Chapter I

The Problem

Introduction

Allowance is a money that are given within time period (weekly, yearly) by

parents or the guardian for educational needs. Many benefits for giving allowance to

the students are teaching them regarding to make a decision (limited money with

unlimited needs), giving freedom and responsibility while using money and they will

learn the value from that money so they will use the money wisely, along with how to

make saving and budgeting. (Vhalery, H. Aimon, and Yuhendri, 2010)

This study is anchored on the Social Cognitive Theory by Albert Bandura

(1977) which proposes that people are driven not by inner forces, but by external

factors. This model suggests that human functioning can be explained by a triadic

interaction of behavior, personal and environmental factors.

D’Silva (2008) defined spending behavior as a conduct influencing the manner

in which a man utilize their money to fulfill their needs and needs with no utilization

of control. He elaborated that the spending behavior of students today is fairly not quite

the same as before, he claimed that students are getting more into consumerism

consistently. A great deal is put into the issue whether females spend their money more

compared to males and vice versa (Abawag et. al, 2019). In a study conducted by

Hayhoe et. al (2000 as cited in Villanueva, 2017), results show that there is a strong

influence of sex in spending behavior. Females tend to spend on appearance goods like

clothing while males spend for electronics, entertainment and food. Females were also

found to exhibit more financial practices like keeping a written budget, planning

spending and saving regularly.

ability, and skill support in order to use money. Knowledge about how to manage

money like money literacy, an ability to control money like saving or investing, and

skill for allocating money. These are needed to be done to control the resources that are

owned with the decision that is must be done. (J. Banks, “Cognitive Functions,

Financial Literacy and Financial Outcome2000”)

Several studies already show allowance management is good if it is combined

with management knowledge branches, connected to financial literacy, etc. However,

some studies are not clearly enough to explain what factors that can influence the

allowance. Because of that, this study will try to find, form, and explain factors which

are become as a basis for student that able to do the allowance management. (M.

Ameliawati and R. Setiyani, N. T. Feather, S. Saravanan and V. Devakinandini)

Norvilitis, et al. (2006) added that, “The more knowledge students have about

their financial responsibility and status that less likely they are to be in debt.” The

manner in which the students encounter is to manage the money depends on their daily

needs; somehow it changes due to some factors (Sagdullas, 2016).

Allowance is a necessity for every student. It is a means of survival. It can also

help students be financially responsible. Being essential, it just is right to state that

students shall be able to budget their allowance appropriately. The problem is how to

do it. Doing so isn’t easy since student need to manage their allowance between their

needs and wants. Also some only have a limited amount of money. Proper budgeting is

important. If done responsibly, it can give both the student’ needs and wants. Due to

factors that can affect budgeting, there exist a difference on planning a budget. The

manner in which college students manage their money is based on several factors such
as parent’s economy status, spending behavior, socialization, interest, and age. This is

the main focus of study the personal budgeting practices of student. To asses if the

students possess financial management skill. To know how they manage their finances

and the impact of the variables to their personal budgeting practices.

(ttps://www.academia.edu)

Allowance serve as student’s his/her share or potion allotted that is given

regularly, especially to pay for a particular thing. It can teach students about finances,

responsibility and the consequences of financial decisions. In the other hand, an

allowance may open the door to students making poor financial decisions when

spending their money. (https://www.academia.edu)

Conceptual Framework

The concept of this study is to identify the factors that affects the allocation of

allowance of boarding and non-boarding students in Josefina Herrera Cerilles State

College (JHCSC) Main Campus, Mati, San Miguel, Zamboanga del Sur.

As shown in this schematic diagram (figure 1) the box in the left side shows the

different factors that affects the allocation of allowance of students especially the

Personal Needs, Foods, Academic Purposes, and Transportation while the two boxes

on the right side are the boarding and non-boarding students that can be affected by

those factors.
 Boarding Students

Factors
a. Personal Needs
b. Academic
Purposes
c. Foods
d. Transportation

Non-Boarding Students

Figure 1. Schematic Model of the Study

This study aims to identify the factors that Affects the allocation of allowance

of Boarding students and Non Boarding students .In the JHCSC Main Campus, Mati,

San Miguel Zamboanga del Sur.

Specifically, this opted to answer the following question:

1. What is the profile of the respondent in terms of

a. Sex

b. Boarding or Non-boarding students

2. What percentage of the respondents’ allowance is spent for:

a. Personal needs

b. Academic Purposes

c. Foods

d. Transportation

3. Is there is significant differences in spending behavior of boarding and non-

boarding students?

Hypothesis

There is a significant difference in spending behavior of boarding and non-

boarding students.

Scope and Limitation

This study is limited only to Boarding and Non-boarding College Students of

JHCSC Main Campus, Mati, San Miguel, Zamboanga del Sur.

behavior of boarding and non-boarding students is the focus on this research. The

information needed will be gathered using the research-made questionnaire.

Subject Matter. This study shall focus on the factors that affects the allocation

of allowance specially the Boarding and Non-Boarding students.

Research Environment and Timeline. The research will conduct this study at

the Josefina Herrera Cerilles State College (JHCSC) Main Campus, Mati, San Miguel,

Zamboanga del Sur. This study will be conducted in the first semester of SY-2019-

2020.

Research Participants. The research participants for this study are the Boarding

and Non-Boarding students of the said JHCSC Main Campus, Mati, San Miguel

Zamboanga del Sur.

Research Design. This study adopted Descriptive survey method. This method

will show accurate result in identifying the significant difference between the factors

that affects the allocation of allowance of boarding and non-boarding students.

Research Method. The researcher will use Quantitative Research Design in

order to collect a data in this study.

Significance of the study

The findings of this study is all about the factors that affects the allocation of

allowance of Boarding and Non-Boarding students. In the JHCSC Main Campus, Mati

San Miguel, Zamboanga del Sur, will have a great relevance to the following

beneficiaries of this undertaking.

information upon identifying the factors that affects the allocation of allowance of

boarding students that will lead to be aware and somehow prevent some of the factors.

Non-Boarding Students. The outcome of this study will serve as their piece of

information upon identifying the factors that affects the allocation of allowance of Non-

Boarding students that will lead them to be aware and somehow prevent some of the

factors.

Parents. It will serve as their guide and a piece of information to identify the

factors that affects the allocation of allowance of their children.

Teachers. It will serve as their guide and a piece of information to identify the

factors that affects the allocation of allowance of their students.

Other Researchers. This study will serve as their guide for the future, especially

for the future researchers who want to conduct a related study.

Definition of Terms

The following terms below will be used in this study, and shall be taken

accordingly to definition given below.

Allocation. The action or process of allocating or distributing something.

Allowance. The amount of something that is permitted, especially within a set of

regulations or for a specified purpose.

Boarding student. Part of a supportive multicultural community, living together in

double and single rooms.

for a future time period.

Budgeting. The process of creating a plan on how to spend the money.

Factors. A circumstance fact or influence that contributes to a result or outcome.

Financial Management. Is a vital activity in any organization, it is the process of

planning, organizing, controlling and monitoring financial resources with a view to

achieve organizational goals and objectives.

Non-Boarding Student. It is defined as a student at a college or university who does not

reside in the facilities provided by the institution.

Parental socioeconomic status. A multidimensional concept of special importance for

the growth, development, health, outcomes, and education of children

Socialization. The process of learning to behave in a way that is acceptable to society.

Review of Related Literature and Related studies

This chapter is composed of related literature and studies from different sources.

It contains fact and information on the research variables. It provides explanation and

logical connection between previous researchers and the present work.

Related Literature

Weston and Brigham (1981) describe financial management behavior as an area

of financial decision-making, harmonizing individual motives and enterprise goals.

While Horne and Wachowicz (2002) propose financial management behavior as

determination, acquisition, allocation and utilization of financial resources, usually with

an overall goal in mind.

College students are in a unique situation because they have restricted income

ffand high expenses; therefore, they manage money differently (Micomonaco, 2003).

Young adults begin their college careers without ever been having solely responsible

for their own personal finance (boarden et al., 2008).

Joo (2008) added that effective financial management behavior should

improve financial well-being positively and failure to manage personal finances can

lead to serious long term, negative social and societal consequences. And also, Shim et.
al (2010) added that healthy or positive financial indicators helps young adults to

achieve the financial, economic, and interpersonal goals that are important to them.

Behavior such as awareness of debt owed, checking for the lowest interest rate

before borrowing, saving, budgeting, and keep financial goals have been shown to be

positively related to lower reported level of financial stress and increased in financial

well-being (Gutter, Garisson & Copur, 2010).

Godfrey (2013) also added, 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`s lifetime through many successes and failures as

well. “An allowance is not an entitlement or a salary. It is tool for teaching children

how to manage money.”

According to Birari and Patil, (2014). It was also pointed out that the young

generation rarely practiced basic financial skills, such as budgeting, developing a

regular savings plan or planning for a long term requirements. Mien and Thao (2015)

also stated that, financial management is considered as one of the key concept of the

financial discipline. Many definitions are given with regarding to this concept.

Sagdullas (2016) stated that, Allowance is a necessity for every student. It is

a means of survival. It can also help students be financially responsible. Being essential,

it just is right to state that students shall be able to budget their allowance appropriately.

According to Sagdullas (2016), Allowance is a necessity for every student. It

is a means of survival. It can also help students be financially responsible. Being

essential, it just is right to state that students shall be able to budget their allowance

appropriately.
 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. Student think that a way to pay for college is student loans, but there are

other options like school scholarship, financial aid or wok options. Some can take

investing classes where students can learn the process of investing and budgeting. As a

student there are also other things spend on, it can be wants or needs not just school

supplies. Most people recommended parents to have a long-term planning for their teen

(Caldwell, 2017).

As the world turn and decades past, what the generation of yesterday is different

to the generation today. Everything changes because nothing is constant, even the

slightest factors of people’s lives will change. The spending behavior of students today

is rather different from before leaving a question of what could be the spending factors

of students today be. According to Neill Valentine D’Silva (2008) in his article about

college spending habits, Students are getting more and more into consumerism every

day. Students who used to live away from their home, there are too much of brand

awareness and increase the chances of students buying things that they don’t need

leaving mass media a factor.

Related Studies

Studies already show allowance management is good if it is combined with

management knowledge branches, connected to financial literacy, etc. However, some

studies are not clearly enough to explain what factors that can influence the allowance.

Because of that, this study will try to find, form, and explain factors which are become

as a basis for student that able to do the allowance management. (M. Ameliawati and

R. Setiyani, N. T. Feather, S. Saravanan and V. Devakinandini)

Research Methodology

This chapter articulates methodology for research. It includes the research design,

research setting, research respondents, research instrument, data collection, ethical

consideration and data analysis. According to Hulger and Polit (2003) methodology is

defined as the method of acquiring, organizing and analysis of data.

Research Design

The researchers will use quantitative type of research.

This study entitled Factors Affecting the Allocation of Allowance of

Boarding and Non-Boarding students will utilize a survey method. This method helps

to collect information and data to initialize more information about problem.

Research Setting

This study will conducted in the JHCSC Main Campus, Mati San Miguel,

Zamboanga del Sur. The researchers choose JHCSC Main Campus because there are

more possible boarding and non-boarding respondents within the campus for this study.

Research Respondents

The research respondents of this study are the Boarding and Non-Boarding

students in JHCSC main campus of Mati, San Miguel. The researcher used a random
sampling in a lottery technique way in choosing the respondents. The researchers

conducted this study with the total participants of 120, who are Boarding and Non-

Boarding students at the said Campus.

Research Instrument

Questionnaires have advantages over the instruments of research since they are

affordable and less effort compared to others as the telephone or verbal surveys and

usually have standard answers that make data compilation process easy (Schmittman et

Al. 2013).

A Researcher-made questionnaire will be used as the main instrument for data

collection.

Data Gathering Technique

Primary data was used in the study as it is naturally survey and quantitative. This

type of data is perceived to be new as it is directly obtained from the respondents chosen

for the research (Collins and Hussey, 2013).

Prior to conducting the study, researchers will conduct an interview to the

participants and a survey to the Boarding and Non-boarding students.

Ethical consideration

Prior to the conduct of this study, the researchers seek permission from the

Research Adviser and School Head to legally convey the study to the target

respondents. The respondents were then asked for consent and only those who agreed

to participate were given informed consent and questionnaires. Strict confidentiality of

for each respondent and by compiling the questionnaires in a secured place.

Data analysis

The statistical tool used in the study are the following:

Mean and standard deviation. This statistical tools was used in the 4 point rating

scale to determine the Factors Affecting the Allocation of Allowance of Boarding and

Non-boarding students.

Analysis of variance (ANOVA) used to determine the significant differences

among the Factors Affecting the Allocation of Allowance of Boarding and Non-

boarding Students in JHCSC Main Campus Mati, San Miguel Zamboanga del sur.

The formula shown below:

Formula
 F=MSb/MSw

Where:

F= F-test or ANOVA

MSb= Means Square between

MSw= Means Square within.