Savings Behavior of Agri-preneur in Gainza Camarines Sur

Geraline O. Dimaiwat

An Undergraduate Thesis Proposal Presented to The Faculty of

The Department of Agricultural Economics, College of Agriculture
and Natural Resources, Central Bicol State University of Agriculture,
San Jose Pili, Camarines Sur in Partial Fulfillment of
The Requirements for The Degree In

Bachelor of Science in Agriculture

(Agricultural Economics)

2023
 CHAPTER 1

INTRODUCTION

The way people set money aside for future use is referred to as their

saving behavior (Mohamad Fazli & MacDonald, 2010). Less financial stress and

a higher standard of living are attributes of people who can save more. The

majority of individuals have a higher chance of surviving in the future if they have

developed a savings habit during the hard and complacent times.

Saving is an important financial action also a key driver of economic

development and prosperity in developing nations like Malaysia. Savings support

investment, which leads greater economic expansion in a nation. According to a

recent finding by Dasmin and Fauzi (2016), the saving rate is the most widely

used indicator of economic growth. A related study on Malaysians' savings

behavior by Ying (2016) revealed that low and seasonal income earners have a

tendency to live beyond their means, which emphasizes the significance of

saving.

Savings are the portion of money left over after paying for current

consumption. No one can predict what will happen in the future. Therefore, it is

necessary to set aside some cash for unplanned expenses. Without saving, it

could lead to serious financial problems when unexpected situation happens.

The amount of education affects the attitude toward saving money. This is due to

the fact that education and experience have provided significant knowledge

about the need to conserve money for the future.

STATEMENT OF THE PROBLEM

This study aims to determine the Savings Behavior of Agripreneurs in

Gainza, Camarines Sur.

Specifically, it aims to answer the following questions:

1. What is the socio-economic profile of the respondents?

2. What are the income, consumption and expenditure of the respondents that

affect their savings behavior?

3. What are the savings scheme used by the respondents?

4. What are the challenges, and problems encountered by the respondents and

their coping mechanism?

OBJECTIVES OF THE STUDY

Generally, the objective of the study is to determine the Savings Behavior

of Agri-preneur in Gainza, Camarines Sur.

Specifically, it aims:

1. To describe socio-economic profile of the respondents

2. Determine the income, consumption and expenditure of the respondents that

affect their savings behavior

3. Identify the savings scheme used by the respondents

4. To determine the challenges, and problems encountered by the respondents

and their coping mechanism.

SIGNIFICANCE OF THE STUDY

The findings of the study will provide comprehensive information about the

importance of saving behavior of agri-preneurs in the municipality of Gainza.

This study will be a great help to the future researchers who intend to conduct

studies related to savings.

SCOPE AND LIMITATION OF THE STUDY

This study will focus only on the Savings Behavior of Agripreneur in 8

barangays of Municipality of Gainza, Camarines Sur. Namely Sampaloc (60),

Dahilig (30), Malbong (23) Loob (39), Namuat (15), Cagbunga (83), Poblacion II

(36), and Poblacion I (41) a total of 327 respondents.

CONCEPTUAL FRAMEWORK

The conceptual framework of the study is about the Savings Behavior of

Agripreneurs in Gainza Camarines Sur. Under socio demographic profile are the

following such as age, gender, civil status, household members, educational

attainment, occupation. The independent variables are the income, expenditures

and consumption while the dependent variable the saving scheme of the

agripreneurs, also illustrates the problems encountered and the coping

mechanisms of the respondents.

 Savings Behavior of Agripreneur
in Gainza

Socio Demographic
Profile
Age
Gender
Civil status
Household members
Educational Attainment
Occupation
other source of income

income, expenditure and

Savings scheme
consumption

Problems Coping
encountered mechanism
DEFINITION OF TERMS

Savings – are the funds that remain after spending and other commitments have

been subtracted from earnings.

Behavior – is the way someone behaves. It is what a person does to cause

something to occur, change, or remain the same.

Agripreneur – is a business owner whose primary focus is agricultural or

agriculture-related activities.

Income - is the amount of money that is received in exchange for the service or

products of agri-preneurs

Consumption – is buying goods and services to satisfy current needs and wants

Expenditure – is the amount of money being spent of a person

Educational Attainment – refers to the highest educational level that the

respondents has completed.

REVIEW OF RELATED LITERATURE

According to the study of (Pownall, R. A. 2016 et al). Globally, increased

personal responsibility for financial decision-making is being recommended.

Individuals and families are urged to get more involved in their personal finances.

In this research, they look at the behavioral determinants that induce households

to save and prepare for the future using a sample of 1253 Dutch homes.

According to the research, an individual's proclivity to save declines with age and

is higher among the financially savvy. Furthermore, they discover that saving

behavior differs between generations and is disproportionately prevalent among

baby boomers. When we account for additional individual differences, the

generation impact weakens. Their findings provide proof of parental influence as

well as the influence of the psychological and behavioral measures of self-

efficacy, locus of control, future orientation, and math competency. Knowing

these personality traits well can help explain why some people accept financial

responsibility while others do not.

According to Widjaja, I. et al. (2020). Prove that financial literacy affects

saving behavior, both directly and indirectly through the variables of saving

intention and attitude to saving mediation. Other findings prove that subjective

norms do not directly affect thrifty behavior, but had indirect effects through

attitudes toward thrifty variables. This study offers alternative models of

researchers associated with frugal behavior with theories of planned behavior

theory with predictors of financial literacy and subjective norms to improve frugal

behavior proving that saving intentions and attitudes towards saving can mediate

financial literacy. Furthermore, a mediator's attitude towards savings can improve

the subjective norm relationship with saving behavior. Thus, the planned

behavior theory can explain the relationship between financial literacy and

subjective norms by storing behavior.

 Chapter 2

METHODOLOGY

This chapter presents the research methods and procedures that will be

used in the conduct of the study. This includes the Research Design, Research

Method, Data Gathering, and Statistical Treatment of Data.

RESEARCH DESIGN

A descriptive research design will be used to analyze the savings behavior

of agriprenuers in Gainza, Camarines Sur. A pre-tested survey questionnaire will

be used to identify the respondents' demographic profile, source of capital,

consumption, expenditure, and the coping mechanism of the respondents.

RESEARCH METHOD

The list of agri-preneurs were obtained from the (MAO) Municipal

Agriculturist Office of Gainza. The study area were identified by the Bangko

Central, ng Pilipinas as one of the unbanked municipality of Camarines Sur.

Slovin formula will be used to determine the sample size at 10% margin of error.

n = N/1+N(e)2

Where:

n = sample size
 N = total population

e = margin of error

A total sample size of 95 agri-preneurs, were obtained out of 1,787 total

populations. The number of sample per barangay were determined by ratio and

proportion. A simple random sampling method were employed wherein each

individual is chosen entirely by chance and have an equal probability of being

selected. The study is limited only on the agri-preneurs identified by the

Municipal Agriculturist Office of Gainza, Camarines Sur.

DATA GATHERING PROCEDURE

This study will utilize primary and secondary data to generate information.

The primary data needed in the study will be gathered through personal interview

with the respondents. Secondary data and information will be obtained from the

records in the unpublished researches in CBSUA Library, internet, and other

related studies to supplement the primary data.

STATISTICAL TREATMENT OF DATA

The descriptive and qualitative method of data analysis will be used in the

study. The data will be presented through graphs and table with discussion and

explanation. Average, percentage and frequency will be used to analyze the

data.
 The following formula will be used to determine the Savings Behavior of

Agri-preneur in Gainza, Camarines Sur.

The computation of the percentage was obtained using the following formula:

Average = Total number of responses

_________________________
Total number of respondents

Percentage = Total number of responses

__________________________ x 100
Total number of sample size
REFERENCES:

Brounen, D., Koedijk, K. G., & Pownall, R. A. (2016). Household financial planning and savings
behavior. Journal of International Money and Finance, 69, 95-107.

Widjaja, I., Arifin, A & Setini, M. (2020). The effects of financial literacy and subjective norms on

saving behavior. Management Science Letters, 10(15), 3635-3642.