saving,
spending, borrowing, and budgeting in todays situation wherein the prices of
commodities are surging. It further intends to study the differences of every households
financial management practices in accordance with their economic classes and
educational attainments. Through the conduct of this study, the researchers aim to
gather the desired information from the affected households in Tagbilaran City on how
they will respond about the issue.


Statement of the Problem

The primary focus of this study is to determine the financial management

practices of the randomly selected households in Tagbilaran City with the soaring prices
of commodities. Driven by curiosity, the researchers wanted to ascertain the views
behind the following objectives:
1. The profile of household heads in terms of:

Civil Status
Educational Attainment
Number of members in every household
Monthly Household Income

2. What are the financial management practices of every households in accordance

with the following categories:
a. Saving practices
b. Spending habits
c. Budgeting practices
d. Credit practices
3. What are the major factors that can influence the financial management and their
impacts to every household?
Significance of the Study
In todays growing economy, financial management would be a great help to
improve the economic status of the people and its nation. Acquiring new ideas about
financial management and sharing it to the following sector may contribute a lot to go
beyond our limitations of thinking in terms of money management that may provide
practical practices in raising the level of our knowledge and behavior and leading us to
become financially aware how prices affect the income of every household.
Households. They will become more aware of the magnitude of their finances
which correspond to the advent increased of prices of commodities over the years. They

would also learn how to cope with this phenomenon while learning from their best
Business. Through this study, these firms and organizations will know the
impact of the increasing prices of commodities on the behavior and practices of every
Local Government. The government will be more aware on the situation of
consumers today with regards to the increasing prices of commodities. This may open
their consciousness to legislate and implement interventions in order for them to help
ease the burden of every household regarding this.
Researchers. During the conduct of this study, the researchers will learn about
the proper management of money while enhancing their knowledge and skills in
research. The researchers will likewise improve their interpersonal skills as they work in
Future Researchers. This study will be helpful for other researchers who may
be focusing on understanding the concept of managing finances of every household in
relation to other economic phenomena. The notable significance of this study is the
possibility that other researchers may be able to use the findings in this study for future
studies that will create an impact to society.

Scope and Limitation

This research will be conducted in the fifteen (15) barangays of Tagbilaran City
to determine the financial management practices of every household and its relation to

knowledge and behavior. This is limited only to the four areas of financial management:
saving, spending, budgeting, and credit management.
The researchers will adapt a purposive sampling to find out specific
correspondents. This study is using income as the specific parameter. Furthermore, the
result of the information being gathered from the selected respondents will be limited
only to their willingness and honesty in answering the survey questionnaire.

This research will be conducted in order to determine how every household
manages their finances, with the connection between knowledge and performance,
when the prices of major commodities are driven up. In order to answer this research
goal, the researchers opted to use the descriptive survey method with the assistance of
questionnaire which gathers information about the present existing condition.

Research Environment
Tagbilaran city is the provincial capital of the province of Bohol: the hub of
commerce and the lone city of the island. It is the principal gateway to the island
province of Bohol and is known as the City of Friendship. Tagbilaran lies on the southwestern part of the province, and has a total land area of 32.7 km, with about 13 km of
coastline. It is composed of fifteen (15) barangays the Bool, Booy, Cabawan, Cogon,
Dampas, Dao, Manga, Mansasa, Poblacion I, Poblacion II, Poblacion III, San Isidro,
Taloto, Tiptip and Ubujan wherein the study covers to know the financial management
styles of the consumers with their economic classes and educational attainment.

Research Participants
Since the research is multi-stakeholder wise, specifically the researchers
wanted to solicit reliable information from 100 respondents which will be categorized
based on the economic classes specifically on the level of their income provided by the
Research Center. They are described as follows:
AB (Upper Class)

- the most affluent group whose homes and lifestyles









economizing. Income range from P25, 000 and over

per month.
C (Middle Class)

- middle class households, whose homes and

lifestyles reflect comfortable living and the capacity to
indulge in a few luxuries. Income range from P10, 000
to P24, 999 per month.

D (Lower Class)

- lower-middle classes household who have some

comfort and means but basically thrive on a hand-tomouth existence. Income range from P4,000 to
P9,999 per month.

E (Extremely Lower Class)

- those who evidently face great difficulties in meeting

their basic survival needs. Income below P4,000.

Research Instruments

The study that will be conducted by the researchers, will be using a group
made survey questionnaire with two parts as a tool in gathering information. The
researchers will distribute personally the questionnaires to the chosen respondents.
The first part is for the respondents profile. The second part evaluates the type
of financial management practices of the respondents. It will also adopt a structured
interview to the affected consumers.
Respondents will be asked to answer the research instrument by writing the
necessary data on the first part and by checking among the choices in the second part.
Research Procedure
Gathering of Data.The researchers will secure the number of households in
Tagbilaran City from the City Hall. After identifying the number of households per
barangay, the researchers will go to the selected respondents administering the
questionnaire. Researchers will conduct a house-to-house visit to the identified class
AB, C, D, E respondents basing from the economic classification.
A letter of permission from the researchers will be sent to the Barangay
Captains in Tagbilaran City that we will be conducting a research study in their
community concerning the consumers financial management practicesin relation to the
rising prices of major commodities. Afterwards, the questionnaires will be retrieved for
data analysis and interpretation.
Treatment of Data. In determining the significance of date being gathered,
Descriptive Measures specifically tabulated description (i.e., tables), graphical
description (i.e., graphs and charts), and statistical commentary (i.e., interpretation of

the results) will be employed. They were specifically use to identify the financial
management practices in relation to knowledge and behavior.

Financial Management Practices are habits on how financial matters will be managed
and used.
Household is a group of people who are related by blood, by law or either of the two
and living under one roof which constitute a family.
Behavioral Methods are analysis of individuals' actions to identify behavioral patterns
as a result to a certain stimuli.
Cognitive Methods are ways that focuses on how individual thinks and assesses in
stressful situation.