Philippine Women’s College of Davao

STRATEGIES IN BUDGETING

A Qualitative Research

Presented to the Faculty of the Tertiary Education

Philippine Women’s College of Davao

Davao City

In partial fulfillment of the requirements in

PURPOSIVE COMMUNICATION

Karl Louie R. Nepomuceno

Kenneth Rey S. Calla

September 2019
I. Introduction

Global on Budgeting

Countries, like United States practiced cutting off their tax and spend the money

for such programs, service, and infrastructures in order to boost growth. Though

the US cannot conduct deficit financing to support operating budgets due to

some economic reasons (Katherine G. Wiloughby, 2014). According to Hanoi,

Vietnam (2007), challenges arise from the need to build clear policies, making

sure that the budgets is related with those policies, and spending is in line with

allocations, and also the need to measure the result and feed backs of

policymaking. Michael Spackman (2002) shows that, effective budgeting

depends on a continuing program of policy development and review, it is mostly

separated from the budget setting process. While the linking of analysis and

central budgeting is essential, the actual process of analysis and budgeting are

primarily separated in time, and the interaction between them is rarely direct.

National on budgeting

Having enough income to provide basic needs is a challenge to the

majority of the Filipinos, and not only for those families who are poor. A survey

was conducted by the World Banking collaboration with Bangko Sentral ng

Pilipinas to provide data on household financial behaviour decisions and

knowledge of financial concepts. The result suggested that most of Filipinos

reason of running short of money for basic necessities is lack of income.

However, insufficient income is not the only reason why most Filipinos run short

in money. There are other factors such as unexpected expenses due to

emergencies, over spending and most especially lack of planning and budgeting.

Filipinos who plan and budget their expenses have greater control of their

finances (Nataliya Mylenko, 2015).

Local on budgeting

According to Anwhar Shah (2007), the local government use participatory

budgeting, in which the citizen involvement was present in some programs.

Almost the total spending is for salaries and traditional government overheard,

there is lack of cities that will accept programs that derives citizen input unless

there is a willingness to redirect resources. Local institutions and government

established budgeting institutions that helps the local citizens from knowing or

tracing the activities of the local government. Somehow it helps the local services

to have a proper financing equally with all the local citizens. From this context,

international and national financial institutions can easily determine the needs of

local government services. Moreover, this context started because of the

increasing population of citizens who needs to be served and helped through

financial capital that can provide them a better life.

Overall budgeting is a necessity may it be local, national or international.

Establishing budgeting helps us know and trace our money which can help us

know where we can put our money wisely. The lack of income is the common

result to shortage of money but other factors such as emergencies and lack of
planning and budgeting can also result to this. People who plan their budget and

expense are most likely have enough funds left even after paying their basic

necessities. With this we could say that regardless of income, location, work,

age, people who know how to budget have greater control of their finances.

Research Questions

This study will determine the strategies conducted by the student boarders in

order to save and the effects of it.

And also, this study would like to seek answers from the following questions:

1. What are the strategies of the student boarders in budgeting?

a. What are the positive and negative strategies of student

budgeting?

b. How can student boarders separate their expenses from their

wants and needs?

2. What is the best way in order to have a healthy budgeting strategy for

a student boarder?

Scope and Limitations

The study is focused on the budgeting strategies of a student or learner who

lives by themselves especially those who are staying in dorms and boarding

houses. The primary data gathering method to be used will be interview to

determine how they manage their finances on their own.

 The study is delimited to Grade 12 learners of AdDU SHS that lives on their

own. This research will take place in Ateneo de Davao University Jacinto

Campus.

Data Gathering Procedures

As the researcher, we were aware that we would take rigorous steps in the data

collection, but with a great desire to complete the investigation, the following

steps were followed:

First, we will identify our participants who are grade 12 learners of Ateneo de

Davao University and who are currently boarding.

Second, we will give our chosen participants a letter asking their permission to

conduct our research for them to also have ideas about our research.

And lastly, we will conduct the interview using a voice recorder to give our

participants their privacy at the same they can confidently give their experience

with us.

Research Participants

The researcher aims to have 5 participants. This number of participants was

supported by two authors, first is Creswell (1998) as cited in Qualitative sample

size (2018), which recommends five up to 25 participants. The criteria for the

participants to be gathered is first the grade 12 learners who are currently

studying at Ateneo de Davao University. Second, the participant had experienced

living in a dormitory, boarding house, or apartments. Third, the participant is

expected to be flexible to open up their experience and must be realistic in telling

the truth about his or her experiences. Fourth, the participant should have the

different experience regarding budgeting their money. Fifth, the participant

should be patient and cooperative. Sixth, the participant should be trusted and

reliable. And lastly the participant is approachable and can easily be contact or

reached.

Choosing the proper number of participants considers availability, flexibility, and

honesty of the respondents, that would share the respondents own experience

about a certain situation that reflects the main point of the study. On the other

hand, the more the participants the more the data are gathered. The more it is

more realistic and measurable in terms of the different opinions of the participant

itself. Also, it is more understandable for the readers if the topic stated, are

supported by such evidences.

II. Body

Student boarders, a general term for a student who lives far away from home

just to study in a specific school. Which leads them to be so called as

independent students, they cook their own food, buy their own groceries and the

rest. Through living on their own they were able to learn how to budget and save

their money without the guidance of a parent or guardians. Basically, they are a

product of an independent-dependent student.

Money is one of the basic needs of every individual in today’s generation.

Without the presence of money there is nothing to be owned, like buying,

investing, and also studying. Money became the life of all people, but somehow

they do not know how to give importance with what they have. Especially for all

the students now a days it was like nothing is much more important than money.

Purchasing the wants’ regardless if it’s needed or not unless it can satisfy the

heart of an individual.

Budgeting is nowhere to be found for a student. There are also some

students who are sacrificing a lot of things in order to save and budget their

money. All the money that they saved has a lot of purpose for them and

sometimes it is not enough to cover up all their demands. Huge amount of

allowance became much bigger for some reasons that all the supplies and goods

are getting more expensive compared to the past years.

Students who lives in dormitory, boarding house, and apartment has a lot of

strategies to budget their money or somehow their allowance. Because of

budgeting somehow it can affect a lot of things like academic and social

experience of the students. It may also affect their health due to some reasons.

Analysis

According to David Carnes (2017), costing is a part of budgeting and is

necessary precondition to all other stages of the budget planning process.

Budgeting can be divided in to the planning and the control phase. This is very

important to our research because in our research it is stated that proper

planning of how to budget your money is important for you to effectively control

your money. A budget is a way of being intentional about the way you spend and

save your money. It is said that with budgeting, you control your money and not

your money controls you. Budgeting saves you the stress of suddenly having to

adjust to lack of funds because you did not initially plan how to spend them. It

also helps you decide if you want to sacrifice short term spending like buying

coffee everyday in exchange for a long-term benefit like a cruise vacation. In

budgeting, you get to identify and eliminate unnecessary spending like late fees,

penalties and interests. These seemingly small saving can add up over time.

Know how much you can reasonably spend and be realistic about it. Being

disciplined to save a smaller amount of money on a regular basis is generally

better than saving more money sporadically.

Future Effects of Budgeting

Budgeting can be a really big help for the future, it has a lot of effects that

can help a lot of things like, it can turn people to be financially independent in a
way that a person can rely on having enough money for certain things. It can also

let a person live a good life by having the feeling of being organized, being

organized in knowing what’s more important and knowing what is more prioritized

first. Being a student money is often tight. It is an important time to set short-term

and long-term financial goals to develop a budget. Others may think of budgeting

as a challenge or make it a game to meet certain goals however, students try to

set financial goals that are realistic and based on their situation that can make

budgeting as a person’s habit (10 Reasons Why You Should Save Money, 2018).

According to Goldberg (2017), budgeting is a way to plan your income and

expenses over a period of time so that it can lead a person to do its best to

achieve a certain goal, also setting a budget is the best way to become a

disciplined saver.

Overall, budgeting for student boarders gives value and mostly a huge

responsibility. By which they were able to spend less of their allowance and save

it for a certain purpose. On the other hand, there are some information that says

budgeting can give a negative effect for the students, it might lead to a certain

situation in which a student could not focus more on their study because they

have lacking of food or etc. The student must know how to have a healthy

budgeting without affecting their physical, mental, spiritual, and emotional

stability. From the different sources given by the researcher it is clearly

emphasize what is all about student boarder strategies on budgeting.

III. Conclusion

Strategies of the student boarders in budgeting

Boosting the budget. We found out that the Ateneo Senior High School student -

boarders are really making ways to maximize their budget in a way where they

always make sure to allocate their money very well.

Major Themes Core Ideas

- Maximizing your budget

Boosting the budget - Proficient budgeting

- Over spending
Wasteful Spending
- Impulsive spending

Wasteful Spending. We found out that Ateneo de Davao Senior High school

boarders are also having difficulties in managing their money wherein they

sometimes forget to manage their money and end up overspending it.

Sorting of Allowances. We found out that most of the student boarders prioritized

their needs than other expenses and also their wants. They are just purchasing

their wants if they can save some money from their allowances at the end of the

week or month after paying all their expenses.

 Major Themes Core Ideas

- Prioritizing the needs than wants

Sorting of Allowances - Breaking down the other expenses

- Wants will always be the least

- Abrupt spending for what is needed

Time Dangling Expenses
- Spending depends on the situation

Time Dangling Expenses. We found out that the student boarder somehow

depends on the situation for them to purchase their needs and wants. They do

not need to assort their allowances because they have separate money given to

them for the other expenses rather than food.

Best way in order to have a healthy budgeting strategy for a student boarder

Allowance Management. We found out that there are different ways that the

student boarder used in order for them to manage their allowances properly.

Those strategies are not only for their health but also for their studies as well.

Major Themes Core Ideas

- Responsibility on handling money

- Balancing of expenditures
Allowance Management
- Managing of add-on expenses

- Finding comfort for studying

- Creating a list of what is needed

- Inconsistency of spending
Effectiveness of Budgeting
- Everyday reminder

- Taking a side of some allowances

Effectiveness of Budgeting. We found out that the strategies used by the student

boarders are quite effective for them because they were able to save their money

but somehow this is not healthy. Ways that leads them to a healthy and

unhealthy budgeting.

Being at the Accountancy Business Management (ABM) strand this

research can relate from those students who make business while studying.

Some of the students in Ateneo de Davao University Senior High School budget

their money in order to buy some of the ingredients for their business such as

munchkins, cookies, brownies, and etc. There are times that they just choose to

budget their money for them to buy some things and sell it online or to their

friends. In this generation students are strategic enough to gain money using

different types of business and after that all of their profit will be used to buy their

wants and needs. Being part of this strand, it is quite easier to save money if you

have fixed mindset regarding on what you need to buy and the things that can be

set aside.

This research is suggested to those who want to learn more about how to

manage money wisely. This made me realize that this research helps a lot of

people improve their budget estimates and how to support better decisions in

budgeting money. I discovered a lot of ways and techniques based from all the

experience from the participants in this research in spending money wisely.

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