What makes it more complicated are the different manners in playing “money management game”. Since students must know how their money be properly engaged, they must learn to calculate how much they earn against how much they spend for a particular period. Starting it of course with different expenses which ranges from meals, activities to be carried out for organizational funds, books and other school supplies needed, including also pleasures with its own demands. Another thing is the tuition that rises faster than inflation rates and salary pay.
These are Just part of the cost of living in its real sense, which requires flexibility with coping mechanisms to survive the life being a student with changing times and unexpected conditions each students must learn to stand for. In this present situation, being also a Pauline clearly witnessed how a student drives the fact of reality, from which points out its behavior in regarding money which would allow readers to give their views about money management behavior whether it was poorly or properly done for it takes a lot of wise decision-making in handling different matters particularly “financial management”. . 2 Statement of the Problem It has been found that Poor financial management is the factor why SPILLS students are facing financial difficulty. They endure money management mistakes in their everyday transactions. Students do not know where their money is going, they are not having a plan for their money, they are not determining wants vs.. Needs, they are succumbing to peer pressure, they are abusing credit & ruining their credit score, and students are abusing their loans for their school fees (University of Nebraska- Lincoln, Newsletter, 2014).
They fail to do the management and flow of their money. They do not have the skill to manage their own money that leads them to spend on non-necessary things. Students are not really planning the future use of their money. They do not ensure that the money must be well spent and not misused. They do not have discipline in their budgeting and spending. Students are not mature enough to handle finances. Sometimes they even spend the money use to pay tuitions, school activities and other related payable.
Students like to buy things without considering the prices which means they do not make the best buy that can help them spend less. That’s why at the end of the day students are facing financial difficulty. 1. 3 Significance of the Problem This study was conducted and carried out to be able for those students in SPILLS be reminded and informed that poor financial management behavior is the main factor why they are usually facing financial difficulty.
This is also designed to make them know and realize their mistakes in handling finances that will lead them to a better and in a more desirable understanding and realization about the proper management and spending habits of finances through proper budgeting wherein it helps students to set their goals for their money and make sure they spend within their means. If it happens to students to make a proper budget and stick to it, they can use it to finance their own needs and wants without any difficulty.
The output of this study is a source material of SPILLS students that will aid them onto a mature world of understanding about the importance of financial management. 1. 4 Purpose of the Study Is the achievement of skills of the students necessary to make informed and effective decisions regarding earning, spending, and the management of money in order for them not to engage in financial difficulty. To discover the importance of financial management behavior for students in SPILLS. . 5 Assumptions of the Study The study was based on several assumptions including the following: Students are not mature enough in administering finances that drives them to spend on non- necessary things. Students have lack of financial literacy. Students have difficulty in managing finances. Respondents of this study would be willing and capable of providing the information sought. Respondents of this study would cooperate in answering the questionnaire accurately. . 6 Definition of Terms Financial management -is that part of the management activity that deals with planning and controlling the financial resources of the students. It is responsible for raising allowances of students and using them in an effective manner. Poor financial Management Behavior- the act of insufficiency of SPILLS students in handling finances. Financial Difficulty- the hardship condition or troublesome quality of SPILLS students regarding money aspects.
It is the effect of Poor Financial Management Behavior of the Students. Budgeting- is a way for students to live within their means and meet their future needs. It is setting aside their funds or allowances for saving, spending, and future needs. It is tracking where their money goes, so they still have some at the end of the month and don’t make any debts. Financial literacy- is the skills or knowledge of the students necessary to make informed and effective decisions regarding earning, spending, and the management of money.