Review of Related Literature

This study synthesizes the authors' viewpoints, principles, concepts, and ideas on spending behavior
among accountancy, business, and management (ABM) students in Camarines Sur National High School
(CSNHS). The topics covered in this chapter are related to our study, which will help the researchers
gather valuable information and ideas to further develop their research.

Spending Behavior
All humans have different behavior in terms of spending their hard-earned money it may be good or bad
spending depending on the person. The spending behavior of a person can be developed in many ways,
and sometimes people are being influenced by external factors. Having good spending behavior is
essential, especially to students, to learn its value.

According to the research of Bona (2017), the spending behavior of students is influenced by their
families. Family plays a significant role in influencing their members on what to buy and consume. Most
of the students follow the spending behaviors of their parents. This is clearly stated that an individual’s
spending habits and behaviors came from their family’s spending behavior as well. The lifestyle of a
person’s family and a person’s lifestyle in buying affect his/her behavior in spending.

According to the research of Tew (2016), today’s student spending behavior emerged as an essential
concern in society today. Socioeconomic factors influenced the spending behavior of students. Many
students are not cautious in managing money, which leads to financial problems. Students are easily
affected by different factors.

According to the research of M.G Lakes (2015), it is a proactive approach to financial

organization, where allows planning for both short-and long-term expenses. It ensures
that people don't spend more than they earn. Budgeting is a simple, effective way for people
with various incomes and expenses to keep their finances in order. Budgeting is vital for students
because it allows them to plan for unforeseen expenses and school cost.

According to the research of J.T.C. Bona (2018) Lifestyle and financial knowledge play a role in shaping
spending. Personal finance knowledge and lifestyle have a big impact on how much people spend. A
person's spending habits are greatly influenced by their lifestyle choices, including whether they like to
live frugally or in luxury.

According to the research of C.P. Tew (2016) Furthermore, financial literacy is

essential because people who are more knowledgeable about investing, saving, and
budgeting tend to make more responsible and well-informed financial decisions. The
foundation for spending behaviors is the interaction of lifestyle and financial knowledge,
which ultimately determines how people allocate their resources and manage the
financial aspects of their lives. Factors such as product usage and purchasing power,
social status, promotional approaches, and prestige influence student spending habits.
Numerous factors influence students' spending patterns in complex ways. Students'
spending decisions are greatly influenced by the usability and frequency of product usage
as well as their purchasing power. Students' social standing matters because they might
be impacted by peer pressure and cultural norms. Discounts and other special offers are
examples of promotional strategies that can influence their choices. Furthermore, their
inclinations for spending may be influenced by the aura of prestige attached to particular
products or brands. The combination of these elements produces a dynamic environment
that shapes students' financial decision-making and reflects a harmony between utility,
interpersonal relationships, and perceived value.

According to J.T.C. Bona (2018) parents play a key role in shaping not only the
attitudes about financial management but also life attitudes in general of their children.
Parents have a significant impact on how their children view life in general as well as how
they feel about money management. Parents teach their children fundamental financial,
budgeting, and saving skills that often carry over into adulthood. In addition to financial
concerns, parents have a big impact on their kids' overall outlook on life by teaching them
values like accountability, perseverance, and hard work.

According to the research of C.P Tew (2016) Parents have a long-lasting effect on
their children's worldview by gently modeling and explicitly teaching them life lessons
that help them navigate the complexities of financial decisions as well as life's bigger
obstacles. One of the major concerns in our society is the younger generation especially
students because of their spending habits and it is visible because of the increase in
bankruptcy cases and social problems among younger generation nowadays which are
often associated with their financial instability due to poor individual financial
management. The increasing number of bankruptcy cases and related social difficulties
indicate that the younger generation's spending habits, particularly those of students,
have become a major social worry. This trend has a strong connection to the financial
instability brought on by poor personal money management. Targeted interventions are
becoming more and more necessary as students learn to manage the complexity of
personal finance. These interventions should improve students’ financial literacy and
encourage thrifty spending. Early resolution of these issues is essential for both individual
financial security and the reduction of more general societal issues related to financial
hardship among the younger population.

According to Money…, (2018). Spending Behavior Spending habits are defined as habits that are
inherited through influence in terms of managing finances, such as how people tend to spend or save.
There are many major factors that affect the way people manage their finances. Some of these factors
include parents, culture, and religion, all of which contribute to the way a person spends his or her
finances. Some of these are parents, guardians, and/or any other influential people. This is because
people tend to view them as role models, giving their mindsets the idea that the way parents spend
should also be the way they spend.

According to Sekar & Go…, (2015). The spending behavior is known to be influenced by financial
attitude, which refers to the opinion of an individual about the proposed financial planning and the
belief on the inclination towards saving money.
 According to Pratap…, (2017). The adult people, however, prefer being brand loyal and choose
brands out of their preferences. It implies that age affects the preferences, wisdom, experience, and
spending capabilities of people, thus also affects spending habits. As people grow, their needs change.
Buying patterns also come to similar changes. Consumers make their adjustments and decision-making
process based on the previous experiences of the same type. Age brings changes to people's lifestyle and
behavior. With it, their needs, personal values, and preferences of brands and products also change.

According to Cussen…, (2019). Most of the Millennials or the generation Y wants to have the same
clothes, bags, shoes, cars and technological gadgets as their friends. Moreover, studies show that young
people define, being financially stable means paying all bills. Older adults appear to be interested in
using new technologies. As they encounter these evolving modern technologies, they may be vulnerable
to fraudulent marketing practices. However, studies show that older consumers tend to have more
excellent persuasion knowledge than younger adults from their experience. These imply that they are
well-informed of the tactics and methods of resisting persuasion attempts. Spending Behavior and Sex
The process of decision making is one of the most complex mechanisms of human thinking.

According to Iak…, Nihar…, & Lah…, (2017). Gender is the primary factor out of all the other factors that
affect consumer purchasing behavior. When gender differs, the perception of consuming the product is
different as well. Men and women tend to have different choices while shopping because of the
difference in their upbringing and socialization. Additionally, they have stated that women are more
internally focused whereas men ought to be externally focused.

Review of Related Studies

According to Research Publish, Abawag, et al…, (2019). The paper stated that the spending behavior
of the students is not solely affected by their course as there are other factors that contribute to the
differences of the way they spend which includes the demographic profiles of the students Abawag, et
al. 2019. The aforementioned study discussed the relationship between spending behavior and the
respected population sample, which are the business management students of University of Saint Louis
Tuguegarao City, which this study also aims to explore. While the aforementioned study focuses on a
single demographic profile, this study will explore other demographic profiles such as age, sex, and
ethnicity.

According to Research Publish, Nurdian S…, Lyna L…, & Jariyah (2017). This research aimed to identify
the effects of financial literacy and financial confidence on financial behavior. As for the results, this
research found that financial literacy and perceived financial confidence has a direct effect on financial
behavior. The higher the level of knowledge of students, the more they improve their financial behavior.
They are confident that they can create the best financial investments. In addition, their scheduled
investments in the future are anticipated to gain enormous income and thus determine their financial
behavior. This research has a similarity to the context of the study in which students are considered as
the respondents. While this study focuses on financial literacy, it can support in interpreting the data
gathered in the survey, particularly the spending behavior with regards to problems encountered on
spending practices.

According to Research Publish, Iftikhar, Hussain, Kahn, & Iiyas, (2013). The relationship between
status, education, employment, and earnings is examined, which in turn has an impact on the social class
and depicts the spending behavior of consumers. As a result of this study, social class is proven to affect
the spending habits of the consumers. Individual purchase choices are directly influenced by the social
class to which they belong. Social class dimensions such as income, status, employment and completion
of education have a direct effect on how a person spends his money. The higher a person's earnings are,
the greater his ability to spend additional money on comfort and luxury goods in order to raise his living
standards. The social class supports the behaviors that people adopt when buying. Marketers target
their audience depending on their social class and purchasing behavior of that particular class. The
aforementioned study discussed the relationship between social class and spending behavior, which this
study also aims to explore.

According to Research Publish Benjamin T…, Monique V.M…, and Eva Z.M…, (2018). It is stated that
Consumers take financially irresponsible decisions when they buy products that they cannot afford. They
pose that online buying, in particular, has a low associated "pain of paying" and therefore carries a
higher risk of irresponsible spending. The study is about the effectiveness of warning during online
payments and triggering responsible decision making. The growth of online shopping poses further
challenges to manage our finances well. Warnings at the time of payment are effective in reducing
irresponsible purchases. Warnings highlighting a severe consequence are most active, reducing the
purchase ratio by 39 percentage points, or 78%. People who consider themselves to be less financially
capable appear less affected by the warnings. The most effective warnings are associated with a more
pronounced negative emotional response.
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Henry, Weber, Bona & Yarbrough (2019 -2018). The Level of Spending Habits Among Accountancy,
Business, and Management (ABM) Students.

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%3DTHE_RELATIONSHIP_BETWEEN_THE_FINANCIAL_L.pdf&Expires=1702781894&Signature=Q3t2g67K
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Benjamin Timmermans, Monique van Maare, and Eva Zinger-Mityok (2018). The Effect of Warnings on
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Iftikhar, Hussain, Kahn, & Iiyas, (2013). Social class is a myth or reality in buying behavior
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