Running head Spending habits of students in International School of Business Running head Spending habits of students in International School of Business Running head Spending habits of students in In.
Running head: Spending habits of students in International School of Business Running head: Spending habits of students in International School of Business Running head: Spending habits of students in International School of Business Spending habits of students in International School of Business ABSTRACT In Vietnam society, there was an increase in students' spending habits, as a result of a huge number of people becoming concerned with financial management An examination of the spending habits of ISBA students at Baking Academy is the purpose of this paper Participants were randomly selected for participation in a questionnaire survey The participants were given paper questionnaires containing fifteen questions, and they were then separated into two groups based on their gender The result demonstrates that both survey groups had a primary source of income from parents' allowances and part-time jobs Therefore, both survey groups mostly had budgets of 1,000,000 to 2,000,000 VND per month In addition, students of both genders frequently spend their budget from 1,000,000 to 2,000,000 VND on shopping and traveling Researchers targeting university students will benefit from these findings because not only they provide an understanding of how the subjects conduct spending, but they also offer valuable insight into their habits i Spending habits of students in International School of Business Table of Contents ABSTRACT .i LIST OF FIGURES/ TABLES iii Introduction Literature review Methodology Results Discussion of findings 5.1 Student’s budget monthly 5.2 Students’ sources of income and the way of spending 5.3 Budget plan Recommendation Conclusion References APPENDICES ii Spending habits of students in International School of Business LIST OF FIGURES/ TABLES Figure 1: ISBA students’ monthly budget………………………………………………….4 Figure 2: ISBA students’ sources of income……………………………………………….4 Figure 3: ISBA students' purposes for spending……………………………………………5 Figure 4: Money's ISBA students spending monthly………………………………………5 Figure 5: The solution ISBA student manages their budget each month……………………6 iii Spending habits of students in International School of Business iv Spending habits of students in International School of Business Introduction Nowadays, the number of people concerned about their financial well-being has increased greatly in recent years, and students' spending habits are correspondingly increasing As students gain financial knowledge and attitudes toward money, their level of money management ability (money management capabilities) increases (Nadome, 2014) In the first year after they become independent of parents and guardians and can make their own financial decisions, students have the task of planning and managing their finances A student's level of financial literacy determines how he or she conducts themselves in the financial marketplace It is essential to have a basic understanding of finance in order to make sound financial decisions Xu & Zia (2012) describe financial products and their capabilities in terms of managing money and controlling finances (Xu & Zia, 2012) Financial satisfaction can be achieved by spending in the most desirable way Thus, people's financial satisfaction is related to their ability to manage and control their finances, which in turn enhances their financial status and financial decision-making (Binti, Azmi, and Ramakrishnan, 2018) Among the targeted groups of users, university students account for the biggest proportion The reason is that consumers are more likely to engage in brand awareness when it comes to entertainment and lifestyle Aside from that, they are also the first generation to step outside the protective umbrella of their parents and guardians and to be responsible for their own finances for the first time Especially, the increase in adults' living standards has also led to an increase in the purchasing power of the young Separated groups of students, like men and women or juniors and seniors, have different needs and spending habits Thus, to understand the complexity of the issue according to gender, the participants of the groups would be divided into groups: those are men and those are women Therefore, this research was conducted to find out the spending habits of students in general and in ISBA of Banking Academy where I am currently studying now Thus, this paper, as the results of my research project, was aimed at answering the following five questions: “ How much money ISBA students have in a month? What is their source of income?, How much money they spend in a month? What kind of needs they spend on most? and In what way they make their spend of the plan?” Furthermore, there would be highlights of the contrast Spending habits of students in International School of Business between men and women, in their spending habits along with possible solutions to the freshmen’s problems related to this issue Literature review It is ironic that there are several studies investigating spending behaviors, but they each reflect a different aspect of the issue instead of providing a complete picture According to consumption and maturity theories, Pascual (2021) conducted a descriptive comparative study comparing college and high school students' expenditures during the pandemic By determining how college and high school seniors manage their money, how much they spend, and how often they spend it, the researchers were able to identify which class managed money the most maturely This study examines the differences between high school and college student spending habits, as well as the possible significance of said differences In response to the pandemic, respondents indicated they spend more money than college students during the period of time There was a significant difference in spending during the pandemic between students in senior high school and those in college Students are hoped to gain a better understanding of spending habits and make better choices when spending money as a result of these findings Additionally, Binti Azmi and Ramakrishnan(2018) found a positive correlation between financial satisfaction and spending habits The ability to manage one's finances correctly is strongly correlated with a person's ability to make financial decisions and achieve a high level of financial satisfaction At the Management Faculty of Universiti Teknologi Malaysia, an investigation was conducted to examine employees' spending habits Further, the study investigated the relationship between personal financial knowledge and spending habits as well as the level of financial knowledge of members of the Management Faculty It was found that a high level of financial knowledge is associated with the most desirable spending habits Second, the staff felt that financial education could enhance their financial knowledge for better financial planning Lastly, the results of the study indicate that financial knowledge is positively correlated with spending habits Furthermore, Furnham (1999) stated that a study of more than 250 British children and adolescents interviewed them regarding their income sources (pocket money, allowances, parttime jobs, and gifts), saving habits, where they saved their money, and why Bank accounts were given particular attention The participants also received a range of attitudes regarding money and the economy in general There were a lot of differences between genders and ages, but few differences between classes The pocket money and presents received by younger children were greater than those given to older children, while both older children and younger Spending habits of students in International School of Business children were given more pocket money and presents than females It was reported that almost 80% of children said they wouldn't receive more money if they had spent all of it According to regression analysis, saving frequency and proportion were best predicted by how much money was received, spent, and saved in the previous week A limited empirical literature on children's pocket money allowances, especially regarding demographic differences, is discussed with reference to these findings (Furnham, 1999) In conclusion, although previous studies have yielded promising results, they have had some weaknesses because they have not given attention to the specific spending habits of university students in developing countries, such as Vietnam Thus, it is my motivation to conduct my own research on the limitations Methodology It was determined that quantitative research would be the best method for discovering the answers to the research questions regarding the spending habits of university students Quantitative research, according to Watson (2015), is "any scientific investigation involving statistics or numerical data aimed at analyzing social phenomena." It is therefore assumed that the phenomenon being studied can be measured in quantitative research As part of this process, data will be analyzed to determine trends and relationships and measurements will be verified As well as the selection of samples, quantitative methods can be applied to the analysis of data at all stages of the scientific inquiry (Guo, 2013) Consequently, quantitative research is particularly effective at identifying 'structural' features of social life (Bryman, 2017) Besides sampling, data analysis involves using statistical software, which is less time-consuming (Connolly, 2007) Based on information obtained from the ISBA of Banking Academy survey, this report was compiled On the basis of my five research questions, I designed a questionnaire that contained 15 questions (including closed questions, partially-closed questions, and open-ended questions) The next step involved randomly selecting 200 first-year students from the university mentioned above, and each of them had to complete all the questions on the questionnaire by filling in and circling the options that were appropriate for them Survey methods can be useful for researchers who wish to obtain information from large samples of participants Furthermore, surveys can study a wide range of variables, require little investment to create and implement, and are relatively easy to generalize (Bell, 1996, p.68) Results Spending habits of students in International School of Business Among the participants in this study were 80 first-year female students and 80 first-year male students participating in the ISBA of Banking Academy In line with expectations, both groups of students have different spending habits as demonstrated by the acquired results Figure 1: Students’ monthly budget According to figure 1, a majority of male students (55% of them) had a monthly budget between 1,000,000 and 2,000,000 VND, whereas a majority of female students (31.3%) did as well Figure 2: Students’ sources of income With regard to sources of income, the majority of students, both male and female have income sources from parents' allowances and part-time jobs around 63% and 65% respectively Figure 3: Students' purposes of spending Spending habits of students in International School of Business Student spending differs also in a few reasonable ways Because males and females have different individual needs, female students spend more on entertainment and basic needs than male students, with 70 and 80 percent, respectively Figure 4: Money's student spending monthly It is clearly seen from figure 4, a large percentage of male students spent about 1,000,000 to 2,000,000 VND, while the majority of female students spent less than 500,000 or 1,000,000 VND each month Spending habits of students in International School of Business Figure 5: The solution student manages their budget each month In response to the question of what way students plan out their budget, in both genders, the majority of students often take notes and save money as much as they can, that way they plan for their budget The solution student manages budget by saving money was highest at 39% in males and 36% in females, followed by taking notes in males (37%) and in females (30%) Discussion of findings This study came from the institute of the university and was quite limited in scope, so it cannot possibly cover all perspectives about the spending habits of ISBA freshmen On the other hand, ISBA of Banking Academy is currently hosting a huge number of students coming from different cities or provinces with diverse backgrounds, I strongly believe that the results of the questionnaire can be generalized to some extent 5.1 Student’s budget monthly In Figure 1, page 4, it is shown that the majority of male students had a monthly budget of 1,000,000 to 2,000,000 VND, while the majority of female students had the same budget This result is not beyond my expectation seeing that most of the student's income comes mostly from parents and part-time jobs, approximately 1,000,000 to 2,000,000 Because not all parents are willing to give their children large pocket money and most part-time jobs can provide Spending habits of students in International School of Business students from 1,000,000 to 2,000,000 VND each month Furthermore, students' pocket money should only be enough to cover basic needs since parents have to balance their budget to take care of the family The majority of students received money from their families, but some students also earned an additional income by working Parents are the main source of funds for the respondents Overall, Male students received a significantly higher mean compared to female respondents (Mohamad and Jariah, 2006) Therefore, most budget monthly college students have approximately 1,000,000 to 2,000,000 VND, while male students received a significantly higher mean compared to female respondents 5.2 Students’ sources of income and the way of spending According to the results of Figure 2, page it is noticeable that the majority of students, both male and female have income sources from parents' allowances and part-time jobs This result is not beyond my expectation because freshmen are still getting used to using their parents' money and they're not ready to earn a living Besides, some have decided to parttime jobs to earn an extra income because it is flexible and convenient In detail, most parents send their children to college, they can take care of their children fully including living and pocket money There are some students who choose to work part-time jobs partly in order to make extra income and partly in order to fill their free time Similar to the results of the different studies, a quantitative survey was run among randomly selected students in the college of business to find out their spending and saving habits Approximately 55% of these students are female and enrolled in programs related to accounting, business administration, and office administration 76% of 90 respondents received allowances from their parents, 16% from sponsors, 6% had part-time jobs, and 2% received allowances through personal investments (Perdido, Infante, Fesalbon, and Tanalas, 2016) Additionally, students spend a lot of money shopping It is true that most students are shopping addicts, especially when it comes to clothes, shoes, and beauty products The fact that these are necessities that everyone needs make it reasonable for students to spend a lot of money on shopping According to Abhijeet Birari and Umesh Patil (2014), westernization and increased disposable income have dramatically changed the spending and saving patterns of young Indians Youth spend more money on shopping than any other age group, especially on items with brands on them Moreover, both male and female youths have slightly similar spending patterns, although their spending patterns differ According to Folorunsho M Ajide's (2015) study "The spending pattern among the youths in Lagos, Nigeria", male and female Spending habits of students in International School of Business youths have significantly different spending patterns, and family and relative pocket money is the main source of their income Additionally, pocket money and spending patterns were found to be positively correlated A study found that youth in Nigeria spend a majority of their money on fast food, movies, and transportation Therefore, parents' allowances and part-time jobs are the most common sources of income for students, male and female 5.3 Budget plan In the response to the research question “In what way they make their spending plan”, it is noticeable that in both genders the majority of students often take notes and save money as much as they can, that way they plan for their budget The results are completely different between female and male freshmen The reason is that taking notes and saving money as much as they can is the easiest and most effective thing for students to Because it's easy to and easy to help students control their spending as best they can A study of gender differences in the saving and spending habits of Thai students is presented in the article Gender Differences in Saving and Spending Behaviors of Thai Students The results of study showed that male and female students in Kerala displayed no differences in saving behaviors, although female students displayed greater enthusiasm for saving and shopping(R Manju's) Spending money was more positive for the male gender, while being rich and having a lot of money was more important to the female gender This article provides an overview of research conducted in Ernakulam district, Kerala, regarding higher secondary and degree courses According to the study, most students depend on their parents for their income Parents give their children up to Rs 2000 in pocket money or as a monthly allowance As well as revealing the practices of money management - budgeting and saving habits among students, the use of pocket money in a planned manner, and the priorities of money spending.Trends in Spending and Money Management Practices among Keralan Students revealed that female students were more enthusiastic about saving and shopping than male students Therefore, the majority of students, regardless of gender, often take notes and save money Recommendation Considering the discussions above regarding the findings, it is evident that students are not aware of how to budget In order to successfully manage money, students must first be Spending habits of students in International School of Business financially literate and understand how important it is to save money Therefore, students need to improve their knowledge of financial management and learn more about finance such as reading research articles available online or reading books on economics Besides, they need to practice the habit of making a reasonable spending plan suitable for their budget Before purchasing, consider the price and your financial situation before deciding whether or not it is appropriate Furthermore, students should be extremely careful with their money, should only buy necessities, and should minimize the purchase of unimportant items because saving is extremely important Conclusion To conclude, I hope that my study promotes similar interests among both genders regarding their spending habits in ISBA by demonstrating similar spending habits As a result of my research at ISBA, I have clearly demonstrated that students spend a lot of money there, and I have also demonstrated how much they spend In addition, my research shows how much each fund's monthly expenses are and where its primary income comes from Based on the limitations of my own research, I found that these subjects are extremely worthy of further and deeper study It is important to note that, when researching the spending habits of ISBA students, there will also be a variety of students' individual characteristics, such as age, gender, or personal views, which will directly affect the study's results Additionally, my research paper has limitations because it is not possible to get big data to cover more comprehensively since the scope of the research object is still rather small Furthermore, the research subjects' thoughts cannot be fully understood because I use quantitative methods In this way, extending the scope of the survey could lead to new and unconventional results that need to be explained and reasoned through Thus, I believe that other perspectives on this issue will be examined in more studies in the future (2790 words) Spending habits of students in International School of Business References Binti Azmi, N and Ramakrishnan, S., 2018 Relationship between Financial Knowledge and Spending Habits among Faculty of Management’s Staff Journal of Economic Info, [online] 5(3), pp.1-6 Available at: [Accessed 30 May 2022] Binti Azmi, N and Ramakrishnan, S., 2022 Relationship between Financial Knowledge and Spending Habits among Faculty of Management’s Staff [online] ResearchGate Available at: [Accessed 30 May 2022] Bryman, A., 2017 Mixing Methods: qualitative and quantitative research Quantitative and qualitative research: further reflections on their integration, [online] p.22 Available at: [Accessed 25 May 2022] Connolly, P., 2007 Quantitative Data Analysis in Education Furnham, A., 1999 The saving and spending habits of young people Journal of Economic Psychology, [online] 20(6), pp.677-697 Available at: [Accessed 30 May 2022] Guo, S., 2013 Quantitative Research Encyclopedia of Social Work, [online] Available at: [Accessed 25 May 2022] Jeevitha, P and Kanya Priya, R., 2019 A STUDY ON SAVING AND SPENDING HABITS OF COLLEGE STUDENTS WITH REFERENCE TO COIMBATORE CITY [online] Ijrar.com Available at: [Accessed 30 May 2022] Manju, R., 2016 Trends in Spending and Money Management Practices among Students of Kerala [online] Ijrhss.org Available at: [Accessed 19 July 2022] 10 Spending habits of students in International School of Business Mohamad, F and Jariah, M., 2006 [online] Consumerinterests.org Available at: [Accessed 19 July 2022] nadome, a., 2022 SPENDING HABITS AMONG MALAYSIAN UNIVERSITY STUDENTS [online] Academia.edu Available at: [Accessed 30 May 2022] Obagbuwa, O and Kwenda, F., 2020 Determinants of Students' Spending Habits: a Case Study of Students at a Premier University of African Scholarship [online] ResearchGate Available at: [Accessed 30 May 2022] Pascual, H., 2021 A Comparative Study about the Spending Habits of Senior High School and College Students during the Pandemic [online] Academia.edu Available at: [Accessed 30 May 2022] Perdido, R., Infante, J., Fesalbon, W and Tanalas, L., 2016 SPENDING AND SAVING HABITS OF UNIVERSITY STUDENTS [online] Jurnal.unai.edu Available at: [Accessed 19 July 2022] Watson, R., 2015 Quantitative research Nursing Standard, [online] 29(31), pp.44-48 Available at: [Accessed 25 May 2022] Xu, L and Zia, B., 2012 Financial Literacy Around the World: An Overview of the Evidence with Practical Suggestions for the Way Forward [online] Papers.ssrn.com Available at: [Accessed 30 May 2022] 11 Spending habits of students in International School of Business APPENDICES QUESTIONNAIRE I am Nguyen Trung Hieu from CO1C at ISBA of Banking Academy student The purpose of my research is to analyze male and female BA students' spending habits As part of my research project, I am completing this questionnaire in order to gather data Despite the fact that your opinions are critically important to the completion and quality of my paper, I greatly appreciate them It would be appreciated if you could return your questionnaire by 24 June 2022 Thanks for cooperating with me What is your gender? ☐ Male ☐ Female How much money you have in a month? ☐ Less than 500,000 VND ☐ From 500,000 VND to 1,000,000 VND ☐ From 1,000,000VND to 2,000,000VND ☐ From 2,000,000 to 3,000,000 VND ☐ From 3,000,000 to 4,000,000 VND ☐ More than 4,000,000 VND What are your sources of income? ( You can choose more than one answer) ☐ Allowances from your families ☐ Scholarship ☐ Part-time wages 12 ...Running head: Spending habits of students in International School of Business Running head: Spending habits of students in International School of Business Running head: Spending habits of students... School of Business Spending habits of students in International School of Business ABSTRACT In Vietnam society, there was an increase in students'' spending habits, as a result of a huge number of. .. month……………………6 iii Spending habits of students in International School of Business iv Spending habits of students in International School of Business Introduction Nowadays, the number of people concerned