SPENDING AND INVESTMENT PATTERN OF MPSPC EMPLOYEES
ESTER ROSE S. ALIKES

ABSTRACT

This research is anchored on the principle that the consumer unit seeks to allocate its income among many alternative goods in an effort to maximize its utility or well-being. This situation analysis evaluates the spending and investment pattern of the MPSPC employees on their income using the Independent-Dependent Variable Model of research. It adopted a questionnaire in determining the budget priorities of the employees on investment and in their household needs. Results show that the employees have a moderate priority in spending their income on household needs while investment is a least priority. On the other hand, borrowing is the adjustment used by the employees to finance their needs.

The results illustrate that the employees spent most of their income on household expenditure particularly on food, education and utilities consumption. As a result thereof, little amount is left for investment spending which is sometimes not enough especially when they invest in the acquisition of real properties or construction of family home. Therefore, most of the respondents resort to borrowing in order to sustain their need as a result of the dissaving done due to household expenditures and investment vis-a-vis their income. The study therefore recommends that spending pattern should be improved by the employees in order to attain the maximum use of their income. On the other hand, investment pattern should be enhanced by providing training and seminars to arouse the interest of the employees in investing and encourage them to put their surplus income in any available investment options that may increase their profit in the future. On borrowing, this can be reduced by providing lectures or seminars on credit planning. It is also recommended that the Human Resource Office should include financial flexibility as part of the Human Resource Development Plan to assist the employees achieve financial freedom. Furthermore, same topics should become part of the discussions or lectures during the orientation of the new employees. Lastly, the institution should see to it that the minimum take-home pay stated in the General Appropriations Act for the Fiscal Year 2016 (RA 10717) should be implemented.