ASSESSING INFLATION RATE IMPACT AND BUDGETING MANAGEMENT

SKILLS OF TRICYCLE DRIVERS

A Quantitative Research Present to the Faculty of

King Thomas Learning Academy Inc.

Malubago, Sipocot, Camarines Sur

In Partial Fulfillment of The Requirements for Practical Research 2

of Accountancy, Business and Management

By:

Ables, Marco Jullian

Bigtas, Geline Ashley

Canaya, Jovan III

Capio, Princes Mitch

Dioquino, Irish Kate

Malate, Archie

Ricafort, Maryleen

S/Y 2023-2024
 CHAPTER 1

INTRODUCTION

In our economy drivers play an important role in various aspects of society.

Drivers provide easy and quick transportation, they operate vehicles, such as cars, trucks,

tricycles, or buses to transport people or goods from one place to another which is

important for the functioning of our economy and daily lives. But as they hold a great

significance on our economy, drivers tend to face many challenges like high inflation

rates on fuel prices and increased prices of goods and services that challenge their

capacity to budget their daily income. One of these is the tricycle driver, a tricycle known

as a "trike" which is a three-wheeled public utility vehicle, they were self-employed

workers who provided easy and quick transportation and either rented or owned the unit.

For millions of Filipinos, tricycles are not only a popular mode of transportation

but also a source of income. They have little access to formal financial services and rely

on a tiny daily gain that they get from this job. Locally, the take-home pay of the driver

depends on how many passengers they will get, a typical take-home pay of the driver is

about P240 per day and some of them obtain their units on loan and pay monthly

amortization. Furthermore, since the prices of commodities such as gasoline and other

products like raw materials and goods in the Philippines are rising, and since that is one

of our basic commodities that is mostly utilized as an important factor to sustain the lives

of every people it has become even more difficult for them to budget their income. Every

driver wants to support and provide for their family, but they don't know what techniques

and solutions they'll need to overcome all of life's obstacles. Due to their poverty and

inability to complete their studies, some tricycle drivers choose this career. Many issues
affect the drivers, including their educational level, incentive alignment with the owners,

information accessibility, and a high level of financial necessity (Sietchiping et.al, 2012).

Most of the tricycle drivers come from different statuses in life, some are a father who

has a family to feed, and some are solely living for themselves so the effective

management of their daily income and expenses is essential to their survival particularly

this days due to the rising prices, considering they may have fewer financial resources

and may be effective to financial setbacks such as family needs or even a medical

expenses they maximize their resources, stay out of debt and establish a better income

base for themselves and for their families. They do everything they can to make their

income last enough for daily expenses and eventually attain more stable finances if they

develop good management, stick to a budget, keep track of their spending, and make wise

financial decisions. It allows an individual to create their spending plan and have enough

money for the things they need and for important things (Buchenau, 2018). Moreover,

with the constant increase in the prices of basic necessities budgeting is really important

because it is the knowledge on planning on how they will spend their money and what

they should prioritize first and to make sure that their spending is on track. It can help

them set long-term financial goals. In addition, the advantage of budgeting management

is that they can manage their money effectively, and they can learn how to save up and

invest for future purposes, With the help of this they may overcome their difficulties in

budgeting.

The aim of this study is to assess the inflation rate impact on budgeting

management among Tricycle drivers of Sipocot, Camarines Sur. This paper examines

how tricycle drivers' budgeting management skills are affected by inflation rates and the
coping mechanisms they use to deal with these difficulties. In general, this study aspires

to show the importance of tricycle drivers and how they cope and manage their finances

well.

Statement of the Problem

This study aims to determine and assess the Inflation rate impact and how

Budgeting management skills help tricycle drivers to cope with the inflation rate.

Specifically, this study seeks to answer the following questions:

1. What are the Demographic profile of tricycle drivers in terms of:

a. Age

b. Daily income

c. Status

2. What are the factors that significantly impact their ability to cope with inflation

pressures?

3. What are the common budgeting management skills employed by tricycle drivers to

manage their finances in terms of:

a. Budgeting

b. Saving

c. Investing
4. Is there a significant relationship between the Inflation rate and the budgeting

management skills among tricycle drivers?

Objectives

1. To Determine the Demographic profile of tricycle drivers in terms of:

a. Age

b. Daily income

c. Status

2. To Identify the factors that significantly impact their ability to cope with inflation

pressures.

3. To Analyze the common budgeting management skills employed by the tricycle

drivers to manage their finances in terms of:

a. Budgeting

b. Saving

c. Investing

4. To Evaluate the significant relationship between Inflation rate impact and the

Budgeting management skills among tricycle drivers.

Scope and Limitation

This study focuses on Assessing the Inflation rate impact and Budgeting

management skills of tricycle drivers. The scope of this study was the tricycle drivers
located only around Sipocot for a total of 30 tricycle drivers who will contribute to the

current study's answer. This study will be limited to tricycle drivers who experience

inflation rates and identify their budgeting management skills. Other drivers/ operators

are excluded in this study due to the study's limitations and unavoidable circumstances

that cannot be controlled by the researchers.

Significance of the study

The result of this study will be beneficial to the following entities:

Local Government. This study may serve as an eyeopener for the local

government to give appreciation and financial support in times of economic hardship

especially nowadays.

Tricycle Drivers. This study will help them to enhance their budgeting

management likewise, to enhance their financial well-being.

Commuters. This study may enlighten commuters to apprehend drivers,

understand the different situations, and be aware of what problems tricycle drivers are

facing.

Students. Through this study, they can understand and gain awareness about the

effects of the Inflation rate on the tricycle drivers, especially those students who have a

parent who are tricycle drivers.

Future Researchers. The results of this study can serve as a basis for future

studies and can serve as a review of related studies to their future research.