Name: Laarni O.
Oledan Grade: 12-ABM Date: December 17,2020
Research Topic: Young Entrepreneurs
Research Title: Perception of Students in Manga, Kolambugan Lanao Del Norte on Making a
Small Business
Background of the Study
Money is a solid foundation of education not only to education but also for everyone’s
lives. It is a primary need which everyone should have especially the students. It means that
money plays a very significant role in education because every students need money to provide
supplies for their learning. John Maynard Keynes ‘say. “The importance of money flows from it
being a link between the present and the future”. Meaning, money is the way for success for it is
linked the present and the future so if you do not have money, then, your way for success will
end.
Financial literacy has become one of the most concerned issues in the developed
countries in recent years especially after the economic crisis of 2008 since the effects of
personal finance are significant to societies. Prior to the economic crisis of 2008, studies on
financial literacy were scarce in academic journals, but governments of many developed
countries however gave the needed attention to the issue of financial literacy after the crisis. For
instance, there was an advisory committee on personal finance which was put in place to
encourage financial literacy awareness among Americans after the economic crisis. The idea of
personal finance has been described in the literature as the awareness and use of financial
knowledge in everyone’s day to day economic activities. It is therefore the application of
financial knowledge and terminologies by individuals in order to make a rational decision.
Personal finance literacy is however conceptualized on certain critical areas in finance
such as savings and borrowing, interest rate, budgeting and financial knowledge (Chen and
Volpe, 1998; Remund, 2010). Past Studies have revealed that Americans tend to have a higher
rate of consumption compared to their savings rate. This consequently led the country into a
total negative savings rate (Sullivaa et al, 2008). This then calls for the need for United States
government to inculcate financial literacy among Americans and thus explains why educators,
policy makers and university officials have paid much attention to college student’s financial
behavior in recent times. The inadequate personal finance among Senior High School students
then has undesirable effects on students’ decision making. The issue of personal finance
therefore must be given the needed attention as students would be facing the realities of
economic hardships after school. This implies that there is the need for senior high students to
be equipped with financial literacy in order to achieve some degree of financial autonomy.
Everyone knows that not all of students has enough money to sustain their school needs
and because of that, lots of them ended being unsuccessful. Some students have no other
financial resources and rely on only in their scholarships and some of them comprise of poor or
orphan families. Perhaps they have no saving because they have used up all their savings and
do not want to borrow from others because of anxiety to burden themselves with debt. So, each
of every students should have a stable source of money like becoming a businessman because
business can provide anyone money that could last in an extended period of time if they took
care of it and they possess the skills of a potential entrepreneur. Because of this, the
researchers will conduct a research regarding on how some unfortunate or financially unstable
students will cope up on this kind of problem.
The problem regarding this is there are plenty of students that are afraid to take risk in
engage into small business. They are thinking of the negative side of the business industry and
not paying attention on what business can do for them in terms of providing money for their
schooling and also for their everyday expenditures. Moreover, taking risk is does not always
ended up as a failure. Richard Branson says that every risk is worth taking as it is for a good
cause, and contribute to a life. Meaning to say, risk taking is essential if someone is seeking for
change in life.
