“An analysis on the Allowances Management of Grade 12 ABM Senior

High School Students”

Background of the study

Financial management is a vital activity in any organization. It

is the process of planning, organizing, controlling and resources
with a view to achieve organizational goals and objectives such as
procurement and utilization of funds of the enterprise. It means
applying general management principles to financial resources
enterprise (Juneja, Prachi) (https//www.Managementstudyguide.com). For
us, the thing that we understand about financial management it is an
activity wherein we manage our money through planning, controlling,
organizing and monitoring. It is our action to manage our money in
terms of what are the things we buy like foods, clothes and others and
what are we may use money. Financial management was we manage our own
allowances properly. For example saving some allowances, buying in
important things and others.

An allowance is money earned or given to a child at regular

intervals to teach the child how to manage money. Some parents believe
that they should provide for the materials needs or their children,
and there is no reason a child should have to manage money until they
are old enough to understand and mature enough to make
responsibilities (Aliene S. Linwood, 2000). In our own understanding
about allowance it is the money that is given to us by our parents for
us to buy what we need in school. It is for us to use in our daily
activities and for us to manage our money and for us to be able if we
used it in important things or we just use it for fun. So for us, as
much as possible parents should teach their siblings on how they will
manage their money or their allowances given to them. So that their
children will not spend their allowances to the things that are not
important like spending in the computer shop, buying alcohol,
cigarettes and others. In their young age if they understand the
importance of managing money they will not spend much and save it for
their future.

In some countries like the United States there are some research
conducted in managing allowances. One of this is the study conducted
by Volpe, R., Chen, H., Pavlicko, J.J. (1996). The studies revealed
that majority of the females are dependent from their parents for
their allowances. This allowance can be form metal coin or piece of
paper, they value this thing to sustain their everyday needs like
water, food and clothes. Some students were able to save their money
and there are also some students to make late payments on tuitions. In
this study it says that more of the female are dependent to their
parents on their allowances. But in other hand, males are independent
because they can provide their allowances because male can easily find
a job for them to get their allowances. They manage their money by
their everyday needs like water, food, and clothes.

In addition to this, people manage their allowance in transport,

lunch, and merienda, for photocopies like printing, appliances,
accessories and others. This study also tend to show the importance of
managing allowances for the students to be responsible in handling
money and for them to have a financial knowledge
(https://www.nefe.org>portals>PDF). For us, student must know the
importance of financial management so that they will not have
experience short comings in terms of money. Financial management can
help us as a student to manage our allowances properly and not to
spend on such things that are not needed.

In the Philippines, students are generally clueless about how

they budget or manage their money especially their allowances that are
given to them, they tend to obey their parents tell them to do with
their allowances. That is to save some of their allowances and spend
the rest of it. But some of the student the word “save” it means to
them to buy what they want such as gadgets, shoes, bags, and clothes
rather than a way to grow and multiply money. Some students here in
the Philippines spend their money or allowances by shopping what they
want. And eating in the restaurant rather than going home.

King’s College of the Philippines is a Christian school wherein

they envision of transforming the youth for leadership, KCP envisions
each new generation of professionals to love God, to lead the nation
and to light the world. In King’s College of the Philippines, some
students know how to save their allowances but some are struggling on
it. Some students at King’s College of the Philippines know how to set
aside their allowances in terms of their necessity. Some who care for
their money they save it to their bank account. They put some of their
allowances until it will grow and multiply. They save the half of
their allowances for them to use if needed. On other hand, student who
do not know to save their allowances spend their money by buying
alcohol, cigarettes and other vices. They also go to the computer shop
and used their money by buying things that are not important. So in
addition, students are spending their money on what they want instead
of what they need.

Given this observations and experiences to allowance management,

the researchers have decided to conduct a study entitled “An analysis
on the allowance management of the grade 12 ABM students”. The said
study aims to know the ways on how the grade 12 ABM students budget
their allowance, and to recommend some effective strategies on
allowance management that fellow students could adapt.

This study deals with the weekly allowances management of the

Grade 12 ABM senior high students of King’s College of the
Philippines. It aims to answer how students manage their allowances.
The allowance of the students is important to them because they use
this in their everyday needs in life. This study is important because
it will help the students, their parents and the future researchers.

To the students and to the participants, this research can help

them to know the ways or techniques in managing their allowances. They
can have an idea on how they will manage properly their money
especially their allowances. This research can guide them how to value
the importance of managing or saving their allowances and not to waste
in buying or spending in not important things. And this research will
inform them if where they usually spend their money and can help them
to use their allowances wisely.

To the parents, this research or study can help the parents in

managing their money and know some techniques on properly management
of money. Have an idea on how they will control spending or manage
their money. Parents learn not give much allowances to their children
and know to save the remaining money they have. In addition, this
research will provide insights to the parents where their child
usually spend their allowances that they are giving.

To future researchers, this research can guide and help them to

have an idea on how students manage their allowances. It will be there
basis on the related research and so that they will provide more
research about managing allowances. So if the next researcher is
interested in this kind of research they may use this research as
reference on their research.
 Statement of the problem

1. How does being an ABM student enhance their allowances management

skills

2. What are the techniques of ABM student in managing their

allowances?

3. What are the advantages of being an ABM student in budgeting

allowance?
 Theoretical Framework

Keynesian Economic Theory is an economic theory of total

spending in the economy and its effect on output and inflation.
Keynesian economics considered as a “demand-side” theory that
focuses on changes in the economy over the short run. (Will
Kenton).This theory also shows the relationship between the
income and the consumption. Inco me and consumption maintained a
long relationship wherein they go together but it is hardly or
very crucial to manage or to budget. At the same time, there is
also a double relationship between income and consumption, means
that the consumption expenditures are a major factor to know or
to determine the level or status of the number of the income. In
Keynesian Economic Theory help to know or identify how much they
consume or spend money in one economy. Keynesian
Economics represented a new way of looking at spending, output
and inflation of one economy. Help to analyze short-run problems
caused by stickiness or even rigidity of some important prices
and the demand product.

The theory of consumption features the generates patterns

of consumption spending consistent with both long-run times
series data for aggregate consumption and empirical findings from
cross-section data showing high income household have a higher
prosperity to save. Also explain why consumption inequality is
less than inequality. (Thomas I, Palley, 2008). It’s about the
total income of people how they consume in their own. This theory
is important because it shows and determines the success of the
economy.

The relationship of theory of consumption and

Keynesian theory is Keynesian theory was developed by economist
British John Maynard Keynes while theory of consumption was
postulated by Keynes together with Duesenberry and Friedman.
These theories are related to each other because it talks about
how people spend or consume their money. It is the total
consumption and gross national income.

Budget theory is the academic study of political and

social motivations behind government and civil society budgeting.
Constitutional economics is a field of economics and
constitutionalism which describe and analyzes the specific
interrelationship between constitutional issues and functioning
of the economy including budget process.
(https://www.revolvy.com). This theory is about the budgeting of
allowances in the form of government and private sector, this
theory seeks to see the how the government use the money in
budgeting it in their projects.

In this study, this recent researches are connected to our

research because it talks about how people or the economy spend
their money and how students manage or consume their everyday
allowances.
 Scope and Delimitation

This research was conducted only in King’s College of the

Philippines. The participants are the grade 12 ABM senior high school

students. This research will be collecting information and used to

evaluate how grade 12 ABM students spend their allowances.