PR Final

St.
Paul University Surigao

St. Paul University System
Surigao City, Philippines
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
FACTORS AFFECTING THE SPENDING BEHAVIOR OF ABM STUDENTS
A Research Paper Presented to

The Faculty of the Senior High School
ST. PAUL UNIVERSITY SURIGAO
Surigao City
In Partial Fulfilment of the Requirements for

ACCOUNTANCY, BUSINESS, AND MANAGEMENT (ABM)
By
ANTIPASADO, James C.
BACLAYO, Jeunesse Cyril D.
MONTILLA, Marco Edwinno F.
FEBRUARY 2024
1
i
St. Paul University Surigao
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
TABLE OF CONTENTS
PAGE
TITLE PAGE i
CHAPTER 1 PROBLEM AND ITS BACKGROUND 1
Introduction 1
Conceptual Framework 3
Statement of the Problem 6
Hypothesis 6
Significance of the Study 7
Scope and Limitation of the Study 8
Definition of Terms 9
CHAPTER 2 REVIEW OF RELATED LITERATURE 10
Synthesis of the review 18
CHAPTER 3 METHODS 21
Research Design 21
Participants 21
2
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
Instrument 22
Data Gathering Procedure 22
Data Analysis 23
Ethical Considerations 23
REFERENCES 25
Curriculum Vitae 29
LIST OF FIGURES
Figure Title Page
1 Schematic Diagram of the Study 5
3
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
CHAPTER 1
THE PROBLEM AND ITS BACKGROUND
This chapter presents the introduction, conceptual framework, statement of the problem,
significance of the study, scope and limitation, and definition of terms.
Education is a crucial aspect of personal and societal development, and as students’
progress through their academic journeys, they inevitably encounter various challenges and
influences that shape their behaviors (GGI Insights, 2023). Allowance is the amount of something
available or needed for a particular purpose, a word that is usually associated with students and
school expenses. There are different factors why students are spending their allowances on a
certain thing. Students are getting more and more into consumerism every day. Proper budgeting
is important. If done responsibly, it can give both the students’ needs and wants (Castaneda,
2021).
Spending behavior is an important aspect of student life because it includes the choices and
patterns that students exhibit when it comes to spending money (Pasco et.al 2023). According to
Lalmuanpuia (2021), student budgeting primarily refers to the management of financial expenses
within their assigned budget. Several factors make the behavior of students dynamic and unique
conduct.
Developing early good spending habits is crucial for educational success and long-term
financial stability. Effective expense management prevents overspending and impulsive buying,
contributing to overall financial well-being. Smart spending extends your money, allowing you to
achieve financial goals. Planning and prioritizing expenses based on needs are key strategies
(Castaneda, 2021). Senior High School students' financial independence impacts various aspects
of their lives, necessitating the teaching of sound financial management skills. Monitoring
1
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
expenses, influenced by family and lifestyle, helps maintain a budget. Understanding one's
attitude towards spending is essential for financial awareness and staying on track.
The importance of spending behavior among students is a critical aspect of their transition
into financial independence (Lalmuanpuia, 2021). As they navigate through their educational
journey, particularly those enrolled in specialized programs such as Accountancy, Business, and
Management (ABM), students are faced with daily decisions that test their financial behavior.
The major challenge that students face is determining how to budget their costs and saving
a proportionate amount each month for contingent events. Most of the students get their monthly
allowance from their parents and are answerable to them for their expenditure (Singh et.al 2020).
Among the diverse student population, those enrolled in the Accountancy, Business, and
Management (ABM) strand of St. Paul University Surigao are exposed to a curriculum designed
to develop their skills in business and finance. Given their academic background, one might
assume that ABM students would exhibit more disciplined spending behaviors. However, there is
evidence to suggest that knowledge does not always translate into practice, and that even those
educated in financial management are not immune to poor spending decisions.
The researchers observed that some of the ABM Students of St. Paul University Surigao
does not know how to manage their allowance. Students that lack budgeting often led to not
tracking the money that they spend. The challenge for students lies in budgeting their expenses
and saving for unforeseen events, often managing within a limited allowance provided by parents
or guardians. The researchers aim to know the factors that affect the spending behavior of ABM
students.
The goal of this study is to identify the key factors that influence the spending behavior of
ABM students and understand how these factors impact their financial decisions. This research
2
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
aims to examine into how these factors interact to influence students spending habits. Moreover,
this study aims to explore the relationship between these factors and provide insights into the
process that shape ABM students spending habits.
Conceptual Framework
This study is anchored in the field of Tourism Management Studies entitled “Factors
Affecting the Spending Behavior of Tourism Students” from Far Eastern University presented by
Ms. Perryanne Castaneda (2021). Her study focuses on determining the significant factors that
affect the spending behavior of students. The factors that influence the students are the following:
personal factors, cultural factors, social factors, and psychological factors. Spending behavior is
defined as the act of disbursing money in response to an action, environment, or person in the
satisfaction of needs and wants. The way how students manage their own money may become a
behavior that may be a difficult thing to change, for habits have been influenced by what the
surroundings are.
The first box indicates the profile of the Accountancy Business and Management (ABM)
students at St. Paul University Surigao, which includes; sex, age, weekly allowance, and family
monthly income.
Sex. Men and Women exhibit diverse necessities, consumption, and life decision-making;
hence, deliberating the participants' gender can equip researchers with contrasting results and
perspectives based on their critical thinking.
3
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
Age. As individuals progress through different life stages, their financial priorities, needs,
and disposable income vary. Understanding the age demographics within the ABM student
population is crucial for identifying patterns in spending behavior.
Weekly allowance. A weekly allowance serves as a crucial financial resource for students,
influencing their budgeting and spending decisions.
Family monthly income. The financial resources available to a student's family directly
impact their purchasing power and budgeting decisions.
The second box indicates the variables affecting the spending behavior of Accountancy
Business and Management (ABM) students at St. Paul University Surigao.
Personal factors. Personal factors such as the amount of daily allowance, academic
priorities, participation in projects and activities, frequency of socializing, peer influence, and
appetite significantly affect the spending behavior of ABM students. These factors determine how
much they spend and where they allocate their resources.
Cultural factors. Cultural factors significantly influence a person’s spending habits. The
cultural background of ABM students can affect their perception of money, their attitudes
towards saving and spending, and their purchasing decisions.
Social factors. Social factors can influence social elements on the spending habits of
students. These elements can include peer pressure, societal expectations, cultural norms, and the
desire for social acceptance or status.
Psychological factors. Psychological factors like impulsive buying, distinguishing needs
from wants, peer influence, self-esteem, academic performance, and financial literacy
significantly influence the spending behavior of ABM students.
4
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
Profile of Participants in Factors affecting the
terms of: spending behavior in terms
of:
• Sex • Personal Factors
• Age • Cultural Factors
• Weekly Allowance • Social Factors Proposed
• Family Monthly • Psychological Factors Recommendations
Income
Figure 1: Schematic Diagram of the Study
5
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
Statement of the Problem
The study is focused on the assessment of the factors affecting the spending behavior of ABM
Students in St. Paul University Surigao, which specifically answers the following research
problems;
1. What is the profile of the participants in terms of:
1.1. sex;
1.2. age;
1.3. weekly allowance; and
1.4. family monthly income?
2. How does factors affects your spending behavior be described in terms of:
2.1. personal factors;
2.2. cultural factors;
2.3. social factors; and
2.4. psychological factors?
3. Is there a significant difference in the factors that affect spending behavior of ABM students
when grouped according to the profile variable of the participants?
4. Based on the findings, what recommendations may be proposed?
6
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
Hypothesis
At 0.05 level of significance, it is hypothesized that there is no significant difference in the
factors that affect the spending behavior of ABM students when grouped according to the profile
variable of the participants.
Significance of the Study
This research investigates the factors affecting the spending behavior of ABM students.
This study aims to determine the different factors which may affect the student’s decision in
spending money and buying things whether it belongs to their wants or needs. The outcome of
this endeavor is going to be additionally vital to the following:
Students. The students will be knowledgeable and aware of how they will spend their
allowances on their necessities. This study will improve their lives as a student for they are the
one who will benefit the most in this study. It will enhance their capability of applying their
knowledge from their field of study to the real world and as part of their daily practices.
Parents. The study can help parents understand the factors influencing their children’s
spending habits, enabling them to guide their children towards better financial decisions. It also
provides insights into the effectiveness of their current parenting strategies in shaping their
children’s financial behavior.

7
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
Teachers. Teachers can use the insights gained to initiate discussions and activities that
raise student’s awareness of the various factors that influence their behavior. Teachers can
collaborate more effectively with parents in promoting responsible spending behavior among
ABM students.
Future Researchers. The result of the study may also be of interest to potential researchers.
It could be a guide to collect information and data in the society.
Scope and Limitation of the Study
This study primarily concentrated on the Factors Affecting the Spending Behavior of ABM
Students in St. Paul University Surigao in terms of personal factors, cultural factors, social
factors, and psychological factors that can affect spending behavior. The goal of the study is to
know the factor which mostly affects the spending behaviors of the ABM students. This study
will be conducted in the school year 2024-2025. The respondents of this study will be limited to
the ABM Students only. The researchers will administer a researcher-made questionnaire to
ABM Students in St. Paul University Surigao. This study is only intended to cover the factors that
affect the spending behaviors of ABM students in St. Paul University Surigao.
8
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
Definition of Terms
To have a better understanding and identify the difference in this study, the following terms
were defined:
Affecting. Refers to the factors or variables that have an influence or impact on the
spending behavior of ABM students.
Behavior. Refers to the actions, decisions, and practices of ABM students in relation to
their spending.
Spending. Refers to the act of using money to buy goods or services. How ABM students
use their money - what they choose to spend it on, how much they spend, and how often they spend.
9
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
CHAPTER 2
REVIEW OF RELATED LITERATURE
This chapter provides an overview and insights regarding the strong points and limitations
of previous studies which support the researcher's output. This review aims to link the variables
given in the conceptual framework and the study's primary objective. It underscores the
importance of understanding these variables in the context of the Factors that Affect the Spending
Behavior of ABM Students. As the current study delves into the specific factors that affect the
spending behavior of ABM students at St. Paul University Surigao, this chapter also reviews
studies that provide definitions and insights into spending behavior. These studies offer a range of
perspectives on spending behavior, examining it from various angles.
Spending behavior can be defined as the manner affecting the way a person uses their
money to satisfy their wants and needs without any use of control. The way the student spends his
money can be a habit that is very difficult to change, and this behavior may be influenced by the
factors in his or her surroundings (Dutig et al., 2020). In the context of the spending behavior of
ABM students, which is defined as the uncontrolled way individuals utilize their money to satisfy
their wants and needs, it’s crucial to understand that this behavior can become a deeply rooted
habit, difficult to change, and is often influenced by various factors in their surroundings.
According to (Ruanes et al., 2023), ABM senior high school students demonstrated
somewhat good financial habits, effectively managing their discretionary spending on non-
essential items, exhibiting good savings habits by setting aside money for future use, showing
restraint in making impulsive purchases, and successfully prioritizing their needs over wants. This
study underscores the importance of targeted interventions to further enhance these habits and
promote responsible spending among students.
10
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
Personal Factors
The first factor which affects the consumer buying behavior is the personal factor. The
personal factors consist of age & stages of life cycle, occupation, personality, lifestyle, and values
which affects the consumer buying behavior (Kotler & Keller, 2016). Buying can make people
feel important and satisfied since it gives them a sense of fulfillment and empowerment.
Customers frequently spend money to feel these good emotions because of this emotional
response. Furthermore, since it determines a person's financial capability and limitations, the
amount they can afford to spend on products and services also has a direct impact on their
purchasing selections. Consumer behavior is shaped by the relationship between emotional
fulfillment and financial resources, which influences the decisions people make in the
marketplace.
Young people who are taught about finances during childhood have the greatest chance of
being debt-free in adulthood (Bona, 2018). The act of purchasing makes them feel important and
satisfied. People who are early exposed to financial concepts like saving, budgeting, and interest
rates are better equipped to make wise financial decisions as they age. Early education on the
negative effects of debt and the significance of appropriate borrowing helps prepare them to avoid
accruing excessive debt as adults. Financial education discourages overspending and impulsive
purchases by encouraging a feeling of financial responsibility and self-control. Early financial
education lays a solid foundation for great stability and financial management.
According to Obagbuwa and Kwenda (2020), a person is classified as a poor spender if he
or she has poor discipline in terms of constant spending behavior. A lack of discipline might lead
a person to debt, loans and will be tough to budget and control spending. Wealth influences
11
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
spending behavior, people with higher incomes can generally spend more money than those with
lower incomes. Those with higher money are more likely to be able to afford luxury things or
experiences.
Teenagers will follow the trend that most other people in their environment are pretending
to follow to fit in or be liked by others. People who have similar preferences are more likely to
have similar spending behavior because peers influence each other (Duflo and Saez, 2002).
Youths in the same reference group behave similarly because they share a set of unobserved
features. People who share similar preferences are more likely to belong to the same group.
Members of the same group have the same environment, which may impact their behavior.
According to Gulati (2017), people spend more money when they shop with their friends
than when they shop alone. Shopping with friends can create a more relaxing and enjoyable
environment, making people less concerned about sticking to a budget or making reasonable
purchasing decisions. Being with friends might cause a sense of social pressure to buy stuff to fit
in or keep up with others. Friends may urge one another to buy products they would not have
chosen on their own, resulting in impulse purchases. The presence of friends can also heighten
the thrill of shopping, increasing the possibility of purchasing non-essential products. Shared
experiences during group shopping trips can lead to individuals spending more freely than when
shopping alone.
Cultural Factors
Culture is the part of every society and is the important cause of buying and their behavior.
The influence of culture on buying behavior marketers must be very careful in analyzing the
culture of different groups. Culture represents the behavior beliefs (Shah, 2010). Spending
12
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
behavior among ABM students is essential because it provides insights into the cultural
influences that shape their buying decisions.
To understand how these factors influence consumer behavior, these cultural factors
influence consumers' perceptions of products or services, their preferences, and the way they
interpret marketing messages. In this way much of what we do is shared behavior, passed along
from one member of society to another. (Kanhasiri, 2006) This can also gain a holistic
understanding of the factors influencing the spending behavior of ABM students.
Culture can influence the values, norms, and beliefs of students regarding spending and
saving. Culture can also affect the exposure and access of students to various products and
services, which can influence their spending choices. (Singh et al., 2020) this will enrich the
understanding of cultural factors that shape the spending behavior of ABM students. It helps us
recognize the importance of cultural context in their spending choices and enables us to develop
strategies and interventions that are culturally relevant and effective in promoting responsible
financial habits among ABM students.
Cultural factors have a significant impact on customer behavior (Durmaz and Jablonski,
2012). It acknowledges the significance of cultural influences in shaping individuals' financial
decision-making processes and provides a more comprehensive understanding of the factors. This
knowledge can inform targeted interventions and contribute to the broader understanding of
consumer behavior within the ABM student population.
Culture is the essential character of a society that distinguishes it from other cultural groups
(Lamb et al., 2011). This can help us understand the cultural context in which these students
13
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
make their financial decisions and acknowledges the influence of cultural factors on their
spending behavior. This knowledge can inform the development of culturally sensitive
interventions and strategies to promote responsible financial management among ABM students.
Social Factors
A study by Sandipan (2023) stated that our peers and social groups can also influence our
spending habits, as we tend to compare ourselves to others and want to fit in. Social norms refer
to the unwritten rules of behavior that govern our society. Social norms can have a significant
impact on our spending habits, as we tend to conform to what is considered socially acceptable.
This suggests that ABM students’ spending behavior can be significantly shaped by their desire to
conform to the expectations of their peers and societal norms. Therefore, understanding these
social influences is crucial in comprehensively analyzing the factors affecting the spending
behavior of ABM students.
Social factors play an essential role in influencing the buying decisions of consumers
(Juneja, 2020). Social factors are important in spending behavior because human beings are social
animals. We live in societies and are influenced by the people around us. Our buying decisions
are often influenced by our reference groups, family, and our role and status in society. These
social factors can lead us to make purchases that we might not have considered on our own. They
can influence not only what we buy, but also how we use the products and how we dispose of
them when they’re no longer needed.
All members of society are influenced by social factors. Social factors cause various effects
on society and individuals. Social factors also have effects on consumer behavior (Arslan, 2003).
By identifying and analyzing the specific social factors that shape the preferences, attitudes, and
14
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
habits of ABM students regarding their money management, budgeting, saving, and spending, the
research can contribute to the understanding of how consumers make buying decisions and how
they can be influenced by their social environment.
Social factors have a direct impact on the consumption and purchasing behavior of people.
The main social factors affecting consumer behavior are family, roles, and status (Durmaz &
Gündüz, 2021). Social factors have a direct impact on the consumption and purchasing behavior
of people, as they shape the way consumers view themselves and others, and influence their
needs, wants, and goals. Family, roles, and status are the main social factors affecting consumer
behavior, as they define the identity and social position of consumers in relation to others.
Humans are social beings, and they live around many people who influence their buying
behavior. Humans try to imitate other humans and wish to be socially accepted in the society.
Hence their buying behavior is influenced by other people around them. These factors are
considered as social factors (Clootrack, 2019.). Social factors and spending behavior are closely
related because consumers are social beings who want to fit in, belong, and be accepted by others.
Consumers often buy products or services that match their social identity, express their social
status, or enhance their social relationships.
Psychological Factors
The psychological factors that influence an individual's decision to make a purchase are
further categorized into the individual's motivations, perceptions, learning and his beliefs and
attitudes (Callwood, 2013). Psychological factors influence students' spending behavior.
Spending on things that are not necessities might result from social pressures. Behaviors such as
impulsivity and self-control influence one's ability to make decisions, impulsivity causes
impulsive buys while low self-control causes overspending.
15
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
The psychological factor also affects the consumer buying behavior. It is also known as the
internal factor (Ali & Ramya, 2016). Psychological factors have a significant impact on spending
behavior. These factors include an individual's personality, attitudes, and psychological traits,
which influence their decision-making process and purchasing behavior. People are frequently
affected by what other customers buy when they make purchases of products or services. The
environment is one reason why consumers may be thrilled about a new product that enters the
market. Psychology and the environment are related.
According to (Lantos, 2011) motivation is an activated internal need state that leads to
goal-directed behavior to satisfy that need. A motivation is a powerful, internal stimulus that is
relatively long-lasting and persistent and that directs behavior toward certain goals to accomplish
specific objectives. Purchasing items out of peer pressure, status, or a need for stability and
comfort in the face of boredom, grief, anxiety, or other emotions.
Consumer learning may result from things that marketers do, or it may result from stimuli
that have nothing to do with marketing. Either way, almost all consumer behavior is learned
(Perreault & McCarthy, 2002). People have a unique perspective on their surroundings. Many
people are thinking and feeling the same way about a specific occurrence. Nobody can perceive
or experience everything at a hundred percent. Learning is the result of past experiences altering a
person's mental processes.
Carter (2014) highlighted the role of emotions, decision-making processes, and the pursuit
of happiness in spending behaviors. This study collectively underscores the connection of
psychological factors in shaping spending behaviors. The decision to spend money is an
emotional process that involves assessing the advantages and disadvantages over a particular
16
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
period. Buying anything is certain to get an emotional response, the feelings experienced while
contemplating a purchase can also have an impact on the decision-making process and its result.
Sex, Age, Civil Status, and Monthly Income
According to (Roberts, 2000), females are more likely to exhibit spending behaviors,
particularly compulsive buying compared to men. Males and females have different priorities,
female students spend more on school supplies than male students. Females are more likely to
spend on appearance products such as clothing and cosmetics, whereas males tend to spend on
their basic needs. Different sex roles have been ascribed within society, influencing ideas of
financial responsibility and priorities.
Age is a very important factor when it comes to influencing behavior. It is usually said that
age brings wisdom. Age brings knowledge. Every age has its own state of mind, its own
perception, and its own characteristics. Every age has a different list of needs. It depends on an
individual’s age to decide whether a product is a need or not (Bansal, 2015). Relating age as a
factor to our study enhances our understanding of the diverse spending behavior within the ABM
student population. It helps us recognize the unique needs and influences specific to different age
groups, enabling us to develop effective strategies to promote responsible financial habits and
support their financial skills.
“An allowance is not an entitlement or salary. It is a tool for teaching children how to
manage money.” (Godfrey, 2013) Allowance is an amount of money given. It is a need for
teenagers where they can save up for their wants or daily needs. The weekly allowance of a
student reflects their financial situation and their ability to plan and prioritize their expenses.
Students who receive a higher allowance may have more opportunities to satisfy their wants, such
as entertainment, hobbies, or fashion, while students who receive a lower allowance may have to
17
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
focus more on their needs, such as food, transportation, or education. However, the amount of
allowance is not the only factor that affects the spending behavior of students. It shows how the
weekly allowance of a student influences their spending behavior in terms of their budget and
their management of their wants and needs.
According to (Bona, 2018), an individual’s spending behavior is greatly influenced by his
or her family. Family members play a key role on what products to buy and consume. We often
observe and follow the spending habits of our parents and other members of the family. Parents
play a key role in shaping not only the attitudes towards financial management but also the life
attitudes in general of their children. It is therefore critical that young individuals begin to learn
about finance during adolescence for them to have the best possible chance to be successful in
adulthood. Bona suggests that family members, especially parents, have a significant impact on
the spending behavior of individuals, as they shape their financial knowledge, attitudes, and
habits. The statement also implies that spending behavior is not only a matter of personal choice,
but also a result of social and environmental influences. Therefore, by examining the role of
family in spending behavior, you can gain a better understanding of the factors that affect the
financial decisions and well-being of ABM students.
Synthesis of the Review. Compared to related studies about the factors affecting spending
behavior, all of them investigate the Factors that Affect the Spending Behavior of ABM Students,
such as the Personal Factor, Cultural Factor, Social Factor and Psychological Factor.
As Kotler & Keller (2016) investigates, the consumer spending behavior is significantly
influenced by personal factors. It includes various elements such as age, stage of life cycle,
occupation, personality, lifestyle, and values. Age and stage of life have an impact on demand and
preferences, younger consumers frequently have different needs than older ones. A consumer's
18
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
decision and values also have a significant impact on whether they prioritize luxury, convenience,
or sustainability when spending. This study is similar to Bona’s claim that personal factors affect
the spending behavior of students. They are also affected due to their purchasing behavior which
makes them feel important and satisfied. People who are early exposed to financial concepts like
saving and budgeting are equipped to make a better financial decision.
Cultural factors can significantly impact spending behavior. As cultural norms, values, and
beliefs shape their attitudes towards spending behavior. Cultural factors such as societal
expectations, family influence, and cultural practices can influence their spending decisions and
financial habits. According to Lamb et al. (2011), This can help us to understand the cultural context
in which these students make their financial decisions and acknowledges the influence of cultural
factors on their spending behavior. This knowledge can inform the development and strategies to
promote financial management among students.
Lastly, as Juneja (2020) explained, social factors play an essential role in influencing the
buying decisions of consumers. Social factors are important in spending behavior because human
beings are social animals. We live in societies and are influenced by the people around us. Our
buying decisions are often influenced by our reference groups, family, and our role and status in
society. This study about the factors affecting spending behavior is similar to Juneja’s claim that
our reference groups, family, and our role and status in society are also the factors that affect our
spending behavior. It significantly impacts student personal money or allowance from the
different purchases a student makes due to specific factors.
This study differs from those mentioned above from Kotler & Keller, Bona, Lamb, and
Juneja's claims. This study focuses on the factors affecting the spending behavior of ABM
19
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
students. Personal, Cultural, Social, Psychological are the only factors that affect the spending
behavior of students that should be measured in this study.
This study is related to Castaneda’s claim. This study focuses on the factors affecting the
spending behavior of ABM students. The students' spending behavior is affected by Personal,
Cultural, Social and Psychological factors. Aside from these factors, students' purchasing habits
have an impact on their sense of importance and satisfaction. This study focuses on how these
factors affect their spending behavior. This study seeks to look deeper into how these factors
interact to influence students spending behavior.
20
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
CHAPTER 3
METHOD
This chapter presents the research design of the study, the participants, the research
instruments, and the research procedures used in analyzing the data of the study.
Research Design
This study utilized a quantitative approach employing the descriptive-survey technique.
The chosen research design was deemed appropriate because the study seeks to attain more
excellent knowledge and understanding about the Factors Affecting the Spending Behavior of
ABM Students. The researchers used quantitative methods to observe events regarding the
Factors Affecting the Spending Behavior of ABM Students, such as personal factors, cultural
factors, social factors, and psychological factors.
Participants
This research only includes 66 participants out of the 134 population of ABM students
in St. Paul University Surigao. The 66 participants were calculated from the sampling population
of ABM students in St. Paul University Surigao. The researchers chose ABM students,
considering that they study topics related to spending behavior. Participants were selected using
convenience sampling.
21
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
Research Instrument
The instrument that the researchers will use in gathering the data is a survey
questionnaire. It will undergo validation to ensure credibility and efficiency in data gathering.
There are two (2) parts of the questionnaire. The first part is about the profile of the respondents,
which includes sex, age, weekly allowance, and family monthly income. The second part is the
Factors Affecting the Spending Behavior of ABM Students in St. Paul University Surigao such as
personal factor, cultural factor, social factor, and psychological factor.
Data Gathering Procedures
A request letter will be sent to the basic education principal of St. Paul University
Surigao, to allow the researchers to survey the ABM students. After that, a letter of the request
and the basic education principal’s signed letter will allow the researchers to conduct the study.
The researchers will seek respondents who study in St. Paul University Surigao. Participants are
the ABM students in the said school. Afterward, the researchers will inform the respondents
about their research and the need to gather data from them. The researchers will ask permission
from the respondents if they would allow them to conduct the study. Then, questionnaires will be
disseminated to the respondents who will agree to participate in conducting the study. After they
answer the questionnaires, the researchers will retrieve, tally, tabulate, analyze, and interpret the
data.
22
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
Data Analysis
The quantitative data are subjected to the following statistical tools:
Frequency Count and Percentage Distribution. These will be used to describe the
participants' profiles regarding age, sex, weekly allowance, and family monthly income.
Mean and Standard Deviation. These will be utilized to determine the Factors Affecting
the Spending Behavior of ABM Students.
Analysis of Variance (ANOVA). When grouped according to their profile variables, this
statistical tool will be used to determine the significant difference in the Factors Affecting the
Spending Behavior of ABM Students.
Ethical Considerations
In conducting the study and gathering data, the researchers considered the following
ethics:
Confidentiality. Personal information about the participants of this study, such as their
age, weekly allowance, and family monthly income will be kept confidential by the researchers
and not revealed nor shared with others. This is a way to respect the participants' privacy, which
can bring extreme circumstances.
Informed Consent. The researchers will ask for consent from the basic education
principal, and the selected participants. A letter will be sent asking to allow the researchers to
23
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
conduct the study and explain the study's objectives. It will be approved, and the respondents
have the rights to ask the researchers questions concerning the study and withdraw after.
Honesty and Integrity. To collect good and accurate data, the researchers and the
participants will observe honesty and integrity to avoid complications that could affect the study.
Relationship with the respondents. Researchers will have a strictly professional
relationship with the respondents to collect good data. This was before and during the data
collection to avoid influences and tampered data that may affect the study conducted by the
researchers.
Originality of the Published Work. This method in which an author or researcher must
ensure that all works that will be published are original and free of any text, data, or phrases that
have been borrowed, distorted, or used without knowing where the information was collected,
such as concepts, procedures, results, or even the author's or publication's words.
24
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
References
GGI Insights. (2023). Levels of Education: A Comprehensive Understanding. The Importance of
Education. https://www.graygroupintl.com/blog/levels-of-education
Duflo, E., & Saez, E. (2002). Participation and investment decisions in a retirement plan: the
influence of colleagues’ choices. Journal of Public Economics, 85, 121–148.
https://doi.org/10.1016/s0047-2727(01)00098-6
Gaviría, A., & Raphael, S. (2001). School-Based Peer Effects and Juvenile Behavior. The Review
of Economics and Statistics, 83(2), 257–268. https://doi.org/10.1162/00346530151143798
Lưu, T. (2020). FACTORS AFFECTING THE SPENDING BEHAVIOR OF COLLEGE
STUDENTS.
https://www.academia.edu/44094122/FACTORS_AFFECTING_THE_SPENDING_BE
HAVIOR_OF_COLLEGE_STUDENTS
Qazzafi, S. (2020). Factors affecting consumer Buying Behavior: A conceptual study.
ResearchGate.
https://www.researchgate.net/publication/341407314_Factor_Affecting_Consumer_Buyi
ng_Behavior_A_Conceptual_Study
25
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
LeBaron, A. B., Holmes, E. K., Jorgensen, B. L., & Bean, R. A. (2020). Parental Financial
Education During Childhood and Financial Behaviors of Emerging Adults. Journal of
Financial Counseling and Planning, 31(1), 42–54. https://doi.org/10.1891/jfcp-20-00021
Bitangcor, Gialen, Hurtado, Sacupayo, Teatro. (n.d.). THE Effect OF School Expenditure ON
College Students - THE EFFECT OF SCHOOL EXPENDITURE ON COLLEGE -
StudOCU. https://www.studocu.com/ph/document/christ-the-king-college/bs-
accountancy/the-effect-of-school-expenditure-on-college-
students/71782961?fbclid=IwAR3jQNBtQDC_KLGU85Zozx6IuQYSUQlW0eZpzyzU4t
ohxrW4u2RUcXTR0Ko
Chang, L. Y., Lim, P. M., Teo, Y. Y., Yau, Y. Y., & Yeoh, Y. L. (2019). Spending behaviour
among university students: case of Universiti Tunku Abdul Rahman (Kampar).
http://eprints.utar.edu.my/3918/
Durmaz, A. P. D. Y. (2014). The influence of cultural factors on consumer buying behaviour and
an application in Turkey. Global Journal of Management and Business Research, 14(1).
https://globaljournals.org/GJMBR_Volume14/4-The-Influence-of-Cultural-Factors-
on.pdf
Lerner, J. S., Li, Y., Valdesolo, P., & Kassam, K. (2015). Emotion and Decision Making. Annual
Review of Psychology, 66(1), 799–823. https://doi.org/10.1146/annurev-psych-010213-
115043
26
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
Villanueva, Samantha. (2017) An Analysis of the Factors Affecting the Spending and Saving
Habits of College Students. Economics Student Theses and Capstone Projects. 36
Castaneda, P. (2021). FACTORS AFFECTING THE SPENDING BEHAVIOUR OF TOURISM
STUDENTS. TOURISM MANAGEMENT DEPARTMENT.
Juneja, P. (2020). Personal factors affecting consumer behavior.
https://managementstudyguide.com/personal-factors-affecting-consumer-behaviour.html
Durmaz & Gündüz. (2021) View of a THEORETICAL APPROACH TO SOCIAL FACTORS
INFLUENCING CONSUMER BEHAVIOR. (2021).
https://www.granthaalayahpublication.org/journals/granthaalayah/article/view/4390/4486
International Journal of Organizational Leadership (IJOL). (2019). The Effect of Family, Peer,
Behavior, Saving and Spending Behavior on Financial Literacy among Young
Generations. www.academia.edu.
Alekam, J. M. E., Salleh, M. S. B. M., & Mokhtar, S. S. M. (2018). The Effect of Family, Peer,
Behavior, Saving and Spending Behavior on Financial Literacy among Young
Generations. International Journal of Organizational Leadership, 7(3), 309–323.
https://doi.org/10.33844/ijol.2018.60258
27
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
Singh, S., Gupta, S., Jain, S., Kabra, S., & Gupta, S. (2020). STUDENT BUDGETING AND
SPENDING BEHAVIOUR.
https://ijcrt.org/papers/IJCRT2007222.pdf?ssp=1&setlang=en&cc=PH&safesearch=mod
erate
Barlis, N. A. (2023, August 11). Spending Behavior of Selected ABM Senior High School
Students in General de Jesus College.
https://ojs.aaresearchindex.com/index.php/AAJMRA/article/view/12495
Bona, J. T. C. (2018). FACTORS AFFECTING THE SPENDING BEHAVIOR OF COLLEGE
STUDENTS.
Kotler, P., & Keller, K. L. (2016). Marketing Management (14th edition). Shanghai: Shanghai
People’s Publishing House.
Obagbuwa, O., & Kwenda, F. (2020). Determinants of Students’ Spending Habits: a Case Study
of Students at a Premier University of African Scholarship. African Journal of Business
and Economic Research, 15(4), 25–43. https://doi.org/10.31920/1750-
4562/2020/v15n4a2
Dutig, Grantoza, Lualhati, Manibo. (2020). Spending Behavior of Business Administration
Students in University of - Studocu. https://www.studocu.com/ph/document/university-
of-batangas/financial-accounting-and-reporting-fundamentals/fourpuff-girls-chapter-
1/16205301
28
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
CURRICULUM VITAE
Personal Information
Name : James C. Antipasado
Date of Birth : August 20, 2007
Place of Birth : Dapa, SDN
Civil Status : Single
Religion : Roman Catholic
Nationality : Filipino
Parents : Michael F. Antipasado
Lilibeth C. Antipasado
Educational Background
Elementary : General Luna Central Elementary School - SSC
Secondary : St. Paul University Surigao
Strand : Accountancy, Business and Management
29
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
CURRICULUM VITAE
Name : Jeunesse Cyrille D. Baclayo
Date of Birth : June 19, 2007
Place of Birth : Surigao City
Religion : Grace Gospel Church of Christ T.C.M
Parents : Noel B. Baclayo
Janette D. Baclayo
Elementary : Immaculate Heart of Mary Academy - Kitcharao, Inc
30
Factors
FactorsAffecting
Affectingthe
theSpending
SpendingBehavior
BehaviorofofABM
ABMStudents
Students
CURRICULUM VITAE
Name : Marco Edwinno F. Montilla
Date of Birth : August 3, 2006
Place of Birth : Surigao City
Religion : Roman Catholic
Parents : Edwin F. Montilla
Mariecho F. Montilla
Elementary : Surigao City Pilot School
31

PR Final

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

PR Final

Uploaded by

Copyright:

Available Formats

St.

Paul University Surigao

FACTORS AFFECTING THE SPENDING BEHAVIOR OF ABM STUDENTS

A Research Paper Presented to

In Partial Fulfilment of the Requirements for

CHAPTER 1 PROBLEM AND ITS BACKGROUND 1

Statement of the Problem 6

Significance of the Study 7

Scope and Limitation of the Study 8

CHAPTER 2 REVIEW OF RELATED LITERATURE 10

Synthesis of the review 18

Data Gathering Procedure 22

Figure Title Page

1 Schematic Diagram of the Study 5

THE PROBLEM AND ITS BACKGROUND

significance of the study, scope and limitation, and definition of terms.

Education is a crucial aspect of personal and societal development, and as students’

educated in financial management are not immune to poor spending decisions.

process that shape ABM students spending habits.

perspectives based on their critical thinking.

population is crucial for identifying patterns in spending behavior.

influencing their budgeting and spending decisions.

impact their purchasing power and budgeting decisions.

Business and Management (ABM) students at St. Paul University Surigao.

much they spend and where they allocate their resources.

towards saving and spending, and their purchasing decisions.

desire for social acceptance or status.

Psychological factors. Psychological factors like impulsive buying, distinguishing needs

significantly influence the spending behavior of ABM students.

Profile of Participants in Factors affecting the

terms of: spending behavior in terms

• Sex • Personal Factors

• Age • Cultural Factors

• Weekly Allowance • Social Factors Proposed

• Family Monthly • Psychological Factors Recommendations

Figure 1: Schematic Diagram of the Study

Statement of the Problem

1. What is the profile of the participants in terms of:

1.3. weekly allowance; and

1.4. family monthly income?

2.1. personal factors;

2.2. cultural factors;

2.3. social factors; and

2.4. psychological factors?

when grouped according to the profile variable of the participants?

4. Based on the findings, what recommendations may be proposed?

At 0.05 level of significance, it is hypothesized that there is no significant difference in the

variable of the participants.

Significance of the Study

this endeavor is going to be additionally vital to the following:

children’s financial behavior.

It could be a guide to collect information and data in the society.

Scope and Limitation of the Study

spending behavior of ABM students.

REVIEW OF RELATED LITERATURE

perspectives on spending behavior, examining it from various angles.

promote responsible spending among students.

purchasing selections. Consumer behavior is shaped by the relationship between emotional

purchases by encouraging a feeling of financial responsibility and self-control. Early financial

According to Obagbuwa and Kwenda (2020), a person is classified as a poor spender if he

influences that shape their buying decisions.

understanding of the factors influencing the spending behavior of ABM students.

financial habits among ABM students.