A DESCRIPTIVE RESEARCH ON HOW TO SAVE MONEY FROM

ALLOWANCE OF SELECTED JUNIOR STUDENT

OF DIPLAHAN NATIONAL HIGH SCHOOL

Submitted to:

Rodolf John T. Rodriquez

Grade 10 English teacher

Submiited by:

Angel Faith C. Cabaylo

 Chapter I

Introduction

Money is a fundamental and indispensible tool to live in a materialistic

world. Only a wise person truly knows the value of it. Businessmen are people

who use their money only when it is necessary. However, they also know when

to invest a lot of money unto something they know will be useful in the future. In

fact, all people in different fields have their own ways to spend and save their

money.

Money plays a vital role in every person's life. It is the medium used for

exchange, unit of account and store of value (dictionary.com). It is used to buy

goods and materials that are necessary in life. It can also prevent the sufferings

that come with poverty like cold and hunger, give satisfaction, provide education

and even power. Without it, one cannot buy anything he needs and wants. In fact

according to Ayn Rand, money is the source of survival. She explains in her book

Atlas Shrugged that the source of a person's livelihood is the verdict he

pronounces in his life.

As prices of commodities become higher, money has gained more value

today. Additionally, there are only few materials left that cannot be bought by

money. This is why it is very important to spend it wisely. Still, using money

doesn't end from spending, it is also very essential to save wealth for future use

and plans.
 Students on the other hand, learn to save their allowance as they grow

and meet different requirements in school as well as things they want to buy for

their own. Budgeting is one of the practical skills that come in useful for them. It

helps them to attain a better understanding of financial matters that would

become handful in their future.

However, with escalating responsibilities and opportunities as they go

towards higher level of education, particularly in college, it becomes very

challenging for students to manage their money. Projects or requirements and

transportation are not the only things they need to worry about, there are the

housing, food and supplies together with socializing. With their young age and

lack of experience, it might be hard for college students to budget their allowance

on their own. In fact according to a research of Westwood College in U.S., most

college students spend the least of their allowance in transportation, books and

supplies but spends 40% on discretionary activities- entertainment, apparel and

services, travel and vacation.

Additionally, expenses of junior students also depend how they can

manage . Some students particularly, are expected to spend a lot of money for

the expensive materials they use on their subjects. Recognizing this, the study

therefore aims to know how students budget their allowance. The researchers

decided to survey selected junior high school student of Diplahan National High

School.
 The significance in the discovery of how much a student can save money

from their allowances. Upon the information, the researcher will be able to

determine the same qualities or habits that each has and the traits that will create

the contrast of selected junior high school student.

Objectives

The researcher seek to describe how much allowance are given to junior

high school students in general, where they spend their allowance and how at

the same time they budget it. This will illustrate the attributes of the students

towards financial matters. The study also aims to benefit students, parents and

the Diplahan National High School upon the information gathered on the end of

the study.

Statement of the Problem:

This study is aimed to find out how much the Students of the Diplahan

National High School spend weekly by conducting a survey specifically to

address to the selected junior high school students during the school year 2017-

2018.

Especially, the study sought to answer the following questions:

1. Is there any difference of how much a selected junior student

spends depending on their needs?

2. Is there any significance on knowing how much a selected junior

student spend?
3. Is there significance on how the students allocate their budget?

Importance of the study:

The study deals with the everyday allowance of selected junior

students. It seeks answers as to how and where the respondents spend

their money every day. Considering that money is an essential commodity

that helps a person to run his or her life, this study is significant for it will

benefit the junior High school students, their parents.

•Junior High School Student:

This study is beneficial for Junior high school students to appraise

their practice of spending money. First, this will inform them where

students like them generally spend their money with. Upon this

information, this study can enlighten them on how to use their allowance

wisely.

• Parents:

This study can benefit the parents by providing insights and

information about the allowance they give to their children and how and

where they generally use it. This study can inform them as to how much

allowance is accurate for their children to use it for their needs.

 Chapter II

Related Literature

One of the articles which has attracted researcher's attention is a term

paper written by Mohamad Fazli Sabri and Maurice MacDonald (2010) entitled

"Savings Behavior and Financial Problems Among Junior High School Students:

The Role of Financial Literacy in Malaysia". They demonstrate that students who

had higher financial knowledge were more likely to report savings behaviour and

also reported fewer financial problems.

According to them, students with financial knowledge promote better financial

management whether or not they can afford to indulge themselves during the

college years. The study done by Cunningham, 2008; Nellie, 2009 point out

those students entering their university education without ever having been

responsible for their own personal finances. While in the college or university

students have to manage their own expenditures. Student's ability to manage

their financial resources is very important for everyday life activities. Financially

educated people are able to make better decision, thus lead to higher financial

security (Hilgert and Hogarth, 2009).

Recent studies are mostly focus on the financial planning of university students

because many of them fail to plan their expenditure and unexpectedly experience

financial problems. While many worries of the importance of financial education,

Brennan and Ritters (2008) indicated that, financial education plays a key role in

financial empowerment. Many researchers have suggested that a lack of

financial knowledge and skills results in students' experiencing financial

problems. Norvilities et al. (2009) and Hilgert and Hogart (2008) indicated that,

financial knowledge is one 16 of the strongest predictor of financial behaviour

among university students. Financial education or knowledge should be based

on the needs, interests, and abilities of each student. Clearly, more financial

education is needed for young adults to better the economy.

Researchers have conducted studies on the parental role of a child's financial

education. The trend in research demonstrates that a child's most significant

source of financial knowledge comes from their family. Danes, Sharon M. (1994),

points out that parent plays an essential role in transferring knowledge of the

realistic and sensitive aspects of money. Young people experience difficulty in

practising good financial guidance. In addition, many parents thought that they

can influence or encourage their children spending habits due to peer influence.

The family is the source for most of a child's financial knowledge and provide the

most deep-seated education. Clarke, et al. (20011) found that the poor financial

habits of parents commonly present themselves in their children's lives. He

added parents have the responsibility to guide and educate their children to

create and maintain on mature responsibilities and tasks. Some parents may not

feel comfortable with their own financial situation therefore it may be difficult for

them to talk about the matter with their children. Children watch and model their

parental figures. If more parents could factually educate their children about

finance, children may be less likely to develop poor habits. Parents can help

children become effective money managers and responsible buyers by teaching

them money management skills from an early age. It is suggested by Clarke, et

al. (2005), young adults feel more equipped to manage their 17 own financial

responsibilities if they received a good education on the subject at home, thus it

shows that the best educations starts at home.

An allowance should be a specific amount of money, decided by both the

student anparent, and given at a specific time, such as weekly or monthly. As

student's age increase, they will probably have more money under their control

and become more responsible for their personal spending. Also they tend to

appreciate more the goods and services they buy with their own money,

especially if they have saved for them over a period of time. An allowance can

help eliminate the problem of parents having to say uno" when their children ask

for money regularly. It is an important tool for teaching money management skills

of how students manage their own money based on their needs, wants and

goals. Students should have control over how the allowances is spent or saved.

Parents can encourage their children to make careful spending decisions and

plan the use of their money. An allowance can help make students independent

and give them confidence and self-discipline in handling money.

Saving money for an emergency fund is important for everyone at all times.

Having a savings account for emergencies can prevent financial disaster in the

event of student's unemployment after graduate. An emergency fund can come

in handy any time students experience a shortage in income or an increase in

expenses. An emergency fund can also help students avoid using their credit

cards or incurring debt to pay for emergencies that arise. Dave Ramsey, an
outspoken radio talk show and television show host who teaches a course called

Financial Peace University, suggest on his website Dave Ramsey.com, that

people should have a starter emergency fund of $1000.00. Ramsey suggests this

serve as emergency fund until they have paid off all of their high interest credit

card debt, at which they should begin building a full savings account for

emergencies.

There was a survey done by Varcoe (1990) for 934 households in

California regarding methods for meeting unexpected expenses or emergency

expenses. He found that they use regular savings; 22 percent used emergency

savings; 14 percent borrowed money from a financial institution; and 8 percent

borrowed from friends or family. Therefore

saving now or saving earlier can certainly be a good starting point and can help

student cope with those minor emergencies that crop up in day-to-day life.

Building an emergency fund for unexpected needs is important.

 CHAPTER 3

Methodology

The purpose of the study is to determine the allowance and the use of

money management practices of selected junior high school students od

Diplahan National High School. The objectives of this chapter is to (1) describe

the research methodology of this study. (2) explain the sample selection and (3)

describe the procedure used in designing the instrument and collecting data.

I. Research Design

A. Research Method

In order to gather the necessary data, the researchers used

descriptive method. It includes techniques that are used to summarize and

describe numerical data for the purpose of easier interpretation (Kazmier, 2004).

A survey was administered to 200 randomly selected students from the

University of Santo Tomas College of Fine Arts and Design. A survey is a non

experimental, descriptive research method (University of Texas). It is an

important tool for collecting and analyzing information from selected individuals. It

is widely accepted as a key tool for conducting and applying basic social science

research methodology (Babbie, 1997). Thus, it can be useful when a researcher

wants to collect data on a phenomenon that cannot be directly observed.

B. Research Instrument
 The researchers designed a questionnaire survey instrument to assess

the money management practices of selected junior high school students.

Compared to other methods, questionnaires yield a broader range of information.

It is usually faster and cheaper than interviews and direct observations. It is also

important to note that questionnaires provide reliable data that are simpler to

administer, analyze, quote and interrelate. The researcher, therefore, opted to

use this kind of instrument considering the desire to obtain first hand data from

the respondents so as to formulate rational and sound conclusions and

recommendations for the study.

I provided a series of question corresponding to the research and to

determine each individual’s lifestyle according to their expenditures.

II. Sampling Design and Respondents

A. Sampling Design

The researchers designed a survey-questionnaire aimed to know

know how much the allowance of the respondents is in general, how and where

they spend it to and how they budget it. These questions will then illustrate the

attributes of the students towards financial matters and point out the differences

of students respective to their chosen course and financial knowledge and

practices.
Below is the sample questionnaire:

Allowance and Budget of junior high school Students

Instructions: Check your respective answers in each question.

Gender: _F_M

Grade:

__ Grade 7 __Grade 8

__ Grade 9 __ Grade 10

1.How much is your daily allowance?

__ 10-20

__ 20-30

__ 30-50

__50-100

2.Do you live in a boarding house /apartment?

__Yes __No

4. Do you make/ write a budget plan?

__Yes: __Always __Often __Sometimes

__No, Never
5. If so, do you follow it (budget plan)?

__Yes: __Always __Often

__Sometimes __No, Never

6.How much money do you spend for your food every day?

__PHP10-20

__PHP20-30

__PHP30-50

__ PHP 50-100

__ Php 100-150

7.Do you bring packed Lunch in school?

__Yes __No

If yes, how much money can you usually save? php____

8.How much money do you usually spend on your projects/requirements

__20-50

__50-75

__75-100

__100-200
9.Where do you think does most of your allowance go to?

__food

__art materials (paint, papers, boards, etc.)

__ printing (for research papers, plate references, etc.)

__ transportation

___entertainment/ recreation (computer shops, cell phone load, ‘gala’, etc.)

__ savings

10.Do you always try to save money?

__Always

__Often

__Sometimes

__ Never

11.If so, how much can you usually save?

__PHP 10.00 - PHP 50.00

__ PHP 50.00 - PHP 100.00

__PHP 100.00 - PHP 200.00

__PHP 200 Above

B. Research Respondents

The participants for this study is a selected junior high school students of

Diplahan National High School school year 2017-2018 o. The students is divided

into four grade 7, 8, 9 and grade 10. The researcher have therefore randomly

chosen 20 students in each grade to conduct the survey unto.

 CHAPTER 5
Summary of Findings, Conclusions, and Recommendations

This chapter presents the summary of the findings, conclusions from the

research, and also recommendations for future researchers of this topic.

This study was taken at the Diplahan National High School particularly

with the Grade 7. Grade 8, Grade 9 and Grade 10 students pertaining to the topic

about how to save money from their allowances.

In this chapter, the following questions will be answered: (both from

students who stays in a boarding house and ones who go home)

• In the Junior High School students , from what grade has the

students who are spending a lot?

• How do students from the Diplahan National High school budget

their daily expenses?

• What are their priorities in spending?

Summary of Findings

1. A. The average daily allowance of Junior High School Students respective

to their grade

• Grade 7: Php 20.00

 • Grade 8: Php 40.00

• Grade 9: Php 50.00

• Grade 10: 100.00

Based on their respective grade, the Grade 10 were found to have the

highest average of daily allowance.

B. Daily Allowance of all Junior High School Students

• The Daily allowance of the majority of students has the amount

ranging from Php 50- 100 or a percentage of 37%.

2. The average amount of allowance spent on transportation

• Based on the research gathered, the researchers found out that out

of the total population of the students who took the survey, almost 20% lives in

the dormitory and the remaining 80% goes home every single day. In addition to

the students going home every day, majority of the students answered that they

spend Php 10.00-50.00 daily.

3. Amount of Money Spent in Food

• It was found that the majority of 47% spends php 50-100 in their

food while minority only spends Php. 20-50.

4. Amount of Money Spent on Materials for Projects

 • It was found that the majority of the overall amount of money of

Junior high school students spends for their projects ranges from Php 50-100,

and the rest only spends 20-50

5 .Budget Plan

• Female and male students were intentionally counted separate to

observe and to know if there is a difference. But both majority of male and female

was found that they make a budget plan every day. The difference was majority

56% of male said yes and a majority of 57% in females. There is only little

difference in terms of majority.

• Both female and male students follow their budget plan and also

there is little difference between the majorities that said yes. Almost all of the

students (97%) was found that they save money every day and only very little

(3%) said no.

• Amount of Savings of Junior High School Students:

Majority of students (38%) was found that they can save money ranging

from php10-50. Followed by 23% of students who can save amount ranging

from Php50-90. Minority of the students saves php90-130 from their allowance

Conclusions

Based on the findings derived from this study, the following conclusions

were drawn:
 1. Findings showed that based on their respective grade level, the

Grade 10 students were found to have the highest average of daily allowance,

second is Grade 9, followed by Grade 8, and Grade 7 as last.

2. The grade level correspond on their allowances, since the findings

shows the difference on their allowances based on their needs. It can be derived

that the grade 10 students has the highest expenditures among all junior high

school students. The average amount of all the junior students ranges from

Php20-100. Most of their allowance go to food, transportation and art materials.

3. Less than half of the junior students live in a boarding house

therefore making a big difference on their transportation expenses when they go

home.

4. Almost all Junior high school students are responsible enough to try

to save money and create a budget plan, and tend to follow it. Both female and

male students understand that saving money is important.

Generally, After gathering the research, the researcher have concluded

students from the Grade 10 spends a lot based on the data and on which priority

they are following. The researchers also concluded that the Grade students

spending big amount of money on their priorities which is either food or art

materials. All in all, female students spend great amount of money on food and

art materials while on the other hand, male students has different kind of

priorities.
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Money.(n.d.). Retrieved from http://dictionary.reference.com/browse/money on

Dec 2011.
Rand A.(2010). Money-The color of money. Retrieved from
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http://www.westwood.edu/resources/student-budget/ on Dec 2011.
University of Santo Tomas- Fine Arts and Design. (n.d.). Retrieved from
http://en.wikipedia.org/wiki/University_of_Santo_Tomas_College_of_Fine_Arts_a
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 APPENDICES

Allowance and Budget of junior high school Students

Instructions: Check your respective answers in each question.

Gender: _F_M

Grade:

__ Grade 7 __Grade 8

__ Grade 9 __ Grade 10

1.How much is your daily allowance?

__ 10-20

__ 20-30

__ 30-50

__50-100

2.Do you live in a boarding house /apartment?

__Yes __No

4. Do you make/ write a budget plan?

__Yes: __Always __Often __Sometimes

__No, Never

5. If so, do you follow it (budget plan)?

__Yes: __Always __Often

__Sometimes __No, Never

6.How much money do you spend for your food every day?

__PHP10-20

__PHP20-30

__PHP30-50

__ PHP 50-100

__ Php 100-150

7.Do you bring packed Lunch in school?

__Yes __No

If yes, how much money can you usually save? php____

8.How much money do you usually spend on your projects/requirements

__20-50

__50-75

__75-100
__100-200

9.Where do you think does most of your allowance go to?

__food

__art materials (paint, papers, boards, etc.)

__ printing (for research papers, plate references, etc.)

__ transportation

___entertainment/ recreation (computer shops, cell phone load, ‘gala’, etc.)

__ savings

10.Do you always try to save money?

__Always

__Often

__Sometimes

__ Never

11.If so, how much can you usually save?

__PHP 10.00 - PHP 50.00

__ PHP 50.00 - PHP 100.00

__PHP 100.00 - PHP 200.00

Biodata