Rationale

Jugan National High School
Jugan, Consolacion, Cebu
Financial Behavior: Spending and Saving Habits of Grade 12 Students

Of Jugan National Highschool S.Y. 2022-2023
Researchers:
Jamaica Jane R. Icot
John Carlo Bejasa
Blessirie Pia Dimarucut
Reynjhun Ferrer
Roberto Elecciones
A Research Paper Represented To:

Jessie L. Bontuyan
INTRODUCTION
Rationale of the Study

Financial behavior refers to any human behavior that has anything to do with
managing money.
THEORETICAL BACKGROUND
This study assumes that financial behavior refers to all human behaviors related
to money management. This research is primarily supported by Simon’s Bounded
Rationality Theory of Herbert A. Simon (1955) and the Maslow Hierarchy Needs Theory
of Abraham Maslow (1943).
The theory of bounded rationality was founded in 1955 by Herbert A.

Simon was an American economist and political scientist. It is a theory of economic
decision-making that challenges classical economic thinking, including rational behavior
and the atomistic individualism of economists.
It was associated with the supposition that if people were better informed, they
would become more aware of the consequences of spending their money and the
effects of good saving habits, and they would be motivated to behave in responsible
spending and saving. Thus, when knowledge increases and habits are effective, their
financial life would be more balanced when it comes to money. This theory provides a
consideration of the possible relationship existing between spending and saving habits,
as well as, a self-disciplined mind and self. A piece of good knowledge about money is
not necessary but it’s important in financial life, but good habits are way more important.
On the other hand, a lack of good habits in saving and spending or awareness
about money may affect a person's financial stability. Therefore, other intervening
factors like the lack of intention to act, lack of personal responsibility, and lack of self-
discipline are needed to be considered. An individual with increased knowledge of
spending and saving habits and their issues will lead to an increased awareness of
financial stability and involvement with activities or actions that will make their financial
life better, including expanding their capacity to learn for further financial stability.
Chapter 2
RELATED LITERATURE AND STUDIES
This chapter presents related literature and studies. Which significantly

contributed to further deepening the understanding of the study.
According to IASET US (2021) that a mail questionnaire was an effective tool

used to obtain an unbiased result on the spending & saving habits of College Students
in DELHI. It was found that men spend more than women and 34.3% of the whole
received, the result was very close to the saving group of students with more income to
save more which can also be concluded by reviewing the response to the questionnaire.
In 2022, Kavita Chavali the method accepted in this study is a questionnaire

design based on data collection through a structured questionnaire of randomly
selected adolescents. As a result of descriptive analysis and correlation analysis, it was
found that peer influence, parental influence, and youth's financial ability were
significantly correlated with youth savings and consumption habits.
According to Lendol Calder (2012), through a survey detailing methods of the
intellectual history of household expenditure, it was concluded that budget studies could
be used to write a social history of saving and spending.
In 2022, Lagarde G.R, Alba AJ.M, Magarta M.F, Amlog RA. B, Diondo, MA. A,
Cabal, E.M. analyze data using frequencies and percentages, weighted averages,
analysis of variance (ANOVA), and Pearson's correlation coefficient. Through their
findings, the researchers suggested that students, like their parents, should think about
the value of saving money for the future. Parents should always tell their children to
spend their money where it is necessary and not on a whim or on the advice of friends.
Teachers can advise students to practice responsible spending and saving. Schools and
families can think of ways to teach students how to save money.
According Jessica M. Rixom (2013), It was found that individuals save more with
a single account than with multiple liquid accounts. Studies utilized stimuli with real
monetary outcomes (earning, saving, and spending). The findings go against current
practices to open multiple accounts to save more.
In 2012, Patti J. Fisher and Sophia Anong study uses Katona's (1975)

psychological classification of savings to classify households into regular
savings (discretionary), irregular savings (residual), or no savings. Of the 3,822 non-
pensioner households surveyed in the 2007 Consumer Finance Survey, 46%
saved regularly and 32% did. Irregularly, 22% did not save.
According to Meli Ameliawati and Rediana Setiyani (2018), a questionnaire is a

tool used in gathering information.
In 2012, Tahira K. Hira

According to Jammal Mohammad Email Alekam (2018), a survey questionnaire
tool was used to obtain the result. The results revealed a significantly positive
relationship between behavior and financial literacy. In addition, it was found that
family/parents and colleagues had a significant effect on financial literacy.
In 2012, Chan, S. Fiona; Chau, Albert Wai-Lap; Chan, Kim Yin-Kwan a survey
tool was used to collect the data. The findings support the hypothesis that students'
propensity for sound financial management is related to attitudes toward debt,
dysfunctional impulses, perceived behavioral control, financial knowledge, and
employment. Students who manage their finances well tend to have less debt and
better financial health.
According to Kenichiro Chinen and Hideki Endo (2012),

In 2018, JTC Bona in this study, a descriptive survey method was used. A
questionnaire developed by the researcher was used as the main data collection tool.
Interviews were also conducted to obtain clarifications, verify respondents' answers and
obtain additional information. After reviewing the data, the researchers concluded that
college students' spending behavior was strongly influenced by their marital status.
Parents play an important role in shaping their children's attitudes about managing
finances as well as life in general. It is therefore very important that young people start
learning about finance during adolescence so that they have the best chance of
success in adulthood. Good financial knowledge is not enough. Success requires
supportive parents who expect healthy, positive attitudes and responsible financial
relationships.
According to Flor Madrigal Moreno, Jaime Gil Lafuente, Fernando Ávila Carreón,
& Salvador Madrigal Moreno (2017), as a result of growing up in an environment where
technology allows for personalization and instant gratification in all aspects of life, the
findings suggest that millennials are a highly appealing market. As a result, they view
the buying process as an enjoyable experience in which brand loyalty is relative.
Additionally, millennials spend their money more frequently and quickly online,
particularly on social media platforms like Facebook. Additionally, the findings
demonstrate that virtual advertising, such as discounts or coupons, attracts millennials
more. By providing a description of millennial customers, the findings contribute to the
literature; demonstrating in depth the significance of this market segment and their
purchasing habits.
In 2014, Michael Batty, J Michael Collins, Elizabeth Odders- White an
experimental design is used in this study to evaluate a set of standardized financial
education courses. Even a relatively short program is found to produce knowledge
gains that last a year. Although it is challenging to measure financial behaviors in this
age group, students who have received financial education appear to be more likely to
save and have more positive attitudes about personal finance. These findings
demonstrate that younger students are capable of learning about finances and that
learning is linked to improved attitudes and behaviors that, if sustained, may lead to
increased financial capability in later life.
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Jugan National High School

Jugan, Consolacion, Cebu

Financial Behavior: Spending and Saving Habits of Grade 12 Students

A Research Paper Represented To:

Rationale of the Study

The theory of bounded rationality was founded in 1955 by Herbert A.

RELATED LITERATURE AND STUDIES

This chapter presents related literature and studies. Which significantly

According to IASET US (2021) that a mail questionnaire was an effective tool

In 2022, Kavita Chavali the method accepted in this study is a questionnaire

In 2012, Patti J. Fisher and Sophia Anong study uses Katona's (1975)

According to Meli Ameliawati and Rediana Setiyani (2018), a questionnaire is a

In 2012, Tahira K. Hira

According to Kenichiro Chinen and Hideki Endo (2012),

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