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CHAPTER I
THE PROBLEM

INTRODUCTION

Higher education constantly evolves, and students' financial habits

are increasingly studied, especially their connection to mental health and

academic success. Self-reward spending—buying things or services to treat

oneself after working hard or achieving goals—has become a significant

topic. Business Administration students, often versed in financial

management principles, may show unique self-reward spending patterns

reflecting both academic pressures and personal coping mechanisms.

Understanding this behavior is vital for educators, researchers, and

policymakers aiming to foster holistic student development.

Self-reward spending extends beyond financial choices. Capricho

Ablay et al. (2023) explain that it links to psychological factors such as

motivation, self-efficacy, and emotional regulation, combined with financial

literacy, peer influence, and personal beliefs shaping how students value

and engage in self-reward spending. For Business Administration students,

this behavior can function as both motivation and a demonstration of

financial skills, though its effect on academic success remains

underexplored.
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Academic success—measured by GPA, course completion, and

engagement—is influenced by complex factors. Castleman and Meyer

(2019) underscore the impact of financial constraints and behavior on

academic outcomes. Self-reward spending might strengthen positive habits

or, conversely, cause distraction and financial stress. Additionally, Thứ Lưu

(2020) emphasizes how personal, familial, and financial perspectives affect

spending and academic performance.

Motivation critically influences academic performance; aligning

rewards with achievement encourages persistence, while misaligned

rewards may diminish intrinsic value. Demographic factors such as gender,

year level, and socioeconomic status further shape spending patterns. This

correlational study aims to provide a strong foundation by investigating

patterns and correlations between self-reward spending and academic

success among Business Administration students, offering essential

insights to inform educational strategies that promote responsible spending,

academic excellence, and student well-being.

OBJECTIVES

The main goal of this study is to examine how self-reward spending

affects Business Administration students' academic success.

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Specifically, the research aims to explore the following questions:

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

1.1. Age

1.2. Gender,

1.3. Year Level

1.4. Socioeconomic Status

1.5. Monthly Allowanceokay

1.6. General Weighted Average

2. What types of self-reward spending behaviors are commonly

practiced by Business Administration students?

3. To what extent does self-reward spending influence students’

motivation and academic performance?

4. Are there any differences in self-reward spending behavior when

categorized by gender, year level, and socioeconomic status?

5. Is there any significant relationship between self-reward spending

behavior and academic success?

6. To what extent can self-reward spending behavior predict academic

outcomes among Business Administration students?

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HYPOTHESIS

Alternative Hypothesis (Ha)

There is a significant relationship between self-reward spending

behavior and the academic success of Business Administration students.

Students who engage in self-reward spending such as buying themselves

gifts, treats, or experiences as motivation or celebration for academic

achievements—tend to exhibit higher academic motivation, better focus,

and improved performance. This behavior acts as a positive reinforcement

mechanism that encourages persistence, discipline, and a sense of

accomplishment in their studies. Additionally, the level and type of self-

reward spending are expected to vary according to demographic factors

such as gender, year level, and socioeconomic status, which may further

influence academic performance. Hence, this study posits that self-reward

spending plays a meaningful role in shaping students’ academic behavior

and outcomes.

Null Hypothesis (Ho)

There is no significant relationship between self-reward spending

behavior and the academic success of Business Administration students.

The study assumes that spending behavior used for self-reward does not
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have any measurable influence on students’ academic motivation,

performance, or outcomes. Furthermore, demographic factors such as

gender, year level, and socioeconomic status are presumed to have no

significant effect on the relationship between self-reward spending and

academic success. In this view, students’ academic achievements are

considered independent of their self-reward spending habits or financial

behaviors.

SCOPE, DELIMITATION AND LIMITATION OF THE STUDY

The scope of this research focuses on investigating the correlation

between self-reward spending behavior and academic success among

undergraduate Business Administration students enrolled at Westmead

International School during the academic year 2025–2026. Specifically, the

study explores how students engage in self-reward practices such as

purchasing food, entertainment, travel experiences, or personal items after

completing academic tasks, and how these behaviors relate to academic

performance. To achieve this, the researcher examines variables including

the frequency and type of spending, underlying motivations for self-reward,

and academic indicators such as grade weighted average (GWA), perceived

study effectiveness, and self-assessed satisfaction. Data collection will be

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conducted through a structured survey questionnaire to determine the

strength and direction of the relationship.

In terms of delimitation, the researcher has intentionally defined the

boundaries of the study to enhance clarity and feasibility. The investigation

excludes students from other academic programs and institutions, thereby

concentrating solely on 2nd year and 3rd year Business Administration

students at Westmead International School. Furthermore, the study does

not incorporate qualitative approaches such as interviews or focus groups,

nor does it examine long-term academic trajectories or spending behaviors

unrelated to academic milestones. Although external factors such as

socioeconomic status, financial support systems, and part-time employment

are acknowledged, they are not subjected to in-depth analysis due to the

study’s narrowed scope. These delimitations were established to ensure the

research remains manageable and directly aligned with the central inquiry.

Despite careful planning, certain limitations beyond the researcher’s

control may affect the validity or generalizability of the findings. One notable

constraint is the reliance on self-reported data, which may be influenced by

personal bias, exaggeration, or inaccurate recall. Additionally, the sample is

confined to a single institution, thereby restricting the applicability of the

results to broader academic populations. Time constraints also preclude

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longitudinal tracking, which could have provided richer insights into

behavioral patterns across multiple academic terms. Moreover, the survey

instrument may not fully capture the emotional or psychological nuances

underlying students’ spending motivations. Given the context-specific nature

of the study, its conclusions may not be transferable to students in differing

cultural, financial, or academic environments. These limitations are

acknowledged to promote transparency and inform future research

directions.

PEDAGOGICAL IMPLICATIONS

This study is significant as it explores the relationship between self-

reward spending behavior and academic success among Business

Administration students, providing insights into how financial and

motivational factors interact in academic contexts. Understanding this

relationship can help determine whether self-reward spending serves as a

beneficial motivational tool that enhances learning outcomes or whether it

leads to excessive or impulsive financial behavior that undermines academic

priorities.

For students, this study may increase awareness of how their

spending habits influence their academic motivation and performance. It can

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help them develop healthier approaches to self-rewarding—balancing

enjoyment, motivation, and financial responsibility. Research by Sabri and

Falahati (2020) highlights that young adults’ financial behaviors are linked

to both emotional and academic well-being, suggesting that self-rewarding

can shape study habits positively when managed properly.

For educators and academic advisers, the findings can serve as a

basis for creating guidance programs that encourage productive

motivational strategies, such as self-rewarding through experiences or

affordable incentives, without promoting overspending. It also contributes to

understanding the behavioral psychology behind student learning and

achievement motivation.

For school administrators and curriculum developers, the study’s

results may support the integration of financial literacy and behavioral

economics concepts into student development programs. By linking

financial behavior to academic success, institutions can promote holistic

growth that combines financial responsibility with personal motivation.

For parents and guardians, the findings can provide perspective on

how to guide their children’s spending habits constructively, fostering both

discipline and self-motivation. Awareness of self-reward behavior helps

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them understand how moderate autonomy in spending may encourage goal-

oriented behavior and reduce stress among students.

Lastly, for future researchers, this study contributes to the growing

field of behavioral finance and educational psychology by presenting

empirical evidence on the connection between spending habits and

academic performance. It can serve as a foundation for further research

examining how financial behavior and self-regulation influence academic

outcomes in other disciplines or cultural contexts.

DEFINITION OF TERMS

Academic Success — Refers to the level of achievement in an educational

setting, typically measured by grades, test scores, and overall academic

progress. It is the achievement of favorable educational outcomes, often

measured through Grade Point Average (GPA), course completion, and

active engagement in academic activities.

Behavioral Economics — Study of psychology as it relates to the economic

decision-making processes of individuals and institutions. A field of study

that explores how psychological, social, and emotional factors influence

economic decisions, such as spending behavior, which impacts students'

financial choices and academic motivations.

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Intrinsic Motivation — Is defined as the doing of an activity for its inherent

satisfaction rather than for some separable consequences. Motivation

stemming from internal satisfaction and personal drive to achieve academic

goals, which may be financed positively or negatively by external reward

strategies like self-reward spending.

Motivation — Is the driving force behind human actions that initiates,

guides, and maintains goal-oriented behaviors.The internal drive or desire

that influences students to engage in academic activities and reward

themselves after achieving goals or completing tasks.

Self-Efficacy — Is the belief in one's ability to control one's environment

and achieve desired outcomes. A student’s belief in their ability to

accomplish academic tasks successfully, which may influence their

likelihood to engage in self-reward spending as a form of positive

reinforcement.

Self-Reward Spending Behavior — Refers to a financial strategy where

individuals allocate a portion of their discretionary spending to savings or

investments. The act of purchasing goods or services as a personal reward

following effort or achievement, such as after completing exams or

accomplishing academic tasks. This may include spending on food, leisure,

travel, or personal items.

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Socioeconomic Status (SES) — It pertains to a person’s or a group’s social

class or social standing. The social and economic standing of a student’s

household, typically reflected in factors such as family income, parental

occupation, and access to financial resources.