DAILY ALLOWANCE: How Does It Affect The

Academic Performance of Grade-11 Students

In Mandurriao National High School,

1st Semester, S.Y. 2017-2018

Submitted by :

Kimberly Nacional Failaman

Grade-12 ABM
Chapter 1 BACKGROUND AND THEORETICAL FRAMEWORK

Entering in senior high school is much difficult than junior high

school. More on paper works, research, and individual or group activities.
We, as a students are preparing for more expenses daily. On the other
hand, we don’t know how to manage our allowance and organize a budget.
To budget our allowance is one way of showing our parents that we can
trusted and we’re responsible enough. I am interested on this issue
because every one of us can relate to this topic.

According to Child, L.M. (1831) he mentioned that “The practice of

giving children allowances developed in the early twentieth century when
children’s purchases of movie tickets , candy, and toys raised concerns
about their spending habits. During of the Progressive Era (1890’s -1920’s),
allowance advocates recommended giving children a regular but fixed
supply of money to inculcate respect for money. Child had endorsed
allowances to encourage benevolence and fiscal responsibility. Progressive
era Child-rearing authorities joined a much larger chorus calling for new
money training regimes in women’s magazines and parental advice
literature”.

Money is involved in many things and every situations around the

world. Every particular individual can experience, even to see and to hold a
particular money. It could be a form of a metal coin or piece of paper, but
people value this to sustain everyday needs.

According to Felipe (2007) he stated that “A lot of the numbers of

students seems to wants what is the “in” trend , what people are doing or
using “right now”. Most teens will usually have one or two sources of
income, either allowance from their parents or a job. The answer to this
question isn’t found by looking at the income of the family or social status,
it’s more a way of living and rearing that the parents have given their
children”.
 Another study Tempo (2010) he mentioned that “Students have the
tendency to spend their allowances on their recreational activities such as,
renting a computer unit for fun and games, buying items at the shopping
mall, and spending money for the peers. Teens are active consumers in
terms of the money they spend, as well as in the influence they wield in
their families and on societal trends. Despite being raised in a period of
rapid change, they display a remarkable self-confidence in their judgment”.

We, a students that uses money everyday should be responsible on

how much money we spend in our daily lives. We should remember how to
budget our allowance or better yet we should be thrifty enough so that in a
way we’ll be able to help our parents. We should have self-awareness.
Giving allowances is not just for teens financial purposes only but yet it is
for variety of ways.

STATEMENT OF THE PROBLEM

This study will be undertaken to determine the daily allowance of

Grade-11 student in Mandurriao National High School and how does it
affect to their academic performance.

Specifically, this study will seek to answer the following questions:

1. What is the minimum amount of allowance of a Grade-11 student in

MNHS?

2. What is maximum amount of allowance of a Grade-11 student in

MNHS?

3. Do the students live by their own budget?

4. What are the advantages and disadvantages of the student’s

allowance to their academic performance?

SIGNIFICANCE OF THE STUDY

The study deals with the everyday allowance of Grade-11 students. It

seeks answers as to how and where the respondents spend their money
every day. Considering that money is an essential commodity that helps a
person to run his or her life, this study is significant for it will benefit the
students, their parents/guardian and also the teachers.

The Students. This study may help students to appraise their practice of
spending money. This will inform them where students like them generally
spend their money with. Upon this information, this study can enlighten
them on how to use their allowance wisely.

The Parents/Guardians. This study may help the parents/guardians by

providing insights and information about the allowance they give to their
children and how and where they generally use it. This study can inform
them as to how much allowance is accurate for their children to use it for
their needs in their chosen course.

The Teachers. This study may help also the teachers to teach their
students on how to manage their allowance correctly. Specifically,
Mathematics teachers are most involved on this study because they teach
more on solving problems. On the other hand, other teachers can also
helps students to provide better understanding about this topic.

DEFINITION OF TERMS

The following terms are defined conceptually/operationally for the better

understanding of the study:

1.Allowance- is an amount of something that is permitted especially within

set of regulations (Google).

In my study, it refers to the money given to students that shall be used for
daily needs and expenses; it is given by their parents or guardians.

2. Budget- is an estimate of income and expenditure for a set period of

time (Dictionary).
In my study, it refers to the financial plan and list of all planned expenses
and revenues made by the students in response to their daily and monthly
expenses.

3. Money- a current medium of exchange in the form coins and banknotes;

coins and banknotes collectively (Dictionary).

4. Unconditional Allowance -

5. Financial Literacy-

SCOPE AND DELIMITATION OF THE STUDY

This research study was limited and conducted only at the Mandurriao
National High School during the first semester of the school year 2017-
2018. The respondents of the study are the Grade-11 students from 16
years old and above. The researcher had planned to survey 100 students in
all Grade-11 courses namely: Accountancy, Business and Management
(ABM) , Technology Vocational Livelihood (TVL), Humanities and Social
Science (HUMSS) and General Academic Strand (GAS). The method of the
researcher will use in collecting information will be through using a
questionnaire. This is used to evaluate and estimate the amount of money
they spend every day and where did they spend their money on.

Chapter 2 Review Related Literature (RRL)

Each individual has asset of preferences of goods and services, which

are ranked in order of desirability. A motive is a need that is sufficiently
pressing to direct the person to seek satisfaction of the need (Kotler,2000).
A need becomes a motive when it is aroused to a sufficient level of
intensity. Such a choice is based on the consumer’s desire to satisfy his
needs. As consumer, he/she is rational given his/her taste and preferences
in the sense that he/she seeks to maximize utility (Guzman,2001). Utility
refers to the satisfaction or pleasure associated with having, using,
consuming, or benefiting from goods and services (Medina,2003). Abraham
Maslow’s hierarchy of needs theory explains what motivates an individual in
life to achieve. An individual aims to meet basic physiological needs for
hunger and thirst. When it has been meet, theory move up to other higher
targets such as housings and luxuries. Individual’s buying choices or
expenditures are also influenced by four physiological factors; motivation,
perception, learning , and attitudes.

According to Lewis Mandell , Ph. D. “Giving a child an allowance

would superficially appear to make a lot of sense. Children need increasing
amounts of spending money as they grow older and do more things
independently. In addition, a regular allowance can teach budgeting and
responsibility, build financial literacy and encourage beneficial habits such
as saving and debt avoidance. For this reason, allowances have been
studied by scholars for 50 years, largely in the US, Canada, Europe and
Australia.

After reviewing the literature, I have found that the effect of an

allowance is consistent across cultures and time periods. Literally, without
exception, studies have found that giving a child an allowance, particularly
a regular, unconditional allowance that the child can depend upon is a
terrible idea. It could be considered a form of child abuse. An unconditional
allowance is statistically associated with diminished financial literacy, lower
levels of motivation and an increased aversion to work. The 2000 Jump
Start National Survey had found that less than half of American high school
seniors reported having received a regular allowance when growing up.
Thirty five point three percent(35.3%) received an allowance based on
chores and 10.5 % received an unconditional allowance.

Those who received no allowance had the highest mean financial

literacy score of 52.5% . Those who received an allowance dependent on
chores had the second highest score of 52.1%. Those who received an
unconditional allowance had the lowest rate of financial literacy with a
score of 49.1%. Of those with no plans to attend any type of college, 25%
received an unconditional allowance in contrast to just 10.5% of all
students. This was not because they were from families with low socio-
economic status. In fact, children of college graduates were more likely to
receive an unconditional allowance than children of parents with less
education. Children who received an unconditional allowance knew much
less than others about savings, spending and credit. Not surprisingly,
nearly a third of those who received an unconditional allowance had never
worked in the paid labour force. This compares with less than 20% of
those who received no allowance and about 15% of those who received an
allowance for chores. We do know that having a job is positively related to
financial literacy which, in turn, is positively related to self-beneficial
financial behaviour.

Fifty years ago, the American scholars Marshall & Magruder, found
that children’s knowledge of money is related directly to the extensiveness
of their experience with money. However, they did not find that children
have more knowledge of money if their parents gave them an allowance.
In England, Newson studied 7 year olds and found that middle class
children received lower allowances than working class children but were far
more likely to save some of it. The savings habit was clearly learned at
home but didn’t relate to the size of the allowance. English scholars
Sonuga-Barke & Webley, interviewed parents in England in 1993 and found
that a “surprisingly large number do not make any concerted effort to
‘train’ their children in the management of money.” They felt that this may
account for the weak relationships between parents’ attitudes and values
and their attempts at economic education of their children. It is much
easier to give kids money than to train or educate them about it. In
1990, Miller & Yung, found that contrary to adult conceptions, there was
no evidence that American adolescents understand pocket money to be an
educational opportunity, promoting self-reliance in financial decision
making and money management . They concluded that the significance of
allowances for adolescents is not the receipt of money per se, but how the
the conditions of receipt are evaluated, the extent of work obligations,and
monetary constraints on the amount, use and withholding of income. Thus
the economic socializing power of parents may depend primarily on the
explicit rules they set regarding allowances and the adolescents’ agreement
and understanding of these rules. In Australia, Warton & Goodnow, found
in 1995 that adolescents saw household work more as a mechanism to
earn pocket money in contrast to adults, who saw their purpose
significantly more as a way to learn that everyone has to do their fair
share, learn how to be helpful, and do what needs to be done.

Canadians Pliner, Freedman, Abramovitch & Darke, conducted a

number of experiments in Canada in the mid 1990’s comparing children
who received an allowance with those who did not. They found some
benefits from an allowance including the ability to use credit and price
goods more accurately– all spending related skills. However, the authors
suggest that the allowance system works only when it engenders of trust
and expectation which requires the child to become financially literate and
experienced. Parental involvement in, and commitment to, an allowance
system appears to be essential if it is to effect the monetary beliefs and
behaviours of children.

In France, Lassarre found that the best allocation strategy is giving

allowances paired with discussions of the family budget. They conclude
that the mechanism that makes an allowance system effective is the
possibility it affords for discussions about financial matters within the
family. Several studies found that allowances negatively impact the desire
of children to work.

In the US, Mortimer, Dennehy, Chaimum and Finch studied 1,090

ninth grade students and found no significant effects of allowances on
children’s savings, but did find that students who reported receiving
regular allowance in the ninth grade were less likely than other students to
view work generally as a source of intrinsic satisfaction. They warn that
parents and financial counselors need to be careful about undermining the
development of work values through allowance practices.

We can conclude by stating that by themselves, allowances do not

lead to increased savings or financial literacy. In fact, children who
received unconditional allowances appear to be less financially literate than
those who receive no allowance or an allowance linked to household
chores. In addition, children who receive an allowance (particularly an
unconditional allowance) are less likely to work outside the home which
diminishes financial literacy and tends to reduce the intrinsic value of work.
Few children understand the parents’ purpose in giving an allowance and
tend to view it as entitlement. If parents intend to use the allowance to
teach their children or to socialize them as part of a family unit, they must
communicate the purpose and rules of an allowance and share more of the
family’s financial constraints with the children. There is no silver bullet to
make children financially literate or financially responsible. Just as it’s a
waste of societal resources to dump these problems on the underfunded,
ill- equipped schools, parents cannot solve the problem by buying their kids
off with a weekly bribe called an allowance. Learning anything worthwhile
requires hard work, discipline and repetition. An allowance can be a useful
tool in this learning process.

Students all over spend in several different ways, but close market
research on student spending indicates that there are several common
patterns that can be seen. Spending habits in adolescents in changing is
changing drastically in the last few years, but that change is almost
uniform in all the metros of the world. Commercialization has begun
targeting students’ spending habits a very long time ago (IFM Students
Lifestyle and Spending Habits,2009).

According to a study conducted by a bank and financial institution,

youths fork over money to buy cell phone load, to play computer games at
internet cafes and to buy cigarettes alcohol. Teens hang out and shop.
They also spend money on going out and on clothes and accessories (TJ
Manotoc, ABS-CBN News,2010). (par. 2)

Ming Barcelona, TNS Philippines Associate Researchers Director, he

explained that “ Despite the Filipino teens’ having limited budget to spend,
low price does not necessarily make any brand a shoe-in for their
patronage. The TRU study remind us the mind sets, preferences and
purchasing habits of Filipino teens , whether in brand values, the latest
product offsprings , or on values and social issues should not be ignored”,
added by Gary de Ocampo, TNS Philippines Managing Director.

Giving allowance is not just for a teens’ financial assistance. It can

also help them to learn the necessary things whenit comes to money
management. ‘Give ‘em an Allowance!’, an article by David McCurrach , she
stated that, “Remember, the purpose of an allowance is to give your
children the opportunity to learn how to manage money through their own
successes and failures and the input of their parents”. This means that if
parents let their children to have allowance and give them permission to
spend, they will encounter different situations involving instances, the little
ones can sometimes commit mistakes and wrong decisions.

Students’ allowance is that we would like to know if how and where

they are going to spend their allowance and is it enough in their day-to-day
living expenses. There are many reasons why we should have this study.
One of the reasons is the behaviour of a person. “Behaviourism identifies
mental states with disposition to act in certain input situations “ (
Crumley,1978). This has something to do with our interaction to our
surroundings, like it someone invites you to go shopping then you know
that you don’t have extra budget for it then you should say no to them.
The other reason is a decision-making. “Some preliminary work needs to
be done before we can come up with a decision that we will not later
regret “ (Teays,2006). Example for this is when you go but with friends
then you think it’s their treat then you’ll be surprise because you’re asking
to contribute. In budgeting they need cost of living.

Student Financial Aid (SFA) establishes a modest, yet adequate cost

of living allowance to determine financial aid eligibility each school year.
This allowance includes housing and utilities, food, transportation, personal
and miscellaneous, and medical expenses.
CHAPTER 3 METHODOLOGY

The purpose of the study is to determine the allowance and the use
of money management practices of Grade-11 students in Mandurriao
National High School. The objectives of this chapter is to:

a. Describe the research design used in this study;

b. Explain the sample selection; and
c. Describe the procedure used in designing the instrument
and collecting data.

Locale and Time of the Study. The study will conduct in Mandurriao,Iloilo
City during the 2nd Quarter of School Year 2017-2018. It covered the
Mandurriao National High School (MNHS) only and have four Grade-11
courses namely: Accountancy, Business and Management (ABM), Technical
Vocational Livelihood (TVL), Humanities and Social Science (HUMSS) and
General Academic Strand (GAS).

Data Collection. The Research Design will be used in this study is

Descriptive Research Design. This research design is appropriate and
applicable to this study. The sampling method will used is simple random
sampling. The various way that will be used in this research study is fish-
bowl technique. It could be an equal sharing of participants/respondents
and there is no bias will happen. The information needed to answer the
stipulated objectives in Chapter 2 will used questionnaire. The
questionnaires will distribute to the respondents/participants allowing
ample time for them to answer each question completely, correctly and
concisely. Some guide questions will asked by the researcher to obtain a
reliable response on the different questions.

Data Gathered. Data gathered are personal profile, average monthly

allowance, and the problems encountered by students on their income that
affect to their academic performance.
Data Analysis. The data gathered will tabulated, analysed, and interpreted
according to the objectives of the study. After collecting the sample data,
the researcher will then assess, interrelate and analyze the significant
differences of data gathered.

Research Participants/Respondents. The respondents of this study is

consist of 150 students out 365 students from all Grade-11 of Mandurriao
National High School (MNHS). The distribution of the respondents per
courses is presented in Table 1.

Table 1. Distribution of Respondents/participants of Grade-11 Courses

GRADE-11 COURSES NUMBER OF RESPONDENTS

ABM 25

TVL –A 15

TVL –B 15

GAS –A 15

GAS –B 15

GAS –C 15

GAS –D 15

GAS –E 15

HUMSS 20

-----------------------

TOTAL 150
I, Kimberly Failaman, Grade-12 ABM student of this school, will conduct a
survey to Grade-11 students. This questionnaire contributes more
information/data to my study entitled, “Daily Allowance: How Does It Affect
the Academic Performance of Grade-11 Students in MNHS during Second
Quarter for S.Y. 2017-2018”. I am hoping you will participate on my
research study. Thank you!

General Instructions: Answer or check completely the questionnaire on the

space provided. Read, understand and analyze the questions below.

PART 1.
Name: Year Level:
Age: Date:
Sex:

PART 2.
Please answer the questionnaire completely and concisely.

1. How much is your allowance everyday? Php ________

Weekly? Php _________
Monthly? Php __________
2. Do you get your allowance in your parent’s/guardian’s salary?
Yes ______ Others, pls. specify ___________
No ______
3. How much money do you spend for your transportation everyday?
Php 10.00 – Php 50.00 _____
Php 60.00 – Php 90.00 _____
Php 100.00 – Php 150.00 ______
Php 160.00 – Php 200.00 ______
4. How much money do you spend for your food everyday?
Php 40.00 – Php 60.00 _____
Php 70.00 – Php 100.00 _____
Php 110.00 – Php 150.00 _____
 Php 160.00 – Php 200.00 ______
Php 200.00 and more _______
5. A. Do you bring packed lunch in school ?
Yes ____ No ____

B. If yes, how much money can you usually save? Php ________

6. How much money do you spend usually spend on your projects?

Php 50.00 – Php 150.00 ______

Php 160.00 – Php 200.00 ______

Php 210.00 – Php 350.00 ______

Php 360.00 – Php 500.00 ______

Php 510.00 and more ______

7.What do you usually do on long hours of break time time ?

Computer _____
Hang outs _____
Sports _____
Food trip _____
Go home/dorm ______
Others, pls. specify __________________

8. How much money do you spend for your leisure time?

None ___

Php 10.00 – Php 40.00 _____

Php 50.00 – Php 100.00 _____

Php 110.00 – Php 150.00 _____

Php 160.00 – Php 200.00 _____

Php 210.00 and more ____

9. Where do you think most of your allowance go to ?

Rank them using 1-5. (1-most important),(5-least important)

Food ____

Art materials (paint, papers, board, etc. ) ___

Printing (for research papers, references, etc. ) ___

Transportation ___

Entertainment/recreation(computer shops, cellphone load,gala,etc.)___

10. a. Do you make/write a budget plan?

Always ____ Never ____

Often _____

Sometimes ____

b. Do you follow it (budget plan)?

Always ____ Never _____

Often ____

Sometimes ____

11. a. Do you always try to save money ?

Always ____ Never _____

Often ____

Sometimes ____

b. How much can you usually save everyday?

Php 10.00 – Php 50.00 ____ Php 110.00 – Php 200.00 _____

Php 60.00 – Php 100.00 ____ Php 210.00 and above ______