CARAGA NATIONAL HIGH SCHOOL

SENIOR HIGH DEPARTMENT

A QUANTITATIVE STUDY ON FAMILY INCOME LEVEL AND SPENDING HABITS:

SENIOR HIGH STUDENTS IN FOCUS

Submitted by:

Sheena T Mabandos

Submitted to;

Dr. Joan B. Cahilog

Research Teacher

February 2024
 CHAPTER 1

INTRODUCTION

Background of the Study

Family income level refers to the total amount of money earned by all members

of a household in a certain period, usually annually. It is a significant factor in

determining a family's socioeconomic status and living conditions Gary, (2015).

Spending habits refer to the various ways that individuals regularly spend their

money, which can be good, bad, or neutral. They are the repeated and sometimes

involuntary routines and practices people have around using money to purchase

experiences, services, and things Frugal Confessions, (2022).

Family is one of the universal and traditional social institutions. Family being an

important aspect of human life have various impacts on students where education is an

important and basic function of family institution Khan, Naz, Shah (2017).

A thorough global study into the relationship between family income and student

spending patterns is amply documented in a 2018 World Bank study.

This global analysis, discovered that differences in family income have a major

impact on students' educational expenses in a number of different regions, including

Southeast Asia, Latin America, and Sub-Saharan Africa. The study emphasised the

differences in access to learning opportunities and resources and demonstrated a

significant correlation between family income levels and student spending habits across

the world.
 Additionally, regional differences in family income affected students' spending

patterns, highlighting the significance of specific methods for reducing disparities in

learning. These global as well as local place-based insights highlight the importance of

modified policies that take into account both global trends and different regional

dynamics in addressing the link between family income and student spending habits

Smith, Brown (2016).

Meanwhile, one such critical dimension is its impact on the spending habits of

Senior High School students. In recent years, the relentless rise in prices of goods and

services has strained the financial capacities of families, making it increasingly

challenging for students to manage their expenses effectively.

According to Sandoval (2021) Spending habits for skincare products vary from

one woman to another. The University Students in the Philippines are increasing

demand in skincare products, that must be taken into account that the amount spent on

these products are higher compared to basic necessities such as food and clothing. If

this trend becomes widespread, it can drive up demand for skincare products and

related industries, potentially causing prices in that sector to rise.

This rising inflation has raised concerns about its impact on the spending habits

of students, given their limited financial resources. On the other hand, the headline

inflation rate of 6.2 percent in Caraga in April 2023 indicates a general rise in the cost of

goods and services compared to April 2022. This inflation can potentially impact the

family income levels and spending habits of students in the region. If family incomes do

not keep pace with the inflation rate, households may experience a reduction in real
income, affecting their purchasing power. Consequently, students may face challenges

in meeting their educational needs and may need to adjust their spending habits. Higher

prices for essentials like food, transportation, and educational materials may lead to

budget constraints for families, influencing how students allocate their resources and

impacting their overall financial well-being.

Family Income level and Spending Habits on Senior High Students, appears to

address a unique research gap compared to previous studies.

While past research may have explored the relationship between family income

levels and parenting quality, this study focuses on spending habits specifically in the

context of senior high students introduces a novel perspective.

This shift in emphasis allows for a more targeted examination of financial

behaviors within a specific age group. Understanding how family income influences

spending habits among senior high students can contribute perspectives to both the

fields of financial behavior and parenting research.

STATEMENT OF THE PROBLEM

This study aims to determine the Family Income level to and Spending Habits of

the Senior High Students. Specifically this study aims to answer the following

questions:Statement of the Problem

1. What is the Family Income level of the Senior High Students?

2. What is the Spending Habits of the Senior High Students?

3. What is the level of Spending Habits of the Senior High Students?

SCOPE AND DELIMITATION

This study aims to examine the Family Income and the Spending Habits of the

Senior High Students. Spending habits encompass various aspects of financial

behaviour, including expenditure on education-related expenses, personal items,

entertainment and savings. This research will focus on students within a specific age

group, typically defined as the Senior High Students studying at Caraga National High

School.

CONCEPTUAL FRAMEWORK

This section presents the conceptual paradigm of the study of Family Income

level and Spending Habits of the Senior High Students.

Figure 1. Conceptual Framework of the Study

Family Income Level Spending Habits

Education Level Cash spent for snack

Investments Cash spent for skincare

Lifestyle Cash spent for online shopping

Occupation Cash spent for school supplies

DEFINITION OF TERMS

Family is a group of people, either related by blood, marriage, or adoption, who share a

loving and supportive bond with each other.

Income refers to the money or earnings that an individual or household receives from

various sources, such as employment, investments, or business activities.

Level refers to a position or degree of advancement in a hierarchy, system, or scale,

often indicating a person's skill, knowledge, or experience in a particular area.

Spending habits refers to how carelessly and mindlessly students consume.

Inflation is the increasing prices of the products purchased by the students.

Purchased refers to when students make a financial purchase of goods.

Amount it is the total number of the pupils' purchases equals the amount.

Financial capacity is a concept that relates to students ability to manage their finances

effectively.

Socioeconomic refers to the combination of social and economic factors that influence

the status, opportunities, and quality of life of individuals or groups within a society.

Expenditures refer to the amount of money spent or the costs incurred by an individual,

organization, or government on goods, services

HYPOTHESES

There is no significant relationship between Family Income level and the

Spending Habits of Senior High Students.

Family Income level has no effect on the overall level of Spending in the Senior High

Students.

REVIEW OF RELATED LITERATURE

This section of the paper is the Review of Related Literature, in which the viewing

of existing literature on A Quantitative Study on Family Income level and Spending

Habits: Senior High Students In focus

Family income level refers to the total gross income earned by all members of a

family living together. It includes wages, pensions, investments, government assistance,

and any other sources of finances. The measurement of family income is used to

assess the economic position of individuals within a familial unit. Marks, (2015).

As stated by Greg J. Duncan & Katherine Magnuson, (2011) the relationship

between family income and various aspects of child development, including cognitive

abilities, academic achievement, and socio-emotional well-being. The authors find that

higher family income is associated with better outcomes in these areas.

According to Noble et al., (2015) that association between family income,

parental education, and brain structure in children and adolescents. The findings

suggest that higher family income and parental education are related to larger brain
surface area and cortical thickness, which are associated with better cognitive and

academic outcomes.

Additionally, the study of Han LV (2017) examines the intergenerational

transmission of education in China and the impact of family income on children's

academic achievement. The results show that family income has a significant influence

on children's education level, especially in rural families.

The average disposable annual income per household in Croatia in 2017 was

92,334 kunas (CBS, 2018). The socioeconomic status and resources, primarily the

income that the family has, influence students' behavior within the family environment

(Radetić-Paića & Černe, 2019).

Another study by Mirjana Radetić-Paića and Ksenija Černe (2019) examined the

factors of students' family resilience in relation to their families' income level. The study

found that students from families with no income or below-average income are likely

forbidden to show certain emotions in their family, while students from average or

above-average income families consider the ability to discuss problems and find

solutions as a significant factor of family resilience. However, the study did not find a

confirmed relationship between religion and income.

Radetić-Paića & Černe,( 2019) suggest that a connection between family

resilience factors and the level of family income. Poverty and reduced material

resources can impact family resilience, including reduced expectations about children's

life chances.
 Moreover, in the study of habitudes (2020), it is often contextual. You spend the

same amount under the same set of conditions. Because it's a habit, it may be so

natural and involuntary that you don't even realise it. Examples of this are: you always

spend a lot of money right after you get paid; that might mean taking your family out to

dinner every payday; you always give to charity at the end of the year; you have a habit

of spending on souvenir T-shirts on vacation; and you always wait until the last minute

to buy a plane ticket online.

Loxton et al. (2020) states that understanding the scope of the role of the media

in influencing changed consumer patterns of behaviour and discretionary spending is

increasingly important in our globalised world, where technological advances have

extended traditional domestic news stories to international audiences, such that the

media has come to play a larger role in the promotion and intensification of consumer

panic and anxiety.

In a study conducted by Oloyede Obagbuwa and Farai Kwenda (2020) it was

found that financial attitude has a significant influence on students' spending habits. The

study also revealed no statistically significant difference in spending habits based on

gender, major, or racial groups.

Avellana et al. (2021) state that spending habits are the behaviour patterns that

are followed regularly and are almost involuntary. It is a habit of spending money

whenever you have money and every moment you get paid. It is a habit that many

people don’t realise or notice about themselves.

 Chawla (2021) emphasized the pivotal role of financial management in achieving

success in life, stressing that an individual's capacity to handle their finances

significantly influences their overall achievements. The importance of implementing

effective financial strategies extends to all members of society, underscoring the

relevance of sound financial management practices in fostering personal and collective

success.

Shoo (2021) state that Positive growth in the economic condition of the nation

has given positive sign of growth and prosperity in the life of common man living in a

country, where people prefer to spend whatever money they earn to build-in their

comfort level or to enhance its standards. In an economy, if common man become

thrifty and they start spending ever single penny they earn, it leads to money velocity,

that in turn increase inflation rates.

Brave and Bruun (2022) argue that isolating the impacts on consumer spending

of supply and demand conditions from each other during normal times. When both are

changing rapidly, as they have been throughout the COVID-19 pandemic and its

aftermath, the challenge is only greater. While official statistics can measure the rise of

prices and concurrent shifts in consumer spending, these sources cannot capture the

specific consumer motivations and behavioural responses that are driving these

outcomes.

In Morgan's 2022 study, consumers are facing financial difficulties, which caused

them to reevaluate their purchasing habits. This change in behaviour showed up in a

number of ways, including a decrease in overall spending, a deliberate reduction in

purchases of non-essential items, and a noticeable switch from expensive name-brand

goods to less expensive own-brand alternatives.

Standard economic theory suggests that in the case of a recessionary

environment, the share of household income dedicated to core services will shift to core

needs, such as food, healthcare, and more, but the raw utility of this consumption will

remain stable (Keegan, 2023).

Bushra, (2022) said that It is crucial for students to save money and work as

much as they can because rising inflation will increase the price of housing, food, and

transportation for students as well as tuition. Students will probably need to take out

more loans as a result of rising college costs, and because of Fed rate hikes, these new

loans will have higher interest rates than in previous years.

SYNTHESIS

Family income level has a significant impact on various aspects of life. Studies

have shown that higher family income is associated with better outcomes in child

development, including cognitive abilities, academic achievement, and socio-emotional

well-being (Duncan & Magnuson, 2011). It has been found that higher family income

and parental education are related to larger brain surface area and cortical thickness in

children and adolescents, which are associated with better cognitive and academic

outcomes (Noble et al., 2015). Family income also influences children's education

levels, particularly in rural families (Han, 2017).

Moreover, the socioeconomic status and resources, primarily determined by

family income, influence students' behavior within the family environment (Radetić-
Paića & Černe, 2019). Factors such as family resilience and spending habits are linked

to family income, with poverty and reduced resources impacting family resilience and

expectations about children's life chances (Radetić-Paića & Černe, 2019). Spending

habits are often habitual and influenced by financial attitudes, with individuals frequently

engaging in spending patterns without conscious awareness (habitudes, 2020).

In addition, media also plays a role in influencing consumer patterns of behavior

and discretionary spending, with the potential to promote consumer panic and anxiety

(Loxton et al., 2020). Financial attitude has been found to have a significant influence on

students' spending habits, while no statistically significant differences in spending habits

have been observed based on gender, major, or racial groups (Obagbuwa & Kwenda,

2020). Effective financial management is emphasized as a pivotal factor in achieving

success in life, with the capacity to handle finances significantly influencing overall

achievements (Chawla, 2021).

In conclusion, economic condition of a nation and individual spending habits can

impact inflation rates and the overall prosperity of individuals (Shoo, 2021). The COVID-

19 pandemic has led to changes in consumer spending patterns, with consumers

reevaluating their purchasing habits, reducing overall spending, and opting for more

affordable alternatives (Brave & Bruun, 2022; Morgan, 2022). During recessions,

household income is often redirected towards core needs, while the raw utility of

consumption remains stable (Keegan, 2023). Rising inflation and college costs highlight

the importance of financial planning and saving for students (Bushra, 2022).
REFERENCES

Ali M, (2018) .,Inflation_and_Companies%27_Performance_A_Cross-

Sectional_Analysis

https://www.researchgate.net/publication/325502763_

Avellana, K., Galapon, R., Pangan, D., Paschal, H., Taradel, S., (2021) Spending Habits

of Senior High and College students During the Pandemic Https://www. academia.edu

Brave. S., and Bruun. K., (2022) Measuring the Impact of Inflation on U.S. Consumer

Spending https://scholar.google.com/scholar?

hl=en&as_sdt=0%2C5&q=Inflation+and+Spending+Habits+2023&oq=#d=gs_qabs&t=1

698128496012&u=%23p%3DFcMlzBAkeOkJ

Bushra. S , 2022How Inflation Affects College Students

https://www.onlineu.com/magazine/how-inflation-affects-college-students

Chawla, K., Spending & Saving Habits of College Students in Delhi/Https://scholar.

google.com

Cinbirella, Francesco; Schuelar, Ruth (2018) Nation building:The Rule of Central

Spending education, Explorations in Economic History 67,pp.,39

Dhar. R., 2022 How Does Inflation Change Consumer Behavior?

https://insights.som.yale.edu/insights/how-does-inflation-change-consumer-behavior

Gatpolintan, J & Avila, E.(2019) Percept Effects of Inflation on Budget Consumption

www. researchgate.net/publication
Goyal. A., Parab. P., (2019). Inflation convergence and anchoring of expectations in

India

https://ideas.repec.org/p/ind/igiwpp/2019-023.html

Habitudes, M., (2020) A comparative study about the Spending habits of Senior High

School and College during Pandemic Https:/www.academia.edu

Keegan, H.B., (2023) Demographic Inflation Inequality: Effects and Implications

Https://repoatory.library.geougetous.eau/state flewpaper/templete

Loxton. M., Scarf. B., Baldry. G.,Truskett. R., Sidone. L., Zhao. Y., 2020 Consumer

Behaviour during Crises: Preliminary Research on How Coronavirus Has Manifested

Consumer Panic Buying, Herd Mentality, Changing Discretionary Spending and the

Role of the Media in Influencing Behaviour

https://www.mdpi.com/1911-8074/13/8/166

Morgan., J.P., 2022 Inflation and the cost of living: Are consumers spending less?

https://www.jpmorgan.com/insights/economy/inflation/inflation-cost-of-living

Natividad,S.,(2020)

IMPACT_OF_INFLATION_ON_STOCK_MARKET_PERFORMANCE_IN_THE_PHILIP

PINES https://www.researchgate.net/publication/356816244

Nyamekye. E., Gabriel and Poku. A., & Eugene ( 2017) What is the effect of inflation

onconsumer spending behaviour in Ghana?

https://mpra.ub.uni-muenchen.de/81081/1/MPRA_paper_81081.pdf
Olusola, B. , Chimezie, M. , Shuuya, S. and Addeh, G. (2022) The Impact of Inflation

Rate on Private Consumption Expenditure and Economic Growth—Evidence from

Ghana https://www.scirp.org/journal/paperinformation.aspx?paperid=117726

Schuelar, M., (2023) The Impact of Inflation on V.S Consumers Behaviour 2022 Vs the

1970s: A comparison Https://opushs-furtwagen.de

Shoo, A.P., 2021 IMPACT OF INFLATION ON SPENDING HABITS OF MIDDLE-

INCOME GROUPS: A STUDY IN INDIA https://www.gapgyan.org/res/articles/(26-

Williams, P. (2019). The Student's Guide to Financial Literacy. Financial Education

Journal, 10(2), 35-50.

Obagbuwa, O., & Kwenda, F. (2020). Determinants of Students' Spending Habits: a

Case Study of Students at a Premier University of African Scholarship.

Radetić-Paića, M., & Černe, K. (2019). The influence of family income on students’

family resilience in Croatia.

CBS. (2018). Total household income in Croatia

 CHAPTER 2

METHODS

This chapter presents the research methods, which includes, research design,

research locale, instrumentation, data gathering procedure, data analysis and ethical

considerations.

RESEARCH DESIGN

The researcher will aim to employ a quantitative research design to examine the

Family Income level and Spending Habits of Senior High Students using a correlational

research approach. According to Dawson (2019) quantitative research design is meant

to create numeric statistics by using survey research to gather data. This approach

tends to reach a larger amount of people in a shorter amount of time. A correlational

research design measures a relationship between two variables without the researcher

controlling either of them McCombes, (2019). Data will be collected through surveys or

questionnaires to assess the Family Income Level and the Spending Habits of the

Senior High Students.

RESEARCH LOCALE

This study will be conducted in Caraga National High School, a public school

located at the province of Davao Oriental, municipality of Caraga. This school is being

chosen because it has a diverse student population.

RESPONDENTS
The respondents of this study will be the Senior High students. The researcher will

employ the stratified random sampling to select respondents in each section in different

strands. Moreover, stratified sampling is a probability sampling technique used in

sample survey. The elements of the targeted population are divided into distinct groups

or strata, with elements within each stratum being similar to one another in terms of

certain-survey relevant characteristics (Parsons, 2017) .

RESEARCH INSTRUMENT

The researcher will use a self-made structured questionnaire as a survey

instrument to extract the relevant data from the primary respondents in order to collect

data relevant to the study.

QUESTIONNAIRE

The questionnaire is commonly used instrument in the study. It is the major tool

used by the researcher in gathering significant data from the respondents. The

questionnaire was designed in a clear and simple manner. Part I contained a set of 10

questions on what is the level of Family Income of the Senior High Students in Caraga

National High School. Part II comprises of 10 questions on what is the Spending Habits

of the Senior High Students and the Part III compromises of 10 questions on what is the

level of Spending Habits of the Senior High Students. This will rated using the both five

point scale: Always (5), Often (4), Sometimes (3), Seldom (2), Never (1).
Validation

They were referred to the adviser for connection and modification. The results of

the revision served as the basis for its improvement and refinement. The instruments

were assessed in terms of their construction, organisation, structure, and purpose.

One hundred forty (144) total copies of questionnaires will be distributed to all

participants, since 18 copies will be distributed to each strand from grade 11 to grade

12.

DATA GATHERING PROCEDURE

The data will be gathered through the following procedures:

Consent to carry out the study. The researcher will get ask permission to conduct the

study at Caraga National High School by writing a letter to the school principal.

Administration and Retrieval of Instruments. The survey questionnaire will be

distributed to the students in Caraga National High School during school days to ensure

majority attendance and presence of the students. The researcher will explain to the

students the entire process from distribution and collection of questionnaires. The

researcher will briefly explain to the students the goals, objectives and the relevance of

the process of conduction.

Evaluation and Explanation. Based on the objective of the study, the researcher will

evaluate and interpret the findings.

DATA ANALYSIS

Statistical Tool

The responses to the items in the research-made questionnaire was analyzed

and interpreted using the appropriate statistical treatment as follows.

Regression Analysis: This is used to understand the relationship between a dependent

variable (spending habits) and one or more independent variables (family income level).

It can help determine if and how family income level predicts spending habits.

Correlation Analysis: This statistical method is used to measure the strength and

direction of the relationship between two variables, in this case, family income level and

spending habits of students.

Table of Interpretation

Verbal Interpretation

4.3-5.0 Always

3.5-4.2 Often

2.7-3.4 Sometimes

1.9-2.6 Seldom

1.0-1.8 Never
ETHICAL CONSIDERATIONS

The researcher will employ the following ethics in conducting a sturdy to ensure

the protection of participants' rights, privacy, and well being throughout the research

process. This will include:

Informed Consent: Before participating in the study, students and their parents or

guardians should be fully informed about the purpose of the study, what it will involve,

and any potential risks or benefits.

Confidentiality and Anonymity: Researchers will ensure that individual responses

are kept confidential and that participants are anonymous in any reports or publications

based on the research. This is particularly important when dealing with sensitive topics

like income level.

Avoiding Harm: Researchers will strive to avoid causing harm to participants. This

includes not only physical harm, but also psychological harm, such as stress or

embarrassment that could result from discussing personal financial information.

Data Integrity: Researchers will accurately report their findings without manipulating or

misrepresenting the data to fit preconceived ideas.

Respect for Privacy: Researchers will respect the privacy of the students and their

families. Personal details related to income level and spending habits should be

handled with utmost care.

 A Quantitative Study on Family Income level and Spending Habits: Senior High
Students In focus
Instructions: Please put check mark (✓) in each item. Answer it carefully and with all
honesty, your answers will be kept confidential.
Part I. Personal Information
Name: (Optional) Grade & Section:
Age: Gender: Male
Female

5- Strongly Agree 4- Agree 3- Undecided 2- Disagree 1- Strongly Disagree

Family Income Level 5 4 3 2 1

1. My parents pay our bill on time.

2. My parents have good income.

3. My parents have savings.

4. . My family can afford to hire housekeeper

5. My family can afford to buy new gadgets.

 5 - Always 4 - Often 3 - Sometimes 2 - Seldom 1 - Never

6. I buy new clothes, shoes, or accessories.

Spending Habits 5 4 3 2 1
7. .I spend money on gifts for others.
1. I do not buy things I do not need.
8. I spend money without thinking about my budget.
2.I compare prices before making a purchase.
9. I regularly eat out at restaurants or order takeout.

10. I frequently buy snacks or drinks from cafes or

3.I use coupons or look for discounts when shopping.
convenience stores.

4.I spend money on unnecessary items.

5.I budget money for different categories (e.g., food,

transportation).