Inflation and Savings: A conflict challenges encountered
by Senior High School Learners
In Partial Fulfillment of the requirements of the subject Practical Research 1
Dadiangas North High School
Presented by:
Jhon Mark Fara
Erica Faith Solis
Angel Kaye Similatan
Almaica Joyce Cangrihilla
S.Y. 2022-2023
Table of contents
ACKNOWLEDGEMENT----------------------------------------------------------- i
ABSTRACT--------------------------------------------------------------------------- ii
Chapter I.
1.1 Introduction----------------------------------------------------------------------- 6
1.2 Statement of the problem------------------------------------------------------7
1.3 Scope and delimitation---------------------------------------------------------7
1.4 Significance of the Study------------------------------------------------------8
1.5 Definition of terms---------------------------------------------------------------8
Chapter II.
2.1 Conceptual Framework-------------------------------------------------------11
2.2 Related Literature--------------------------------------------------------------13
2.3 Foreign Literature--------------------------------------------------------------14
2.4 Local Literature-----------------------------------------------------------------15
Chapter III.
3.1 Research Design---------------------------------------------------------------19
3.2 Respondents of the study---------------------------------------------------19
3.3 Research Instrument----------------------------------------------------------19
3.4 Locale of the study------------------------------------------------------------20
3.5 Sample Size--------------------------------------------------------------------20
3.6 Reliability and Validity--------------------------------------------------------20
3.7 Data Gathering Method------------------------------------------------------21
3.8 Data Gathering Procedures-------------------------------------------------21
3.9 Statistical Method--------------------------------------------------------------21
Chapter IV.
4.1 Profile of the Respondents--------------------------------------------------23
4.2 Table III. (Question #1)-------------------------------------------------------24
Table IV.
4.3 Table V. (Question #2)-------------------------------------------------------25
4.4 Table VI. (Question #3)-------------------------------------------------------27
Chapter V.
5.1 Conclusion---------------------------------------------------------------------31
5.2 Recommendations-----------------------------------------------------------32
Bibliography------------------------------------------------------------------------33
Chapter I
The Problem and its Background
1. Introduction
1.1 Background of the study
Inflation is the increase in the price of goods or services in a given period
of time, resulting in a decrease in the purchasing power of an economy over
time. As the inflation rate increases, the value of a unit of currency decreases
over time because consumer demand is greater than a manufacturer’s capacity
to produce. An increase in inflation results in fewer purchases of goods and
services.
Inflation significantly impacts economic factors, impacting consumer
spending, businesses, and investors, requiring realistic savings plans. According
to Gowen (2022), inflation occurs when the demands of consumer are high for
the manufacturers capacity to produce. In result, it increases the price of goods
or products and services in an economy. Inflation is the root cause of difficulty in
life, especially in education for students. Inflation increases as the time passes, it
may be higher or lower than it is from before. It affects the students financially, it
have many effects in education. It can affect the student’s savings and reduce
educational investment.
Students are really affected by this crisis that it affects their financial status
by the increase in price and their basic necessities are becoming more
expensive. The researchers will conduct this study due to the insufficiency of
articles or research regarding the experience of students in the midst of inflation.
It is also to base and focus on the experience of the student and also because
there is not enough or no one has conducted this kind of study or other studies
only focus on students in other countries or a numerical type of research.
1.2 Objective of the Study
The objective of this study is to gain knowledge about how senior high
school students deal and manage their allowance and also their experiences
during inflation. How they can adjust with their allowance as inflation affects their
savings despite the problems they are having. This study aims to know their
experiences how they can adapt to this kind of situation.
1.3 Statement of the Problem
This study aims to investigate the experiences of senior high school learners who
face challenges because of inflation and to answer the following questions:
• How do learners manage inflation?
• Do they find possibility to save or earn money amidst inflation?
1.4 Scope and Delimitation
The coverage of this study is to find out how inflation affects the savings of
Senior High School students and how they manage and save their allowances on
a daily basis. The study is limited only to three Senior High school students
enrolled at Dadiangas North High School, school year 2023-2024 in General
Santos City.
1.5 Significance of the Study
The outcome of the study will benefit the following:
Students – This study will help students especially in current issues such as
inflation. In this study, not only we researchers can discover what and how to go
with the flow or how to manage inflation but also the students or respondents
themselves.
Working Senior High school students – This study will help especially those who
are working students that are sustaining and supporting their daily and basic
needs amidst the inflation. They are the target of this study mainly because of the
rising inflation that are affecting every individual in a certain place.
Future Researchers – The conducted studies will further open doors for future
researchers to refine and expand studies in relation to managing inflation. This
may serve as a source of information regarding how the student can manage the
allowance amidst inflation.
1.6 Definition of terms
Inflation – Inflation is the rate of increase in prices over a given period of time.
Aims to measure the overall impact of price changes for a diversified set of
products and services.
Allowance – The amount of something that is permitted, especially within a set
of regulations or for a specified purpose.
Economy – The wealth and resources of a country or region, especially in terms
of the production and consumption of goods and services.
Purchasing Power – refers to the number of goods or services that a certain
amount of money can buy at a given time.
Economic Growth – is an increase in the amount of goods and services
produced per head of the population over a period of time.
Savings – is the portion of income not spent on current expenditures. It is the
money set aside -for future use and not spent immediately.
Chapter II
Theoretical lens and the review on related literatures and
studies
This chapter presents the Theoretical Lens, Literatures and Studies that
are relevant to the concept of the current investigation. It also looks at a number
of research and online materials to provide the background and information
required for this study.
A.) Theoretical Lens
This study is based on Milton Friedman’s theory of monetary inflation. This
theory is based on the idea that changes in the money supply are the main driver
of economic activity. It is argued that this is because central banks control the
level of monetary policy that can significantly affect economic growth rates by
adjusting the amount of money in a country’s economy. Monetary theory of
inflation states that an increase in the money supply is the cause of inflation.
According to OPEC members, cost-push inflation occurs when overall prices rise
due to rising labor and commodity costs. Rising production costs can reduce total
supply in the economy. Since the demand for goods remains the same, the price
of the output passed on to consumers rises, leading to higher costs and inflation.
In the case of cost pressure inflation, demand for the affected product should
remain constant during production.
For the purposes of this study, the researchers adapted the framework to
Friedman’s theory of monetary inflation and cost-push inflation in OPEC
countries. The researchers plan to put these theories to work by asking
respondents how inflation is affecting their allowances and savings and what
problems they are experiencing.
B.) Related Literatures
2.1 Financial Issues
As explained by Peters, K. (2019), being a student makes it challenging to
start saving money, make a list and write down every cent, give a breakdown of
daily, weekly, monthly spending in different columns after listing monthly
allowance. The important step in decision-making is learning to distinguish
between what you need and what you want. In addition, Manulife (2020), Inflation
reduces the value of a student’s dollar by raising the prices of everyday
essentials, making them eligible to take out more in loans. Interest rates for loans
will rise, but for graduates repaying their loans, inflation would make them
cheaper. Gus Canada (2023), also mentioned that Inflation is a major concern for
Canadian students, and schools are taking initiatives to alleviate financial stress.
The Government of Canada has lifted the work limit for international students,
and co-ops are an excellent way to gain relevant work experience.
2.2 Budgeting
As explained by Mahr, N. (2022), also added that Budgeting is a financial
tool that helps people track spending, save money, and reduce financial anxiety
by subtracting expenses from income. Additionally, Student Aid (ND), added that
a budget is essential for students to avoid spending more than they earn and
reduce credit card debt. It involves setting goals, finding a budgeting tool,
identifying income and expenses, subtracting expenses from income, and
making adjustments and is agrees to the statement of, Great Lakes (ND), that
budgeting is an effective way to manage finances by setting realistic goals,
creating a budget, and handling expenses.
2.3 Inflation affects students
As indicated by Education (2022), inflation increases daily essentials,
housing expenses, health expenses, and standard of living making it difficult for
students to meet their education expenses. Furthermore, Diaz, J. (2022), also
stated that inflation in the us has increased significantly, leading to a decrease in
purchasing and increasing the cost of attending college. High school graduates
are exempt from paying for everything, leading to more debt and Bushra, S.
(2022), also mentioned that inflation increases the costs of students' necessities
and tuition costs, making it more important to save and earn more. Higher
interest rates on loans are expected due to fed rate hikes and private loans
should be avoided as variable-rate loans can fluctuate.
2.4 Understanding Inflation
As stated by Fernando, J. (2023), inflation decreases the purchasing
power of an economy, leading to fewer purchase of goods and services.
Additionally, Pimco (2023), inflation is a sustained rise in price levels associated
with economic growth, and can be tracked using the CPI and PCE. Central banks
attempt to control inflation through interest rates, reserve requirements, and fiscal
policy and was further explained by Equifax (2023), also mentioned that inflation
is caused by an imbalance between supply and demand, with demand driven by
businesses and demand driven by consumers. It is measured with a price index,
such as the CPI and PCE price index. Thus, the authors are saying that inflation
is a rising crisis that is up until now are affecting many people, it is decreasing
one’s economy and making people struggle.
2.5 Impact of Inflation
As stated by, Jones, J. (2022), Gallup's survey found that more than three-
quarters of lower-income Americans have experienced financial strain from
inflation, while middle-income Americans are the least affected. 13% of middle-
income and 6% of upper-income Americans have been severely harmed and
Desilver, D. (2022), also stated that two years ago, inflation was seen as an
afterthought, but now it is higher than it has been since the early 1980s. Israel,
Italy, Switzerland, Greece, and the us all experienced large increases in inflation
between 2020 and 2022. Greece experienced several years of low inflation, but
prices have rocketed upward. In other words, every author are saying that
inflation causes a major problem in the economy that a little decrease in
purchase power is affecting people especially students with their basic
essentials.
C.) Review of Related Studies
Ma. Analie Villanueva,et.al.(2023), Effect of inflation rate in life of Grade
11 ABM students of world citti collages Antipolo City.
The outcome of the study disclosed that the inflation is affecting the life
of everyone including the students. It discusses about inflation is the rate of
increase in the general price level over a period of time, which affects the
economy as a whole. It also mentioned that High inflation rates are
considered to be damaging to an economy, as they create uncertainty and
can wipe away the value of savings, as it may have a negative impact on
Grade 11 Accountancy, Business and Management students at World Citi
Colleges- Antipolo Campus, as they may not be able to continue their studies
due to higher costs of education. Private educational institutions are providing
better education and placement, so only those with money can continue their
studies.
It has similarities with the present study, however in this study it doesn’t
focus on the effects of inflation to the students. Instead, it focuses on how they
manage their expenses, allowances and their experiences amidst the inflation.
Chapter III
Methodology
The purpose of this research is to know the experience and struggle of a student
amidst inflation. This chapter contains the research methodology used, describe
the procedure used by researchers to collect, analyze and interpret the data.
3.1 Research Design
This study’s research method of choice is qualitative research. According
to Ashley Crossman (2020), qualitative research is a subset of social science
inquiry that gathers and analyzes non-numerical data with the goal of deriving
insights from the data that advance our understanding of social life through the
investigation of particular groups or locations. It can be utilized to uncover
intricate details about a situation or to spark fresh study concepts. This method
can be used to get in-depth learning and understanding of life of particular
groups through investigation.
3.2 Participants
The participants for this study were 2 enrolled Senior High School
students at Dadiangas North High School of the school year 2022-2023. These
participants have experience and are still experiencing the phenomenon under
this research. The researchers used purposive sampling for this research.
3.3 Reliability and Validity
The researcher validated information in a way of rechecking the answers given
by the respondent. The interview was recorded via video, voice recorder, and
written notes. The respondent was able to countercheck their answer where
they approved publicizing it in the publication of the study.
3.4 Data Analysis
The present investigation aims to study the experience and life of Senior High
School students at Dadiangas North High School and how they manage or save
their daily allowances amidst the inflation in General Santos City.
3.5 Research Instrument
The researcher used the interview method in this study. The interview
method helps the researcher to make it easier and better for the researcher to
understand and explain the opinion, perception, experience or a phenomenon.
An interview is basically a qualitative research technique that involves asking
open-ended questions to communicate with respondents and collect elicit data
about a topic.
3.6 Research Locale
This research is conducted in Dadiangas North High School, General Santos
City.
3.7 Ethical Consideration
The researcher humbly asked for the consent of the respondent and
made the respondent decide if they want to reveal their identity or not and to
respect their privacy. The researchers also honored some of the respondent’s
privacy demands and treated all of them with the utmost respect.
Chapter IV
Presentation, Analysis, Interpretation of Data
It is crucial to have this chapter in order to finish this study. The data
acquired from the respondents’ responses to the questions posed during the
face-to-face interview are analyzed and interpreted in this section. According to
the precise questions listed in the statement of the problem contained in the
chapter I section, the data will be provided in tables.
Table 1. Respondents’ Information
Assumed Name Gender Age Study Group
AlienX Male 18 IDI
Nicole Female 19 IDI
Jasmin Female 18 IDI
Only three participants were available to the researchers for this study’s
data collection. Due to the study’s focus on senior high school learners, these
respondents are senior high school students. They were interrogated and given
questions based on their daily lives, including how they handle and allocate their
allowances in the face of inflation. The identical questions were posed to them,
and their responses were genuinely based on their experiences.
Categoration of data
From the data collected from the respondents two main emergent themes
as presented in Table 2: Struggle with Expenses and High Prices.
Table 2
Thematic analysis about the struggles that a Senior High school student
encounters amidst Inflation.
Essential Themes Emergent Themes
P1: How much would I spend uhm in
the things that we need in school such
as manila papers, things like that so in
that part I find it a little bit hard.
P2: Daghan pag amutan sa school
Struggle with Expenses
maglisod gyud kag budget.
P3: Daghan kaayog bayrunon sa
skwelahan og kanang wala ka kabalo
ba nga ugma naa na pud diay
bayrunon.
P1: Before I was able to buy uhm a lot High Prices
of stuff with 100 pesos, right now with
100 pesos you’re going to atleast
have like few foods.
P2: Sauna barato pa lang ang
palitonon ma adjust pa nimo imong
budget, pero karon mag struggle na
jud kag adjust og mag budget sa
imong allowance kay mahal na kaayo
ang mga palitonon.
P3: If ever mag sakay ko sa tricycle or
jeep sometimes mag dako bitaw kalit
ang bayrunon nako uhm usually
akong ginabayad is 50 to 20 pesos,
usahay mag increase sya tungod daw
lagi kay nagmahal na ang gasolina.
Struggle with Expenses
From the respondents’ viewpoint, their lives have been significantly
impacted by the variable and ongoing increase in inflation. Compelled to come
up with a strategy to turn a profit despite price hikes, and they are not exempt.
They are having trouble keeping up with their everyday expenses due to the
ongoing price increases, particularly because they are still students. The
respondents’ most frequent reaction while the researchers conducted this study
was the challenge of expenses on a daily basis.
P1: How much would I spend uhm in the
things that we need in school such as manila
papers, things like that so in that part I find it
a little bit hard.
P2: “There’s a lot to pay for school, it is
difficult for me to budget.”
P3: “There are a lot to pay at school, and
you don’t know that there will be another
expenses tomorrow again.”
High Prices
Inflation affects people because it increases what people buy. Based on
the perceptions of the respondents, they find it difficult to adjust to the constant
increase in their basic needs, especially as the price of school supplies and
expenses also increases. As the hardships goes on, they manage to find ways
as to how to deal with inflation.
P1: “Before, I was able to buy uhm a lot
of stuff with 100 pesos, right now with
100 pesos you’re going to atleast have
like few foods.”
P2: “Before, the goods were cheap
enough to adjust with your budget, but
now you will have a hard time adjusting
your budget to your allowance because
the goods are expensive.
P3: “If I ever ride a tricycle or jeep,
sometimes the fare suddenly increases,
uhm usually what I pay is 50 to 20 pesos,
sometimes it increases because of the
increased price of gasoline.”
Categorization of data
From the data collected from the respondents, one main emergent
themes as presented in Table 3: Budgeting.
Table 3
Thematic analysis about how do Senior High school student manage their
allowances.
Essential Themes Emergent Themes
P3: I also adjust uhm the Budgeting
things I want to that day
since uhm comparing
prices uhm it’s it’s always
fun to know uhm which
stores or which uhm which
products are much
cheaper than other
products.
P2: Kung unsa lang jud
akong need wala ko ga
gasto og kaning mga
mahalon.
P3: Kung magdako ang
bayrunon, mas imanage
nako kung unsa lang gid
ang dapat ang akoang
paliton.
Budgeting
With the constant increase in prices, they are forced to slow down their
spending in order to save for something to use on a daily basis. Looking for a
way to budget because of those who also want to buy something for themselves.
After everything the difficulties, they manage to adjust with the high prices
caused by inflation.
P1: “I also adjust uhm the things I want
to that day since uhm comparing prices
uhm it’s it’s always fun to know uhm
which stores or which uhm which
products are much cheaper than other
products.”
P2: “I only buy what is needed, I don’t
spend for expensive things.”
P3: “If the expense is increasing, I
always manage of what stuffs I need to
buy.”
Chapter 5
Results and Discussions
This chapter presents the Discussion, Implications for future research and the
Concluding remarks.
The main purpose of this study is to describe the different struggles that a
Senior High school students encounter amidst the inflation and how did they
solve or face this struggle.
Based on the results of the study, the struggles that a Senior High school
student encounter amidst the inflation and the strategies they did have emerged
into three themes: Struggle with Expenses, High Prices, and Budgeting.
Struggles with Expenses
Inflation affects people because it increases the purchase price.
Respondents said they find it difficult to adapt to their ever-increasing basic
needs, especially as the cost of school materials and expenses is also rising.
With inflation steadily rising, students are somehow confused to how they will
manage their pocket money as expenses keep coming up.
As explained by Peters, K. (2019), being a student makes it challenging to
start saving money, make a list and write down every cent, give a breakdown of
daily, weekly, monthly spending in different columns after listing monthly
allowance. The important step in decision-making is learning to distinguish
between what you need and what you want. In addition, Manulife (2020), Inflation
reduces the value of a student’s dollar by raising the prices of everyday
essentials, making them eligible to take out more in loans. Interest rates for loans
will rise, but for graduates repaying their loans, inflation would make them
cheaper.
High Prices
Respondents cited the continuing rise in the prices of daily necessities at
home and school, as well as the lack of pocket money. They explained that this
was one of the problems they had because the more expensive the goods, the
more difficult it would be to meet their daily needs.
As indicated by Education (2022), inflation increases daily essentials,
housing expenses, health expenses, and standard of living making it difficult for
students to meet their education expenses. Furthermore, Bushra, S. (2022), also
mentioned that inflation increases the costs of students’ necessities and tuition
costs, making it more important to save and earn more. Higher interest rates on
loans are expected due to fed rate hikes and private loans should be avoided as
variable-rate loans can fluctuate.
Budgeting
As prices continue to rise, they are forced to cut back on spending to save
money for the things they use every day. I’m looking for budget saving options for
those who want to buy something for themselves as well. Through all the
difficulties they managed to adjust to high prices due to inflation. Budgeting is
useful for certain people, especially students. It’s also their way of surviving in
times of inflation. They budget their money and income by dividing the money
they spend on the things that really matter.
As explained by Mahr, N. (2022), also added that Budgeting is a financial
tool that helps people track spending, save money, and reduce financial anxiety
by subtracting expenses from income. Additionally, Student Aid (ND), added that
a budget is essential for students to avoid spending more than they earn and
reduce credit card debt. It involves setting goals, finding a budgeting tool,
identifying income and expenses, subtracting expenses from income, and
making adjustments.
Implications for Future Researchers
As the number of participants in this study was limited to 3 based on our
experiences during inflation, we have drawn the following conclusions:
As the results of this study could not be generalized beyond three
respondents, future studies investigating most of the challenges and problems
facing by Senior High School students related to inflation will confirm and It will
be corroborative. You can do this with another group of participants or
respondents.
A field Investigation of how inflation affects high schools is now being
conducted. The findings of this study will be reproducible by future researchers in
different settings. In the future, it might be possible to re-interview survey
participants to see if their experiences, difficulties, and insights have changed.
Future studies may also examine the challenges high schools encounter during
inflation and how they manage it. The results of this study take into account the
challenges high school pupils confront. To better understand the issues Senior
High school student experience, more research might be beneficial.
Concluding Remarks
I’ve heard the opinion that inflation doesn’t affect people at all, especially
high school students. The impact is certainly there, because when prices rise,
businesses also struggle to cope with rising costs, but the term is misunderstood.
Dealing with inflation may not be easy. Respondents say they face many
problems during inflation.
From this survey, we can conclude that despite inflation and price
increases, the three respondents did their best to cope with the difficulties they
faced. Still, they tried to adjust and deal with inflation by managing their pocket
money well. Their experience was passed on to other students who went through
the same thing. Based on this result, it can be asserted that high school students
face many difficulties in an era of inflation. This study will therefore educate
others about the situation of each student in the face of inflation.
This survey was done to let others know that college students are really
affected by inflation. This study has given me insight into people who face many
challenges, no matter how difficult they may be, and who face them in common.
And most of all, we students are also suffering from this crisis, so we know that
as students it is not easy to deal with inflation. They faced many difficulties, but
those difficulties did not stop them from chasing their dreams. Rather, they see it
as a challenge that must be overcome. Even in times of inflation, they have a
positive mindset that helps them acquire knowledge and share it with others. This
experience in our studies has been an inspiration for us and others to further
pursue our goals in life, business and more. Whatever difficulties we face, we
must keep moving forward because all challenges and struggles are temporary.
We can overcome it by faith
