CHAPTER 1

THE PROBLEM AND ITS SETTING

A. Introduction

In today's fast-paced world, it is imperative for individuals to manage their

finances efficiently. Budgeting is a crucial aspect of financial management as it allows

individuals and organizations to plan and control their spending. With the advent of

technology, there has been a significant shift towards digital solutions for managing

finances, including budgeting. Web-based budgeting systems have become

increasingly popular, as they provide users with real-time access to their financial

information from anywhere and at any time. In this context, we present Budgie, a web-

based budgeting system designed to help individuals manage their finances effectively.

The lack of a budgeting system can present significant challenges for individuals,

organizations, and even governments. Without a budget, it can be challenging to

manage financial resources effectively and efficiently, leading to overspending, missed

opportunities, and financial instability. The absence of a proper budgeting system can

also lead to difficulties in monitoring and tracking expenses, making it difficult to make

informed financial decisions. In this context, implementing a budgeting system can

provide a much-needed framework for financial planning, tracking, and control. This

system can help individuals and organizations make better financial decisions, allocate

resources more effectively, and achieve their financial goals.

 According to a 2021 report from the Bangko Sentral ng Pilipinas (BSP), many

Filipinos struggle with budgeting their finances. The report found that only 28% of

Filipino adults have a budget and only 23% have a savings plan. Additionally, 47% of

adults reported having difficulty making ends meet, and 33% said they had no savings.

However, there have been efforts to address this issue. For example, in 2019, the BSP

launched the National Strategy for Financial Inclusion, which includes a focus on

promoting financial education and literacy. As part of this strategy, the BSP has

partnered with various government agencies and private organizations to provide

financial literacy programs and resources to Filipinos.

There are also initiatives to encourage the use of budgeting systems and tools.

For instance, the government has launched a mobile app called "Personal Finance" that

allows users to track their income and expenses and create a budget plan. While it is

too early to assess the impact of these initiatives fully, they demonstrate a commitment

to improving financial literacy and promoting the use of budgeting systems in the

Philippines. With continued efforts, it is hoped that more Filipinos will be able to manage

their finances effectively and improve their financial well-being.

Implementing a web-based budgeting system like Budgie can bring many

benefits to individuals and organizations. One of the most significant advantages is

accessibility. Budgie can be accessed anytime and anywhere if there is an internet

connection, making it more convenient for users to manage their finances. Another
advantage is that Budgie promotes efficiency, accuracy, and real-time tracking of

expenses, income, and financial goals. Its automated features help users save time and

reduce errors associated with manual budgeting processes. Furthermore, Budgie

provides valuable insights into spending patterns and identifies areas where users can

cut costs, save money, and achieve their financial goals. Overall, Budgie's web-based

budgeting system can help individuals and organizations better manage their finances,

make informed financial decisions, and improve their financial well-being.

B. Background of the Study

In today's world, where money is a vital resource, many people struggle with

managing their finances effectively. They may lack the necessary skills or knowledge to

keep track of their expenses, savings, and investments. As a result, they often find

themselves struggling to make ends meet or falling into debt.

Moreover, the COVID-19 pandemic has exacerbated financial struggles for many

people, making the need for effective financial management even more critical. With

more people facing financial uncertainty, tools like Budgie can provide a means for

individuals to take control of their finances and make informed decisions about their

money.

Therefore, the target audience for implementing Budgie is anyone who wishes to

have better control over their finances, whether they are just starting to manage their
finances or looking for a more efficient way to track their expenses and savings. By

implementing a web-based budgeting system, users can access their financial

information from anywhere, making it easier to monitor their financial situation and make

informed decisions.

C. Conceptual Framework

Input Process Output

● Email/Username ● Data Input ● Budgets

and Password ● Categorization ● Insights

(Google Account ● Analysis ● Reports

Integration) ● Budgeting ● Notifications

● User Data ● Reporting

● Historical Data

D. Statement of the Problem

1. How can individuals effectively track their income and expenses to make

informed financial decisions?

2. How can individuals reduce financial stress and avoid overspending?

3. How can individuals set and achieve financial goals, such as saving for a down

payment or paying off debt?

 4. How can individuals improve their financial literacy and make more informed

decisions about their finances?

5. How can individuals easily monitor and manage their finances, even if they have

little to no experience with financial management tools or budgeting systems?

E. Significance of the Study:

To young adults and students: Many young adults are just starting to learn how

to manage their finances, and Budgie could be a helpful tool for them as they establish

good habits. College students, in particular, may be dealing with limited funds and

multiple expenses, making budgeting especially important.

To families and households: Budgie could be useful for families who want to

keep track of their household expenses and make sure they are living within their

means. By sharing a budgeting tool like Budgie, family members could also work

together to identify areas where they can save money and prioritize their spending.

To adults and small business owners: As many adults struggle with managing

their finances and may not have the knowledge or skills to create and stick to a budget,

by using Budgie, they can develop better financial habits, reduce debt, increase

savings, set financial goals, and stay on track with their financial plans.

F. Scope and Delimitation

 The scope of this study is to evaluate the effectiveness of Budgie, a web-based

budgeting system, in improving financial literacy and managing personal finances

among 385 individuals from Quezon City from all ages. The study will focus on the use

of Budgie as a tool for budget tracking and planning and will assess its impact on

financial literacy, spending habits, and savings. The study will be conducted within a

specific time frame and will be limited to the population of 385 individuals from Quezon

City from all ages.

The study will use Webstorm in the development of Budgie. Webstorm is an IDE

that is best suited for the development of JavaScript applications. In terms of

programming languages and frameworks, Next.js is an open-source web development

framework created by the private company Vercel providing React-based web

applications with server-side rendering and static website generation, and JavaScript is

a widely used client-side scripting language. HTML is a markup language used for the

creation of web pages, while Tailwind CSS is a highly customizable CSS framework

used for building modern web interfaces.

The delimitations of this study include the limited sample size of 385 individuals

from Quezon City, which may not be representative of the larger population. The study

will also rely on self-reported data, which may be subject to bias and inaccuracies. The

study will not consider other factors that may affect personal finances, such as income,

employment status, or other financial obligations. Additionally, the study will not

compare the effectiveness of Budgie with other budgeting systems or tools.