Budgeting Practices and Spending Habits of Generation Z Employees: A Descriptive–Correlational Study in Matalam, Cotabato, Philippines

Managing finances is a critical challenge for young workers due to rising expenses and limited financial literacy. Poor budgeting often leads to overspending and debt, whereas effective practices promote stability. This study addressed a notable research gap in local empirical evidence within rural or semi-urban Philippine contexts, specifically in Matalam, Cotabato, regarding the direct link between budgeting and the spending habits of Generation Z employees. Using a quantitative-descriptive correlation design and convenience sampling, data were collected from 100 respondents. The findings revealed a significant positive relationship between budgeting practices and spending habits (r = .802, p < .05), indicating that improved budgeting directly fosters more disciplined income allocation. These results support the Theory of Planned Behavior, showing that attitudes and social influences shape financial conduct. Practical implications suggest that employers in Matalam can utilize these insights to develop financial literacy programs and employee wellness initiatives to enhance the financial resilience of young workers. The study recommends that Generation Z employees adopt disciplined saving behaviors to mitigate financial stress. Future researchers are encouraged to explore additional variables across a wider locale.