Analysis of Income Classification and Expenditure Patterns Among Filipino Households Using Data Mining Applications

Abstract

Data Mining is a knowledge discovery process that includes extracting hidden, previously unknown, and potentially useful information from datasets. The analysis of its outcomes can be used for future planning and development perspectives. This paper explores the income and expenditure behavior to determine patterns and associations that describe Filipino households. Drawing from the Family Income and Expenditure Survey of 2015 (FIES 2015) by the Philippine Statistics Authority, a descriptive profile of income and expenditure, a predictive model of income from household characteristics and prescription of important aspects which can be considered by the government in developing policies that may elevate the quality of life of Filipino families, were done. Results showed that the majority of Filipino households are in the first two lower-income brackets and generate negative to no savings at all. For expenditures, majority of the groups spend on Food and Resto. Moreover, the most significant variables that drive the capacity to generate income are education and employment. It is suggested that the government should strengthen its programs in the following areas.