Foreign Literature

According to Jacob Clifton, (2016), online banking makes it easier to figure out how
much you're making, how much you're spending and how much you can save or use to
pay off your debt. Don't think about what you should be doing, just focus on being
honest about your daily life: the money you make and the money you spend.
Setting sky-high savings goals can sometimes work in the short term, but you're not just
saving up for a new TV: You're trying to create an entirely new habit and make it a part
of your life. It has to be something you can do every time, not just when you're feeling
optimistic.
Any expert will say that one of the most important habits to learn is paying you first. Get
that money out of checking immediately, using your bank's automatic transfer system if
possible. When you think of saving as something you do with the money left over, you
don't save: There's never going to be any money left over.
However you do it, the point is to teach yourself that once you've started saving, that
money is no longer yours to spend. Saving is just something you do, every receipt,
regardless of what else is going on.

Foreign Literature

While many studies have identified characteristics of savers and non-savers, the
reasons underlying saving have not received as much attention (Bucks, Kennickell, &
Moore, 2006) found motives to save are relatively consistent over time and the
likelihood to consume is affected by saving motives. Previous literature examined the
importance of specific saving motives, such as a bequest motive or a precautionary
motive. Goals guide an individual in the pursuit of an end state (Markman & Brendl,
2000). Numerous studies identified household saving motives (Davies, & Chater, 2007)
was among the first researchers to identify saving motives. His eight saving motives are
listed below.
1. Precaution: Setting aside for unexpected circumstances. 6
2. Foresight: Meeting anticipated future needs.
3. Calculation: Earning interest.
4. Improvement: Increasing a standard of living over time.
5. Independence: Needing to feel self-sufficient and in control.
6. Enterprise: Investing money into business.
7. Pride: Leaving money to heirs.
8. Avarice or miserliness: Being greedy or tightfisted.
Identified the following savings motives (in order of importance): emergencies (ill-health
or unemployment), reserve funds for necessities, retirement or old age, childrens
needs, buying a house or durable goods, and holidays. Few individuals were motivated
to save for future income (in the form of interest or dividends) or to leave money to
heirs. Lindqvist (2001) identified a structure of reasons to save. The lowest level is the
need to handle cash to deal with short-term financial goals. The second level reflects
the need to have a financial reserve as a precautionary measure. The need to have a
large amount of money to buy something expensive represents the third level. The
fourth level is the need to manage accumulated wealth. Several studies used the
human needs hierarchy of Maslow. Maslows hierarchy suggests that all needs are not
of equal importance and that people will pursue higher level needs once lower level
needs are achieved. Xiao and Noring) proposed: Families with few resources would
save to provide for daily expenses; families in middle income or net worth groups would
save for emergencies; and, families in the 7 highest income or net worth groups would
save for retirement, children, and advancing a standard of living. The researchers found
household saving motivations are hierarchical, with daily expenses being the basic
level, emergency being the intermediate level, and retirement, children, and advancing
being the highest level. These findings were consistent with their expectations based on

Maslows hierarchy. Xiao and Anderson, investigated reasons underlying different asset
holdings. Following Maslow, they identified three levels of financial needs: survival,
security, and social/developmental. Lower level financial needs were found to be
associated with assets, such as checking or savings accounts, while higher level needs
were found to be associated with bonds and stocks. As a households amount of
financial assets increased, the household was more likely to have financial assets
related to higher level financial needs. DeVaney, Anong, and Whirl (2007) analyzed the
likelihood of progressing to a higher level motive after fulfilling a goal associated with a
lower level saving motive. Their proposed saving motive hierarchy went from saving for
physiological or basic needs, for safety needs, for security, for love and social needs, for
esteem and luxury needs, and for self-actualization. They added an additional level
reflecting the absence of any saving. DeVaney et al. found younger households tended
to move from no savings, to saving for basic needs, to saving for security. Older
households were more likely to move from saving for love or social needs, to saving for
luxuries. Larger households were more likely to move from saving for basic needs, to
saving for safety, to saving for security. However, smaller households were more likely
to move from lower levels to saving for love or social needs. 8 The research (DeVaney
et al., 2007) also found that higher levels of education increased the likelihood of
movement toward higher level saving motives, from no saving, and saving for safety.
Income was positively associated with the likelihood of moving from no saving to saving
for luxuries. Households willing to take more risks and having longer time horizons were
more likely to move toward higher level of saving motives than those with less risk
tolerance and shorter time horizons. Canova, Rattazzi, and Webley (2005) used
network analysis to identify the cognitive structure of saving goals and the relationship
between goals. British adults were asked to provide reasons for saving and why the
saving goals were important to them.
Content analysis led to 15 hierarchical goal themes:
(a) Autonomy (being independent),
(b) Money availability (having money to spend),
(c) Speculation (earning interest),
(d) Purchases (buying presents or household items),
(e) Security (feeling safe),
(f) holidays/hobbies (traveling and having money for sports),
(g) Projects (achieving personal dreams or goals),
(h) Precaution (preparing for financial emergencies),

(i) Saving habit (accumulating money),

(j) self-esteem (achieving dignity),
(k) Household (saving for family and children),
(l) Self-gratification (acquiring for personal pleasure), (m) retirement (saving for income
needs once no longer working),
(n) Avoid debt (reducing mortgage), and
(o) old age/illness.
Among these goals, self-gratification and security were the most central goals and were
classified as super-ordinate goals. At the hierarchy bottom were goals such as
purchases and hobbies; for example, saving for a better house, a new car, or a
vacation. The three goals in the upper level of the hierarchysecurity, self-esteem, and
self-gratificationwere interrelated. 9 Canova et al. (2005) also identified links between
goals that functioned as strategies or means to achieve other goals. Avoiding debt was
linked with achieving financial security. Achieving self-gratification was reached through
holidays, hobbies, purchases, as well as looking after the family. Thinking about old age
or illness led to self-gratification.

Local Literature
How to Save Money as a Student in Philippines:

1. Bring Your Own Baon. For students here in the Philippines, this can really keep your
daily budget super low especially if you have siblings who are also schooling.
2. Water instead of soft drinks or juice. Water cannot be replaced by any other drinks.
Though most of the people know this but not all people are willing to take action. It
requires self control and discipline to do this.
3. Bring money only for commuting. If you do the two tips above, then theres no need to
bring extra money unless theres something you need to pay in school. Another thing, if
your school is just walking distance from your home, then you dont need to bring
money at all! Cut out your commuting expenses to save money as much as possible.
4. Cut out vices. Vices will do you NO GOOD. Stop playing computer games just for fun
or maybe budget it to minimum. Playing computer games consumes your precious time
and money. Instead of staying in the computer shop, just go back home and help your
parents, or study at home.
5. Dont make impulsive purchases. Always plan the things you are going to purchase
or you might spend your money on things that you dont really need. This is a skill, if you
train yourself to not be an impulsive buyer, you will have advantages over your peers.
This is not just for students but also a very important part of an adults life.
6. Buy second hand books. Theres no use of buying brand new reference materials.
You can always ask the higher students if you can buy their used books. This can
reduce your expenses up to 1/4 of the brand new price and you can now save 3/4 of the
cost.
7. Reminding your parents to pay bills on time. Philippines is known for the maana
habit and in terms of paying bills, extra fees can really hurt if you pay late. Simply
reminding your parents to pay the bills before the deadline, your family can save more
and can give you more for your needs.
8. Buy whole pad paper and bring only your daily needs. If you can buy a whole pad
paper then go for it as it will be much cheaper if youll buy in pieces of 3 or 4 every time

you need it. If you buy a whole pad, avoid bringing it all! Just bring what you think you
need for the day and save the rest for the next days or else your classmates will take
advantage of you. Some of your classmates wont buy their own papers as they know
youre bringing a whole pad! There are students who graduated in college who only beg
classmates for papers when they need it. Theyre all ninjas.
9. Dont get a pet until after college or until after you can. Pets maintenance can really
be expensive and not having any can save you time and money. Thats it! Its common
sense.
10. Learn to say no, explain, period. Its no new to school that after classes, your friends
& classmates may push you to join and come with them to go here and there and
everywhere. If you really cant and have no budget for it, then DONT. Just say no and
explain them why you are not coming with them. They may get mad at you for that but
think of this; real friends understand situations, period.
11. Apply for scholarships. If you really want to help your family to pull them from
poverty, you will study hard to get good grades in school. If that is so, apply for
scholarships. There are government scholarship programs that give around five
thousand pesos every term. Some have monthly and some have other schemes. This is
also a good motivation to push you to get good grades always.
12. Live below your means. If you can have a simple locally branded android phone,
dont force yourself to have the top brands smart phones or iPhones. After all, youre still
a student yet. Dont engage yourself into social climbing type of lifestyle. Always learn
how to live below your means by simply be contented that you satisfy your needs for
now. All your wants should be cut off for the mean time.
13. Have a budget plan. If you have a strict budget plan, youll be able to monitor the
flow of money going in and out of your pocket. This is where you can say that you are
indeed saving money. If you happen to learn this skill, it will be definitely a life
advantage for you as not so many people are doing this. They may know stuffs about
budget planning but they lack taking actions. You need to make a plan and take actions.

14. Befriend rich classmates. They got the money; you got the brains, perfect
combination! This one is a bit funny but practical. Your rich classmates can sometimes
shoulder group expenses or at least share bigger contributions on projects, group
activities, and etc. They have the capability to treat their friends more than anybody else
in the classroom. What you need to do is to befriend your rich classmates and help
them if they are having hard time understanding your subjects in class. In return, it will
be easier for them to recall your name if they want to treat somebody.
15. Dont engage yet into relationships. Well, for you to help your family first, you should
be able to resist the temptation of getting into relationships. This is especially if youre a
boy. There are not much added expenses if youre a girl because, we all know it, boys
are the ones who treat girls, right? So if you want to save money, just follow these tips.
16. Open a Savings Account. While youre still a student, you might want to open a
savings account. This will ensure that your money is in safe hands while you are
keeping some of your parents hard earned money. This is not just for saving purposes
but for other transactions as well. Your parents are able to send you money via your
bank account or do some payments or what not. In general, you need a savings
account, period.
17. Share books with your classmates. If one or two of your classmates happen to be
your neighbor or just walking distance from your house, this is one good way to save
money on books. Both of you dont need to buy the exact same books as it will be
wasted. If you need 8 books for the semester or for the school year, why not have an
agreement with your classmate-slash-neighbor: Youll buy the first 4 books and your
classmate will buy the other 4. Since youre near each other, you might just go to each
others house to study and review.
18. Buy in bulk. Another good way to save money is to buy in bulk. Instead of buying
per-piece of your consumables such as shampoo, coffee, toiletries, biscuits, snacks,
and etc., you might want to consider buying packed items for it will cost less. List down
all your daily consumables and try to compute if its worth to buy in packs. Also, try to
ask your classmates if they will buy similar items so you can save more. This is good

especially whenever you have individual projects and all of you in your classroom need
to buy same items.