+The Relationship Between Money Allowance and Budgeting Skills of ABM Students in

Holy Nazarene Christian School 2023-2024

Casupang Neil, Jr D.

Abeleda Avril Ann C.

Reyes, Herald M.

Cuizon, Princess Niña S.

Tiongco, Wayne Joseph V.

Bayan, Nikka Kate S.

Lucay Rainnel A.
Introduction

Given how quickly the field of education is evolving, it is critical to comprehend students'

financial skills and habits. This study aims to investigate the complex relationship between

students' financial allowances and their development essential budgeting skills. The study

aims to bring light on young minds' financial skills by focusing on students of Accountancy,

Business and Management (ABM) students. This could have an impact on these students'

future financial responsibility and stability. Money management is a skill that can empower

people and open doors to a secure future in the rapidly changing economy of today.

Considering the importance of this information, this study explores the circumstances of

ABM students at Holy Nazarene Christian School. The research looks for important patterns

in the relationship between their ability to effectively budget and the amount of money they

get as allowances. The results of this study might help in our understanding of students'

financial habits and offer insightful information to parents, legislators, and educators as well.

Giving students strong budgeting skills is essential in this day of economic uncertainty and

swift technological progress. This will help them handle the financial world's complexity

with assurance and competence. The goal is not only to identify the current situation but also

provide practical solutions that can enhance the budgeting skills of ABM students. By

bridging the theory-practice gap, the research seeks to offer useful recommendations that can

have a positive impact on current support systems and the educational approach. It is

expected that as we embark on this exciting journey, the study's findings will make

significant contributions to the larger discussion about financial education and provide

direction for raising a generation of financially responsible and literate individual.

Background of the Study

As stated by Miriam Caldwell (2019), other mistake that people make was by classifying

their wants as needs. When something was classified, as a need, they do not consider cutting

back on it as much at first. They can also lump needs and wants into the same category,

which can make it harder. For example, food was considered a need, eating out a want. Their

necessities are needs, food, shelter, and power. Transportation within reason can be a need

depending on where you live. In addition, needs were something that the people must have or

need for survival and wants refers to something which is good to have, but not essential for

survival. That was a common mistake that the people do when they were spending, they don't

classify their needs and wants. Also, students were spending their money on many expenses

but sometimes they just focus on spending their money on recreational activities. According

to Godfrey (2013), good money management skills are the process of budgeting, saving,

investing, spending the cash usage. Though it is not something we are born with, they are

acquired over one’s lifetime through many successes and some failures as well. “An

allowance is not an entitlement or a salary. It is a tool for teaching children how to manage

money.” As cited by Caldwell (2017), allowance is an amount of money given. It is a need

for teenagers where they can save up for their wants or daily needs. Its history concerns the

development means of carrying out transactions involving a medium of exchange. Money is

any clearly identifiable object of value that is generally accepted as payment.

There is a motion that is working on teaching basic personal finances to high school students

before they graduate. A budget is clearly the key to succeeding financially. What budgeting

does is clearly show you how you allocate your money and present you the choices on what

stuff to enjoy – based on your financial limitations. It will save you the grief of overspending

and being too much in debt. Budgeting does not stop you from enjoying stuff; it ensures that

you enjoy stuff when you want it.

Although budgeting is indeed more work, it pays off with many life-enhancing benefits: (1)

Gives you control to your money; (2) Keeps you focused on your money goal; (3) Makes you

aware what is going on with your money; (4) Helps you organize your spending and savings;

(5) Makes you decide in advance how your money will work for you; (6) Enables you to save

for expected and unexpected costs; (7) Enables you to communicate with your significant

others about money; (8) Provides you with an early warning for potential problems; (9) Helps

you determine if you can take debt and how much; (10) Enables you to produce extra money.

research conducted by Wong (2011) entitled “Practices of saving among students” indicated

that saving for retirement period was students' priority. Majority of students were aware that

it is very extremely important to save for retirement and that the age option of retirement give

students clearer understanding to save at the earlier age and not saving only when they

become employees. This study seeks to know the relationship between money allowance and

budgeting skills of senior high school students. The researchers conducted this study to

provide information that can benefit for the respondents and students in improving their skills

about budgeting. Knowing budgeting can be good for the students as they can be more

responsible in spending their money wisely.

Statement of the Problem

By studying how ABM students use their money allowances and seeking to determine their

spending and saving patterns, this study primarily aims to better understand the financial

behaviors of ABM students. It also evaluates the students' budgeting skills, including their

capacity to establish and follow budgets, make wise financial decisions, and adjust to shifting

financial circumstances. By analyzing the data, the study seeks to identify relationships

between the amount of money distributed and the standard of budgeting abilities, possibly

pointing to a substantial influence of allowances on financial management skills. The study

ultimately intends to influence financial education activities to improve the financial literacy

and decision-making skills of ABM students, particularly if specific aspects like allowance

amounts prove influential.

Questions:

1. How does the money allowance given to ABM students in Holy Nazarene Christian School

impact their budgeting skills?

2. What are the common financial challenges faced by ABM students in Holy Nazarene

Christian School?

3. How do ABM students in Holy Nazarene Christian School manage their money allowance

and allocate it to different expenses?

4. What factors contribute to the lack of budgeting skills among ABM students in Holy

Nazarene Christian School?

5. What are the potential long-term consequences of poor budgeting skills among ABM

students in Holy Nazarene Christian School?

Theoretical Framework
Self Control Theory by Hopwood in 1976, explains that this is down to student's behavior but

this can be helped by a suitable system of rewards, e.g. performance related pay. The object is

to keep costs under control and, if possible, complete the project under budget. The thought

of this theory is in order for the students to know on how to control their self on not spending

their money or allowances to unnecessary stuff. Motivational Theory by Kay Hofstede in

1967, explains that in order for the students to save or budget their allowances they must be

motivated. The theory also explained that in saving, it's a must to set a particular goal that

will motivate you to achieve your budgeting plan. Budgeting Planning Phase Theory by

David Carnis in 2017, says that the overall budget planning phase differs from the costing

phase in that the budget planner takes a broader view. You must identify specific resources -

such a labor availability or sources of financing -- that are necessary for each phase of a

project. A budget planner also looks

Conceptual Framework

INPUT PROCESS OUTPUT

•Collection of data through • Understanding what sorts

•Students Profile questionnaire and statistical budgeting skills of their
-Age statement. money allowances the
-Gender •Conducting a Google forms students are capable of, as
-Academic Year and Strand to be filled in by the students. well as to know what its
•Organizing the answers of relationship to each other
•Determining the student the students who filled in the will be.
money allowances. Google forms to determine •Analyzing their strategy of
•Knowing their Budgeting the relationship between their spending and saving
skills. money allowance and patterns.
budgeting skills of the ABM •Provide and Raise
students. awareness about the effects
of this topic.
•Will use to serve this topic
for future researchers.

Assumptions and Hypothesis

Assumptions:
1. The participants in the study are ABM students in Holy Nazarene Christian School during

the academic year 2023-2024.

2. The students have varying levels of money allowance, which will be categorized into low,

moderate, and high allowance groups.

3. The students have varying levels of budgeting skills, which will be assessed using a

standardized test or survey.

4. The study will control for other factors that may affect budgeting skills, such as age,

gender, and socioeconomic status.

Hypothesis:

1. There is a positive correlation between money allowance and budgeting skills among ABM

students in Holy Nazarene Christian School. Specifically, it is hypothesized that students with

higher money allowances will have better budgeting skills compared to those with lower

allowances.

2. The relationship between money allowance and budgeting skills will be moderated by

other factors, such as age, gender, and socioeconomic status. Significance of the Study: This

study aims to provide insights into the role of money allowance in developing budgeting

skills among students. The findings of this study can help educators and policymakers

understand the importance of financial education and budgeting skills in the academic

curriculum. Moreover, the study can help parents and guardians understand the impact of

money allowance on their children's budgeting skills and make informed decisions about

their children's financial education.

Scope and Delimitation

This study focuses on money allowances and budgeting skills of the ABM students. This

study will cover ABM students' experiences with budgeting their money allowances. Also,

the researchers will include the activities to increase the financial literacy and decision

making of the ABM students. This study will also determine and discover the relationship

between the amount of money distributed and the standard of budgeting abilities. This

research will not cover any personal funds that the ABM students already have. This study

will be conducted in Holy Nazarene Christian School. The respondents that will be selected is

the ABM students. Moreover, they will be answering close-ended questionnaires via google

docs and one-on-one interviews. Through the strategy, the researchers will be able to

determine the relationship between money allowance and budgeting skills of ABM students

in Holy Nazarene Christian School 2022-2023.

Significance of the Study

This study aims to provide insights into the role of money allowance in developing budgeting

skills among students. The findings of this study can help educators and policymakers

understand the importance of financial education and budgeting skills in the academic

curriculum. Moreover, the study can help parents and guardians understand the impact of

money allowance on their children's budgeting skills and make informed decisions about

their children's financial education.

Definition of Terms

Financial Skills- Financial skills refer to the knowledge, abilities, and competencies related to

managing money and making sound financial decisions.

Financial Habits- Financial habits are the routines and behaviors individuals adopt in their

daily lives regarding money management.

Complex Relationship- A complex relationship are multiple factors and variables involved in

how students' allowances and their budgeting skills are interconnected.

Secure Future- A secure future implies having financial stability and the resources necessary

to meet one's financial needs and goals.

Legislators- Legislators are elected officials who are responsible for making and passing laws

at the government level.

Theory-Practice Gap- The theory-practice gap refers to a disconnect or disparity between

theoretical knowledge and practical application.

Disseminating Information- The process of spreading or distributing information, knowledge,

or data to a wider audience.

Interrelate- To establish a connection or relationship between different elements, concepts, or

variables.

Survey Tool- A tool or instrument used to collect data from individuals or groups, typically

through a structured questionnaire or survey.

Statistical Statement- A formal declaration or presentation of numerical data and statistical

analysis results.

Standardized Test- They are used to measure individuals' knowledge, abilities, or skills, and

their results are typically compared to a standardized scoring system. Socio Economic Status-

SES is often used to understand and analyze disparities in health, education, and other aspects

of life.

Motivational Theory- It explores the factors and forces that influence motivation, including

internal and external incentives.

Costing Phase- The costing phase is a stage in project management or financial planning

where the estimated costs associated with a project are determined.

Broader View- Taking a broader view means considering a more comprehensive perspective

or a wider scope.

Labor Availability- Labor availability refers to the presence and accessibility of the

workforce or labor pool for a particular job or project.

Allocate- is to set aside a certain amount of money for an expense

 CHAPTER II

Foreign Literature

According to Ishak, Irny Suzila (2020), Budgeting help the student to organize their

spending and saving. However, previous research report that university students have

difficulties juggling with the cost and expenses at university. The objective of this project is

to develop a student budgeting system that enabled university students to manage their

money more efficiently. For this purpose, the research has used Universiti Selangor student

as a case study. A survey had been conducted with UNISEL student to get their perceptions

about the development of the budget system and to get the requirement of the student

budgeting system. Ninety-five respondents had responded to the survey. The survey had

identified functions that should be included in the system. The system had been develop

using Rational Unified Process (RUP) methodology. The system provides information about

the student achievement in reaching their target to spend within budget. The student

budgeting system is expected to help the student to plan their fund, budget effectively and

view their target saving achievement.

Ishak, Irny Suzila. (2020).

Local Literature
The academic performance of the students is very important to both teachers and students as

this reflects the effectiveness of the teaching-learning process. However, effective allowance

budgeting which falls outside the corners of the normal teaching-learning process is deemed

significant for the students because this will benefit them not only for sustaining their

everyday needs in school but also for helping them be more prepared in the proper handling

of finances. A qualitative method was used in the study. Using a descriptive research design,
it focused on the assessment of Grade 12 Accountancy and Business Management students

and the effects of students' allowance budgeting to their academic performance. There were

four variables identified to be affected by allowance budgeting, such as transportation, food,

projects, and savings.

Contante, E. R.., Toscano, E. M. G.., Domingo, E. R.., Almeniana, E. B.., Rose, M. J. B.., &

Tamon, C.-J. S. (2019).

Foreign Literature

According to Aung, Nwe Ni, and Hla Hla Mon (2020), Budgeting habits are important for

every person. By the time students are in universities, at least they oversee their own

finances. How well they manage their personal budget may indicate how well they will

manage their company’s budget on the job. This study intends to analyze budgeting habits of

undergraduate students in Yangon University of Economics. The study used descriptive and

analytical methods and conducted a questionnaire survey on a sample of 375 undergraduate

students. It was found that the budgeting habits of students are different based on gender. The

study also showed that the significant portions of their budget are used to spend on shopping,

eating out, mobile phone expenditures, attending training for their career progress, traveling

on short trip with their friends and transportation. Most students lack proper budgeting habits.

The study suggested that the students should know how much they can spend and how they

can improve their budgeting habits.

Aung, Nwe Ni, and Hla Hla Mon. "Budgeting habit behavior of undergraduate students in

Yangon University of Economics." Journal of the Myanmar Academy of Arts and Science

18.8 (2020).
Local Literature

Budgeting is a plan that is used to decide the amount of money. Good budgeting is spending

less than you are earning as you plan for your financial goals. It is also aprocess of creating a

plan to spend and invest your hard-earned money wisely to meet your personal financial goal.

It should not be a mathematical exercise that we think we have to endure; rather, it is the

result of self-assessment of our relationship with money and a necessary road map to steer

toward to higher standard and quality of living. This study aimed to improve the budgeting

skills of students to know how to budget money the right way. Following a budget or

spending a plan will also keep them out of debt or help their way out of debt. Budgeting

shows all the monthly cash inflows and outflows, which will allow them to achieve financial

goals by helping them identify spending and saving habits. Given that budgeting allows us to

create a spending plan for our money, this study used a qualitative descriptive research

design. The researchers created and served survey questionnaires that will help us gain

insights into the study.

Rosales, B. A.., Cea, M. L.., Castaritas, L.., Larisma, B.., Concepcion, E. and Tamon, C.-J.

(2020)

Local Literature

Financial literacy is the education and understanding of knowing how money is made, spent,

and saved. Students should understand how money works on their hands, how to spend

money with their decision, and how to spend the money on the right things. We used

Business Finance Subject to enhance the student’s financial literacy. The primary purpose of

conducting this study was to make Grade 12 Accountancy, Business, and Management

students financially literate. The researchers used the survey method because this is the most

applicable method to use in gathering data. The design used was descriptive design because
the researchers observed that students find it hard to budget their allowance because they

spend a considerable amount on unnecessary things.

The researchers also used convenience sampling to select 50 Grade 12 students from the

Accountancy, Business, and Management Strand. The researchers also made and distributed

50 questionnaires to determine the things that they may help the students with to be

financially literate. Based on the findings of the study, the factors influencing the financial

status of the students were social media/media and their group of friends. The students cannot

manage their allowance properly because they always hang out with their friends, buy things

that they do not need, and spend a considerable amount of money on trending products.

Therefore, the study showed that Business Finance lessons can help the students improve

themselves by becoming financially literate. Spending money with a plan, avoiding debt,

learning how to save money, making decisions before spending, controlling themselves to

spend a considerable amount of money, and being wise are the things that must be learned by

the students.

Condino, R. V., Del Monte, A.., Rodriguez, J.. and Tamon, C.-J.. (2020)

Foreign Literature

Following a budget planner can help the students to stop worrying about their expenses such

as food, transportation, and other school expenses. The purpose of this study is to motivate

Grade 12 ABM students to allocate their allowances the right way and share them with the

next generation. This study used the survey method to gather the needed information. The
researchers also used a descriptive research design. The respondents of the study were 50

Grade 12 ABM Students who were selected through convenience sampling.

Based on the result of the study, using a weekly budget planner positively affected the budget

management of Grade 12 ABM students in terms of food allowances 60% of their allowances

were allocated to food and uncontrolled buying of food that was not according to their

budget, transportation allowances 20% of their allowances go to school practices and riding

expensive public vehicles, and other school expenses the mismanagement of allowances

resulted in a budget shortage. Based on the summary of the findings, the following

recommendations were made by the researchers on how Grade 12 ABM students should

allocate their allowances in terms of food allowances control what food they will buy, and

transportation allowances this study suggests applying a budget planner to have allowances

on unexpected practices, and other school expenses the students are suggested to apply

budget planner to avoid unexpected expenses.

Salonga, J.., Cahilig, A.., Endrina, J. C., Bayno, J., Ojales, L. J.., and Tamon, C.-J.. (2020)
Local Literature

The level of daily allowance provided to students has a significant impact on their satisfaction

with financial support. Students rely on this allowance to cover their expenses and meet their

basic needs. A higher daily allowance allows students to have more financial freedom and

flexibility, enabling them to better focus on their studies and personal development. On the

other hand, a lower daily allowance may lead to increased financial stress and difficulties in

managing their finances. Therefore, the satisfaction of students with their financial support is

closely tied to the level of their daily allowance. Additionally, a student who is content with

their financial aid is more self-assured, tolerant, and less likely to experience stress due to

their enhanced personal wellbeing. The results of this study indicate that further research

should be done on students who are creating their own budgets to improve their abilities and

raise their degree of satisfaction with financial help. Jerald, M. (2020b).

Foreign Literature The

implementation of a budgeting course in personal financial planning among students

majoring in Personal Finance is crucial for their future success. By incorporating a budgeting

course into their curriculum, students will develop essential skills and knowledge needed to

effectively manage their finances. This course will cover topics such as creating a budget,

tracking expenses, setting financial goals, and making informed financial decisions. Students

will also learn about the importance of saving, investing, and planning for unexpected

expenses. Through hands-on exercises and real-life case studies, students will gain practical

experience in budgeting and financial planning. Overall, the implementation of a budgeting

course will equip students with the necessary tools to achieve financial well-being and make

informed financial decisions throughout their lives.

Susanto, F. D., & Alimbudiono, R. S. (2018).

Foreign Literature
It is impossible to separate peoples' spending patterns from their daily lives because of the

swift evolution of the fiercely competitive global corporate environment. As a result,

decision-making has grown more difficult (Stym, 2020). Because of their exposure to

marketing initiatives, internet service providers, and electronic buying options, students are

affected by this problem (Stym, 2020). A pattern of behavior known as terrible spending

habits involves an inability to control ongoing expenses. The social learning hypothesis

postulates people learn spending habits from their parents and other influential people

(Luelle, 2018). According to Ollau et al. (2020),

Foreign Literature

Nowadays, a lot of universities students tend to live independently whether is the hostel or a

rental house. Most students would manage their financial themselves and they get their

financial help from either National Higher Education Fund Corporation (PTPTN),

scholarships, their own saving or family funding. Several previous studies have been

conducted based on students financial and some of it are on students' awareness on their

financial management. There are studies on students spending expectations and habits, also

the relationship between monthly allowance and their average grade. Hence, a study on

relationship between monthly allowance and their daily spending is done. This research took

place in Universiti Teknologi Mara Jengka, Pahang (UCPh) where the researchers conducted

a type of Quantitative Survey Research of gathering data. There is total 152 students that

were involved in this research and they were from the various faculties in UCPh. After

running the data gathered through IBM SPSS Statistics 25 Software, by using the Pearson

correlation approach, it can be concluded that there is no significant relationship between the

monthly allowance and their daily spending.

Nurul Nadiya Abu Hassan, Nurmarni Athirah Abdul Wahid Randwick International of Social

Science Journal 4 (4), 785-794, (2023)

Foreign Literature

The K to 12 program cover kindergarten and 12 years of basic education (six years of

primary education, four years of Junior High School and two years of Senior High School

(SHS) to provide sufficient time for mastery of concepts and skills, develop lifelong learners,

and prepare graduations for tertiary education. As I say, under this K to 12 Program is the
Senior High School. Senior High School (SHS) covers the last two years of the K to 12

program (Grades 11 and 12).

These two additional years will equip learners with skills that will better prepare them for the

future whether it be employment, entrepreneurship, skills development and higher education

(college). (doncarlocavinaschool. com) In SHS, there is academic track and TVL track. One

of the Strand offered under the TVL track is Home Economics. The life of Home Economic

learners is hard because you must budget your allowance. The average allowance of Home

Economic learners is from 100 to 150, because of this learner need to budget their allowance

wisely. Budgeting is the process of creating a plan to spend your money. It allows you to

determine in advance whether you will have enough money to do the things you need to do or

would like to do. Since budgeting allows you to create a spending plan for your money, it

ensures that you will always have enough money for the things you need and the things that

are important to you. Following a budget or spending plan will also help you out of debt if

you are currently in debt (mymoneycoach. com). This study aims to determine the strategies

used by Home Economic learners of Pavia National High School in budgeting their

allowance in a week.

Foreign Literature

Money is involved in many things and situations around the world. Every person had

experienced, at least once, to see and to hold money, so it is a big part of everyone's life. In

the form of a metal coin or a piece of paper, people value this thing to sustain their everyday

needs like food, water, and clothes. Being students, their allowance should be budgeted and

allocated well based on the amount of their allowance every day they go to school,

particularly for those students who have allowances ranging from 100php and above. This
research aimed to know if the selected grade 12 ABM students at best link College of the

Philippines know the ways and guidelines to manage their allowance well and to help them if

they do not.

The researchers used Descriptive design to know if the selected ABM grade 12 student know

how to handle their allowance based on the amount of their money. The researchers use

Convenience Sampling wherein the selection of the sample is based on ease of accessibility.

The instrument used is a questionnaire. Most of the selected ABM grade 12 students have

100-199php allowances. Selected ABM grade 12 students can somehow properly follow the

ways of handling and budgeting allowance in terms of food, transportation, and schoolworks

based on the results of the data gathered in the survey. Researchers found out that most of the

selected ABM grade 12 students have an allowance of 100php-199php with 31 respondents,

followed by students who have a 200-299PhP allowance with 13 respondents, and lastly, the

students with 300PhP and above allowance with 6 respondents for a total of 50 respondents.

In terms of handling allowance, respondents show that they strongly agree that they can

budget their allowance well based on the result and presentation of data gathered from the

questions in variable 2 in the survey questionnaire. There is only one question from the

2ndvariable indicator, question number 3, which states bringing own food to save money,

resulting to agree as verbal interpretation. The researchers' most proposed guidelines for the

respondents are the 50/30/20 rule that was also discussed and tackled in foreign-related

literature. It advises the allocation of your allowance to 50% for needs, 30% for wants, and

20% for savings.

Local Literature

The purpose of this research is to identify how the Senior High School Students of St. Mary’s

College QC manage their allowance and expenditures primarily every week. This research

looks at the word of Simone Galperti wherein his theory “A Theory of Personal Budgeting,”

shows the relationship between budgeting and self-control problems in terms of expenditures.

The goal of this research is to inform and educate the Senior High School students at St.

Mary’s College QC on how they spend their money and if it is the best way possible on …

Kathrine T Gacad, Robbin James C Montenegro, Juan Antonio Ricardo G Prada, John Mark

S Salas Ascendens Asia Journal of Multidisciplinary Research Abstracts 3 (1), (2019)