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This chapter presents the review of different literatures and studies done by
foreign and local authorities that are related to the present research. The chapter also
Related Literature
Foreign
developed in the early twentieth century when children's purchases of movie tickets,
candy, and toys raised concerns about their spending habits. During the Progressive
fixed supply of money to inculcate respect for money. Child had endorsed allowances to
authorities joined a much larger chorus calling for new money training regimes in
However, despite the benefits gained by the students of having allowance, there
are problems and disadvantages present. For example, a student has poor spending
habits. They tend to think that this is their money and they can do whatever they want
with it. Students have the tendency to spend their allowances on their recreational
activities such as, renting a computer unit for fun and games, buying items at the
shopping mall, and spending money for the peers. As a study, the proponents seek the
effects in line with the daily allowances of students to their academic performance.
(Achim, 2009, p.33), the budget is a planning document which contains a number
of financial and / or non financial information that refers to the activities that will take
place in the future. Budgeting is the activity of recording financial and / or non-financial
(Ekholm and Wallin, 2000, Merchant and Van der Stede, 2003). Budgets have
always played a key role in managing an institution, both private and public, being an
The overall objective of the budget is to keep control of the activity done in the
company by providing a roadmap for future activities and to set a series of goals to be
achieved and the means by which to achieve those goals. Therefore the management
their budgets and for any variance from the estimated values, cases in which they are
required to take remedial action. Budgets are used by management for different uses
such as Control income and expenditure (the traditional use), Establish priorities and set
According to Turkish authors Ali Uyar and NecdetBilgin, the reasons for
budgeting, in the order of their importance are: control expenses, profitability, aid long-
Local
learn how to manage money through their own successes and failures and the input of
their parents.”- McCurrach (2012). This means that if parents let their children to have
allowance and give them permission to spend it, they will encounter different situation on
money.
Cuento (2011) states that almost all 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. Student spends a lot based on the
data and on which priority they are following and they spend a big amount of money on
respondents were the following: delayed allowance, inadequate allowance, high cost of
commodities and high transportation cost. Majority of the students had problem on
allocation of allowances, this may now serve as a budget constraint for the students.
Since every student has different kinds of needs and wants, may it be for academic
purposes or for personal satisfaction, their responses to budget restrictions with respect
to their consumption of various commodities may vary with each other. Students are
subjected to a budget constraint that limits them to get the most of their needs and
wants.
more so for students. Especially if you are studying in the city, say a university in
Manila, the fact remains: money management is still a part of everyday life. You have to
calculate the amount of money you need for food, commute, dorm fees, and school-
Knowing how much money you should spend and where you should spend it on
is very important. Being able to manage your finances is a sign of maturity and has its
Philstar (2014) states that, the frequency of giving the allowance is another issue.
Students who live with their parents usually receive their allowances daily or weekly.
Students who move to study away from their homes receive their allowance weekly or
monthly. Consider the cost in terms of time and transaction charges when deciding the
frequency of remitting allowance for children who live away from home.
It is a good idea to teach kids budgeting skills as early as when they are high
school. There is nothing more real than the pain of a grumbling stomach to teach them
Related Studies
Foreign
Bruin et al. (2000), study on Differences in spending Habits and Credit use of
College Students, affective credit attitude and gender influenced college students’ credit
entertainment, gasoline, travel and food away from their homes. Females purchased
clothing on the other hand electronic gadgets for online games purchased by males.
was affective credit attitude, with female students employing a greater number of
financial practices. A path analysis that was used by Bruin and his company showed
affective credit attitude, and the number of credit cards with a balance.
Wiley et al. (2017) suggest on Making Budget under the International Student,
college expenses, you will want to work with them on creating your budget. You must
work together when it comes to how much money will be distributed, or how much
, you will want to list all the potential categories and amount of your income. For
example for college students usually includes: financial aid such as scholarship, grants,
work study, and loans, savings and income from part time job.
List all of your expenses. List all of your potential categories and amount of
expenses. If you are not sure what your expenses are, just try tracking them for a week,
month or more. Recording everything you spend can be a great way to determine what
your future expenses are while trying to save more for that.
Save up for big expenses. If your planning for a trip with your friends, or have
your eye on a new trend, you will need to start saving up for that expense as soon as
you know about it. Considering your budget to attempt in increasing the amount you
Make sure your budget is balances. This means that you are not spending more
than you are making. You must total your income and your expenses, and make sure
your budget “balances”. If your budget does not balance then reduce your expenses or
The students spend their allowance on food, mobile phone load and
transportation but their adviser said that there are ways to maximize their daily
allowance.
According to Duplito (2013), spending daily allowance takes efforts and discipline
and requires small changes in daily routine. There are two ways to have a big impact of
finance which are increasing income or reducing expenses. If you want to maximize
your daily allowance, you have to do both, the increasing income or reducing expenses.
food and transportation, but a financial adviser said there are numbers of smart ways to
maximize their daily allowance. Maximizing a daily allowance takes effort and discipline,
Bringing cooked food. Bringing cooked food instead buying expensive meals in
canteen can be a tool to lessen the expenses. It is a good practice to allocate your
Duplito was doing research on 20 case studies of women. She saw three
similarities like they allot time to plan their finances, shun debt and knowing where and
how to shop. She was surprised about the third finding, at first Duplito thought the
similarities would be about where they put their money, or which investing strategies
The study would use the theory of Ron Lieber that explains about
Ron Lieber work as a columnist in New York Times. He writes that upon creating
a word cloud of traits that are the opposite of spoiled, “I realized that every last one of
those attributes — from generosity and curiosity to patience and perseverance — could
be taught using money.” Lieber realized that it is precisely by teaching kids about
money.
According to Lieber we must not let a rotten economy spoil our goals. Lieber says
these lessons are more important than ever before. Aside from peer pressure, children
today will face ever greater financial pressures as adults. But their first great financial
Lieber says, “If you haven’t been making real financial decisions in the previous
decade, starting with two-digit decisions and then three-digit decisions and then four-
digit decisions leading up to the big one, it’s very difficult to get all this right.”
As described in his astute book filled with interesting anecdotes and wise
lessons, here are seven ways you can use money to raise children who are financially
instruments. “In the same way we don’t take them away when kids don’t do their chores
or don’t do them well, we shouldn’t take money away either,” he says, adding that
parents should leverage whatever the child likes more than his or her allowance.
2. Have them split their allowance into three jars: give, save and spend.
Lieber says these jars mimic a grown-up budget. Financially healthy adults will
spend about 80% of what they earn, save 15%-20%, and give the remainder — and
each jar serves as a stand-in for the values and virtues that are the opposite of spoiled.
“Spending is about modesty, thrift and prudence, and having the prudent
decision-making skills that allow you to spend or splurge on the things that make you
happiest while avoiding the mindless wallet dives that we engage in as adults. Saving is
about patience — the patience that kids will need to deploy as adults to put money
away or leave it alone afford down payments or retirement or college for their own kids.
The give jar is about generosity, and ultimately about gratitude too,” he says.
If you want your kids to make smart financial choices, they need autonomy.
“They’ll inevitably make mistakes or spend money on trinkets and regret it later when
they don’t have money for things they truly want,” says Lieber. “So letting them make
mistakes — spectacular ones even — is a great way to go, because then they learn,
Every family will have its own threshold for this, but even more important than
how you define a want vs. a need is that you communicate why you set the line there.
Lieber suggests creating a Want/Need continuum on paper using horizontal lines with
“It’s not that there are right answers for where anything ought to be,” he says,
“but what is definitely wrong is not to be narrating along and explaining to your kids, ‘We
don’t really spend more than this amount on X, because we’d much rather spend on Y.”
7. Practice gratitude.
A number of studies have found high correlations between gratitude and higher
The New York Times' columnist and author Ron Lieber has some wise counsel
for young people: Spend your money on experiences rather than things, and remember
that what you use your money for shows what's really important to you.
All of the best psychological research on money and happiness tell us that
spending money on experiences brings more (and more lasting) happiness than
spending money on material objects, especially if we do those things with people that
we care about a lot. The sooner kids become aware of this fact, and use it to govern the
trade-offs that they make with their own money; they better choices they'll be able to
make sooner as young adults. It should be obvious that you spend money on the things