Asidao Format - 0114

CHAPTER I
THE PROBLEM AND ITS BACKGROUND
INTRODUCTION
Almost everything in life costs money, which means spending, is just part of daily living.
Spending is normal, but spending more than you earn is when it becomes a problem. The
pattern of living has changed; every individual spends money for what they need and want. The
way how people spend has evolved, it was much simpler in the time when they are used to
bartering and trade goods with who they think have goods with an equal value of good they will
exchange. From barter, to the use of gold, silver, copper the use of currencies and now bit coins
are slowly being introduced to the public. In some cases, price tends to change and it affects the
productivity of people on how they use their money. Oftentimes, spend too much while others
are caught off-guard to the state they will fall out short on money. Most people, especially the
head of the family hope to make their income spend wisely so they must decide which expenses
are most important. There are some factors that affect how people spend or decide where to
use their money: such as age, family size and income. Some family spends more than beyond
their means and this greatly affects their way of allocation of income. A family with low income
may spend most of its money on food, clothing and shelter.
In this study, the researchers will find out the spending pattern and behavior among
selected resident in Barangay Balong Bato, San Juan City. Also the researchers will show how
much percentage of respondent’s income goes to certain aspects. All peoples have their own of
spending pattern and behavior that they used in their everyday life.
The goal of the study is to gain knowledge on how to manage properly the income
spending, through the responses of the respondents, researchers will have a data that will be a
guide in spending. The more knowledge about their financial responsibility the more they likely
to organize their lives and manage their income distribution to different needs and wants. The
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study may also help the researchers and other people, which the result of this research may be
able to exercise on their daily living.
THEORETICAL FRAMEWORK
The Maslow’s hierarchy of need is the theoretical framework of this study. The needs to
achieve towards fulfillment that some head of the family are fairly satisfied with how they
manage their income and able to establish a spending pattern that provides for daily needs and
wants of the family. The majority need to formulate a financial management plan may help gives
a meaningful and better life. Maslow proposed that human needs can be arranged in hierarchy
of priorities, the lower needs being more satisfied and therefore seek to fulfill the higher one.
The Maslow hierarchy theory refers to the earliest and most widespread version of Maslow's
(1943, 1954) hierarchy of needs includes five motivational needs, often depicted as hierarchical
levels within a pyramid. People are motivated to achieve certain needs, and that some needs
like basic needs are more important over others. Maslow claimed that everyone has a same
kind of need, but the need will differ among individuals.
As per Maslow’s hierarchy of need, there are five levels of needs wherein the bottom
part of the pyramid occupy the largest part which is the biological needs to satisfy one’s hunger,
until these basic needs are satisfied to the degree needed for the sufficient operation of the
body, the majority of a person’s activity will likely be at this level, and the other levels will
provide little motivation (the other needs are still there, simply not dominant) (Oleson, 84). After
the physiological needs have been fulfilled, focus can be shifted to the needs for safety to feel
secure and safe; these needs have to do with the natural desire for security purpose of
individual. The third level that motivates human behavior is the need for social relatedness or
belongingness and love needs to affiliate with others. The fourth level refers to self-esteem that
are basis for the human desire to be accepted and valued by others (Thomas, Shakemia).
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And self-actualization refers to the need for personal growth and development throughout one’s
life. In addition, as the physiological needs are met individual moves forward on top to meet
other needs. So, as the individual become satisfied of the first level which are the basic needs
tends to pursue the higher needs of self-actualization. Maslow noted only one hundred people
became fully self-actualized because our society rewards motivation primarily based on esteem,
love and other social needs.Maslow perceived that human needs could be arranged in a
hierarchy in order to sustain the important requirements for survival.
Theoretical Paradigm
Self-Actualization needs
self-fulfillment, seeking personal
growth and peak experiences.
Esteem needs
prestige and feeling of
accomplishment
Belongingness and Love needs
work group, family, affection,
relationships, etc.
Safety and Security needs

protection from elements, security, etc.
Biological and Physiological needs

air, food, drink, shelter, etc.
Figure 1. Maslow’s Hierarchy of needs
As for the researchers, the theory was based on the pyramid of Maslow’s hierarchy of
need wherein it distinguished to be the income of the households in Barangay Balong Bato was
distributed. The upward climb is made by satisfying one set of needs at a time. The lowest part
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consists of the needs where most of the household’s incomes were spent. This theory states
that once a need is satisfied, it stops being a motivator of human beings. (Business Dictionary)
Based on Luke Landes on Consumerism Commentary ties that psychology theory to
budgeting are physiological needs or basic needs which consists of foods, water, clothing, and
shelter (rent or mortgage, for example). Physiological needs should always be the first in terms
of the income distribution and fortunately for many people, these basic wants are usually well
satisfied. A need is a something must have in order to survive like food, shelter, water and
clothing. Once they managed a certain level of physical comfort, we’ll seek to establish stability,
safety and consistency are the health insurance which is refers to the medical needs of the
family, expenses related to work and utilities that cost money, like providing power to every
home. When those are covered the family can spend more love and belongingness that refers
to where family members can spend time for each other etc. Landes list under esteem is
education and professional development where parents send their children to school. Maslow
believes that repeated shifts in motivation are possible when a person is in a supportive
environment. And the highest level in the hierarchy of needs is self-actualization that includes
self-fulfillment needed for generating income. Maslow described the need for self-actualization
as the desire to become more and more what one is, to become everything that one is capable
of becoming. Recreational needs like vacations and non-essential travels of the family that plays
important role in the monthly income distribution of the family which is the desired needs and
wants were satisfied. Applying Maslow’s hierarchy of needs can lead to establishing an effective
and fulfilling pattern of behavior that applies to all aspects of their lives.
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Statement of the Problems
These are following questions needed to answer by the researchers to provide information need
in this study.
1. What is the demographic profile of the respondents as to:
A. Gender of the Family Head
B. Family Head Age
C. Highest educational attainment of the Head of the Family
D. Ownership of residence
E. Monthly Income of the family
F. Source of Family Income
G. Types of Households
H. Total Number of Family members
2. What is the percentage of the family’s income distribution according to:
A. Physiological needs: Food at home, water, housing (rent or mortgage
payment), clothing & shoes (non-designer brand essential wear).
B. Safety and Security needs: Power (electricity, gas: LPG), basic telephone
service (cell phone, load-prepaid/postpaid), Insurance (health, home, life),
vehicle or other transportation
C. Love and Belongingness: Gift-giving, charitable contribution, leisure and
entertainment
D. Esteem needs: Education
E. Self-actualization: Internet, family vacation or out of town,
luxuries(jewelries/gadgets), Savings
3. In general, what is the behavior of the respondents when it comes to their spending habit
(Very frugal, frugal, average, spendthrift, or very spendthrift)?
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4. What is the degree of relationship between the respondents monthly income with their
actual allotment on the following?
SCOPE AND LIMITATION OF THE STUDY
The researcher studies the spending pattern and behavior of the households in
Barangay Balong Bato. The researchers will conduct a survey on the 338 households out of
2,196 households in the selected locale. The coverage of this study is the demographic profile
of the residents, distribution of income, different consumption expenditure and the households
saving. The study does not cover the residents who are living independently, because the study
will focus only to the families. Due to other factors that may affect how the respondent will
allocate or distribute their income. Moreover the researchers do not recognized the loan as an
expense but as an additional liability to the respondents. The limitation of the study is when the
respondents do not cooperate or do not have time to accept the survey.
SIGIFICANCE OF THE STUDY
To the Residents
For the respondents, the study may lead them to review their finances which will be
beneficial in considering new pattern for the allocation of their income. This study can be a
learning model for the respondents to improve and develop their habit in spending.
To the Society
The findings of the study will be aware to the benefits of financial management
considering that behavior on spending plays an essential role in management of every person’s
finances. The findings of this study may be able to apply by other professions and able to
exercise better habit in spending.
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To the Researchers
For the researchers, it may serve as a guide in case it will be the one who will manage
their spending. It may also serve as a reference material to other researchers who will conduct
similar to this study.
DEFINITION OF TERMS
Behavior. The way the respondents select, buy, use goods and services to satisfy their
needs and desires.
Budgeting. A particular amount of money the way respondents allocate their income.
Consumption. An estimated amount of goods and services that respondents wish to
purchase for the immediate wants and needs purposes.
Esteem needs. Family members spend money for educational purposes.
Expenditure. Is the purchases made by households and individuals to fulfill everyday
needs and wants.
Family Business. Any business in which two or more family members owned or
controlled.
Frugal. The way that the respondents careful way about spending or using money.
Household. An individual or a group of families living in the same house with different
expenses.
Insurance. The way that the respondents spending money on health, life and home
insurance.
Love and belongingness. Family member spends money for gift-giving, charitable-
contribution, leisure and entertainment.
Needs. The basic necessities needed by an individual in order to function and live.
Nuclear Family. Household that is composed of a father and mother and children.
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Physiological needs. Family members spends money like Food at home, water,
housing (rent or mortgage payment), clothing & shoes (non-designer brand essential wear).
Safety and Security needs. Family expenses to Power (electricity, gas: LPG), basic
telephone service (cell phone, load-prepaid/postpaid), Insurance (health, home, life), vehicle or
other transportation.
Self-Actualization.. Family activities for enjoyment like Internet, family vacation or out of
town, luxuries (jewelries/gadgets), including savings.
Spendthrift. The way respondents spend money in a careless or wasteful way.
Spending Pattern. The way respondents allocate their income to meet their basic
needs and wants.
Two or More Non-related Families/Person. A household that composed of two or
more non-related families or person and not related to each other by blood, marriage or
adoption.
Wants. The various desires and needs of consumers that needs to be satisfied through
the goods and services.
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CHAPTER 2
REVIEW OF RELATED LITERATURE AND STUDIES
This chapter shows the related literature and studies that the researchers reviewed and
summarized.
SPENDING PATTERN
It is common knowledge that cash is difficult to get, easy to distribute and difficult to
control. Duty of most head of the family have their own way of spending the income of the
family, and this is the labeled of spending pattern. (Rago, 2010)Spending pattern is the way of
the household allocates their income to meet their basic needs and wants. There are some
factors that affect how households spend or decide where to allocate their money: it may due to
their demographic profile like gender of the family head, age of the family head, educational
attainment, and availability of income, ownership of residence and types and size of the
households. Some family spends more than beyond their means and this greatly affects their
way of allocation of income.
SPENDING PATTERN OF FAMILIES
The study of Stavros A. Drakopoulos and KaterinaGrimani shows that Maslow’s of
needs hierarchy offered additional insights in investigating the relationship between income and
happiness level. The study used the European Quality of Life Survey 2007, a representative,
questionnaire-based household survey series from the European Foundation for the
Improvement of Living and Working Conditions, that contains data from 30 European countries
and Turkey it examines both the objective circumstances of European citizens' lives and how
they feel about those circumstances and their lives in general. According to Maslow humans
show a hierarchical structure that there are primary needs and secondary needs and primary
needs must reach a given level of satisfaction first in order to meet the secondary needs. That
primary needs refer to physical needs like food; clothing and shelter while secondary needs
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refer to intellectual or non-material needs. In a hierarchical approach predicts that when income
is low, a very high percentage of it would be spent on food, since food satisfies a basic need.
The integration of hierarchy of needs into framework of happiness entail that there is priority
approach to happiness of individual. While on the income-happiness approach income is related
to the level of reported happiness (Easterlin, 2001). As Frey and Stutzer state: “Income provides
happiness at low levels of development, but once a certain threshold has been passed, income
has little or no effect on happiness” (Frey and Stutzer, 2002, p.75).That idea is that once a level
of income that satisfies the basic needs has been reached, further increases of income do not
provide the same increases on happiness because secondary needs are being considered.
There is a strong relationship between low income level and happiness, while happiness
lessens one’s the income got higher. The reason why is that high income lessening happiness
towards needs because there are more satisfied to non-basic needs. These findings support the
presence of hierarchical behavior. Josh nelson concluded in his work entitled “Maslow’s
Hierarchy of Needs and Purchasing” that each level of hierarchy of needs have particular goods
and services associated in them. For the psychological needs which is at the bottom of the
pyramid these are the basic needs needed for a person to survive such as food and water. The
second rank goes for the safety needs the need for safety looks into the security of: body,
employment, resources, property and family, as well as others. Next rank goes for love and
belongingness friendship and family are the major aspect of this level once they achieved this
level they will now shift to esteem needs. The ideas of self-esteem, confidence, achievement
andrespect for/by others are what make up this level. And on the top of the pyramid is self-
actualization once all the other needs are met the consumers know what they want and they
have achieved their fullfilment.
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FACTORS THAT AFFECT HOUSEHOLDS ALLOCATE THEIR MONEY
DEMOGRAPHIC PROFILE
Gender of the Family Head
In general, Filipinos look male as the head of the family. Based from the results of 2009
Family Income and Expenditure Survey, of the 18.5 million estimated families in 2009 there is
one female-head in every five families and female-headed families have more income than
male-headed families. Mostly, income of female-headed families obtained from other sources,
cash receipts and support from abroad, other than salaries and entrepreneurial activities. In
addition, female-headed families spending pattern showed that there is lesser spending on food
(39%) than male-headed families (44%). The second largest part of family budget of a female-
headed family goes to housing expenditure followed by transportation and communications
(8%) and fuel, light and water (7%). While, male-headed families spend more on food (44%)
and spend less on housing expenditure and having the same percentage with female-headed
family when it comes to transportation and communications and fuel, light and water. There are
also gender differences in the average cost of the items bought by the family head. Typically
female-headed families are responsible for buying the mass of small items which every
household requires, male-headed families purchase the bigger, more costly and more rarely-
purchased items. So the time which male head of the families and female head of the families
spend 'shopping' tends to be differently spent and more time-consuming for female head of the
families. (Jan Pahl, 2000) The study of Philippe LeMay (2006) shows that male and female
single parents spends almost the same and only different in their spending on their personal
expenditure. The results led that the spending of the head of the family did not depend on the
preference to adult men and women rather it depends on the individual cash income and
household composition.
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Family Head Age
Age and marital status are demographic factors that may affect changes in the spending
pattern and behavior of people. The study of US Bureau of the Census, number of people at the
age of 65 and older is expected to double in the year 2050. In this case there will be an
increase in demand for health-services, recreation, tourism, retirement housing. As well as, for
the number of singles tend to rise. There were difference at the spending pattern of singles than
couples and families. They spend more on convenience foods and leisure activities. Unlike
those who have families that they spend more for products that will be needed for the family.
Household spends more when they were at the age group under 25 to 45 years old. A lot
amount of money is spent on food, clothing, and transportation at the age group of under 25 to
45 years old. (Ann C. Foster, 2015) As for housing, the amount of money spent become
doubled as they became part of the age group 35 to 45 years old compared to what they spent
when they’re at the age group under 25 years old. For people over 45 years old, they become
more frugal on their expenses, the amount of money they spent on “food at home “increases
than the amount they spent on “food away from home”, as for the expenses from clothing and
transportation, the amount of money they spent increases from the age group under 25 years
old to 40 years old but eventually decreases after they became part of the age group 45 years
old and above. Food, clothing, transportation and housing are all work related and will be
affected when household members retire hence, the amount they spent as they grow older
decreases. Healthcare was the only expenditure increases when they become older and all
other expenditure decreases as they become older. On the other hand based on the study of
IndrėPikturnienė and SigitasUrbonavičius entitled “Spending and Saving Patterns of two
Consumer age groups during Economic downturn and Recovery of 2009–2011 in Lithuania”
present differences in spending patterns between the two age groups (19–26 and 40–68) during
the period of economic downturn and recovery. The method of longitudinal study allows finding
how the expectations towards financial situation and spending behavior change over three
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years (2009, 2010, and 2011). The study showed that younger respondents perceived the
impact of the economic downturn in relation with expectations in a more casual way. They had
higher expectations towards the income increase. Spending of both age groups, as well as their
expectations towards prices was very similar throughout all the studied years. However, the
older generation was more likely to save in order to survive, whereas the younger generation
did not change its spending habits or decided to reduce spending for saving reasons.
Family Income
The bureau’s official measure of income is “money income.” It includes earnings,
interest, dividends, pensions, child support, and government non means-tested income (e.g.,
Social Security benefits, unemployment compensation, and veterans’ payments). Money
income is the measure on which official estimates of poverty are based. The study on the
Distribution of Household Income and the Middle class of Elwell C.K., (2014) Conducting a
survey by the Census Bureau which is from the annual estimates of the distribution of income
across households, families, and individuals with income. Households appear to be most
relevant because household members are assumed to share a common standard of living.
According to Engel’s law which was published by Ernst Engel, a German statistician, as
household income increases, a small percentage goes for food, percentage on housing,
household operations, and clothing remains unchanged, and percentage spent on other items
like recreation and education increases. In connection to the latter, a review that Measures the
Diversity of Household Spending Patterns, it shows that households do not concentrate all their
spending on one category such as food expenditure but also spread to other existing spending
categories. As a result of the review, as household income increases the household spending
pattern also changes. First, in a low income level most of the spending goes to food and the
diversity of spending are low since most of the family budgets are directed to food. Second, if
household income grows there is an increase in the diversity of spending causing a decline
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share to the food spending and a chance to have an increase in non-food expenditure. Third,
household spending become more diversified if income increases because the household were
able to distribute income to the available spending categories (Chai, Rohde and Silber, 2013).
With more money in their pockets, consumers are buying higher-quality essentials such as food
and household products as well as more big ticket items such as passenger vehicles. Greater
demand for big-ticket items has also been boosted by a wider availability of consumer credit and
greater use of financial cards by the growing middle class. (Consumer Lifestyles in the
Philippines 2015).
Description on Different Needs
Based on the recent annual Consumer Financial Survey (CFS) of the Bangko Sentral ng
Pilipinas, the Philippines still remains a consumer-spending economy. The CFS reported that
salary of a common Filipino averages P20, 000 a month and allot it as follows: p7, 700 or 38.5%
for Food and Beverage, P2, 200 or 11% for the Children’s Education, P2, 000 or 10% for
transportation, P2, 100 or 10.5% for House/Utilities, P1, 600 or 8% for Health/Medical services,
P1,200 or 6% for Savings, P1,200 or 6% for Communications, P1, 000 or 5% for Clothing, P1,
000 or 5% for Miscellaneous amounting to P20, 000 or 100%. The survey concluded that
Filipinos put more priority on food that takes a large part of the income and will never
compromise getting a good education than getting to wear lesser clothes.
As stated on the article of Luke Landes on Consumerism Commentary shows with the
most fundamental ones from bottom to top. These psychology theories that refer to budgeting
are the physiological needs including food, water, clothing and shelter that should be accounted
for first the budget. Next is the safety needs like insurance, expenses related to work and
utilities. When the first two needs are covered, spending will be focus on gifts, time,
entertainment spent with friends and family which refers to the needs for love and
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belongingness. Landes list under esteem are work clothing, professional development, dining
out and fitness (beyond basic health needs). Self-actualization had the strongest associations
with savings behavior. (Robert Powell, 2015). According to Maslow, most people follow the
hierarchy step by step; without the lower needs being met, a person will not be able to move up
the hierarchy. Maslow’s hierarchy of needs is a theory that organizes universal human needs in
order of priority (Melanie Pinola, 2013).
Basic needs are things that are essential to people to maintain life and for survival.
According to Maslow, who developed the theory of motivation, believes that basic needs are
important to be satisfied first before another attention is given to the higher level of needs
(Johnson, 2015), people cannot move to higher hierarchy if lower needs are not able to meet.
Basic needs such as food, shelter, clothing that are used for daily activities (Martin, 2011). As
this level is satisfied people are able to move upward toward the next set of needs. Safety
needs are attain once people are satisfied from the basic needs. Safety needs refer to the
needs for safety and protection from future threats. Maslow also includes in the theory the need
for love and belonging. The need for support and connection coming from family and friends is
important for the experience of life. Also, being connected to a particular group is considered at
this level. People made purchases to things like clothing, gadgets or other materials that make
them part of the crowd. The need for family talks about how to strengthen the family bond of the
members and to stay connected. Some example bonding of families are like family trips, outing
and dinner. As the previous levels are fulfilled and satisfied, an individual can have self-esteem,
confidence on what they feel, and sense of achievement and respect for others. In esteem-
needs, also attach the awareness of an individual to his/her identity and the respect he/she
have from others (Perera, 2009). If all other needs have met individual come to the point of self
actualization where he/she know what he/she wants and know exactly who is he/she are. Self-
actualization based on Maslow is that it represents the growth of an individual toward the
fulfillments of highest needs that is meaningful to life (Olson, 2013). An individual has the
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creativity and there is an acceptance of facts exists that can be hardly influenced by others
(Nelson, 2015).
SAVINGS
Based on the Philippine Daily Inquirer, written by Ana G. Roa, that there were two out of
three Filipino families were savers between 2003 and 2009 and they save with an average of
P 23 to P 25 out of every P100 they earned. The data was based from the report showed by the
National Statistical Coordination Board (NCSB). Wherein, the results showed that there were
more savers that are female-headed families than male-headed families. However, there is a
big difference in the spending pattern between savers and non-savers when it comes to food
expenditures; where the non-savers spend four to five percent more. In addition, one of the
items being sacrificed by the non-savers was education and they tend to spend relatively more
on alcoholic beverage and tobacco. Moreover, when the family is headed by the mother or
matriarchal which is saver, spend relatively less on food, non-durable furnishing, clothing, and
footwear, while if the family is headed by the father or patriarchal savers spent relatively less on
recreation, special family occasions, gift and contribution. On the contrary, if the family is
headed by the non-savers mother spent relatively more on personal care and effects, while if it
is was headed by the patriarchal non-savers spent more on alcoholic beverages, tobacco, and
durable furnishing.
Among these circumstances, consumer units might depend on savings or credit to
finance the higher expenses. Similarly, low consumptions might be increasing levels of saving. It
is therefore that the determination of destitution utilizing the wage and consumption based
neediness measures that can be influenced by reserve funds and credit choices. Increased
savings may make a consumer unit appear expenditure poor but not income poor and increased
use of credit or savings may make a consumer appear income poor but not expenditure poor.
Consumer units who are not income poor, and are expenditure poor, have higher savings
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balances than those who are income poor and expenditure poor. This suggests that consumer
units may be expenditure poor but not income poor simply due to savings. (Castner L., Mabli J.,
(2010)
SPENDING BEHAVIOR OF HOUSEHOLDS IN THE PHILIPPINES
The impact of household income changes the consumer spending behavior.
Contemporary Marketing (2015).In a study made by Sun Life Philippines entitled, Study of
Lifestyles, Attitudes, and Relationships (SOLAR) shows where salary of P 20, 000.00 of a lead
to in a one-month budget. Villafuerte concludes that even Filipinos were aware of their finances
still there is a deficiency in financial discipline and only few of them put it into practice. In a
monthly budget of a Filipino household the biggest percentage in the budget is allocated in
foods which are 37% or P 7, 400 of P 20, 000. The next portion is allocated to house and child’s
education which is 13% and 11% respectively. Health occupies the 9% of the budget and the
remaining is shared to communication, savings, transportation, clothes and others. In a P 20,
000 budget of a Filipino household only 6% of their income is allocated for savings and the
others were spent into different needs. As of Consumer Lifestyle reports provide current and
detailed snapshots of the unique behaviors, attitudes and spending patterns of consumers in
Philippines. The important core topics like household disposable home ownership, the report
also contains hard to find statistics on more specific consumer related topics like eating and
drinking habits, shopping habits, preferred types of stores and retail venues, clothing and
fashion trends and descriptions of how consumers spend their leisure and recreation time.
Large amount of income is for household spending like food, clothes, fuel and shelter and all
essential things for survival. But people also buy things quickly without thinking if it is essential
or not and getting a cash loan just to have their wants without knowing that it is actually losing
money by spending in that way (Philippine Association of Services Exporters, Inc. (2016).There
are some examples of harmful spending habits that the Philippine Association of Services
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Exporters shared to know and stop doing. First is not having a household budget. Without
budgeting, spending money can no longer be control. Having a household budget helps the
household to set priorities when it comes to spending that can eliminate the things that not really
important. Second is not having a grocery list when shopping. Without grocery list, households
can overspend by purchasing the items that catch the household’s eyes. Grocery list will help
the household to list down the items that is really needed. Third is not paying utility bills on time.
Paying the bills on time helps the households to determine how much money are still left in
monthly budget. Fourth is ordering take-out food often. Takeout or delivery of foods is also over
spending. Avoiding this can prevent spending of money too much. Fifth is making purchases out
of convenience. Buying things online can cost spending too much because of fees, shipping and
handling fees. Buying things from supermarkets is wiser thing to do to lessen the expenses.
Last is buying only band name product. Buying branded things makes the household’s spend
more. Households can buy affordable but same quality of the things and it makes the spending
of money lessen.
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CHAPTER III
RESEARCH METHODOLOGY
This chapter shows the appropriate method used in this study, research instrument
used, validity of the instrument, and the procedures of gathering data.
Research Design
Descriptive method was the appropriate method used in this study. It refers to factual
grounded information that express the quality, kind, and condition by using the respondents to
fully represent the results of the study. Descriptive method includes the collection of data
gathered from the selected households of Barangay Balong Bato that will provide the needed
information in this study. This method also determined the spending pattern and behavior of the
respondents by the used of research instruments such as survey questionnaires.
Population and Sampling
Description of the Respondents
Barangay Balong Bato in San Juan City was the chosen by the researcher as the locale
of the study. The population size of the study is 2,196 households according to the Municipality
of San Juan City.
Sampling Technique
Systematic Random Sampling
The researcher used systematic random sampling this type of sampling in which the
respondents are randomly selected from the total population of the barangay, wherein, the
researchers choose a random starting point followed by a fixed interval of the participating
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respondents that were included in the sample. In order for the researchers to obtain the
338respondents; the computation as:
N = 2,196 (the population of Barangay Balong Bato)
n= 338 (the sample size needed in the study)
k= 2,196/338
= 6.497/7 (the period interval in selecting participants
Whereas, the researchers choose the first respondent that is 6th in the list and followed
by the 13th, 20th…
Sample Size of the Respondents
Slovin's formula
The researchers use Slovin’s formula with a 5% margin of error in determining the
sample size of the study to come up with 338 respondents. The Slovin’s formula is stated below:
Formula:
𝑁
n= 1+𝑁𝑒 2
Where:
n = sample size
N = Population size
e = margin of error (5%)
2196
𝑛=
1 + 2196(5%)2
2196
𝑛=
6.49
n = 338
The numbers of respondent are 338 out of 2196 households with a margin error of 5%.
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Research Instrument
In this study the research instrument used was survey questionnaire where it consists of
series of questions drawn from the statement of the problem for the purpose of gathering
information with regards to the spending pattern and behavior among selected households in
Barangay Balong Bato. The question was group according to the demographic profile,
distribution of income and the behavior on the spending of the respondents. Through the use of
the questionnaire the researchers made the data amendable to analyzed and minimize bias in
formulating and asking question to the respondents. With this research instrument, the
researchers were able to guide in analyzing the data that was gathered and the results thereof.
The contents of the questionnaire are the demographic profile of the respondents;
distribution of income, its distribution was group according to different consumption expenditure.
Validity of Instrument
The validity of the instrument was consulted by the researcher to their finance professors
for the approval of the questionnaires to be used in the survey. The second part of the
questionnaire was based on the reliability on the spending behavior of the respondents which
conducted to 10 sample participants. The verbal interpretation has been computed according to
this table.
Table 1. Verbal Interpretation
SCALE Interval Verbal Interpretation

5 4.6-5.0 Very Frugal
4 3.6-4.5 Above Average
3 2.6-3.5 Average
2 1.6-2.5 Below Average
1 1.0-1.5 Poor
21
Data Gathering Procedure
The researchers gathered the data by coordinating to the Municipality of San Juan. The
list of different barangay were presented to the researchers and came up selecting the
Barangay Balong Bato as the locale of the respondents based on the total population of the
households given. Responses of the respondent to the questionnaire will be statistically
analyzed the data requirements of the study. All gathered information of the researchers will be
tallied and applied in the presentation and interpretation of results through graph presentation
and percentage distribution method.
Statistical Treatment of Data
Frequency distribution is used to show that data are summarized into classes or categories to
show the frequency of occurrence of the values or objects in each class or category.
Percentage used to determine the quantitative relation to the whole response. In order to get
the percentage, the formula is dividing the frequency (sum of responses) by the total number of
responses.
Formula:
𝑓
%= × 100
𝑁
Where:
P (%) = percent
f = frequency
N = total number of respondents
100 = constant multiplier
22
Weighted Mean is used to determine the average responses to the questionnaires.
Formula:
∑ 𝒇𝒙
̅=
𝒙
𝒏
Where:
𝑥̅ = weighted mean
∑ = is the summation (or total)
f = represents the frequency of each class
x = the midpoint of each class
n = total number of respondents
Table 2.Likert Scale
Never Sometimes Often Majority of the time Always

1 2 3 4 5
Likert scale (‘agree-disagree’ scale) used to allow the individual to express how much
the respondents rate to a particular statement. The application of Likert scale is used to sum the
scores for each respondent to provide an overall behavioral score for each individual.
Pearson Correlation Coefficient
Formula:
𝑁𝛴𝑥𝑦−(𝛴𝑥)(𝛴𝑦)
𝑟 = √[N𝛴𝑥 2 −(𝛴𝑥)2 ][𝑁𝛴𝑦2 −(𝛴𝑦)2 ]
Where:
N = number of pairs of scores

Σxy = sum of the products of paired scores
Σx = sum of x scores
Σy = sum of y scores
Σx² = sum of squared x scores
Σy² = sum of squared y scores
23
Table 3. Pearson’s Correlation
R= Value Interpretation
0.81-1.00 High relationship
0.61-0.80 Moderately high relationship
0.41-0.60 Low relationship
0.21-0.40 Moderately low relationship
0.01-0.20 Neglible relationship
From the above interpretation Pearson’s correlation is used to measure just how strong
the relationship between Monthly Income distribution and their allotment of the respondents.
The formula must be followed to produce what is referred to as the coefficient value.
24
CHAPTER IV
PRESENTATION OF DATA
This chapter contained the gathered results from the survey made by the researchers in
order to answer the questions in the statement of the problem. The results were graph for easy
interpretation and analysis.
Table 1.1
Frequency Distribution and Percentage distributions of the Respondents in terms of
Gender
Respondent Frequency Distribution Percentage

Female 173 51.18%
Male 165 48.82
Total 338 100.00%
This table shows that 173 or 51.18% are female and the rest 165 or 48.82% are male.
The total number of the Gender of the family head will be used as a total sample size.
Table 1.2
Frequency Distribution and Percentage distributions of the Respondents in terms of the
Age of the Head of the Family
Family Head Age Frequency Distribution Percentage

Range
21 to 30 66 19.53%
31 to 40 128 37.87%
41 to 50 90 26.63%
51 to 60 38 11.24%
61 and above 16 4.73%
Total 338 100.00%
Table 1.2 presents the Frequency Distribution and Percentage Distribution of the
Respondents in terms of the Age of the Head of the Family. Most of the respondents were ages
from 31 to 40 at 37.87% of the total number of respondents. Those family head ages from 41 to
50 years old are 26.63%, 21 to 30 years old are 19.53% and 51 to 60 years old are 11.24% and
61 and above years old are 4.73% for a total of 100% participants.
25
Table 1.3
Highest Educational Attainment of Family Head
Highest Educational Attainment Frequency Distribution Percentage

Elementary Undergraduate 8 2.37%
Elementary Graduate 4 1.18%
High School Undergraduate 28 8.28%
High School Graduate 141 41.72%
Vocational 24 7.10%
College Undergraduate 71 21.01
College Graduate 59 17.46%
Post-Graduate 3 0.89%
Total 338 100.00%
The table above shows that in terms of educational attainment, not even more than a fifth
of all the family head were college graduate, majority of the family head were high school
graduate are 41.72%, the college undergraduate are 21.01% and the rest are less than 10% of
the total percentage distribution
Table 1.4
Ownership of Residence
Ownership of Residence Frequency Distribution Percentage

Own 134 39.65%
Rent free with consent 69 20.41%
Rent free without consent 16 4.73%
Rent House 119 35.21%
Total 338 100.00%
As can be seen from Table 1.4, out of total of 338 respondents, 134 or 39.65% have
their own house, 69 or 20.41% are those family who rent free with consent of the owner, 16 or
4.73% are those who rent free without consent of the owner and 119 or 35.21% are those who
spend money to rent house.
26
Table 1.5
Frequency Distribution and Percentage Distribution of the Respondents in Terms of
Monthly Income of the family
Monthly Income Frequency Distribution Percentage

of the Family
Poor- Less than 47 13.91%
PHP 7,890.00
Low Income 125 36.98%
Between PHP
7,891.00 - PHP
15, 780.00
Lower middle 154 45.56%
Income Between
PHP15, 781.00-
PHP31, 560.00
Middle class 12 3.55%
Between PHP31,
561.00-PHP78,
900.00
Upper Middle 0 0
Income Between
PHP 78, 901.00-
PHP118, 350.00
Upper Income 0 0
Between
PHP118, 351.00-
PHP157, 800.00
Rich At least 0 0
PHP157, 801.00
Data sourced from 2012 Family Income and Expenditure Survey (FIES), Philippine
Statistics Authority
Table 1.5 indicates that 45.56% of the respondents are Lower middle income, 36.98%
are Low income, 13.98% are Poor and 3.55% are Middle class. No respondents are from upper
middle income class, upper income class and rich class.
27
Table 1.6
Frequency Distribution and Percentage Distribution of the Respondents in Terms of
Source of Income
Source of Income Frequency Distribution Percentage

Business 44 13.02%
Business/Investment 5 1.48%
Government Assistance 9 2.66%
Government Assistance/Retirement 2 0.59%
Investment 2 0.59%
Retirement 7 2.07%
Wages and Salary 211 62.43%
Wages and Salary/Business 24 7.10%
Wages and Salary/Government 26 7.69%
Assistance
Wages and Salary/Investment 2 0.59%
Wages and Salary/Retirement 6 1.78%
Total 338 100.00%
The figure above shows that Wages and salary is the main source of income of the head
of the family at 62.43% followed by Business that at 13.02%. Then Wages and
Salary/Government Assistance at 7.69% while Wages and Salary/Business at 7.10% and
Government Assistance at 2.66% and Retirement at 2.07%.
Table 1.7
Types of Households
Types of Households Frequency Percentage

Distribution
Extended Family 97 28.70%
Nuclear Family 237 70.12%
Two or more non-related families 4 1.18%
Total 338 100.00%
Table 1.7 shows that majority of participants, 70.41% are nuclear family, 28.70% are
extended family and 1.18% is composed of two or more non-related family.
28
Table 1.8
Frequency Distribution and Percentage Distribution of the Respondents in Terms of the
Total Number of Family Members
Total Number Of the Frequency Percentage

Family Members Distribution
3 to 5 233 68.93%
6 to 8 96 28.40%
9 to 11 9 2.66%
Total 338 100.00%
The table above shows that majority of the households have 3 to 5 members are 68.93%
of the total percentage, then households who have 6 to 8 members are 28.40% and 9 to 11
members are 2.66% of the total percentage.
Table 2.1
Percentage Distribution in Terms of the Spending Pattern of the Respondents
Income Distribution WEIGHTED MEAN PERCENTAGE

Food at Home 4348.9645 30.31%
Water 737.3 4.66%
Housing (Rent or Mortgage) 1282.9882 7.87%
Clothing & Shoes 791.8991 4.74%
Power (Electricity, Gas, LPG) 1208.536 7.58%
Basic Telephone Service 430.5621 2.54%
Insurance 206.2722 0.79%
Vehicle or Other Transportation 766.9231 4.64%
Gift-Giving 477.0118 2.96%
Charitable Contribution 233.5799 1.28%
Leisure And Entertainment 708.9053 4.11%
Education 1940.296 12.54%
Internet 926.982 4.87%
Family Vacation/Travel 1065.784 5.10%
Luxuries 118.2396 0.74%
Savings 1307.418 5.27%
Table 2.1 presents the Percentage Distribution in Terms of the Spending Pattern of the
Respondents. As presented in the data; 30.31% are Food at home which has the highest
29
percentage distribution in terms of spending of the respondents and the rest 69.69% are
allocated at different needs and wants of the respondents.
Table 2.2
Percentage Distribution of Spending Pattern of the Respondents in terms of Gender
Income Distribution Gender of the Respondents

Male Female
Food at Home 31.13% 29.52%
Water 4.50% 4.81%
Housing (Rent or Mortgage) 8.41% 7.35%
Clothing & Shoes 4.67% 4.81%
Power (Electricity, Gas, LPG) 7.35% 7.80%
Basic Telephone Service 2.49% 2.59%
Insurance 0.69% 0.89%
Vehicle or Other Transportation 4.65% 4.62%
Gift-Giving 2.94% 2.99%
Charitable Contribution 1.18% 1.38%
Leisure And Entertainment 4.07% 4.14%
Education 13.12% 11.98%
Internet 4.22% 5.48%
Family Vacation/Travel 4.51% 5.66%
Luxuries 0.71% 0.77%
Savings 5.36% 5.19%
Table 2.2 shows the Percentage Distribution of Spending Pattern of the Respondents in
terms of Gender. This indicates that food at home is the most prioritized distribution of income
where 31.13% are male while 29.52% are female, spending on education for both genders
considers as the second prioritized in distribution of their income where 13.12% are male while
11.98% are female. Table 2.2 indicates that 0.69% of male participants spend their income for
insurance while 0.77% of females spends their income in Luxuries.
30
Table 2.3
Percentage Distribution of Spending Pattern of the Respondents in terms of Family Head
Age
Income Distribution Family Head Age of the Respondents

21 to 30 31 to 40 41 to 50 51 to 60 61 and Above
Food at Home 31.18% 30.38% 29.00% 31.51% 30.90%
Water 4.88% 4.59% 5.03% 3.92% 4.08%
Housing (Rent or Mortgage) 6.88% 9.06% 7.83% 5.99% 4.01%
Clothing & Shoes 4.73% 4.56% 5.23% 4.02% 5.13%
Power (Electricity, Gas, LPG) 7.76% 7.38% 8.17% 7.22% 5.97%
Basic Telephone Service 2.47% 2.71% 2.43% 2.72% 1.70%
Insurance 0.62% 0.79% 0.73% 0.41% 0.76%%
Vehicle or Other Transportation 4.92% 5.03% 4.23% 4.66% 2.53%
Gift-Giving 3.45% 2.97% 2.94% 2.30% 2.60%
Charitable Contribution 1.18% 1.45% 1.40% 0.84% 0.70%
Leisure And Entertainment 4.75% 3.95% 4.00% 4.28% 3.00%
Education 12.94% 12.15% 12.66% 14.4% 8.82%
Internet 4.01% 4.58% 5.20% 5.55% 6.86%
Family Vacation/Travel 4.65% 4.59% 5.10% 4.23% 13.08%
Luxuries 0.70% 0.82% 0.70% 0.64% 0.81%
Savings 4.85% 4.98% 5.37% 7.30% 3.98%
This table shows the Percentage Distribution of Spending Pattern of the Respondents in
terms of Family Head. Majority of the respondents distribute their income for food at home at
31.18% whose ages from 21 to 30, 30.38% whose ages from 31 to 40, 29% whose ages from
41 to 50, 31.51% whose ages from 51 to 6o and 30.90% whose ages from 61 and above. Table
2.3 shows that the family head ages from 61 and above has the lowest percentage distribution
in terms of education at 8.82% while ages from 51 to 60 years old has 14.4%, this indicates
that family head whose ages from 61 and above are already done financing the studies of their
son, daughter or even their grandchild. As seen in the table 2.3, income distribution for family
vacation/travel where 13.08% are ages from 61 and above has the highest percentage
distribution while only 4.23% are ages from 51 to 60 which has the lowest percentage
distribution. Only 3.98% of the respondents whose ages from 61 and above are saving for
future purposes while 7.30% of the respondents whose ages from 51 to 60 are saving for the
future retirement.
31
Table 2.4
Percentage Distribution of Income of Spending Pattern of the Respondents in terms of
Highest Educational Attainment
Income Highest Educational Attainment of the Respondents

Distribution
Post –Graduate
Undergraduate
Undergraduate
Undergraduate
High School
High School
Elementary
Elementary
Vocational
Graduate
Graduate
Graduate
College
College
Food at Home 33.37% 31.96% 34.58% 33.03% 36.12% 25.21% 25.56% 19.67%
Water 6.67% 5.53% 4.55% 5.26% 4.22% 4.26% 4.04% 2.08%
Housing 16.24% 7.87% 7.74% 7.44% 7.47% 10.36% 5.39% 0%
Clothing & 4.86% 8.34% 5.82% 5.01% 3.07% 4.46% 4.44% 2.86%
Shoes
Power 6.73% 10.51% 8.00% 8.16% 6.27% 7.25% 6.81% 8.32%
Basic 1.90% 3.14% 2.29% 2.54% 2.67% 2.72% 2.37% 3.73%

Telephone
Service
Insurance 0% 1.22% 0.13% 0.37% 0.11% 1.06% 2.04% 2.97%
Vehicle or 3.35% 3.30% 3.94% 4.23% 5.62% 5.05% 5.01% 10.34%
Other
Transportation
Gift-Giving 1.40% 2.03% 2.51% 2.95% 4.15% 2.87% 3.06% 3.83%
Charitable 0.79% 1.86% 1.18% 1.19% 1.09% 1.48% 1.43% 1.20%
Contribution
Leisure And 4.61% 5.09% 4.23% 3.87% 3.72% 4.15% 4.20% 5.77%
Entertainment
Education 11.98% 10.81% 13.60% 12.33% 13.61% 12.70% 12.00% 13.92%
Internet 3.89% 2.07% 3.65% 4.63% 4.67% 5.52% 5.70% 3.46%
Family 4.31% 1.38% 4.83% 4.78% 2.35% 5.88% 6.50% 5.38%
Vacation/
Travel
Luxuries 0.64% 0.53% 0.48% 0.79% 0.88% 0.67% 0.78% 0.74%
Savings 1.26% 1.38% 2.45% 3.43% 3.98% 6.33% 10.66% 13.74%
32
Table 2.4 shows the Percentage Distribution of Income of Spending Pattern of
Respondents in terms of Highest Educational Attainment. This indicates that the lower the
educational attainment of the family head has the higher percentage of income distribution in
terms of food at home at 33.37% of the respondents are elementary undergraduate while
19.67% of the respondents are post-graduate. Housing at 16.24% are elementary
undergraduate while 0% are post graduate. Table 2.4 indicates that the higher the education
attained by the respondents the higher the percentage distribution in terms of vehicle and other
transportation where 3.35% are elementary undergraduates while 10.34% are post-graduates,
insurance at 0% are elementary undergraduate while 2.97% are post graduates, Percentages
distribution of income on savings where only 1.26% are elementary undergraduates while
13.74% are post-graduates who saves for future purposes.
33
Table 2.5
Ownership of Residence
Income Distribution Ownership of Residence

Own Rent Rent free with Consent Rent Free
without
Consent
Food at Home 30.94% 27.92% 32.67% 32.61%
Water 4.96% 4.05% 5.13% 4.74%
Housing (Rent or Mortgage) 0.14% 22.02% 0.31% 0%
Clothing & Shoes 4.69% 4.04% 5.72% 6.09%
Power (Electricity, Gas, LPG) 8.02% 6.40% 8.35% 9.33%
Basic Telephone Service 2.56% 2.37% 8.87% 2.20%
Insurance 1.50% 0.52% 0.06% 0%
Vehicle or Other Transportation 5.00% 4.27% 4.71% 3.98%
Gift-Giving 3.28% 2.37% 3.15% 3.88%
Charitable Contribution 1.44% 1.02% 1.50% 0.98%
Leisure And Entertainment 4.10% 3.74% 4.50% 5.24%
Education 13.43% 10.67% 1.42% 11.45%
Internet 5.42% 3.40% 5.88% 6.78%
Family Vacation/Travel 5.47% 3.73% 4.00% 7.71%
Luxuries 0.93% 0.51% 0.74% 0.53%
Savings 8.11% 2.96% 4.00% 4.16%
Table 2.5 represents that 27.92% of the respondents who rent are most likely to spend
less in terms of food at home and 4.05% percentage distribution in terms of water, while 22.02%
of the respondents are those family who spend their income for the rent of the house, the rest
percentage income distribution where 0.14% are those who have their own house, 0.31 who
rent free with consent and 0% are those family who rent free without the consent of the owner.
Family who rent are likely to save less at only 2.96% while those family who have their own
house saves more at 8.11%.
34
Table 2.6
Monthly Income of the Family
Income Monthly Income of the Family

Distribution
Between PHP118,
PHP 7,891 - PHP
Income Between
351.00- PHP157,
Between PHP31,
561-PHP78, 900
PHP157, 801.00
Poor- Less than
Upper Income
Income Between
PHP 78, 901-

PHP118, 350
Upper Middle
Rich At least
Middle class
Low Income
PHP 7,890
Between
15, 780
Lower middle
800.00
PHP15, 781-
PHP31, 560
Food at Home 43.01% 35.64% 23.28% 15.20% 0 0 0
Water 5.08% 4.30% 5.06% 1.72% 0 0 0
Housing (Rent or 6.30% 7.86% 8.86% 1.43% 0 0 0
Mortgage)
Clothing & Shoes 4.08% 4.38% 5.30% 3.91% 0 0 0
Power (Electricity, 8.13% 7.46% 7.71% 5.01% 0 0 0
Gas, LPG)
Basic Telephone 1.81% 2.72% 2.60% 2.84% 0 0 0
Service
Insurance 0% 0.28% 1.25% 3.38% 0 0 0
Vehicle or Other 3.81% 4.89% 4.69% 4.52% 0 0 0
Transportation
Gift-Giving 2.67% 3.19% 2.93% 2.17% 0 0 0
Charitable 0.36% 1.03% 1.79% 1.01% 0 0 0
Contribution
Leisure And 4.64% 3.79% 4.00% 6.79% 0 0 0
Entertainment
Education 1.60% 3.46% 7.01% 4.81% 0 0 0
Internet 0.72% 0.86% 0.89% 2.12% 0 0 0
Family 1.25% 3.05% 7.55% 10.13% 0 0 0
Vacation/Travel
Luxuries 0.68% 0.81% 0.73% 0.46% 0 0 0
Savings 0.83% 3.87% 6.00% 27.93% 0 0 0
This table presents that in terms of food at home, 43.01% are poor, 35.64% are low
middle, 23.26% are lower middle and 15.20% are middle class. Percentage distribution in terms
of water, 5.08% are poor while 1.72% is middle class. This indicates that the higher the amount
of the Monthly income, the lower the percentage distribution allocates for food at home and
water. The percentage distribution of income of spending pattern in terms of insurance, 0% are
35
those respondents that is poor while 3.338% are middle class. 0.72%, Percentage distribution
on internet are poor, increased to 2.12% of the middle class family.. In terms of savings, 0.83 %
are poor while 27.93% for middle income, indicates that the higher the amount of the monthly
income the higher the percentage of income distribution in terms of insurance, education,
internet, family vacation/travel and savings of the respondents.
36
37
The table above shows the Percentage Distribution of Income of Spending Pattern of the
Respondents in terms of Sources of Family Income. For the business, food at home has the
highest percentage distribution at 31.36%, followed by education at 15.96% and lowest at
0.52% are luxuries and charitable contribution. The family whose sources of income like
business/investment are 27.92% in terms of food at home has the highest percentage
distribution, followed by education at 14.25% and lowest is housing at 0%. For the government
assistance, food at home has the highest percentage distribution at 36.64%, followed by power
at 10.41% and lowest is insurance at 0%. Other sources of family income are government
assistance/ retirement indicates that 20.02% are housing with the highest percentage
distribution, followed by food at home at 17.98% and the lowest are insurance, luxuries and
savings at 0%. For the investment, savings has the highest percentage distribution at 34.76%,
followed by food at home at 16.96% and lowest are housing, charitable contribution and luxuries
at 0%. For the retirement, food at home has the highest percentage distribution at 40.01%,
followed by education at 11.49% and lowest is savings at 0%. For the wages and salary, food at
home has the highest percentage distribution at 30.09%, followed education at 12.30% and
lowest is insurance at 0.43%. For the wages and salary/business, 27.95% are food at home,
followed by education at 11.21% and lowest is insurance at 0.78%. For the wages and
salary/government assistance, food at home has the highest percentage distribution at 32.47%,
followed by education at 13.34% and lowest is insurance at 0%. For the wages and salary/
investment, food at home has the highest percentage distribution at 16.43%, followed by
education at 13.88% and lowest are housing and insurance at 0%. For the wages and
salary/retirement, food at home has the highest percentage distribution at 24.70%, followed by
family vacation/travel at 18.54% and lowest is charitable contribution at 0.81%.
38
Table 2.8
Types of Households
Income Distribution Ownership of Residence
Neutral Family Extended Two or more Non-
Family Related Family
Food at Home 30% 31.28% 24.63%
Water 4.47% 4.96% 8.72%
Housing (Rent or Mortgage) 7.51% 8.63% 10.71%
Clothing & Shoes 4.92% 4.33% 4.04%
Power (Electricity ,Gas, 7.45% 7.86% 8.73%
LPG)
Basic Telephone Service 2.58% 2.40% 3.38%
Insurance 0.63% 1.09% 2.93%
Vehicle or Other 4.78% 4.31% 3.79%
Transportation
Gift-Giving 3.07% 2.73% 1.85%
Charitable Contribution 1.32% 1.22% 0.67%
Leisure And Entertainment 4.22% 3.82% 4.53%
Education 12.69% 12.33% 8.21%
Internet 4.79% 4.91% 4.16%
Family Vacation/Travel 5.22% 4.79% 5.80%
Luxuries 0.75% 0.73% 0.39%
Savings 5.58% 4.60% 3.47%
Respondents in terms of Types of Households. Food at home has the highest percentage
distribution are extended family at 31.28%, Neutral family at 30% and two or more Non-Related
Family at 24.63%. Thos shows that the higher the number of the family members the more
percentages goes to food. Water of the neutral family are 4.47% increased to 8.72% on the two
or more non-related family. On the other hand, percentages distributions on gift giving are
3.07% of the neutral family decreased to 1.85% of the two or more non-related family. In terms
of savings 5.58% are neutral family decreased to 3.47% on the two or more non-related family.
39
Table 2.9
Total Number of Family Member
Income Distribution Total Number of Family Member
3 to 5 6 to 8 9 to 11
Food at Home 30.76% 29.74% 24.66%
Water 4.52% 5.06% 4.28%
Housing (Rent or Mortgage) 8.06% 7.48% 7.26%
Clothing & Shoes 4.68% 4.72% 6.40%
Power (Electricity ,Gas, 7.32% 8.28% 6.84%
LPG)
Basic Telephone Service 2.51% 2.67% 1.98%
Insurance 0.63% 1.09% 1.84%
Vehicle or Other 4.52% 4.95% 4.17%
Transportation
Gift-Giving 3% 2.85% 1.94%
Charitable Contribution 1.17% 1.52% 1.45%
Leisure And Entertainment 4.25% 3.81% 3.56%
Education 13.01% 11.57% 10.69%
Internet 4.34% 5.94% 7.12%
Family Vacation/Travel 4.94% 4.98% 10.58%
Luxuries 0.72% 0.81% 0.47%
Savings 5.57% 4.42% 6.74%
Respondents in terms of Total Number of Family Member. As seen on the table, Food at home
has the highest income distribution of family from 3 to 5 members are 30.76% decreased to
family from 9 to 11 members are 24.66%. This shows that the higher the number of family
members the less the percentage distribution allocates to the specific spending pattern, the
lesser the number of the family members the higher the amount goes to specific needs and
wants of the family. On the other hand, the family with 9 to 11 members has 10.58% compared
to 4.98% of 6 to 9 members and 4.94% of 3 to 5 members, indicates that the higher the number
of family members the more amount spends to family Vacation/Travel.
40
Table 3.1
Spending Behavior of the Respondents
Respondents Spending Behavior Weighted Verbal
Mean Interpretation
Do you plan a budget list before going to the grocery? 3.67455621 Above Average
Do you always cook healthy food that will nourish the family and 3.58875740 Above Average
provide them with three meals a day?
Do basic home cook meals fulfill your family needs for food? 3.57692308 Above Average
Do you tend to buy cheap brand of clothing than expensive one? 3.46153846 Above Average
Does your family ever eat out? (Restaurants, fast food 3.25443787 Average
restaurants, cafe etc,.)
Does buying clothes/shoes, is included in your list when going to 2.13313609 Below Average
grocery?
Do you consider the electric consumption when buying 3.51479290 Above Average
appliances?
Do you use of public transportation instead of using own vehicle? 4.24260355 Above Average
Do you spend your money on insurance (life, home, health)? 1.51775148 Poor
Do you repair items that already use instead of buying new one? 3.63017751 Above Average
Do you always buy load for your phones services? 3.50000000 Above Average
Do you allot money for emergency purposes? 2.85207101 Average
Are you able to spend my money to rent a cable for a TV 2.11834320 Below Average
channels?
Do you give extravagant gift for someone? 2.11834320 Below Average
Do you lend money to your friends? 2.45266272 Below Average
Do you spend money on grooming products like cosmetics gel, 2.84319527 Average
41
etc.
Do you spend money for tithes or donations? 2.49704142 Below Average
Does your family go to malls, picnics in the park? 3.26035503 Average
Are you able to buy books for the studies your kids? 3.29289941 Average
Do you spend more money for the tuition fee your kids? 3.67455621 Above Average
Are you able to hire a tutor for the studies of your kids? 1.57396450 Poor
Are you able to get a service for your kids to go to school? 2.05029586 Below Average
Do you spend money for the school field trips for your kids? 3.11242604 Average
Do you go to gyms/ salons? 2.28402367 Below Average
Do you spend money to watch movies every weekends with your 2.24260355 Below Average
family?
Are you able to buy expensive gadgets even if it is not needed? 1.86094675 Below Average
Do you spend more than you earn? 1.72485207 Below Average
Do you love shopping? 2.12721893 Below Average
If you like something, do you think twice before spending? 3.87869822 Above Average
Do you have plans in going out of town vacations/trips? 3.10650888 Average
Grand Weighted Mean 2.83885602 Average
Table 3.1 shows the spending behavior of the respondents when it comes to their
spending habits. Most of the Questions were scored Below Average and these questions mainly
are about the respondents wants and ten of the questions are scored Above Average. Overall
the spending behavior of the respondents when it comes to their spending habits is average
with a grand weighted mean of 2.83885602.
42
Table 4.1
Degree of Relationship between Respondents’ Monthly Income with their actual
Spending Pattern
Respondents’ Spending R= Value Verbal Interpretation
Pattern
Food at Home 0.659939 Moderately high relationship
Water 0.342694 Moderately low relationship
Housing (Rent or Mortgage) 0.21047 Moderately low relationship
Clothing & Shoes 0.380934 Moderately low relationship
Power (Electricity, Gas, LPG) 0.552751 Low relationship
Basic Telephone Service 0.478553 Low relationship
Insurance 0.451836 Low relationship
Vehicle or Other Transportation 0.506235 Low relationship
Gift-Giving 0.397144 Moderately low relationship
Charitable Contribution 0.442161 Low relationship
Leisure And Entertainment 0.781235 Moderately high relationship
Education 0.553352 Low relationship
Internet 0.553694 Low relationship
Family Vacation/Travel 0.62253 Moderately high relationship

Luxuries 0.376092 Moderately low relationship
Savings 0.683028 Moderately high relationship
The table above shows the Degree of Relationship between Respondents’ Monthly
Income with their actual Spending Pattern. Leisure and entertainment has the highest r=value
with 0.781235, followed by savings with a 0.683028 r=value and housing has the lowest r=value
with 0.21047.
43
CHAPTER V
SUMMARY, FINDINGS AND RECOMMENDATION
This chapter shows the summary of findings, it includes the results of the survey or data
gathered by the researchers from their respondents. It also shows the conclusion of the
researcher from the data they gathered and recommendation of the researchers for the
respondents.
Summary of Findings
This study shows the spending pattern and behavior of the selected residents in
barangay balong bato, the researcher conducted this study to become one of the learning
models for the people to improve and develop their allocation of their income and to monitor
their spending pattern and behavior. The researcher used the Systematic Random Sampling
to get the 338 respondents from all the residents living in the Barangay BalongBato. After
getting the accumulated number of respondents that the researcher must survey, the researcher
found out the following results.
What is the demographic profile according to Gender, Age of the head of the family, Highest
Educational attainment, ownership of their residence, Source of family income, Types of
Households, Monthly Income of the Family and total number of family members?
Table 1.1 shows that majority of the respondents are female family head with 51.18%
than male family head with 48.82%.
44
Table 1.2 shows that most of the respondents ages were 31-40 with 37.87%, followed by
ages 41-50 with 26.63%, ages 21-30 with 19.53%, ages 51-60 with 11.24% and ages 61 and
above years old with 4.73%.
Table 1.3 shows that most of Head of the Family in terms of the Educational Attainment
were high school graduates with 41.72%, followed by college undergraduates with 21.01%,
college graduates with 17.46%, high school undergraduates with 8.28%, vocational with 7.10%,
elementary undergraduates with 2.37%, elementary graduates with 1.18%, and last is post
graduates with 0.89% of the total respondents in the barangay balongbato.
Table 1.4 shows that most of the participants have their Owned house with 39.65%,
followed by households that were renting with 35.21%, participants who were Rent free with
consent of the owner with a 20.41% and the lastly who Rent house free without consent of the
owner with 4.73% .
Table 1.5 shows that most of the family living in barangay balong bato is from the lower
middle class with a frequency distribution of 45.56%, followed by low income class with a
frequency distribution of 36.98%, poor class with a frequency distribution of 13.91%, last is the
middle class with a frequency distribution of 3.55%. The upper middle income class, upper
income class and rich class got zero frequency distribution.
Table 1.6 shows Wages and salary is the most source of income of the family head with
62.43% followed by Business with 13.02%, Wages and Salary/Government Assistance with
7.69%, Wages and Salary/Business with 7.10%, Government Assistance with 2.66%,
Retirement with 2.07%, Business and Investment with 1.48% and Government
Assistance/Retirement and Investment with both 0.59%.
45
Table 1.7 shows majority of the participants was nuclear family with 70.41% followed by
Extended family with 28.40% and two or more non-related family with 1.18% with the total of
100%.
Table 1.8 shows that the percentage distribution of the total number of family members
ranges from 3-5 is 68.93%, followed by the 28.40% of the total number of family members from
6-8 and 2.66% of the total number of family members from 9-11.
What is the percentage of the family’s income distribution according to, Physiological needs:
Food at home, water, housing (rent or mortgage payment), clothing & shoes (non-designer
brand essential wear), Safety and Security needs: Power (electricity, gas: LPG), basic
telephone service (cell phone, load-prepaid/postpaid), Insurance (health, home, life), vehicle or
other transportation, Love and Belongingness: Gift-giving, charitable contribution, leisure and
entertainment, Esteem needs: Education, Self-actualization: Internet, family vacation or out of
town, luxuries(jewelries/gadgets) and Savings
Table 2.1 shows that Food at home has the highest percentage distribution of the
spending pattern of the respondents with 30.31%, followed by the education with 12.54%,
housing with 7.87%, power with 7.58% , savings with 5.27%, family vacation/travel with 5.10%,
internet with 4.87, clothing and shoes with 4.74%, water with 4.66%, vehicle or other
transportation with 4.64%, leisure and entertainment with 4.11%, gift giving with 2.96%, basic
telephone service with 2.54%, charitable contribution with 1.28%, and last is the insurance with
.79%.
46
terms of Gender. For male gender, food at home has the highest percentage distribution with
31.13%, followed by education with 13.12% and lowest is insurance with 0.69%. As for the
female gender, food at home also has the highest percentage distribution with 29.52% followed
also by the education with 11.98% but the lowest is luxuries with 0.77%.
terms of Family Head. For the family head ages 21 to 30, food at home has the highest
percentage distribution with 31.18%, followed by education with 12.94% and the lowest is
insurance with 0.62%. For the family head ages 31 to 40, food at home has the highest
insurance 0.79%. For the family head ages 41to 50, food at home has the highest income
distribution with 29.00%, followed by education with 12.66% and the lowest is luxuries with
0.70%. For the family head ages 51 to 60 foods at home has the highest percentage distribution
with 31.51%, followed by education with 14.4% and the lowest is insurance with 0.41%. For the
family head ages 61 and above, food at home has the highest percentage distribution with
30.90%, followed by family vacation/ travel with 13.08% and the lowest is luxuries with 0.81%.
Table 2.4 shows the Percentage Distribution of Income of Spending Pattern of
Respondents in terms of Highest Educational Attainment. For the elementary under graduate,
food at home has the highest percentage distribution with 33.37%, followed by housing with
16.24% and lowest is insurance with 0%. For the elementary graduate, food at home has the
highest percentage distribution with 33.96%, followed by education with 10.81% and last is
luxuries with 0.53%. For the high school under graduate, food at home has the highest
percentage distribution with 30.56%, followed by education with 13.60% and lowest is insurance
with 0.13%. For the high school graduate food at home has the highest percentage distribution
47
with 33.03%, followed by education with 12.33% and lowest is insurance with 0.37%. For the
vocational food at home has the highest percentage distribution with 36.12%, followed by
education with 13.61% and lowest is insurance with 0.11%. For the college under graduate,
food at home has the highest percentage distribution with 25.21%, followed by education with
12.70% and lowest is luxuries with 0.67%. For the college graduate, food at home has the
highest percentage distribution with 25.56%, followed by education with 12.00% and lowest is
0.78%. Lastly is for the post graduate, food at home has the highest percentage distribution with
19.67%, followed by education with 13.92% and lowest is housing with 0%.
Table 2.5 shows the Percentage Distribution of Income of Spending Pattern of the
Respondents in terms of Ownership of Residence. For the household who have their own
house, Food at home has the highest percentage distribution with a 30.94%, followed by
education with 13.43% and the lowest percentage distribution is housing with 0.14%. Next, for
the household who rent, food at home has the highest percentage distribution with 27.92%,
followed by housing with 22.02%, and the lowest percentage distribution is the luxuries with
0.51%. Then, for the household who rent free with consent, food at home has the highest
income distribution with 32.67%, followed by basic telephone services with 8.87% and the
lowest percentage distribution is the insurance with 0.06%. Lastly, the household who rent free
without consent, food at home has the highest income distribution with 32.61%, followed by
education with 11.45% and the lowest percentage distribution is the insurance with 0%.
Table 2.6 shows the average spending pattern of households in Barangay Balong Bato
in five ranges of monthly income for ranges P 4,000 to P 16,650 food at home is on top of the
distribution with 37.06%, followed by Power with 7.60%, and lowest is the Insurance with 0.24%.
As for the range P 16,651 to P 29,300 Food at Home also takes the highest percentage with
22.94% followed by Housing rent with 9.40% and Luxuries as the lowest distribution with 0.75%
48
while with Ranges P 29,301 to P 41,950 Food at Home takes the largest percentage with
18.90% and Basic Telephone Services has the lowest percentage with 0.42%. For the range P
41,951 to P 53,600, 15.58% of the income goes to Savings followed by Food at Home with
15.58% and the least percentage is allotted to Charitable Contribution with 0.87%. For ranges
53,601 and above, Savings takes the largest percentage of the distribution with 20.61% and
followed by Family Vacation with the percentage of 16.08% while Luxuries has the lowest
percentage of 0.33%.
Respondents in terms of Sources of Family Income. For the business, food at home has the
highest percentage distribution with 31.36%, followed by education with 15.96% and lowest are
luxuries and charitable contribution with 0.52%. For the business/investment, food at home has
the highest percentage distribution with 27.92%, followed by education with 14.25% and lowest
is housing with 0%. For the government assistance, food at home has the highest percentage
distribution with 36.64%, followed by power with 10.41% and lowest is insurance with 0%. For
the government assistance/ retirement, housing has the highest percentage distribution with
20.02%, followed by food at home with 17.98% and the lowest are insurance, luxuries and
savings with 0%. For the investment, savings has the highest percentage distribution with
34.76%, followed by food at home with 16.96% and lowest are housing, charitable contribution
and luxuries with %. For the retirement, food at home has the highest percentage distribution
with 40.01%, followed by education with 11.49% and lowest is savings with 0%. For the wages
and salary, food at home has the highest percentage distribution with 30.09%, followed
education with 12.30% and lowest is insurance with 0.43%. For the wages and salary/business,
11.21% and lowest is insurance with 0.78%. For the wages and salary/government assistance,
49
13.34% and lowest is insurance with 0%. For the wages and salary/ investment, food at home
has the highest percentage distribution with 16.43%, followed by education with 13.88% and
lowest are housing and insurance with 0%. For the wages and salary/retirement, food at home
has the highest percentage distribution with 24.70%, followed by family vacation/travel with
18.54% and lowest is charitable contribution with 0.81%.
Respondents in terms of Types of Households. For the neutral family, food at home has the
highest percentage distribution with 30%, followed by education with 12.69%, and lowest is
insurance with 0.63%. For extended family, food at home has the highest percentage
distribution with 31.28%, followed by education with 12.33% and lowest is luxuries with 0.73%.
For the two or more non related family, food at home has the highest percentage distribution
with 24.63%, followed by housing with 10.71% and lowest is luxuries with 0.39%.
Respondents in terms of Total Number of Family Member. For the family ranging from 3 to 5,
Food at home has the highest income distribution with 30.76%, followed by education with
13.01%, and the lowest is insurance with 0.63%. For the family ranging 6 to 8 food at home has
the highest percentage distribution with 29.74%, followed by education with 11.57% and the
lowest is luxuries with 0.81%. For the family ranging 9 to 11, food at home has the highest
luxuries with 0.47%.
In general, what is the behavior of the respondents when it comes to their spending habit?
50
Table 3.1 shows the spending behavior of the respondents when it comes to their
spending habits. Most of the respondents received a below average score on questions which
focus on buying clothes/shoes that is included in their list when going to grocery with
2.13313609, able to spend their money to rent a cable for TV channel with 2.11834320, giving
extravagant gift for someone with 2.11834320, lend money to their friends with 2.4566272,
spend their money for tithes or donations with 2.49704142, able to get a service for their kids to
go to school with 2.05029586, go to gyms/ salons with 2.28402367, able to buy expensive
gadgets even if it is not needed, 1.86094675, spend more than they earn with 1.72485207 and
love shopping with 2.12721893. Overall the spending behavior of the respondents when it
comes to their spending habits is average with a grand weighted mean of 2.83885602.
What is the degree of relationship between the respondents monthly income with their actual
allotment on the following?
Table 4.1 shows the Degree of Relationship between Respondents’ Monthly Income with
their actual Spending Pattern. Leisure and entertainment has the highest r=value with 0.781235,
followed by savings with a 0.683028 r=value and housing has the lowest r=value with 0.21047.
Conclusion
Based on the findings of this study, the researcher found out with the following
conclusions and generalizations.
Income plays a vital role to meet the needs of families, having enough income enable
the head of the family provide the need and wants of the members of the families. Some head
of the family having a difficult time in managing their finances in terms of where do they allocate
their income distribution based to their daily needs and wants. Allotted amount of money that
have to set for expenses may help lessen of their spending. The way they spend their earnings
51
may be subjected to a different accommodation cost to be indexed to provide a more
personalized approach to salary calculation. Most of the head of the family were able to cook
healthy food that will nourish the family and feed them three times a day. Family heads allocate
a large amount of their income mostly on the Physiological needs specifically on the food and
only a few family head members are providing some expenditure for their insurance. Most of the
family heads don’t prefer to always buy clothes, eating outside of their houses and renting a
cable for a TV channel, they also don’t prefer going to malls and shopping or buying some new
expensive gadgets and they prefer repairing the items that already use instead of buying new
one and if that item or appliances can’t be repaired anymore they always consider the electric
consumption whenever they buying new one. Family head provides a large expenditure only on
the tuitions for the education of their dependants in exchange they don’t provide that much
expenditures on buying books, spending money on field trip and providing some service vehicle
for their children going to school to be able to budget their education finances. With the help of
controlling money, family head should know how to control their spending habits if not then they
would end up in a lot of trouble. The family income is extremely important to a family budget so
that families should plan their budget and change their spending habits to have better budgeting
finances.
With all the datas that the researcher gathered, the researccher also concluded that this
study shows that Maslow’s hierarchy of need is applicable to the respondents’ spending pattern,
because the family become satisfied in all of the level from the physiological needs to self
actualization. Maslow perceived that human needs could be arranged in a hierarchy in order to
sustain the important requirements for survival.
52
Recommendation
The researchers recommend for the future researchers that the data gathered in this
study can be used as a guide and references on how households distribute their income to their
different needs and wants and a point of start for the future researchers intend to do a study
related on the spending pattern and behavior of the households. Since this study is all about
spending and allocation, it will help the future researchers to improve more knowledge on how
to spend and use their income wisely.
The data gathered or survey questionnaires that answered by the respondents, the
researchers recommend that they may use the survey that they answered to be a guide on how
they spend their money. It helps to know if the respondents had over-spend the money in a
certain needs and if they need to reduce it. It also help to know what are the needs that the
family should focus more than the other needs that they are spending and to increase and
improve the understanding and awareness of having good financial plan and distribution for the
family income distribution. Developing and planning guidelines for budgeting the family
expenditure allows to spend what is really needed an in order to sustain or distribute their
income to different expenditure they have to save at least small percent of their income from at
least 5-10% of their monthly income. Though it is difficult to set aside or keep money if we know
that our money on hand is still not enough to cover up all the expenses, but it is not bad to save
money for the future needs.
53
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58

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CHAPTER I

THE PROBLEM AND ITS BACKGROUND

may spend most of its money on food, clothing and shelter.

able to exercise on their daily living.

kind of need, but the need will differ among individuals.

hierarchy in order to sustain the important requirements for survival.

Safety and Security needs

Biological and Physiological needs

Figure 1. Maslow’s Hierarchy of needs

Based on Luke Landes on Consumerism Commentary ties that psychology theory to

1. What is the demographic profile of the respondents as to:

A. Gender of the Family Head

B. Family Head Age

C. Highest educational attainment of the Head of the Family

E. Monthly Income of the family

F. Source of Family Income

H. Total Number of Family members

2. What is the percentage of the family’s income distribution according to:

A. Physiological needs: Food at home, water, housing (rent or mortgage

payment), clothing & shoes (non-designer brand essential wear).

service (cell phone, load-prepaid/postpaid), Insurance (health, home, life),

vehicle or other transportation

C. Love and Belongingness: Gift-giving, charitable contribution, leisure and

D. Esteem needs: Education

E. Self-actualization: Internet, family vacation or out of town,

(Very frugal, frugal, average, spendthrift, or very spendthrift)?

actual allotment on the following?

SCOPE AND LIMITATION OF THE STUDY

respondents do not cooperate or do not have time to accept the survey.

SIGIFICANCE OF THE STUDY

exercise better habit in spending.

similar to this study.

needs and desires.

Consumption. An estimated amount of goods and services that respondents wish to

purchase for the immediate wants and needs purposes.

Esteem needs. Family members spend money for educational purposes.

Expenditure. Is the purchases made by households and individuals to fulfill everyday

needs and wants.

contribution, leisure and entertainment.

town, luxuries (jewelries/gadgets), including savings.

Spendthrift. The way respondents spend money in a careless or wasteful way.

needs and wants.

Two or More Non-related Families/Person. A household that composed of two or

the goods and services.

REVIEW OF RELATED LITERATURE AND STUDIES

way of allocation of income.

SPENDING PATTERN OF FAMILIES

The study of Stavros A. Drakopoulos and KaterinaGrimani shows that Maslow’s of

approach to happiness of individual. While on the income-happiness approach income is related

have achieved their fullfilment.

Gender of the Family Head

headed family goes to housing expenditure followed by transportation and communications

IndrėPikturnienė and SigitasUrbonavičius entitled “Spending and Saving Patterns of two

The bureau’s official measure of income is “money income.” It includes earnings,

Social Security benefits, unemployment compensation, and veterans’ payments). Money

Description on Different Needs

compromise getting a good education than getting to wear lesser clothes.

order of priority (Melanie Pinola, 2013).

Among these circumstances, consumer units might depend on savings or credit to

SPENDING BEHAVIOR OF HOUSEHOLDS IN THE PHILIPPINES

The impact of household income changes the consumer spending behavior.

remaining is shared to communication, savings, transportation, clothes and others. In a P 20,

used, validity of the instrument, and the procedures of gathering data.

respondents by the used of research instruments such as survey questionnaires.