La Marea Academy

Financial
Management of
SHS Students in
Relation to
Fluctuating
Inflation
Submitted by HUMSS & ABM
CHAPTER 1 Page 2

Introduction
Many people are facing hard financial struggles which could
greatly effect one’s mental health
Inflation can reduce the value of your savings overtime,
because prices typically go up in the future. This is most
noticeable with cash. In other words, the buying power of an
individual dollar decreases when the price of everything has
increased. When you keep your money in the bank, you may
earn interest, which balances out some of the effects of
inflation. When inflation is high, banks typically pay higher
interest rates. But once again, your savings may not grow fast
enough to completely offset the inflation loss. In addition to
the sometimes unpredictable nature of inflation, it can cause a
sudden shift of plan in one’s financial management.
Page 3

Objectives
The First Objective

To present how important

financial management is to The Second Objective
SHS students

To determine how fluctuating

inflation affect daily expense
and therefore affect financial
management of SHS students
 STATEMENT OF THE PROBLEM Page 4

The ranges of:

a. Allowance
(Weekly/Monthly)
Demographic profile of b. Average expenditure
What is the level of
respondents in terms of: c. Savings (Weekly)
financial literacy of the
a. Age
students in the following
b. Sex
areas:
c. Grade
a. Spending Habits
Level/Educational
b. Saving Habits
Attainment

How does inflation impact

SHS students?

 Conceptual Framework/Theoretical Page 5

Framework

INPUT
PROCESS OUTPUT
To determine the financial literacy

of SHS students based on spending Distribution of survey Summarizing the facts and
habits and saving habits. And questionnaires and analysis of information from the surveys and
determine whether there is any gathered data regarding the subject presenting a conclusion and
correlation between saving habits, in hand recommendations
spending habits, and inflation
 Page 5

Significance of
STUDENTS. The results help SHS students have a clear understanding of
the importance of financial management and how inflation effect
different variables in the student’s surroundings.

TEACHERS. It would be best for teachers to know how daily budget and
the study

expenses affect a student. The teachers could not only support students
academically but also support them financially by giving performance
tasks which costs less.

PARENTS. It will also be very useful for the parents in terms of

financial management. They will be aware of where consumption of
funds goes and how the erratic behavior of fluctuating inflation greatly
effect consumption.
 Scop
e &

The study will focus on

the financial
management of SHS Lim
itatio
students of La Marea
Academy (S.Y. 2022 -
2023) in relation to
ns
inflation. The
researchers will get
respondents from
grades 11 and 12.
 Definition of Terms: Page 7

financial behaviour is defined as the management of a person’s savings,

Financial Behavior - expenditure, and budget (Perry and Morris). Or human activities related to
money management such as cash, savings, and credit (Xiao)

Financial is the status of having enough income or wealth sufficient to pay one's living
Independence - expenses for the rest of one's life without having to be employed or
dependent on others.
Financial is an act of managing one’s finances
Management -
Conceptually, by Will Kenton (2018) financial literacy is the educationand
Financial Literacy - understanding of various financial areas including topics related to
managing personal finance,money and investing.
Definition of Terms: Page 8

the process of taking a comprehensive look at your financial situation and

Financial
building a specific financial plan to reach your goals; or budgeting budget is a
Planning/
spending plan based on income and expenses.
Budgeting -
In a market economy, prices for goods and services can always change. Some
Inflation - prices rise; some prices fall. Inflation occurs when there is a broad increase
in the prices of goods and services, not just of individual items (ecb.europa)

Saving Habits - frequently practiced behaviors, done without a particular sense of

awareness, with the goal of freeing up funds for saving or debt reduction

Spending plan - is a method for distributing your income, or in this case you savings, among
the mix of things you want and need.
Definition of Terms: Page 8

the repeated and sometimes involuntary routines and practices you have
Spending Habits - around using money to purchase experiences, services, and things
CHAPTER 2 Page 9

Literary Review
The importance of money for students is that it
can help them learn how to be responsible with
their finances. When they are young and just
starting, they must learn how to budget and save
their money. The importance of money
management for students will also help them in
the future when they are adults and need to
support themselves. Money management can also
help students stay out of debt. If they are careful
with their spending, they can avoid financial
trouble.

Financial Literacy
Page 10

Students tend to not know what to value first, and

they tend to spend it on things that are not important.
Therefore, it would become inevitable for people to
overspend when they buy things because they do not
know what to prioritize the significant ones
(Paine, 2012). This is when financial planning comes
in. Financial planning is useful for both short range
and long range plans
Financial planning serves as a basis of operations or
the allocation of funds the person has to undergo.
Page 11
Factors in Financial
Inflation
Management
can reduce the value of your
Financial Behavior
savings overtime, because
prices typically go up in the
future. This is most noticeable Spending habits and
of individuals is essential but Saving Habits
with cash.
difficult to understand,
define, and measure. This researched explained that
spending habits has never been
stable, meaning spending
habits of students today are
significantly different from the
spending habits of students in
the past.
CHAPTER 3 Page 12

Research Design
The goals of this research is to determine SHS
student’s financial literacy and whether inflation
directly or indirectly affect SHS student’s financial
management.

The researchers are going to be using quantitative

survey questions. Descriptive-analytical design to
determine the financial literacy of SHS students
based on spending habits and saving habits. And
quantitative survey questions to determine the
whether inflation affects the financial management
of SHS students.
 Page 13

Respondents of the Study Research Instruments

The population of this study are

A survey questionnaire made
SHS students of La Marea
based on professional literature
Academy. The researchers would
and previous observations sighted
be using Simple Random
online by the researchers.
Sampling to select respondents
within the population.
 Data Gathering Procedure
Likert-scale
Likert Scale Likert  Scale interval
Description

In order to conclude whether it is sufficient Strongly

1 1.00 - 1.80
enough during fluctuating inflation, a Disagree
questionnaire was used to pinpoint the level
financial literacy of SHS students of La Disagree 2 1.81 - 2.60
Marea Academy The questionnaire will only
Neither/Undec
consist close-ended questions 3 2.61 - 3.40
ided

Agree 4 3.41 - 4.20

Strongly Agree 5 4.21 - 5.00

Page 15

Distribution
The researchers would be conducting the
distribution and retrieval of questionnaires
at the comfort of their homes. However, if
possible, distribution and retrieval of
physical questionnaires during onsite
classes in the campus of La Marea
Academy.
Statistical Treatment Page 16

The statistical tool to be used by the

researchers is Pearson’s Correlation
Coefficient to determine correlation of
financial literacy of SHS students based on
spending habits and saving habits, and
questions regarding inflation. The means
were interpreted as follows: Strongly
disagree in the point range of 1.00 - 1.80,
Disagree 1.81 - 2.60, Neither/Undecided
2.61 - 3.40, Agree 3.41 - 4.20, and Strongly
Agree 4.21 - 5.00.

Page 17
Chapter 4

Age of 16
28%

respondents 18+
36%

Table 1
Table 1 shows the response of our
study based on their age. It was
observed that the proportion of 36%
respondents were either 17 or 18
above, while 28% of respondents
were 16.

17
36%
Page 18

sex of
respondents
female
44%
Table 2
Table 2 shows the response of our male
study based on their sex. It was 56%

observed that the high proportion

of 56% respondents were Male,
while 44% of respondents were
Female.
Page 19

Grade Level of
respondents
11
44%
Table 3
Table 3 shows the response of our 12
56%
study based on their grade Level. It
was observed that the high
proportion of 56% respondents
were Grade 12 students, while 44%
of respondents were Grade 11.
Page 20

Weekly 1000-2000
200-500
12%

allowance of 20%

respondents
Table 4
Table 4 shows the response of our study
based on their weekly allowance. It was
observed that the high proportion of 68%
respondents has an allowance of ₱500 ~
₱1000, 20% of respondents had ₱1000 ~
₱2000, 12% of respondents had ₱250 ~ ₱500 ,
while the lowest with 0% of respondents had
no responses.
500-1000
68%
 other
4%
Page 21
1000-2000 250-500

Weekly 16% 24%

expenditure of
respondents
Table 5
Table 5 shows the response of our study
based on their weekly expenditure. It was
observed that the high proportion of 56%
respondents has an expenditure of ₱500 ~
₱1000, 24% of respondents also had ₱250 ~
₱500, 16% of respondents had ₱1000 ~ ₱2000,
while the lowest with 4% of respondents had
spent more than ₱2000. 500-1000
56%
Page 22

Weekly Savings
of respondents
other
32%

250-500
Table 6 44%
Table 6 shows the response of our study
based on their weekly savings. It was
observed that the high proportion of 44%
respondents has an savings of ₱250 ~ ₱500,
32% of respondents had either no weekly
1000-2000
saving or above ₱2000, 16% of respondents 8%
had ₱500 ~ ₱1000, while the lowest with 8%
of respondents had ₱1000 ~ ₱2000 500-1000
16%
 Table 7
Items Mean Interpretation

Inflation is bad 4.16 agree

Inflation affects how I spend 3.84 agree

Inflation affects how I save 3.36 average

Inflation affects my daily life 3.2 agree

I know when inflation hits 3.4 average

Agree inflation

3.52
affects students
 Table 8
Item Mean Interpretation

I tend to buy things on impulse 2.96 average

The money I spend is greater when I have just received

2.96 average
my allowance or any cash source.

I spend more on my wants compared to my needs 3.16 average

I wait for sales before I buy my wants 3.76 agree

I spend more on branded items compared to non-branded

3 average
ones.

Average Spending

3.168
habits
 Table 9
Item Mean Interpretation

I am able to allocate my budget to match with my spending 3.12 average

I see to it that I would always have weekly or monthly

3.16 average
savings

I am able to determine what should be prioritized before

3.56 agree
and during buying an item/s

I do written or Electronic budget planning/preparation. 2.96 average

I use my personal money (Savings) for my wants and needs 3.32 average

average savings

3.216
habits
 Descriptive statistics

mean std. deviation n

Spending Habits 3.1680 .34106 5

Saving Habits 3.2160 .23933 5

Inflation 3.5200 .46648 5

 Spending Saving

Inflation
Habiots Habits

Correlations
Pearson Correlation 1 -.502 -.483

Spending Habits Sig. (2-tailed)   .389 .410

N 5 5 5

Pearson Correlation -.502 1 -.201

Saving Habitsts Sig. (2-tailed) .389   .746

N 5 5 5

Pearson Correlation -.483 -.201 1

Saving Habits Sig. (2-tailed) .410 .746  

N 5 5 5
 Significant relationship between spending habits, saving
habits, and inflation.

r value P value Remarks Decision

Moderate
Spending Saving Accept Null
-.502 .389 Negative
Habits Habits Hypothesis
Correlation

Very low
Saving Accept Null
Inflation -.201 .746 negative
Habits Hypothesis
correlation

Spending Low Negative Accept Null

Inflation -.483 .410
Habits Correlation Hypothesis
 summary findings
It was observed that the proportion of 36% respondents were either 17 or 18 above,
while 28% of respondents were 16.
It was observed that the high proportion of 56% respondents were Male, while 44% of
respondents were Female.
It was observed that the high proportion of 56% respondents were Grade 12 students,
while 44% of respondents were Grade 11.
It was observed that the high proportion of 68% respondents has an allowance of ₱500 ~
₱1000, 20% of respondents had ₱1000 ~ ₱2000, 12% of respondents had ₱250 ~ ₱500 ,
while the lowest with 0% of respondents had no responses.
It was observed that the high proportion of 56% respondents has an expenditure of ₱500
~ ₱1000, 24% of respondents also had ₱250 ~ ₱500, 16% of respondents had ₱1000 ~
₱2000, while the lowest with 4% of respondents had spent more than ₱2000.
 summary findings
It was observed that the high proportion of 44% respondents has an savings of ₱250 ~
₱500, 32% of respondents had either no weekly saving or above ₱2000, 16% of
respondents had ₱500 ~ ₱1000, while the lowest with 8% of respondents had ₱1000 ~
₱2000
Table 7 potrays an overall mean of 3.52 which results in the interpretation that the
respondents have agreed that inflation affects students
It was observed that the overall mean of 3.1 which results in the interpretation that the
respondents have average spending habits.
It was observed that the overall mean of 3.216 which results in the interpretation that
the renpondents have average saving habits.
It was observed that there is no significant correlation between the three variables:
Spending habits, saving habits, and Inflation.
 Conclusion
The paper is able to conclude that senior
high school students have average spending
and saving habits. While it is reassuring that
the youth understands how to restrain
themselves in their money use, average is
inadequate. It is better for students to
expand upon their financial literacy in order
to prepare for the future. Becoming an adult
would equip students with new set of
responsibilities, one of which is financial
management. Therefore, it would be
preferable to begin financial practices now
rather than later.
The survey also concluded that the majority of the
respondents believe that inflation affects senior high
Conclusion
school students. As such, inflation is one of the
challenges an individual face when it comes to
finance. Usually unexpected, it ruins one’s financial
plan because of its sudden nature. Usually,
individuals are distressed because of expensive
purchases caused by inflation. Together with
problems with financial situation, life becomes
harder. That is not the case when equipped with
financial knowledge. It becomes easier to address
such problems; Knowledge is key to success like
many say.
Recommendations
Due to the high rate of inflation in
the Philippines right now, it is
crucial for students to manage
their spending and savings
effectively; overall, financial
management is a life skill that is
required to prepare for the future.
Therefore, the senior high school
students need motivation and a
cause to save money and make
wiser financial decisions before
they leave for college.
Students who understand how
money functions in their daily
lives will understand its value and
be less likely to waste it.
The local government could urge
the senior high schools in the
area to encourage their students
to attend a seminar on money-
saving tips.The opportunity for
pupils to learn about the world of
money is readily available and
free.
Recommendations
A successful person's testimony outlining the fundamentals of saving
and spending money, as well as outlining their experiences so long as
the students understand the worth of money. It is crucial to
understand about financial knowledge, financial literacy, spending
patterns, and saving patterns. Even though inflation is unstable and
continuously changing, senior high school pupils are less affected by
it when this understanding is taken into account. A small obstacle
won't deter the pupils because they are able to control their
requirements, wants, and spending habits. Instead, they respond,
consider, and prepare.
 ⦁ Ariffin, M., & Sulong, Z. (2017). Students’ Perception Towards Financial
⦁ Duquette, D. (2018). Why It's Important to Teach Your Students Financial Literacy
and ThreeWays to Do It. Why It's Important to Teach Your Students Financial

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