“Factors Affecting the Saving Behaviors and Financial Management Strategies of

Grade 12 Accountancy, Business, and Management Students of PHINMA

Cagayan de Oro College-Puerto Campus"

A Qualitative to Quantitative
Research Proposal Presented
to

The Faculty of the Senior High

School PHINMA-Cagayan de
Oro College Cagayan de Oro
City

In Partial Fulfillment of Course

Requirements
APP 005: Practical Research 1

By: B1-G11-ABM-01-P
GROUP 2 RESEARCHERS:

Emata, Chelsy Louisse Pacaña, Cloui Grace

Era, Roderick Jr. Pagutayao, Chloei
Gatab, Kim Ashley Palad, Ara
Gonzales, Nicole Shyne Piscador, Sandy
Lagamon, Roe Neizle Quilacio, Zyra Jhene
Lariosa, Clair Cydel Ramos, Kurt Raven
Limpag, Liuz Jared Saldua, Aleah Mae
Llemit, Chloe Camille Samson, Clark Kenneth
Macababayao, Mary Ashley Sollano, Jaira Faith
Manayaga, Leanne Tangub, John Michael
Manubay, Honey Jean Ubalde, Kristel Ann
Ociones, Selina Eliza Joyce
 APPROVAL SHEET

This Action Research attached hereto, entitled, Factors Affecting the Saving Behaviors

and Financial Management Strategies of Grade 12 Accountancy, Business, and Management

Students of PHINMA Cagayan de Oro College-Puerto Campus prepared and submitted by B1-

G11-ABM-01-P – GROUP #2 in partial fulfillment of the requirements for the Course APP 005:

Practical Research 1.

DALE ANGELIQUE
JAMERO,
LPT

Research Instructor

Accepted in partial fulfillment of the requirements for the Course APP 005: Practical Research 1

Principal

November 17, 2023

Date
 CHAPTER I
INTRODUCTION

The global economics have risen in a fast growing trend in recent years. The
financial habits or practices of the people vary around the world, and the most common one
is saving. Also, saving can be defined as the portion of an individual's income that is set
aside for future use rather than spending right away. Besides, saving behavior is a key need
for people to acquire and practice good financial skills in their lives so that they can solve
possible future spending decisions on their own. Individuals gain control over their spending
habits by saving and learning how to spend wisely (Ariffin, Sulong, & Abdullah, 2017). In
other words, saving behavior is the combination of perceptions of future needs. Furthermore,
some students are known to be impulsive when purchasing items, and their financial
management and saving habits are not yet established as a habit. Some of these students
eventually spend their money on non-essential use, resulting in unbalanced financial
management. This issue has been a significant topic that has tested student's attitudes and
behaviors when it comes to saving and managing their finances.

Moreover, Filipinos are often self-assured when it comes to their financial

management. They also have a sense of entitlement that drives them to purchase items. In
reality, disinformation, as well as incorrect habits and attitudes, demonstrate that the majority
of Filipinos are prone to blind spending and lack financial literacy. The procrastination habit
allows them to make excuses regarding saving money due to cultural beliefs (FE Life and
Lifestyle magazine editors, 2014). To sum up, students must be able to independently
manage their finances well and must also be able to be responsible for the decisions they
have made. Thus, the findings of this research may be useful to this institution and may
contribute to the literature on financial management.

BACKGROUND OF THE STUDY

Over the past decades, saving has played an important role in the process of
economic growth and development. Logically, saving encourages investment that triggers
the economic growth of a country. More importantly, the researchers address the factors
affecting saving behavior and financial management among students. Studying financial
management can help make students more responsible about saving and spending their
money for future purposes. Beyond this, learning financial management strategies can also
provide individuals with a greater awareness of how to manage their spending once they
begin managing their own finances. This increased awareness may help individuals stick to
their budgeting plans and potentially grow their savings, as noted by Santillán et al., (2021).

Subsequently, they do not ensure that the money spent is misused. This problems
are common among students attempting to balance small budget with living expenses.
Some students are not mature enough to handle finances and they overspend. Also, poor
financial management happened when students do not have discipline in their budgeting
and spending money. Specifically, these problems can seem impossible to overcome, but
you can get help and take steps to improve your situation. The majority of the students are
first time they have experienced financial independence without parent's supervision. They
fail to do the management and flow of their money. They do not have the skills to manage
their own money. More importantly, having financial literacy is a vital thing to get a
prosperous life. Financial literacy is the capacity of people to settle on suitable choices in
dealing with their own funds. Financial knowledge is very important for an individual so that
they are not wrong in making their financial decisions. However, some studies indicate
students who have low knowledge of financial literacy will make wrong decisions regarding
their finances (Ergun et al. 2018).

Based on the past researchers, two determinants of saving behavior and financial
management strategies which is financial literacy and managing finances were selected for
this study. Moreover, Grade 12 ABM senior high school students of PHINMA Cagayan de
Oro College-Puerto Campus were chosen as the target respondents due to their significant
future contribution to society. Furthermore, the researchers want to determine the saving
behaviors and financial management strategies of Grade 12 Accountancy, Business, and
Management students, and identify the factors affecting the saving behaviors and financial
management strategies. Thus, based on the researchers, readers can gain more knowledge
on the factors affecting the saving behaviors and financial management strategies of Grade
12 Accountancy, Business, and Management students of PHINMA Cagayan de Oro
College–Puerto Campus.
STATEMENT OF THE PROBLEM

The study aims to determine the factors affecting of saving behaviors and financial
management strategies of Grade 12 accountancy, business, and management student's of
PHINMA Cagayan de Oro College–Puerto Campus.

More specifically, it seeks to answer the following questions:

1. What are the saving behaviors and financial management strategies of Grade 12
accountancy, business, and management students?

2. What are the factors affecting the saving behaviors and financial management
strategies of Grade 12 accountancy, business, and management students.

SCOPE AND DELIMITATIONS

This research specifically seeks to gain insights into the financial habits and
management strategies of Grade 12 Accountancy, Business, and Management students at
PHINMA Cagayan de Oro College-Puerto Campus. Furthermore, the main objective of this
study is to identify the factors that influence students' financial decisions and saving
techniques. In addition, this study will use primary data collection methods, including
interviews, surveys and questionnaires, to gather information from the students. Thus, the
study population will be limited to Grade 12 Accountancy, Business, and Management
students enrolled at PHINMA Cagayan De Oro College-Puerto Campus of the school year
2023-2024, and will not include other schools and grade levels within the institution.

SIGNIFICANCE OF THE STUDY

This research study aims to identify the factors affecting saving behaviors and
financial management strategies of Grade 12 Accountancy, Business and Management
students. Thus, the study benefits the following people:

Students. The students will gain a better understanding of various factors that
influence their saving behaviors and financial management strategies. By developing their
saving behaviors along with their acquired decision-making skills, students will be better able
to contribute to their financial well-being as they progress through their academic journey.
 Teachers. The teachers provide a finding of the study with valuable insight into
saving behaviors and financial management strategies. By connecting with the students and
utilizing their abilities and strengths to develop a cooperative supportive learning
environment, this information helps teachers serve individual kids who may need additional
attention.

Parents. Parents can make adjustments to their own financial plans and ensure the
overall financial well-being of their family. Allowing them to make more informed decisions
about their own savings for long-term financial success by fostering communication.

School Administrator. School Administrators identify the areas where students may
need additional support or education. The school administrator can improve the overall
educational experience and give students the resources that they need to effectively
manage financial situations by focusing on these aspects. Causing more empower students
to make wise financial decisions.

Principal. The Principal can make informed decisions regarding teaching methods,
and resources that will enhance financial literacy and skills among students by
understanding the factors that influence saving behaviors. Certainly, they can empower them
to make informed decisions about their personal finances. Having long-term benefits for the
students as they enter the face of financial challenges in their own lives.

Admission Director. The Admission Director is implementing strategies to promote

financial habits among students, aiming to attract and retain them through scholarships and
financial aid programs, stimulate financial literacy and cultivate a culture of financial
responsibility.
THEORETICAL FRAMEWORK

This study “Factors Affecting the Saving Behaviors and Financial Management
Strategies of Grade 12 Accountancy, Business, and Management Students of PHINMA
Cagayan de Oro College-Puerto Campus" is anchored on the following theories: Permanent
Income Hypothesis Theory, Life Cycle Hypothesis, and Theory of Planned Behavior.

Milton Friedman's permanent income hypothesis suggests that people spend money
at a level consistent with their expected long-term average income. Workers save only if
their current income is higher than the anticipated level of permanent income to guard
against future income declines. This theory is relevant to our study, as workers save only if
their current income is higher than the anticipated level of permanent income. Just like the
students, they can save their money only if they have enough money left.

On the other hand, Franco Modigliani's Life Cycle Hypothesis suggests that people
deplete their wealth during old age, often passing it on to children or being unwilling to spend
it. Younger individuals are more able to take on investment risks and have greater financial
savvy, challenging the traditional belief that consumption and savings depend on current
income. Economic growth, like population growth, causes positive savings and higher saving
rates. The significance of the study is that the younger generation save their money depends
on their current income because it can benefit them in the future. The younger generation
risk their income to challenge how far their money would become.

Otherwise, the theory of planned behavior suggests that intentions are influenced by
three factors: attitudes, subjective norms, and perceived behavioral control. External factors
can force or prevent behaviors, depending on the individual's degree of control. The more
favorable these factors are, the more likely intention and action are to occur. Ajzen's
research supports the claim that intention is more predictive of behavior than attitudes alone.
The significance of the study is that the behavior should be control when spending money to
give a positive feedback. As a student you should know how to control yourself in spending
to things that are not necessary to used.
CONCEPTUAL FRAMEWORK

Input Process Output

1. Spending 1. Improvement of
Habits 1. Survey Students financial
management.
2. Peer Influence 2. Questionnaire
2. Students applied
3. High Income good decision
making when
4. Self-Control spending money.

5. Attitudes

Figure 1. Factors Affecting the Saving Behaviors and Financial Management Strategies of Grade
12 Accountancy, Business, and Management Students of PHINMA Cagayan de Oro
College-Puerto Campus.
DEFINITION OF TERMS

Financial habits. These behaviors are generally formed over time and can significantly affect
one's financial health. Saving money, creating a budget, making investments, paying bills on
time, keeping track of spending, and making wise financial decisions are just a few
examples of financial habits. To achieve financial goals and keep your financial situation
stable, you must cultivate good financial habits.

Management. Pertaining to the financial management of students and strategically planning

on how should the students properly use their money. This includes decisions about raising
capital, borrowing money and budgeting. Financial management also involves setting
financial goals and analyzing data.

Financial decisions. The process by which students make choices about how to use their
money, considering factors like income, expenses, and financial goals, in order to achieve
their goal.

Procrastination. When students delay or put off important financial management tasks,
such as budgeting or saving, in favor of other activities.

Blind spending. Blind spending refers to the act of students on how to spend money without
carefully considering their financial goals or priorities. It often involves impulse purchases or
unnecessary expenses that can negatively impact your budget.

Financial Literacy. Financial literacy refers to students knowledge about saving and spending their
money wisely. Usually, this can impact students saving behavior and give them financial knowledge
in budgeting their money.