CENTRAL LUZON STATE UNIVERSITY

COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY

Science City of Muñoz, Nueva Ecija

CBAA STUDENTS’ DEMAND FOR MONEY:

ONLINE VS. FACE TO FACE MODE OF LEARNING IN CENTRAL LUZON

STATE UNIVERSITY

Dela Cruz, Ngelbert DC.

Duello, Lovely Grace C.

Dumale, Desrael D.

Gaspar, Katrina P.

Marcos, Mawrie Ann M.

Martinez, Patricia Jane M.

Orpiano, Jhocel M.

Vitto, Kimberly M.

Authors

Reyniel G. Francisco

Adviser
 I. INTRODUCTION

A. Background/Rationale

The COVID-19 pandemic dealt a significant blow when the Philippine government
enforced a total lockdown, and all schools performed courses under the so-called new
normal, in which modular and online platforms were utilized to hold classes. After nearly two
years, face-to-face learning is making a return. Much has changed in students' techniques
since they began taking courses online, and returning to face-to-face classes may have an
influence on their student life, particularly in terms of their spending habits, money
management, and demand for money.

Money demand, as one of the important macroeconomic variables, has a great impact
on the economy of a country. (Dou, 2018) Demand for money refers to the aggregate sum of
cash individuals within an economy are interested in possessing. The reason for such demand
for money may differ according to the motive since it may be due to precautionary,
speculative, or transaction purposes. (Wallstreetmojo Team, n.d.) Berentsen, et al., (2016)
stated that understanding money demand is important for our comprehension of
macroeconomics and monetary policy.

The cost of attending university is a significant aspect of college students’ lives,

regardless of whether or not they’re actually paying the bill personally. (Javine, 2013) More
so, the cost of living as a college student is high whereby, so they usually spend more than
how much they earn, especially for those who live away from family and are being
independent for the first time. They do not know how to manage their budget and they will
use their money without any awareness and face problems such as not having enough money
to buy what they need. (EduBirdie, 2022). Accordingly, based also on the researchers'
experiences, the major aim for doing this study is to illustrate what happened to the students'
demand for money and what effect the transition from online to face-to-face learning had on
their financial conditions. As well as to be able to provide recommendations on how to
address the problem of money demand and how to responsibly allocate the money.
B. Statement of the Problem

This study seeks to identify the possible problems behind the CBAA student’s demand
for money during the online vs. face-to-face mode of learning to further determine the needed
data and produce relevant results.

Specifically, it answers the following questions:

1. What is the socio-demographic profile of the students in terms of:

1.1 Age
1.2 Sex
1.3 Course Major
1.4 Household Average Monthly Income
1.5 Weekly Allowance
2. From which sources do students get their demand for money? Is it from:
2.1 Allowance from Parents
2.2 Self-Generated Income/Salary as a Working Student
2.3 Financial Assistance/Scholarships from Governments
2.4 Others: ______________________
3. How do students allocate their money in terms of:
3.1 Transactionary
3.2 Precautionary
3.3 Speculative
4. Is there a significant relationship between the shift in learning mode from online to
face-to-face and the students' demand for money?

C. Objectives of the Study

This study is being guided by the following objectives which will be significant for
the researchers to provide answers and solutions to form a good paper.

 Determine the factors that affects the students’ demand for money.
 Identify how the students allocate their money in terms of transactionary,
precautionary, and speculative.
  Explain the link between the students’ demand for money and the shifting of learning
mode from online to face-to-face.
 Provide a recommendation or right policy measures of students’ financial decision-
making and allocation of their demand for money.

D. Significance of the Study

This study determined the factors affecting the CBAA student’s demand for money in
an Online vs. Face-to-Face mode of learning. Moreover, the purpose and result of this study
will benefit the following:

Students. This study will help the students gain insights to lessen their demand for money,
acquire knowledge on how to properly manage their allowance, and be more responsible at
spending.

Professors. Through this study, professors could help the students by implementing plans on
how they could provide them the lessons and knowledge with lesser requirements to spend
money on academic-related books and materials.

Parents and Guardians. To let them know what the expenses of their children in school are,
and likewise, to allow them to guide their children in leading with financial problems, teach
their children to manage their allowances, and allocate them more efficiently.

Sellers. This research will assist business owners in providing ideas on how to sell to students
in a more cost-effective manner, and as a result, students will appreciate and consume more
of their products.

Policy Makers. The study could also help policymakers in implementing the appropriate
measures as it relates to the demand for money, which is one of the factors of our economy.

Future Researchers. This study will help increase the future researcher's awareness about
how students manage their demand for money in online and face-to-face set-ups. It can be a
basis or a reference for future investigations.

E. Scope and Limitations of the Study

 The research will focus only on the demand for money among students, which is the
transactionary, precautionary, and speculative in both online and face-to-face modes of
learning. The target respondents of this study were the students enrolled in the College of
Business Administration and Accountancy at CLSU, and the findings may not be
generalizable to other colleges or universities. The researchers, likewise, will not include an
analysis of the academic performance of the students in the two modes of learning.

This study is limited only to the impact of changing modes of learning on the demand
for money and will not look at its involvement in other macroeconomic factors such as
inflation, interest rates, and economic growth.

II. REVIEW OF RELATED LITERATURE AND STUDIES

Demand for Money

Money is anything that is generally accepted as a medium of exchange, a store of

value, a measure of value, and a means for the standard of deferred payment. Money
considers everything that can be used for an accomplishment of a business transaction and
settlement of the business claims like currency notes, coins, cheques, etc.  (Nupurjain, 2023)

The importance of money is clear when you factor in the costs of necessities to sustain
life. It can't buy happiness, but financial wellbeing is important if you want to provide for
your family's basic needs. Human beings need money to pay for all the things that make your
life possible, such as shelter, food, healthcare bills, and a good education (Rakoczy, 2021).
According to Anderson (2023), money is a necessary resource that improve your life. An
earlier practice involves exchanging commodities for goods, and without money, you cannot
purchase anything you want. People are attempting to save money in order to meet their
future demands, which has increased the value of money. Money cannot technically buy
everything, yet in reality, it is the primary factor used to determine a person's status.

Consequently, the demand for money refers to how much assets individuals wish to
hold in the form of money (as opposed to illiquid physical assets.) It is sometimes referred to
as liquidity preference. The demand for money is related to income, interest rates and
whether people prefer to hold cash (money) or illiquid assets like money. (Economics Help,
2023, para. 1) The demand for money explains the desire of people for a definite amount of
money. Money is needed to manage transactions, and the value of transactions decides the
money people want to keep. The larger the quantum of transactions, the bigger is the amount
of money demanded. The amount of assets people would prefer to keep in their hands in the
form of money is referred to as the demand for money. The amount of income, interest rates,
inflation, together with a person's lack of assurance regarding the future, are all factors that
have an impact on their desire for money. (Wallstreetmojo Team, n.d.).

As what Brady (2018) have said, money demand theories examine the link between the
quantity of money required and a few economic elements related to the national economy.
For example, Keynes' theory of liquidity preference explains the key reason for the desire to
keep the money. Transactionary, precautionary, and speculative motivations are among them.
The transaction's objective illustrates the need of having money on hand to meet people's
daily needs. The precautionary motivation, on the other hand, refers to the need to maintain
money on hand in case of an emergency, such as an accident, illness, or the prospect of
unemployment. Finally, money is maintained for speculative purposes to profit from
fluctuations in exchange rates.

 Transactionary

The money we need for our daily purchases of goods and services is known as
transaction demand for money. (Pettinger, T. 2023). And according to Washingston Edu
(n.d.), is that we keep some money on hand since it's convenient to spend for purchases. This
first reason will be referred to as the transactional motive. Basically, based on the kind of
purchases you make and the quantity of your income, it's convenient to hold a particular
average amount of money at any given moment. The fact that money is the only form of
exchange that is acknowledged by all parties makes it one of the most significant roles it
plays in society. Furthermore, one motivation to have money on hand is to use it as a form of
payment in future transactions. You would not need to store any money at all if there were a
perfect match between the times you get money in transactions and the times you use it.

Additionally, Singh (2013), expressed that the amount of money needed for current
transactions by people and businesses is known as the transaction demand for money. All
people and businesses want to keep this amount of money on hand in order to cover their
upcoming expenses. The main goal of keeping cash on hand is to bridge the gap between
income and expenses. For instance, a person who receives payment on the first of the month
must continue to spend that money on purchases of products and services throughout the
month.

 Precautionary

Naranjo (2016), used in his study precautionary saving as the additional saving done by
individuals to protect themselves financially in situations of uncertainty and reduce their
vulnerability to negative shocks that may affect their consumption levels. Overall, these
studies suggest that the precautionary motive is an important determinant of the demand for
money. However, Pietrucha and Maciejewski (2020), asserted that the precautionary motive
is traditionally defined as the part of the demand for money that does not result from planned
payments but from the uncertainty concerning the size of the payment that will have to be
made. It is the desire to hold cash or liquid assets to ensure financial stability and security
against unforeseen events or emergencies that may require immediate payment. This demand
arises from the uncertainty of future events and the need to maintain a certain level of
liquidity. It is part of the demand for money that results from holding additional balances of
money as a reserve in a contingency, in case the preferred method of payment is not possible.

Also, the study of Lugilde, et al., (2017) said that if uncertainty increases, individuals
tend to save more as precautionary savings. Typical economic models indicate that
uncertainty affects people's decisions on spending and saving, but only if the marginal utility
of consumption is convex. This idea has been examined by many researchers, both in macro
and micro contexts, but the findings have been inconclusive. It remains unclear how strong
the impact of uncertainty on saving behavior is, and there is no agreed-upon method for
measuring uncertainty's effect.

In 2018, Chen and Zhang conducted a study on the determinants of the precautionary
demand for money in China. They found that income uncertainty is positively related to the
precautionary demand for money. The study also found that the precautionary demand for
money is negatively related to the interest rate and positively related to the inflation rate.
Overall, the literature suggests that the precautionary demand for money is an important
determinant of the demand for money, and its importance varies across different economic
factors such as income uncertainty, interest rate, and inflation rate. (Dou, 2018)
 Payment habits have received the most attention from all the factors that have been
studied. Kahn, et al. (2017) examine whether social influence has an impact on how
consumers perceive the security of payment methods. They find that when individuals
perceive that others view a payment method as secure, it has a positive effect on their own
perception of security, and makes it more significant. Jiang and Shao (2020) suggest that
when individuals perceive greater uncertainty and lack of trust in the financial system, they
tend to hold more cash for precautionary reasons or as a means of preserving value.

 Speculative

According to Singh (2014), speculative demand for money is a demand for money as
‘store of wealth.’ Wealth can be held (stored) in the form of landed property, bonds,
money, bullion, etc. When people save money as a store of wealth, this is referred to as the
speculative motive. People save money for speculative purposes in particular because they
are uncertain about the returns from alternative financial instruments, such as bonds, in
which they could invest their wealth (Nipun, 2017).

The decision to buy a good is based on the expectation that the prices are expected to
rise rather than for the purpose of consuming the good itself. The goods are typically held for
a short period and the sold to make a gain. This activity is common in commodity markets.
(EzyEducation, 2022, para. 1)

As the world tries to recover from the COVID-19 pandemic, it is important to recognize
the relationship between life experiences and investment preferences (Baker et al., 2020;
Nicola et al., 2020). It is essential to comprehend how people's experiences, including those
during the pandemic and other significant events, may impact their investment decisions.

Savings, investments, and retirements are not common terminology among common
students. Many may not realize the importance of starting these disciplines as early as
possible. Yang and Lester (2016) published an extensive list of statistics regarding whether or
not students are engaging in these habits. They found that 91.3% of students had a savings
account, 28% of students had investments in stocks, 21% in bank certificates of deposit, 9%
in gold, 6.5% in real estate, and 6.5% in mutual funds. These numbers may actually defy
expectation when it comes to students investing their money. However, it’s important to note
that 91.3% of students may have a savings account, but that doesn’t represent actual savings
behavior. Yang and Lester also found a relation between savings and investment behavior
and student perceptions. The older their expected retirement age, the less likely students were
to be saving and investing their money (Yang & Lester, 2016)

Online vs. Face-to-Face Mode of Learning

COVID-19 has disrupted most of the industries in the world, and education is the only
industry that is completely transferred to online mode in most countries around the world
(Mahyoob, 2020). And this shifting, from face-to-face teaching into virtual class, created new
challenges and effects to students especially in their financial situation and their demand for
money. As bringing food to the table is deemed more critical, having electronic devices such
as laptops, smartphones, computers, and good internet access for online learning is
considered a luxury these families could not afford (Singh, 2020). Negatively affected are
college students. They report extraordinary stress from campus closures: loss of income from
on-campus jobs, technology gaps, limited study space at home, increased family obligations,
and psychological distress (Enriquez et al., 2021).

One of the demand of students during online classes was stable internet connection
and gadgets to use on their online learning. However, students having a reliable internet
access and technology is not the reality for all students (Lederer et al., 2021). This is because
of loss of income of parents, and also having internet access and gadgets is too costly
especially in amidst of pandemic. And this problem, the lack of access to digital resources
such as computing gadgets and Internet connectivity, is a social disadvantage that increase
anxiety of students (Poudel & Subedi, 2020). As cited by Kapasia et al. (2020), the
availability of these digital resources is vital for an effective participation in online college
education and coping with many other challenges in the new normal.

On the other side, Heap (2017), asserted that tuition, maybe book supply, an application
fee, and not many additional fees are included in the cost of online education. However,
because you don't have to pay for transportation or lodging, you save more money and have
fewer debts. Which in turn, Ubell (2017), added that when the costs of online and in-person
programs are compared, in-person classes are more expensive. Families discover that on-
campus tuition does not include expenditures such as transportation, gasoline to and from
college, tolls, and other travel-related fees. Furthermore, food and housing are not included.
In a virtual school, however, even if a minor technological expense is imposed due to the
online set-up, which is all there is to it. There are no unexpected fees, such as additional
transportation, hotel, or food.

The shifting from Online to Face-to-Face mode of learning has become a sudden
change for students especially in the higher education after being under the remote system for
two to three years. Students can barely cope up with this back and forth changes in the
learning system and the drastic transition basically became demanding for students in terms
of preparedness and most importantly their financial needs. “The transition from traditional
schooling to complete e-learning during the pandemic revealed that students in less
economically developed nations like the Philippines are not as prepared. Young students and
female students are more likely to have low preparedness.” (Capinding, 2021). The lack of
preparation caused difficulty for both the students and faculties. When the transition to online
learning was beginning, the different levels of technology usage and knowledge became one
of the biggest obstacles for many faculties. There was lack of proper information technology
support during the initial transition, as face-to-face instruction did not require as much
support compared to online learning (Singh & Matthees, 2021, p. 303).

After 2 years of being in a quarantine, public schools nationwide have opened their
doors to all students for face-to-face classes (Hernando-Malipot, 2022). However, a report
from Bonz Magsambol (2022), says that, Parents worry about costs of returning to face-to-
face classes because of rising prices in the Philippines. According to the Philippine Statistics
Authority, the country’s inflation rate jumped to 6.1% in June. National Statistician Dennis
Mapa said that the purchasing power of the Philippine peso has declined, which is more
difficult for the poor Filipino to buy the needs of their children who are studying. Many
universities had not sufficiently prepared to shift from face-to-face classes to distance
learning. That is why after making investments and adjusting processes to facilitate distance
learning, some institutions may wish to maintain their online offerings even after conditions
allow returning to face-to-face instruction (Clary, G. et al., 2022).

To Sonya Krakoff (2019), for a variety of reasons, traditional college is typically more
expensive than online learning. Online learning is a less expensive option because you can
obtain a high-quality education for a considerably lower price due to the lower operating
expenses of these programs. Aside from the fact that tuition is typically cheaper, online
programs save money on a lot of other items like materials and transportation. For some,
online classes are very much affordable because it is way cheaper than face-to-face classes.
Because in online classes, students just need an internet and gadgets (for long-term use).
While in face-to-face classes, it requires a lot of money. In traditional set-up, students should
have allowances for transportation, dining, dorm rooms, co-curricular activities, and course
material as they are eliminated from the program (Antony W., 2022).

Money Spending of College Students

Holand (2016) states that many college students are unused to managing money. One of
the biggest money challenges for them is staying on top of what they are spending. They may
be trying to keep up with new, well-off friends or living in a high-cost area, and many are
unused to managing money. Which means students spend too more than what they can
afford. They need to handle tuition, textbooks, transportation, their housing, food, and
supplies together with socializing and expending on their luxuries that are most likely a factor
in their cost, like going out to eat with friends, gifts for loved ones, or investing in high-
quality professional clothes or any product that is a trend. Especially at a time of the COVID-
19 pandemic things are quite different, new norms are being adopted which change every
sector of people’s lives. Additionally, (Sorooshian, et al., 2013) finds that the cost of college
has risen dramatically in the past years. Prices for multiple commodities like tuition, books
and fees has risen by 5 to 10% annually. Most full-time students, however, receive financial
aid, grant funding and a loan to offset the cost of college. Study estimates that students are
paying about one-third of the actual costs of a college education. On the study of Brau, et. al.,
(2021) they analyzed the spending expectations of over 500 college students from a large
private university. The study found that students' spending habits were influenced by their
income, financial aid, and living arrangements.

As explained by Ruha (2023), college students spend slightly differently than high
school students. For this demographic, clothing and entertainment are major expenses.
Nonetheless, one of the biggest costs for college students is food. Many college students
spend money on snacks, beer, and other drinks even when meals are provided in the dorms.
They often spend more money on food and drinks when they hang out with friends in cafes,
pubs, and restaurants. Yet, as college students, they need to know how to manage their
money practically to obtain the greatest benefit from the money they earn or get from their
parents. College students are quite susceptible (Lee & Workman, 2015).
 Students are always informed of the newest trends in fashion, and how they see
spending is a problem related to social freedom. The ordinary college student spends money
on fancy clothing, trips to far-off locales, and meals at recognized fast-food restaurants every
day, and their parents give them a monthly allowance. (Manju, 2016) And according to Bona
(2018), students choose to spend money on goods that both satisfy their needs and budget.
The study came to the conclusion that a student's family background has a significant impact
on their spending habits. In addition to influencing their children's attitudes regarding money
management, parents also have a significant impact on their overall outlook on life.

Research has revealed that college students are not very adept at financial management.
Many students lack the discipline of budgeting and are prone to overspending (Archuleta et
al., 2013). According to Brougham et al. (2011), compulsive buying tendencies, defined as
the lack of ability to control impulsive spending and irrational purchasing decisions, are
identified more in college students than in the general population. In fact, Brougham et al.
found that the prevalence rate for these tendencies among students is 6% to 15%, while the
general public is estimated at about 5.8%.

Factors of Demand for Money

College students face a lot of difficulty in maintaining and spending according to the
budget maintained by them. A very little research has been conducted on this subject as a
result of which the problem is still not identified. It can be concluded that sex, course, year
level and ethnicity are determinants of the difference on spending behavior of management
students while socioeconomic status was found insignificant when comparing the said
behavior. (Abawag, et al., 2019)

 Age

The students make decisions about spending, receiving, and paying money. As
population age continues to increase dramatically and the net worth of older adults is greater
than that of younger cohorts, it is essential to understand how financial decision-making may
change across adulthood. Research on age differences in monetary sequence preferences
indicates that older adults make normatively correct decisions for receiving money (Strough
et al., 2018, as cited in Wilson, 2021), but decisions that are incorrect from the perspective of
normative economic theory when paying.
 In addition to the study of Strough, et al., (2018), few researches have explained that
older students' understanding of the present value of money may account for their preferences
for spending or getting money and that their real-world experience with financial decisions,
such as those that involve avoiding the accumulation of interest on loans, may explain their
choices for paying money. Moreover, older students manage more financial resources than
persons in their 20s and hence have a lot more at risk. Unquestionably, these authors claim
that the students who have been mentioned are better capable of managing or handling money
and are more conscious of their spending patterns. (Halilovic et al., 2019)

 Gender

The study of Chen and Volpe (as cited in Widener 2017), showed that men tend to have
more knowledge about insurance and personal loans compared to women who usually better
understand financial topics regarding expenditure, savings, and financial planning. Men tend
to feel more confident about their ability to manage money which causes men to dare to take
higher financial risks while women have more negative and conflicting feelings about
finance. The results of a survey conducted by Chen and Volpe on students who linked risk-
taking and self-confidence as contributors to gender differences in financial literacy showed
that women were less enthusiastic, less confident, and less willing to learn about the topic of
personal finance compared to men.

In addition to the study by Owens, Lacey, Rawls, and Holbert ‐Quince (as cited in
Afandy et al., 2019), it explained that men felt higher levels of financial tension due to the
large influence of their friends and also men were more likely to be involved in risky
behavior. Women are less likely to spend their money on risky assets compared to men and
also women are more risk-averse compared to men.

 Income

Vaidya (2023), declared that assuming the velocity of circulation is stable, people's
desire for money is influenced by prices and income. The demand for it will increase as
people's incomes rise. When utilizing an inventory model, the frequency of receiving
payments and the cost of depositing money in a financial institution impact the demand for
keeping money. Accordingly, in terms of how increased income will contribute to an increase
in the amount of money demand, it describes the influence of income in addition to pricing.
(Jonung, 2018). On the other hand, Nupurjain (2023) stated that the fact that most
transactions include an exchange of money gives rise to the transactional motive for asking
for payment. Money will be sought since it is vital to have it on hand for transactions. As
income rises over time, the overall volume of transactions in an economy tends to climb as
well. So, the need for money in exchanges increases as income or GDP increases.

The study by Mandmaa (2019) found that income, financial literacy, and financial goals
were significant predictors of the demand for money. Students with higher incomes had a
higher demand for money, while those with higher financial literacy had a lower demand for
money. The study also found that students with higher financial goals had a higher demand
for money, suggesting that financial goals may influence the demand for money among
university students.

 Allowance

Another important factor that influences the financial standings of college students is
their background, or more specifically, their parents’ financial status. Family income is the
starting point for any student, and regardless of the current dependency on parental finances,
this background affects college student perspectives and behaviors regarding money (Graves
& Savage, 2015).

It’s not just lower-class backgrounds that can affect college students’ abilities to pay for
school. Research has shown that middle-class students can struggle with paying off debt
nearly as much as, if not more than, lower-class students (Houle, 2014). Lower income
students have access to need-based financial assistance through their schools, the
government, and private funding. Upper-class students have more financial resources to
afford university costs.

Sources of Demand for Money

Sallie Mae and Ipsos (2016) further uncovered funding sources for college. They found
that the top three funding sources, in order, were scholarships and grants, parental
contributions, and student borrowing.

During the covid-19 pandemic, many students did not get the usual amount of pocket
money from their parents, because those who used to usually rent a house near campus paid
for transportation to come to campus, spent money for doubling lecture materials now no
longer, because learning done online, so students can follow lectures from home. From the
results of this observation, the cause of students experiencing a decrease in pocket money,
with this decrease, the money they will manage is increasingly limited due to reduced
income. Many students have been stereotyped as a consumptive young generation and have a
lifestyle that is sometimes not in accordance with the economic capabilities of their parents.
The existence of the covid-19 pandemic has brought changes in the economic capacity of a
family, many families have experienced a decrease in income, and therefore the ability of
students to manage pocket money is expected to be better (Elvi Rahmi; Friyatmi Friyatmi,
2021).

Starting to live independently due to face-to-face class mode, college students face new
responsibilities to manage their finances, including budgeting, managing income and
expenses, and paying bills. Students specifically need to print notes and reviewers, buy books
for their course, pay tuition, uniforms, rent for the boarding house, and any other expenses
that may occur. Due to many expenses, most students face difficulties in budgeting their
given allowance. Thus, most students seek help by applying for cash assistantships or
scholarship grants offered by different institutions. With that scenario, the majority of the
students’ experienced financial independence during their college years and the cash
assistantship helps them deal with their own situation on how they manage their budgeting
behavior on the cash assistance received for their daily expenses (Afan et al., 2022).

Money Management of College Students

College is a time for students to learn financial independence and are responsible for the
decisions they make. Students as the younger generation will not only face the increasing
complexity in financial products, services, and markets, but they are more likely to have more
financial risks in the future than their parents (Lusardi et al., 2010) College students generally
have greater freedom to make personal decisions in financial matters. College students learn
from trial and error, but it has not been able to make them become smart intelligent economic
people in today’s life (Widyawati, 2012).

How students handle their money today has tremendous implications on their future
financial conditions. Money habits and debt have a way of following an individual for
extended periods of time. When financial troubles prevent students from finding gainful
employment, this can lead to struggles on its own. Borrowers who were unable to complete
their degree are more likely to be unemployed and default on their loans (Jackson &
Reynolds, 2013)

Experience says that college students are now demanding luxury, and they are not seeing
the problem with their spending. They seem to have become so comfortable with these high
prices that the items are now commonplace things seen at campuses. If students think before
they spend, they will spend wisely and if they did not, they are likely to waste money.
Student spending behavior can be improved if they plan their expenses ahead. They need to
think to save to buy “needs” item rather than spend on “wants” item. Entertainment seems to
be the spending that the student does at a very high frequency, thus they need to find ways to
control it. This study went in depth into the financial and psychological aspect of spending
behavior and brought out concrete results, but failed to take monetary terms into its scope.
(Sorooshian, et al., 2013).

Manju, (2016) stated that having a little hold on your cash expenses and controlling
your spending amount is not only a good habit but also contributes to financial success which
is very important in future. Since youth plays a lot more important role in our country, it is
therefore important to monitor their behavior towards financial aspects. Money management
is a long process of budgeting, saving, investing, spending and seeing the overall usage of
cash. Due to the country's dissimilar system than the wests for releasing the younger people
at a young age, there is a significant variation in the spending habits of students. A powerful
approach for encouraging the younger generation to spend wisely sustainable lives is teaching
students to save. Students are less likely to be in debt if they are more aware of their financial
situation and obligations. (Lalmanpuia, N. 2021)

Sohn et al., (2012) showed that students' money attitude can shape their financial
literacy. Therefore, having a positive money attitude will influence students' behavior to gain
more financial knowledge and financial literacy, while negative attitudes will lead to poor
management of personal finances. Burgess found that certain money attitudes are related to
self-direction and security values, which implies that these attitudes tend to interact with
independent behaviors for security such as seeking financial knowledge. It all depends on
how students value money or financial security so they can find knowledge about how to
manage savings and spending.
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