D MTDJ PR2 2024

La Consolacion College - Liloan, Cebu, Inc.
Accountancy, Business and Management

Authors:
CAÑETE, VIVIENNE ANGELIQUE C.
YGOÑA, CARLA MICHELLE D.
GIMENEZ, JOHN NIÑO L.
ALAYON, ABIGAIL F.
PUEBLA, DEBBIE M.
RELATIONSHIP OF SPENDING HABIT AND FINANCIAL MANAGEMENT

SKILL AMONG GRADE 12 STUDENTS IN A PRIVATE INSTITUTION
Research Adviser:
MS. NIKKI MARIE L. SANCHEZ
ACCOUNTANCY, BUSINESS AND MANAGEMENT
Date of Submission: September 30, 2024

Permission is given for the following people to have access to this research study
Available to the general public Yes
Available only after consultation with author/research adviser Yes
Available only to those bound by confidentiality agreement Yes
Student’s Signature
Research Adviser’s Signature
LA CONSOLACION COLLEGE, LILOAN, CEBU, INC.
(Formerly Holy Child School)
Poblacion, Liloan, Cebu 6002 Philippines

CHAPTER 1
The Problem and Its Background
Introduction
In recent years, there has been a growing emphasis on understanding how

students can effectively manage their finances. As young adults take on the responsibility
of managing their own money, it has become evident that understanding their spending
habits play a significant role in their financial management skills. Research has shown
that the teenagers’ spending habits and lack of financial knowledge can lead to costly
mistakes (Bona, 2018). Additionally, Rahma and Susanti (2022) have also pointed out
that many students struggle to manage different currencies and handle money adeptly.
These trends show the pressing need to investigate the relationship between students’
spending habits and financial management skills to address the emerging challenges in
this area.
A study in the USA found that 26.5% of college students have a negative
impression of money, often dealing with minimal funds, reckless spending, and
significant debt. Many students struggle to pay for their education, leading to
stress-related health issues and difficulties with graduating, finding employment, and
planning for retirement. Having financial knowledge is essential for effectively managing
personal and work-life finances (Widener, 2017). Research has shown that financial
knowledge significantly impacts decision-making (Azmi & Ramakrishnan, 2018). In
Bacolod City, Philippines, a study on the financial literacy of senior high school students
revealed a gender-based difference. The study found that female students have lower
financial knowledge and savings practices compared to male students. The computed
p-value is 0.047, indicating a significant difference in the level of financial literacy when
grouped according to sex (Binobo, Salazar, Polidario, Somcio, & Sosuntong, 2019).

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Despite extensive research, there is still a noticeable gap in understanding the relationship
between spending habits and financial management skills among students.
The purpose of this study is to evaluate the relationship between spending habit
and financial management skill based on the gender of the grade 12 senior high school
students in a private institution in Poblacion Liloan, Cebu. The study seeks to provide
valuable insights and answers to the fundamental questions in order to better understand
the behavior of the students.
The findings of this study can contribute significantly to the existing literature by
providing new information. Examining the association between spending habits and
financial management skills can assist to improve the financial circumstances of not only
students, but also individuals who are struggling to manage their finances. This study
might also serve as a reference for other researchers who want to conduct a thorough
study. Several research on spending habits and financial management skills have already
been carried out. However, it was carried out in different geographical locations that may
differ greatly from our chosen area.

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Review of Related Literature and Studies
Impulsive Behavior
In recent years, the study of impulsive behavior has been marked by significant
changes, mainly in decision-making process and consequently in the influences of
purchase intention. The markets are different and characterized by an increased
competition, as well a constant innovation in products and services available and a
greater number of companies in the same market. In this scenario it is essential to know
the consumer well (Varadarajan, 2020). It is through the analysis of the factors that have a
direct impact on consumer behavior that it is possible to innovate and meet their
expectations.
Impulse buying, also referred to as impulsive buying or impulsive purchase

(Efendi et al., 2019) is generally defined as the behavior that involves the purchase of
items that are not pre contemplated or are unplanned. However, several scholars see this
definition as being rather "simplistic.” To address this limitation, scholars argue that
while it is unplanned, impulse buying is an agentic decision that can be influenced by
external stimuli, including market appeal. The classic work of Applebaum defines this as
"buying which presumably was not planned by the customer before entering a store, but
which resulted from a stimulus created by a sales promotional device in the store."
The study investigates how impulsive buying affects the connection between
financial management skills and saving behavior. It found that while people who manage
their finances well typically have better savings habits, their tendency to make impulsive
purchases can weaken this link. In other words, even if someone is good at budgeting and
planning their finances, the urge to buy on impulse can undermine their ability to save
money effectively. Impulse buying acts as a disruptive factor in managing finances,
which means that, despite having good financial discipline, frequent unplanned purchases
can prevent individuals from reaching their savings goals. This shows that good financial

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habits alone might not be enough if people don’t manage their impulsive buying
tendencies.
Impulsive buying behavior (IBB) is an irrational buying behavior, carried out

quickly and unplanned and followed by emotional impulses and conflicts of mind. In
other words, IBB is behavior that is carried out without consideration and accompanied
by a strong emotional response. IBB is also defined as an unexpected purchase, not
reflective, spontaneous, accompanied by a sudden desire to purchase a certain product,
and realized in a reaction to a stimulus from the product. The desire to buy is so strong
that it ignores the possibility of negative consequences. There are several factors that
trigger IBB such as marketing environment, situational variables (availability of time and
money), and personal variables (mood, self-identity, personality, and educational
experience).
The importance of impulse buying in consumer behavior has been studied since
the 1940's, since it represents between 40.0 and 80.0% of all purchases. This type of
purchase obeys non-rational reasons that are characterized by the sudden appearance and
the (in) satisfaction between the act of buying and the results obtained. Aragoncillo and
Orús (2018) also say that a considerable percentage of sales comes from purchases that
are not planned and do not correspond to the intended products before entering the store.
According to Burton et al. (2018), impulse purchases occur when there is a sudden and
strong emotional desire, which arises from a reactive behavior that is characterized by
low cognitive control.
Compulsive Behavior
Compulsive buying behavior (CBB), otherwise known as shopping addiction,

pathological buying or compulsive buying disorder, is a mental health condition
characterized by the persistent, excessive, impulsive, and uncontrollable purchase of
products in spite of severe psychological, social, occupational, financial consequences

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(Müller et al., 2015). Nowadays, students tend to do shopping, spending and buying
whatever they find despite their earning capabilities. They wouldn't consider their needs
and wants, they would rather spend and waste their money until they feel satisfaction
within them. It has become their way of dealing with their negative stresses . O'Guinn et
al., (2016) suggested that compulsive buying is an expression of a category of behavior
called compulsive consumption. O'Guinn and Faber describe actors who are involved in
compulsive buying activities as individuals who buy something but not with the aim of
obtaining utilities or services from what is purchased, but to achieve satisfaction through
the buying process itself. Compulsive Buying is driven by psychological factors such as
low levels of self-esteem and negative emotions, but it can also cause financial problems
which can also be related to the psychological pressure of the perpetrator (Helen, 2019).
Compulsive buying is not just a stronger version of impulsive buying (Pradhan et al.,
2018). It is supported by low self-esteem, internet addiction, loneliness and anxiety. It is
also used as a mechanism of negative coping (Zheng et al., 2020).
Furthermore, financial management skills which includes the process of budgeting,

saving, investing, issuing and monitoring the use of money is one of the factors that can
influence compulsive buying behavior. "Money management was a significant predictor
of increased wealth, as well as decreased debt and compulsive buying" (Donnelly et al.,
2012). Many factors can affect individual financial management abilities, one of which is
self-control. Individuals such as students who have the ability to manage their finances
will experience higher financial satisfaction, relatively low levels of financial stress and
compulsive buying. Individuals with a high level of financial management behavior will
think again when they want to make a purchasing decision so that the purchase of goods
or services is right as needed.

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Budgeting
Budgeting is essential for someone's financial security, helping to ensure people

can pay everyday expenses such as lease, education cost, pell grants, debt, and leisure.
According to MyGreat Lakes (2015), it is a proactive approach to financial organization,
which 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.
According student behavior is a simple but effective way for students to reduce
their spending and improve their budgeting (IJCRT, 2020). Students can accomplish this
by creating a behavior chart. According to the International Journal of Creative Research
Thoughts (IJCRT),this behavior chart is a tool for keeping a consistent record of the
students' behavior and creating reinforcement for the same kind of behavior. When it
comes to handling and adjusting student behaviors, these charts are invaluable. It is
critical that university students learn about finance and budgeting throughout their
adolescence phase, as this is their best chance of success in later life. However, building a
proper budgeting knowledge base is insufficient. Consistent success necessitates a
healthy and positive attitude and supportive parents who encourage a responsible
financial attitude.
According to Deloso et al. (2019), This study aims to identify how students
manage their finances in a very effective way. Budgeting allowances is one of the
problems of most students; some tend to manage their allowances and some do not. The
essence of this research is to open the minds of the students about the vital role of having
budgeting strategies in their daily financial management.
As stated by Dela Peña et al. (2019), Budgeting is important to the students'

financial stability, ensuring the students to pay common expenses at school. Smart goals
are specific enough to suggest action, knowing that having excess money is important to

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have something in an instant. Budgeting strategies will cover unusual expenses and
changes that may happen while the students are at school. Money is involved in many
things and situations around the world. Every person had experienced, at least once, to
see and to hold money, so it is a big part of everyone's life. In the form of a metal coin or
a piece of paper, people value this thing to sustain their everyday needs like food, water,
and clothes (Martinico, 2019).
According to the study of Boral et. al (2020), some students find it difficult to
budget their Money for schoolwork because of some unexpected school or miscellaneous
expenses needed in their school, the fees are unexpected resulting in them not being able
to include that expense in their initial budget plan. Another respondent also shared that
having many school fees as a graduating student lead to the respondent's budget plan
being disregarded.The students were having this problem because their allowances are
not enough for the school fees. Their allowance is enough for their food and
transportation but not enough for the required school fees. They also have the problem of
impulsive buying because of their materialistic attitudes and buying unnecessary items
without thinking about their needs.
Purchasing
According to Kotler and Armstrong (2018), purchasing decisions are

influenced by unforeseen circumstances. Expected revenue, expected costs, and
anticipated benefits of a product are all factors that consumers can use to formulate their
purchase intentions. Sudaryono defines purchasing decisions as the act of selecting one
option from two or more. In other words, the person taking on the problem must be able
to choose one option from a number of others. A person is in a position to make a
purchase decision when presented with two options to buy or not to buy and then decides
to buy.

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Purchasing is the process of acquiring materials, components, and services from

another firm. Professional purchasing addresses the following main rights: purchase of
the right material,component or service, in the right quantity and quality, at the right
place and time. Purchasing Gives the foundation of supply management, which tends to
have a wider scope of activities (Abdul et al., 2020).
Guo et al. (2020) found pleasant online customer reviews to lead to a higher
purchase likelihood than unpleasant ones. This confirms hypothesis one from another
side. The product selected in our experiment is a mobile phone, which is not only a
utilitarian product but also a hedonic one. It can be used to make a phone call or watch
videos, depending on the user’s demands.

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Significance of the Study

Students. The review improves financial literacy by including lessons on debt
management, loan repayment, and savings strategy among others to enable you to make
better financial choices. This encourages them to be aware of what, when, and where they
spend their money wisely and eventually provide confidence in managing personal
finances.
Parents. They can provide more focused direction and assistance to their children
financially by developing a better awareness of their financial needs and behaviors.
Better family discussions about money management can be made easier by this increased
awareness, which enables parents to carry out more successful financial planning
techniques at home. As a result, this creates a safe environment that improves their child's
financial literacy and stability in the future.
Teachers. The study contributes towards making teaching more effective by
allowing the creation of such a curriculum that not only covers real-life financial matters
but also meets the requirements of the students. This means more interesting and relevant
financial literacy lessons. In addition, the study can offer teachers a way to direct
essential financial skills into the hands of their students according to what they will really
need and benefit from.
School Administrators. This study provides valuable insights into Grade 12
students' money habits and management abilities, allowing school administrators to
improve curriculum, develop financial literacy policies, and strategically target students'
financial actions, thereby enhancing resource utilization and promoting responsible
spending among students.
Researchers. This study enhances financial literacy and spending habits among
high school students, offering new data and insights for future research. It also presents

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opportunities for interdisciplinary research, combining economics, education,

psychology, and sociology.
Future researchers. This study offers a foundation for further research on

financial management skills in students, allowing for further investigation into variables
like family background and peer pressure. It also enables comparative studies over time.

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Theoretical Framework
Figure 1. Theoretical Framework
The study is anchored in Self-Regulation Theory (Bandura, 1991), which suggests

that individuals' financial management practices are shaped by their ability to regulate
thoughts, emotions, and actions in pursuit of long-term goals. Financial behaviors such as
budgeting, purchasing, and spending habits are viewed as products of self-regulation.
Compulsive and impulsive buying behaviors arise when individuals struggle to
effectively manage their desires or emotions, while successful budgeting and responsible
purchasing decisions are seen as the outcomes of strong self-regulatory mechanisms.

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Self-Regulation Theory emphasizes the importance of individuals controlling

their thoughts, emotions, and actions to achieve specific goals. In the context of financial
management, students regulate their spending habits by setting financial goals,
monitoring their expenses, and adjusting their behaviors accordingly. For example,
students may set a budget (goal-setting) and then track their purchases (monitoring) to
ensure they stay within that budget. Effective self-regulation helps students resist
compulsive and impulsive behavior, fostering healthier financial habits. Additionally,
strategies like saving or adhering to a budget are key self-regulatory practices that can be
developed and strengthened over time.
The independent variables in this study are compulsive behavior and impulsive
behavior. These variables are seen as affecting students' financial management skills
through mechanisms described in Self-Regulation Theory. Compulsive behavior involves
a lack of self-control, leading to excessive and unplanned spending that can strain
financial resources and hinder effective budgeting. Impulsive behavior involves making
spontaneous purchases without considering long-term financial goals, disrupting financial
planning. These spending habits may negatively impact students' ability to budget
effectively and make informed purchasing decisions. By examining these variables within
the framework of Self-Regulation Theory, this study seeks to identify the relationship
between spending habits and financial management skills, clarifying how these behaviors
interact and influence students' overall financial well-being.

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Statement of the Problem

This study aims to determine the relationship between spending habits and
financial management skills of grade 12 students in a designated private institution.
Specifically, the study seeks to answer the following questions:

1. What is the demographic profile of the respondents in terms of sex?
2. What are the spending habits of Grade 12 students?
2.1 Impulsive behavior
2.2 Compulsive behavior
3. What are the financial management skills of Grade 12 students in terms of;
3.1 Budgeting
3.2 Purchasing
4. Is there a relationship between spending habits and financial management skills of
Grade 12 students?
5. Is there a significant relationship between spending habit and:
5.1 Male
5.2 Female
Hypothesis
This study will be tested at a 0.05 level of significance.
Ho = Spending habits, such as compulsive buying and impulsive buying, do not
have a significant relationship in terms of financial management skills (budgeting and
purchasing) among Grade 12 students, as perceived by the respondents.

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Definition of Terms
The following terms and definitions were defined conceptually and operationally.
Spending Habits. Spending habits in this study refer to the patterns of behavior
that individuals exhibit in how they allocate their money for various expenditures,
particularly compulsive and impulsive buying. According to a study by Dittmar (2020),
understanding spending habits is critical for individuals seeking to improve their financial
literacy and manage their financial resources effectively. Dittmar emphasizes that
spending habits significantly impact overall financial well-being and decision-making.
Compulsive Behavior. Compulsive buying behavior in this study refers to
excessive, uncontrollable spending behavior driven by emotional or psychological needs,
often resulting in financial strain. Research by Faber and O'Guinn (2019) identifies
compulsive buying as a behavioral addiction that can lead to detrimental financial
consequences and emotional distress, significantly affecting individuals' financial health.
Impulsive Behavior. Impulsive buying behavior in this study refers to unplanned,
spontaneous purchasing decisions influenced by emotions or external triggers, without
consideration of long-term financial consequences. Research by Rook (2021) suggests
that impulsive buying is often triggered by emotional states and environmental cues,
leading to financial instability and regret for many consumers.
Financial Management Skills. Financial management skills in this study refer to
the ability to effectively manage one’s financial resources, including planning, budgeting,
and making informed purchasing decisions. According to a study by Lusardi and Mitchell
(2019), possessing strong financial management skills is crucial for young adults to
navigate financial challenges and achieve long-term economic stability.
Budgeting. Budgeting in this study refers to the process of creating and adhering
to a financial plan to allocate resources effectively between expenses and savings.
According to a study by Sharma et al. (2020), effective budgeting practices help
individuals manage their finances, minimize debt, and achieve their financial goals,
thereby enhancing overall financial stability.

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Purchasing. Purchasing in this study refers to the act of making informed

decisions when acquiring goods or services, taking into account financial resources and
long-term goals. A study conducted by Solomon (2019) emphasizes the importance of
informed purchasing decisions, noting that consumers equipped with financial literacy
are more likely to make sound purchasing choices that contribute to their overall financial
well-being.

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Scope and Delimitations of the Study

This study aims to investigate the relationship between the spending habits of
Grade 12 students in a private institution and their financial management skills.
Specifically, it will focus on two types of spending habits: compulsive buying and
impulsive buying. Compulsive buying involves excessive spending driven by emotional
factors, while impulsive buying involves spontaneous purchases made without prior
consideration of financial consequences. The study will also examine how these spending
habits relate to financial management skills, such as budgeting and informed purchasing.
Budgeting is the ability to create and adhere to a financial plan, ensuring that resources
are allocated effectively for expenses and savings. Informed purchasing refers to making
thoughtful decisions when buying goods or services, considering financial goals and
priorities. The study will be conducted with Grade 12 students in a private institution
during the 2023-2024 academic year, and data will be collected through self-reported
surveys.
The delimitations of this study establish a framework to narrow the focus and set
boundaries for the research. The study will focus exclusively on Grade 12 students from a
specific private institution. As a result, the findings may not be generalizable to other
educational settings or grade levels. Moreover, the research will only examine
compulsive and impulsive buying as primary spending habits, excluding other financial
behaviors such as saving, investing, and debt management. Financial management skills
will be limited to budgeting and purchasing, omitting other aspects of financial literacy
such as long-term financial planning or credit management. Additionally, the study will
rely on self-reported data, potentially introducing biases including social desirability and
recall bias, which could affect the accuracy of responses. Finally, the study will be
conducted within the academic year 2024-2025, limiting the ability to observe long-term
changes in students' financial behaviors. These delimitations are meant to focus the study
on the specific relationships between spending habits and financial management skills
within the selected population.

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Ethical Consideration
The researchers prioritize ethical considerations to protect the respondents' rights
and well-being while adhering to the Data Privacy Act. The researchers guarantee that
all respondents, especially minors are provided with informed consent. Consent forms
outline the study's objective, procedures, potential dangers, and the voluntary nature of
participation, allowing respondents to make informed decisions regarding their
involvement. Confidentiality measures are tightly enforced, with all data collected
anonymously and the access limited to authorized people, thereby protecting respondents
profiles and personal information.
Vulnerable populations, such as those with learning abilities or from
underprivileged backgrounds, receive special attention. The researchers take extra
precautions to ensure voluntary participation and preserve the participants' rights in the
study. The researchers carefully consider and mitigate any potential risks of harm to
respondents, ensuring that respondents are informed of their right to withdraw from the
study at any time without repercussion and provide support resources if needed. The
researchers carefully examine and reduce any potential hazards to respondents, ensuring
that respondents are aware of their right to withdraw from the study at any time without
consequence, and providing support services if needed.
To maintain research integrity, the researchers disclose any potential conflicts of
interest and take steps to ensure impartiality and objectivity in data collection and
analysis. The researchers follow tight data management procedures, including security
standards to prevent unauthorized access or publication of sensitive information.
Furthermore, the researchers seek ethics evaluation and permission from relevant
institutional review boards, which ensures that the study adheres to ethical standards and
regulations. The researchers hope to uphold the concepts of honesty, respect, and
accountability by incorporating these ethical considerations into their research,
establishing trust and credibility in the process.
CHAPTER 2
Methodology of the Study
This chapter describes the research methodologies used, including information
about the participants, tools, data collection process, and statistical analysis methods. The
chapter is divided into several sections: Methods and Techniques Used, Respondents of
the Study, Instrument of the Study, Data Gathering Procedure, and Data Processing and
Statistical Treatment.
Methods and Techniques Used
This study employs a descriptive correlational method and a quantitative research

design to explore the relationship between spending habits and financial management
skills among Grade 12 students. Descriptive correlation method is a type of research
design that tries to explain the relationship between two or more variables without
making any claims about cause and effect. Quantitative research design aims to collect
and analyze numerical data to answer research questions and test hypotheses. The chosen
design allows for a comprehensive exploration of the connections between the variables.
To ensure the accuracy and reliability of the study, the researchers took several measures,
including piloting the questionnaire to refine questions and provide clear instructions.
Furthermore, great emphasis was placed on maintaining participant confidentiality and
ethical treatment during the data collection process.
Respondents of the Study
The researchers selected one hundred thirty (130) Grade 12 students from a
private institution in Poblacion, Liloan, Cebu using Slovin's formula. These students were
selected using convenience sampling, which is a method based on their accessibility. This
approach was chosen due to time constraints and the availability of respondents.

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Instrument of the Study
A standardized questionnaire was utilized to gather data on compulsive buying,

impulsive buying, budgeting practices, and purchasing behaviors. The questionnaire used
in this study was adapted from previous works by Edwards (1993), Fisher (1995), Moore
(2003), Nik Lee and Salamon (2012), and Wahid and Zahari (2020). To ensure the
reliability of the questionnaire, a pilot test was conducted with a group of students, and
adjustments were made based on their feedback. The final version of the questionnaire
was then distributed to all Grade 12 students at a private institution using Google Forms
for data collection. Participants were informed about the purpose of the study, and ethical
approval was obtained to maintain confidentiality and data integrity.
Data Gathering Procedure
In this study, the researcher obtained approval for the study by submitting a
transmittal letter to a private institution. The principal of the school was duly informed
about the study being conducted on the school property. The researchers obtained
approval from their teachers to ensure that the study complied with institutional
guidelines. Subsequently, a standardized questionnaire was administered to collect data
from the participants. The researchers approached selected participants, explained the
study's purpose, and obtained their informed consent, emphasizing their right to withdraw
without consequences. Challenges included differing levels of willingness to participate
among students, which were addressed by ensuring confidentiality and emphasizing the
voluntary nature of participation.

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Statistical Treatment of Data
Once all of the data has been acquired, the researchers will maintain their
objectivity and guarantee that all of the respondent's responses are written accurately. The
collected data will be analyzed using the following statistical methods.
1. Descriptive Statistics
● Frequency - This shows how frequently something appears in the data. It will be
used to determine the number of male and female students in each section.
● Percentage - This denotes how much of something is represented. It will be used
to determine the proportion of male and female students. It has the following
formula.
Where;
P = Percentage
f = Frequency
N = Number of respondents who become the sample
● Mean - This determines the average value of a set of numbers. It will be used to
evaluate the students' financial management skills. The formula is given below:
Where;
x̅ = sample mean
x = given data
n = sample size
● Standard Deviation - This measures the dispersion of the data points around the
mean. It illustrates how much data points differ from the mean. This will be used

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to determine how much the responses of grade 12 students vary from the average
mean. It utilizes the formula below:
Where;
s = sample standard deviation
x = given data
x̅ = sample mean
n = sample size
2. Inferential Statistics
● Regression analysis - This helps to examine the relationship between two or more
variables of interest. In this study simple linear regression analysis will be
utilized, it is a tool that helps to assess the correlation between a dependent
variable and an independent variable. It will be used to determine the relationship
between the spending habits and financial management skills of grade 12
students. The formula is given below:
Where:
y = predicted value of dependent variable
β0 = y-intercept (constant term)
βm = regression coefficients for each independent variable
Xn = independent variables
ε = model error
● Correlation analysis - this investigates the relationship between two variables. In

this study, the researchers used Pearson's Correlation coefficient to assess the

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association between the independent and dependent variables. The formula for
this coefficient is presented below:
Where:
r = correlation coefficient
x1 = values of the x-variable
x̅ = means of the values of the x-variable
y1 = values of the y-variable

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SURVEY QUESTIONNAIRES
Impulsive Behavior
Items Strongly Agree Neutral Disagree Strongly

Agree (4) (3) (2) Disagree
(5) (1)
1. I often buy things

spontaneously.
2. "Just do it" describes the

way I buy things.
3. I often buy things without

thinking.
4. "I see it, I buy it" describes

me.
5. "Buy now, think about it

later" describe me.
6. Sometimes I feel buying

things on the
spur-of-the-moment.
7. I buy things according to

how I feel at the moment.
8. I carefully plan most of my

purchases.

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9. Sometimes I am a bit
reckless about what I buy.
10. When I have money, I feel

I have to spend all of it.
11. I buy things even when its

not on my list.
12. I still buy something even

when I won’t really need it
13. I often make purchases

based on what I see on social
media
14. I will buy a product if I

like its packaging design
15. I will buy the product

without thinking too much of
my budget
Compulsive Behavior
Items Strongly Agree Neutral Disgree Strongly

(5) (1)

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1. My spending habits are

creating chaos in my life.
2. I usually spend all of my

money left after paying bills
each month.
3. I feel like I just have to

spend money left after bills
are paid.
4. I feel "high" when I go on a

buying spree.
5. Shopping is fun!
6. I am preoccupied with
shopping and spending.
7. I go shopping and buy

things as often as I can.
8. I go on a buying binge
when I'm upset, disappointed,
depressed, or angry.
9. I go shopping and buy

things to celebrate.
10. I feel guilty or ashamed

after I go on a buying binge.

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11. I shop and spend even

when I don't need anything.
12. I feel driven to shop and

spend, even when I don't have
the time or the money.
13. I hide my spending habits

and the things that I buy from
family or friends.
14. Many of the things I buy

are never worn or used.
15. I worry about my spending

habits but still go out and shop
and spend
money.

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Budgeting

(5) (1)
1. I can manage my finances

well.
2. I am very concerned about

my own financial
management.
3. I am aware of the
importance of having a clear
knowledge of how to manage
my finances
4. I know the right method in

managing my finances
5. I plan my daily expenses.
6. I make a systematic plan to

manage my finances each
semester
7. I only manage my finances

after realizing the money in

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hand is declining.
8. I will make sure that the

money I earn each semester is
enough if I use it wisely.
9. I always train myself to

manage my finances
efficiently and systematically.
10. I always record and

check all my expenses to
improve my financial
management.
11. I ensure that purchases for

academic necessities are
prioritized.
12. I allocate certain amount

of money received for
emergency savings in the long
run.
13. I know that I will face

financial problems if I do not
manage my finances well.
14. I do a personal monthly

budget.

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15. I review and assess

expenditures every end of the
month.
Purchasing

(5) (1)
1. I spend most of my money

on daily necessities.
2. I have the tendency to buy

whatever I like
3. I always spend my money

more than I have initially
planned.
4. I am often attracted to
special offers or discounts
while shopping.
5. I prefer to buy branded and

quality items only.

30
6. I love to watch movies at

the cinemas and go out with
friends during the weekends
7. The money that I receive

for each semester is not
enough for my expenses.
8. I spend more on food.
9. I am more interested in
eating out rather than having
home-cooked meals.
10. I often save money for the

future.
11. I record all the inflow and

outflow of my money to
control my daily expenses
12. I give priority to the

purchase of academic
necessities over less important
purchases
13. I often make a price

comparison before buying
something
14. I shop based on a list of


31
needed items
15. I discuss with parents or

spouse to plan my expenses.

32
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La Consolacion College - Liloan, Cebu, Inc.

Accountancy, Business and Management

RELATIONSHIP OF SPENDING HABIT AND FINANCIAL MANAGEMENT

Date of Submission: September 30, 2024

Available to the general public Yes

Available only after consultation with author/research adviser Yes

Available only to those bound by confidentiality agreement Yes

ACCOUNTANCY, BUSINESS AND MANAGEMENT

ACCOUNTANCY, BUSINESS AND MANAGEMENT

The Problem and Its Background

In recent years, there has been a growing emphasis on understanding how

ACCOUNTANCY, BUSINESS AND MANAGEMENT

ACCOUNTANCY, BUSINESS AND MANAGEMENT

Review of Related Literature and Studies

Impulse buying, also referred to as impulsive buying or impulsive purchase

ACCOUNTANCY, BUSINESS AND MANAGEMENT

Impulsive buying behavior (IBB) is an irrational buying behavior, carried out

Compulsive buying behavior (CBB), otherwise known as shopping addiction,

ACCOUNTANCY, BUSINESS AND MANAGEMENT

Furthermore, financial management skills which includes the process of budgeting,

ACCOUNTANCY, BUSINESS AND MANAGEMENT

Budgeting is essential for someone's financial security, helping to ensure people

As stated by Dela Peña et al. (2019), Budgeting is important to the students'

ACCOUNTANCY, BUSINESS AND MANAGEMENT

According to Kotler and Armstrong (2018), purchasing decisions are

ACCOUNTANCY, BUSINESS AND MANAGEMENT

Purchasing is the process of acquiring materials, components, and services from

ACCOUNTANCY, BUSINESS AND MANAGEMENT

Significance of the Study

ACCOUNTANCY, BUSINESS AND MANAGEMENT

opportunities for interdisciplinary research, combining economics, education,

Future researchers. This study offers a foundation for further research on

ACCOUNTANCY, BUSINESS AND MANAGEMENT

Figure 1. Theoretical Framework

The study is anchored in Self-Regulation Theory (Bandura, 1991), which suggests

ACCOUNTANCY, BUSINESS AND MANAGEMENT

Self-Regulation Theory emphasizes the importance of individuals controlling

ACCOUNTANCY, BUSINESS AND MANAGEMENT

Statement of the Problem

Specifically, the study seeks to answer the following questions:

ACCOUNTANCY, BUSINESS AND MANAGEMENT

ACCOUNTANCY, BUSINESS AND MANAGEMENT

Purchasing. Purchasing in this study refers to the act of making informed

ACCOUNTANCY, BUSINESS AND MANAGEMENT

Scope and Delimitations of the Study

ACCOUNTANCY, BUSINESS AND MANAGEMENT

ACCOUNTANCY, BUSINESS AND MANAGEMENT

Methods and Techniques Used

This study employs a descriptive correlational method and a quantitative research

Respondents of the Study

ACCOUNTANCY, BUSINESS AND MANAGEMENT

Instrument of the Study

A standardized questionnaire was utilized to gather data on compulsive buying,

Data Gathering Procedure

ACCOUNTANCY, BUSINESS AND MANAGEMENT

Statistical Treatment of Data

ACCOUNTANCY, BUSINESS AND MANAGEMENT

● Correlation analysis - this investigates the relationship between two variables. In

ACCOUNTANCY, BUSINESS AND MANAGEMENT