CHAPTER 2:

THEORETICAL BACKGROUND

Review of Related Literature:

This chapter presents the review of related literature about the spending behavior

of teenagers and the effects of the Community Quarantine on these behaviors. This

attempts to review literature in relation to the Teenager Demographic, Spending

Behaviors and Philosophies of Teenagers and the effects of the Community Quarantine

imposed by the Inter-Agency Task Force on Emerging Infectious Diseases (IATF-EID)

to the spending behaviors of teenagers.

Teenager Demographics:

Statistical data released by the United Nations Children’s Fund (UNICEF) last

October 2019 showed that teenagers (Ages 10-19) made up 1.2 Billion or 16% of the

world’s population. It also revealed that more that half of the teenager population are

Asians. Retrieved from: https://data.unicef.org/topic/adolescents/demographics/. In the

Philippines, it was revealed by the United Nations Population Fund (UNFPA) that 30

million people or 28% of the population were young people or teenagers (Ages 10-24).

Retrieved from: https://philippines.unfpa.org/en/node/15309. Another figure revealed that

51.05% of teens in the Philippines were male and 49.95% were female in the year 2018.

Retrieved from: https://www.indexmundi.com/philippines/demographics_profile.html.

(Barcelona 2011) revealed that Filipino teenagers were mostly tech savvy. 97% had

knowledge or had for themselves (knowledge of) a mobile or cellular phone. A study by

De Ocampo 2012 found out that Filipino teenagers value the opinion of their parents,
religious, family oriented and they were very mindful about peers and are very socialized

especially when they reach puberty. Retrieved from:

https://www.scribd.com/document/260331286/filipino-teenager-spending-docx.

Teenage Spending Behavior:

Rinaldi and Bonanomi 2011 upheld that Financial Skills, Knowledge and

Attitudes are started in childhood and developed in the teenage years. Nagy and Toth

2012 added that these behaviors, attitudes and skills influence money behavior in

adulthood. Majority of teenagers are not responsible for their own living cost (Otto

2009). Parents give their children a chance to manage their own resources by giving their

teenage child pocket money. In a study published by Warren Et. al (2018) also revealed

that teenagers save up money for what they want for they want for the such as cars,

houses, gadgets and others. However, the focus of most teenagers appears to be on the

things of leisure such as beauty products, jewelry, grand vacation and days out with

friends. Retrieved from: https://growingupinaustralia.gov.au/research-findings/annual-

statistical-reports-2018/shop-or-save-how-teens-manage-their-money. A study by

Villanueva (2017) went further by citing that Filipino teenagers spend a lot in their vices

such us lavish lifestyles and drinking alcoholic drinks and spending more time for fun

rather than important things that will be helpful for their or their family’s future.

Teen Research Unlimited (TRU) found out that in 2011 Filipino teenagers spend

P278 Per week. This accounts for P224 Billion annually. A continuation of this study also

revealed in 2018 that as years went by, 81% of Filipino teenagers are influenced by hot

trends on social networking sites such as Facebook, Twitter, Youtube and Instagram to

cite a few. Globalization has also played a role on how Filipino teenagers spend since
connectivity brought about by the rise of social media has caused teenagers to have wider

access to products coming from abroad. (De Ocampo 2012) has also upheld that peer

pressure has also played a part in influencing teenager buying behavior. Finding a niche

in a sensitive society has and will become a stronger trend among Filipino teenagers for

years to come. Brands of products have also played its role as 9 out of 10 teens said that

they would spend more if the brand of the product is one, they trust. Retrieved from:

https://www.scribd.com/document/260331286/filipino-teenager-spending-docx.

It is however worthwhile to point out that issues such as what’s going on lately

can influence teenagers buying decisions. Issues on health, crime, social and income

inequality are a few of the topics majority of teens in the Philippines value (De Ocampo

2012). A Neilsen survey in 2013 showed that four (4) factors have become dominant in

today’s society when it comes to spending among teenagers namely the facts that A.

Teens Love Freebies. B. Teens are susceptible to branding C. Teens fall to peer pressure

and D. Teens are trendy. Retrieved from:

https://www.scribd.com/document/260331286/filipino-teenager-spending-docx.
The Community Quarantine and Teenager Spending

On March 13, 2020 President Rodrigo Roa Duterte imposed the Enhanced

Community Quarantine (ECQ) over all of the Philippines via Executive Order no. 168.

The same Executive Order also created the Inter-Agency Task Force on Emerging

Infectious Diseases. (IATF-EID) to aid the government to implement the National Action

Plan against COVID-19. This was a move to stop the spread of the COVID-19 and hope

to foster a safer community navigating through times known as the “New Normal”.

However, it is worth pointing out that the Enhanced Community Quarantine (ECQ)

brought with it restrictions that saw the limited movement of people. Shops and other

non-essential stores were closed, malls were shut down and restaurants and places of

leisure were forced to halt their operations. Retrieved from:

https://www.officialgazette.gov.ph/downloads/2020/06jun/20200603-omnibus-

guidelines-on-the-implementation-of-community-quarantine-in-the-philippines.pdf.

The quarantine has very adverse effects on teenagers. Findings from Rubino

(2020) revealed that the Quarantine has taken away the sense of control among teenagers.

This brings about anxiety for teenagers and reduces their ability to think well. Andrews

(2017) even went further in saying that mood swings and fear among teens have raised

the concerns for increased suicide and a highly unstable nature which puts future

generations at risk of the lack of cognitive stability and the ability to take the world to a

right direction it needs to be. Retrieved from:

https://patch.com/california/pleasanthill/how-quarantine-impacts-teenagers

Figures from the findings published by Adams (2020) clearly showed that so far

Teenage Spending all over the world fell by 13% in the first two quarters of the year. The
budgets of families obviously have tightened this year. Cosmetic products have shown a

drop of 26% in sales as priorities shift to basic goods with 25% of goods and food

products rise in sales. Nevertheless, a substantial rise in sales percentages has been seen

to have happened to Netflix, (33%) You Tube (31%) Tiktok (27%) to cite a few.

Teenagers here in the country have had to adjust and adapt to the New Normal and will

continue to do so for years to come. Retrieved from:

https://www.marketingdive.com/news/teen-spending-hits-lowest-point-in-nearly-a-

decade-as-coronavirus-concerns/575710/
 Theoretical Framework:

Teenage Spending Amidst the Community Quarantine

The Rational Optimization Principles (Teenagers use their heads to decide what and
how to purchase)

The Life- Cycle Theory explains why Teenagers go for what’s Trendy
Today.

The Systems Theory explains the shift of priorities that caused the change in Teenage Spending
behavior during the Community Quarantine.

Figure 1: The Theoretical Framework of the Study

 Conceptual Framework:

Based on the Problem a conceptual Framework is Presented below:

The frames illustrate how the community quarantine has affected the Spending Behaviors

of the Teenagers of Purok Mancinitas, Abgao, Maasin City as the study will seek to find

out at the study’s completion.

The Teenagers in Purok Mancinitas have a lavish, happy go lucky lifestyle. They also
take pleasure in leisure goods like beer, cosmetics, beauty products

The Community Quarantine Protocols imposed by the IATF-EID has limited their
opportunities to avail of those products.

The adverse situation has led the teenagers to change their philosophies and outlooks when it
comes to spending their money on more valuable things.

The researcher of the study will attempt to apply an appropriate methodology to see that a proper
result would materialize. This will be the creation of New Philosophies and Ideas on how we can
spend our resources wisely in times like this.