COGNIZANCE IN BUDGETING PROFICIENCY OF SENIOR HIGH SCHOOL

STUDENTS OF QUIRINO STATE UNIVERSITY LABORATORY HIGH

SCHOOL

A Research Paper

Presented to:

The Faculty of Quirino State University

Laboratory High School

Diffun, Quirino

In Partial Fulfilment of the Requirements for

the Subject Research for Daily Life 1

Presented by:

Frances Joan Siddayao

Francis Palacpac

Jasser Ramirez

May 2019
 Chapter I

INTRODUCTION

A. Rationale

Nowadays, going to senior high school is an important part of any person’s

life. It needs to be put in mind and be an attitude. One of these responsibilities is

managing their allowance. One of the challenges that every student encounter is to

cope the money their parents provide them. Many students are having a hard time in

terms of budget their allowances. Money as one of the main necessity plays a

significant role in every student.

Furthermore, allowance is a necessity for every student. 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 (Micomonaco, 2003).

The problem is how to do it. Doing so isn’t easy since students need to manage their

allowance between their needs and wants. Also some only have a limited account of

money. Proper budgeting is important. If done responsibly, it can give both the

students’ needs and wants.

According to financial behaviourist Syble Solomon on her study “Journal of

Financial Therapy” many students run into budget issues when they begin making

decisions, based on emotions in the moment. “Students need to think through the

‘what if’ questions and be prepared for situations when they will spend money

without thinking,” she says. “What if your friends are going to a concert where tickets

cost $100 and you hadn’t planned on that expense? What if your friends are planning
an amazing spring break that is way more than you planned to spend? By being aware

that things like this will pop up from time to time, you can be better prepared and not

throw your budget out of order.”

Hence, this study focused on the students of Senior High School of Quirino

State University-Laboratory High School in doing their budget daily. This study will

also benefit the students as well as helping them to improve their budget planning,

make a recommendation based on the respondents what are the best things to do in

budget their allowances and also the things that they need to change in their budget

planning.

The main purpose of this study is to find answers from the respondents as to

how and where they spend their money every day. Budget as the main subject of this

study will focus on the proper allocation of allowances of every student in order for

them to properly utilize their daily, weekly or even monthly allowances. Of course

budgeting will be different depending upon the student. Budgeting will be more

crucial most especially if the student is living in a dormitory wherein he himself is the

master budget of his daily needs.

Probably, 10 years from now that will be prominent and benefit the people

by this study. Automatically, give the narrow solution towards students in facing their

financial constraint and a stuff of citing this study to help student in their daily

marking money management.

 B. Statement of the Problem

This study employs the following statement of the problem to address the issue

on Optimizing Effective Budgeting of Senior High Students of Quirino State University

Laboratory High School.

1. What is the profile of the Respondents in terms of;

a) sex;

b) age;

c) strand;

d) allowance(per week) ?

2. What are the personal budgeting practices of senior students as to:

a) transportation;

b) food;

c) projects and books;

d) communication; and

e) savings?

3. What is the significance of difference/relationship of “Cognizance in Budgeting

Proficiency of Senior High School Students of Quirino State University

Laboratory High School”?

C. Objectives of the Study

The following are objectives of the study in marking budget management

of Senior high student.

1. determine the profile of the Respondents in terms of;

a) sex;

b) age;

c) strand;

d) allowance(per week).

2. determine the personal budgeting practices of senior students as to:

a) transportation;

b) food;

c) projects and books;

d) communication; and

e) savings.

3. determine the significance of difference/relationship of “Cognizance in

Budgeting Proficiency of Senior High School Students of Quirino State

University Laboratory High School”.

D. Null Hypothesis

There is no significant difference on the Cognizance in Budgeting Proficiency

of Senior High School Students of QSU-Laboratory High School when grouped by

their profile.
E. Significance of the Study

This research focuses on the significance of different point of view of the

users such as the students, the parents, the administration, teachers or professors and

the researcher.

Students. As engaging schools individual expenses, this study brings

perception onwards finance budgeting and its prominence effective idea to have

money management skills. This is "here the significance of allowance budgeting

practices exists, to know; means to survive within daily allowance, ways to avoid

over spending and having debt, allowance budgeting practices that they do; suit to

their lifestyle and live within their means.

Parents. Parents has different opinions about giving allowance to their

children, because they believe that they should provide the needs of their children and

also believe that giving their children allowance is a good way to teach them on their

financial responsibility. This research will give them idea on the amount of money

they will allocate to their children and to monitor, on how their children spend their

allowances in the different variables given.

Administration. Through this research, the school administration will be

informed and have idea on how they will formulate the class schedule of the students,

that is one of the significant variables given, that affects the allowance budgeting

practices of the students.

 Teachers. One of the variables given is the project that is usually given by the

teachers. This study has significance to them, to know the allowance budgeting

practices of the students regards to the projects. The sum that the students give up or

practices that they set aside, enabling them to comply.

Researchers. We, the researchers, the study itself is significant to us, not

only, it is required for us to conduct but also it give us the awareness and a chance to

inform the users of the research, on how the variable; Transportation, Foods,Projects,

Communication and Savings perceive the idea of students’ budgeting practices. Also,

it enhances the students’ awareness as to the importance of planning a budget. They

say the key is financial success is to be well aware of how to spend your money.

F. Scope and Delimitations of the Study

This study will be conducted to reinforce financial literacy budget of

Senior High Student. Specifically, this endeavour will be conducted at Quirino

State University Laboratory High School during the second semester of school

year 2018-2019.
 G. Conceptual Framework
INPUT PROCESS OUTPUT

 Survey  Data
questionnaire Interpretation
 Data gathering  Formulation of
Respondent’s Profile  Statistical conclusion
procedures  Recommendation
Questionnaire to budgeting
practices of the
students.

Intervening Variables:
a. Age e. Transportation
b. Sex f. Food
c. Grade Level g. Luxury and Leisure
d. Allowance per day h. Projects and Books
i. Communication
j. Savings

Figure 1. Conceptual Framework of the Study

The diagram above presents the conceptual framework of the study titled

“Cognizance in Budgeting Proficiency of Senior High School Students of QSU-

Laboratory High School”.

H. Definition of Terms

Allowance - is an amount of money given or allotted usually at regular intervals for a

specific purpose.

Budget - is quantitative plan used as a tool for deciding which activities will be

chosen for a future time period.

Budgeting - budgeting is a process. This means budgeting is a number of activities

performed in order to prepare a budget.

Budgeting Practices - the usual habit of students in spending their allowances and

managing their finances.

Cognizance- it is a state of being aware or the knowledge gain by personal

experience.

Communication - means of connection between people or places, in particular.

Proficiency- it defines a state of being proficient which well advanced in some

particulars of being practiced.

Savings- a methods of saving include putting money aside in a deposit account for

example bank account.

Transportation- means of public conveyance of passengers or goods especially as a

commercial enterprise.

Chapter II

REVIEW OF RELATED LITERATURE AND RELATED STUDIES

This study presents the Review of Related Literature of the study.

A. Review of Related Literature

a) Local Literature

According to ABS-CBN editorial report entitled “How students can

maximize their daily”. Manila, Philippines – Students spend a bulk of their

allowance on mobile phone load, food and transportation, but a financial adviser

said there are a number of smart ways to maximize their daily allowance.

On ANC’s “On the Money,” Salve Duplito said maximizing a daily

allowance takes effort and discipline, and may require small changes in your daily

routine. To avoid spending much on prepaid load, for instance, Duplito advised

sending emails or using the landline instead of sending text messages when you

are at home.

“If you have Wi-Fi at home, email instead of sending text messages. Use

the landline; don’t let your fingers spend all your money. Small expenses bunch

up to big nightmares over time, spend more time talking to your friends face to

face rather than on the phone,” she said.

 Messaging apps that allow free text and calls are also useful when trying

to cut down on expenses. For food, Duplito suggested bringing cooked food

instead of buying meals.

She said even Makati yuppies have adopted this practice to save on their

daily spending. Commuting to school also costs time and money to students, and

Duplito suggests that time management and planning play important roles for

more efficient travel. “Wake up early and plan well so that you have plenty of

time to take public transportation,” she said.

Duplito said there are two ways to make a big impact on finances:

increasing income or reducing expenses. “If you want to maximize your

allowance, you have to do both,” Duplito suggested. She recommended tracking

down weekly expenses on a notebook to monitor the items bought, cost per item,

and time it was purchased.

“At the end of the week, your notebook should tell you exactly how

much you are spending and on what, and what time you are most vulnerable to

frivolous expenses,” she said.s

b) Foreign Literature

According to an article of Federal Student Aid of U.S Department of

Education, it gives seven guidelines to help in successfully building and managing

a budget.
 Creating a budget may sound complicated, but all you need to do to get

started is set aside some time and get organized—the benefits will make the effort

worthwhile. The following steps will help you set up your budget and manage

your finances by helping you track your income and expenses. Determine a time

span for your budget such as you can create your budget for a month, academic

year, or calendar year. If you are currently attending college or career school, you

may want to consider creating a monthly budget for an academic term, such as

your fall semester. Keep in mind that your income may vary from month to

month, and not all of your expenses will be the same each month. Larger expenses

(such as car insurance and books) and seasonal expenses (such as a trip home at

the holidays or a higher electricity bill in summer when the air conditioning is on)

need to be incorporated into your budget. Choose a tool to help you manage your

budget such as creating a budget; you’ll want to use a tool for tracking your

income and expenses. You can use pen and paper, a simple automated

spreadsheet, or a budgeting app. Many banks offer budgeting tools, so see what

works best for you.

Review Your Monthly Income. First, estimate how much money you

will have coming in each month. Here are some tips for assessing your income.

Your income may come from sources such as your pay from work, financial

contributions from family members, or financial aid (scholarships, grants, work-

study, and loans). If you’re working while in school, review your records to

determine how much your take-home pay is each month. If you earn most of your

money over the summer, you may want to estimate your yearly income then
divide it by 12. Include income from any financial aid credit balance refunds—

money that may be left over for other expenses after your financial aid is applied

toward tuition and fees.

Save for Emergencies. Include “Savings” as a fixed expense in your

monthly budget. Pay yourself first every month! Your savings can be used as an

emergency fund to help you deal with unexpected expenses. The ideal amount of

an emergency fund typically covers three to six months of your expenses. Balance

Your Budget.

Now that you’ve identified your sources of income and expenses, you’ll

want to compare the two to balance your budget. To do so, you simply subtract

your expenses from your income.

Total Monthly Income $1,655

Minus Total Expenses $1,717
= + / - Difference ($62)

If you have a negative balance, then you are spending more money than

you have. You’ll want to balance your budget and make sure your expenses don’t

exceed your income. Balancing your budget may include monitoring your

variable expenses, reducing your expenses, and/or finding ways to increase your

income. Spending less can be a lot easier than earning more. Consider eating out

less frequently and making your own lunch. Rent books rather than buying them,

or buy books to download to your computer. Use a shopping list when grocery

shopping, and buy only what you need. Ask yourself before buying anything, “Do
 I really need this?” Maintain and update your budget such that reviewing your

budget on a monthly basis.

B. Review of Related Studies

a) Local Studies

A study was conducted in University of Santo Tomas comparing the

allowance and budget of College of Fine Arts and Design students. It seeks to

describe how much allowance is given to CFAD students in general, where they

spend it and at the same time how they budget it. It illustrates the attributes of

students towards financial matters.

At the end of the study, the researchers were able to dram their

conclusion that students spend based on the priority they are following. The study

recommends that parents must be aware of the spending habits of their children

and where most of their allowance goes.

Both parents and students must understand the importance of savings

and should try to take means to save money. The institution should conduct

further studies to evaluate students’ issues and make adjustments for the benefit of

all the students.

b) Foreign Studies
 Based from Armstrong Opoku in his study “Financial Literacy among

Senior High School St dents Evidence from Ghana” when he was in School of

Business, College of Arts and Social Sciences.

The study assesses the level of financial literacy of Senior High School

students in the Kumasi Metropolis. The study surveyed 320 students to investigate

their level of financial literacy through the administration of questionnaires.

Findings from the study reveal that students need to improve their personal

finance knowledge. The results show that the students answered about 48.7% of

the questions correctly. The results also reveal that many of the students are seen

to be familiar with issues relating to simple interest, compounding and loan

guarantee. In contrast, the students are less knowledgeable and inexperienced with

issues concerning personal financial planning, budgeting and overdraft.

The incompetency exhibited by the senior high school students

therefore limits their ability to make sound financial decisions and hence more

likely to have financial related issues in the real world. The low level of financial

literacy could also make small financial issues become overwhelming which

could turn into financial stress and consequently affects the other aspects of live

such as personal relationships or performance at work. The low level of financial

literacy and its consequences then shows the need for stakeholders in educational

system to put policies in place to ensure that the level of financial literacy among

senior high students in Ghana is improved since financial literacy has essential

implication for future behaviour. It is recommended that personal finance literacy

course is well elaborated in the academic curriculum of senior high schools. Also,
 the national financial literacy week should be extended to school as workshops to

encourage student’s participation in financial literacy.

Chapter III

RESEARCH METHODOLOGY

This chapter presents the research approach on conducting the study which

consists of methods of research used, population and sampling, research instruments, data

gathering procedures and statistical treatment.

A. Research Design

The researchers adopted the descriptive research. Descriptive research

is used to describe characteristics of a population or phenomenon being

studied. It does not answer questions about how/when/why the characteristics

occurred.

Descriptive research does not fit neatly into the definition of either

quantitative or qualitative research methodologies, but instead it cans utilize

elements of both, often within the same study. The term descriptive research

refers to the type of research question, design, and data analysis that will be

applied to a given topic.

B. Research Environment

There are a total of 266 students from QSU-Laboratory High School.

Stratified sampling will use to divide the population into strata (sub-group) in

terms of program. In order to get the sample size, the researchers used the

Slovin formula. Through this, a sample of 159 students will obtain.

The population is composed of 76 STEM 11, 39 STEM 12 students, 34

TVL-ICT 11 students, 37 TVL-12 ICT students, 49 TVL- HE and Agriculture

(11) students and 31 TVL- HE and Agriculture (12) students.

Table 1. Distribution of Samples

Programs No. of Respondents

I
STEM-A 11 46
n
ICT 11 20

ICT 12 22
c
TVL- HE and Agri (11) 29
o
TVL- HE and Agri (12) 19
n
STEM Grade 12 23
d
Total Sample: 159
u

C. Research Instrument

Imn conducting the study, the researchers prepared survey questionnaire

as the main tool in gathering data. The survey questionnaire is divided into three
 parts. First, the profile of the respondents to identify the information needed for

statistics. Second, the parameters or metrics used, for the respondents to identify

the measures in answering the questionnaire. Third is the structured questionnaire,

where the respondents will measure each statement in the questionnaire.

D. Data Gathering Procedure

In order to collect data, the researchers distributed survey

questionnaire for the respondents. An explanation about the purpose of the

study and clarifications as to items and statements included in the survey

questionnaire will also provide. The respondents are given enough time to

appreciate and comprehend the statements in the questionnaire. Data gathered

from the survey conducted are then tabulate and interpret using various

statistical tools. The results were used in coming up with the conclusions and

recommendations.

C. Statistical Tool

The data that gathered from the senior high students-respondents is

arranged, tabulated, analysed and interpreted through the use of the following

statistical treatments:

1. Frequency counts and percentages. This will be used to summarize the

data by counting the responses for each level of a given variable. These

counts or frequencies are called the frequency distribution and are

 commonly accompanied by the percentages and cumulative percentages as

well.

2. Mean. This will be used to establish the distribution of the mean on

“Optimizing Effective Budgeting of Senior High Students of Quirino State

University Laboratory High School.

3. T-test. This will be used to determine the existence of significant

difference on the interest levels when they are grouped by variable like

sex.

4. Analysis of Variance (ANOVA). This will be used to analyse the

variance of the age and ethnic affiliation.

5. Statistical Package for the Social Sciences (SPSS). This will be used to

determine the statistical data’s under statements on questionnaire.