CHILDREN OF MARY IMMACULATE COLLEGE

#22 Maysan Road, Malinta, Valenzuela City

Managing my allowance: The Impact of inflation

to the students’ allowance as perceived by selected

Grade 11 in Children of Mary Immaculate College.

A Thesis Presented to

The Faculty of the Senior High School Department

Children of Mary Immaculate College

In Partial Fulfilment

Of the Requirement for Senior High School

Accountancy, Business, and Management

Submitted by:

Malazzab Jr, Juan, R.1 Bolesa, Charlene, M 2 Capadosa, Jonas Andrew, P. 3

Bartolome, Joanna, M.4 Tagapan, Keziah P.5 Siglos, Geiahona Jerlyn, T.6

Submitted to:

Mr. John Paul T. Mendoza

Research adviser

2023
 CHILDREN OF MARY IMMACULATE COLLEGE
#22 Maysan Road, Malinta, Valenzuela City

CERTIFICATE OF ORIGINALITY

I hereby certify that this thesis titled “Managing my allowance: The Impact of
inflation to the students’ allowance as perceived by selected Grade 11 in Children
of Mary Immaculate College.”, prepared and submitted by Malazzab Jr, Juan, R.
Bolesa, Charlene, M. Capadosa, Jonas Andrew, P. Bartolome, Joanna, M. Tagapan,
Keziah P. and Siglos, Geiahona Jerlyn, T. is my work and that, to the best of my
knowledge, it contains no material previously written or published by another person or
organization nor any material which has been accepted for award and any other degree
or diploma from a university or institution, except where due acknowledgment is made,
therefore.

Furthermore, I declare that the intellectual content of this thesis is the product of
my work although I received assistance from others on the manner of organization,
language, and style.

__________________

Researcher

Date: ________

Attested by:

PROF.JOHN PAUL T. MENDOZA

Adviser

Date: __________________
 CHILDREN OF MARY IMMACULATE COLLEGE
#22 Maysan Road, Malinta, Valenzuela City

Chapter 1

The problem and its background

Money management is an essential life skill that should be acquired by everyone, especially
students who are transitioning into adulthood. Students must learn how to manage their finances
effectively, including their allowance. Inflation is a significant economic factor that affects
everyone, including students. As prices of goods and services increase over time, students'
allowances may no longer be sufficient to cover their expenses.  Students are more vulnerable
and can be easily affected by changes in economic situations. Inflation can cause financial
difficulties for students, making it harder for them to pay for necessities like food and
educational expenses. Our study aims to provide an understanding of the difficulties that students
encounter while managing their allowance and how inflation influences their ability to fulfill
their financial requirements. Therefore, managing their allowance in the face of inflation
becomes a crucial aspect of their financial literacy. The Philippine Statistics Authority reported
that the country's headline inflation rate marginally slowed down to 8.6 percent in February 2023
from 8.7 percent in January 2023 as price increases of certain food commodities and energy
eased. Inflation is a complex economic phenomenon that affects every aspect of society,
including students. It has a significant impact on the cost of education and necessities. The
increase in prices of goods and services over time, also known as inflation, is a significant
economic factor that can reduce the value of money and have a consequential impact on how
individuals manage their finances. According to the Philippine Statistics Authority, the current
inflation rate in January 2023 is the highest yearly rate observed since November 2008. For
students who receive a fixed allowance, inflation can have a significant impact on their
purchasing power and overall financial well-being. Inflation has been worst over the past year,
with students and their parents experiencing higher prices for their basic needs that make it
difficult to afford those necessities. Students who live off-campus are particularly affected by the
rising cost of transportation and the rising cost of food. Many individuals have been affected by
inflationary growth, including students. This research aims to examine the effects of inflation on
the management of allowance by Grade 11 students at Children of Mary Immaculate College.
Specifically, the study will explore the perspectives of selected Grade 11 students on how
 CHILDREN OF MARY IMMACULATE COLLEGE
#22 Maysan Road, Malinta, Valenzuela City

inflation influences their allowance, the approaches they use to cope with inflation, and their
general attitudes toward financial management.

The responsibility of managing the inflation rate in the Philippines falls under the mandate of the
Bangko Sentral ng Pilipinas (BSP), which is the central bank of the country. The BSP is tasked
with maintaining price stability and promoting a balanced and sustainable growth of the
economy. The BSP collaborates with other government agencies and institutions to implement
policies that can address structural and supply-side issues that contribute to inflationary
pressures, such as food price spikes, transportation bottlenecks, and supply chain disruptions.
Inflation in the Philippines is a serious problem that has an impact on both the national economy
and Filipinos' daily lives. The Philippines has seen an increase in inflation over the past few
years, raising worries about how this may affect the nation's economic development and the
well-being of its population. As students advance in their academic careers, they grow more
independent and begin to manage their funds, including their allowance. But it is impossible to
overlook how inflation has affected the value of the money or allowance that students receive.
This study aims to empower students to become financially literate and resilient in the face of
economic challenges. As a student, managing an allowance can be a challenging task, especially
with the impact of inflation. The effects of inflation can be particularly severe for students who
rely on a fixed allowance to cover their expenses. This study aims to explore the impact of
inflation on the purchasing power of Grade 11 students' allowance at Children of Mary
Immaculate College. Specifically, the research seeks to understand the average monthly
allowance received by Grade 11 students and how it compares to the cost of living. It also aims
to examine the extent to which students adjust their spending habits in response to inflation and
the impact of the increase in the cost of basic necessities such as food and transportation on their
ability to manage their allowance effectively. In addition to economic factors, this research will
also examine the role of socioeconomic backgrounds in the students' ability to cope with
inflation and manage their allowance. It will investigate the main factors that contribute to the
inflation of prices in the local market and how they affect the students' allowance. Furthermore,
it will explore the extent to which the student’s parents provide financial support and how this
affects their allowance management.
 CHILDREN OF MARY IMMACULATE COLLEGE
#22 Maysan Road, Malinta, Valenzuela City

Background of the study

The goal of this study is to find out how selected grade 11 students at Children of Mary
Immaculate College in Valenzuela City feel regarding inflation and what adjustments they make
when the inflation rate rises. As the inflation rate begins to fall in February 2023, the National
Economic and Development Authority (NEDA) emphasizes the importance of recalibrating
government strategies to mitigate the impact of higher commodity prices. According to the
international monetary fund, In the past inflation has only occurred when, over an extended
period of time, the money supply has grown more quickly than the underlying supply of
commodities and services. Typically, this entails financial support that is generated separately.
The European inflation following the New World's discovery in the 1500s and 1600s, when gold
and silver were unexpectedly brought back to Europe in large quantities and minted, is a well-
known example. As of now, the government continues to implement prioritized and precise
actions aimed at reducing inflation and its consequences, such as addressing supply issues,
particularly in food products, providing targeted cash transfers and social protection programs to
society's most vulnerable sectors, and ensuring access to cheap and sustainable energy sources.
Our study proposes to prove that inflation is one of the issues confronting not only parents but
also students in terms of how they will manage their allowance and make some adjustments due
to high expenses. According to the quantity theory of money, the general price level of goods
and services is proportional to the money supply in an economy. In this study, we will provide
students with information and advice regarding how they can properly manage their allowance
and spend it more responsibly for their necessities. This focuses on the effects of inflation on the
purchasing power of students' allowances. Inflation is an increase in the general price level of
goods and services over time, resulting from a decrease in the value of money. Inflation affects
everyone, but it can be a more significant impact on individuals with fixed incomes or limited
financial resources, such as students. This study aims to determine the perception of Grade 11
students regarding the impact of inflation on their allowances. It also aims to explore the
strategies employed by students to cope with the effects of inflation on their allowances. This
study is relevant as it provides insights into the effects of inflation on the financial well-being of
students. The results of the study can serve as a basis for future research on the topic of inflation
and its impact on the financial capacity of Grade 11 students.
 CHILDREN OF MARY IMMACULATE COLLEGE
#22 Maysan Road, Malinta, Valenzuela City

Statement of the problem

This study aims to identify the difficulties of inflation to the allowance of grade 11 students of
Children of Mary Immaculate College.

Specifically, this seeks answers to the following questions:

1. What is the demographic profile of students in terms of 

1.1 Age
1.2 Section 
1.3 Strand
2. How inflation affects students?
3. Does managing their money help them to buy their basic needs?
4. How satisfied are the grade 11 students at Children of Mary Immaculate College with their
current allowance and their ability to manage it in the face of inflation?
5. How does inflation affect the purchasing power of the students' allowance?
6. What is the average monthly allowance received by Grade 11 students?
7. How do the students prioritize their spending, and what are the most common items they
spend their allowance on?

Scope and delimitation of the study

The study will be conducted at Children of Mary Immaculate College, a private school located in
Maysan, Valenzuela City, Metro Manila, Philippines. The research will be conducted within the
school premises and will involve only grade 11 students who are currently receiving an
allowance from their parents or guardians. The study does not include an in-depth analysis of the
economic factors that contribute to inflation or the impact of inflation on other aspects of
students' lives. The study also does not include students from other grade levels or other schools.