Research Introduction Sample for ABM Students

Assessing Budgeting Practices and Financial Management Skills of ABM students

Research Introduction Sample for ABM Students


In the study of Hilgert and Hogarth (2003), having good budgeting practices was found important for managing daily life activities. When individuals are well-informed and financially educated, these things lead to better decisions and higher financial security, which in turn, would impact overall well-being. As mentioned by Remund (2010), financial literacy has thrived in use in the 21st century. Such literacy was found necessary in helping individuals to be adaptable to life's changes and to understand such events better.

A similar study conducted by McCormick (2008) stated that students are often impacted by financial complexities within their families. These financial difficulties serve as an opportunity for young adults to learn about personal finance and hone their financial management skills. Thus, Financial Management is an essential matter that must be examined and applied to students.

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As of the current generation we are in, where technology continues to improve, students are vulnerable to temptations such as buying the latest products or availing in-app purchases of such technologies. Money is a very crucial means to have these things, but a problem arises because there are students who cannot manage their expenses well and just impulsively purchase something.

Novilitis et al., (2006) conducted a study entitled "Student Budgeting and Spending Behaviors: A Comparative Study" and it was found that the more students are equipped with financial knowledge, the less likely they are to find themselves buried in debt. This underscores the critical importance of fostering financial literacy among students. When they have the know-how to manage their finances, they can make informed decisions and steer clear of potential financial troubles that might arise from impulsive choices.

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Furthermore, it is important for people to have at least a basic knowledge of financial management to cope with their daily lives. Students, especially, needed to know the importance of financial management and apply it on their own. Being a student who is financially literate helps them to manage money with confidence, which means they are effectively controlling their allowances or earnings and can save up or avoid being scammed. Hence, making a budget and planning is the first step towards the true understanding of financial budgeting. 

It is important as well to determine the students' financial management capabilities especially, students taking up Accountancy, Business, and Management (ABM) who are learning the nature of accounting, business, and management. Several researches conducted globally to measure financial literacy among adults have proven that adults tend to exhibit insufficient levels of financial literacy (Hannah, Hill, and Perdue, 2010). A lack of financial literacy can have a profound influence on the way in which senior high school students, particularly those pursuing the ABM strand, handle their current and future financial responsibilities. Consequently, it is essential to assess the financial management skills of this specific group of students as a critical aspect of our research.

This study is significant to help the students be aware of their impulsiveness and make progress in their skills towards budgeting and managing finances. This is crucial for the community as well as it involves learning the basics, such as budgeting, saving, and proper spending. This will not only establish good financial management, it will also hel build and develop lifelong capabilities that is of great necessity in their future endeavors. 


  • Hanna, Michael & Hill, R.R. & Perdue, G.. (2010). School of study and financial literacy. Journal of Economics and Economic Education Research. 11. 29-37.
  • Henn, Martha. (2008). The Effectiveness of Youth Financial Education: A Review of the Literature. Journal of Financial Counseling and Planning. 20. 
  • Hilgert, Marianne & Hogarth, Jeanne & Beverly, Sondra. (2003). Household Financial Management: The Connection Between Knowledge and Behavior. Federal Reserve Bulletin. 89. 309-322.
  • Norvilitis, J. M., Merwin, M. M., Osberg, T. M., Roehling, P. V., Young, P., & Kamas, M. M. (2006). Personality factors, money attitudes, financial knowledge and credit card debt in college students. Journal of Applied Social Psychology, 36, 1395-1413.
  • Remund, David. (2010). Financial Literacy Explicated: The Case for a Clearer Definition in an Increasingly Complex Economy. Journal of Consumer Affairs. 44. 276 - 295. 10.1111/j.1745-6606.2010.01169.x.


McJulez is a passionate writer who loves making concise summaries, sharing valuable notes, and talking about new insights. With a background in campus journalism and a commitment to delivering experienced and reliable content, McJulez is dedicated to making this platform a community of learning and connection. facebook twitter pinterest

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