SCHOOL ALLOWANCE AND BUDGETING STRATEGY OF COLLEGE STUDENTS
AT PAMANTASAN NG LUNGSOD NG SAN PABLO
I. Introduction
The Department of Education Order 34 series of 2022, which was issuedonOctober
17, 2022, mandates that all public schools in the nation hold five (5) days of in-person
instruction beginning on November 2, 2022. The headline inflation rate in the nation
jumped from 6.3 percent in August 2022 to 6.9 percent in September 2022, according
to the Philippine Statistical Authority (PSA). The index for food and non- alcoholic
beverages experienced an annual growth rate of 7.4 percent in September 2022, up
from 6.3 percent in August 2022, and this growth rate was largely responsible for the
country's higher inflation rate. Similar to this, the inflation rate for transportation
increased to 18.1% in July 2022. The primary reason for this was the nationwide
provisional increase in PUJ (Public Utility Jeepney) charges.
The economy is slowly falling down during the time of the post-pandemic. The price
of basic needs keeps increasing day by day. Not just daily expenses like food but other
commodities like school supplies increases as well as the return of in- person or
face-to-face classes. According to Hannah Wagner (2022), many students are
affected by low income, poor financial literacy, and compulsive spending habits which
make it difficult for some of them to pay for basic living needs. This is due to the
concurrent requirement of in-person classes and the sudden increase in the inflation
rate. Students therefore need to set aside money for their expenses. Merriam-Webster
defines budgeting as declaring a plan that balances resources and costs while
including or making a provision for them. Many students do not have a basic
understanding of personal finance, including budgeting, saving, and investing. As a
result, they may struggle to make informed financial decisions, leading to poor
budgeting practices. To address this issue, further research can be conducted to
identify effective budgeting strategies for students.
This study aims to propose an infomercial on budgeting strategy for college student
now that they are already taking in-person classes. Furthermore, this research study
would come up with a proposed infomercial to help the students to ease the problem in
terms of managing their expenses especially that the price of commodities increases
because of inflation this year. Creating and adhering to budget is a simple action that
everyone can take to boost their wealth and financial stability, claims Barbara O'Neill
(2017). Many studies (Bonggaoen, Daodaoen, Dumlao, & Progreso, 2019; Cuagonet.
al., 2018; Aquino, Artates, Aslarona, Rapanut, & Romero, 2022) have
exploredtherelationship between school allowance and budgeting strategy but they
have not yet proposed an infomercial on budgeting strategy. Consequently,
researchers makean infomercial on budgeting strategy for BSOA to help the students
manage their finances in school.
II. Background of the study
After two years of distance learning, the Department of Education decided
mandate in-person classes for the students. In addition, the rising inflation rate
directly affected the way families and students budget their allowances. Due to this,
the study aimed to propose an infomercial regarding the relationship of school
allowance and budgeting strategy focusing on the selected BSOA students at
Pamantasan ng Lungsod ng San Pablo .
Students are able to prioritize their needs first over wants in spending their school
allowances. And subsequently, it was found that the school allowance and budgeting
strategy of the students are highly correlated to each other. By this, students have to
be mindful of spending their allowances as they follow a budgeting strategy to help
them manage their money, especially at a situation where the living costs are
increasing and that can cause them to struggle to afford their necessities.
III. Research Paradigm
Figure 1. The Research Paradigm
The researcher adopted the input-process-output model. It includes all of the
information and tools needed for the process, the specifics of the process itself, and
the evaluation guide on the relationship between School Allowance and
BudgetingStrategy of BSOA Students. Figure 1 illustrates the concept model of the
procedure for determining if there is a significant relationship between the two
variables.
For input, it consists of the respondents’ profile in terms of their monthly school
allowance, the mean school allowance allocated by the respondents, and the mean
budgeting strategy of the respondents. Normally, all the information listed the
statement of the problem is specified here. The questionnaires that were used, the
observations that were made, the data gathering technique, and the statistical analysis
of the data are all part of the process. Also included are data tabulation, analysis, and
interpretation. It covers everything, from the initial information or data collection
through the final results, andrecommendations of this research.
For output, this includes the result of the study and the action taken after
interpreting the results, from this, the researcher conceptualized an infomercial on
budgeting strategy for BSOA students.
IV. Research Questions
This study aims to propose an infomercial on budgeting strategy for BSOA students
at Pamantasan ng Lungsod ng San Pablo
Specifically, this study seeks to answer the following:
1. 1. What is the profile of respondents in terms of;
1.1 Age
1.2 Sex
2. How much is the monthly school allowance of the respondents?
3. What is the mean school allowance allocated by the respondents?
4. What is the mean budgeting strategy of the respondents?
5. Is there a relationship between the school allowance and the budgeting
strategy of the respondents?
V. Hypothesis
The researchers used hypotheses in order for them to seek answers to the
questions mentioned beforehand. It was also utilized to determine the relationship of
the variables being used in the study. In connection, the hypotheses utilized by the
researchers is:
There is no significant relationship between school allowance and budgeting
strategy of BSOA students.
VI. Significance of the study
The main objective of this study is to gather data and propose an infomercial on
budgeting strategy for BSOA students. Thus, this research focuses on the
significance of different points of view of users such as the students, parents,
teachers or professors, researchers, and future researchers.
For the students, most of them are living on a budget while others are living without
worrying about their allowances running out because they have enough to survive.
The importance of allowance budgeting methods allows people to understand how to
live within their means while still surviving on their daily allowance, prevent going into
debt, and avoid overspending.
For the parents, they differ on whether or not to give their kids an allowance
because they feel that they should take care of their needs and that teaching them
about financial responsibility through allowance is a smart method to do both.
Thisstudy will help them estimate how much money to give their kids and how to
keep track of how their kids spend their allowances.
For the Researchers, this study enhances the awareness of the researchers on the
importance of strategizing a budget. Being wise with your money is the secret to
financial success.
To the Teachers, the project that teachers' typically assign is one of the factors.
This study is important because it reveals how students budget their allowances for
projects. The amount that the students give up or the habits they put aside to comply.
To the Future Researchers, this study will serve as their guide and reference
when they conduct their own research related to the relationship of school allowance
and budgeting strategy.
VII. Scope and Limitation of the study
This research provides information about respondents’ profile, About school allowance
and budgeting strategy of BSOA students at Pamantasan ng Lungsod ng San Pablo.
The researcher chose to survey BSOA students. It appears reasonable to conclude that
there is a need for some research on BSOA students' academic performances with the
help of knowing the school allowance and budgeting strategy of BSOA students. The
aspects looked into were the capabilities of the students to use the knowledge that they
have learned their accounting subject.
This study covered the school year 2024-2025. The respondents of this study
are the BSOA students of the Pamantasan ng Lungsod ng San Pablo. Random
sampling was used to gather the number of the BSOA students as respondents of
the study, with questionnaire as the main instrument.
VIII. Definition of Terms
For clarification, the important terms were used in this study have been defined:
Allocated. According to Cambridge dictionary, allocated is to give something to
someone as their share of a total amount. In this study, it refers to the way students
put money on something.
Budgeting Strategy. A budgeting strategy is a formal approach to managing a
collection of funds (Lee, 2022). In this study, it refers to the plan of action of the
students in budgeting their money.
Expenses. It's a daily transaction everyone encounters (Girardin, 2023). In this
study, it refers to the item/s where the students allot their allowances.
Finances. Investing, borrowing, lending, budgeting, saving, and predicting are all
examples of activities (CFI TEAM, 2023). In this study, it relates to the respondents'
monetary resources and affairs.
Financial literacy. The capacity to comprehend and efficiently use various financial
abilities, such as personal financial management, budgeting, and saving (Sujaini,
2023). In this study, it is the knowledge in the financial aspect.
Inflation rate. Refers to an increase in prices that results in a loss of buying power over
time (Fernando, 2023). In this study, it refers to the rise in commodity prices.
Infomercial. As defined by Kenton (2022), an infomercial is a longer-form television or
video ad that serves as to market a product or service with a call to action. In This
Study, it is a video presentation that contains the budgeting strategy of BSOA students
to help them ease the problem of managing their expenses.
Manage. According to dictionary.com, manage is the handling, appointing,
governing, or exercise control over an action. In this study, it is an act of being in
charge of their own money or resources.
Mean. Simply the mathematical average of two or more integers (Hayes, 2022).
This Refers to the average in this research the value derived by dividing the sum
of many quantities by their number.
School allowance. Finances for students during their time in school are referred to
as school allowances (Moneva et. al., 2020). In this study, it is a daily finance of the
students that can help them to sustain their needs in school.
CHAPTER 2
REVIEW OF RELATED LITERATURE AND STUDIES
School Allowance
According to the study of Bonggaoen et al. (2019), allowance is the amount of money
that parents or guardians provide their kids to cover their daily costs and expenses. A
school allowance, according to the research of Moneva, Miralles, andRaman (2020) is
cash given to students to assist them in paying for their education. Allowance is a
significant factor in how the students spend on the supplies they require for a certain
topic.
The school allowance plays a crucial role in the daily school experience. A student's
daily allowance is the amount of money they require each day. It is one of the resources
accessible to satisfy the needs of each learner.
The majority of students' parents provide them with an allowance (Sollano,
Duhaylongsod, Aviso, and Moneva, 2018).
The respondents agreed that factors such as family, financial condition, peers, and
personal preferences affect how much money they allocate for allowances. There
Was a noticeable variation in the respondents' perceptions when they were divided
into groups based on their demographic profile. When the respondents were
categorized according to their daily allowance, there was a substantial difference in
how they perceived the influence of peers and personal factors on the budgeting of
allowances (Abrehan, 2019).
Canlas (2014) claims that students who live with their parents often receive daily or
weekly allowances. Students who move away from home to attend school receive
theirs once each week or once per month. Consider the time and transaction
expenses when deciding how frequently to give allowance to youngsters who are
away from home.
Budgeting Strategy
An income and expense-based spending plan is known as a budget. To Put it another
way, it is a prediction of your income and outgoing costs for a specific timeframe, like a
month or a year. If you are keeping track of the income and expenses of each
household member, this can also be referred to as a family budget (Schwahn, 2020).
According to Doniego (2021), parents typically provide financial help aspiring
accountants.
They usually spend their money primarily on food. However, students started lying,
cutting back on their expenditures, borrowing money from friends and relatives, taking
withdrawals from savings, and working extra jobs when their allowances became
insufficient. Budgets can be used to accomplish and coordinate organizational goals
and initiatives when they are used effectively, especially when done so within the
parameters of precise and effective management (Isaac et al., 2015).A budget is a
strategy for the money you'll make, according to BarbaraO'Neill (2017). Any savings
you'll need to achieve your financial goals, as well as what you already spend and want
to in the future.
The ideal situation is to make a written budget with specific categories of income and
expenses and dollar amounts(on paper, in a computer spreadsheet, etc.). If you count
savings as a fixed “cost”, budget can ease your mind, give you financial security, and
act as “guardrails” (i.e., set spending boundaries). In order to support their
often-unmaintained way of life and pay their bills, more than half of the students are on
rather tight budgets. Because remote students are responsible for lodging costs, such
as gas, electricity, and other utilities, they spend more money than those who attend
school near their hometown.
Their entertainment and style of life, which vary for each student, are the key expenses
for these students. Students today are very brand savvy since each brand conveys a
unique characteristic of the person who created it. It was an interesting finding that
when faced with a financial crisis, more students reduced their daily expenditure than
those who asked their parents for assistance (Singh et al., 2020).
CHAPTER 3
RESEARCH METHODOLOGY
This chapter illustrates the research methodology that includes the research
design, subject/responses of the study, determination of the sampling technique,
research instrument, and research procedure. It provides the readers with perspective
on how this study was made and how conclusions were derived.
Research Design
The researchers employed descriptive correlational study design through survey
questionnaires. The goal of the correlational research design is to establish link
between the school allowance and the budgeting method used by a sample of
Pamantasan ng Lungsod ng San Pablo BSOA students. When the goal of the study is
to examine correlations between variables without the researcher altering or changing
any of them, this type of research design is appropriate (Bhandari, 2021).
Respondents of this study
The Pamantasan ng Lungsod ng San Pablo was chosen as the locale of the
study. It includes the Bachelor Of Science in Office Administration that composed of 80
respondents. The list of the students were taken from Dean’s Office of PLSP.
Determination of Sampling Technique
These students were chosen through simple random sampling. The use of
simple random sampling removes all hints of bias since each individual in the large
populations has the same probability of being selected. As a result, the researchers
can generate more accurate findings that are representative of the general population
(Horton, 2022).
Research Instruments
For this study, the researcher collected data using a researcher-made
questionnaire. The goal was to ascertain how selected BSOA students in PLSP
budgeting strategy related to their school school allowance. This kind of instrument
was chosen by the researchers because they wanted to get information directly from
the respondents in order to produce results and recommendations for the study that
were both valid and dependable.
Statistical Treatment
The following statistical instruments were used to analyze and interpret the
data:
For Part 1, which covers the respondent’s profile and the school allowance of the
respondents to recognize the data needed for finding the frequency and percentage.
For Part 2, which consists of indicators that aim to measure the respondents’ level of
agreement in relation to their school allowance. The data gathered was needed for
finding the mean and/or standard deviation.
For Part 3, also made to measure the respondents’ level of agreement to indicators
related to budgeting strategy. The data gathered was needed for finding the mean
and/or standard deviation.
For Part 4, the relationship between school allowance and budgeting strategy
were determined using pearson product moment of correlation.
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