Personal Budgeting Research Proper

Technological Institute of the Philippines – Manila
College of Business Education

Bachelor of Science in Accountancy
CHAPTER 1
The Problem and Its Background
This chapter covers the introduction, background of the study, statement of the problem,
conceptual framework, scope and delimitation, significance of the study and definitions of terms.
Introduction
Going to college is an important part of any person's life. It is probably the first time students
get to experience independence. Being independent is both a privilege and responsibility. To be a
responsible student isn't something that can be achieve overnight. It needs to be put in mind and be
an attitude. One of these responsibilities is managing their allowance.
One of the challenges that every student encounter is to manage the money their parents provide
them. Many students are having a hard time in terms of budgeting their allowances. Money as one of
the main necessity plays a significant role in every student to survive college.
The manner in which the students manage their money depends on their daily needs;
somehow it changes due to some factors. Students have their personal needs, and through this study
we will know how and where they generally spend their money. The more knowledge students have
about their financial responsibility and status the less likely they are to be in debt (Norvilitis, et al.,
2006). According to study women are more likely to report having a budget than men (Norvilitis, et al.,
2006).
Allowance is a necessity for every student. It is a means of survival. It can also help students
be financially responsible. Being essential, it just is right to state that students shall be able to budget
their allowance appropriately. The problem is how to do it. Doing so isn't easy since students need to
manage their allowance between their needs and wants. Also some only have a limited amount of
money. Proper budgeting is important. If done responsibly, it can give both the students' needs and
wants.
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Due to factors that can affect budgeting, there exists a difference on planning a budget. The
manner in which college students manage their money is based on several factors such as age,
personality traits, and knowledge. This is the main focus of the study - the personal budgeting
practices of students. To assess if the students possess financial management skill. To know how they
manage their finances and the impact of the variables to their personal budgeting practices.
Background of the Study
This study focused on the students of College of Business Education in doing their budget
daily. It will include all the programs namely Accountancy, Financial Management, Accounting
Technology, Human Resource Development and Management, Logistics Management and Marketing
Management. This study will also benefit the students as well as helping them to improve their budget
planning, make a recommendation based on the respondents what are the best thing to do in
budgeting their allowances and also the things that they need to change in their budget planning.
The main purpose of this study is to find answers from the respondents as to how and where they
spend their money every day. Budget as the main subject of this study will focus on the proper
allocation of allowances of every student in order for them to properly utilize their daily, weekly or even
monthly allowances. Of course budgeting will be different depending upon the student. Budgeting will
be more crucial most especially if the student is living in a dormitory wherein he himself is the master
budget of his daily needs.
Statement of the Problem
The objective of this study is to determine the personal budgeting practices of Business
Students of the College of Business Education. It aimed to answer the following sub-problems:
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1. What is the profile of the students in terms of:

1.1 Age
1.2 Gender
1.3 Program
1.4 Year level
1.5 Class schedule
1.6 No. of class days per week
1.7 Allowance
2. What are the personal budgeting practices of business students as to:

2.1 Transportation
2.2 Meal
2.3 Luxury and Leisure
2.4 Projects and Books
2.5 Communication
2.6 Savings
3. Is there a significant difference on students’ personal budgeting practices and their

profile?
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Conceptual Framework
INPUTS PROCESS
PROFILE
 survey questionnaire
 Age  data gathering
 Gender  analytical procedures
 Program
 statistical procedures
 Year level
 Class schedule
 No. of class days per
week
 Allowance
VARIABLE
 Transportation
 Meal OUTPUT
 Luxury and Leisure
 Projects and Books
Budgeting Practices of
 Communication students
 Savings
Figure 1. Research Paradigm
The diagram shows the organization of ideas.
The proponents opted to use Input-Process-Output diagram. The first box shows the inputs
needed to gather data. These are the variables specific to each respondent. The second box
represents the how the data will be gathered and the tools to be used in analyzing the data. The last
box will be the result which is the main focus of this study.
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Scope and Delimitation
The research study is limited and conducted only at Technological Institute of the Philippines-
Manila in the 1st semester of school year 2016-2017. The respondents of the study are from the
College of Business Education from 1st year to 5th year level since they have the knowledge in
budgeting. Each of the respondents will be given a questionnaire to answer. In order to assure the
manageability of the collected data, the proponents will only provide multiple questions like, checklist,
ranking and rating question. This is used to assess and estimate the amount of money of College of
Business education students on where and how they spend their money and how they manage their
finances.
Significance of the Study
According to Merriam-Webster Dictionary, budgeting is an amount of money available for

spending that is based on a plan for how it will be spend and allowance is an amount of something
that is allowed o available. If we connect these two words, it would mean, spending the available
money within a plan. This research focuses on the significance of different point of view of the users
such as the students, the parents, the administration, teachers or professors and the researchers.
For the students, some of the college students are free from home and mostly they are living
on a budget, others are living without worrying their allowances running out because they have
enough to survive and the worst case are those students who simply getting themselves into a cycle of
debt by each other mean. This is where the significance of allowance budgeting practices exists, to
know; means to survive within daily allowance, ways to avoid over spending and having debt,
allowance budgeting practices that they do; suit to their lifestyle and live within their means.
For the parents, parents has different opinions about giving allowance to their children,
because they believe that they should provide the needs of their children and also believe that giving
their children allowance is a good way to teach them on their financial responsibility. This research will
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give them idea on the amount of money they will allocate to their children and to monitor, on how their
children spend their allowances in the different variables given.
To the Administration, the school is the second home of the students and most of them spend
their entire day in school. Through this research, the school administration will be informed and have
idea on how they will formulate the class schedule of the students, that is one of the significant
variables given, that affects the allowance budgeting practices of the students.
To the Teachers, one of the variables given is the project that is usually given by the teachers.
This study has significance to them, to know the allowance budgeting practices of the students
regards to the projects. The sum that the students give up or practices that they set aside, enabling
them to comply.
To the Researches, we, the researcher, the study itself is significant to us, not only, it is
required for us to conduct but also it give us the awareness and a chance to inform the users of the
research, on how the variable; Transportation, Meal, Luxury, and Projects affect the students on their
allowance budgeting practices. Also, it enhances the students’ awareness as to the importance of
planning a budget.
They say the key is financial success is to be well aware of how to spend your money.
Definition of Terms
Budgeting - budgeting is a process. This means budgeting is a number of activities performed in

order to prepare a budget.
Budget - is a quantitative plan used as a tool for deciding which activities will be chosen for a future
time period.
Allowance - is an amount of money given or allotted usually at regular intervals for a specific purpose.
Transportation -mode of travelling from home to school.
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Meal - the food students eat at school.
Luxury and Leisure - activities or hobbies students usually do after class or vacant period.
Projects and Books - these are the school requirements the students must comply with.
Communication - means of connection between people or places, in particular.
Savings - the amount or money the students have saved.
Budgeting Practices - the usual habit of students in spending their allowances and managing their
finances
Descriptive method - is used to describe characteristics of a population or phenomenon being

studied.
Slovin Formula - is used to calculate the sample size.
Weighted Mean - Mean in which each item being averaged is multiplied by a number (weight) based
on the item's relative importance. The result is summed and the total is divided by the sum of the
weights.
Composite Mean - refer to composite measures of variables, i.e. measurements based on multiple
data items.
Stratified Sampling - with stratified sampling, the researcher divides the population into separate
groups, called strata. Then, a probability sample (often a simple random sample) is drawn from each
group.
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CHAPTER 2
Review of Related Literature
This chapter presents some articles related to the research topic which can enhance the ideas
about the study.
Related Literature
Local Literature
The breakdown of students' allowance
MANILA, Philippines - For many parents, the question of how much school allowance should they give
their children is a lingering one.
By philSTAR.com's computation, parents could spend anywhere between P25,000 and P30,000
(computed at three times a week of classes for 18 weeks of two semesters at P250 allowance per
school year)
College school students typically get P150 to P250 (excluding transport allowance) per day. Students
from exclusive schools like Ateneo and DLSU receive where surrounding places to eat tend to be
more expensive receive higher allowance. The allowance covers P50 to P100 for lunch, P30 to P50
for merienda, P20 on average for photocopies, and P50 to P80 for school requirements like printing,
buying pens, etc.
Students outside of Manila, especially those living in municipalities usually get about P100 to P150 per
day (excluding transport allowance). Transport allowance is easy to compute, however.
Emma, mother of a college student, says that she gives her son, Paulo, P250 per day which is P100
higher than his allowance when he was in high school. This is to account for more photocopies and
requirements in college.
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She notes that “giving too much allowance to a student risks financial irresponsibility including
unnecessary hanging out with friends and playing LAN-based games in computer shops”.
Donna, a college student from a single income family notes that she only receives P100 as an
allowance. Even if she deems this insufficient, she notes that she understands that with the death of
her father, it means less resources and she needs to make do with what is given. Her siblings who are
in high school in Ibaan, Batangas receive P30, which is enough for the needs of a student in a public
high school.
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 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 about handling their finances well.
(source: http://www.philstar.com/campus/extra-curricular-activities/2014/05/26/1327597/breakdown-
students-allowance)
Foreign Literature
In an article in money.usnews.com, it gives eight guidelines to help in successfully building

and managing a budget:
1. Keep it simple. While a budget can be a great tool for managing finances, it can quickly become
overwhelming if it's overly detailed or idealistic. "There are things that you will likely sacrifice when
budgeting, but it's very important to be realistic and understand your own habits," says Kristin Wong, a
contributor to the financial blog Get Rich Slowly. "If I have a problem area within my budget, like eating
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out or shopping, instead of trying to focus on everything and being too hard on myself, I pick that one
area. The hardest part of a budget is sticking to it, so the easier you can make it, the better."
2. Set a time period. Establish your budget for a time period that's long enough for you to see results.
Stephen Lovell, a certified financial planner with Lovell Wealth Legacy in Walnut Creek, Calif.,
suggests budgeting for one year at a time. Budgeting month-to-month can accommodate everyday
living expenses and bills, but a yearly budget can help you also plan for larger and more infrequent
expenses, like income taxes or holiday presents. "You don't want things to slip away," Lovell says. "It's
better to be approximately right than precisely wrong."
3. Build an emergency fund into your budget. An emergency fund should be an essential
component of every budget. It can help you finance unexpected expenses like medical bills so you
don't have to pull income from other areas. "For example, allocate just as much to your savings as
your emergency fund," Wong says. "Once you have that, it's a lot easier to maintain the budget if a big
expense springs up."
4. Don't worry about finding the perfect record keeping method. Just as there are many ways to
create a budget, there are also many ways to keep track of it. Whether it's through an online budgeting
program like Mint or Quicken or on paper, stick to whatever works best for you. "Make sure you
approach it in a manner that you are comfortable with," Beck says.
5. Make sure everyone involved is on the same page. Whether your budget affects your spouse,
partner or roommate, communication about the established financial plan is crucial. "If you have two
people who have really disjointed approaches to money, that's really going to be a problem in the long
run," Lovell says. "You need to be aware of the other person's attitudes about money and realize that
your own aren't universal. Everyone needs to be on the same page and after the same goals for the
budget to be successful."
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Being open with those around you about your budget can also help you create a support system while
you work to get your finances on track. "Talking to friends really helped me," Wong says. "For
example, even talking about it helped me when I was shopping with my mom. If I hadn't told her that I
was on a strict budget, I probably would have spent more. She was there to hold me accountable."
6. Make adjustments along the way. If over time, your budget results don't match your expectations
or financial needs, you may assume the plan is wrong. However, it's likely that you simply uncovered
unknown problem areas. "The things that pop up will actually let you know what the real norm is, so
pay attention to what it is telling you," Lovell says. "If you think, for instance, that you spend 12 percent
of the family income on discretionary items, and you find after tracking for two months it's more like 28
percent, then something is off there."
7. Try adding on instead of only cutting back. Following a budget typically means making cuts in
less essential areas or eliminating some costs completely. However, if reducing the amount of money
going out isn't doing enough, look for ways to increase the money coming in. "Take a part-time job or
sell something that is just sitting in your closet taking up space," Beck says. "People tend to think
about just the one side of the equation when working to keep their budget on track, but there's another
side that you can influence too, whether it's for a temporary or permanent basis."
8. Don't set yourself up for failure. Making sacrifices is part of managing expenses, but if you set
restrictions too high and too soon, you will be less likely to follow your budget over the long term. "If
you enjoy a latte every day, don't go from zero to 60 in terms of cutting back. Do it gradually," Wong
says. "Nobody wants to stick to a budget that cuts out everything fun in their life. If you keep failing at
your budget, you are going to be discouraged and you're not going to want to do it anymore."
These tips are to aid those who are having a hard time with their financial management.
Although is often associated with deprivation and cutting back, it doesn't have to be a painful process.
(source: money.usnews.com)
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Related Studies
Local Studies
A study was conducted in University of Santo Tomas comparing the allowance and budget of
College of Fine arts and Design students. It seeks to describe how much allowance is given to CFAD
students in general, where they spend it and at the same time how they budget it. It illustrates the
attributes of students towards financial matters.
At the end of the study, the researchers were able to draw their conclusion that students spend based
on the priority they are following.
The study recommends that parents must be aware of the spending habits of their children and where
most of their allowance goes. Both parents and students must understand the importance of savings
and should try to take means to save money. The institution should conduct further studies to evaluate
students’ issues and make adjustments for the benefit of all the students.
(source:https://www.scribd.com/doc/85158411/A-DESCRIPTIVE-RESEARCH-ON-ALLOWANCE-
AND-BUDGET-OF-SECOND-YEAR-STUDENTS-OF-UNIVERSITY-OF-SANTO-TOMAS-COLLEGE-
OF-FINE-ARTS-AND-DESIGN)
Foreign Studies
Free from the comforts of home, many students are experiencing being on their own for the
first time. One of the challenges they face is budgeting. This becomes particularly problematic when
an expected budget item changes. This study examines how students at a small Midwestern liberal
arts college meet the budgeting challenge. Do students plan and budget for discretionary items
differently than required items? Through this sample, student behaviors and discuss the implications
for practice is assessed
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The manner in which college students manage their money is based on several factors such
as age, personality traits, and knowledge (Norvilitis, et al., 2006). College students are in a unique
situation because they have restricted incomes and high expenses; therefore, they manage money
differently (Micomonaco, 2003). The more knowledge students have about their financial responsibility
and status the less likely they are to be in debt (Norvilitis, et al., 2006). In “Borrowing Against the
Future: Practices, attitudes and knowledge of financial management among college students,”
Micomonaco (2003) finds college students tend not to have a budget or calculate credit card bills
based on their actual spending. For example, there was a significant amount of students that did not
know their SES or how much they would owe in student loans when they graduate (Micomonaco
2003). Also, only 36% of students with credit cards reported paying off their credit cards bills monthly
(Norvilitis, et al., 2006). Although, college students are concerned about their future financial status;
67% of freshmen at four-year colleges or universities have concerns about paying their tuition. This is
the highest amount of concern expressed in over a decade (Gordon 2010). There are many groups of
students that accumulate and perceive debt differently, for example, how they used credit cards.
Women are more likely to report having a budget then men (Norvilitis, et al., 2006), but women more
frequently accumulate higher amount credit card debt and total debt (Micomonaco, 2003). Also,
majority students perceive themselves as more in control of their finances than minority students
perceive themselves (Micomonaco 2003). Some variables did not show differences in the
accumulation of debt but perceptions varied among groups. Demographics variables, GPA, and
number of hours worked did not play a role in the amount of debt acquired but, students with a higher
GPA and/or those who worked more were more worried about their financial status (Norvilitis et al.,
2006).
Clearly, a limitation of the study is that it focused on a relatively homogenous population at

one school. Would students at larger, more diverse campuses have similar outcomes? As the study
demonstrates, women were much better planners and budgeters than males. Similarly, students
became better budgeters and planners as they matured. As a result, the college should start
examining how they can better inculcate the younger male population.
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(source: http://www.aabri.com/manuscripts/10670.pdf)
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CHAPTER 3
Methodology
This chapter presents the research approach on conducting the study which consists of
methods of research used, population and sampling, research instruments, data gathering procedures
and statistical treatment.
Methods of Research Used
The researchers adopted the descriptive research. Descriptive research is used to describe
characteristics of a population or phenomenon being studied. It does not answer questions about
how/when/why the characteristics occurred. Descriptive research does not fit neatly into the definition
of either quantitative or qualitative research methodologies, but instead it can utilize elements of both,
often within the same study. The term descriptive research refers to the type of research question,
design, and data analysis that will be applied to a given topic.
Population and Sampling
There are a total of 500 students from the College of Business Education. Stratified sampling was
used to divide the population into strata (sub-group) in terms of program. In order to get the sample
size, the researchers used the slovin formula. Through this, a sample of 100 students was obtained.
The population is composed of 160 BSA students, 50 BSAT students, 60 FMA students, 50 HRDM
students, 90 LM students and 90 MM students
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Table 1. Distribution of Sample
Programs No. Of Respondents

Accountancy (BSA) 32
Financial Management and Accounting (FMA) 12
Accounting Technology (BSAT) 10
Human Resource Development and Management (HRDM) 10
Logistics Management (LM) 18
Marketing Management (MM) 18
TOTAL SAMPLE 100
Research Instrument
In conducting the study, the researchers prepared survey questionnaire as the main tool in
gathering data. The survey questionnaire is divided into three parts. First, the profile of the
respondents to identify the information needed for statistics. Second, the parameters or metrics used,
for the respondents to identify the measures in answering the questionnaire. Third is the structured
questionnaire, where the respondents will measure each statement in the questionnaire.
Data gathering procedure
In order to collect data, the researchers distributed survey questionnaire for the respondents.
An explanation about the purpose of the study and clarifications as to items and statements included
in the survey questionnaire was also provided. The respondents were given enough time to appreciate
and comprehend the statements in the questionnaire.
Data gathered from the survey conducted were then tabulated and interpreted using various
statistical tools. The results were used in coming up with the conclusions and recommendations.
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Statistical Treatment
1. Frequency and Percentage

The Frequency and Percentage distribution is used to classify the respondents according to
their program, year level, gender, age, schedule and allowance. The frequency represents the
response to an item in the questionnaire while the percentage of each item, is computed by
dividing it to the sample size of respondents.
Formula:
% = (f/n) × 100
Where;
% = percentage
f = frequency
n = sample size
100 = constant
2. Likert-type Scale
The likert-type scale was used to measure each respondent’s degree of response to each
item in the questionnaire. Specifically, the researchers used the level of agreement scale.
Table 2. Level of Agreement
Verbal Verbal
Scale Description Scale Interpretation
4 Strongly Agree 3.51 - 4.5 Very Frequently
3 Agree 2.51- 3.5 Frequently
2 Disagree 1.51- 2.5 Rarely
1 Strongly Disagree .51- 1.5 Very Rarely
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3. Slovin Formula
The slovin formula wan used to get the sample size of the respondents. From the population
of 500 students, a sample of 100 was obtained.
Formula:
n = N/ N +1(e2)
Where:
n = sample size
N = population
e = margin of error
4. Weighted Mean
Mean in which each item being averaged is multiplied by a number (weight) based on the
item's relative importance. The result is summed and the total is divided by the sum of the
weights. Weighted averages are used extensively in descriptive statistical analysis such as
index numbers.
Formula
5. Composite Mean
Refer to composite measures of variables, i.e. measurements based on multiple data items. It
was used to rank the variables for each program.
Formula:
CM = WM1 + WM2 + … + WMN
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Where:
CM = Composite Mean
WM1 = Weighted Mean of 1st cell
WMN = Weighted Mean of nth cell
N = number of cells
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CHAPTER 4
Presentation, Analysis and Interpretation of Data
GRAPH 1. GENDER DISTIBUTION OF SAMPLE

POPULATION
Male
32%
Female
68%
Referring to Graph 1, out of the total 100 respondents, 68% or 68 respondents are Female
and only 32% or 32 respondents are Male.
GRAPH 2. AGE GROUP OF BUSINESS STUDENTS

22 and above
9% 16-18
42%
19-21
49%
As you can see on Graph 2, in terms of age, 49% of the respondents aged 19-21 y/o, 42% of
them aged 16-18 y/o, and only 9% aged 22 and above.
GRAPH 3. SAMPLE POPULATION OF BUSINESS

STUDENTS
MM
18% BSA
32%
LM
18%
BSAT
HRDM FMA 10%
10% 12%
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Based on Graph 3, our 100 respondents composed of: 32 or 32% are BSA students, 18 or
18% are MM and LM students, 12 or 12% are FMA students, and only 10 or 10% are HRDM and
BSAT students.
GRAPH 4. WEEKLY ALLOWANCE OF BUSINESS STUDENTS

Others 300-650 (4days)
1001-1500 (2000/5days) 4%
(5days) 1%
24%
300-650 (5days)
1001-1500 35%
(4days)
2%
1001-1500
(3days)
1%
651-1000
651-1000 (3days)
(5days) 651-1000 1%
26% (4days)
6%
Graph 4 illustrates the result in terms of students’ allowance, 35% of the respondents has
300-650 allowance and has 5 days of class per week, 26% has 651-1000 allowance and has 5 days of
class per week, 24% has 1001-1500 allowance and has 5 days of class per week, 6% has 651-1000
allowance and has 4 days of class per week, 4% has 300-650 allowance and has 4 days of class per
week, 2% has 1001-1500 allowance and has 4 days of class per week, 1% has 1001-1500 allowance
and has 3 days class per week, 1% has 651-1000 allowance and has 3 days of class per week, and
one of them specifically disclose an allowance of 2000 and has 5 days of class per week.
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Table 3
Summary of Weighted Mean with Verbal Interpretation (Transportation)
WEIGHTED MEAN Composite Verbal

I.
TRANSPORTATION Mean Interpretation
BSA BSAT FMA HRDM LM MM
A. I have a regular
school service
which eliminates 1.16 1.5 2 1.3 1.33 1.5 1.47 Very Rarely
my transportation
expenses.
B. I live in a dorm
or at a house
1.81 1.6 2.42 1.6 1.61 1.72 1.79 Rarely
which is just a
walk from school.
C. I spend 50%
and above of my
2.03 2.6 2.08 2.3 2.56 2.17 2.29 Rarely
allowance for
transportation.
D. I spend less
than 50% of my
2.66 2.3 2.67 2.6 2.22 2.89 2.56 Frequently
allowance for
transportation.
E. I take an
alternative route or
mode of 2.94 2.9 3.25 3.2 2.61 2.94 2.97 Frequently
transportation that
is less expensive.
Table 3 shows the overall mean of all the statements under Transportation. Based on the
table, it was determined that students of College of Business Education frequently took an alternative
route or mode of transportation that is less expensive with a composite mean of 2.97 and with
composite mean of 2.56 was spending less than 50% of their allowance for transportation. With a
composite mean of 2.29, business students rarely spend 50% and above of their allowance for
transportation and rarely lived in a dorm with a composite mean of 1.79 while it’s very rare for them to
have a regular school service with composite mean of 1.47.
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Table 4
Summary of Weighted Mean with Verbal Interpretation (Meal)

II. MEAL
BSA BSAT FMA HRDM LM MM Mean Interpretation
A. I bring pack
lunch or food to
1.97 1.8 2.33 1.9 1.33 2.11 1.91 Rarely
save
allowance.
B. I bring pack
lunch or food
because it is
1.84 1.6 2.17 1.5 1.61 2.06 1.80 Rarely
not provided for
in my
allowance.
C. I prefer to
eat outside the
school for more 3.53 3.4 3.25 3.3 2.56 3.17 3.20 Frequently
affordable
choices of food.
D. I eat my
meal at home
before I go to 2.94 3 3 3.3 2.22 3.33 2.97 Frequently
school for less
expenses.
E. I spend 40-
50% of my
3.16 3 3 2.9 2.61 2.89 2.93 Frequently
allowance for
food.
Table 4 illustrates the overall mean of all the statements under Meal. It can be inferred that
business students frequently eat outside the school because of more affordable choices of food
having a composite mean 3.20 and to eat their meal at home before going to school came second to
the most significant with a 2.97 composite mean. It is also frequent for business students to spend
40%-50& of their allowance for food with composite mean of 2.93. Bringing pack lunch or food has a
composite mean of 1.91and business students bringing pack lunch because it is not provided for in
their allowance got a composite mean of 1.80 were both rarely practiced by business students.
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Table 5
Summary of Weighted Mean with Verbal Interpretation (Luxury and Leisure)
III. LUXURY AND WEIGHTED MEAN Composite Verbal

LEISURE Mean Interpretation
A. I spend my
extra time for
luxury and leisure
e.g. going to the
mall, watching 2 2.2 1.67 2.3 2.44 2.44 2.18 Rarely
movies at the
cinema, playing
online games,
arcades, etc.
B. I save 10-30%
of my money to
buy the things that 3.06 2.9 3 3.2 2.89 3.22 3.05 Frequently
I want and in case
I might need it.
C. I prefer to stay
at the library and
2.81 2.7 3 3 2.78 2.78 2.85 Frequently
read books during
vacant.
D. I prefer to go
home after class to
3.03 3.1 3.33 3.5 2.61 3.22 3.13 Frequently
avoid unnecessary
expenses.
E. I spend 10-30%
of my allowance 2.47 1.8 2.5 2.6 2.72 2.5 2.43 Rarely
for leisure.
Table 5 summarized the overall mean of statements under Luxury and Leisure. From the
table, it can be inferred that business students prefer to go home after class to avoid unnecessary
expense with a composite mean 3.13. With a composite mean of 3.05 business students save 10-30%
of their allowance to buy the things they want and in case they might need. Students who prefer to
stay at the library got a composite mean of 2.85. Spending 10-30& of their allowance for leisure has a
composite mean 2.43 and lastly, business students spend their extra time for luxury and leisure has a
composite mean of 2.18.
Page | 24
Table 6
Summary of Weighted Mean with Verbal Interpretation (Projects and Books)
IV. PROJECTS AND WEIGHTED MEAN Composite Verbal

BOOKS Mean Interpretation
A. I allot 10% of my
allowance for 2.59 2.8 2.75 2.8 2.89 3.17 2.83 Frequently
photocopy.
B. I allot 10% of my
2.93 2.5 2.67 2.2 2.33 2.44 2.51 Frequently
allowance for books.
C. Having projects or
researches increases
2.84 2.5 2.67 2.2 3.11 2.83 2.69 Frequently
my allowance for
projects.
D. My allowance is
enough to cover for 2.84 1.9 2.33 2.3 2.94 2.33 2.44 Rarely
my projects.
E. I spend 15% of my
allowance for my 2.44 2.4 2.33 2.6 2.61 2.67 2.51 Frequently
projects.
Table 6 shows the overall mean of statements under Projects and Books. Based on the result,
students frequently allotting 10% of their allowance for photocopy has a composite mean of 2.83,
having projects or researches increases their allowance for projects got a composite mean of 2.69.
Allotting 10% of allowance for books and spending 15% of their allowance for projects both have a
composite mean of 2.51. And it’s rare with a composite mean of 2.44 that business students
responded that their allowance was enough to cover their projects.
Page | 25
Table 7
Summary of Weighted Mean with Verbal Interpretation (Communications)
V. WEIGHTED MEAN Composite Verbal

COMMUNICATIONS BSA BSAT FMA HRDM LM MM Mean Interpretation
A. I allocate 10% of my
allowance for
2.19 2.2 2.5 2.9 2.33 2.5 2.44 Rarely
communication
expense.
B. I register to text and
call promos to
2.94 3.4 3.25 3.8 2.78 2.78 3.16 Frequently
maximize my load
budget.
C. I used free data
connection for my
3.5 3 3.25 3.2 3 3.06 3.17 Frequently
messenger application,
rather than loading.
D. I only spend for
communication, if it is
3.34 2.7 2.92 2.9 2.83 3.06 2.96 Frequently
for emergency or
needed.
E. I subscribe to
monthly plan that suit
1.31 1.9 2 1.4 1.78 1.83 1.70 Rarely
to my preference of
usage.
Table 7 illustrates the overall mean of statements under Communications. With a composite
mean of 3.17, business students used free data of messaging applications rather than loading. Next,
having a composite mean of 3.16, the respondents register to text and call promos to maximize their
load budget. The composite mean for the statement that students only spend for communication of it
is for emergency purposes was 2.96. Having a composite mean of 2.44, the respondents allocate 10%
of their allowance for communication expense. Lastly, with a composite mean of 1.70 students
subscribe to monthly plan that suit their preference of usage.
Page | 26
Table 8
Summary of Weighted Mean with Verbal Interpretation (Savings)

VI. SAVINGS
Mean Interpretation
A. I allocate 10-20%
of my allowance for 3.28 3 2.92 3.2 2.72 3.33 3.08 Frequently
savings.
B. I join in ease-up
system or 1.53 1.7 2.17 1.5 2.22 2.06 1.86 Rarely
"paluwagan".
C. I lend part of my
allowance rather 2.25 1.6 2.5 2.5 2.17 2.39 2.24 Rarely
than spending it.
D. I open bank
account or have a
treasure box where I 2.44 2.9 2.67 2.3 2.5 2.78 2.60 Frequently
can deposit my
savings.
E. I save money for
emergency
purposes or just in 3.34 2.8 3.83 3.4 3.11 3.39 3.31 Frequently
case I might need
extra money.
Table 8 shows the overall mean of statements under Savings. Getting the highest mean of
3.31, respondents save money for emergency purposes or just in case of need. Next, with a
composite mean of 3.08 were students allocating 10-20% of their allowance for savings. With an
overall mean of 2.60, the respondents open bank account or have a treasure box where they can
deposit their savings. Lending part of their allowance rather than spending it got a composite mean of
2.24 and with a composite mean of 1.86, being the lowest, students answered that they join in ease-
up system or “paluwagan”.
Page | 27
Table 9
Summary of Composite Mean per Program
Table 9 shows the composite mean of each variable per program. Based on the table, it is
rare for all the programs to include transportation in their budgeting practices. For Meal, all programs
except LM students frequently budget their allowance for food and meal. Luxury and Leisure was
regularly included in the business students’ allocation of budget. All respondents except for HRDM
students do practice budgeting for Projects and Books. Business students habitually practiced
budgeting for Communication and it is only the BSAT respondents who rarely practiced Savings.
Page | 28
CHAPTER 5
Summary of Findings, Conclusion, Recommendations
This chapter includes the results of the research and covers the findings, conclusion and
recommendations of the researchers.
Summary of Findings
This study was conducted to determine the different budgeting practices of the College of
Business Students. The researchers made use of descriptive method and survey questionnaires were
disseminated to gather data. The sample was composed of 32 BSA, 10 BSAT, 12 FMA, 10 HRDM, 18
LM and 18 MM students.
There were six (6) variables identified as the factors affecting the personal budgeting practices
of students.
The salient findings of the research were as follows;
1. The profile of the students in terms of

1.1 Age
Of the respondents, 49% were 19-21 y/o, 42% of them aged 16-18 y/o, and only 9%
aged 22 and above.
1.2 Gender
The respondents were divided into 68 Females and 32 Males.
1.3 Program
The respondents in terms of program was divided into 32% BSA students, 18% are
MM and LM students, 12% are FMA students, and only 10% are HRDM and BSAT
students.
Page | 29
1.4 Year level

The respondents were composed of 22 first year students, 19 second year students,
26 third year students, 26 fourth year students and 7 fifth years.
1.5 Class schedule
Majority of the respondents have morning classes.
1.5 No. of class days per week
For the number of class days, 86% have 5 days of class, 12% have 4 days of class,
2% have 3 days of class.
1.6 Allowance
The result in terms of students’ allowance, 35% of the respondents has 300-650 for 5
days of class per week, 26% has 651-1000 allowance for 5 days of class per week, 24%
has 1001-1500 allowance for 5 days of class per week, 6% has 651-1000 allowance for 4
days of class per week, 4% has 300-650 allowance for 4 days of class per week, 2% has
1001-1500 allowance for 4 days of class per week, 1% has 1001-1500 allowance for 3
days class per week, 1% has 651-1000 allowance for 3 days of class per week, and one
of them specifically disclose an allowance of 2000 for 5 days of class per week.
2. The personal budgeting practices of CBE students as to:

2.1 Transportation
Based on the tables on Chapter 4, Transportation got an overall composite mean of
2.12 for BSA, 2.18 for BSAT, 2.48 for FMA, 2.2 for HRDM, 2.07 for LM and 2.24 for MM. It
can be determined that Transportation was the variable that was rarely included in
business students personal budgeting.
2.2 Meal
With reference to Chapter 4, Meal has a composite mean of 2.69 for BSA, 2.56 for
BSAT, 2.75 for FMA, 2.58 for HRDM, 2.49 for LM and 2.71 for MM. All programs except
the LM students frequently budget for meal.
Page | 30
2.3 Luxury and Leisure

The composite mean of Luxury and Leisure per program were: 2.68 for BSA, 2.54 for
BSAT, 2.7 for FMA, 2.92 for HRDM, 2.69 for LM and 2.83 for MM. This variable was
frequently included in the business students’ allocation of allowance.
2.4 Projects and Books

Projects and Books has an overall composite mean per program of 2.73 for BSA, 2.42
for BSAT, 2.55 for FMA, 2.42 for HRDM, 2.78 for LM and 2.69 for MM. All respondents
except for BSAT frequently include Projects and Books in the budgeting practices.
2.5 Communications
The composite mean for Communications per programs were: 2.66 for BSA, 2.64 for
BSAT, 2.78 for FMA, 2.84 for HRDM, 2.54 for LM and 2.64 for MM. All the respondents
agreed that they regularly practice allocating their allowance for Communications.
2.6 Savings
Savings have an overall composite mean of 2.57 for BSA, 2.4 for BSAT, 2.82 for
FMA, 2.58 for HRDM, 2.54 for LM and 2.79 for MM. All programs except BSAT frequently
saved money from their allowance.
3. Significant difference on students’ personal budgeting practices and their profile?

It can be determined from the data gathered that there exists a significant difference
on how students budget their allowance based on their profile. The level of preference
they gave each factor varies. Clearly, the differences in the profile of the students have an
important effect on how students budget their allowance. In the tables on Chapter 4, it can
be observed how frequently or rarely do they practice the statements under each variable.
Page | 31
Conclusions
Based on the findings, the researchers concluded that for each program, the level of
preference in terms of the variables differed. This means that there is a significant difference in their
personal budgeting practices. It can be due to the differences in their profile e.g. the amount of
allowance and number of class days per week.
It was also determined how frequently or rarely do they practice the statements under each
variable in their personal budgeting.
For BSA and FMA students, they rarely allocate their allowance for Transportation while they
frequently budget for the other variables. BSAT students rarely do budgeting for Transportation and
Savings while frequently include the other variables in the allocation of their allowance. HRDM
students rarely include Transportation and Projects and Books in their budgeting while regularly
include the other variables in their personal budgeting practice. For the LM students, it was rare for
them to practice budgeting for Transportation and Meal. It was only Transportation that was rarely
included in the MM students personal budgeting.
The only significant coherence in their allocation of allowance is for the transportation. All
programs agreed that this variable came last in terms of their spending. It shows that this was the
most insignificant variable for the business students. It can be due to many factors such as living in a
dorm or finding alternative routes to lessen their transportation expense. Another similarity in their
personal budgeting is in terms of Luxury and Leisure and Communications were all the respondents
agreed that they frequently include these variables in their budgeting.
Page | 32
Recommendations
According to the study, the researchers would like to recommend that the students should
continue to prioritize savings on their budgeting. A theory in economics suggests that before income
would be available for consumption, savings must be taken out first. It’s actually applicable for
business students so that they won’t be spending ahead of their allowance. It’s important to avoid
overspending for things that were unnecessary like the luxury and leisure.
Prioritization should be practiced in order to allocate allowance to those variables that really
matters. Students must understand the importance of proper budget planning to prepare them to be
independent in the future. Also, what students’ learned from this study would be beneficial for them so
they must be able to apply those learning on their daily lives.
The researchers would also like to recommend for college department to conduct a program
or seminars that would help the students to develop their skills and knowledge in financial
management.
Page | 33
BIBLIOGRAPHY
(Norvilitis, et al., 2006)
Foreign Lit (source: money.usnews.com)
Foreign Stud (source: http://www.aabri.com/manuscripts/10670.pdf)
Local Lit (source: http://www.philstar.com/campus/extra-curricular-

activities/2014/05/26/1327597/breakdown-students-allowance)
(source:https://www.scribd.com/doc/85158411/A-DESCRIPTIVE-RESEARCH-ON-ALLOWANCE-
AND-BUDGET-OF-SECOND-YEAR-STUDENTS-OF-UNIVERSITY-OF-SANTO-TOMAS-COLLEGE-
OF-FINE-ARTS-AND-DESIGN)
Page | 34
APPENDIX
Appendix 1. Sample Survey Questionnaire with Cover Letter
Page | 35
Page | 36
Page | 37
Appendix 2. Tally of No. of Class Days and Weekly Allowance of

Business Students per Year and per Program
Page | 38
Appendix 3. Overall Tally of No. of Class Days and Weekly Allowance of

Business Students per Program
Appendix 4. Tally of Sample Population of Business Students by Gender
Page | 39
Appendix 5. Tally of Sample Population of Business Students by Age
Page | 40
Appendix 6. Survey Tally of BSA Students with Weighted Mean
Page | 41
Appendix 7. Survey Tally of BSAT Students with Weighted Mean
Page | 42
Appendix 8. Survey Tally of FMA Students with Weighted Mean
Page | 43
Appendix 9. Survey Tally of HRDM Students with Weighted Mean
Page | 44
Appendix 10. Survey Tally of LM Students with Weighted Mean
Page | 45
Appendix 11. Survey Tally of MM Students with Weighted Mean
Page | 46

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Technological Institute of the Philippines – Manila

College of Business Education

The Problem and Its Background

Background of the Study

Statement of the Problem

1. What is the profile of the students in terms of:

2. What are the personal budgeting practices of business students as to:

3. Is there a significant difference on students’ personal budgeting practices and their

Figure 1. Research Paradigm

The diagram shows the organization of ideas.

Scope and Delimitation

Significance of the Study

According to Merriam-Webster Dictionary, budgeting is an amount of money available for

Budgeting - budgeting is a process. This means budgeting is a number of activities performed in

Transportation -mode of travelling from home to school.

Meal - the food students eat at school.

Communication - means of connection between people or places, in particular.

Savings - the amount or money the students have saved.

Descriptive method - is used to describe characteristics of a population or phenomenon being

Slovin Formula - is used to calculate the sample size.

Review of Related Literature

The breakdown of students' allowance

In an article in money.usnews.com, it gives eight guidelines to help in successfully building

Clearly, a limitation of the study is that it focused on a relatively homogenous population at

Methods of Research Used

Population and Sampling

Table 1. Distribution of Sample

Programs No. Of Respondents

Data gathering procedure

1. Frequency and Percentage

Table 2. Level of Agreement

CM = WM1 + WM2 + … + WMN

WM1 = Weighted Mean of 1st cell

WMN = Weighted Mean of nth cell

Presentation, Analysis and Interpretation of Data

GRAPH 1. GENDER DISTIBUTION OF SAMPLE

GRAPH 2. AGE GROUP OF BUSINESS STUDENTS

GRAPH 3. SAMPLE POPULATION OF BUSINESS

GRAPH 4. WEEKLY ALLOWANCE OF BUSINESS STUDENTS

Summary of Weighted Mean with Verbal Interpretation (Transportation)

WEIGHTED MEAN Composite Verbal

Summary of Weighted Mean with Verbal Interpretation (Meal)

WEIGHTED MEAN Composite Verbal

Summary of Weighted Mean with Verbal Interpretation (Luxury and Leisure)

III. LUXURY AND WEIGHTED MEAN Composite Verbal

Summary of Weighted Mean with Verbal Interpretation (Projects and Books)

IV. PROJECTS AND WEIGHTED MEAN Composite Verbal

Summary of Weighted Mean with Verbal Interpretation (Communications)

V. WEIGHTED MEAN Composite Verbal

Summary of Weighted Mean with Verbal Interpretation (Savings)

WEIGHTED MEAN Composite Verbal

Summary of Findings, Conclusion, Recommendations

The salient findings of the research were as follows;

1. The profile of the students in terms of

1.4 Year level

2. The personal budgeting practices of CBE students as to:

2.3 Luxury and Leisure

2.4 Projects and Books

3. Significant difference on students’ personal budgeting practices and their profile?

(Norvilitis, et al., 2006)

Foreign Lit (source: money.usnews.com)

Foreign Stud (source: http://www.aabri.com/manuscripts/10670.pdf)

Local Lit (source: http://www.philstar.com/campus/extra-curricular-