1

Chapter 1

INTRODUCTION

Have you ever experienced budgeting in school? As part of the Philippine

education, we have observed that a number of senior high students have a problem of

budgeting their allowance. Especially, in the school expenses that can be related into

paper works or school related including photocopy, and research papers, “budgeting can

help you control spending” (Bob, 2019). When will be the time to begin this budgeting?

There are many benefits to create this budgeting on your life because money consider as

one of the main necessity plays a significant role in every students to survive a Senior

High School.

Budgeting is the best way to see that you’re a responsible students and this will

make the students know more about budgeting in a good way it will also change your

behaviour, budgeting will also getting your expenses under control (Bob, 2019).

Based on our research, many of the students particularly people have reasons why

they don’t want budgeting, you can’t buy what you want example are the food you want

or the things you want because you are budgeting your allowance or money. Your

emotional brain responds to the word budget the same way it responds to the word diet.

The connotation is deprivation, suffering, agony, depression (Kristin, 2017). A budget

implies scarcity, needs, and desire and it’s our instinct to overcome those and the best

way we know: spending our money. That’s why budgeting their allowances give a hard

time to many students when they feel hungry and can’t help to buy.
 2

In this, topic we want to know what will be their strategies and the way they

budget their allowances in terms of school. This will help the students learn to save their

allowance as they grow and meet different requirements in school as well things they

want to buy for their own. One of the practical skills that come in useful for them is

budgeting (Norvilitis, et. al., 2006). Budgeting helps the students to attain a better

understanding of financial matters that would become handful or useful in their future.

This study will inform the people and other stakeholders in education the

budgeting ways of senior high students in Davao City National High School. Findings of

this study enable the people to persuade senior high students on budgeting allowance.

This study would also expose parents to the need of budgeting that will expose them to

guide their children.

Furthermore, budgeting an allowance of the students becomes a phenomenal

dilemma. Students get difficulties how to budget their allowance example poor person

while some in middle-class of the students society are not totally conscious about their

money. An effective way of budgeting is to make a list or to do list their needs rather than

wants.

Purpose of the Study

The purpose of this phenomenological study is to discover the ways or strategies

of the students on budgeting their allowance.

 3

Research Questions

This research work seeks to answer the following questions:

1. What Budgeting Strategies would you adopt in your living?

2. How can budgeting help in daily life expenses?

3. How budgeting affect your allowance in school?

Theoretical Lens

This study is anchored on the following theoretical underpinning:

A Theory of Personal Budgeting by Simone Galperti. According to this

theory, this analyzes the link between personal budgets to manage self-control problems

in consumption-saving decisions (Simone, 2017). It explains the subtle mechanism which

renders budgets useful commitments, their interaction with minimum-savings rules, and

how budgeting depends on the intensity of self-control problems and with support of

marginal utility analysis on the way they spend and the behaviour of the person.

Budgeting process must be hard to students in terms of school projects or

something that make them spend their money, in this topic we will know their ways to

adopt by many students and to know the most effective way on budgeting aiming to help

them.

Scope and Limitation of the Study

This study is focusing only to the senior high students of Davao City

National High School. The researcher will meet students with various strands who had a

problem of budgeting or don’t know how to budget their money. The research assume

that they will met various challenges when conducting the research including
 4

participating to our research. The research wills confidentiality claims the information

and the researcher must filter questions to avoid conflict “using his or her eyes and ears

and filters” (Lichtman, 2013 p.4). Time limitation made it impractical to include more

respondents in the study. This study was also limited by other factors in some

respondents may have been biased or dishonest in their answers. The study is only

conducted at Davao City National High School and therefore does not cover other

culture.

Importance of the Study

This phenomenological investigation is important to the following individuals and

groups:

Students. This study will help the students to know how to budget well their allowance.

Teachers. This study helps the teachers to guide and help their students who don’t know

how to do budgeting by seeing this research.

Parents. This research helps the parents on teaching their child in budgeting there

allowance.

Future researcher. They can use this as their guide and reference in their research or

study in the future.

Definition of Terms

The following terms are defined operationally for better understanding:

Budgeting- Budget is an estimation of revenue and expenses over a specified

future period of time and is usually compiled and re-evaluated on a periodic basis.
 5

Budgets can be made for a person, a family, a group of people, a business, a government,

a country, a multinational organization or just about anything else that makes and spends

money. At companies and organizations, a budget is an internal tool used by management

and is often not required for reporting by external parties.

Ethical Dilemma-An ethical dilemma (ethical paradox or moral dilemma) is a problem

in the decision-making process between two possible options, neither of which is

absolutely acceptable from an ethical perspective. Although we face many ethical and

moral problems in our life, most of them come with relatively straightforward solutions.

Organization of the Study

The study is organized into three (3) chapters. Chapter one (1), Introduction gives

a brief background into budgeting among Senior High students. The chapter also presents

the purpose of the study, research questions, theoretical lens, and importance of the study

and the definition of terms. Chapter two (2) stresses on a detailed review of the relevant

literature on budgeting. Chapter three (3) presents the methodology of the study. Thus, a

detailed review of the processes through which the study will be carry.
 6

Chapter 2

REVIEW OF RELATED LITERATURE

The purpose of this chapter is to review literature related to financial knowledge

and financial behaviors of senior high school students. Topics to be reviewed include

senior high school student’s financial literacy, senior high school student’s financial

behaviors, the need for personal finance education at the secondary school level, and

views students toward their personal finance. The chapter concludes a summary. This

issue will be further explained the TO DO LIST: A Phenomenological Study on

Budgeting among Senior High School Students.

A budget is management’s formal quantification of the operation s of an

organization for a future period. It an aggregate forecast of all transactions expected to

occur. Budgets are thus part of the firm’s organizational architecture; they partition

decision rights and control behavior. Dwight D. Eisenhower, Supreme Commander of the

Allied Forces in Europe during World War II and the 34th president of the United States,

is quoted as saying, “In preparing for battle, I have always found that plans are useless

but planning is indispensable”. Budgets are form of planning. And as expressed by

Eisenhower, in many cases their value lies more in the process of planning than in the

actual budgets produced. Many times budget are obsolete before they can be

implemented because the world has changed in some unexpected manner. However, the

process of budgeting remains vital.

Budgets are an integral part of decision making by assembling knowledge and

communicating it to than managers with the decision rights. Budgets are developed using

key planning assumptions or basic estimating factors that are widely accepted forecasts of
 7

strategic elements faced by the firm. Typical planning assumptions are product prices of

key inputs. Budgets help assemble and then communicate these key planning

assumptions. Key planning assumptions represent those factors that are, to some extent,

beyond management control and that set a limit on the overall activities of the firm.

Students learn to save their allowance as they grow and meet different

requirements in school as well as things they want to buy for their own. Budgeting is one

of the practical skills that come in useful for them (Norvilitis, 2006). It helps them to

attain a better understanding of financial matters that would become handful in their

future. 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, 2006).

A number of online sites spread giving a complete guide covering all aspects of

personal financial management. The field has been numerous also discussed in textbooks,

publication articles from the popular press to academic journals, for instance, gender,

race, allowance, education, occupation, age and marital status (Anderson, 2000; Kemp,

2004). Those discussions merely analyzed the intersections of real life-course domains.

Yet, as students, they need to know how to manage their money practically to obtain the

greatest benefit from the money they earn or get from their parents. Students are quite

susceptible (Lee & Workman, 2015). Amongst students, the range of CBB was growing

from time to time (Roberts, 1998; Magee, 1994; Hassay & Smith, 1996). Mostly,

compulsive buyers buy items such as apparel, shoes, electronic devices, accessories,
 8

beauty haul, household things (Miltenberger, 2003). People with higher allowance have

more tendency to do CBB ( Guo & Cai, 2011). And for those who have limited amount, it

is still not adequately evaluated in some previous studies. Beside allowance, financial

planners suggest a way to discourage overspending like CBB. It is a well-known called

budgeting. The use of a budget is to control the flow of money. Budgetary is enlightening

to track expenses for a month and the compare actual expenditures to planned

expenditures (Chieffe & Rakes, 1999). Researches and articles on budgeting have been

conducted over the years (Horvath & Sauter, 2004; Goode & Malik, 2011 Lorain et. al,

2014). All those discussed the integration of budgeting system in the point of view of

company’s strategies in general.

Budgeting process still require more attention for the sake of the organizations,

and in changing the environment, it provides a set of source information that can serve as

a stable framework (Lorain, 2014). Meanwhile, as a framework, the use of personal

budgeting is still questionable, as some believe that budgeting help people in controlling

their spending (Antonides, 2011; Reka, 2014). Nevertheless, there is still a remarkable

lack of empirical research on the benefits that people who budget their money actually

gain from doing so.

Study conducted by the bank and financial institution, students fork over money

to buy cell phone load, to play computer games at Internet cafes and to buy cigarettes and

alcohol. They also spend money on going out and on clothes and accessories (TJ

Manotoc, ABS CBN News, 2010). Students hang out and shop. They are active

consumers in terms of the money they spend, as well as in the influence they wield in
 9

their families and on social trends. Despite being raised in a period of rapid change, they

display a remarkable self-confidence in their judgment (Tempo, 2010).

The Nature of budgeting almost every enterprise, regardless of size, complexity or

sector, relies heavily on budgets and budgetary systems to achieve strategic goals. The

success and importance of budgeting relates to the identification of organizational goals,

allocation of responsibilities for achieving these goals, and consequently its execution

(Shah 2007; Robinson 2007; Drake and Fabozzi 2010). It is one of the most successful

and useful management accounting techniques that can reap handsome rewards if

properly understood and implemented. The process of budgeting involves setting

strategic goals and objectives and developing forecasts for revenues, costs, production,

cash flows and other important factors (Jr. Bierman 2010; and Bonner 2008). By putting

together a financing and investment strategy in place, this will allow those responsible for

financing of the company to determine what investment can be made and how these

investments will be financed. “In other words, budgeting pulls together decisions

regarding capital budgeting, capital structure, and working capital.” (Drake and Fabozzi

2010: 115). The end result of the process is the production of the formal document

referred to as a “budget”. The Special Issue on Social Science Research

www.ijbssnet.com © Centre for Promoting Ideas, USA 111 According to Campbell

(1985), a budget is a quantitative analysis prior to a defined period of time, of a policy to

be pursued for that period to attain a given objective. Its main purpose is to aid in the

achievement of objectives and direct managerial effort (through planning, co-

coordinating, measuring and rewarding) throughout the organization towards global

purpose. Like Campbell (1985), other writers such as Drake and Fabozzi (2010), Bonner
 10

(2008), Jr. Bierman (2010), and Miller et al (2001) have all agreed that budgeting is

mapping out the sources and uses of funds for future periods. However, it is believed that

there are both technical and behavioral aspects to budgeting that can benefit all firms if

properly understood and co–ordinate. Although the technical aspect is always

emphasized as being most important, Campbell (1985) indicates that the recognition of

both the technical and behavioral aspects of budgeting is essential, if goal and behavior

congruence1 are to be achieved. Recognizing this dimension, Hope & Fraser (2001),

Morris et al (2006), Boon et al (2007) and other writers in the field are now focusing on

the organizational and behavioral changes needed to support the budgeting process. This

is reflected in the latest set of twelve Beyond Budgeting principles, which entails a shift

from financial performance emphasis to one based on people. The technical component

of budgeting deals with a mathematical computation of projected costs and expenses and

has been heavily emphasized in the public sector. The behavioral component however

focuses on the ability to achieve the technical aspect of budgeting with the use of people.

Having observed the nature of the budgeting process Hopwood (1974), Redman and

Wilkinson (2009), Boxall and Purcell (2008) and Eamets et al (2008) argues that

behavioral and social aspects are an integral part of the budgeting process and should not

be divorced from the technical side. As such, organizations should recognize that the

effective use and application of any budget is very much dependant on the extent to

which employees are committed to the ideals of the budgetary process and encourage

behavior that is in accordance with the entity’s objectives. Bratton and Gold (2007: 442)

assert that an organization can build capacity through employee participation and

empowerment.
 11

Money Management Several studies address money management as one aspect of

financial aid (Coomes, 1992; Dennis, 1983; Hira & Brinkman, 1992; Holland & Healy,

1989; McDougal, 1983; Moreland, 1986). Other research examines the relationship

between money management and credit (“Planting the seeds,” 1992; Broebeck, 1992;

McEldowney, 1994; Murdy, 1995; Rush, 1995). A third body of research looks at money

management as part of the larger issue of consumerism (Garman & Bach, 1995; Glade,

15 1991; Herrmann, 1982). These studies provide valuable insight about money

management in relation to other financial management skills. One financial management

component, money management, has been examined in relation to college students

(Anderson et al, 1993; Archer &Lamnin, 1985; Danes & Hira, 1987; Heckroth, 1993;

Ingalls, 1990; Jackson & Pogue, 1983; Murphy & Archer, 1996). These studies offer

insights about college students’ needs, attitudes, and knowledge about money

management.

Self-control which is linked to CBB has been actually discussed in some prior

studies (Billieux, 2008; Gupta, 2013; Achtziger, 2015). For instance, Billieux mentioned

that three aspects (urgency, perseverance lackness, and premeditation lackness) that

correlated with compulsive buying (Billieux, 2008). Some studies followed by looking

from a marketing perspective (Gupta, 2013) other causes of CBB due impulses or lacks

self-control (Zuraigat, 2012). Yet, a limited resource of self-control as financial control

domain related to CBB is lacking. In this study, self-control is linked to CBB to see

the influence of excessive buying decision making as financial control. The purpose of

this study is to identify the effects of allowance, personal budgeting, and self-control as

mediating role on CBB. This study hopefully will give a significant facilitation for
 12

college students in giving suggestions to prevent CBB by being aware of the importance

of allowance, personal budgeting, and self-control.

A range of approaches are employed to challenge and engage students. Simulation

activities, such as those described here, are not new to political science

pedagogy. Various authors describe how these activities successfully reinforce content

(Mariani, 2007), promote increased engagement (Endersby & Webber , 1995), and foster

other desired outcomes (Baranowski, 2006).

Simulations create settings for “complex, dynamic political processes in the

classroom, allowing students to examine motivations, behavioral constraints, resources

and interactions among institutional actors” (Smith & Boyer, 1996). These exercises

can be utilized to increase student participation and engagement with course material

(Wallin, 2005). These activities are used to enhance teaching and learning in a number of

content areas including international relations (Asal & Blake, 2006; Kanner, 2007;

Raymond & Sorenson, 2008;Shellman & Turan, 2006), budgets (Taylor, 2011; Wallin,

2005), legislative settings (Baranowski, 2006; Frederking, 2005; Rackaway & Goertzen,

2008), and elections (Caruson, 2005; Mariani, 2007). Generating student enthusiasm

around the topic of budgeting can be difficult. Courses on public budgeting often attract

different students than those who are interested in specific policy topics. Putting students

in the midst of a budget cycle can be one way to make this process real (Kanner,

2007). Seek to overcome the difficulty of teaching Congress (Sands & Shelton, 2010),

and others explore the use of similar approaches in teaching other political and

governmental processes, aside from Taylor, there are few references for those seeking to

create activities focused specifically on teaching elements of local school

 13

governance. There is similarly a paucity of examples where simulations have been used

to explore broader issues of education policy of particular relevance to the courses

described in this article is the utility of these approaches in giving students opportunities

to directly apply theory (Kanner, 2007), to enhance their understanding of course material

(Mariani, 2007), and to afford greater understanding of political processes(Baranowski,

2006). Students are also challenged and caused to explore differing perspectives when

they “put on the skin” of another by taking on a different role than they might be

accustomed to playing (Kanner, 2007). Of significant value, especially when teaching

students from a range of disciplines outside of political science, is the ability “to make

interesting what can otherwise seem a very dull topic” (Wallin, 2005). While the political

science teaching literature often refers to this approach as simulations or role-play

activities, our experience as colleagues from political science and education in team-

teaching the Education Politics and Policy course highlighted the integration of

perspectives and approaches represented by the literature from education. The field of

education has long promoted active learning, often referred to as experiential learning

(Burns, 2007; Kohn, 2010; Ohanian, 2005). The idea behind this approach is that learners

are not sponges, passively taking in information by listening or reading, but need to make

sense of the material by actively engaging in it. Another trend prominent in the field of

education is that the syllabi must include measurable, observable learning outcomes.

Through articulating the learner outcomes, active learning naturally shapes the course

activities (Garry, 1995; Trigwell & Prosser, 1991). For example, “students will

understand the budget process” may not yield the same type of class activities as

would “students will analyze competing interests in balancing the school district budget.”
 14

The former objective could be delivered through lecture and measured through exams,

while the latter would probably require some hands-on experience with competing

interests (what they are, how they operate, how they negotiate issue positions and/or

coalesce). In sum, when it comes to the use of simulations and role-playing, the education

and political science pedagogical literatures have significant similarities. The more

knowledge students have about their financial responsibility and status the less likely they

are to be in debt (Norvilitis, 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, 2006). Although, students are concerned

about their future financial status; 67% of freshmen at academy 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, 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).

 15

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, 2006).

Money management skills are the process of budgeting, saving, investing,

spending the cash usage. Though it is not something we are born with, they are acquired

over one’s lifetime through many successes and some failures as well. “An allowance is

not an entitlement or a salary. It is a tool for teaching children how to manage money.”

(Godfrey, 2013) Allowance is an amount of money given. It is a need for teenagers where

they can save up for their wants or daily needs.

The manner in which students manage their money is based on several factors

such as age, personality traits, and knowledge. These factors form the basis for the

budgeting and spending habits of students (Norvilitis, 2006). A critical component of

managing money is the maintenance of a financial budget (Kidwella & Turrisi, 2004).

Budgeting can be defined as the allocation of part or all of a person's total financial

resources into distinct categories in order to plan and control expenses against a tangible

monetary forecast. This definition relies on the assumption that funds are depleted on

expenses thus making future purchases less likely. In this regard budgeting can be viewed

as a strategy to manage personal finances with the purpose of avoiding negative

outcomes such as debt accumulation (Norvilitis, 2006; Loibla, 2011). Spending usually

involves the use of money to acquire what an individual desires or wishes to own.

Spending can be practiced on activities such as entertainment, personal things and

business operations (Goodwin, 2008; Lee, 2012).

 16

Book fielded a new strategic model. It was based on the structure-conduct-

performance paradigm of industrial-organization economics and the insights emerging

from over a half century of experience with U.S. antitrust regulation. Porter introduced a

more rigorous methodology and shifted the focus of strategic analysis largely from the

firm to the competitive structure of industry. Porter’s emphasis on competitive

positioning, discussed in more detail below, introduced into strategic analysis a new level

of analytical rigor. It also has afforded a clear target for its critics (Michael porter, 1980).

Kontes & Mankins attempts to integrate such financial criteria into management

compensation and incentives (Kontes & Mankins, 1994)

Strategy as a management discipline is not one thing. Nor is there one way to go

about formulating strategy. Rather, as the previous discussion suggests, strategy is multi-

dimensional. These various dimension often pull in divergent, if not opposite, directions.

Not only are these issues subject to different definitions, interpretations and responses,

they also are inextricably woven together “wicked problem” (Rittel, 1972)

A deliberate approach to formulating strategy encourages long-term purposeful

thinking and provides a clear rationale for the allocation of assets. However, its value is

necessarily encumbered by its limited foresight on the course of future events and its

ambiguous insight into appropriate courses of action. It also tends to overlook the power-

behavioral factors within firms- typical of turf battles and the not-invented-here (NIH)

syndrome- that often determine strategic decisions and are often crucial to strategic

success.

There real limits, therefore, to rationality and the quantification of data as well as

on the time and resources available for strategic planning. One response is to abandon the
 17

ideal of reaching an optimal decision from among all possible alternatives in favor of

identifying a satisfactory choice from among a much more limited array of options.

Another response, termed instrumentalism, view strategy as emerging opportunistically

and gradually over time in response to various types of strategic issues.

Recent trends of shifting retirement responsibility from institutions such as

employers or the government to individuals themselves demand the need for educated

consumers (Hogarth, 2002). Other trends requiring attention include teenagers having no

positive financial role models and immigrants who need to learn about the financial

market (Hogarth, 2003). Hogarth also explains why she feels financial education is

important when she states, "Informed consumers provide the checks and balances that

keep unscrupulous sellers out of the market (2003)."

Individuals of today's society show an enormous need for personal financial

education (Hira, 2002). Four in ten Americans admit they are living beyond their means

due to their misuse of credit (United States Department of the Treasury Office of

Financial Education, 1992). Unfortunately, this shows that consumers are not acting in a

financially responsible manner. The need for financial education is for individuals of all

socioeconomic status levels, ages, and races. Family financial failure has great

consequences at the individual, family and community levels (Hira, 2002). Furthermore,

evidence exists showing an association between family violence, marital distress,

stressful situations and financial problems (Hira, 2002). Financial education will not

solve these perennial problems; however, it does have the possibility of reducing the

severity of some of these issues.

 18

Many consumers themselves feel they are in need of financial education as well.

Evidence can be seen through responses in surveys, such as the National Association of

Securities Dealers (NASD) investor literacy survey (2003), indicating an expressed need

for personal finance education. Individuals' poor money management practices point

toward the possibility they are also in need of personal finance education. Ninety-seven

percent of respondents to the NASD investor literacy survey responded it was very

important to increase their investment knowledge (NASD, 2003). The same survey also

reported that almost half of the respondents said that a negative market experience could

have been avoided had they known more about investing at the time. A survey found that

only 27% of respondents felt very well informed about managing household finances

(Boston, 2003). When researchers are finding that less than half of their research

participants have retirement accounts, but 80% have a credit card, it is clear that

consumers are in need of a financial education (Hilgert & Hogarth, 2002).

Other research studies point toward the need for personal financial education as

well (Hira, 2002; Hogarth, 2003; Lown, n.d ). One such study evaluated a workplace

personal financial education seminar upon its completion (Kim, Bagwell & Garman,

1998). Survey results showed overall participant satisfaction with the seminar.

Furthermore, participants planned to take action to change their current financial

behaviors and they indicated they wanted future financial education. The results of this

study support the need and desire of those participants for financial education. Because

this survey was administered immediately following the seminar completion, it is not

known whether or not participants' actual financial behaviors changed.

 19

Perhaps the most important reason for educating consumers about money matters

is because financial balance leads to personal harmony (Lown, n.d). Qualitative

researcher Jean Lown from Utah State University interviewed fifteen women ranging

from age 24 to 63 to identify their healthy financial behaviors. The most common healthy

financial behaviors participants mentioned were paying credit card balances in full each

month and having money automatically deducted from their paychecks and put into

savings or some investment vehicle. Being free of debt provided them with a sense of

pleasure (Lown, n.d ). Lastly, Lown found that women who had their finances under

control could focus more on what was important to them in life such as their families.

Former Federal Reserve Chairman Alan Greenspan stated that learning the basics

of personal finance at a young age can help avoid poor financial decisions later in life

(Ezarik, 2001). Thirty-one states include personal finance in their curriculum, which had

dropped from 40 states in 2002 (Aspen Publishers Inc., 2003). Reasons for the stated

decrease in including personal finance standards may be attributed to the recent focus

given to reading and math in the No Child Left behind Act. This leaves little time for

elective subjects such as personal finance. Financial education in high schools should not

be delayed. This is why I suggest incorporating personal finance education into the

family and consumer sciences curriculum in high schools. I will discuss this at length

later in the literature review.

The literature related to mandating personal finance courses in high schools is

somewhat contradictory. A study found there is no correlation between increased

financial knowledge and a state mandate in personal financial education (Tennyson &

Nguyen, 2001). This would lead one to believe that implementing a financial curriculum
 20

mandate would be ineffective in increasing financial knowledge. However, correlation

between financial curriculum mandates and higher savings rates (Bemheim, Garrett &

Maki, 1997). A major difference between the two studies is that Tennyson and Nguyen

(2001) studied high school students and Bernheim, Garrett, and Maki (1997) studied

adults who were between the ages of 30 and 49. Another inconsistency in the studies is

that Tennyson and Nguyen (2001) studied knowledge levels and Bemheim, Garrett, and

Maki (1997) studied behaviors. Comparative results suggest the effects of a personal

finance curriculum in high school may have more long term effects.

Tennyson and Nguyen's study (2001) was conducted to assess the financial

literacy level of students in twelfth grade in the United States. The test consisted of 31

multiple choice questions about decisions related to personal financial management,

facts, and terminology (2001). The authors found that a general financial curriculum

mandate in a state does not translate into higher student scores on a financial knowledge

survey. They report that, "mandating personal finance education may be effective in

increasing student knowledge, but only if the mandate requires significant exposure to

personal finance concepts" (2001). Therefore, specific topics such as savings, spending,

investing, and debt should be included in the curriculum if financial knowledge levels are

to be increased. They also stated that the results may relate to how the mandate is

implemented in each state. The study also found that teacher attitude towards the subject

was directly related to student learning and that teacher attitudes were more negative in

those states with mandates.

A study conducted to evaluate if financial curriculum mandates in the United

States have any effect on the education and savings of individuals who had been exposed
 21

to mandates in high school (Bernheim, Garrett & Maki, 1997). Their analysis was based

on a cross-sectional household telephone survey administered in the fall of 1995. Over

2,000 participants between the ages of 30 and 49 completed the survey. Information

gathered included household assets and liabilities, earnings of participant and spouse,

employment status, ethnic group, and education as well as other subjects. Research

participants were also asked to identify the state in which they attended high school.

Results are based on comparisons across states and over time. States which did not adopt

a mandate were used as a benchmark. At the time of the study, 29 states required students

to receive consumer education. Fourteen states specifically required student instruction in

the area of personal finance. The first mandate was issued by Nevada in 1957 and most

other states had adopted mandates by the 1970s (Bernheim, Garrett & Maki, 1997). This

study's conclusions were that mandates significantly raised both the exposure to financial

education as well as asset accumulation once exposed students became adults. Net worth

for participants exposed to a mandate was higher by approximately one year's earnings

than for participants who had not been exposed to a mandate in high school. The effect of

individuals who were exposed to a mandate having a higher net worth appear to have

occurred gradually rather than immediately. The authors attribute the gradual rather than

immediate change to probable implementation lags in mandates (Bernheim, Garrett &

Maki, 1997).

Parental involvement Parents also feel there is a need for personal finance

education for their children. However, some parents feel uneasy about teaching their

children about money (Visa, 2004).

 22

Implementing personal finance courses in schools would ease the burden of some parents

by transferring responsibility to a more consistent and potentially more knowledgeable

source. The annual back-to-school survey from Visa (2004) found that 56% of parents

believe high school graduates are totally unprepared to manage their personal finances

responsibly. Parents and teachers should collaborate to ensure their children receive an

adequate financial education, preparing them for future financial responsibilities.

Teenagers are not gaining financial knowledge at home (Mosser, 2005). However, even

though teenagers may not be learning the knowledge and skills needed to succeed

financially in their home, the home is still a teenager's primary source for learning about

money (Jumpstart Coalition for Personal Financial Literacy, 2005). The 2004 Jumpstart

Coalition for Personal Financial Literacy survey reported parental involvement played a

major role in the financial education of 58.3% of the research participants. Almost 20%

said they learn money management skills at school and 17.6% from experience. It is

important for parents to teach their children about money matters. However, more

important than talking with young people about money is for parents to act as financial

role models. A common parental method used for teaching children about personal

finance is a weekly or monthly allowance. Surprisingly though, students who received a

regular allowance scored worse on the Jumpstart Survey than students who did not

receive an allowance (Mandell, 2001). Reinforcing values linking money to work can be

important for teenagers (Rippel & Smith, 2003).

Historically, there has been no obvious subject area or teacher that should be

teaching personal finance courses (Morton, 2005). This leads to some confusion about

personal finance courses in high schools because it does not have a universally
 23

recognized home in the curriculum. In some schools, personal finance is included in the

business department. In other schools, it may be part of an economics curriculum. The

researcher suggests incorporating personal finance courses into the family and consumer

sciences curriculum of high schools. Content standard 2.6 in the Consumer and Family

Resources comprehensive standard is, "Demonstrate management of financial resources

to meet the goals of individuals and families across the life span" (National Standards for

Family and Consumer Sciences Education, 2006). Personal finance should be taught by

family and consumer sciences educators from a comprehensive perspective including

topics such as resource management, investing for goals, and the psychological effects of

financial issues on the family and individual.

Research has shown that well-informed financially educated consumers are able

to make wiser decisions for their families (Hilgert & Hogarth, 2003). They have also

come to the conclusion that financially secure families are better able to contribute to a

healthy community, therefore, helping to contribute to economic development. Financial

education helps to strengthen the family and community, which is the core of the mission

of family and consumer sciences. Hogarth (2003) recommends family and consumer

sciences professionals develop contacts with social-service organizations, housing

organizations, faith-based organizations and community groups to help bridge the gap

between the need for programs and the key audiences. The gap also needs to be bridged

between personal finance programs and high school students.

Evidence shows that there is a great need for teaching teenagers about personal

finance topics. Family and consumer sciences have been an evolutionary field. The

evolving nature of the profession can be seen through the inclusion of a 40% male
 24

population in some FCS courses in what used to be seen as a traditionally female area

(Blassingame, 1999). The reality of the family is changing and with it, family and

consumer sciences changes.

Another reason for including personal finance education in family and consumer

sciences courses is because FCS educators deal with sensitive human issues on a daily

basis. The emphasis in personal financial education in economics and business is based

on numbers and facts. It is important to keep in mind that individuals struggling

financially pay a steep price that comes in the form of stress and possible humiliation,

thus impacting the family (United States Department of the Treasury, 2002). Family

financial management can be viewed through different lenses, many of which relate to

family and consumer sciences.

One human issue that could be discussed in a personal finance course is how

males and females differ financially. For example, women are more likely than men to be

in charge of their family's finances (Hira, 2006). Also, women believe investing is

stressful and time-consuming, while men describe investing as being exciting (Hira,

2006). Family and consumer sciences educators teaching personal finances courses could

take issues such as gender into consideration when teaching about financial issues.

Topics such as this would have the potential to lead to lively classroom discussions and

an enhanced learning environment.

Family and consumer sciences teacher education programs around the nation are

on a steady decline (American Vocational Association, 2000). This decline in programs

leads to an FCS teacher shortage. In 1984, there were 284 FCS teacher education

programs reported nationwide. By 1995, only 171 of the same programs existed,
 25

indicating a 40% decrease during that time period (American Vocational Association,

2000). A poll administered to State Administrators of Family and Consumer Sciences

programs by the American Association of Family and Consumer Sciences (AAFCS),

showed that 74% of respondents "strongly agree" there is a national crisis in the supply of

family and consumer sciences educators (American Vocational Association, 2000).

Family and consumer sciences professionals should take responsibility for

financial education in the schools. Morton (2005) stated, "Although everyone endorses it

[personal finance], few educators [general educators] take responsibility for making

personal finance education a priority, and efforts thus are diffused." Family and consumer

sciences educators graduating from some universities such as Iowa State University are

required to take personal finance courses and would not require additional training.

American and Bermudian school administrators and policymakers should take advantage

of FCS educators who may be willing and able to teach personal finance as part of their

curriculum.

Review of Related Studies

According to Department of Education, the additional two years in High School is

not necessarily about expenses. Most teens will usually have one or two sources of

income, either allowance from their parents or from their job (Felipe, 2007). The manner

in which students manage their money is based on several factors such as age, personality

traits, and knowledge (Norvilitis, 2006). It clearly states that students are very different

with each other, even though they are having the same amount of allowance, their

expenses still vary.

 26

Over longer periods, consumption will gradually regain the long-run relationship

with income (Pollock, 1999). Students should maintain their priorities in spending so that

it won’t be a problem if they are cut short on their budget (De Guzman, M., 2012).

Budget is a financial plan that lists expected expenses and income during a particular

period1 People saved diligently for major purchases keeping plenty of funds

for unforeseen emergencies (Ritzer, 199). It’s very important to make sure that you have

enough money to cover the cost of your tuition fees and living expenses before you begin

your course. Majority students perceive themselves as more in control of their finances

than minority students perceive themselves (Micomonaco, 2003). Therefore, budgeting is

the most important factor to consider in keeping allowance and expenses balanced with

each other.

The success and importance of budgeting relates to the identification of

organizational goals, allocation of responsibilities for achieving these goals, and

consequently its execution (Shah & Robinson, 2007; Drake & Fabozzi, 2010). It is one of

the most successful and useful management accounting techniques that can reap

handsome regards if properly understood and implemented (Allaham, 2012). Without

sufficient financial aid, students increasingly turn to loans and credit cards (Long, B.,

2009).

According to institutional isomorphism (Powell, 1983), budgeting diffused via

three mechanisms. Under mimetic diffusion, organizations adopt budgets because they

observe that other groups become more financially confident and successful with a

systematic budgeting process.

 27

As budgeting became more popular, there were coercive pressures to adopt budgets.

Stockholders who demand sound financial management may expect yearly budgets for

key activities. Budgeting is a logical extension of credit-debit accounting principles and

is taught in every business school. Budgets have also become a "rational myth" for

modern organizations. According to Rowan, the adoption of these myths is often

ceremonial (Rowan, 1977). Budgets necessary for legitimacy can be de-coupled from

daily operations. (Muleri, 2001) did a study on budgeting practices in Non-governmental

organization in Kenya. The aim of the study was to establish effectiveness of budgeting

practices among British NGO‟s in Kenya. The research looked at the concept from a

different point of view and found that most organization used modern practices as zero

based and philosophies to reduce financial management. The researcher observed that

there is a limitation on budgeting process which leads to cost cutting to achieve cost

effectiveness there is lack of solid based to enforce budgeting controls as a motivator and

concluded that although profit was the main indicator of performance in public sector,

budget management should be measured against the background of sound financial

policies. The researcher concluded that budgeting is well accepted in evaluation and

generally used to communicate plans and operations. (Melek, 2007) did a study on the

impact of budget participation on managerial performance via organizational

commitment. He conducted a study on the top 500 firms in Turkey the results of this

study provided a number of contributions to management accounting literature by

improving understanding of budget participation and organizational commitment

affecting managerial performance. First, according to regression analysis results, this

study suggested that the effects of budget participation and organizational commitment
 28

by itself on managerial performance are positive and significant second this study found

out that the managerial performance scores were found to increase when the interaction

score between budget participation and organizational commitment increase. That is to

say high interaction between budget participation and organizational commitment

provides appropriate condition, for high managerial performance. However, the results

indicated that while improving high organizational commitment feeling of subordinates

in firms can lead to increase in their performance, low organizational commitment feeling

of subordinates can lead to decreasing in their performance. Similarly the study supported

the hypothesis that interaction score between budget participation and organizational

commitment varies according to low and high managerial performance. As to this, while

high interaction between budget participation and organizational commitment is

associated with high managerial performance, low interaction score between budget

participation and organizational commitment is associated with low managerial

performance. A survey conducted by (Ambetsa, 2004) of budgeting control practices by

commercial airlines operating at Wilson Airport, Nairobi indicated that the challenges

faced were budget evaluation deficiencies, lack of full participation of all individuals in

the preparation of the budget and lack of top management support. He further concludes

that airlines operate and use budgets to plan implement and evaluate their business

performance. All enterprises make plans using budgets some in a systematic and formal

way, while others in an informal manner but still have some form of budgetary control

and budgetary control practices.

Therefore the issue is not whether to prepare a budget but rather how to do it

effectively. (Wamae, 2008) researched on challenges of budgeting at National social

 29

security fund (NSSF). The aim of the study was to establish the challenges of budgeting

process and the challenges faced when drawing up a budget to be used by an organization

and how organization can effectively face the budgeting challenges. The population

constituted nine (9) board of directors and sixteen (16) senior managers at NSSF who

were concerned with budgeting issues at the organization. The researcher collected data

by use of questionnaire, observation, and interviews as main instrument of data

collection. From the study the researcher found that the organization faced challenges

when drawing up budget and the biggest included on commitment, various head of

department did not take budget seriously leading to giving ambitious budgets which

would end up not achieving target, leading to complaints from the board. The researcher

concluded that budgeting was very effective at NSSF as they served their purpose

assisting in control, used as a means by which management communicates by other level

of department. The researcher added that the process of budgeting at NSSF faced some

challenges which were inability to achieve the required value of business inadequate

authority to spend despite allocation, cost inflation, poor participation and poor co-

ordination of the exercise. The researcher recommends that all units in the organization

should be involved in the budget preparation and enough time is allocated to prepare.

(Otley, 1978) did a study on budget use as a measure of managerial performance. He did

a research on a single large organization which had a considerable number of production

facilities, producing similar products geographically dispersed around the United

Kingdom. The individual production units were largely independent on each other.

Therefore, the unit of analysis was the individual unit manager who was responsible to

the group manager for the production of their units. His findings were that there is a
 30

positive relationship between budget use in evaluating mangers and their level of

performance unlike (Hop-wood, 1972) he noted little evidence to indicate that any

particular style of budget use affected actual performance although this is a most elusive

relationship to capture in a field study, But it was found that there were considerable,

interaction and long-term unit profitability. A situation had evolved where profitable

units produced accurate budgets which were subsequently used as a basis for evaluation;

whereas unprofitable units produced optimistic budgets which gave the impression &

profitability, but which were not then used in evaluating unit and managerial

performance. (Hop-wood, 1972) had done a previous study to determine what effects

different budget based styles of evaluation had on manager’s performance. He suggested

that one important dimension of budget use is the relative importance attached to the

budgeted that one important dimension of budget use is the relative importance attached

to the budget in evaluating managerial performance. A rigid style of evaluation based

primarily upon whether or not a manager has met his budget, was found to result in the

belief that the evaluation was unjust, in wide-spread tension and worry on the job and in

feelings of distract and dissatisfaction with the superior using the 25 style managers

evaluated in this rigid manner were also found to manipulate accounting data to improve

their reported performance and to make decisions detrimental to the long-term wellbeing

of the organization. However when a more flexible style of evaluation was adopted with

budget information being used in conjunction with other sources of information, concern

with long-term economic performance was maintained but fewer dysfunctional side

effects were observed. However, Hopwood’s emphasis was primarily on the effect that

budget use has on manager’s beliefs and feelings and not with the overall effectiveness of
 31

operations. Though he found no significant difference in the extent to which managers

evaluated under different styles met their budgets he was able to conclude that this was

likely that the tensions and manipulations noted under the rigid style of evaluation caused

deterioration in long-term performance. (Amalokwu and Obiajulum , 2008) in a thesis

present a paper titled Budgetary and management control practices (budget being the tool

for management control in Guinness Nigeria plc “The study was described based on a

qualitative approach in data collection (primary data) research purpose, data analysis as

well as critiques to the method use. A sample of 50 respondents was used. The research

conclusion was that budgets could facilitate the creating and sustaining of competitive

advantages by enabling the following management functions. Forecasting and planning,

communication and coordination, motivational device evaluation and control and

decision-making. (Brownell, 1982) did a study to establish relationships between budget

participation and performance. New identities are some variables which are effective on

the relationship between participation and performance namely moderator variables.

There are two important studies examining national culture variable that was categorized

in the first category by Brownell. Norway culture based study of (Lau and Buckland,

2000). (Tsui, 2001) study based on China and Caucasian cultures points that the

interaction effects of management accounting system and budget participation on

managerial performance were different, because of the cultural background of managers

more specifically, he put forward the observation that the relationship between

management accounting system information and managerial performance of Chinese

participation but positive for Caucasian managers past studies consider organizational

culture as an element of organizational structure as in Brownell technology.

 32

There is a motion that is working on teaching basic personal finances to high

school students before they graduate. A budget is clearly the key to succeeding

financially. Students think that a way to pay for college is student loans, but there are

other options like scholarships, financial aid or work options. Some can take investing

classes where students can learn the process of investing and budgeting.. Most people

recommend parents to have a long-term planning for their teen. (Caldwell, 2017) Parents

can teach their children money management where they can set up a personal savings

account for their teen. These guardians can explain to teens how managing money is very

important as if there is an unforeseen event. (Thompson, 2007)

 33

Chapter 3

METHODOLOGY

This chapter included research design, research participants, role of the researcher, data

sources, data collection procedure, data analysis, trustworthiness of the study and ethical

consideration that the researcher used during the entire conduction of the study.

Research Design

This study used a phenomenological approach in conducting this research.

Phenomenology is an approach to qualitative research that focuses on the commonality of

a lived experience within a particular group. The fundamental goal of the approach is to

arrive at a description of the nature of the particular phenomenon (Creswell, 2013). Other

forms of data such as documents, observations and art may also be used. The data is then

read and reread and culled for like phrases and themes that are then grouped to form

clusters of meaning (Creswell, 2013).

This phenomenological study is entitled TO DO LIST: A Phenomenological

Study on Budgeting among Senior High School Students was conducted to know the

ways of budgeting of the Senior High School students in Davao City National High

School.

In this study, we will invite twenty (20) students from senior high school who

have difficulties on budgeting their allowances. These students will serve as the

participants of this research study. They were provided with an informed consent before

we conducted the interview or the gathering of data through Focus Group Discussion
 34

where the participants were asked to answer flexible questions. Transcribing the recorded

interview followed after we have gathered the data.

Research Participants

We invite a total of twenty (20) participants for this study. All of them are

included in our Focus Group Discussion. The number of our participants is sufficient

since we will be dividing the twenty (20) participants into two (2) groups. It is also

recommended that a few extra participants be recruited for each focus group, in case

there are no-shows (Gibbs, 1997 and Stewart et. al., 2007).

All the participants of this study were suitably selected and were only willing to

openly and honestly share information or “their story” (Creswell, 2007). These

participants were enrolled in the Davao City National High School of the Senior High

School Program of the Department of Education.

Data Sources

The sources of the data are coming from the answers of the participants. The

researchers will only depend on the answer of the participants on the questions given by

the researchers.

Data Collection Procedures

In gathering the data, the researcher was the primary instrument. However, in

gathering the data the research undergoes the following procedures that would be helpful

in the study.

In the data collection, the main procedure that is closely related which associated

by a qualitative research is the In-Depth Interview (Englander, 2012). The purpose of the
 35

In-Depth Interview is to encourage talking in depth with the participants about the topic

under investigation without the researcher’s use of predetermined, focused and short-

answer questions. Given (2008) was used to elicit information in order to achieve a

holistic understanding of the interviewee’s point of view or situation. This involves

asking informants open-ended questions, and probing wherever necessary to obtain data

deemed useful by the researcher (Berry, 1999).

Data Analysis

Data analysis is the process of systematically applying and/or logical techniques

to describe and illustrate, condense and recap, and evaluate data (Shamoo and Resnik,

2003). Robson (2011) also offers an equally important view on analysis and

interpretation of data, when he suggests that the process and products of analysis provide

the bases for the interpretation and analysis. This study was followed Creswell (2005),

Stake (1995) and Yin’s (2003) models of data analysis, by which we analyze the data by

both direct interpretation and aggregation of instances in the form of codes. As Stake

(1995) says, “some issues call for categorical analysis, while others may only occur one

and require direct interpretation.”

Next, we initially conducted a preliminary explanatory analysis (Creswell, 2005)

with all the documents we gathered. During this period in the analysis, we listened

carefully to the audio recorded in our phones; moreover the written notes were read

through and analyzed them carefully. After gaining familiarity with the documents and

searching for general ideas, coding was completed with an eye for both descriptive and

thematic data (Creswell, 1995). Meaning, we transcribed the data that we have gathered
 36

and set a code that is appropriate to the data and grouped the significant codes into

themes and categorized them accordingly.

We have interpreted the definitions to reflect the individuals ' lived experiences.

After that, we conceptualized a summary of the meanings as well as the nature of the

difficulties of the Senior High School students on budgeting their allowances.

Trustworthiness of the Study

The researchers assure that the result of this study will not be biased on the

participants. The results are based on the participants’ responds and not on the personal

motive of the researchers. Also, it is dependable since it provides the truth and not the

biased results.

Ethical Consideration

In this study, we made sure to follow the ethical considerations throughout the

whole process. We assured that our participants were well-informed about the purpose of

the research they were being asked to participate. We gathered our participants and gave

them an informed consent, to let them know about their voluntary participation in the

study, guarantee of full confidentiality of responses and convenient schedule that will not

interrupt or disturb their classes.

We’ll also ensure that their identity would not be revealed nor exposed in our

study by asking them their preferred pseudonyms or code names.

Moreover, we let our Practical Research teacher validate the guide questions in

the interview to confirm that only relevant, significant, and culture-sensitive questions

that will be asked to the participants. It is to make sure that the participants will not be
 37

endamaged in any ways. In addition, before we start the actual interview, we must remind

the participants that they are entitled to refuse to answer uncomfortable questions or to

withdraw from the actual queries.

We also inform the participants that the result of the study benefit them for they

are also experiencing the difficulties of budgeting the allowance. Better understanding

how to budget the allowance efficiently can affect them might inspire and help them

improve in any way. We also provided our participants with a snack and made sure they

were familiar with the location we were going to meet. In addition, we informed our

participants that for research purposes only the recorded audio and pictures were used.

We also showed them the transcribed data to check that their answers were correct.

Ultimately, with the use of the American Psychological Association (APA) model, we

have correctly cited and referenced scholars from whom insights and points of view have

been integrated.