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Chapter 1


Background of the study

In the recent years, the Board of Executive Directors of the World Bank has adopted

two ambitious goals: First is to end global extreme poverty and second is to promote shared

prosperity in every country in a justifiable way. This then implies reducing the poverty

headcount ratio from 10.7 percent globally in 2013 to 3.0 percent by 2030 and fostering

the growth in the income or the consumption expenditure of the poorest 40 percent of the

population (the bottom 40) in each country. Both of these goals are part of a wider

international development agenda and are intimately related to United Nation’s Sustainable

Development Goals 1 and 10, respectively, the first goal which is, “No poverty,” and the

tenth goal is, “Reduce inequalities,” which have been adopted by the global community

(World Bank Group, 2016).

This Conditional cash transfers (CCTs) are becoming an increasingly popular tool

for poverty alleviation. Drawing on lessons learned from programs in a variety of countries.

CCTs are now found throughout the developing world. As implied by their name, this

conditional cash transfer program gives cash transfers to households that meet specific

conditions or undertake certain actions, such as ensuring that school-age children go to

school or that preschool children regularly see a nurse or doctor (Szekely 2006; Samson

2006; in Freelander 2007).

Several evaluations show that these programs, the CCTs, are technically feasible in

that the main stated goals of the programs are actually met in practice and are politically

acceptable in that successive governments are willing to continue and even expand

program coverage. These results have been a source of encouragement for researchers and

policymakers in the development community (Alaii, et.al. 2003, cited in Das, J., 2005).

The primary goal of it is to “break the intergenerational cycle of poverty by

fostering change in behavior among parents to invest in their children’s (and their own)

future (health, nutrition, education) because schooling and high malnutrition rate are

strongly associated with poverty cycle. The CCT Program particularly aims to improve the

preventive health care of pregnant women and young children; increase

enrolment/attendance of children at elementary level; reduce incidence of child labor; raise

consumption of poor household on nutrient dense foods; encourage parents to invests in

their children’s (and their own) future; and encourage parents‟ participation in the growth

and development of young children as well as the involvement in the community (Sealza,


In addition the Pantawid Pamilyang Pilipino Program (4Ps) is the version of

conditional cash transfer program here in the Philippines. The program’s initial focus is on

the conditions that the 4Ps household beneficiaries need to comply in able to sustain the

assistance. The 4Ps is a social program that entails monetary and non-monetary transfers

to the poor or poorest families who have school-aged children on the condition that they

meet the program’s terms that aimed at improving their capacities (Cecchini and

Madariaga, 2011). Brazil and Mexico were the first countries that implemented the 4Ps

program. Moreover, based on the Department of Social Welfare and Development Studies

(DSWD) primer, the 4Ps is a poverty reduction and social development strategy of the

national government. It provides cash transfers to extremely poor households to improve

their health, nutrition and education. The program specifically targeted the poor families

with children aged 0-14. The two-main objectives of the program are social assistance and

social development.

This problem, thus, in need to be studied in order to know where the budget of the

government goes and how the beneficiaries spend the financial assistance. Furthermore,

this study aims to identify whether the program is properly implemented and this is finally,

for the beneficiaries, that they would know how to appropriate and utilize the financial

assistance wisely.

Thus, this study will be conducted with the end goal to assess the spending patterns

of 4P’s dependents in Southland College, Kabanakalan City, Negros Occidental for the

academic year 2018 - 2019.

Statement of the problem

This study aims to assess the spending patterns of 4P’s dependents of

Southland College Senior High School Students in Kabanakalan City, Negros Occidental.

Specifically, the study attempts to answer the following objectives:

1. What is the profile of the respondents in terms of strand, family profile: family size,

monthly income, and sources of finances?

2. What are the financial priorities of 4P’s dependents when compared and grouped

according to profile? and

3. Is there any significant difference between the spending patterns of 4P’s dependents

of Southland College Senior High School students when grouped according to

demographic profile?


There is no significant difference in the spending patterns of Southland College

SHS students when they are compared according to their demographic profile.

Theoretical Framework

This study is based on the Bucket Theory of Financial Management advanced by

Ann Henderson (Kyengo, C. M. 2012). Based on the theory, to become financially stable

is not an impossible goal. Through a common sense approach, you can achieve this

aspiration by working at it systematically.


The Bucket Theory has five buckets, the first bucket represents basic needs;

food, shelter, clothing, and transportation. The second bucket represents an

emergency fund and savings plan. The third bucket represents a family’s insurance

needs, including life, health, and property protection. The fourth bucket represents

quality of life. The fifth bucket represents investing for the future. The water that

flows from bucket to bucket represents the resources a family has (Malaluan, A. Q.,

et. al., 2018).

The theory asserts that in order to have a better financial base for a family, each

bucket must be filled before resources are sidetracked to the next one. The first resources

are used to provide basic needs. As the income increases and money is left after basic

needs are met, the extra is used to develop an emergency fund and begin a regular savings

plan. When saving is regular and the emergency fund complete, the next step is to purchase

adequate insurance to protect the family’s health, income, and property (Chetambe, H. N.


When adequate insurance coverage is provided, extra money is then diverted to

building quality of life. Quality of life focuses on acquiring some of the wants, extras, and

frills. The last step is to channel the extra money available into investments that will

provide a secure future for the family. This might include money for children’s education,

retirement, or family goals (Rowe, B. & Hansen, K.W., 1990).

The first bucket theory will be utilized by the researchers, because it pertains

to basic needs which includes the food, shelter, clothing and transportation and the fifth

bucket theory pertains to the investment for the future. The first bucket theory is to be

utilized in the study since the objective of the study is to assess the financial priorities of

the dependents in terms of their basic needs.


The Bucket Theory of Financial Management is an approach to planning a

family’s financial future. It provides a systematic way for families to set and reach

financial goals and it helps the family build a sound financial foundation. Thus,

makes this theory fit to assess the spending patterns of the Southland College 4p’s


Conceptual Framework

Figure 1.1 below shows the Pantawid Pamilyang Pilipino Program which is a

conditional cash transfer (CCT) program which provides cash to beneficiary households,

subject to compliance with program conditionalities. From the beneficiaries the fund is

channeled into the dependents. Through the dependents, survey questionnaires will be

given. The data and information will determine the spending patterns of the 4P’s

beneficiaries through their dependents after the assessment and analysis of the data and


Figure 1.1

Conceptual Framework of the Study

Conditional Cash Transfer (CCT)

Pantawid Pamilyang Pilipino Program (4Ps)

4Ps Beneficiaries

4Ps Dependents

Survey Questionnaire

Assessment of spending patterns of 4P’s dependent


Significance of the Study

4P’s Dependents. The findings of the study will help them assess their financial

management and spending patterns.

DSWD (Department of Social Welfare and Development). The findings of this

study will help the said government agency to assess and give them the inkling in

organizing programs that will help the dependents in terms of financial management and

spending patterns.

Local Government Unit. The results of the study will give the LGU the insights

on how to assist and support the 4p’s dependents when it comes to their financial

management and spending patterns.

National Government. The findings of this study will help the said government

agency to assess and give them the inkling to enhance the program that will help the

dependents in terms of financial management and spending patterns.

Future Researchers. This study will be significant to those who will conduct a

study concerning the spending patterns of the 4p’s dependents, the results of the study may

serve as the background of the study.

Scope and Limitations

The study will cover and solely focus on the spending patterns of the Pantawid

Pamilyang Pilipino Program or 4P’s dependents.

The study will only limit itself on the senior high school 4p’s dependents of

Southland College, Kabankalan City for the academic year 2018 - 2019.

Definition of Terms

Pantawid Pamilyang Pilipino Program. The Pantawid Pamilyang Pilipino

Program (Bridging Filipino Families Out of Poverty), 4Ps for short, has the primary

objective of providing social assistance and social development (United Nations Public

Administration Network, 2009). This program gives cash assistance that is provided to the

poor to alleviate their immediate need. Wherein the program also aims to break the

intergenerational poverty cycle through investments in human capital, specifically

education, health and nutrition (C.M. Reyes and A.D. Tabuga. 2013).

4P’s Dependents. This refers to the dependents of 4P’s benefeciaries who are

selected through the National Household Targeting System for Poverty Reduction (NHTS-

PR). The beneficiaries of the program are the poorest households as determined by the use

of the Proxy Means Test (PMT), a statistical formula that estimates household income

through the use of proxy variables indicated in the household survey forms (Department of

Social Welfare and Development, 4P’s Operational Manual, 2009). In this study, this refers

to the senior high school 4p’s dependents of Southland College of the academic year 2018

– 2019.

Spending Patterns. This refers to the expenditures of the goods and services

bought by households in the satisfaction of their needs and wants. In this study, this refers

to the expenditures of the Southland College 4P’s dependents for the academic year 2018

– 2019.

Chapter 2


This chapter offered some related literature that had relevance to the research study

being conducted.

Based on the Department of Social Welfare and Development (2009), one factor

that is associated to the health status of an individual is poverty. Persons suffering from

poverty are getting sick easily for they are often exposed to environmental health risks.

These persons are also less well-nourished and have less access to healthcare and education

that could aid them for a healthy lifestyle. The poorest of the poor around the Philippine

archipelago and even in the province of Iloilo have the worst health condition. Indeed, the

country has been facing problems and challenges concerning poverty and inequality.

Factors that are associated to these problems may include inequalities among income

groups and unmanaged population growth. In 2012 Annual Poverty Statistics of the

National Statistical Coordination Board, reported that one in every five Filipino families

(19.7 percent) was poor. Also, PhP 5,513 should be the income of a Filipino family of five

to meet their basic needs in a month. And to stay above the poverty threshold, PhP 7,890

should be needed to meet the monthly income of basic and non-basic needs (National

Statistical Coordination Board, 2013).

Related Studies

As stated by Evans and Popova (2014), “Cash transfers have been demonstrated to

improve education and health outcomes and alleviate poverty in various contexts.

However, policy makers and others often express concern that poor households will use

transfers to buy alcohol, tobacco, or other temptation goods.” Through this argument both

researcher reviewed 19 studies with quantitative evidence on the impact of cash grants on

temptation goods, together with 11 studies that surveyed the number of respondents who

reported they use grants for temptation goods. The result has showed that there is no

significant impact or a negative significant impact of cash transfer on temptation goods.

Countries in Asia, Africa and Latin America are contributors of the data that lead to the


In the study of Attanasio and Mesnard (2006), centering on the impact of a CCT

programme on Consumption in Columbia and using the quasi- experimental approach the

study reveal that the programme is operational at greatly alleviating most consumption with

chief component in food consumption both in rural and urban sections, specifically foods

rich in proteins like milk, meat and eggs, and of cereals. Moreover the programme has the

bearing in errand for children through expenditure in education and clothing, whereas

consumption of adult goods such as alcohol and tobacco or adult’s clothing has not

considerably affected.

A related study by Goodman-Bacon and Mc Granahan (2008), vehicle purchases

and transportation spending equally crucial to job access and day to day transaction of

households likewise consistent with the EITC prowork goals has found to positively utilize

to the said expense. EITC is considered as the leading basis of civic assistance for the

inferior-income working families in the States of America. Active households (treated)

shows that suggestively higher expenditure than households where program was not

implemented (control) on areas of food, health, and clothing and meaningfully shows not

as much of spending on alcohol and tobacco. A study conducted by The Kenya CT-OVC

Evaluation Team (2012) titled “The impact of Kenya Cash Transfer Program for Orphans

and Vulnerable Children on household spending.”

Kabeer and Waddington (2015) researched on the Economic impacts of CCT

programmes using statistical meta-analysis of programme mechanism. They found out that

child labour lessened, predominantly for boys, household’s consumption and investment

increased and consumption smoothing improved. In addition, there were limited effects on

girls’ labour mixed effects on adult labour supply in beneficiary households.

Local Literature

According to Department of Social Welfare and Development, 4P’s Operational

Manual (2009), “Pantawid Pamilyang Pilipino Program is a poverty reduction measure of

the Philippine government that focuses on human capital investment in the poorest of the

poor households in the country. The Pantawid Pamilya is a developmental program that

uses conditional cash transfers to poor households based on their compliance with

verifiable conditions that have been identified and agreed upon by the beneficiaries.”

The Pantawid Pamilya is patterned on conditional cash transfer programs (CCTs)

that have been successfully executed in Latin America, where it shown that venture in

human development, for the most part in education and health, vastly advance a country’s

probabilities of reducing poverty. CCTs have also been confirmed to the positive impact

effects outcomes like in the enrolment of children in schools in Mexico, Colombia,

Bangladesh and Turkey. CCT also been confirmed to lower the incidence of child labor

between children aged 7 to 13 years old in countries of Mexico and Nicaragua, likewise

lessen the occurrence of illness among young children similarly escalation the utilization

of health facilities among young girls in Honduras and improve their nutritional standing

by increasing the typical consumption rate in food expenditure.

In the Philippines, the Pantawid Pamilya aids as a vehicle for resisting the poverty

cycle in Filipino households. It is the flagship poverty elevation project of the DSWD, and

embodies its vision, mission, and mandate. It supports the role of the DSWD as the lead

agency in advocating social welfare and development, and achieving the country’s

Millenium Development Goals on poverty reduction and empowerment of the poor namely

to: (a) Eradicate Extreme Poverty and Hunger, (b) Achieve Universal Primary Education,

(c) Reduce Child Mortality, (d) Improve Maternal Health, and (e) Promote Gender

Equality. 4Ps is fastened on the Social Welfare Reform Agenda of the DSWD through the

National Sector Support on Social Welfare and Development Reform Project (NSS-

SWDRP). It concentrates on the more needy sectors of society by providing quicker and

better social protection through enhanced and suitable models and programs.

As reviewed in Asia Pacific Journal of Multidisciplinary Research (2015),

improvement in the preventive healthcare among pregnant women and younger children,

reduction of malnourished children, increase in the enrolment of children in public schools.

Accordingly, the decrease was observable in the incidence of child labour among children.

Moreover, the results showed that the beneficiaries spent the largest amount of income on

food, followed by education, hospitalization (medicine), and savings. In the same manner,

the 4Ps program increased parents’ participation in the Family Development Sessions to

nearly 100%. Results discovered that there was ample evidence on the positive impact of

cash transfer to the beneficiaries.

According to Tutor, M. V. (2014), the study finds that among the total sample, per

capita total expenditures is not affected by the program. In per capita monthly terms, only

carbohydrates and clothing significantly increased. As expenditure shares, education and

clothing registered significant positive impact. No impact is observed on health spending,

both in per capita terms and as a share of expenditure. The impact of Pantawid Pamilya on

consumption is more pronounced among the poorest fifth of households. Results show that

households have responded to program conditionalities but there is very little room to

improve consumption of other basic needs. The recent program modification of increasing

education grants to older children and covering up to secondary school completion will

help households sustain induced behavioral changes over time.


According to Calvo(2011), the Conditional Cash Transfer (CCT) programs serves

as the government’s answers to the pressing issues regarding poverty.He defines the CCT

as programs that provide cash benefits to finance the basic needs and foster investment in

human capital to extremely poor households. These benefits are conditioned on certain

behaviors, usually related to investments in nutrition, health, and education.


Chapter 3


This chapter contains the research design, the respondents of the study, sampling

method and procedure, research instrument, validity and reliability of instrument, data

gathering procedure, and statistical treatment of the data.

Research Design

This study is a descriptive study utilizing a researcher made survey-questionnaire,

the study used the descriptive research in order to assess the spending patterns of senior

high school 4P’s dependents of Southland College. A descriptive research design describes

a situation or given state of affairs in terms of specified aspects of factors. It is used to

describe characteristics of a population or phenomenon being studied. The descriptive

method is something more and beyond just data gathering; the latter is not reflective

thinking or research. The true meaning of the data collected should be reported from the

point of view of the objectives and the basic assumption (Gray, D. E. 2013). With the use

of descriptive research in the study, the researchers believed that it served as a useful tool

which gave factual information and systematic description for the better understanding and

easy interpretation of data.

Respondent of the Study

The respondents of the study are the senior high school Pantawid Pamilyang

Pilipino Program or 4P’s dependents of Southland College for the academic year 2018 –

2019. The grantees of the Pantawid Pamilyang Pilipino Program are the subjects of the


Research Instrument

The researchers utilized a survey-questionnaire which will serve as a major data

gathering instrument in this study. The researchers used a self-made questionnaire. The

questionnaire contained sets of questions prepared to answer the problem as stated. The

questionnaire consist of two parts. The first part pertains to the respondent’s demographic

profile like age, civil status, strand, number of dependents, as well as the priorities in terms

of food, shelter, clothing and transportation, while the second part described the financial

priorities of 4Ps dependents. Before the actual administration of the self-made

questionnaire, the researchers will subject to validity testing with the experts.

Data Gathering Procedure

The researchers will send a letter to the Office of Student Affairs and Services for

the total list of senior high school 4P’s dependents in Southland College. After which, a

letter of permission will be sent to the principal’s office.

After the permission that will be granted, the researchers will personally meet with

the 4P’s dependents based on the given list by the OSAS.

When all the needed information will be available, analysis and evaluation will be


Statistical Treatment of Data

In analyzing the survey data various statistical techniques were employed. The

questionnaire is designed for statistical analysis of the respondents.

Frequency/Percentage: This will be utilized to describe the profile of the

respondents in terms of strand, family size, monthly income and sources of finances.

Weighted Mean: This will be utilized to determine the assessment of the

respondents on financial priorities of 4P’s beneficiaries through dependents.

Comparison of Means: This will be utilized to compare the assessment of the

respondents on financial priorities of 4Ps beneficiaries when grouped according strand,

family size, monthly income and sources of finances.