CHAPTER I

INTRODUCTION

THE PROBLEM AND ITS BACKGROUND

Everyone's ability to manage their own finances depended on their level of

financial literacy, therefore teaching senior high school students about money
management would be a good way to increase financial literacy and personal wealth.
Financial literacy was correlated with gender, higher academic achievement, parental
education level, and relative income level, according to Ginardi, A. et al. (2017).
(GAP)Were intended to assist students in improving their reading, evaluating, and
management of their own accounts so they might prevent daily financial issues or
concerns.

Investigating professional financial concerns is valuable, especially in the area of

money management, which has been demonstrated to dramatically rise as a result of
society knowledge of its advantages. Because fostering financial literacy among
students is necessary to avoid ongoing issues brought on by a lack of understanding of
personal financial management. This highlights how crucial it is for students to be
conscious of their financial situation given their upbringing, outlook, and family.
Moreover (Sagi, J., Vasa, L., & Lentner, C.S. 2020). (Sagi, J., Vasa, L., & Lentner, C.S.
2020). Financial literacy has been found to be an effective strategy for lowering
households' vulnerability to financial problems, bridging crisis times with sizeable
precautionary reserves of liquid assets, and enhancing their well-being over longer time
periods. J. Farinela, J. Bland, et al. claim that.Taking a money management course does
not make a student less willing to avoid debt, which is something that most
governments are concerned with in 2017. On the other hand, increasing a student's
likelihood of staying out of debt is learning about money management in another
course.
 Except from that (Thomas, A., and V. Gupta, 2021). An individual's involvement
in information exchange as a medium in the improvement of financial well-being
(FWB)total pleasure with one's present financial circumstances. Moreover, the financial
effects of changing one's financial practices. It was said by (Condino, R.V. et al., 2020).
The knowledge and comprehension of how money is created, spent, and saved are used
to enhance literacy.Students should be aware of how money functions in their hands
and how to manage their finances. Thus, a daily budgeting plan is suggested to students
who struggle with financial literacy in order to reduce and keep track of the underlying
causes of their spending.

Cleverism, 2019) Planning was done throughout the state.characterized as the

capacity to consider and successfully overseeing actions to accomplish definite
objectives utilizing any tools at hand. Planning served as a kind of road map that before
we tried to begin a task, instructions on how to finish it were provided. They can
determine in advance whether they will have enough money to carry out the tasks they
need or wish to carry out by creating a spending plan. Planning served as a manual for
deciding how much money to spend each day by using a budget.According to (Sollano
et al., 2018), this study discovered that pupils who are given a daily stipend at school to
foster financial literacy are more likely to thrive academically. The table indicates
whether a student's daily allocation is between 21 and 41 or more, with a daily
allowance of 41 or more being the norm for most students. Also, it was shown that the
majority of pupils performed academically between 85 and 89, which is considered to
be "satisfactory" in terms of grades. The researchers come to the conclusion that there
is a substantial connection between the socioeconomic position of the parents and the
student's academic achievement.This research looks into the link between student
financial aid and academic achievement. It disregards the many goods that a student
can purchase clearly states that higher spending allowance raises a student's academic
performance.
 Lastly. The scientists found that student budgeting is challenging due to the fact
that they use a substantial a portion of it on unnecessary purchases. The students'
financial circumstances were impacted social media, the media, and their peer group
friends. Financial literacy helps students succeed and advance. In addition,having a
good understanding of your financial condition is essential. It is advised to develop
financial literacy (Tamon, C.J.2020).a daily spending schedule to reduce and keep track
of their spending.Regardless of how much or little money you have, it is a good idea to
spend responsibly.This is a great approach for students to save money and raise their
financial literacy at the same time. The student saves a proportionate amount each
month for their expenses since they have a substantial obstacle or difficulty sticking to
their budget.

STATEMENT OF THE PROBLEM

This study is aimed to know the level of financial improvement of senior high school ABM
student from Feapitsat College of Dasmariñas.

Specifically, this study will answer the following

questions:
1. What is the level of financial literacy of senior high school ABM 11 & 12 students in
the three areas when they are grouped according to the following variables. a.
Sex/Gender
b. Grade Level
c. Family Monthly Income
2. What is the level of financial literacy of the ABM 11 & 12 students as a
whole and in the following areas: a. Spending habits
b. Saving habits
c. Financial knowledge
3. Is there a significant difference in the following areas when the participants are grouped
according to the following variables mentioned above?
a. Sex/Gender
b. Grade Level
c.Family Monthly Income

SIGNIFICANCE OF THE STUDY

Improving Financial Awareness on Budgeting and Spending Habits. Financial

Literacy is the ability to understand how money works: how someone makes,
manages,and invests it.This research can be used by teachers to instruct their ABM
students about financial literac.Students will profit from the method for managing their
finances and debt effectively because it will enable them to save money while they are
in school.
Instructing students in financial literacy is intended to improve their
understanding of money comprehension of fundamental financial ideas in order to
better manage their finances. Senior high school students' financial education enhances
the standard of financial services and promotes a nation's economic development.

The findings of the study can be used to find out if ABM students are becoming
more financially aware in terms of their spending and budgeting habits. High School
Senior.It will show which educational material the teachers value the most.With the
findings, it would be possible to demonstrate to teachers and other school personnel
that financial literacy is a necessary component of being able to enroll in senior high
school, whether the answer is Yes or No.It can be used as a tool for tracking spending
patterns and financial budgeting.

ASSUMPTION
1.To know their ability to effectively manage financial resource.
2.To know the importance of Financial Awareness .
3.To know the budgeting and Spending habits .
 RESEARCH PARADIGM
INPUT PROCESS PROCESS OUTPUT
A.Demographic profile A.Interview/s
of the respondents in B.Survey/Survey
terms of: Questionaires
1.a.Name(optional)
1.b.Age
1.c.Sex/Gender

SCOPE AND LIMITATIONS OF THE STUDY

This Study focused on the level of financial Awareness of senior high school student in
ABM 11 & 12 to analyze and develop money management efficiently and also be able to
identify the factors affecting the level of financial improvement. This study is limited to student
of Feapitsat College of Dasmariñas.

The fact that the student researchers, despite the fact that it is encouraged,guarantee
that the participants answered the survey honestly constitutes a limitation of this study.
Another important limitation of Because the study had already been conducted at other
schools and there was no other way to change the results, the researcher was unable to do so.
The studies make use of the original population's size.

HYPOTHESIS OF THE STUDY

Null hypothesis (H0): Student budgeting primarily refers to management of financial expenses
within their assigned budget.
 Alternative hypothesis(H1):Student budgeting and Spending is consuming money for their
needs and wants.

DEFINITION OF TERMS

>Financial Awareness- The ability to use knowledge and skills to effectively manage financial
resources efficiently at a personal-level and through the lifecycle. Also awareness for the
students who have ability to finance literacy.

> Financial Literacy- The ability to understand and apply different financial skills effectively,
including personal financial management,budgeting,and savings.

> Budgeting/ Budget- A plan used to decide the amount of money that can be spent and how
it will be spend. A student how to spend their money in daily needs.

>Spending Habits- A way you put your plan into action and to develop spending habits that will
help you balance you’re spending with your income.

>Financial- relating to money. A student financial in budgeting. Students -Refers to the

students or learners that lack knowledge about budgeting a student who is studying at a
Feapitsat College of Dasmariñas.

> Budgeting Skills- The ability of an individual to adopt a proactive approach.

> Planning- The process of making plans for something. A planning to budget their money for
academic purposes or daily needs.