CHAPTER I

INTRODUCTION
Background of the study
Management refers to the process of planning and organizing the

resources and activities of a business to achieve specific goals in the most

effective and efficient manner possible. Efficiency in management refers to the

completion of tasks correctly and at minimal cost .Budgeting management

refers to how you plan to spend your money and it is simply balancing your

expenses with your income.

In Malaysia, according to Jamal, Ramlan, Karim, and Osman (2015),

there were about 280,428 individuals reported to have enrolled in financial and

debt management program since the establishment of The Malaysian Credit

Counseling and Debt Management Agency (AKPK) in 2006. From all the

cases reported, “44 percent of the individuals involved in this financial

counseling program belonged to the 30-40 age groups” (p. 111). Literature

observes the student of PTPTN loan prefer to overspend their education loans

on luxury goods (e.g. Selvaratnam, Tan, Abu Bakar, Endut, & Fatimah, 2013;

Naradin, Ismail, Harun, &Khamis, 2018). University students like to spend

money mostly for the appearance of branded items and food in high-class

restaurants. Without proper money management plan, to keep this way of off-

campus-style living, many students have to do a part-time job for extra money.

In a long time, this affects students’ attention to the lessons in the class and

students’ enough time to revise and complete the assigned tasks. Hence,

this study suggests a study on financial management among university

students. The research focuses on management in spending PTPTN loan by

students of a Malaysian public university. The study is interesting since ninety

percent of the core subjects taking by these students are related to

accounting, finance, principle management and investment. The study,

therefore, provides insights as to whether: 1) financial literacy, 2) parental

socialization, 3) peer influence and 4) self-control are factors that affect money

management of students. The following section discusses the literature review

and hypothesis development. It then follows with a detailed discussion of the

process of data collection and construction of variables. Next, discussion and

analysis of the data are carried out. Finally, conclusion, limitation

In Davao Region, the low rates of the study accomplishments are the

central concern of the Department of Education (DepEd). The study of

Ramento (2011), states that the low educational attainments of the students in

the City of Davao were due to a low salary which leads the students to

combine working and studying. Thus, the students that have financial

problems are spending more time working than studying, and because of this,

they attained poor grade and poor performance in school.

Southern Mindanao Institute of Technology Inc. it is observe that the

working students are having difficulties on budgeting management and have

encountered challenges during work.

 In connection to that, the purpose of this study is to investigate the

challenges encountered by the working students of Southern Mindanao

Institute of Technology Inc. for the academic year 2023-2024.

Statement of the problem

This study aims to know the challenges encountered by the working

students in budgeting management at Southern Mindanao Institute of

Technology, this research seeks to answer the following questions;

1. What are the challenges encountered by the working students in

Southern Mindanao Institute of Technology Incorporated?

In terms of;

1.1 time management

1.2 managing their expenses

2. What are its effect on their budgeting management ?

3. Is there a significant relationship between the challenges encountered

by the working students to their budgeting management?

Theoretical framework

Alexandra and Edheku (2020 ) in theory of budgeting, stated that an

efficient budget plan can solve the problem with regard to the framing of a plan

which will be required to mitigate the potential risk that may occur in the future

and grabbing the opportunities that the organization can get, by creating an

effective system of control, and by identifying the differences between the aim

of the organization and its actual performance. Budget is regarded as the core

element that is essential to implement a control process and also considered

as the major decision- making tool for the management. The future financial

performance can be predicted by the budget which will help to assess the

financial viability of any decision taken by the management. In general, it has

been observed that most of the companies the process of budget is made on

the basis of preparing a formal annual; budget and the management used to

monitor the performance of the organization based on that annual budget. In

other words, it can be said that budgets are merely a process of gathering

plans and forecasts. From the budget it can be possible to get the idea about

the financial implications of the business plan, determining the amount, timing

and Quantity of resources required for the implementation of budgetary

process.
 Conceptual Framework

Independent Variable Dependent Variables

Budgeting Management Challenges of Working

→
Students

Figure 1. Conceptual Framework of the Study

Figure 1. Budgeting Management is the Independent Variable while the

Challenges of Working Students is the Dependent one. The aim of the study is

to explore the relationship between the budgeting management and

challenges of working students.

Hyphothesis
Null Hyphothesis: There is no significant relationship between

the budgeting management to the challenges of working students of Southern

Mindanao Institute of Technology Inc.

Alternative Hyphothesis: There is a significant relationship

between budgeting management to the challenges of working students of

Southern Mindanao Institute of Technology Inc.

Significance of the study

The findings of this study will be beneficial to the following;

To the School Administrators: School administrators will benefit from the

results of the study by applying the proposed action plan which will help

minimize drop-Outs among working students.

To the Teachers: This study will give teachers an idea on the problems

encountered by working students. Thus, they will understand them better.

To the Parents: This study will give the parents idea on the problems working

students have encountered. This will motivate them to become more

supportive and more understanding towards their children.

To the Working Students: This study will motivate them to manage their

responsibilities towards school and work so that their academic performance

will not be affected in favor of their work or vice-versa.

To the Future Researchers: The future researchers will benefit to this study

because this will serve as their source and guide for future studies.

Scope and Delimitation

This will be conducted to assess the budgeting management to the

challenges encountered by the working students of Southern Mindanao

Institute of Technology Inc. Working students will be use in this study. Only 30

working students will be use in this study.

Definition of Terms

To provide readers a better understanding of the frequently used terms in

the study, the following are defined operationally.

Budgeting- The process of creating a plan to spend and organize your

money.

Management- Process of planning and organising.

Challenges- refers to a situation needing great mental and physical effort in

order to be done successfully.

Budgeting Management- refers to the process of planning, organizing, and

controlling financial resources to achieve specific goals. It involves creating a

budget, which is a detailed financial plan that outlines anticipated income and

expenses over a defined period of time.

 CHAPTER II

REVIEW RELATED LITERATURE

The review of related studies is among the essential part in the chapter

when conducting a research. This mainly serves as a foundation for the

researcher proposed study it also serves as a guide in pursuing the research

well. It is essential for the researcher when conducting research as it provide a

framework more valid information that support and carry importance of the

research study.

Budgeting management

According to Kelly Fiorini (2023) budgeting management sometimes called

budgetary management, is the overseeing of revenue and expenditure

tracking in an organization. Managing a budget involves analyzing current

spending, organizing purchases by category, and monitoring cash flow over

time. A medium-to-large business typically has separate budgets for the

company and for individual departments. Department heads and budget

managers use keen analytical skills and a careful eye for detail to make sure

the department maintains positive cash flow and reasonable spending. With

proper budget management, an organization can boost profitability and

growth. Budget management and forecasting software helps companies

organize data and plan for future decisions.Being able to manage a budget is
a useful skill for professionals in almost any industry, especially for people who

are in a supervisory role or have inventory control or purchasing duties.

Creating and monitoring a budget allows you to facilitate the growth of a

business and promote its financial stability by accurately managing monetary

resources. There are several skills you can use when creating, monitoring and

managing a budget for a business.

Phenomenon of working student

Darolia (2014) found that working students in higher education is a

common phenomenon everywhere. Most research on working students

focus on the examination of the effect of students’ employment on

academic outcomes such as grade point average and commitment to studies

(Peterson, 2016; Scott-Clayton, 2011; Thibodeaux et al., 2017). However,

even though the number of working students is growing to a greater extent,

this is not a new phenomenon. Over 30 years ago, working while

studying was considered as a good preparation in one’s later career

(Steinberg et al., 1981; Schill, McCartin& Meyer, 1985). In recent years,

working whilst studying is considered necessary to develop the skills of

teamwork, communication, and costumer care (Lucas &Lammont, 1998;

Curtis & Lucas, 2001). According to Watts and Pickering (2000), working while

studying has many positive outcomes to persist in the modern higher

education realm. In addition to the above studies, some researchers also

focus on the time use by working students. As a consequence, the more

time a student spends on working, the less time he or she engages in

academic studies (Greene &Maggs, 2015; 2017). Mathuews (2018)

described that students’ experiences of time constraints are normally related

to the working time poor.

On the other hand, the experiences of working part-time can enhance

students’ motivation in academic studies and employment prospects (Curtis &

Shani, 2002; Curtis & Williams, 2002). Hence, students need a combination of

academic knowledge and financial needs to enhance their future career

opportunities (Nonis & Hudson, 2006).

Challenges of Working Student

Nancy (2017). Working while studying gives you a dissimilar perception on the

institute experience. Varying from friends to classes and to jobs, all working

students will comprehend how complicated it can get. It is of great concern for

the students who are pursuing their education and earning at the same time.

The prime advantage of working while learning is that they groom themselves

as they enter into their professional life. It is not as easy to work and educate

yourself at the same time. According to Williams (2014), the reasons why

students work is due to budgetary need, meet a quick or basic necessity, and

to help the understudies in their future objectives. This was supported by the

study of Furr and Elling (2002), where the reason why the students work part-

time is due to financial problem. Aside from these reasons, there were also

consequences of working while studying and that is according to the findings

of the study of Darolia (2014), where understudies take fewer attributes in

school because of work duties. As a result, the students’ lost confidence to

enroll and are dropping out and started to find a stable job. The U.S. Bureau of

Labor Statistics (2013), found 34.1 percent of high school students that
graduated between January and October 2013 are now part of the workforce.

Researches about working students are mostly conducted at universities in

developed countries, but those researches lack knowledge about how working

students face their everyday lives and how they conquer every problem they

encounter. According to the study of Ruhm (1997), it is necessary to

understand the effects of working students in society because as the rate of

working student reached an abnormal state, job-hiring started to show the

negative impacts that were attributed to it since it lessens instructive fulfillment

and scholarly execution particularly among youthful laborers without school

training. On the other hand, if working at a young age proves to be a favorable

aspect of the economy. Then the high rate of working student could add to

profit gaps observed later in life. Since there are many possible conclusions,

the researchers have to see the lapses of this work so that the researcher will

be able to explore the experiences of the working students and to be able to

understand fully what a working student is.