TITLE:

“THE EFFECTS OF FINANCIAL EDUCATION ON THE SPENDING HABITS OF SENIOR

HIGH SCHOOL STUDENTS IN PERPETUAL HELP COLLEGE OF MANILA”

A Quantitative Research presented to the

Grade 12 ABM Strand of the Senior High School of
Perpetual Help College of Manila

_____________________________________

Submitted By: GROUP 4

Belmonte, Divine Grace

Dalistan, Kriz Anne
Dioso, Treshia Mae
Eraga, Curt Bryan
Masangkay, Rianne Monica
Pangonotan, Kate
Tan, Raffy

12ABM - JADE
_______________________________________________

Mr. Charyll John Yambao

Research in Daily Life 2
Subject Teacher
 CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDIES

In this chapter, it presents other existing related literature that has a significant role and is beneficial

in understanding and specifically evaluating the effects of financial education on the spending

habits of senior high schools students in Perpetual Help College of Manila.

International Literature

According to Rahma, Susanti, Pongoh, et. al. (2021) Most students do not have enough

knowledge of personal finance, as shown by the fact that they cannot handle many currencies or

properly manage money. Even students studying economics know a lot of theories, but they often

struggle to use that knowledge in real life, which can lead to financial difficulties can be seen in

According to Rahma, Susanti, Pongoh, et. al. (2021) Emotional spending, like buying things to

feel better, can make it harder to make good financial choices and shows the need for being aware

of spending habits. Several factors affect financial literacy, including how much parents are

involved, which is important for helping kids learn about managing money.

According to Omakhanlen, Lyika, Chimezie et. al (2021). The data and literature make it clear

that financial literacy is essential for the efficient administration of one's financial resources for

one's wellness, both during active employment and in retirement. (Omakhanlen, Lyika,
Chimezie et. al, 2021) The best path to financial independence is to acquire the information,

expertise,

abilities, and capacity needed to plan, coordinate, and oversee financial matters. A person who is

well-versed in finance may plan and handle their finances sensibly and avoid financial crises like

bankruptcy and excessive debt.

According to Bona, Mulyani, and Manchanda et. al. (2023) The way young people manage their

spending affects their future financial status, as good spending habits are crucial for financial

success, and students' spending habits are greatly influenced by their family background. It

discusses how students think about money and how those feelings influence their spending habits,

students' spending trend nowadays are reflected to the changes of technology advancement and

their lifestyles. It prefer spending on material goods instead of prioritizing their saving for

future and they are often see money as a way to show power and control, it use it to impress other

people or to feel less stressed. (Bona, Mulyani, and Manchanda et. al, 2023)

In the study by Indriyani, Khaidarsyah, Haruna et al. (2023), The influence of lifestyle, self-

control, and peer conformity on consumptive behavior using the Theory of Planned Behavior

(TPB) as the underlying framework. The study concluded that lifestyle has a significant positive

impact on consumptive behavior. This is supported by the fact that individuals' behaviors,

subjective norms, and perceptions shape their intentions and actions, aligning with the TPB.

Respondents' habits, such as spending time shopping and adhering to fashion trends, reflect a
lifestyle that promotes consumptive behavior. The findings highlight the need for students to

minimize hedonic behaviors, such as excessive shopping, and prioritize purchases based on

necessity rather than desire. (Indriyani, Khaidarsyah, Haruna et al, 2023)

An international article by Ahmad, Hamat, Alias et al. (2024) The results indicate that there is a

favorable relationship between UiTM students' spending patterns and their degree of financial

literacy. This implies that students are more likely to make wise financial decisions as they become

more knowledgeable about financial issues. This result emphasizes how important it is to

incorporate financial education within UiTM's curriculum in order to provide students the tools

they need to handle their money wisely. UiTM can empower students to make well-informed

financial decisions that support their overall financial well-being during and beyond their academic

endeavors by improving their financial literacy. Therefore, it is recommended that future scholars

delve deeper into the concepts and ideas discussed in this work. Researchers studying this topic

should include more independent variables in their studies because there are a lot of variables that

can affect students' spending habits. (Ahmad, Hamat, Alias et al. 2024)

Local Literature

According to Jabar and Delayco (2021), this study investigates the link between financial literacy

and impulse buying, particularly among public-school teachers in the Philippines, who are often

stereotyped as frequent borrowers due to limited income and easy access to loans. The
study aims to describe teachers’ financial literacy and examine its relationship with impulse

buying. Financial literacy is measured through two variables: ownership of financial instruments

(e.g., savings accounts, debit cards) and the use of financial records and record keeping. (Jabar

and Delayco, 2021) The study found a weak but negative correlation between impulse buying and

the use of financial records, indicating that impulse buying tends to decrease with consistent

financial record keeping. Multiple regression analysis confirmed that record keeping is a predictor

of impulse buying behavior. These findings suggest that financial literacy education should

emphasize the importance of maintaining financial records, as this practice can encourage more

thoughtful purchasing decisions and reduce impulsive spending.

According to the study of Faith Saimon M. Baer, Erick Troy S. Buladaco, Danica Kaye G.

Celo,et al.(2023), The study aims to understand The importance of financial literacy for senior

high school students in the Philippines is growing as the economy expands and changes.This study

aims to assess the impact of financial education on senior high school students in the Philippines'

financial literacy, focusing on the effects of financial education on their knowledge levels and the

development of sound financial habits.

According to Maulias, Jerol A, Abrencia, Kyla M, Amar, Charmell Nicole M, et al.(2024) This

study aims to examine the relationship between financial literacy, self-control, and financial

behavior among Senior High School students. A quantitative-correlational method was utilized.

The goal of the study was to determine the levels of financial literacy, self-control, and financial
behavior based on their respective indicators, as well as to identify which area of financial literacy

and self-control significantly influence financial behavior. The results showed that

Senior High School students demonstrated a high level of financial literacy, especially in saving,

budgeting, and investing.

In a study conducted by Roxanne S. Gonzales, Karen E. Gimena, Jhanrhey L. Paigalan,et

al.(2024), The study examines the spending and saving habits of Senior High School students.This

study utilized the combination of quantitative and qualitative research methods. Specifically,

descriptive method was used in determining the socio-demographic profile of Senior High School

students, their level of spending habits with respect to personal consumption, educational

consumption, and social consumption, and saving habits of the respondents.

In a study conducted by Roxanne S. Gonzales, Karen E. Gimena, Jhanrhey L. Paigalan,et

al.(2024), The study examines the spending and saving habits of Senior High School students.This

study utilized the combination of quantitative and qualitative research methods.

Specifically, descriptive method was used in determining the socio-demographic profile of Senior

High School students, their level of spending habits with respect to personal consumption,

educational consumption, and social consumption, and saving habits of the respondents.

The study by Suripada, Balindong, and Pailan et al. (2024) said that the strong financial literacy

helps the students to create and follow budgets, decreasing the impulsive spending and improving

financial decisions. Many students struggle to manage limited resources, leading to low savings

and credit card debt. (Suripada, Balindong, and Pailan et al, 2024) The research
suggests that improving financial literacy can enhance economic stability. It also said thay there’s

a gap in promoting wise financial choices among students, emphasizing the need for better

budgeting skills to address compulsive spending.

Synthesis of Review of Related Literature and Studies

The studies of literature that are found, whether from international or local, focus on how financial

education plays an important role in shaping an individual's spending habits and financial

management.

The studies of Rahma, Susanti, Pongoh et al. (2021) and Omakhanlen, Lyika, Chimezie et al.

(2021) both shows highlights the of lack financial management skills often leads to financial

difficulties, It this studies, It focuses on how being lack of knowledge have an negative effects to

economic. Similarly, In the study of other literature Bona, Mulyani, Manchanda et al. (2023)

said that the influence of the lifestyle, pointing out how pressuring the social media on spending

material rather that spending. It explained more in Indriyani, Khaidarsyah, Haruna et al. (2023)

said that if comes to pressured feelings, It needs the self control to stop the unnecessary spending.

Local studies from Philippines, such as Jabar and Delayco (2021) and Baer, Buladaco, Celo et

al. (2023), Emphasize the important role of financial literacy and the growing need of this

education among the students to promote the thoughtful spending.

The literature studies, both International and Local agree on the importance of education and

environment in shaping the behavior of the individuals when it comes to spending, expenses, and

other financial matters.

References:

https://www.researchgate.net/publication/347933718_Impact_of_Economic_and_Financial_Liter

acy_on_the_Spending_Behaviour_of_Selected_Public_Servants_in_Lagos_State_Nigeria

https://rsisinternational.org/journals/ijriss/articles/financial-literacy-and-self-control-as-the-

predicting-variables-to-the-financial-behavior-of-senior-high-school-students/

https://www.scribd.com/document/700339164/THE-EFFECTS-OF-FINANCIAL-LITERACY-

ON-SENIOR-HIGH-SCHOOL-STUDENTS

https://www.ijnrd.org/papers/IJNRD2405231.pdf

https://www.researchgate.net/profile/Kenneth-Pondang-

3/publication/383206321_Financial_Literacy_and_Spending_Habits_among_Senior_High_Scho

ol_Students/links/66c1a64c2ff54d6c9eda09b9/Financial-Literacy-and-Spending-Habits-among-

Senior-High-School-Students.pdf