Holy Rosary School of Pardo

El Pardo, Cebu City

BUDGETING: A QUANTITATIVE STUDY ON THE JUNIOR AND SENIOR

HIGHSCHOOL STUDENTS’ MANAGEMENT OF THEIR WEEKLY ALLOWANCE AT
HOLY ROSARY SCHOOL OF PARDO

A Quantitative Research Paper

Presented to:

Mrs. Flordiliza M. Ocariza

In Partial Fulfillment of the Requirements for

Practical Research 2

Submitted by:

Dela Concepcion, Jhudiel A.

October 2022
 Chapter I

Introduction

This chapter covers the background of the study, the statement of the problem, statement

of hypotheses, theoretical/conceptual framework, significance of the study, scope and

delimitations and definition of terms.

Background of the Study

Going to High School is an important part of any person’s life. It is probably the first time

students get to experience independence. Being independent is both a privilege and a

responsibility. To be a responsible student isn’t something that can be achieved overnight. It

needs to be put in mind and be an attitude. One of these responsibilities is managing their

allowances (Kazmier, 2004). One of the challenges that every student encounters 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 necessities plays a significant role in

every student surviving Senior High School (Babbie, 1997).

Students, on the other hand, learn to save their allowances as they grow and meet

different requirements in school as well as things they want to buy for their own. Budgeting is

one of the practical skills that come in useful for them (Norvilitis, et al., 2006). It helps them

attain a better understanding of financial matters that would become a handful in the future. 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.

 Due to factors that can affect budgeting, there exists a difference in planning budget. The

manner in which Senior High School students manage their money based on several factors such

as their age, personality traits and knowledge (Gordon, 2010).

Thus, the researcher conducted this study to focus on the personal budgeting practices of

Junior and Senior High School students from Holy Rosary School of Pardo. To assess whether or

not the students possess financial management skills. To know how they manage their finances

and the impact of various factors to their personal budgeting practices.

Statement of the Problem

This study aims to find answers to identify how the Senior High School students of Holy

Rosary School of Pardo manage their allowances and expenditures primarily every week. This

study also aims to inform and educate students on how to spend their money. Budget as the main

subject of this study will focus on the proper allocation of allowances of students in order for

them to properly utilize their weekly allowances.

And so, the researchers would like to focus on the following specific questions:

1. Describe the profile of the respondents in terms of:

A. Gender

B. Age

C. Location

D. Monthly Income of Parents

E. Weekly Allowance

F. Expenses

2. What are students' personal budgeting habits in terms of:

 A. Transportation

B. Food

C. Luxury and Wants

D. Projects and other School expense

E. Savings

3. Given the research findings, what budgeting plan would be the most effective to be

utilized by the students?

Statement of Hypotheses

The following are the assumed hypotheses of the study:

Hypothesis 1:

H0: Self-control problems have no significance on budgeting in terms of expenditures

H1: Self-control problems have a significant influence on budgeting in terms of

expenditures.

Hypothesis 2:

H0:

H1:
Theoretical/Conceptual Framework

Maslow’s Hierarchy of Needs

Maslow's hierarchy of needs is an Abraham Maslow theory that proposes that people are

motivated by five basic types of needs: physiological, safety, love, esteem, and self-actualization.

It is a psychological concept proposed by Abraham Maslow in his 1943 paper "A Theory of

Human Motivation" in the journal Psychological Review.According to this theory, higher needs

in the hierarchy emerge when people believe they have adequately satisfied the previous need.

Simone Galperti’s Theory of Personal Budgeting

Prominent research argues that consumers often use personal budgets to manage

self-control problems. It explains the subtle mechanism that makes budgets useful commitments,

how they interact with minimum-savings rules (another widely studied type of commitment), and

how budgeting is affected by the severity of self-control problems. Several empirical findings on

personal budgeting corroborate this theory.

A Theory of Budgetary Process

The theory of budgetary process (Davis & Wildavsky, 1998) provides important insights

into budgeting. It is due to the incredible complexity of the calculations involved. However, in

most policy areas, there is little or no theory that would allow practitioners to predict the

consequences of alternative moves and the likelihood of their occurrence. There is no universal

way of comparing and evaluating the merits of different ways people factor in their preferences

when it comes to their wants and needs outside of the theoretical process. Furthermore, it focuses

on the cost of living that students must adjust to.

 Figure 1.1 Research Paradigm

Significance of the Study

Budgeting is the process of creating a plan to spend your money (Merriam-Webster

Dictionary). However, with some expenses that are not fixed, it will give a hard time for a person

to project a fixed weekly budget. But because of this study, it would greatly help the community

through the following benefits:

1. Students - Through this study, students would learn how to properly budget their

weekly allowance as well as the value of saving money.

 2. Parents - This research will provide them with ideas for their children and allow

them to monitor how their children spend their allowances in the multiple

variables provided.

3. Future Researchers - Future researchers wanting to conduct out any associated

study focused on "Proper Budgeting" will benefit from this study and may use it

as a reference.

Scope and Delimitations

This research study is limited and conducted only at Holy Rosary School of Pardo, on

observing and giving out survey questionnaires. The respondents of this study will be the Junior

and Senior High School students of the said institution. The researcher have planned to give out

survey questionnaires to approximately one hundred twenty (120) to one hundred fifty (150)

High School students from Holy Rosary School of Pardo. The information gathered would be

enough to cover the data needed to get the precise statistical information needed in order to

answer the research questions.

Definition of Terms

1) Allowance - a regular amount commonly alloted by parents for their students daily needs

2) Budget - the itemization of expenses out of a given amount

3) Budgeting - is the process of creating a plan to spend the money.

4) Expenditure - the itemization of goods and services that would require the use of money

5) Expenses - the money spent on something.

6) Finances - financial activities that support the lives of individuals, businesses, and

governments

7) Income - the money earned normally for a work rendered or as the fruits as a result of

business activity

8) Luxury - expensive and beautiful things

9) Necessities - something necessary or indispensable

10) Planning - the process of making plans for something.

11) Privilege - a special right, advantage, or immunity granted or available only to a

particular person or group.

12) Savings - the portion of income or allowance not spent on current expenditures.

13) Transportation - the movement of goods and persons from place to place

14) Wants - have a desire to possess or do (something); wish for.

 Chapter 2

Review of Related Literature

This chapter includes related literature and studies obtained through published books,

articles, and online journals related proper budgeting.

Needs and Wants

According to a web article, the needs and wants are two distinct things, because needs are

the necessities of a human person in order to survive and live a healthy life while the wants are

something that person is craving for, that does not challenge a person's survival if not satisfied.

(Bezuidenhoudt, et al., 2017)

Needs are also distinguished according to their importance. In a hierarchy, an

arrangement that ranks people or concepts from lowest to highest, the needs are arranged where

people should meet the needs at the lower levels of the pyramid before they can successfully be

motivated to tackle the next levels. The lowest four levels represent deficiency needs while the

upper three represent the growth needs. (Maslow, 1943) To complement Maslow's theory of

satisfaction, another paper theorizes that hygiene and motivational factors are essential to keep a

reasonable level of satisfaction, but do not actually result in satisfaction but causes dissatisfaction

in their absence. (Herzberg, 1973)

In an article, it is true that people want to meet their basic needs which are food, roof and

shelter but the basic needs are not enough to boost growth because these needs are limited and

once satisfied the process would be satisfied or stagnate. People do not conform to the simple

satisfaction of basic needs but also want to satisfy the social needs. (Currie, 1975)
Simone Galperti’s Theory of Personal Budgeting

Prominent research argues that consumers often use personal budgets to manage

self-control problems. It explains the subtle mechanism that makes budgets useful commitments,

how they interact with minimum-savings rules (another widely studied type of commitment), and

how budgeting is affected by the severity of self-control problems. Several empirical findings on

personal budgeting corroborate this theory. (Simone Galperti, 2020)

Budgeting

Budgeting is the process of estimating the costs and resources for a planned course of

action over a given time period. Budgets for business units, departments, products, teams, or the

entire organization can be created. A budget is also known as a financial plan, but budgets can

also refer to non-cash resources such as staff or time (C. Carlos, et al., 2019).

A budget is a detailed plan that defines or outlines the company's sourcing and use of

financial and other resources over a specific time period. This is the plan expressed

quantitatively. Every organization or individual must budget their limited resources in order to

make the best use of them (time, money and energy). Owners of successful small businesses that

survived and grew even during difficult economic times carefully planned or budgeted their

inventory, purchases, facility expansion, and even financial transactions so that they did not

overextend themselves while still meeting the needs of their customers. Creating a budget is a

critical step in planning any economic activity, whether for profit or not-for-profit entities

(Payongayong, 2006).

According to an article by mygreatlakes.org, 2021, Budgeting is important for your

financial stability, ensuring you can pay common expenses like rent, tuition, student loans, credit
card bills, and entertainment. It's a proactive approach to organizing your finances. Budgeting

ensures you're not spending more than you're making, allowing you to plan for short- and

long-term expenses. It's an easy, helpful way for people with all types of income and expenses to

keep their finances in order. You simply want to be able to track your income left over after all

expenses to ensure you're not falling into debt.

 Chapter 3

Research Methodology

The discussion of the research design, sampling techniques, data instrumentation, and

administration of the instrument and method of data analysis will be tackled in this chapter.

Research Design

The researcher chose the Descriptive Research Design because he believes that through

this design, he would be able to determine how highschool students of Holy Rosary School of

Pardo manage their weekly allowances.

Descriptive research “paints a picture” with words or numbers (Neuman 2007, 364).

Descriptive Research Design puts emphasis on collecting, organizing, and presenting the target

population through one or more variables. It may also use secondary data gathering approaches

such as the use of databases or secondary sources such as datasets produced in other studies (A.

Torneo and H. Torneo, 2018).

The researcher will investigate how Holy Rosary School of Pardo high school students

manage their weekly allowances. The researcher would be able to achieve the project's goals in

this way.

Sampling

Sampling is a procedure wherein the researcher selects a group of people to collect data

for his/her research (Wikipedia). It is a technique of selecting individual members or a subset of

the population to make statistical inferences from them and estimate the characteristics of the

whole population. Every study should use a specific type of sampling since it helps determine
how the results of the statistical analysis can be interpreted and how broadly the results may be

generalized. (as cited in A. Torneo and H. Torneo, 2018).

The researcher chose to use stratified random sampling technique, wherein a computation

of sampling fraction is done - the desired size of the sample is divided by the population size

(n/N.).

No. Grade Level and Population Sample

Section

1 7 - Justice 12

2 7 - Charity 12

3 8 - Courage 12

4 8- 12

5 9- 12

6 9- 12

7 10 - Piety 12

8 10 - Wisdom 12

9 11 - Purity 26 12

10 12 - Compassion 48 12

Total 120
Table 3.1 Table of Samples

Research Instrumentation

The researcher utilized a self-administered survey questionnaire as the main instrument

for this study. The mentioned survey questions are aimed to obtain useful information concerning

their knowledge and awareness about budgeting. The said questionnaire also inquired

information relating to their background such as:

 The survey questionnaire will have sections:

Questionnaire Validation

The validation of the questionnaire was then performed. This is the process of examining

the survey to ascertain whether the results reflect what the survey was intended to measure

(Verial, 2019).

Three (3) research consultants were shown the questionnaire during the validation

procedure. To check the contents in relation to the research questions and hypotheses specified in

Chapter 1 of the study, it was initially sent to a teacher who teaches statistics and probability.

Then, for a second and third view, it was shown to a teacher with expertise in accounting and an

accounting student.

Following that, a pilot testing was carried out to assess the survey's duration and identify

any potential complications for both the researcher and respondents (A. Torneo and H. Torneo,

2018). The researcher came to the conclusion that it would take 8 to 15 minutes to complete the

survey questionnaire once the questionnaire had first been evaluated. The researcher kept in

mind of the following criteria:

1) The reaction of the respondents

2) The clearness of items and questions

3) The possible addition of other items to specific questions

There were no problems encountered during the pilot-testing process. The researcher then

requested that the research adviser evaluate the aforementioned questionnaire. The

self-administered survey contained spelling and grammatical problems, but none that would have

made it impossible for the respondents to respond, making it valid for study participants to
complete it. The research adviser gave the signal to begin the reprinting of the questionnaires and

to begin its distributions to the respondents as soon as the school head would give her approval.

The researcher decided to optimistically assist the participants by including a contact number and

email address on the survey questionnaire in case complications from the respondents arose.

Method of Data Collection

In gathering primary data, the researcher used survey questionnaires to gather data from

one hundred twenty (120) High School students from Holy Rosary School of Pardo. Survey

questionnaires come in varying physical forms. It is the most common tool used to obtain

relevant data from my respondents. Using this instrument has given the researcher the advantage

of efficient data collection, as it's less time consuming than conducting interviews and

observations. Relevant, as well as personal, information that has been added on the survey

questionnaire is preserved and kept confidential.

Information gathered is used to realize the statement of the problem mentioned in

Chapter 1.

In gathering the secondary data, the researchers looked into journal articles, literature

researches through the internet and other studies that are relevant to this paper. Sources used are

cited to give credit to the authors and researchers of the said sources.

Method of Data Analysis

The main method of data analysis used in descriptive research design is descriptive

statistics (A. Torneo and H. Torneo, 2018). The researcher would be using the aid of descriptive

statistics in presenting the data gathered from the survey questionnaires because this type of
statistics summarizes and describes the characteristics and the relationship among variables of a

sample and helps present quantitative data in manageable, easily understandable forms (as cited

in A. Torneo and H. Torneo, 2018). Data gathered from these sections would be presented

through the use of frequency tables, pie charts and bar graphs.