Spending Habits Of College Students Essay

As children enter secondary education, they are about to explore new things and start to open up their minds. Along with this are the decisions they will have to make that includes financial decisions. Financial decisions start when they are given amount of money to buy their food during breaks. Allowances are given to encourage benevolence and fiscal responsibility (Child, 1831).
However, there are disadvantages presented despite of the benefits gained by the students of having allowance. For example, when a student has poor spending habits they have the tendency to spend their allowances on recreational activities such as renting a computer unit for fun and games, buying items at the shopping mall, and spending money for the peers.
As a Filipino student, it is hard to budget allowance. There are a lot of things to spend for. Students’ expenses are not only limited on academic expenses such as notebooks, books, report materials and projects. There

Furnham and Thomas (1984) expected that age was the most powerful predictor of saving wherein older children would get and save more money, spend their money differently on different items, and be more interested in and take part in banking, saving, and business more than young people. In support with Furnham and Thomas, Cho (2009) had shown a positive relationship between age and saving behavior. Subsequently, Hannah and Yuh (2010) articulated that household composition and working status affected the saving decisions of an individual that lead to their saving behavior. When it comes to working status, they found that self-employed households were more likely to save than those not self-employed, and retired households were less likely to save than non-retired households (Hanna & Yuh, 2010). Similarly, those household who have dependent children were less likely to depend on saving for unexpected expenses compared to those household who have none (Lusardi, Schneider and Tufano,