THE RELATIONSHIP BETWEEN SPENDING HABITS AND FINANCIAL DECISION-MAKING AMONG GRADE 12 ACCOUNTANCY, BUSINESS AND MANAGEMENT STUDENTS AT IMMACULADA CONCEPCION COLLEGE

Abstract

This study emphasizes the significance of understanding spending habits, as they are often influenced by unconscious behaviors and reflect how individuals manage their finances across various aspects of their lives. An in-depth understanding of these habits is essential, as it enables individuals to make informed decisions about how to allocate their money more effectively. Financial decision-making, which involves careful consideration and planning, plays a crucial role in achieving financial goals. By improving financial decision-making skills, individuals can enhance their financial well-being and work toward long-term financial success. The researchers collected 171 responses from students in all sections of ABM 1-8, using simple random sampling as the sampling method. The study employed a descriptive correlational research design to analyze the relationship between spending habits and financial decision-making among the respondents. This design allowed the researchers to examine the connection between various factors influencing students' financial behaviors and their decision-making processes. The findings of the study, analyzed using the Pearson correlation formula, revealed a significant relationship between spending habits and financial decision-making among the respondents. The Pearson correlation coefficient (r) was found to be 0.4775, with a p-value of less than 0.00001, indicating a moderate positive correlation between the two variables. This suggests that students' spending habits have a notable impact on their ability to make informed financial decisions. The data obtained from the respondents shows that the majority of students prioritize their needs over their wants. The most common strategies they employ include comparing prices before making purchases and saving their allowances to purchase essential items that are both convenient and affordable. These practices suggest that the students are making conscious efforts to manage their finances effectively.

The researchers recommend creating an effective spending routine and keeping track of their spending plans as strategies to improve financial awareness. By practicing these methods, students can better manage their allowances, avoid overspending, and make more informed financial decisions. This approach could be particularly beneficial for students who struggle with managing their finances, helping them maintain financial stability and avoid negative consequences due to poor financial decisions.