1

Chapter 1

INTRODUCTION

In today's generation, most students were engage in a lot of trends and

modernization, realizing that their allowances are their most basic source. Zollo (1995a)

estimated that teens' spending was close to a staggering $100 billion a year therefore they

should be reminded the importance of money management. Fifty years ago, the American

scholars Marshall & Magruder (1960) found that children’s knowledge of money is

related directly to the extensiveness of their experience with money. However, they did

not find that children have more knowledge of money if their parents gave them an

allowance. Students developed their own beliefs regarding spending and saving. The best

way for students is to understand the proper savings of money from their weekly

allowances. An allowance is money earned or given to a child at regular intervals to teach

the child how to manage and saving as clarified by Keynes (1936) as the excess on

income over what is spent on consumption. Researchers determine the relationship

between allowance and behavior in savings. Furthermore, if there is a significant

difference on the level of behavior towards savings when grouped according to students

weekly savings, weekly allowance and sex. Saving is influenced by current real income,
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demographic effect and the real rate of return (Hufner and Koske, 2010). Boys and girls

are raised differently by their parents, who also have different expectations of sons and

daughters (Thorne, 2003). The researchers aim to examine the allowance of students

given by their parents, which is essential because it will lead to students behavior in

spending and help students to practice saving in a right way or a proper strategy.

The purpose of this study is to determine the factors that lead students to save

money from their allowances. This study is essential for students to be knowledgeable

enough in spending, to understand the value of money and to determine their ability to

save. Statement of the problem: Is there a significant relationship between weekly

allowance and behavior of savings of high school students, Is there a significant

relationship between weekly savings and behavior of savings of high school students and

if there is a significant difference on the level of behavior on savings of the high school

students when they are grouped according to sex, weekly allowance and weekly savings.

According to the study entitled Financial Literacy: A Study among the University

Students, the research shows that there was significant positive relationship with the

financial literacy spending habit and year of study, whereby the age and gender are

negatively associated with the financial literacy (Azizah Shaari, Abu Hasan & et al.,

2013). According to (Stollak, Vandenberg & et al., ) study helps the researchers to prove

that the relationship between savings and allowance is affected by age and gender. The

study limits only to the relationship between allowance and behaviour in savings on some

selected High School students in UNO-R. The study needed to have conducted within

one semester. The researchers surveyed 250 students only considering that only one

semester is given to finish the investigation. An effort was made to identify the most
 3

suitable factor for segmentation. This study is beneficial for students to appraise their

practice of spending money. Parents of millennial students might benefit by assisting

their children with savings skills and future researchers could also benefit to the study

because they will gain new knowledge. They will have a basis on doing their respective

study and could fulfill the researcher’s shortcoming in the research study. Terms related

to this study are allowance, savings, budgeting and money. The following are the

overview of the study about the relationship between allowance and savings.

Statement of the Problem

The allowance is one of the primary needs of every student. It needed for all

financial decisions and activities that a person could make and undertake. For a student,

managing personal finances from their allowance is a crucial and often tricky issue

(Bennett, 2006). Lusardi et al. (2010) investigated and found that the level of financial

literacy among the young is low, an inference that is consistent with findings across the

world that despite concerted efforts to improve financial literacy, it continues to be

inadequate among the young. Being not educated enough about it, could affect to the

savings of students. The researchers, therefore, aim to figure out the relationship between

the variables.

1. Is there a significant relationship between weekly allowance and behavior of savings of

high school students?

2. Is there a significant relationship between weekly savings and behavior of savings of

high school students?

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3. Is there a significant difference on the level of behavior on savings of the high school

students when they are group according to:

a) Sex

b) Weekly allowance

c) Weekly savings

Hypotheses

1. There is significant relationship between weekly allowance and behavior of savings of

high school students.

2. There is significant relationship between weekly savings and behavior of savings of

high school students.

3. There is no significant difference on the level of behavior on savings of the high school

students when they are group according to:

a) Sex

b) weekly allowance

c) weekly savings
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Theoretical Framework and Review of Related Literature

Children, in general, and teens, in particular, constitute a significant power in the

market, feeding the most profitable businesses and industries. Children's allowances, a

standard feature of 20th-century welfare states, are cash grants from the government to

families with children (Curley & Sherraden, 2000). Allowances given to students depend

most commonly on family income, but the ability save money may differ in gender which

influences the behavior of males and females differently because males and females are

brought up differently and socialize with their parents in different ways (Hare-Mustin and

Marecek, 1990). For instance, male students aged 13-18 in Thailand spend more money

than female students (Wiangwisad, 2008). Male college students in the United States of

America tend to have more financial knowledge than female students (Jones, 2005;

Borden et al., 2008). Male students in the United States of America are more financially

independent as well as more economically confident and secure when compared to

females (Carpenter and Moore, 2008). Furthermore, female college students in the United

States of America are more likely to take risks in using credit cards than males (Lyons et

al., 2006). It has also been found that male college students in Malaysia have a more

positive financial attitude than female students (Ibrahim et al., 2009). Although teens

have the discretionary income and buying power exceeding the spending of several states

combined or about half of the U.S. defense budget (Zollo, 1995), reports continue to

show how much teenagers do not know about money matters. Student's behavior in

saving money also depends on the age which provides the degree of knowledge and

practice in proper savings. Allowances given to students may include in one of the factors

that affect in saving. Because of the consistent expenses in school and personal, some
 6

may not be able to save, but through having a more significant amount of allowance,

students may save even in the midst of expenses. Student's age sometimes doesn't match

with their year/grade level which also affects saving based on their learning and

knowledge of the right way to save. In the US, Mortimer, Dennehy, Chaimum and

(Finch, 1994)studied 1,090 ninth grade students and found no significant effects of

allowances on children’s savings , but did find that students who reported receiving a

regular allowance in the ninth grade were less likely than other students to view work

generally as a source of intrinsic satisfaction. Therefore (Shefrin, 1981) and (Thaler,

1990) proposed the behavioral life cycle hypothesis stressed that individuals are tempted

to spend and that saving requires effort and self-control. Money management and the

ability to apply it when making personal economic decisions are essential to individuals

throughout their lives especially senior high school students with a lot of activities to

perform. The study aims to control and help students in managing money properly. The

student's capacity to save and the student's range of allowance may determine throughout

the study. Therefore, the researchers want to discover the significance between allowance

and savings. The study gives lessons to children in enhancing their money management

habits by increasing consciousness of personal spending habits and the power of savings

and reinforcing lessons learned.

Review of Related Literature

Literature review is an evaluation of significant research materials (articles, books

and any publications) published in the particular subject. In essence, it is review of body

of knowledge making up specific subject area. Literature review includes important

information and concepts from published sources (book, reports and studies) group them
 7

in to themes and relate them to the subject of interest. The review of related kinds of

literature, therefore, considers the academic theories and the various views expressed by

scholars on the topic. This explains the theory for the research and discover how each

independent variable affects the dependent variable by reviewing past literatures related

to the topic. This part also includes a proposed conceptual framework developed for the

research and hypotheses to be tested.

Saving Behavior (dependent variable)

According to the Maps world of finance, saving behavior is defined as an

understanding on how people save in country in order to realize economic

condition of that country. There are many aspects related to saving behaviour.

Research study “The Impact of Financial Literacy on Individual Savings: An

Exploratory Study in the Malaysian Context” tells that saving regularity, gender,

income, and educational level influenced the probability of savings positively

(Mahdzan & Tabiani, 2013). And according to the study Teenagers' Money,

Discretionary Spending and Saving, having an allowance negatively affected

teens' food and clothing expenditures (Alhabeeb, 2010). Compared to female

teens, males saved less and spent less on clothing and personal care items

compared to female teens, males saved less and spent less on clothing and

personal care items.

Sex (independent variable)

According to Merriam Webster dictionary sex is either of the two forms of

individuals that occur in many species and that is distinguished respectively as

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female and male especially on the basis of their reproductive organs and

structures. Research study “Student budgeting and spending behaviors: A

comparative study” demonstrates that women were much better planners and

budgeters than males (Stollak, Vandenberg & et al., 2010). According to the study

An Analysis of the Factors Affecting the Spending and Saving Habits of College

Students, gender largely influence financial behaviors of a college student

(Villanueva, 2017). In terms of planning ahead for future spending, females were

more likely to plan for spending. In study Gender Differences in Perception of

Spending and Financial Risk Aversion, the findings indicated that there was a

significant difference between how men and women perceived themselves and

others as spenders/savers (Balhorn, 2010). Additionally, the findings also

indicated that women tended to be more financially risk averse than men;

however, the difference was not significant. Research study “Gender Effects on

Aggregate Saving: A Theoretical and Empirical Analysis” indicates that as some

measures of women’s discretionary income and bargaining power increase,

aggregate saving rates rise, implying a significant effect of gender on aggregate

savings (Floro & Seguino, 2002). However in the study titled Gender differences

in saving and spending behaviours of Thai students, demonstrate the importance

of understanding gender relations at the household level in planning for savings

mobilization and in the formulation of financial and investment policies

(Sereetrakul, Wongveeravuti & Likitapiwat, 2013). The results showed that

female and male students did not have different saving behaviour, although

females had a more positive attitude towards saving and shopping than males. In
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addition, females were more concerned about being rich or having a lot of money

than males, while males had a more positive attitude towards spending money

than females. The study also revealed that female and male students bought

different types of products. Financial Literacy: A study among the university

students an article that also shows there is a negative relationship between age and

gender with the financial literacy (Shaari & et al, 2013).

Weekly Allowance (independent variable)

An allowance is money that is given to someone, usually on a regular

basis, in order to help them pay for things that they need (Collins English

Dictionary, 2018). Early influences on saving behaviour: Analysis of British panel

data, a research study that indicates that the child’s allowance is negatively

associated with the probability that the child saves (Brown & Taylor, 2015). In

contrast, the weekly pay that the child receives from part-time work is positively

associated with the probability of saving, thus, indicating a distinct difference in

the influence of these two different sources of children’s income on their saving

behaviour. According to the study Adolescents' Reported Saving, Giving, and

Spending as a Function of Sources of Income, findings suggest that giving money

to children may foster saving and gift-giving more than spending on self (Belk,

Harvey & Rice, 1995). However, dual sources of income and greater amounts of

income are associated with more spending on self. Behaviour of the personal

savings rate in Canada in recent years: A note Studies of consumer behaviour

have indicated that consumers tend to adjust their savings to smooth spending
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relative to fluctuations in their disposable income (Lau, 1993). Temporary

increases (or decreases) in income will thus raise (or reduce) the savings rate as

they have relatively little impact on consumer spending. This implies that savings

move in line with short-term changes in disposable income. Factors Influencing

People to Save Money this article tells that there are seven factors that influence

people to save one of it is the allowance which primary influence saving (Chand,

2016). As disposable income rises, the total amount saved and the proportion

saved increases.

Weekly Savings (independent variable)

Savings is the portion of disposable income not spent on consumption of

consumer goods but accumulated or invested directly in capital equipment or in

paying off a home mortgage, or indirectly through purchase of securities

(Business Dictionary, 2018). And according to Merriam Webster saving is a

process of setting aside a portion of current income for future use, or the flow of

resources accumulated in this way over a given period of time. Saving goals are

viewed as reasons or purposes that lead households to save and can be measured

with question of, “What is your most important reason to save?”(Browning &

Lusardi, 2007).
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Scope and Limitation of the Study

The focus of the study is to conduct an empirical overview among the students

about the relationship between their allowance and savings. This study and the potential

savings have been validated in survey with the participants. The study produces

quantitative studies to show how allowance affects the savings of the students.

The study however focuses on some selected High School students in UNO-R.

The study needed to have been conducted within one semester. The researchers

conducted a survey within 250 students only considering that only one semester is given
 12

to finish the study. An effort was made to identify the most suitable factor for

segmentation. The variables used include the sex, weekly allowance, weekly savings and

behavior in savings.

Significance of the Study

The result of this research will contribute to both practice and research. Many

people would be aware about the amount of money saved in the total allowance in a week

of High School Students in University of Negros Occidental-Recoletos. In terms of

research, this study is designed to collect data about money usage of High School

Students, and to provide information about current financial responsibilities. In terms of

practice, the results of this study might inform three beneficiaries about the issue of

money savings.

Students.

This study is beneficial for students to appraise their practice of spending

money. First, this will inform them where students like them generally spend their

money with. Upon this information, this study can enlighten them on how to use

their allowance wisely.

Parents.

Parents of millennial students might benefit by assisting their children

with savings skills before they get enrolled to an institution or university. They

will be able to monitor their children’s usage of allowance. Parents will have the

knowledge of how to distribute the money to their children. Also, they will be
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able to gain new knowledge about the importance of the amount of their child’s

weekly allowance to their weekly savings.

Future Researchers.

Future researchers might elaborate on the present study and examine

money saving skills in relation to other issues in higher education. The future

researchers could also benefit to the study because they will gain new knowledge.

They will have a basis on doing their respective study and could fulfill the

researcher’s shortcoming in the research study.

Definition of Terms

Allowance- A share or portion allotted or granted. A sum granted as a

reimbursement or bounty or for expenses. A fixed or available amount provide an

allowance of time for recreation. (Meriam Webster, 2017).

Comparative Study- A study in which a participant is randomly assigned to one

of two or more different treatment groups for purposes of comparing the effects of the

treatments. (A Dictionary of Nursing, 2017).

Discretionary- Left to individual choice or judgment and exercised at one's own

discretion. (Meriam Webster, 2017).

Empirical- Relying on experience or observation alone often without due regard

for system and theory. (Meriam Webster, 2017)

Expenses- Something expended to secure a benefit or bring about a result. A

cause or occasion of expenditure. (Meriam Webster, 2017).

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Financial- Monetary, money, economic, pecuniary, fiscal, banking, commercial,

business, investment. (Meriam Webster, 2017).

Millennial- A person reaching young adulthood in the early 21st century or in

this generation. (Meriam Webster, 2017).

Money management- Is the process of budgeting, saving, investing, spending or

otherwise in overseeing the cash usage of an individual or group. (Investopedia, 2017).

Questionnaire- A set of questions for obtaining statistically useful or personal

information from individuals. (Meriam Webster, 2017).

Relationship- The way in which two or more concepts, objects, or people are

connected, or the state of being connected. (Meriam Webster, 2017).

Saving- The excess of income over consumption expenditures. (Meriam Webster,

2017).

Sustainable consumption- Is the use of products and services that have a

minimal impact on the environment so future generations can meet their needs.

(Environmental Science 101: Environment and Humanity / Science Courses, 2017).

Theoretical- Existing only in theory, confined to theory or speculation often in

contrast to practical applications. (Meriam Webster, 2017).

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Chapter 2

METHODOLOGY

This aspect of the study deals with the various statistical tools and techniques

used in order to analyze and translate data and all informative one major considerations.

Including the research design, research setting, participants of the study, measurements of

data and procedures used in gathering and collecting data. The researchers used

correlational study as the quantitative design that measures the relationship between

allowance and behavior in savings of 250 high school students in the University of

Negros Occidental Recoletos that serves as the participants.

Research Design

The research employed the correlational research design in the formulation of this

research work. The correlational analysis designed to determine the relationship between

the independent variable: the weekly allowance, weekly savings, and sex with the

dependent variable: the behavior savings when group according to weekly allowance,

weekly savings and sex. In this way the researchers will be able to know if there is a

relationship between allowance and behavior in savings.

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Participants

The participants of this study were the 250 students from 6 different grade levels

of University of Negros Occidental-Recoletos. Participants included 118 females and 132

males between the ages of 12 and 18. There are 144 students from junior high school and

another 106 students from senior high school.

The participants were selected using random sampling method. Participants were

not forced nor paid to be part of the sample.

Measures

To be able to gather the data needed for the study, a self-made questionnaire was

used which were distributed to the high school students of University of Negros

Occidental-Recoletos (UNO-R) to enable them to determine the relationship between

their allowance and behavior in savings.

The questionnaire was divided into three parts. Part 1 of the questionnaire

includes the demographic profile which is the participant’s sex that can be used as an

independent variables.

Part 2 of the questionnaire aimed to gather information about the high school

student’s weekly allowance, and weekly savings.

Part 3 of the questionnaire consists of questions that aimed to measure the

behavior of students towards money saving. Numerical scale from 1-5 are indicated for

the participants to check one that best represent their answers. The numerical scale and

verbal interpretations were reflected as follows:

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Numerical Scale Interpretation

5 Always

4 Often

3 Sometimes

2 Rarely

1 Never

Since the instrument was self-made, it was subjected to validation by a panel of

research teachers. After validation, the test instrument was then tested to 30 students

randomly selected high school students of UNO-R as the target participants. Test was

used in order to find out how reliable the instrument was. The test was administered in

October 04, 2017. The reliability coefficient of the instrument was computed using the

Cronbach’s Alpha. The correlation coefficient of the instrument was found to be 0.843.

Therefore, the instrument was considered to be highly reliable.

Procedures

The survey questionnaires were validated with the result 3.46. The researchers

conducted a reliability test to thirty non-participants by giving survey structured

questionnaires, the results showed was 0.843 and interpreted as good. The researchers

allotted several days of extensive data gathering activities involving the distribution of

same set of questionnaire to high school students randomly. The questionnaire for this

study designed to cover major aspects about weekly allowance, weekly savings, saving

behavior, and demographic information. The researchers used Pearson Correlation to

determine the relationship between the weekly allowance and weekly savings to the
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behavior in savings of students. Independent T-test Sample was used to determine the

significant difference on the level of behavior of savings of the high school students when

grouped according sex. While Analysis of Variance (ANOVA) was used to determine the

significant difference on the level of behavior of savings of the high school students when

grouped according to weekly allowance and weekly savings.

CHAPTER 3
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RESULTS, DISCUSSION, AND IMPLICATIONS

Results

Table 1: Relationship between allowance and behavior of savings

Variable r df p
Behavior of Savings x Allowance -0.094 248 0.138

Pearson Correlation (r) was used to determine the relationship between allowance and behavior

of savings. The relationship was not significant.

Table 2: Relationship between weekly saving and behavior of savings

Variable r Df p
Weekly
Behavior of Savings x 0.054 248 0.399
savings
Pearson Correlation (r) was used to determine the relationship between weekly savings and

behavior of savings. The relationship was not significant.

Table 3: Level of behavior on Savings of the high school students

Sex n M SD Interpretation
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Male 132 3.25 0.93 Sometimes

Female 118 3.47 0.82 Sometimes

Weekly Savings n M SD Interpretation

below 100 96 3.36 0.87 Sometimes

101-250 93 3.28 0.83 Sometimes

251-500 43 3.39 0.93 Sometimes

above 500 18 3.62 1.08 Often

Weekly Allowance n M SD Interpretation

below ₱500 42 3.61 0.83 Often

₱501- ₱1000 88 3.31 0.87 Sometimes

₱1001- ₱1500 75 3.29 0.90 Sometimes

above ₱1500 45 3.3 0.93 Sometimes

As a whole 250 3.35 0.88 Sometimes

Table 4:Difference on the level of behavior on savings of the high school students when

they

are grouped according to sex

Behavior on savings Sex T df p
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Male Female      
3.25 3.47 1.957 248 0.051
(0.93) (0.82)      

Independent sample T-test was used to determine the significant difference on the level

of behavior on savings of the high school students when they are grouped according to sex .

There was no significant difference on the level of behavior on savings of the high school

students when they are grouped according to sex p (0.051).

Table 5:Difference on the level of behavior on savings of the high school students

when they are grouped according to weekly allowance

Weekly allowance M F df p

below ₱500 3.61a 1.466 3 0.224

(0.83) 246

₱501- ₱1000 3.31a

(0.87)

₱1001- ₱1500 3.29a

(0.90)

above ₱1500 3.30a

(0.93)
Note: the difference is significant when p<0.05, means that share a letter are not significantly

different.

Analysis of Variance (ANOVA) was used to determine the significant difference on the level of

behavior on savings of the high school students when they are grouped according to weekly

allowance. There was no significant difference on the level of behavior on savings of the high

school students when they are grouped according to weekly allowance [F (3,246) =1.466]
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Table 6:Difference on the level of behavior on savings of the high school students when

they are grouped according to weekly savings

Weekly savings M F df p
below 100 3.36 0.783 3 0.505
(0.87) 246
101-250 3.28
(0.83)
251-500 3.39
(0.93)
above 500 3.62
(1.08)
Note: the difference is significant when p<0.05, means that share a letter are not significantly

different

Analysis of Variance (ANOVA) was used to determine the significant difference on the level of

behavior on savings of the high school students when they are grouped according to weekly

savings. There was no significant difference on the level of behavior on savings of the high school

students when they are grouped according to weekly savings [F (3,246) =0.783]

Discussion

Using the Pearson Correlation the researchers determine if there is a significant

relationship between allowance and behaviour of savings, and weekly savings and the

behavior of savings of UNO-R high school students.

As table 1 shows using the Pearson correlation the value of p is 0.138 which is

greater than 0.05 and means that there is no significant relationship between allowance

and behavior of savings of UNO-R high school students. This answers the statement of

the problem no. 1 and explains that the independent variable, allowance doesn’t affect the
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dependent variable, behaviour in savings. The result proves the theory that allowance of a

child negatively associated with the probability that the child saves which is found in

related literature entitled “Early influences on saving behaviour: Analysis of British panel

data”(Brown & Taylor, 2015). Therefore the hypothesis is rejected.

In table 2 with the Pearson Correlation the value of p is 0.399 which is also

greater than 0.05 and also means that there is no significant relationship between weekly

savings and the behaviour of savings of UNO-R high school students. This answers the

statement of the problem no. 2. Therefore the hypothesis is rejected.

Using the independent sample T-test the researchers determine the significant

difference on the level of behavior on savings of the high school students when they are

grouped according to sex of UNO-R high school students.

As table 4 shows the value of p is 0.051 which is greater than 0.05 therefore there

is no significant difference on the level of behavior on savings of the high school students

when they are grouped according to sex. This answers the statement of the problem no. 3

that male and female have the same behaviour in savings. This proves that female and

male students did not have different saving behavior, although females had a more

positive attitude towards saving and shopping than males which is found in related

literature “Gender differences in saving and spending behaviours of Thai students”.

Analysis of Variance (ANOVA) was used to determine the significant difference

on the level of behavior on savings of the high school students when they are grouped

according to weekly allowance and weekly savings of UNO-R high school students.
 24

As table 5 and 6 shows using the ANOVA, the value of p is 0.224 and 0.505

respectively. It means that there is no significant difference on the level of behavior on

savings of UNO-R high school students when grouped according to their weekly

allowance and weekly savings. This answers the statement of the problem no. 3 b and c.

It explains that the independent variable which is the weekly allowance and savings,

whether high or low doesn’t have differences towards the dependent variable, behaviour

in savings.

Implications

This research has provided the findings that the relationship between allowance

and savings behavior in the university students’ was not significant. Meanwhile, if saving

behavior is not practiced by the university students, they may eventually encountered

financial problems (Sabri et al., 2010) such as unable to repay the study loans and poor

financial management. Financial education and the capacity to save may benefit all kinds

of students considering that there is no significant difference on students’ sex, amount of

weekly allowances given, and the amount of weekly savings. Thus, the researchers

believe this study can provide practical implications to promote better financial

management regardless the students weekly allowances, weekly savings and sex. This

study would encourage students to practice self-control in spending and takes efforts in

saving money. By implication, providing financial education during college could ease

the effects of bad financial habits and attitudes that were acquired before college. Parents

always play the central role in facilitating and promoting their children’s saving

behaviour (Cude et al., 2006). This study will benefits the parents in giving their students

weekly. Children who received an unconditional allowance knew much less than others
 25

about savings, spending and credit (Mandell, 2001). Since parents knew the behavior of

their children in spending and saving, this study will help to parents to be knowledgeable

to minimize the amount of weekly allowances they give to their children. As most

research has emphasized, financial education is the best way to enhance students’

financial knowledge and skills. (Leila Falahati, 2011). Therefore, it is important for

policy makers to develop an effective education programs based on the needs and

financial literacy level of the students. The educational program should focus on

improving the students’ basic financial knowledge and skill. The programs and workshop

to organize seminars can be an alternative manner for improving the students’ financial

knowledge, attitudes and behaviour. This study highlights importance ability and

capability to save In order to understand students’ saving behaviour, it is important to

figure out on what their attitudes and beliefs towards saving considering that the

independent variable including sex, weekly allowance, and weekly savings in this study

is not significant.

CHAPTER 4

CONCLUSIONS AND RECOMMENDATIONS

High school students are the country’s future masters. In order to prepare them to

overcome financial problems smoothly in the future, we should carry out finance

education as early as possible. This research has been an attempt to determine the

relationship of allowance and behavior in savings of high school student. Based on the
 26

data gathered by the researchers through survey questionnaire the independent variable

which is the; weekly allowance, weekly savings, and sex, have no significant relationship

in the dependent variable which is the behavior in savings. Savings of students, therefore,

do not relate to any variables that may affect to it because the factor that may affect to it

is their self-discipline Good financial practices during younger age lead to financial well-

being in old age. Good financial practices during younger years can be a factor to ensure

financial independence or security in old age since one of the recommended financial

goals is savings for old age (Garmen and Fougue, 2004; Kapoor, Dlabay, & Huges,

2004). High school students must assume as adults and be responsible in their spending

habit. Universities should provide education or promote experiences related to financial

management. Universities need to examine their practices in relation to educating

students about financial management. Until high school students have a full grasp on

financial management skills, they will continue to graduate from high school unprepared

for adult life.

Recommendations

This study suggested for other researchers for their future research to embrace a

larger sample size. According to the law of large numbers, larger sample size is more

likely to be representative and the sample mean is more likely to equal the population

mean (Saunders et al., 2009). Therefore, future research are recommended to draw a

larger sample size to generate a more accurate and representative manners (Lim et al.,

2011). The sample should be enought to represent as a whole especially in every grade
 27

level or every college department. The researchers also recommend to expand the study

in determining the factors that may affect the saving behavior of the students. According

to the study of Thung et al. (2012) finanacial literacy, parental socialization, peer

influence, and self-control have a positive relationship between the saving behavior of the

students amd it was proven by the different researchers too. The researchers suggested to

consider these factors that may help explain further the study.

CHAPTER 5

PROPOSED PROGRAM/OUTPUT

Executive Summary

A review of promoting Bank of the Philippine Island to high school students

which lead them to save. The objective of this study uses (SMART) to attract more

investment to the future investment in the financial basis for action, in fact, raise
 28

awareness and support for personal investment in the financial industry, the behavior of

financial problems.

Our ideal customer is between the ages of 12 and 18 who are highschool students.

Younger consumers that are yet to form the first banking relationship are the target of the

bank that includes the highschool students.

Researchers will use the following strategies to conduct this marketing plan to

students involving easy and accessible ATM, bank receipt, to highlight success stories,

partner with colleges & universities, develop strategic partnerships and branch marketing.

The budget for advertisement estimated 5,000.00 includes artist, photographers,

video editors,and other expenses and fees, flyers and brochures worth 5,000.00 and

tarpaulines of 5,000.00 will be post in different places where there are a lot of students

who will notice it.

A good budget and savings commitment are the foundation of your financial plan.

Learn how to budget, cut expenses, set savings goals and more. Challenge yourself to

make every category in your budget more efficient. Learn how to reduce your expenses

and built an emergency fund.

Target Market

Our ideal customer is between the ages of 12 and 18 who are highschool students.

Younger consumers that are yet to form the first banking relationship are the target of the

bank that includes the highschool students. Banks are primarily interested in expanding

the size of the customer base with the intention of growing their value over time.
 29

Highschool students who are young consumers are sometimes targeted by banks by

school savings programs, in an attempt to win their long-term loyalty.

Marketing Goals (SMART)

To attract more investment to the future investment in the financial basis for

action, in fact, raise awareness and support for personal investment in the financial

industry, the behavior of financial problems. Within 6 months of implementing this

marketing plan more or less 50% of the target market will be able to invest or keep their

savings in BPI.

Marketing Strategies

Marketing is an opportunity to connect with your customers, keep your bank top-

of-mind and have fun while doing it. This marketing strategy will enable to customers for

easy access and trusted banks.

a. Accessible ATM (Automated Teller Machine) - Extend marketing efforts by showing

to commercials and online videos ATM machines whenever a customer tries to make a

transaction. Considering High School students as the target market, school is the most

efficient way to build an ATM.

b. Bank receipt - Upon giving giveaways and contests, researchers offer promotions on

your receipt. Fun interaction encourages students to come back for a repeat visit and can

use giveaways / contests to drive customers to web site or to pick up the phone and call a

branch.
 30

c. Highlight success stories - Identify some of the biggest customers with the most unique

stories and interview them about their experience with the bank. Tell the story in a

creative way and seed it on your web site, in advertising always highlight the positive

impact that happend in their life through the BPI bank.

d. Partner with colleges & universities - Having a strong presence on a school campus is

a great way to get new bankers while they’re young and finances are top-of-mind.

Students are finally becoming financially responsible for themselves. By locking them in

early, have a good chance of keeping them. Get ATMs set up on nearby campuses, attend

on-campus business fairs, sponsor popular organizations’ events and keep your bank

visible. This is very easy and accessible way to convince the target market.

e. Develop strategic partnerships - Partner with their agency is willing to recommend

your services or display your print materials at open houses.

f. Branch marketing- branches offer a good amount of space for marketing. Putting high

impact signs or posters on the doors, windows and in the parking lot is a great way to

attract passers-by who may not already be customers.

Budget

*Advertisement - 5,000.00

Advertisement includes artist, photographers, video editors,and other expenses

and fees. This advertisement will be show to the students and will be post in different

social medias where it is very influencial for millenials nowadays.

 31

*Flyers and Brochures - 5,000.00

Flyers and brochures will be given students to advertise and to let them know

different services offered by BPI. This will also give them tips and ideas how to save and

the benefits of saving in BPI.

*Tarpaulins’- 5,000.00

Tarpaulins’ will be post in different places where there are a lot of students who

will notice it. It contains information about having your savings in BPI.

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