DASMARIÑAS INTEGRATED HIGH SCHOOL, SENIOR HIGH SCHOOL DEPARTMENT

CONGRESSIONAL SOUTH AVENUE DASMARIÑAS CITY, CAVITE

BUSINESS FINANCE AS A CORE SUBJECT AND ITS IMPACT ON THE

BUDGETING AND FINANCIAL DECISION-MAKING OF SELECTED SENIOR HIGH
SCHOOL GRADE 12 ACCOUNTING, BUSINESS AND MANAGEMENT (ABM)
STUDENTS OF DASMARIÑAS INTEGRATED HIGH SCHOOL

A Research Presented to the Faculty of Senior High School Dasmariñas Integrated High School
In Partial Fulfillment of the Requirements for Senior High School in Accounting, Business and
Management (ABM)

Presented by
Quizona, Joseph B.
 Table of Contents
Acknowledgments ……………………………………………………………………………….. i
Chapter 1 ………………………………………………………………………………………… 1
Background of the Study ………………………………………………………...……… 1

Statement of the Problem ………………………………………………………...……… 2

Significance of the Study …………………………………………………………...…… 2

Scope and Delimitation ………………………………………………………………….. 3

Chapter 2 ……………………………………………………………………………………..….. 4

Review of Related Literature and Studies ……………………………………………..... 4

Theoretical Scheme/Paradigm …………………………………………………………... 6

Hypothesis ……………………………………………………………………………..… 7

Definition of Terms …………………………………………………………………..….. 7

Chapter 3 ……………………………………………………………………………………..….. 9

Research Design ……………………………………………………………………...….. 9

Context and Participants ……………………………………………………………...…. 9

Instruments ………………………………………………………………………………. 9

Statistical Treatment Applied ………………………………………………………..…. 10

Bibliography …………………………………………………………………………………..... 11
 Acknowledgments

For this purpose, I, the researcher, would like to offer my heartfelt appreciation to our
Dear Lord God, whose powers are all around us and who has blessed me with experiences,
knowledge, and individuals who inspired me to complete this study.

I am grateful to my teacher, Joe Dale, for patiently showing us how to turn this blank
piece of paper into something functional.

Salute to my parents for putting in long hours at work simply to ensure that I acquire the
education they desire for me and for ensuring that my allowance will not be wasted.

I am also thankful that despite our hectic schedules and heavy workloads, we have
friends who make time to socialize with us.

I am also grateful to this school, the Dasmariñas Integrated High School, for inspiring me
to pursue this education with zeal and enthusiasm for the benefit of future generations.

MARAMING MARAMING SALAMAT PO to all of you.

 Chapter 1

Introduction

This chapter presents an overview of the study, which is the groundwork for the
researcher in conducting this research.

1.1 Background of the Study

This study titled “Business Finance as a Core Subject and its Impact on the Budgeting
and Financial Decision-making of Selected Senior High School Grade 12 Accounting, Business
and Management (ABM) Students of Dasmariñas Integrated High School” will be conducted at
the Dasmariñas Integrated High School to comprehend the impact of Business Finance as a core
subject to the budgeting and financial decision-making of the selected Senior High School Grade
12 ABM students.

Most Senior High School Grade 12 ABM students struggle with budgeting allowances as
some handle it well, while others do not. Business Finance is a core subject that focuses on the
fundamental ideas, methods, and procedures of financial operations in business management. It
presents the key concepts and principles needed in making financial decisions, as well as the
basic structure and instruments for financial analysis and planning. Furthermore, it provides
fundamental concepts and principles in creating financial and investment decisions.

In support, Condino, R. V. et al. (2020) stated that Business Finance lessons can help the
students improve themselves by becoming financially literate. Spending money with a plan,
avoiding debt, learning how to save money, making decisions before spending, controlling
themselves to spend a considerable amount of money, and being wise are some of the things that
must be learned by the students.

Good financial decision-making is vital for the Senior High School Grade 12 ABM
students' financial stability since it allows them to pay for regular educational expenses. Smart
objectives are specific enough to prompt action, recognizing that having more funds is essential
for getting something immediately. Financing strategies will account for unexpected expenses
and changes while ABM students are at school. Whether internal or external, good budgeting and
financial decision-making will have an impact on the actual spending strategy of students’
allowances and other expenses.

The objective of this study is not just to comprehend the impact of Business Finance as a
core subject on the budgeting and financial decision-making of selected Senior High School
Grade 12 ABM students of Dasmariñas Integrated High School. It aims to determine how
selected Senior High School Grade 12 ABM students of Dasmariñas Integrated High School
handle their finances efficiently. Also, it is to help the students to understand the value of good
financial decision-making in their daily financial management.
1.2 Statement of the Problem

The study entitled “Business Finance as a Core Subject and its Impact on the Budgeting
and Financial Decision-making of Selected Senior High School Grade 12 Accounting, Business
and Management (ABM) Students of Dasmariñas Integrated High School” aims to answer the
following research questions:

1. Demographic Profile in terms of:

a. Age
b. Sex

2. What impacts did Business Finance provide as a core subject to the budgeting and
financial decision-making of selected Senior High School Grade 12 Accounting,
Business and Management (ABM) students of Dasmariñas Integrated High School?

3. What budgeting strategies were acquired while studying Business Finance, and were the
Senior High School Grade 12 ABM students of Dasmariñas Integrated High School able
to manage their funds efficiently?

4. How does good financial decision-making influence the Senior High School Grade 12
ABM students’ daily financial management?

5. How can Business Finance lessons assist students in becoming financially literate?

1.3 Significance of the Study

This study will generate information about Business Finance as a core subject and its
impact on the budgeting and financial decision-making of selected Senior High School Grade 12
Accounting, Business and Management (ABM) students of Dasmariñas Integrated High School.
The following are the possible beneficiaries of this research:
 ABM Students

The information that will be generated from the study will help the students comprehend
financial literacy, understand the importance of spending money, and provide them
guidance in managing their funds efficiently.

Parents
This research would also benefit the parents in assisting the students in budgeting their
allowances.

Future Researchers
The data gathered and produced results and information will help them in their studies as
a reference basis. It will serve as a guide for other researchers in their studies of Financial
Management.

1.4 Scope and Delimitation

This study will focus on the impact of Business Finance as a core subject on the
budgeting and financial decision-making of selected Senior High School Grade 12 Accounting,
Business and Management (ABM) students of Dasmariñas Integrated High School. The study
was conducted to generate information about the effectiveness of Business Finance as a core
subject, as well as the budgeting and good financial decision-making in the daily financial
management of ABM students.

This research will be conducted in S.Y. 2021-2022. The researcher will be interviewing
selected Senior High School Grade 12 ABM students of Dasmariñas Integrated High School who
have experienced financial management, struggled with financial management, and students who
are managing their funds efficiently. The participants consist of 20 selected Senior High School
Grade 12 ABM Students of Dasmariñas Integrated High School.

This study will not focus on other variables irrelevant to Business Finance, budgeting and
financial decision-making. The other groups of people who are not part of the Senior High
School Grade 12 ABM strand of Dasmariñas Integrated High School of S.Y. 2021-2022 are not
within the scope of this research. This study would gather data by collecting answers from
participants through online interviews. Through this process, the researcher will be able to
generate sufficient information about the impact of Business Finance as a core subject on the
budgeting and financial decision-making of selected Senior High School Grade 12 Accounting,
Business and Management (ABM) students of Dasmariñas Integrated High School.
 Chapter 2

This chapter will provide an overview of the study and define the impacts of Business
Finance as a core subject on the budgeting and financial decision-making of selected Senior High
School Grade 12 Accounting, Business and Management (ABM) students of Dasmariñas
Integrated High School. To determine whether Business Finance as a core subject on the
budgeting and financial decision-making of the students will result in either becoming more of a
benefit or an issue for them. The resources utilized by the researcher within this chapter are
online books, journals and articles that are all credible sources.

2.1 Review of Related Literature & Studies

This research covers the review of related literature and studies that the researcher found
and collected in terms of improving their research as it assists them in a greater understanding of
their selected topic.

Financial Literacy

Financial literacy refers to the knowledge and understanding of how money is

earned, spent and saved. Students should be educated on how money works and how to
make wise financial decisions. Consequently, Business Finance was utilized to improve
the financial literacy of the Senior High School Grade 12 Accounting, Business and
Management (ABM) Students.

According to Mandell & Hanson (2009), the term "financial literacy" generally
refers to the ability of consumers to make financial decisions in the short or long term for
their best interests. Low levels of financial literacy have been blamed, in part, for poor
mortgages made by many Americans of limited means, which contributed to the recent
meltdown in the United States and worldwide banking systems. In addition, the lack of
financial literacy has probably contributed to low or even negative rates of personal
savings.

Fikret Er (2017) stated that financial literacy is considered a very useful tool for
seeing how people deal with financial problems. If people have confidence in financial
literacy, they can manage these problems better. Governments pay attention to the
financial literacy of their people to formulate policies that would solve society's financial
problems. Furthermore, by using the information on financial literacy from different
countries, comparisons can be made. Countries can learn from other countries if the
levels of financial literacy between them are similar. Its levels can be used as benchmarks
for listing countries in ascending or descending order, and measuring the financial
literacy of people can also help governments create better retirement plans.
 Lusardi and Mitchell studied this subject. In their review, the evidence reveals that
many households are unfamiliar with even the most basic economic concepts needed to
make saving and investment decisions. Such financial illiteracy is widespread: the young
and older people in the United States and other countries appear woefully under-informed
about basic financial concepts, implications for saving, retirement planning, mortgages,
and other decisions. Consequently, governments and several nonprofit organizations have
undertaken initiatives to enhance financial literacy.

Financial Management Behavior

Horne and Wachowicz (2002) proposed that financial management behavior is the
determination, acquisition, allocation, and utilization of financial resources, usually with
an overall goal in mind. On the other hand, Weston and Brigham (1981) stated financial
management behavior as an area of financial decision-making, harmonizing individual
motives and enterprise goals.

According to Joe (2008) consequently, financial management is mainly concerned

with effective funds management. In line with this, effective financial management
behavior should improve financial well-being positively because failure to manage
personal finances will lead to serious long term negative social and societal
consequences.

In addition, as per Bowen (2002), understanding key financial terms and concepts
is needed to function daily in American society. It includes knowledge about items
related to banking, auto, life, health and homeowner’s insurance, using credit, taxes, and
investing. While there are other important areas related to personal finance, these are
areas most American adults encounter as they make daily financial transactions and
decisions. Researchers indicate that well informed, financially educated consumers are
better able to make good decisions for their families and thus are in a position to increase
their economic security and well-being. Knowledgeable consumers who make informed
choices are essential to an effective and efficient marketplace. Furthermore, the number
and types of financial education programs have grown since the mid-1990s. Many of
these programs focus on providing information to consumers while operating under the
implicit assumption that increases in information and knowledge will lead to changes in
financial management practices and behaviors (Hilgert, Hogarth & Beverly, 2003).

Student Budgeting and Spending Behavior

Budgeting has an impact on the actual spending strategy for students’ allowances
and other costs, whether internal or external.

According to Stollak, Vandenberg, Steiner, & Richards (2011), the way college
students manage their finances depends on many factors, such as age, personality, and
 knowledge (Norvillitis et al., 2006). College students are in a unique position because
they have limited income and high costs. Therefore, they manage money differently
(Micomonaco, 2003). The more knowledge the students have about their financial
responsibility and status, the less likely they are to be in debt. (Norvilitis et al., 2006).

In “Borrowing Against the Future: Practices, Attitudes and Knowledge of

Financial Management Among College Students,” Micomonaco (2003) finds college
students tend not to have a budget or calculate credit card bills based on their actual
spending. For example, there was a significant number of students that did not know their
socioeconomic status or how much they would owe in student loans when they graduate
(Micomonaco, 2003). Also, only 36% of students with credit cards reported paying off
their credit card bills monthly (Norvilitis et al., 2006). However, college students are
worried about their future financial status. 67% of newcomers to four-year colleges care
about paying tuition. It is a major concern that has been raised over the last decade
(Gordon, 2010). For example, there are many groups of students who change the way
they collect and mark credit, such as how they use credit cards.

2.2 Theoretical Scheme

The researcher will discuss the study through the aid of several theories. The following
theories listed below will help the researcher determine the relationship and impact of Business
Finance as a core subject to the budgeting and financial decision-making of selected Senior High
School Grade 12 Accounting, Business and Management (ABM) students of Dasmariñas
Integrated High School.

The Theory of Personal Budgeting (Garpelti, 2016) In this theory, all existing studies
informally suggest that consumers use personal budgets to manage self-control problems. It is
often caused by present bias, which interferes with their saving goals. It says that consumers
should use personal budgets.

The Theory of Planned Behavior and Financial Literacy (Kennedy & Brian, 2013)
Presumes that there will be a positive relationship between attitudes toward credit card debt,
subjective norms, perceived behavioral control and behavioral intention. Attitudes, subjective
norms, and perceived behavioral control will predict behavioral intention.

Perceived behavioral control and behavioral intention will directly predict reported credit
card debt. Financial literacy will be positively correlated with behavioral intention as it will
predict behavioral intention above and beyond attitudes, subjective norms, and perceived
behavioral control (Kennedy & Brian, 2013).
2.3 Hypothesis

The purpose of this study is to examine the following hypothesis:

(a) Business Finance as a core subject has a significant impact on the budgeting and financial
decision-making of selected Grade 12 Senior High School Accounting, Business and
Management students of Dasmariñas Integrated High School.

(b) Selected budgeting strategies acquired from studying Business Finance assisted the
selected Senior High School Grade 12 Accounting, Business and Management students
of Dasmariñas Integrated High School in managing their funds efficiently.

(c) Good financial decision making has a significant influence on the selected Senior High
School Grade 12 Accounting, Business and Management students’ daily financial
management.

(d) Business Finance lessons help Grade 12 Senior High School Accounting, Business and
Management students of Dasmariñas Integrated High School to become financially
literate.

2.4 Definition of Terms

To understand the terms used in the study, listed below are the definition of terms:

ABM

This strand is intended to serve as an introductory course in accounting, business

and management, in which it teaches students to think logically and scientifically. It
introduces the fundamentals of accounting, business, and management concepts and
principles to students in preparation for college degrees within the business and industry,
where their contributions as future accountants, entrepreneurs, and business leaders are
critical to the advancement and development of the industry.

Business Finance

Business Finance refers to finances obtained by firm owners to suit their needs. It
could include starting a business, acquiring more funds to finance business operations,
obtaining financing to acquire capital assets for the business, or dealing with a cash flow
crisis.

Budgeting

The process of making a spending plan is known as budgeting. A budget is a

name for this spending strategy. Creating a spending plan lets a person know ahead of
time whether they will have enough money to do the things they need or want to do.
Budgeting is the process of balancing one’s spending and income.

Financial Decision-making

The process of analyzing the benefits and drawbacks of a financial decision is

known as financial decision-making.

Financial Management

The strategic planning, organizing, directing, and managing of financial

endeavors in an organization or institute is known as financial management. It also entails
applying management concepts to an organization's financial assets, and it plays a vital
role in fiscal management.

Financial Literacy

Financial literacy refers to the capacity to comprehend and use a variety of

financial concepts and abilities, such as personal financial management, budgeting and
investing.

Funds

A fund is a collection of money set aside for a specific purpose. It can be created
for a variety of reasons, such as a municipal government putting money aside to build a
new civic center, a college putting money away to grant a scholarship, or an insurance
company putting money aside to settle its customers' claims.
 Chapter 3

This chapter encompasses the approaches employed in the data collection and analysis
for the research. The methodology will cover topics including the research design, context and
participant, instruments, and statistical treatment applied.

3.1 Research Design

Phenomenology Research Design

This study utilized phenomenology research design. According to Creswell

(2013), the phenomenology research design is an approach to qualitative research that
focuses on the commonality of a lived experience within a particular group. The
fundamental goal is to arrive at a description of the nature of a particular phenomenon.
This qualitative research design is best applicable for this research since it describes the
hypothetical problem well, as there is little evidence in the study and literature.

3.2 Context and Participant

Purposive Sampling

In selecting participants, this study will be using non-probability sampling, which

is purposive sampling. In addition, Crossman (2020) stated that purposive sampling is a
non-probability sample that is selected based on the characteristics of the population and
the objectives of the study. It is different from convenience sampling and is also known
as judgmental, selective, or subjective sampling. Furthermore, this kind of
non-probability sampling fits best for the study’s selection of participants since it has
only three criteria that should be sought. The criteria of the participants should fall under
the following: selected participants must be officially enrolled students at Dasmariñas
Integrated High School, Grade 12 Senior High School students, and must be Accounting,
Business and Management (ABM) students.

3.3 Instruments

Interview

In this study, the researcher will conduct a localized interview. According to

Boyce and Neal (2006), conducting intensive individual interviews with a limited number
of respondents can help explore their perspectives on a particular idea, program or
 situation. The objective of this study is not just to comprehend the impact of Business
Finance as a core subject on the budgeting and financial decision-making of selected
Senior High School Grade 12 Accounting, Business, and Management students. It also
aims to determine how selected Senior High School Grade 12 ABM students of
Dasmariñas Integrated High School handle their finances efficiently. This is to help
students understand the value of good financial decision-making in their daily financial
management. With this, conducting interviews is the best instrument to determine the
objectives of the research.

3.4 Statistical Treatment Applied

Inferential Statistics

This study applied inferential statistics as a statistical treatment to gain a better

understanding of the occurrence and provide probable reasons. This statistical approach
enables the researcher to develop conclusions based on inferences and collected
outcomes.

According to Chin and Lee (2008), inferential statistics helps suggest

explanations for a situation or phenomenon. It allows a person to draw conclusions based
on extrapolations and is, in that way, fundamentally different from descriptive statistics
that merely summarizes the data that has been measured. Furthermore, Allua and
Thompson (2009) stated that inferential statistics encompass a variety of statistical
significance tests that investigators can use to make inferences about their sample data.
These tests can be divided into three basic categories depending on their intended
purpose: evaluating differences, examining relationships, and making predictions. The
decision of which procedure to use is determined, in part, by the investigator's research
question or research design.
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