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THE IMPACT OF HIGH TRANSPORTATION FEE TO

STUDENTS’ FINANCIAL MANAGEMENT

A Thesis Proposal
Submitted to the faculty of
Ramon M. Durano Sr. Foundation-
Science and Technology Education Center
Banaba, Guinsay, Danao City, Cebu

In Partial Fulfillment for the

Academic Requirements for
Practical Research 2
(Quantitative Research)
Accountancy Business Management S.Y 2023-2024

ALBO, KHIM JANNEL N.

BATOON, GWYNETH GAIL C.
BATULAN, BRYLE JAY M.
BATULAN, DIANNA MISH
CASTRO, TRISHA FAITH C.
DERECHO, MAGDALENE ABEGAIL P.
DURANO, DANIELLE SAMANTHA A.
LAGURA, SHERA MAE C.
MABIDA, NANCEBEL FAITH R.
MAGBANUA, AVEGAIL
MENOZA, DANIELLE
MORACA, MAIRIE GEYBRIELLE L.
RADAZA, SCARLET SHANE M.
ROJO, KIRBY B.
VELASCO, YOSHIMI DANIEL M.
September 2023
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Chapter 1
BACKGROUND OF THE STUDY

Rationale

The high expenses linked to student transportation in recent years

have become a growing concern for parents and education boards. The

increased costs have sparked discussions and raised considerations

regarding the ease of access and financial feasibility of transporting more than

25 million school children. (Vincent, Makarewicz, Miller, Ehrman, & McKoy,

2014). This situation paints a vivid picture of the magnitude of the challenge.

As transportation costs continue to climb, it is becoming increasingly

imperative to find sustainable solutions that balance the need for accessibility

and affordability.

Financial management encompasses the behaviors and attitudes

toward handling finances. In the context of students, it pertains to how they

navigate their finances and manage their money while pursuing their studies.

According to Leach, Hayhoe, and Turner (1999), early introduction to financial

management holds significance for the younger generation. It is particularly

crucial as they face diverse responsibilities, including repaying loans used to

fund their university education, even before completing their studies.

Amid these escalating transportation costs, it is crucial to recognize the

simultaneous challenge of student financial management. This

acknowledgment arises from the reality that students not only grapple with the

increasing expenses associated with transportation but also bear the

responsibility of handling their financial matters. This study aims to provide

information and knowledge about the possible effects of High Transportation

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Fee on students' Financial Management. Students' allowance plays a crucial

role in their lives, and due to High transportation fees, the student's budgeting

skills are affected. The students who rely on public transportation are the

focus of the researchers in this study. Transportation fares are currently an

issue for students and impact how they utilize their allowances. So, this study

aims not to increase students' money but to determine the cost of

transportation, how they can budget their money, and how to make it effective.

The Global fuel shortage, students’ transportation, and their parents’

financial resources are directly affected. Due to this, the students’ financial

management will be affected since their allowances will be reduced just for

transportation fees to access education. According to the study, with more

than 25 million schoolchildren taking 1 billion student trips each year, rising

costs have parents and education authorities concerned about whether their

children's schooling is possible and affordable. There is a possibility,

especially true when standard buses are unsuitable for the student's needs

and special transportation is required. To address these rising costs and

remove barriers to access to education, CTS is working to increase the

availability and affordability of dedicated transportation services for students.

(Vincent, Makarewicz, Miller, Ehrman, & McKoy, 2014).

According to Enta Philippines, Public transportation jeepneys have a

minimum fare of P9 (as of this writing), with an additional fee for each

kilometer after the first 4 kilometers. They can also use a tricycle for a faster

and more private commute. A tricycle costs about 20, 50, or 100 or more,

depending on the distance. The basic fare for a taxi in Metro Manila is 40

pesos, but a one-way trip can cost around 100 pesos or more, depending on
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the distance. (Enta,2013) the increase in transportation costs impacts

students in that the mode of transportation is those of Public Utility Vehicles.

In Local context the students in Danao city faced difficulties in

managing their finances, due to increase transportation cost this increase

affects not only daily commuters but also students in Danao City who rely on

public transport to get to school. It is becoming crucial for students to be more

mindful of their financial resources, finding ways to budget effectively to

balance their educational needs with transportation costs. This dynamic

highlights the importance of affordable and accessible transportation options

for the local community, especially for students striving to pursue their

education.

This research study aims to comprehensively investigate the complex

interaction between high transportation costs and students' financial

management skills. Our primary goal is to uncover the profound impact that

increased transportation costs can have on students’ financial performance

and overall financial health. By examining this connection, we aim to shed

light on the various facets of this issue and provide detailed insights into how

excessive transportation fees can impact students' ability to budget effectively,

make informed financial decisions, and maintain financial stability. Through a

thorough analysis, this study aims to contribute valuable knowledge that can

inform educators, policymakers, and students about the challenges that high

transportation costs pose instudent money. Our ultimate goal is to promote a

better understanding of these challenges, paving the way for developing

strategies and support mechanisms to enable students to manage their

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finances more skillfully and navigate the complex financial landscape with

resilience and confidence.

Theoretical Background

This study is supported by theories that offer a better understanding of

the budgeting skills of the students and how the rise in transportation fee

affect their financial management. The research displays two theories,

“Prospect Theory” by Daniel Kahneman and Amos Tversky (1970) and the

Theory of Personal Budgeting by Garpelti (2016). The theories stated below

will assist the researchers in establishing the relationship between the

transportation fee and the respondents' budgeting skills.

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 Prospect Theory by  Republic Act No.

Kahneman and Tversky 11314. “Student Fare
(1970) Discount Act”

 Theory of Personal  Republic Act No. 992.

Budgeting by Garpelti "The Revised Budget
(2016) Act"

To know the impact of high

transportation fee, due to
inflation, to student’s financial
management

High transportation Financial

fee Management

Data Collection, Data Analysis, Data Interpretation,

Discussion, Conclusion, Recommendations

The transportation fee and the budgeting

skills of students

Figure 1. Theoretical – Conceptual Framework

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The first theory is based on Daniel Kahneman and Amos Tversky's

"Prospect Theory" concept prospect Theory recognizes that individuals have

limited cognitive resources and may not always make perfectly rational

choices. A student may need to properly examine all possibilities and costs in

the context of transportation, thus leading to poor decisions. Students can

become more conscious of their biases and make educated transportation

decisions by applying behavioral economics and budgeting theories. Consider

variables such as seeking other transportation alternatives and weighing the

long-term cost implications of various decisions.

The second theory is ”Theory of Personal Budgeting” by Garpelti

(2016). In this theory, every available study, whether formal or informal, points

to the usage of personal budgets by consumers to deal with self-control

issues that interfere with their saving goals and are frequently brought on by

present bias. The utilization of individual budgets by customers is reported.

Students' primary challenge is the difficulty of budgeting their expenses and

saving a proportional amount for transportation fees many have fallen victim

to at least one of the strange spending routines. Wise personal budgeting of

your money forces you to charter your goals, save money, and track your

progress.

The first legal basis of this study is the Republic Act No. 11314, an Act

institutionalizing the grant of student fare discount privileges on public

transportation and for other purposes. This law is relevant to our study

because a student under this Act shall be entitled to a grant of twenty percent

(20%) discount on domestic regular fares upon personal presentation of their

duly issued school identification cards (IDs) or current validated enrollment

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form, supported by the prescribed government-issued identification document,

subject to an appropriate verification mechanism to be provided in the

implementing rules and regulations (IRR): Provided, That in the case of air

public transportation utilities, the discount shall only apply to the base fare or

the price of the ticket before taxes and costs for ancillary services.

The second legal basis is the Republic Act No. 992, also known As the

"Revised Budget Act". This law introduced the performance budgeting system

and emphasized budgetary programs and activities and expected results. This

is relevant to our study because budgeting for transportation fees is integral to

a student's overall financial plan. By budgeting for transportation, students can

determine how much they can afford to allocate for commuting without

compromising other essential expenses like tuition, housing, food, and

textbooks. It helps them manage their resources efficiently and meet their

academic obligations without compromising financial stability. This empowers

them to make informed financial decisions during their academic years and

later life.

STATEMENT OF THE PROBLEM

This study will examine at how students who are pursuing education

are put under an immense financial strain by the rising cost of transportation,

which is defined by high transportation expenses. The goal of this study is to

better understand the numerous difficulties that students' financial

management faces as a result of high transportation costs.

1. What are the characteristics of the respondents in terms of:

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1.1 age;

1.2 sex;

1.3 strand;

1.4 grade level;

1.5 combined family income; and

1.6 parent’s occupation

2. What is the financial management before the increase of transportation

cost in terms of:

2.1 spending attitude

2.2 financial literacy

2.3 peer influence

3. What is the financial management during the increase of transportation cost

in terms of:

3.1 spending attitude

3.2 financial literacy

3.3 peer influence

4. Is there any significant difference between the financial management

before and during the increase of transportation?

5. Based on the result, what intervention program should be proposed?

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NULL HYPOTHESIS

The following hypothesis will be tested at .05 level of significance

Ha: There is a significant difference between the financial management before

and during the increase of transportation.

Ho: There is no significant difference between the financial management

before and during the increase of transportation.

SIGNIFICANCE OF THE STUDY

The researchers start the study toward the impact of high costs for

transportation on students' financial management, the results will not only

increase awareness of this frequently ignored problem but also guide

institutional support systems and policy decisions intended to lessen the

financial burden on students. We may endeavor to create a more accessible

and financially viable higher education environment that will eventually benefit

students and society at large by better comprehending the difficulties faced by

transportation expenses. researchers choose this issue to create a study that

will benefit the following: Students, parents, public utility vehicle drivers,

future researchers.

STUDENTS

Children's development becomes slower because of the pressing problem of

inflation. A few parents can afford to send their kids to schools, colleges, or

universities. Through this study, students will be aware about the inflation.

This study will provide students with the tools to manage their finances better,
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enhance their ability to budget effectively, and make informed decisions

regarding transportation expenses. It also aims to offer valuable insights and

strategies for handling transportation costs, ultimately leading to improved

financial well-being for students. This will help them to make wise choices

about their transportation expenses and allocate their resources wisely.

PARENTS

This study helps parents understand why they need to increase their

children's allowance as well as how their child should budget their allowance.

When students face the challenge of managing high transportation costs, it

can be an opportunity for them to develop and improve their budgeting skills.

Parents may play a role in teaching their children how to create and stick to a

budget to cover these expenses. This can include teaching them about

saving, prioritizing expenses, and making responsible financial choices.

PUBLIC UTILITY VEHICLE DRIVERS

This study provides drivers with a deeper understanding of the financial

challenges faced by students, particularly in relation to transportation costs,

fostering empathy and more considerate interactions with student

passengers. Recognizing the financial challenges students face allows drivers

to provide a more supportive and considerate environment during commutes,

ultimately contributing to student well-being.

FUTURE RESEARCHERS

This study will provide a structured guide to those future researchers,

through this study it enables them to make informed decisions about topics

related to students’ financial management, transportation cost. Researchers

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can make new findings to explore new dimensions, refine existing theories, or

uncover previous unexamined aspects. The researchers can utilize the

insights from the study to inform and shape policies aimed to lessen the

financial challenges faced by student’s due to transportation cost. The

researcher’s findings may serve as a basis for recommendations and policy

adjustments that enhances financial well-being among students.

SCOPE AND LIMITATIONS

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SIGNIFICANCE OF THE STUDY

the researchers start the study toward the impact of high costs for
transportation on students' financial management, the results will not only
increase awareness of this frequently ignored problem but also guide
institutional support systems and policy decisions intended to lessen the
financial burden on students. We may endeavor to create a more accessible
and financially viable higher education environment that will eventually benefit
students and society at large by better comprehending the difficulties faced by
transportation expenses. researchers choose this issue to create a study that
will benefit the following: Students, parents, public utility vehicle drivers,
future researchers.

THE STUDENTS

Children's development becomes slower because of the pressing

problem of inflation. A few parents can afford to send their kids to schools,
colleges, or universities. Through this study, students will be aware about the
inflation and

THEIR PARENTS

PUBLIC UTILITY DRIVERS

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FUTURE RESEARCHERS