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THE BUDGETING SKILLS AND ACADEMIC PERFORMANCE OFSENIOR HIGH SCHOOL STUDENTS AT THE COLLEGE OFST. CATHERINE QUEZON CITY FOR THESCHOOL YEAR 2019-A Research Paper Presented to the College of St. Catherine Quezon City Senior High School DepartmentIn Partial Fulfillment of the Requirements In Accountancy...

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THE BUDGETING SKILLS AND ACADEMIC PERFORMANCE OF SENIOR HIGH SCHOOL STUDENTS AT THE COLLEGE OF ST. CATHERINE QUEZON CITY FOR THE SCHOOL YEAR 2019-2020

A Research Paper Presented to the College of St. Catherine Quezon City Senior High School Department

In Partial Fulfillment of the Requirements In Accountancy, Business and Management Strand Under the K-12 Program of the Department of Education

JUSTICE MARIE S. BORAL CHARLON P. CHAVEZ FRANCES KYLA P. FONG ALEXA CRIS Y. MACENAS LARAINE L. PARDILLO

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Chapter 1 THE PROBLEM AND ITS BACKGROUND

Introduction According to Amanda Daper (2017), a common mistake that students make was not creating and sticking with a reasonable budget. Students who do not create and stick to a reasonable budget run the risk of running out of money before the end of the first semester or the end of the school year. In Addition, Stollak (2011) mentioned that they had a hard time budgeting their allowance in order to buy the requirements on other expenses related to their project. In fact, Felipe (2007) stated that “A lot of the numbers of students seem to want what was the “in” trend what people are doing or using “right now”. Nowadays, most people can’t live without having money, and one of those are students, money was one of the most needed things for the students in their everyday spend like transportation, foods, wants, and the most important school expenses. And as a student at the same time being part of millennials, they want to be in trend and buy everything they want. And for them to provide what they get some money on their allowance. That the reason why they can’t manage effectively their everyday money. In a study entitled “Student Budgeting and Spending Behaviors: A Comparative Study” Novilitis et al., (2006), the more knowledge students have about their financial responsibility and status the less likely they are to be in debt. As well as, “DAILY ALLOWANCE: How Does it Affect the Academic Performance” Failaman (2017), mentioned that “Student tend to spend their allowances on their recreational activities such as, renting computer unit for fun and games, buying items at the shopping mall, and

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spending for the peers. Teens were active consumer in terms of the money they spend, as well as in the influence they wield in their families and on societal trends. Despite being raised in a period of rapid change they display remarkable self confidence in their judgment” Therefore, students were living on how to budget their daily allowance, and to be responsible for budgeting. Students think of budgeting as something to do when they were short on cash but when they have their allowance, they will spend it on recreational activities. Students have the tendency to spend their allowance on their daily needs in school and some of them spend it on what was trend or new. Every individual can experience, even to see and to hold money. It could be a form of a metal coin or piece of paper, but people value this to sustain everyday needs. A student that uses money every day should be responsible for how much money they spend in daily lives. In line with this, not all related study in this research concern and or connected to academic performance. Some study was concern only to budgeting skills alone, also by the program budgeting requires considerable investment of resources and high potential for conflict. The purpose of this study was to determine the relation of Budgeting Skills and Academic Performance of Senior High School Student at the College of St. Catherine Quezon City. The poor knowledge about budgeting skills and spending money was one of the problems for parents, society in general as well as for the students. This study will provide information and strategies about budgeting. According to Novilitis, et al., (2006)

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more knowledge students have about their financial responsibility the less likely they were to be in debt.

Background of the Study As stated by Miriam Caldwell (2019), other mistake that people make was by classifying their wants as needs. When something was classified, as a need, they do not consider cutting back on it as much at first. They can also lump needs and wants into the same category, which can make it harder. For example, food was considered a need, eating out a want. Their necessities are needs, food, shelter, and power. Transportation within reason can be a need depending on where you live. In addition, needs were something that the people must have or need for survival and wants refers to something which is good to have, but not essential for survival. That was a common mistake that the people do when they were spending, they don’t classify their needs and wants. Also, students were spending their money on many expenses but sometimes they just focus on spending their money on recreational activities. According to Telegraph Co. UK, (2007), Historical terms, the annual Budget was a relatively new invention. Its origins, however, lie in centuries of monarchs mismanaging the country's finances. It was not until the early 18th century that a version of the annual Budget emerged. The origins of the word Budget lie in the term "bougette" - a wallet in which documents or money could be kept. While at first referring only to the Chancellor's annual speech on the country's finances, the word quickly became used for any financial statement or plan. Moreover, according to Cleverism (2019), planning was the ability to think about and successfully manage activities, with the help of any

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available resources, to achieve specific goals was known as ones planning skills. Planning was basically a roadmap that guides us on how to complete a task before attempting to begin it. Creating this spending plan allows them to determine in advance whether they will have enough money to do the things they need to do or would like to do. Planning was a guide on how to budget your money in a daily life. In addition, as cited by George Peters (2014), budget ought to influence decision making. First and foremost a budget was a monetary statement or a quantitative course of action, prepared and approved prior to a defined period of time. It contains the goals and aspiration of a business organization. Budgeting involves planning and control which influences decision; however, budgets are drawn from past experiences future expectations which will serve as a guide for decision making. From a budget, standards were set through control mechanism to as to reduce to the nearest minimum adverse variances when the actual occurred. Through budgeting, a student makes decision on how to budget their money rather spend to their daily needs in academic purposes. Decision making can help students to budget and manage their money or allowance. Godfrey (2013) that an allowance was not an entitlement or a salary. It was a tool for teaching how to manage money. Allowance was an amount of money given. It was a need for Students where they can save up for their wants or daily needs. Allowance also serves as salary that you need to divide for expenses at school as well as the students’ needs. In addition, according to Miriam Caldwell (2019), budgeting was one of the biggest keys to managing your money. Many people were often turned off by the simple

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term budget. They associate it with restriction s and a lot of hassle and headaches. They may feel like they were too poor to budget or have other budgeting excuses. This study seeks to know the relationship between budgeting skills and academic performance of senior high school students. The researchers conducted this study to provide information that can benefits for the respondents and students in improving their skills about budgeting. Knowing budgeting maybe good for the students as they can be more responsible in spending their money wisely.

Theoretical Framework The researchers will discuss the study through the aid of several theories. The following theories listed below will help the researchers in determining the relationship of the budgeting skills and academic performance of the respondents. Theory of Personal Budgeting (Garpelti, 2016) in this theory, all existing studies informally suggest that consumers use personal budgets to manage self-control problems, often caused by present bias, which interferes with their saving goals. It says that consumers use personal budgets Allocation of Resources Theory (Peteraf and Barney, 2003) in this theory, resource allocation was taken to be overall allocation of financial resources. It was closely related to budgeting, which was concerned with statements of specific expenditure plans. In corporation or individual it explains how to distribute financial resources through budgeting process to attain financial goals.

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Economic Theory (Lewis 1957) explains how the concept or marginal utility a traditional microeconomics theory could be used to determine the relative financial value of goods to substantiate allocation of resources that in the aggregate would improve financial performance of a corporate. This theory emphasizes on procedures that were applicable for budgeting while considering all resources as scarce and appropriate for attaining the financial performance. Institutional Theory (Covaleski et al 1996; Baxter and Chua, 2003) based research tends to focus on the budgeting process as a whole (which can be considered the budgeting variable of interest): the interrelated analyses, interpretations, and negotiations that constitute budgeting. That based research tends to focus on the whole budgeting process. Interrelated analyzes, definitions and budgeting negotiations. Discovery learning and constructivism (Bruner (1966), Jean Piaget (1960)) this theory, discovery learning refers to the process of obtaining knowledge through one effort, in the classroom, discovery learning often occurs through structured of directed activities that were required students to manipulate, investigate, and explore materials that may lead them to discover important principles or relationship. These theories will support the study in determining the relationship between budgeting skills and academic performance. In line with this, the theories namely; theory of Personal Budgeting, allocation of resources theory, theory of institutional theory, and discovery learning, and constructivism will be able to help the students regarding how to allocate their budget to achieve their financial goals.

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Conceptual Framework

Demographic Profile Age Grade Level Strand

Budgeting Skills

Academic Performance

Planning Skills Decision Making

Figure 1. Research Paradigm Presented in Figure 1 was the research paradigm of the study. It shows the Budgeting Skills of the respondents who were planning kills and decision making, it also includes the Academic Performance of the respondents which was the final averages in the first semester of the school year. The respondents will be surveyed based on how much they apply each of the budgeting skills towards their studies. Also, the academic performance will also be gathered through the survey. These factors combine the profile of the respondents. And will be assessed by comparing the results of the survey to their academic performance.

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The desire outcome that the result can help make strategies and techniques to the respondent about on how will they able to use the variable wisely. In addition, the result should show the relation between budgeting skills and academic performance.

Statement of the Problem This study aims to know the relationship between the Budgeting Skills and Academic Performance of Senior High School Students at the College of St. Catherine Quezon City. Precisely, this study seeks to answer the following: 1. What is the demographic profile of the respondents in terms of: 1.1 Age 1.2 Grade Level 1.3 Strand 2. What is the Academic Performance of the respondents for the first semester? 3. What is the Budgeting Skills of the respondents? 4. Is there any relationship between Budgeting Skills of Senior High School Students to their Academic Performance? 5. What are the problems encountered by the respondents in terms of Budgeting?

Hypothesis Hn There is no relationship between Budgeting Skills and Academic Performance of the Senior High School Students. Ha There is relationship between Budgeting Skills and Academic Performance of the Senior High School Students.

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Locale

Figure 2. Locale Map College of Saint Catherine Quezon City is Located at 362 Quirino Highway, Sangandaan, Quezon City, 1116 Metro Manila College of St. Catherine Quezon City, formerly St. Theresa's School of Baesa, initially operated as a non-stock educational institution registered on March 22, 1993 under the laws of the Republic of the Philippines. It started to offer a tri-level educational program: Pre-elementary, elementary and secondary. The school was housed in one (1) school building and later the annex building was constructed to meet the demand for an increasing enrollment. Inspired by its vision, the school offers a truly Christian education

to the children and youth by harmoniously developing physical, intellectual and spiritual qualities as well as their emotional and social endowments so that they may become good and useful citizens of the country. Ten years later, in the school year 2004-2005, the school was registered under a new name, College of St. Catherine Quezon City and simultaneously the birth of the collegiate department of the school with initial program offerings: Bachelor in Secondary Education and Bachelor of Science in Information Technology. In order to meet the demand of its market, the school was issued permits to operate new programs like bachelor’s in business administration, Bachelor in Elementary Education and TechnicalVocational courses.

Scope and Delimitation

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The researchers will focus on The Budgeting and Academic Performance of the students. This study undergoes a correlational type of research design, for it tries to determine two variables, these were the budgeting skills and academic performance of the students. The respondents of this research study are the senior high school students coming from the different strands that will be picked randomly with a total number of 265 students by the sampling technique called stratified random sampling. In addition, the researchers will collect the demographic profile, allowance, and academic performance of the respondents that will serve as the collected idea as a whole. This study does not cover the student’s socio-economic status. For instance, the respondent’s parents’ income and the social class which the respondents belonged to, such as poor, average, and beyond average.

Significance of the Study This study was encouraging everyone to give reliable information on how the budgeting skills of the respondents affect their academic performance. The findings of this study sought to be beneficial to the following: For the Students, through this study, the students will have a deeper understanding of budgeting, and they will have a deeper knowledge about budgeting skills and its importance. For the Parents, for them to help their young ones in term of studying budgeting as they knew more about budgeting skills

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The Youth. For them to be more aware and conscious about the budgeting skills and help them to remain their knowledge about budgeting. For the Researchers. For this study would serve as springboard for their goals in achieving facts, information and knowledge about the student’s awareness about the budgeting and it effect to their academic performance. For the Future Researchers. The ideas presented may be used as reference data in conducting new researchers or in testing the validity of other related finding. This will also serve as their cross reference that will give them a background or an overview about budgeting skills. The researchers recommend The Effectiveness of Having a Budget Plan as their research topic. Definition of Terms To understand the term used in study, here was the definition of terms: Academic Performance – Is the measurement of student achievement across various academic subject. It refers to the final grade of students. Allowance – A current medium of exchange in the form coins and banknotes. An amount of money that daily needed of a student. Budget – A plan used to decide the amount of money that can be spent and how it will be spent. A student how to spend their money in daily needs. Budgeting Skills – The ability of an individual to adopt a proactive approach towards managing his own money is. On how to budget the student their daily allowance. Expenditure – An amount of money spent. The spending of money in academic purposes.

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Expenses – The cost required for something; the money spent on something. Planned expenses made by student in response to their daily life. Financial – relating to money. A student financial in budgeting. Planning – The process of making plans for something. A planning to budget their money in academic purposes or daily needs. Scarce – very small amount or number. Amount of allowance that given to student. Students – Refers to the student that lack of knowledge about budgeting. A student who is studying at a school or college.

Chapter 2 REVIEW OF RELATED LITERATURE AND STUDY

This chapter provides an overview of previous research that will support this study. It introduces the studies related to this correlational research that comprises the main focus of the research entitled “The Budgeting Skills and Academic Performance of the Senior High School students at the College of St. Catherine Quezon City” and it includes the following studies below.

Budgeting Budgeting was essential to everyone, especially to those students who has limited budget to sustain their wants and needs for their personal interest. According to Ryerson (2014) a budget is a plan that shows all your monthly cash inflows and outflows. It is a snapshot of what you have and what you expect/plan to spend, helping you identify your

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spending and savings habits and achieve your financial goals. The most essential part of a financial plan is budgeting. The money a person has is not a sign of how much money they make, but a sign of how efficient their budget is. If you want to manage your finances effectively, you need to know where your money is going. Contrary to how it seemed, budgeting is not difficult, it is not complicated, and it does not diminish the happiness of your life, budgeting saves you from future financial hardship and a life of debt. The Budget Cycle As expressed by[ CITATION Swa10 \l 1033 ], The spending procedure speaks to a period situated point of view on planning exercises from a starting to an end. A line item format is characterized by a list of what will be purchased in (varying level of detail). Sometimes lines are referred to as object of expenditure. The key thoughts are details with control, responsibility, and genuineness. People take different perspectives when making a budget, Perspective on budgeting reflect what people see or expect in budgeting in what they hope to accomplish through it. Three themes and fine values are associated with budgeting respective. The three themes are control, management, and planning. People express the control theme in being concern about the details of expenditures. The study of budgeting history provides an opportunity to see how present-day budget practices came into existence. Present day practices make more sense when one understands the historical circumstances from which they arose.

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Financial Literacy According to[CITATION Man09 \l 1033 ],the term "financial literacy" generally refers to the ability of consumers to make financial decisions in the short or long term for th...