A COMPARATIVE STUDY ON SPENDING BEHAVIOR BETWEEN GRADE 11 AND

GRADE 12 ABM STUDENTS IN UNIVERSITY OF CEBU

A Thesis
Presented to the Faculty
Of the Senior High School Department
University of Cebu Pri-Campus
Cebu City

CHRISTINE JANE A. DOMOSMOG

MARK FRANCIS SOLANTE
EJAY KEEM GONZALES
JAY LLOYD GEONZON
AMADEO TACULOD
MARIELLE BARETE
RAYMOND RECLA
RITCHEL ZATA
 TABLE OF CONTENTS

Title Page

Approval Sheet

Acknowledgement

Abstract

Table of Contents

List of Tables

List of Figures

Chapter

1 THE PROBLEM AND ITS BACKGROUND

Rationale

Theoretical Background

Statement of the Problem

Significance of the Study

Scope and limitation

Definition of Terms

2 REVIEW OF RELATED LITERATURE

Spending Behavior

Money Spent on

Student’s Budgeting Style

3 RESEARCH MOTHODOLOGY

Research Design
 Respondents of the Study

Instrument of the Study

Establishing and Validating Reliability

Statistical Treatment

4 FINDINGS, ANALYSIS, AND INTERPRETATION OF DATA

5 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATION

REFERENCES

APPENDICES

Appendix A: Transmittal Letter

Appendix B: Questionnaire

Appendix C: Location Map

CURRICULUM VITAE
 Chapter 1

THE PROBLEM AND ITS BACKGROUND

Rationale

This study aims to discuss about the Spending Behavior between Grade 11 and

12 ABM students in University of Cebu. This research focuses on the students on how

they handle their money. All people spend their money. Money is very essential to life

because it fulfills the needs of people nowadays through purchasing them. Students

have different ways on how they spend their money.

According to Christi Poshner (2018) Education is very costly and has a lot of

expenses to be bought and to be payed, including the needs of the students in order to

go to school. Some students work in different fast food chains or any kinds of work and

some are having scholarship.

Adolescents are the age group that are most likely to lack discipline on spending

their money productively. People in this stage of their life tend to buy unnecessary

things. However, some students put their money to good use by using their allowance

as capital to buy products or foods to be sold in the classroom and in the campus.

The purpose of conducting this study is to influence students to prioritize needs

over wants. To be knowledgeable and wise enough on spending the money they have

purposely. To minimize the behavior of spending so much money on things that are not

so important. But rather to save money and maximize the money they have in order to

have money whenever they need it the most to prevent financial problems.
Theoretical Background

These are two theories that is related in the study.

Social Learning Theory

According to social learning theory, spending behavior can be viewed as a

learned behavior often transmitted by parents and other influential individuals, and is,

therefore, predominantly, one that is passed from generation to generation. Spending

behavior and their patterns have been conceived as existing along a continuum running

between two poles. One pole represents the “holding on" behaviors or a preoccupation

with the acquisition and hoarding of money; the other pole, the obsessive spending

behavior (Lois carrier, CFP; David Maurice, CFP, 1998)

Commercialization Theory

Students all over the world spend in several different ways, but close

market research on student spending indicates that there are several common patterns

that can be seen. Spending habits in adolescents is changing drastically in the last few

years, but that change is almost uniform in all the metros of the world.

Commercialization has begun targeting students’ spending habits a very long time ago.

IFIM Students Lifestyle and Spending Habits, 2009)

According to a study conducted by a bank and financial institution, youths

fork over money to buy cellphone load, to play computer games at Internet cafes and to

buy cigarettes and alcohol. They also spend money on going out and on clothes and

accessories. (TJ Manotoc, ABS-CBN News, 2010) Teens hang out and shop. Teens are
active consumers in terms of the money they spend, as well as in the influence they

wield in their families and on societal trends.

Despite being raised in a period of rapid change; they display a remarkable

self-confidence in their judgment. (Tempo, 2010) A lot of the number of students seem

to wants what is the “in” trend, what people are doing or using “right now”. Most teens

will usually have one or two sources of income, either allowance from their parents or a

job. The answer to this question isn’t found by looking at the income of the family or

social status, it’s more a way of living and rearing that the parents have given their

children.

(Felipe, 2007) “Despite the Filipino teens’ having limited budget to spend,

low price does not necessarily make any brand a shoo-in for their patronage,” explained

Ming Barcelona, TNS Philippines Associate Research Director. “The TRU study

reminds us the mindsets, preferences and purchasing habits of Filipino teens, whether

on brand values, the latest product offerings, or on values and social issues should not

be ignored,” added Gary de Ocampo, TNS Philippines Managing Director.

Statement of the Problem

This study aims to determine the difference in Spending Behavior between grade

11 and 12, Arts and Design students in University of Cebu.

Specifically, the study aims to seek answer to the following questions:

1. What is the demographic profile of the respondents in terms of:

1.1 Grade level; and

1.2 Daily allowance

2. What is the Spending Behavior of the respondents in terms of:

2.1 Transportation;

2.2 Meal

2.3 Luxury and Leisure

2.4 Projects

2.5 Savings

3. Is there a significant difference between Grade 11 and 12 ABM students on their

spending behavior?
Significance of the study

This study will benefit the following entities:

Students. Through this study student may be guided on how they spend the money

wisely.

Parents. This research helps the parents to determine where and how their children

spend their allowance.

Teachers. To let them know the struggles and sacrifices of the students on spending

their allowance because of their requirements.

Future researchers. This study helps them to have a new knowledge and reliable

information regarding Spending Behavior of the students.

Scope and Limitation

This study is only focused on the difference between grade 11 and grade 12 of

ABM Students in University of Cebu on Spending Behavior. This research is limited

only for 30 respondents and conducted at University of Cebu-Pri Campus, Cebu City

during the 1st semester of the school year 2018-2019. The respondents of the study are

grade 11 and grade 12 ABM students either male or female. This is used in order to

formulate an effective study regarding the spending behavior of the respondents.

Definition of Terms

For better understanding in this study the following terms are defined by searching the

meaning of certain word in the dictionary.

Allowance. Amount of money that is given to someone regularly on fear of a specific

purpose.

Behavior. The way a person acts or behaves.

Spending Behavior. Act of spending money, a money satisfaction necessary and

required.
 Chapter 2

REVIEW OF RELATED LITERATURE

This chapter presents the related ideas that is related to the topic. Some authors

explained the Spending Behavior, advantages and disadvantages of using money in

different way.

Spending Behavior

The spending behavior of the students today is rather different from before

leaving a question of what the spending factors of the students could be to be.

According to Monte Carlo (2018), there are three types of spending behavior:

aggressive, cautious, conservative. Spending aggressively means saving little amount

of money and spend it in bad days/years. Spending cautiously means spending the

money that you have and expecting that the money will return to you. Spending

conservatively means spending the money that you have but expecting that there will be

no return.

In every money that have been spent, people will always get a zero balance and

will always expect that they can have the money again throughout the days. Spending is

always risky, but people can gain money again by finding ways through working and

spending it in a wise and useful way.

According to Chalise & Anong (2017) spending will cause you stress. Spending

more than the allowance that you have will cause you more like three times of financial
stress. But being in good health and having the allowance regularly will lessen the

stress

Spending big amount of money that will cause you zero balance throughout the

day will give you too much stress. If you can manage not to spend, you can always save

to spend when you are in need. This will help you lessen your wants and focus on what

you need.

Transportation

According to Bray (2015), paying for transportation may not sound like a major

barrier, the average full-time community college student spends $1,760 per year on

transportation, which is nearly half of national average tuition for such a student.

Meal

People always tend to buy foods. But be wise when you are going to spent

money for food because it may cause financial problems especially nowadays that the

price of products that you are using are increasing.

According to Madormo, R.N., MPH and Dixon (2015), spending money on food

when overspending on food like mindless trips to the grocery store with no plan, eating

out, every weekend, and food subscription going unused. Food spending can quickly

creep up without you noticing and if you’re not careful, it can start to take over your

finances.
Luxury & Leisure

Most people want something good for their selves. Some of them are too much

addicted to something and buy that thing even they don’t have enough money. This

happens sometimes because these things will only make them happy. Some people will

say it is their happiness.

Project

Savings

According to Fontinelle (2017) saving money is worth the effort. It gives you

peace of mind, it gives you option and the more you save, the easier it becomes to

accumulate additional savings. Saving money can help you become financially secure

and provide a safety net in case of an emergency.

 Chapter 3

RESEARCH METHODOLOGY

This chapter deals with methods undertaken to achieve the goals of the study. It

describes the research design, respondents, instruments, establishing and validating

reliability, and statistical treatment used.

Research Design

This study used a Comparative Research Design which is often used in the early

stages of the development of branch of science. The researchers choose comparative

design to know the difference and the significant of different groups. According to Routio

(2007) compilation is one of the most efficient methods for explicating and utilizing tacit

knowledge of tacit attitudes.

Respondents of the Study

The researchers have selected students of ABM strand that composed of 15

grade 11 and 15 grade 12 students in University of Cebu Pri-Campus. Random

Sampling in Lottery Method is used in selecting the needed respondents. According to

Panira (2012) random sampling in Lottery method means every member is assigned a

unique number. These numbers are put in a jar and thoroughly mixed. After that, the

researcher picks some numbers without looking at it and those people are included in

the study. The selected 15 numbers from grade 11 and 15 numbers from grade 12 will

be the respondents of the study.

Instrument of the Study

This research provides a survey questionnaire-checklist instrument that delivers

the questions to students for them to understand easily the study. The questionnaire is

consisting of twenty-four (24) questions in different sections. The researchers used

Likert’s Scaling method to determine the background and experiences of the students

on Spending behaviors. This method help the researchers to determine the difference

and the significant on spending behavior of the students. The students or respondents

will receive the questionnaire when they enter the room.

Data Gathering

The instrument will be validated by our instructor Miss Phoebe Anga and the will

conduct a survey at University of Cebu Senior High School. This process will be made

to ensure the validity and effectiveness of the questionnaire. We will conduct a survey

after their approval.

Statistical Treatment

To interpret the data effectively, the researcher will employ the following

statistical treatment. In establishing the objectivity of research findings, we must find out

the frequency, percentage, mean and standard deviation. Frequency is the number of

the respondents in this study and getting the percentage of each frequency. Mean
 Chapter 4

FINDINGS, ANALYSIS, AND INTEPRETATION OF DATA

This chapter presents the findings, analysis, and interpretation of data gathered

by the researchers that is carried out based from the result of the survey. Furthermore,

the info. That is shown is arranged in tables so that the readers could easily understand

and obtain coherent flow of information.

Student`s Profile

One of the factors that can help us identify the different behavior of student

towards on spending money is where the student`s grade level and daily allowance.

Table1. Grade level Frequency

Grade level Frequency Percentage

Grade level 11 15 50

Grade level 12 15 50

Total 30 100

Table 1.1 shows the distribution of the respondents according to their grade level. It

indicates that the number of the respondents who participated in our study are grade 11

students which has a frequency of 15 (50%) and grade 12 students which also has a

frequency of 15 (50%).

Table 1.2 Daily Allowance

Daily Allowance Frequency Percentage

 30-50 pesos 13 43.3

51-100 pesos 13 43.3

101-150 pesos 1 3.3

151-200 pesos 1 3.3

201 pesos & above 2 6.7

Total 30 100.0

Table 1.2 shows the daily allowance of the respondents.

30 pesos to 50 pesos and 51 pesos to 100 pesos have highest total frequency total of

13 and highest percentage total of 43.3 and the lower daily chosen allowance of the

respondent total of 201pesos and above but it have a second to the highest percentage

total of 6.7 and the lowest daily chosen allowance of the respondents is 101 pesos to

150 pesos and 151 pesos to 200 pesos have total of 1 frequency and the lowest

percentage of 3.3.

Table 2. Spending Behavior of Grade 11 and Grade 12

Indicators Mean Standard Deviation Interpretation

Transportation 1.3267 .66537 Low

 Meal 2.0000 .62588 Moderate

Leisure 1.6800 .44131 Low

Projects 1.5667 .61914 Low

Savings 1.5267 .87806 Low

Average 1.6200 .64595 Low

Table 2. Shows the total mean of each Spending behavior indicators. The first

indicator which is Transportation have the lowest Mean (1.3267) and the second

indicator which is Meal have the highest Mean (2.0000). The total Mean of all the

indicators given above is (1.6200).

Ranges for the Weighted Mean

Range Description

3.25-4.00 Extremely High

2.50-3.24 High

1.75-2.44 Moderate

1.00-1.74 Low

Table 3. T- Test Difference of Grade and Spending Behavior

Variables T-Value P-Value Interpretation

Grade and .457 .656 There’s no

Spending Behavior significant

difference
Table 3. Shows the difference of Grade and Spending Behavior.
The t-value has (.457) and the p-value has (.656) and there is no significant difference

between Grade 11 and Grade 12 in terms of Spending Behavior because that is greater

than 0.05, by using the Independent Sample Test in identifying the result.

CHAPTER 5

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

This chapter presents the summary or the research work undertaken, the

conclusions drawn and the recommendations made as an outgrowth of this study. This

study is on the spending behavior of Grade 11 and Grade 12 ABM students in the

University of Cebu – Pri Campus.

 On the Grade 11 and Grade 12 students’ profile were name, grade level, and

amount of daily allowance.

Summary of Findings

The salient findings of the study are as follows:

1. What is the demographic profile of the respondents in terms of:

1.1 Grade level

The respondents were from Grade 11 and Grade 12, with 15 respondents from

each Grade level.

1.2 Daily allowance

The respondents have various daily allowances; 13 respondents have a daily

allowance of 30 – 50 pesos, 13 respondents have a daily allowance of 51 – 100 pesos,

1 respondent has a daily allowance of 101 – 150 pesos, 1 respondent has a daily

allowance of 151 – 200 pesos, and 2 respondents have a daily allowance of 201 pesos

and above.

2. What is the Spending Behavior of the respondents in terms of:

2.1 Transportation

The respondents’ spending behavior on Transportation is Low with a weighted

mean of 1.3267.

2.2 Meal
 The respondents’ spending behavior on Meal is Moderate with a weighted mean

of 2.0000.

2.3 Luxury and Leisure

The respondents’ spending behavior on Luxury and Leisure is Low with a

weighted mean of 1.6800.

2.4 Projects

The respondents’ spending behavior on Projects is Low with a weighted mean of

1.5667.

2.5 Savings

The respondents’ spending behavior on Savings is Low with a weighted mean of

1.5267.

3. Is there a significant difference between grade 11 and 12 ABM students on

their spending behavior?

Conclusions

Based on the findings of the study, the following conclusions are drawn:
 1. The researchers conclude that despite having different amounts of daily

allowances, the respondents have an almost identical spending behavior on the

different above mentioned variables.

2. The researchers conclude that the respondents, whether they are from Grade 11

or Grade 12, spend more on Meals than any other variable mentioned above.

3. The researchers conclude that the respondents spend their money almost evenly

on Transportation, Luxury and Leisure, Projects, and Savings.

4. The researchers then conclude that there is no significant difference in spending

behavior between Grade 11 and Grade 12 ABM students.

Recommendations

Based on the findings and conclusions presented, the following

recommendations are suggested:

1. The researchers recommend that the students should spend their daily

allowance more on their savings.

Appendix A
TRANSMITTAL LETTER
September 03, 2018

PROF. ABELARDO T. TEJO JR.

Principal, SHS-Department
University of Cebu Pri-Campus
J. Alcantara St. Cebu City

Sir
Good day!
We the students from grade 12 ABM 5P- Zeal would like to ask for your permission from
your high office to allow us to conduct a survey in University of Cebu PRI-Campus. This
is line of our study entitled “A COMPARATIVE STUDY ON SPENDING BEHAVIOR
BETWEEN GRADE 11 AND GRADE 12 ABM STUDENTS IN UNIVERSITY OF CEBU”.
We select the ABM students because they can relate in this study.
We will be conducting a survey to some selected students from Grade 11 and Grade 12
ABM Strand. This is hard for the researcher since they are not the same track we hope
that the selected respondents will participate in our survey. We assure to your high
office that we will conduct a survey only after your approval.
We are happy for your support in this matter. Thank you and God bless!
Respectfully Yours
MARIELLE BARETE
Research Leader
Noted by:
MS. PHOEBE ANGA
Research 2 Teacher
Approved by:
PROF. ABELARDO T. TEJO JR.
Principal, SHS-Department
Appendix B

Survey Questionnaire

Dear Respondents:

As a part of the fulfillment of the requirements of our Research 2, we are conducting our thesis
entitled, “A COMPARATIVE STUDY ON SPENDING BEHAVIOR BETWEEN GRADE 11 AND
GRADE 12 ABM STUDENTS IN UNIVERSITY OF CEBU”. The following information that we will
take from you will remain highly confidential and will only be utilized for research-related
distinctions.
Conformed: I do hereby provide honest responses for each item given in order to establish
validity and reliability.

Name: Signature: .

Grade & Section: Daily Allowance: .

Gender: .

Instructions: Please respond to each of the following statements by putting a check mark in your
answer of choice

TRANSPORTATION Never Rarely Sometimes Often Always

I have a regular
school service which
eliminates my
transportation
expenses
I live in a dorm or at
a house which is just
a work from school
I spend 50% and
above of my
allowance for
transportation
I spend less than
50% of my
allowance for
transportation
I take an alternative
route or mode of
transportation that is
less expensive
MEAL Never Rarely Sometimes Often Always
I bring packed lunch
or food to save
allowance
I bring packed lunch
or food because it is
not provided in my
allowance
I prefer to eat
outside the school
for more affordable
choices of food
I eat my meal at
home before I go to
school for less
expenses
I spend 40-50% of
my allowance for
food
LUXURY & LEISURE Never Rarely Sometimes Often Always
I spend my extra
time for luxury and
leisure e.g. going to
the mall, watching
movies at the
cinema, playing
online games, etc.
I save 10-30% of my
money to buy the
things that I want
and in case I might
need it
I prefer to stay at the
library and read
books during vacant
I prefer to go home
after class to avoid
unnecessary
expenses
I spend 10-30% of
my allowance for
leisure
PROJECTS Never Rarely Sometimes Often Always
I allot 10% of my
allowance for
photocopy
Having projects or
researches
increases my
allowance for
projects
My allowance is
enough to cover my
projects
I spend15% of my
allowance for my
projects
SAVINGS Never Rarely Sometimes Often Always
I allocate 10-20% of
my allowance for
savings
I join ease-up
system or
“paluwagan”
I lend part of my
allowance rather
than spending it
I open bank account
or have a treasure
box where I can
deposit my savings
I save money for
emergency
purposes or just in
case I might need
extra money

Appendix C
Location Map