New Era University

Integrated School
FAAP-ASCU-AAI Level III Re-accredited
No.9 Central Avenue. New Era, Quezon City

IMPORTANCE OF HANDLING PERSONAL

FINANCES OF SELECT VARSITY PLAYERS

A Term Paper Presented to the

Practical Research 2 of New Era University

Dr. Daniel E. Hebron

Santiago, Enrico S.

Dela Cruz, Gil D.

Tolentino, Jasmer I.

Bautista, Arjay A.

Perona, Ria H.

September 2019
 CHAPTER 1
THE PROBLEM AND ITS BACKGROUND

Introduction
Student Athlete is the future in our professional sports, often find themselves in a position

where they go from having limited financial resources to exponentially higher incomes with

little experiences in managing money. In our country many student athletes go to universities to

try out and to get scholarship. Many Student athletes are from provinces so they need to

manage their money for daily living. The purpose of this research paper is to provide financial

guidance for student athletes who are planning to pursue a professional career.

According to Stephanie R. Reyes (2017) Student athletes who transition to the world of

professional sports often find themselves in a position where they go from having limited

financial resources to exponentially higher incomes with little experience in managing money.

Further, it can be difficult to find a financial advisor that is trustworthy – especially for athletes

who travel abroad to continue their sports careers. Since careers are typically short – less than

10 years – for athletes, sound money management is even more important for those who earn

large salaries for a short time period.

The purpose of this paper is to provide financial guidance for professional athletes and

student-athletes who are planning to pursue a professional career. This paper discusses creating

a budget, saving for emergencies, and off-season and foreign currency issues.

Warren and Tyagi (2006) call “must-haves”. They include housing, transportation, groceries,

insurance, and the clothes you really need. Although the specific items that fall into this

category will vary slightly from one person to the next, this category includes the items that an

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individual requires regardless of his income. However, items such as charitable contributions

and cellular phone service are a necessity to some but a luxury to others. This category is the

key to making this spending plan work. Although the majority of your money is allocated to

Needs, many people struggle to constrain their spending in this category to just 50% of their

after-tax income.

Allowance is a necessity for every student. It means survival. It can also help students be

financially responsible. Being essential, it just is right to state that the students shall be able to

budget their allowance appropriately. The problem is how to do it. Doing so isn’t easy since

students need to budget their allowance between their needs and wants. Also some only have

limited amount of money. Proper Budgeting is important. If done responsibly, It can give

students’ needs and wants. Due to factors that can affect budgeting, there exists a difference on

planning budget. The manner in which students manage their money is based on several factors

such as age, traits, and knowledge. This is the main focus of the study the personal handling

practices of students. To asses if the students possess financial management skill. To know

how they manage their finances and impact of the variables to their personal handling

practices.

Related Literature
However, according to (2017) with savings rates at record lows and inadequate

long-term financial planning for retirement, financial well-being has become an important

topic for individuals and households as well as for societies and countries. Research on the

topic, however, remains scarce and scattered across disciplines. The present paper aims to

consolidate and extend knowledge on financial well-being and makes a three-fold contribution

to the discussion. First, we propose a new definition based on a perceptual perspective of

financial well-being and link it to an individual's current and anticipated desired living standard
IMPORTANCE OF HANDLING PERSONAL FINANCES OF SELECT VARSITY PLAYERS

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and financial freedom. We then develop a framework that distinguishes key elements of

financial well-being; namely, interventions and financial behaviors, consequences, contextual

factors, and personal factors. We then present a research agenda to guide future research on

financial well-being. This work is designed to inspire researchers to continue expanding the

knowledge so that financial institutions can take measures to increase financial well-being.

While money is not really talked about during the average social gathering, you probably know

some friends or family members who seem to always struggle with their finances. Without

going into a deep philosophical discussion about money and spirituality, it’s a fact that you

need money in order to afford basic necessities in life. Money impacts all of us and our

decisions have an impact on our finances. Living paycheck to paycheck can be a very stressful

way to live. While you may have a job that pays the bills, an emergency or unexpected big

medical bill has the potential to wreak havoc on your life. Financial literacy is similar to

learning any other language. You have to use and apply your knowledge to stay proficient.

There are certain terms and concepts you need to be aware of, and practice makes perfect when

you’re building your awareness with money matters. Regardless of your age, occupation, or

income level, having a solid grasp on your financial situation helps you to be responsible with

how you allocate the money that you earn. You’ll also have to be honest with yourself, so that

you know how much money you need to live a lifestyle that makes you happy. Garman &

Forgue(2000) defines financial literacy as knowing the facts and vocabulary necessary to

manage one’s personal finances successfully.

Godwin (1994) studied attitudes toward planning and financial management

practices. The scales were “Planning is essential to successfully managing one’s life,”

“Thinking about where you will be financially in 5-10 years is essential for financial success,”

and ”Planning for the future is the best way of getting ahead.” A positive relationship was

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found between practices and attitudes. Economic well-being can be measured on situational

(objective) and psychological (subjective) dimensions. Objective measurements such as

income, wealth, or other objective indicators of the material situation affect an individual’s

sense of well-being. Subjective economic well-being encompasses an individuals’ satisfaction

with income, savings, and job; perception of opportunities and capacity or inclination to

capitalize on them; ability “to make ends meet”, sense of material security, sense of the fairness

of the reward distribution system and so forth (Strumple, 1976).

Financial well-being is the outcome of the financial management process, and it is

affected by financial attitudes, knowledge, and behaviors. Researchers have suggested that

financial well-being is an outcome of financial management (Beutler & Mason, 1987;

Fitzsimmons & Leach, 1994; Rice & Tucker, 1986). Financial management practices are

essential to financial well-being (Beutler, & Mason, 1987; Dickinson, 1996; Fitzsimmons &

Leach, 1994; Godwin & Carroll, 1986; Hira, 1987). Attitudes toward financial management

have been found to influence financial well-being (Wilhelm, et al., 1993). Financial knowledge

also has been found to be related to financial satisfaction (Hira et al., 1992; Mugenda et al.,

1990).

One of the challenges that every student encounter is to manage the money their

parents provide them. Many students are having a hard time in terms of budgeting their

allowances. Money as one of the main necessity plays significant role in every student to

survive. The manner in which students manage their money depends on their daily needs;

somehow it changes due to some factors. Students have their personal needs, and through this

study we will know how and where they generally spend their money. The more knowledge

students have about their financial responsibility and status the less likely they are to be in debt

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(Norvilitis, et al., 2006). According to study women are more likely to report having budget

than men (Norvilitis, et al., 2006).

Theoretical Framework
The literature and studies cited in this chapter tackle the different concept,

understanding, and ideas,conclusions and different development related to study of the past

up to the present and which serves as the researchers guide in developing the project. Those

that were also included in this chapter helps in familiarizing information that are relevant and

similar to the present study.

Conceptual Framework

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Statement of the Problem
The researchers conducted a study to know the Importance of Handling Personal

Finances to Selected Varsity Players. They seek for the answers in the following specific

questions.

1. Profile of the respondents.

1.1 Age

1.2 Sex

1.3 Sport

2. How much is your allowance?

2.1 Daily

2.2 Weekly

2.3 Monthly

3. As a varsity player, is it enough for you?

3.1 Food

3.2 Transportion
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 4. What are your financial strategies?

4.1 Budgeting

5. How does the school budget the allowance of their Varsities?

5.1 Each sport

6. Does the budget that the school provides for the Varsities enough?

6.1 Daily

6.2 Weekly

6.3 Monthly

Null Hypothesis
Student athletes can budget their allowance on the daily basis but they had no time
because of their status “student athletes”.

Significance of the Study

This research should be beneficial to the student athletes because they will know how

to handle their personal finances. In this research the student athletes can be aware how to

handle their personal finances properly.

This research would also be to the beneficial to teachers because they aware on how

the student athletes cooperate to their classes.

Also to parents because they know how many allowance they can give to their children.

Scope of Limitations
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 This Study focuses on the importance of handling personal finances of selected

Varsity players of New Era University Main Branch S.Y. 2019-2020. The researchers believe

that any connectivity found that may be helpful enough for the betterment of this study

should be given attention to.

Definition of Terms

1. Student Athletes – are full time students and athletes at the same time
2. Personal Finances– is defined as the management of money and financial decisions for
the athletes
3. Try Out – a test of the potential of someone or something, especially in the context of
entertainment or sports.
4. Financial Guidance – providing the athletes need by their perspective university or school
5. Athletic Scholarship - is a form of scholarship to attend a college or university or a private
high school awarded to an individual based predominantly on his or her ability to play in
a sport

6.Financial Behavior – it can be defined as any human behavior that is relevant to money
management

IMPORTANCE OF HANDLING PERSONAL FINANCES OF SELECT VARSITY PLAYERS