Chapter 1

Introduction

Background of the Study

We live in an advanced rapid changing world that having enough knowledge about

money. Our world is rapidly changing every bit and adopts to certain changes including

in the rise of the value of money in the stock market or any other establishments. Money

is tight and time is constrained, as early as now we should have at least a little bit

knowledge in handling our finances and we should be mindful of our expenses.

Accountancy students are gradually getting to be mindful of how to spend those money,

Money management is vital to the Accountancy students; it is a lesson that can be

connected to this present reality. The researchers aim to give out financial knowledge to

people especially the Accountancy students so that they would be wise in this money

controlled world by having the knowledge of how money management is done.

Researchers surveyed 320 students to know their level of financial literacy in terms

of money management, budgeting, behavior of Accountancy students towards on how

they make their financial decisions. The result shows that the students answered about

48.7% of the questions correctly. According to Opuko (2015), the students are less

knowledgeable and less in experiencing enough on how to manage properly and limit

their ability to make financial decision that more likely to have financial issues, this study

is conducted in Kumasi Metropolis in Ghana.

The fact that money plays an important role for the everyday life of every student,

it is essential to give importance or to have money management especially when you are

a student to avoid any financial issues. The study conducted in Mapua University of
Manila (2016) in Philippines states “That budgeting is a challenging task for anyone even

more so for students”. It is very important that Accountancy students should know how to

budget their money and on where they should spend their finances in order to improve

their financial situation.

According to the social weather station (SWS) survey, it showed that the people in

Davao city are known as the most literate in saving money and budgeting their finances.

Also it stated that Dabawenyos are mindful on where they spend their money and that

most of them know how to generate money and has control/limitations in their way of

spending money. Sunstar Philippines in Mindanao states “That the market industry in

Davao City is the most financial literate in the country”.

Money management is vital to everyday life of Accountancy students and they

should be mindful of everyday expenses. They should become a financial literate student

and should know the formula in saving money which is money minus savings equals

expense. Being a financial literate can give the Accountancy students the appropriate

knowledge on how to manage their money as well as their spending habits and also

having the knowledge of a financial literate can give benefits not just to oneself but also

to the society because that person/Accountancy students who is a literate can lead an

empire or community by guiding or mentoring them and producing people or Accountancy

students who already has the mindset of a financial literate individual. Another advantage

is that you will now become financially free sooner or later and can already avoid being

broke or losing too much money.

This study is very important because in this generation, schools don't usually teach

other students or they don't have it in their curriculum guide the ways or lessons on how
to spend and manage the money properly. Also this helps the people or Accountancy

students in their future in terms of having money saved, that they could use for emergency

funds and many other important expenses in terms of our needs over wants. Our world

needs more of those who has that kind of mindset for they can help in the growth of the

economy of each country and can easily adopt to certain changes that everything is

valued by money, and in the rise of inflation rates in the stock market and many more.

Purpose of the Study

The purpose of this study is to know their perspective about money management

where the students mostly spends their money that leads us to determine the factors that

can result to failure in mismanagement. To improve the knowledge on how the students

manage their money.

Theoretical Framework

This study uses theory of change as the theoretical foundation to determine the

money management of Accountancy students from selected strands in University of

Mindanao. This theory was developed by Phau and Woo (2008) and Roberts and Jones

(2001). The theory of change defines that money management plays an important role in

our lives. It helps us on how to manage our money in many ways. Modern economy is

monetary economy. Money plays a very important role in our society. Students are also

an important part of the society which means that we have a lot of needs and expenses.

Therefore, people nowadays should know how to manage their money, especially to

those Accountancy students who have hard time dealing with financial problems,

Accountancy students should practice money management for them to know and to learn

on how to use their money appropriately. In line with this, Azjen (1991), support this
theory. This it is related also to the behavior of Accountancy students which shows in our

variables such as peer pressure, compulsive buying, and anxiety that could affect the

money management of the Accountancy students in their daily lives, the behavior of

Accountancy students towards money management could also affect their financial

literacy.

A theory that supports the theory of change developed by Phau and Woo (2008)

and Roberts and Jones (2001), is the concept of Life-Cycle hypothesis. The Life-Cycle

hypothesis is an economic theory referring to the spending and saving habits of people

over the course of lifetime. This concept was developed by Franco Modiglani and his

student Richard Brumberg. This theory presumes that individuals plans on spending their

lifetime expenses. Accountancy students are prone in dealing some financial problems in

their life, especially now there’s a lot of school expenses and necessities they

encountered as a life of an Accountancy students.

Scope and Delimitation

The scope of the study involves Accountancy students towards money

management in University of Mindanao. This study will survey Accountancy students, but

due to large population of Accountancy students, the researchers cannot broadly survey

all Accountancy students from different years in University of Mindanao.

Significance of the Study

The significance of this study is to determine the money management of various

Accountancy students in the University of Mindanao. The outcome of this study will serve

as a guidance for a better decision making in managing their money in the way they spend

their money.
 This study is beneficial to the following:

The learners. who don’t know how to manage their money and spends money

excessively without plan and control.

Academic institution. to conduct programs/activities on how to budget/manage

the money properly, and that it would add up to the capacity of their knowledge.

Faculty members of the University of Mindanao. so that they would be aware

of how the Accountancy students spend and value their money.

To the parents who will have a prior knowledge that they could share to their

children for the betterment of managing and spending their money.

Definition of terms

The variables of this study are overtly used by the researchers. In connection, the

following terms used are conceptually and operationally defined to establish a common

frame of reference:

Money Management. This term refers to an activity of organizing and investing your own

or someone else's money. In an operational meaning, Accountancy students plan and

control their finances or money in an orderly way.

Financial Efficacy. It refers to individuals’ perceived ability to manage their finances. In

operational meaning, this is how Accountancy students have knowledge or ability in

managing their money and finances by themselves.

Method

This chapter will discuss the research design, presented herein the methods and

procedures conducted to describe the research design, respondents, instruments, locale,

data analysis gathering procedure, and trustworthiness of the study and ethical

considerations.

Research Design

This study used descriptive type of research. According to Cherry (2014),

descriptive research seeks to depict what already exist in a group or population.

Descriptive studies do not seek to measure the effect of the variable; they only

describe the result. In this study, the method includes collection of data in order to

test the hypothesis or to answer the questions concerning the status of the subject

of the study. Moreover, according to Valdez (2013), descriptive research is

concerned with the description of the data and characteristics about a population

and the true meaning of the data collected should be reported from the point of view of

the objectives.

The research goal is to mainly describe the variable which is the money

management of senior high school strands. Moreover, it will explain further on how

different demographic characteristics of a student’s such as age, gender, strands, and

grade level affect their money management as students.

This study will only be conducted in the University of Mindanao, Davao City

campus. The University of Mindanao is home to Davao Region’s Topnotch Certified

Public Accountants (CPA) having produced the most number of CPA Licensure

Examination Placers.

Research Subject

The primary aim of this study is to measure the money management of Accounting

students in the University of Mindanao. Our target respondents will be college students

coming from College of Accounting. In our study, this study makes used of stratified

sampling, Through Stratified sampling, we can determine our respondents’ from different

groups. In this way we can gather data based in our study. Common sampling technique

used by researchers and random or systematic samples of a predetermined size will then

have to be obtained from each stratum. The larger group in this study is the entire

population of the University of Mindanao, Matina campus, but the researchers will only

choose random students during free time from this population to represent the entirety

and be surveyed.

Research Instrument

This study will make used of thematic analysis (TA) is a popular method for

analyzing qualitative data in many disciplines and fields, and can be applied in lots of

different ways, to lots of different datasets, to address lots of different research questions.

It can be used to analyze qualitative information and to systematically gain knowledge

and empathy about a person, an interaction, a group, a situation, an organization or a

culture.
Data Gathering Procedure

The researchers followed these steps to have a smooth and effective flow before,

during and after the conduct of the study. The following are the steps in gathering the

data.

Asking permission to conduct the study. The researchers asked permission

from the principal of the University of Mindanao and also to the respondents by giving

letters to them.

Dissemination of the questionnaires. After the approval, the researchers started

to conduct the first phase of the survey at University of Mindanao and personally distribute

the questionnaires to the respondents thrice a week for 5 days.

Collection of data. The data were collected, analyzed, tallied and interpreted by

the researchers with the use of statistical tools.

Finding participants to be interviewed. Researchers chose the participants from

the first phase respondents and asked permission to them for the interview.

Interviewing and Recording of Information. The chosen participants had an in-

depth interview with open-ended questions. The researchers had a specific task to do

wherein one asked the questions while the others focused on the details of the answer

and recorded the interview using mobile phones.

Transcribing the collected information. From the recordings, the researchers

translated all the conversations they had with the participants.

Data Analysis Procedure

Responses to the questionnaire by students from different strands were

statistically and textually analyzed by the following tools:

represented in through tabulation in graphs (Manikandan, 2011). This will be used to

determine the distribution of the profile of the respondents and the different paying modes.

Thematic Analysis. It is a considerable advantage given the diversity of learning.

In qualitative research, it is essential to have thorough understanding and the thematic

analysis gives viewpoints about the topic (Braun & Clarke, 2006).

Trustworthiness of the Study

Trustworthiness. A qualitative study can be increase by maintaining the high

credibility and objectivity that can make the research paper trustworthy. It is a

demonstration that the evidence for the results reported is sound and when the argument

made based on the result is strong.

Credibility. The researchers collected the data precisely as so to give knowledge

to the readers and will engage in triangulation of data to assure the validity as well as the

credibility of the research.

Transferability. The explanation regarding the research issue will be detailed by

the researchers for it to be easily transferable in other text such as in quantitative form to

be able to generalize the findings to a large group of population. With that, the readers

can easily comprehend the research problem accordingly.

Confirmability. The researchers used the technique of audit trial to detail the

process of data collection, data analysis and the interpretation of data and record the

topics during the data collection.

Ethics are the norms for conduct to discern what is right or wrong. In research,

ethical considerations are very essential. It avoids falsifying information hence, promotes

the truth and genuine knowledge which is the foremost goal when doing research. The

following are to be considered as the ethical considerations of the research;

Social Value. Every researcher must possess mutual respect, honesty, and

accountability to generate an environment of trust with co-researchers and school

especially the participants in deliberation of questions or data-sharing. Research must be

done with social values ethically and accordingly while contributing to the promotion of

welfare of people and community.

Informed Consent Form. Before conducting a survey, the researchers convey a

precede consent at the top of the questionnaire where it contains the research title and

other information that the participants need to know in order to grant our permission. The

researchers gave enough time to fully answer the questionnaire at participant's comfort.

The researchers conducted a survey after the research facilitator granted the permission.

Privacy and Confidentiality. The researchers guaranteed the participants to not

broadcast the identities or background information and must be kept privately. This serves

as respectability to safeguard the privacy of the participants.

Transparency. Transparency entails in all aspects of research that involves the

divulgence of the results. Therefore, the researchers hold a responsibility to disclose any

data that may influence the research output.

PERSONAL DETAILS

Birthdate: December 31, 2000

Religion: Roman Catholic

Nationality: Filipino

Address: 568-A Fatima St. Ddf village, Mandug Davao City

Phone: 09755898408

Email: [email protected]

PERSONAL BACKGROUND

Mother: Jovita G. Darunday

Father: Roel L. Darunday

Siblings: Roel Dyniel G. Darunday, Rian Denise G. Darunday

EDUCATION

Primary Education: Mandug Christian Development and Training Center

Junior High School: University of Mindanao

Senior High School: University of Mindanao

PERSONAL DETAILS

Birthdate: September 28, 2000

Religion: Roman Catholic

Nationality: Filipino

Address: San Gabriel st. Buhangin Davao City

Phone: 09153593859

Email: [email protected]

PERSONAL BACKGROUND

Mother: Verna P. Lagordo

Father: Rey A. Jaya

EDUCATION

Primary Education: Kapitan Tomas Monteverde Sr. Central Elementary School (2007-2013)

Junior High School: Davao City National High School (2013-2017)

Senior High School: University of Mindanao (2017-2019)

SKILL

Dancing Skills

Decision Making Skill

ACHIEVEMENTS AND AFFILIATIONS

Member of Accountancy Club

PERSONAL DETAILS

Birthdate: September 23, 1999

Religion: Roman Catholic

Nationality: Filipino

Address: Pagatpat St New Matina Davao City

Phone: 09777297366

Email: [email protected]

PERSONAL BACKGROUND

Mother: Salvacion M, Manuawan

Father: Esmeraldo D. Mendiola

Siblings: Lyca Mendiola

EDUCATION

Primary Education: Tecarro College Foundation Inc. (2007-2013)

Junior High School: Tecarro College Foundation Inc. (2013-2017)

Senior High School: University of Mindanao (2017-2019)

SKILLS

Verbal Communication skill

Creative Thinking skill

ACHIEVEMENTS AND AFFILIATIONS

Member of Accountancy Club

A Research Paper
Presented to the Faculty of College of Accounting Department
University of Mindanao
Matina, Davao City

In Partial Fulfillment of the Requirements

Darunday, Rovi Danica G.

October 2019