ACADEMIA DE SOPHIA INTERNATIONAL

BAGUIO CITY
A Research on Allowance Budgeting and Spending Behaviours of High
School Students of Small World Christian School Foundation and
the applicable Budgeting Method
Soriano, Maria Angela B.
Grade 11

Background of the Study

Financial management or budgeting is by knowing the right
thing to do with money. It is being a wise spender, knowing
where, what and how to spend. It is also basically buying not
always the want but the need of oneself. Recent studies say that
83% percent of teenagers do not know how to budget their money.
Scientifically 83% of our population creates a big impact to
achieve the success of developing country.(Tugger, 2012) On this
research we will discover how teenagers manages their allowance
and what they spend it on. Experiences and lesson will be
provided to the reader on how teenagers should manage their money
properly. The earlier a person from childhood realizes the
importance of saving for the days when in need of money for
emergency purposes, without asking help every time they need
something vital. Learn how to appreciate the value of our own
saving by working for its good to patiently wait but its better
when a person works for it. And let it grow, by learning how to
invest it properly. It is necessary for teenagers to learn how to
save money and to increase their financial quotient. Learning to
save, invest and spend wisely are three important measures of a
persons financial quotient.
There is a study that says that 87% of teens admit that that
they dont know a lot about personal finance, according to ING
direct. (Tuggle,2012) A study says that the problem with people
these days is that they blame the government for their poverty
and becomes lazy struggling and learning to appreciate

on how to stand on their own two feet without asking help

every time they need something, building businesses, create jobs
and bless the world. Poverty shouldnt be blamed or any
politician or any form of government. If everyone wants financial
growth all have to move and find ways and means to achieve
success. (Sanchez, 2008)
Parents can spend anywhere between P25,000 and P30,000. And
college students spend mostly on lunch, merienda, average for
photocopies and school requirements.(Canlas,2014) Managing money
is a skill, not a talent you can inherit, it needs sacrifice,
patience, perseverance and passion. Other people can be more
mathematically or organizationally inclined and find finances but
with focus and understanding will develop skill in proper
management of finances (Sheppard, 2015). Because only you and God
working on you can create the wealth you want.
This is why teenagers have to be trained about proper
budgeting. This research will reveal how high school students
spend their allowances. And help to find out the necessary tool
for a proper financial management or budgeting. There is a study
by the Organization for Economic Cooperation and Development who
found out that the United States ranked number 9 out of 18
countries in financial literacy among 15-year old students.
(Lerner, 2014) An organization called the Charles Schwab Corp is
a foundation on teen financial literacy, joining Boys & Girls
Club of America to educate teens about personal finance and
investing. More than half a million teens are changing their
financial ways with the program, and this has been adopted by
over half of the 2,700 clubs. The results is that teens who
joined the program showed gains in 50 out of 53 in their subject
areas.(Geer,2014) 18% of American students never achieved a basic
level of financial proficiency in the survey, that means that
they will struggle with a lot of financial management tasks.
(Palmer, 2014).
Wise management of finances will help to the success of
oneself. This research will help the teenagers to be more wiser
in spending and budgeting their allowances. More than 10% of
teens said that no one guides them at home.(Mielach,
2012)Financial management strategy for teens or having a plan for
budgeting is first financial management, when teenagers get their

jobs and start earning their money. It is important that they

start managing their own finances. A lot of people are having a
hard time learning how to handle their cash properly. It is vital
to teach the youngsters as early as possible to manage their
finances in order to avoid teenagers to be mislead. Proper
learning on how to save money and spending it on things that are
appropriate and needed has a big impact on their peers. Second is
earning money, to know how to take care of their personal money
and correctly use it in their life. Money makes the world go
round but it shouldnt control a person. Rather the person itself
must be the one in control. Third is that teenagers should save
money for their future. Letting them learn to be independent and
stand on their own.
Teenagers must learn to initiate on how to earn money.
Anticipation and initiative is also very important to be ready
for the expenses theyll be facing in the future. Fourth is
Budgeting is a part of saving, learning how to budget and
spending wisely on needs rather than spending on unnecessary
things. Fifth forced savings, to avoid being pinned to the wall
when the funds is depleted. Working teenagers spent on time and
energy to earn money, and it makes a lot of sense that teenagers
want to enjoy it. It is not bad to spend some of your money, but
it is never good to spend all of it. It is better to save money
and still have half the money earned for budgeting and spending.
Sixth is for a teenager to open a bank account. Having a savings
account will make the money safe and recorded but it will not
earn in the bank. Stocks and insurances can be good investments.
These are few financial management strategies. The objective of
this study is to know how teenagers spend their allowance and to
lead them to the proper way of managing their money. How is it
related to ABM? Business and Management- because teenagers these
days do not know how to manage their cash,in ABM we deal with
business that involves money and how to manage it. In this early
age of life, understanding the flows of money will help open
their minds that money doesnt come easily it has to be earned
with independently and with hard work.

Statement of the Problems and Hypotheses

Most teenagers these days do not have proper knowledge about
personal finance, even when it is easy as the difference between
a credit card and a debit card. It is also necessary to add
important points in financial management or budgeting among the
students curriculum. (Lerner, 2014) Where do teenagers spend all
their money on? A study by Piper Jaffrey polled that more than
8,000 teenagers spend on everything from where they eat to what
gadget or headphones they want to use. Teens still rely on their
parents for more than half of the money they spend.(Durisin,2013)
Where do students spend their allowance? Teenagers spend their
allowance at home, school, malls, and the things that they really
want, not more on need.
Furthermore the researcher seeks to know on how high school
students manage and spend their allowance this school year 20162017. The study wil1 specifically answer the following questions.
a. How do high school students budget their allowance?
b. What and where do high school students spend their
allowance?
c. When do high school students usually spend their
allowance the most?
d. What financial management strategy will apply to the high
school students for them to efficiently spend their
allowance.
Hypothesis:
H1: The researchers hypothesis is high school students
are incapable of managing their allowance.
H2: High school students spend their allowance mostly
on their wants and less on their needs.
H3: The financial management strategy applicable for
high school students is for them to know how to balance
their expenditures.

Scope and Delimitation

Financial management is not just for adults, but also for

the youth. And at a young age kids must know how to manage their
finances. This study focuses on knowing how teenagers manage
their allowance and their expenditures.
The scope of this study is a qualitative research which will
analyze the financial attitude of teenagers towards on how they
spend their allowance and how to deal with it.

Methodology
Research Design
The researcher will use descriptive qualitative approach.
There will an interview conducted to a group of participating
students, and will evaluate on how high school students deal with
their expenditures whether its a want or a need.

Population and Locale of the Study

The respondents are the high school students of Small World
Christian School Foundation. The specific population is chosen
because 13-16 years old is the pinnacle of financial management.
Data Gathering Instrument
The researcher will use a self-made financial management
interview guide that aims to measure on how much high school
students spend their allowance.
Data Gathering Procedure
The researcher will follow this procedure for the study:
1.

The researcher will ask permission from the school head

of Academia De Sophia International Ms. Jennifer A.
Cortez. A letter of intent will be made to administer the
interview to the high school students of enrolled this
2016-2017.
2. The researcher will administer the interview to the
high school students of Small World Christian School

Foundation, prior to that the researcher will give

instructions and reminders to students.
Treatment of Data
In order to determine on how high school students spend
their allowance. The researcher will analyze and evaluate
them qualitatively to find the results.

References
Tugger K.(2012) 83% of Teens Dont Know How to Manage Money.
Retrieved August 23, 2016 from
http://www.foxbusiness.com/features/2012/07/17/teaching-gap-83teens-dont-know-how-to-manage-money.html
Sanchez Bo.(2008) 8 Secrets of the Truly Rich. Retrieved August
27, 2016 from
http://lifemanagement4filipinos.weebly.com/uploads/1/2/0/6/120621
85/8secrets.pdf

Indorsed by

_______________________________
Jemimah Keren S. Diamas,
Research Adviser

Noted by:

Jennifer A. Cortez, MA ESL

School Principal