Chapter 2

Review Of
Related Literature
 This chapter provides
several research-related
publications that can help
readers develop their ideas
for the study.

Related Literature
Foreign Literature
Fazleenah Binti Azmi, et al., (2018) states that “spending habits in
the most desirable way is one of the factors that can lead to financial
satisfaction.” Financial satisfaction comes when you are already
contented on what had happen with the money you had spent or the
money you had saved for. A person who feels that he/she has fulfilled
his/her duty in managing their money is often dependent on one’s
definition of success. Some people feels fulfilled when they had bought
what they want and when they feel that they have the reason to pursue
what he/she needs in the near future.

According to Villanueva (2017) states that students are prone to

so many expenses because of school works and other stuffs. Having
an easy access in the stores outside the school like fast foods, stalls,
boutiques and other shops that students mostly visit. In this matter,
students are has the guts to spend their money on many stuffs
because the stalls outside the school are just walking distance for
them. They can spend any amount of money they want in just a
matter of time.

 
According to Joseph Oloba (2018),students spending habits is a big effect
on how they will manage their money in the future.Students should have
clever choices in handling their money and achieve their financial
obligations make their lives safer and stress –
free. Managing the money of the students even when they are in
school can make them balance their inflow and the outflow of their
cash. Students should consider the time of planning for their purchases
and their expenses in the future. They should be responsible enough to
manage their personal financial funds.

Klariz Angcanan (2018) states that students should consider the

budgeting process to provide them an accurate performance to achieve
their goals. Students must know how much money they need to spend
and they should also know how much money they expect to earn.
Budgeting saves you from stress because you don’t need to adjust your
money; you must only focused on your goals and avoid spending
unnecessary things.

“Juggling your money at uni can take some time getting used to
it (but it’s a vital life lesson). To help, make sure you’ve factored these
into your budget already.” (Rebecca Hughes, 2018) Students should
know what they need to buy or what they want to buy in order for them
to manage their personal funds. Hughes gave 10 things to remember
to budget for a university. (1) Common course cost (2) Transportation
(3) Food (4) Entertainment (5) Utilities (6) Internet (7) Insurance (8)
Toiletries (9) Clothes (10) Subject – specific cost.
 
Local
Literature 
Keith Peters (2019) , said that Who doesn’t want to save money? As a
student, you might find it difficult to start saving up money. Since
your daily allowance may only be enough to cover costs on school
needs, food, and transportation, saving up might seem like a
daunting task.
But as the famous business magnate Warren Buffett put it, “Don’t
save what is left after spending, but spend what is left after saving.”
If you’re coming from a well-off family, there may be a chance that
you haven’t had the chance to truly understand the value of money–
since it’s always there. But if you’re coming from the complete
opposite, the scarcity of money increases its value and the
importance of properly managing it.
Since there are a lot of expenses involved in college, having a clear
understanding of how to properly budget your allowance is
undeniably essential– especially if you’re supporting your own
studies. Knowing when and where to spend your limited budget helps
you develop financial independence, while also eliminating the
anxiety of running out of money, helping you focus on studying and
getting a degree.
Source: ( https://medium.com/invested-philippines/top-tips-on-
how-to-budget-your-allowance-b1fcbb1a691 )

Nicole Alba (2020) ,Wondering how to start managing your money

as a student or beginner in personal finance? It can get pretty
overwhelming when you don't know where to start. This video is
part of a series of comprehensive guides that aim to help you
understand the basics of personal finance and wealth building in
2021. Managing your finances is an important skill to nail in
adulting, so strive to develop it as early as possible! I'll guide you
through the steps to take, which will hopefully help you in figuring
out how to approach your own finances. This is a simple step by
step personal finance guide for students and beginners.I've divided
personal finance into a four part framework of Budget Money,
Save Money, Make Money, and Grow Money. Before diving into
anything money-action related, we'll first start out with the
fundamental building blocks in this video: mindset and financial
goals.
(Mindset and Financial Goals)
This level aims to build a solid foundation that guides and
supports your decision-making processes with money as well as in
life.
I strongly believe that this is key to successfully building your
own wealth. Before making any financial decision, take the time to
evaluate the reason behind why you're doing this in the first place.
Do you want to become more responsible with your finances? Are
you saving up for something big? Are you pursuing financial
independence? Let these reasons help you stay committed to
developing responsible money habits. Another important thing to
remember is to prioritize investing in yourself. You are your
biggest investment. Making the time to invest in your learning,
your education, and your skills sets you up for future success.
This helps you create better and better value for the people around
you. You'll never lose this investment. It's powerful and it pays you
dividends moving forward.
(Budget Money and Save Money) 
We're done with level 0, so now we'll proceed to level 1. Personal finance
at its core is ridiculously simple. If you're only taking away just one thing
from this video, let it be: "Don't spend more than what you make." It's
that simple. Once you understand that, strive to cut costs where you can
and save as much as you can. Do your future self a favor and do your
best to fight the impulse to buy things you don't need!

Afterwards, work to build an emergency fund to prepare for large

unexpected expenses. Wondering how much you should keep in your
emergency fund? As a rule of thumb, you should aim to build around 3-6
months worth of expenses. Given the current circumstances we have,
however, it wouldn't hurt to stretch that to number to 12 months. Also,
it's a large chunk of money, so I suggest to keep it in a high interest
savings account to earn additional interest.

Source:
(http://budgetarianescapades.com/2018/06/03/12-
money-saving-tips-for-filipino-students/)
Barreto, R. B. ., Nalayog, J. P. J. ., Tresreyes, A. M. ., Rombao, E. P. .,
Marcelo, T. K. ., & Tamon, C.-J. S. . (2019)Budgeting has been part of
the daily lives of people. It exists anytime and anywhere, others have
enough budget while others do not. Expenses of people also differ based
on their status in life. Students, having their weekly allowance,
experience some struggles in proper budgeting. The purpose of this study
is to assess the effects of improper budgeting of allowance in the
academic performance of Grade 12Accountancy, Business, and
Management students. Using a qualitative method and descriptive
research design, this study focused on how improper budgeting affects
the academic performance of grade 12 ABM students. There were three
academic variables identified as affected by improper budgeting of
allowance, such as the students’ attendance, performance, and school-
related expenses. Data were gathered by distributing questionnaires to
the target respondents. The results of the study revealed that improper
budgeting affects the Academic Performance of Grade 12 ABM students
in terms of (1) Attendance —improper budgeting resulted to lack of
transportation and food allowance, affecting the capacity of the students
to report regularly in the class and lessening the number of outputs
submitted during class discussions. (2) Performance —improper
budgeting of allowance affects the capability of the students to meet all
the requirements in the class, resulting in late submission and low-
quality output.
(3) School-related expenses —improper budgeting of allowance affects the
capacity of the students to meet other school-related expenses, affecting
their capability to participate in school-related activities and events. The
results of the study showed that students must be knowledgeable and
disciplined in budgeting their allowances. Parents should monitor and
guide their students on how they should budget their allowance and
monitor other expenses of the students that affect their allowance for
food and transportation. Teachers can also discuss some tips on proper
budgeting of allowance depending on the amount of budget. Finally, this
study recommends further research about the range of senior high
school allowance to give effective guidelines on how they will budget their
allowance properly.
Source:
((https://ojs.aaresearchindex.com/index.php/
aasgbcpjmra/article/view/1055)

In the Philippines, according to (Abawag, C.F.N et al, 2019) they

concluded that most of the monthly allowance of their
respondents are spent in food. Particularly, there is a tight
spending when it comes to personal needs and academic
purposes. According to their study sex, course, year level and
ethnicity are determinants of the difference regarding on the
spending behavior. Male students are more loose in spending
based on the research and the study is conducted in the
University of Saint Louis Tuguegarao City, Cagayan.

Source:
(https://www.academia.edu/38979306/
Spending_Behavior_of_Management_Students)

Review Of Related Studies

Foreign Studies:
(Budget Allocation Model for Public Senior High School Academic
Programs (Rene D. Estember and Chrystalline Gale Y. Calvez 2019)

The implementation of Senior High School program in the Philippine

educational system requires the national government to provide funding
to public high schools to address students’ different needs because of
different demands required by the different academic tracks offered such
as General Academic Strand (GAS), Humanities and Social Sciences
(HUMSS), Science, Technology, Engineering and Mathematics (STEM),
and Accountancy and Business Management (ABM). However, there are
no standardized budget allocation guidelines being followed by the
implementing public high schools. The lack of a defined and
standardized budget allocation process poses a threat on
mismanagement of the available budget. Through the defined factors and
quantifying the prioritization of the different learning outcomes of the
academic programs into priority weights, this paper intends to develop a
budget allocation model using Goal Programming. The budget allocation
model was developed using the data of different public schools in Cavite.
The results showed an improvement on the achievement of priority
weights by an average of 24.76%. The budget allocation model was also
translated into a system to allow the public schools to generate the
satisficing results on any given year and interpret results with the aid of
analytics on the formulated budget.(Rene D. Estember and Chrystalline
Gale Y. Calvez 2019).

Source:
(https://www.ieomsociety.org/ieom2019/papers/223.pdf )
STUDENT BUDGETING AND SPENDING BEHAVIOUR (Saumya Singh,
Shubham Gupta, Siddhant Jain, Siddhi Kabra, Snehil Gupta , 2020)

In recent times, one of the most enduring challenges that still affect
college students is the huge difficulty in controlling the way they spend,
and worldwide, very minute research has been done about this. The
current level of the problem on the spending front is again, not
absolutely figured and sorted out. Thus, this study has focused on
determining the spending behavior of 138 university students in Delhi &
Mumbai using descriptive research design. A structured questionnaire
was used for data collection. Sampling Method used was non-probability
sampling method, under which convenience sampling method was used.
respondents were found to be spending tightly when it came to shopping
and travelling and academic purposes and loosely when it came to
entertainment and lifestyle. It can be concluded that gender, being
outstation or being based in the city were the key determinants that
made the difference on spending behavior.(Saumya Singh, Shubham
Gupta, Siddhant Jain, Siddhi Kabra, Snehil Gupta , 2020).

Source:
(https://ijcrt.org/papers/IJCRT2007222.pdf)
Relationship between Financial Knowledge and Spending Habits among
Faculty of Management’s Staff (Nor Fazleena Binti Azmi and Dr. Suresh
A/L Ramakrishnan,2018)

Spending habits in the most desirable way is one of the factors that can
lead to financial satisfaction. Therefore, financial satisfaction depends on
the ability of people to manage and take control of their personal finance
in order to improve their financial decision making and financial status.
This study was conducted to identify the level of spending habits among
Management Faculty staff at Universiti Teknologi Malaysia. This study
also conducted to investigate the level of personal financial knowledge
adapted by staff and lastly to determine the relationship between
financial knowledge and spending habits among Management Faculty
staff. The total of 97 questionnaires were distributed and completed by
the staff. Data was analyzed by using descriptive, Pearson Correlation
and Multiple Regression that include in Statistical Package for Social
Science (SPSS). The results firstly revealed that the higher level of
financial knowledge is the factors that influence the most desirable
financial behavior in spending habits among staff. Secondly, the staff
perceived that the financial knowledge can be enhanced through
financial education in order to improve their financial planning.
Finally, the result indicates that financial knowledge have positive
relationship with spending habits(Nor Fazleena Binti Azmi and Dr.
Suresh A/L Ramakrishnan,2018).

Source:
(https://www.researchgate.net/publication/
327889348_Relationship_between_Financial_Knowledge_and_
Spending_Habits_among_Faculty_of_Management's_Staff#:~:t
ext=Spending%20habits%20in%20the%20most,decision
%20making%20and%20financial%20status)
Local Studies:
(Budget Habits of College Students: An Empirical Analysis of
Expectations and Realizations (James C. Brau,2021)
Using a sample of more than 500 college students from a large,
private university, this study seeks to analyze spending
expectations of students, their realized habits, and the dispersion
between the two. We first ask the students to project what they
think their monthly budget will be throughout the semester. We
then ask them to track their expenses for three months. The
students do the same for income they receive. The students then
report their actual spending habits and answer various questions
related to their demography, family, and life experience. We use
simple univariate correlation methods to explain factors that may
influence their expected income and spending as well as their
actual income and spending. Additionally, we consider the
association specifically between these factors and credit spending,
both projected and realized. Using the same estimation method,
we determine the degree to which a student adheres to a personal
budget, which is known as expenditure dispersion.
We then estimate a multivariate model on expenditure dispersion.
Our findings identify factors that predispose college students to
favorable and unfavorable budget outcomes.(James C. Brau,2021)

Source:
(https://www.researchgate.net/publication/
352800078_Budget_Habits_of_College_Students_An_E
mpirical_Analysis_of_Expectations_and_Realizations)
BUDGETING FOR EQUITABLE STUDENT COMPLETIONS: A MIXED
METHODS STUDY OF WASHINGTON STATE COMMUNITY &
TECHNICAL COLLEGES(Lynnette Bennett , 2021)

Public community colleges have struggled with reduced funding

allocations, unstable enrollments, low completion rates, and growing
racial equity gaps while facing increased accountability for outcomes. As
a result, public community colleges are trying to determine how to
efficiently use limited funds to effectively meet equitable student
outcomes. To that end, this mixed methods study identified budget
development practices and priorities of community and technical colleges
in Washington State that had high student achievement outcomes,
particularly for underrepresented students of color. Using both
descriptive statistics and hierarchal linear modeling, this study first
determined there was a statistically significant difference in student
completion rates in Washington State community and technical colleges
when comparing white students and underrepresented students of color.
Subsequent interviews with five colleges identified how high-performing
community colleges in Washington State allocated funds within their
institutional budgets. Several themes emerged from interviews
demonstrating that there are opportunities for colleges to improve their
student completion outcomes including:
consistent institutional practices, structured budget planning process,
intentional focus on completion, and early adopters of equity work.
Based on the findings of this study, and their relation to current
literature, several practice recommendations to improve budgetary
practices at public community colleges are proposed.(James C.
Brau,2021)

Source:
(https://repository.library.northeastern.edu/files/
neu:bz613c47q/fulltext.pdf)
 Improper Budgeting of Allowance and its Effects in the
Academic Performance of Grade 12 ABM Students in
Bestlink College of the Philippines School Year 2018-
2019(Barreto, R. B. ., Nalayog, J. P. J. ., Tresreyes, A. M. .,
Rombao, E. P. ., Marcelo, T. K. ., & Tamon, C.-J. S. . 2019).
Budgeting has been part of the daily lives of people. It exists anytime and
anywhere, others have enough budget while others do not. Expenses of
people also differ based on their status in life. Students, having their
weekly allowance, experience some struggles in proper budgeting. The
purpose of this study is to assess the effects of improper budgeting of
allowance in the academic performance of Grade 12Accountancy,
Business, and Management students. Using a qualitative method and
descriptive research design, this study focused on how improper
budgeting affects the academic performance of grade 12 ABM students.
There were three academic variables identified as affected by improper
budgeting of allowance, such as the students’ attendance, performance,
and school-related expenses. Data were gathered by distributing
questionnaires to the target respondents. The results of the study
revealed that improper budgeting affects the Academic Performance of
Grade 12 ABM students in terms of (1) Attendance —improper budgeting
resulted to lack of transportation and food allowance,
affecting the capacity of the students to report regularly in the class and
lessening the number of outputs submitted during class discussions. (2)
Performance —improper budgeting of allowance affects the capability of
the students to meet all the requirements in the class, resulting in late
submission and low-quality output. (3) School-related expenses —
improper budgeting of allowance affects the capacity of the students to
meet other school-related expenses, affecting their capability to
participate in school-related activities and events. The results of the
study showed that students must be knowledgeable and disciplined in
budgeting their allowances. Parents should monitor and guide their
students on how they should budget their allowance and monitor other
expenses of the students that affect their allowance for food and
transportation. Teachers can also discuss some tips on proper budgeting
of allowance depending on the amount of budget. Finally, this study
recommends further research about the range of senior high school
allowance to give effective guidelines on how they will budget their
allowance properly.(Barreto, R. B. ., Nalayog, J. P. J. ., Tresreyes, A. M. .,
Rombao, E. P. ., Marcelo, T. K. ., & Tamon, C.-J. S. . 2019).

Source:
(https://ojs.aaresearchindex.com/index.php/aasgbcpjmra/article/vi
ew/1055)
Budget Plan to Manage Income and Expenses in College
Students: Some Features that Explain It
(Arturo García Santillán2019).
The purpose of this study is to describe the actions taken by
college students to face their future retirement. For this, the test
designed by the National Commission for the Protection and
Defense of Financial Services Users (CONDUSEF) in Mexico was
used, which has items related to financial knowledge, specifically
topics about savings, emergency funds and life insurance, among
others. The instrument was applied to 60 UPAV college students of
different levels, during the school cycle of February-August 2018,
in the city of Xalapa, Veracruz; it should be noted that the range
of age was older than 21 but younger than 23 years old. The
descriptive analysis showed results that lead us to believe that
students have emergency funds (53%) but these are used to face
unexpected situations (59%); also, students do not have life
insurance, which could be concerning in their personal and family
life if/when they have to face a present or future illness. Regarding
car insurance, most of the respondents stated that they do not
own one, besides considering it an unnecessary expense.
One of the study limitations was the surveyed population; hence
the need to widen this research to encompass more students from
such geographical area in order to obtain a wider outlook of said
behavior(Arturo García Santillán2019).

Source:
(https://www.researchgate.net/publication/334467277_Budg
et_Plan_to_Manage_Income_and_Expenses_in_College_Stud
ents_Some_Features_that_Explain_It)
 College Students in Cabiao, Nueva Ecija's Spending
Behavior (Romel Tuliao,2019).

Spending behavior is a learned pattern of conduct that is repeated on a

regular basis. A good spending habit is a crucial component of financial
success. The elements impacting respondents' spending behavior in
terms of family background, lifestyle, and attitude are described in this
study. This study uncovered what students consider to be their top
priorities when it comes to spending. The goal of this study was to
identify the least and most desired elements that influence respondents'
spending habits. The descriptive research design of quantitative research
is used in this study. The researcher utilized the Simple Random
Sampling Method in this study since all respondents had an equal
probability of being chosen. Students agreed that their spending habits
were influenced by their familial background. There is a balance between
the spending habits of men and women. (Romel Tuliao,2019).

Source:(https://www.researchgate.net/publication/
360216445_College_Students_in_Cabiao_Nueva_Ecija's_Spe
nding_Behavior)
CASH ASSISTANCE BUDGETING BEHAVIOR OF STUDENTS OF
CAGAYAN STATE UNIVERSITY ANDREWS CAMPUS (CATHERINE
JOY V. AQUINO SHEENA MAE C. ARTATES RINA FAE A.
ASLARONA ASHLEY R. RAPANUT JAN MAE A. ROMERO , 2022)

Student budgeting refers to the management of financial expenses within

the budget given to them. The major challenge that students face is the
difficulty to budget their expenses and save a proportional amount every
time for contingent events since most of students get their monthly
allowance from their parents and are responsible for their own
expenditures. This study aimed to assess on the students’ budgeting
behavior towards their cash assistance from Cagayan State University
(CSU).This study used the descriptive method of research. The
participants of the study are the students of Cagayan State University -
Andrews Campus who are receiving financial assistance with a total of at
least 100 respondents using a survey questionnaire through Google docs,
a link is provided to gather the data needed in the study. The data were
tabulated, interpreted and analyzed using the Statistical Package for the
Social Sciences (SPSS) using descriptive statistics such as frequency,
percentages, mean using a Likert Scale. Through this study, it was
concluded that the cash assistance of the students can control the way
they spend. They know what to prioritized which they spent most on like
basic needs followed by academic purposes. Considering in the midst of
pandemic, it is evident that they are knowledgeable enough to budget
their cash assistance they received .Considering the findings and
conclusions of the study, the following recommendations are offered that
the students need to have their budgeting plan to organize and manage
their financial matters and the students should set their priorities and
learn to differentiate needs from wants to maximize their budget with the
expenses.(CATHERINE JOY V. AQUINO SHEENA MAE C. ARTATES RINA
FAE A. ASLARONA ASHLEY R. RAPANUT JAN MAE A. ROMERO , 2022).
Source:
(https://garph.co.uk/IJARMSS/Feb2022/G-2959.pdf)

SPENDING BEHAVIOR OF MANAGEMENT STUDENTS (Christine

Faith Nichole B. Abawag, John Rex S. Ancheta, Ivy Joy B.
Domingo, Genebib A. Rabina, Aaron Denver N. Saclote,Gale Myka
M. Taguinod ,2019)

One of the challenges that college students encounter is the difficulty to

control the way they spend and in the Philippines, very minimal research
has been conducted about this.The level of the perceived problem on the
spending is still not absolutely figured out.Therefore, this study focused
in determining the spending behavior of management students of the
University of Saint Louis Tuguegarao using Quantitative survey research
design. Stratified random sampling was used to determine the 234
respondents who are taking Management Accounting, Financial
Management and Marketing Management course. A researcher made
questionnaire was used for data collection. Respondents were found to
spend tightly in terms of personal needs and academic purposes and
loose in terms of food and transportation. Meanwhile, Independent
samples test and Analysis of Variance were used to test the difference on
spending behavior when grouped according to profile variables.
It can be concluded that sex, course, year level and ethnicity are
determinants of the difference on spending behavior of management
students while
socioeconomic status was found insignificant when comparing the said
behavior.

Source:
(https://www.academia.edu/38979306/
Spending_Behavior_of_Management_Students)
Theoretical Framework

Prominent research argues that consumers often use personal

budgets to manage self-control problems. This paper analyzes the
link between budgeting and self-control problems in consumption-
saving decisions. It shows that the use of good-specific budgets
depends on the combination of a demand for commitment and the
demand for flexibility resulting from uncertainty about
intratemporal trade-offs between goods. It explains the subtle
mechanism which renders budgets useful commitments, their
interaction with minimum-savings rules (another widely-studied
form of commitment), and how budgeting depends on the intensity
of self-control problems. This theory matches several empirical
findings on personal budgeting. 
- Simone Galperti (2019)

Source:
(https://econtheory.org/ojs/index.php/te/article/view/2881)

Conceptual Framework

Kinds of Transportations
This conceptual
proper budgeting of monthly
framework allowance (Commuting
sex Students) In Gr.11 Abm
demonstrates the Sections J. Kagan, Piaget

Transportation fees interactions in college of arts sceinces

of asia and the pacific
Rodriguez Campus
Academic year 2022-2023

Residency/Present location between the

independent and
dependent variables. The study's results are influenced by the
Allowance
independent factors. It includes Kinds of
transportation,sex,transportation fees,residency/present location ,
Independent Variables Dependent Variable
needs and wants, allowance. The study's results are represented
by the dependent variable the proper budgeting of monthly
allowance (Commuting Students) In Gr.11 Abm Sections J. Kagan,
Piaget in college of arts sceinces of asia and the pacific Rodriguez
Campus Academic year 2022-2023.