Background of The Study
Background of The Study
Background of The Study
RESEARCH HYPOTHESIS
Ha: Financial stress has a significant effects on the academic performance of students.
Ho: Financial stress has no significant effects on the academic performance of students.
Students. The study will benefit the student's because they are the subject
in this research and they will also be taken to advise if financial stress has a
negative impact on their education.
Parents. This research will benefit the parents by knowing how to resolve
the financial debt that their child is experiencing at school. This research will
also help parents to give their child attention or time to avoid stress or
depression in their academic performance.
Teachers. This research will benefit the teachers for the purpose of having
knowledge about handling money and more experience on how to prevent
emotional breakdown. They are exposed to the students everyday: they can give
advice after the result was conducted.
CHAPTER II
Review of Related Literature and Studies
This chapter does a review on relevant literature from articles, journals, books and
publications on financial literacy among senior high students. This chapter also forms
the theoretical and empirical basis upon which the study is conducted. The chapter
there foreconsiders the academic theories and the various views expressed by
scholars on the topic.
Financial problems are commonly faced by everyone, especially for those who
come from underprivileged or low-income families. According to Asri, Abu Bakar, Lili
and Saad (2017), stated that although students do not have a commitment on paying
monthly debt instalments like other households, however, their status as students
requires them to pay their education fees, rents and other essentials, by which they
received the financial from loans, scholarships or their families. In addition, students
who come from underprivileged or low-income families might affect their academic
performance. Many past research has been done to show a relationship between
financial problems and the students' academic performance
In other words, financial problems lead to various problems that will eventually
affect the students academic performance. Another way financial problems could
affect the students' academic performance is stated by Widener (2017), in order to
overcome the financial problems, most students make a decision of having to work part
-time and even working for a long horse, which takes away their time focusing on their
academics. Hence, having a part-time job leads to a lack of studying, taking less credit
hours and also poor attendance resulting in their poor academic performance. This can
be supported by a study from Widener (2017). It found that students who are financially
depressed had lower grades and enrolled in fewer credit hours. Most students are
involved in part-time jobs given by universities or local companies. According to Asri et
al. (2017), the students who come from underprivileged socio-economic status families
are often constrained by problems such as needing to work to help their families,
incapable of buying learning materials that will ultimately impact their academic
performance. According to Permian (2019), CNBC journalist, stated that having a part-
time job during the study takes a greater impact on low-income students, where by
approximately 6 million students took a part-time job, and most of them are women,
Blacks and Latinos. By juggling between jobs and academics, some students have to
struggle to overcome and manage their financial problems.
The concept can also be looked at from a broader perspective as OECD (2005)
defines financial literacy as “the process by which individuals improve their thought
about financial concepts through communication and instruction to make individuals
confident and aware of financial risks and opportunities so as to achieve financial well-
being,. Remand (2010) tries to conceptualize the definition of personal financial literacy
into five categories which include; knowledge of financial concepts, ability to
communicate about financial concepts, aptitude in managing personal finances, and
skill in making appropriate financial decisions, and confidence in planning effectively for
future financial needs. This implies that financial literacy goes beyond the effective use
and management of money and considers other important areas in finance. Financial
Literacy and Education Commission (2007) have also defined financial literacy as the
capacity to apply ideas and skills to effectively manage financial resource sin order to
achieve a long lasting financial soundness.
The impact of financial stress on children is however centered on the attitude of the
Children literature has shown that financial stress influence impacts positively
towards the learning behavior of children in relation to money management (Hayat,
2008).
To examine how well equipped young people are to make financial decisions, we
analyzed financial literacy questions newly added to the National Longitudinal Survey of
Youth fielded in 2007-2008.
FOREIGN STUDIES
According to Dang and Bolus (2015), stated that many Americans are affected by
the economic downfall. Even college students often worry about their finances, which
then this financial worry may affect their academic performance as the students are
dividing their attention between financial and academic. Hence this can be stated that
the family's finances are motivation and encouragement for the students to have a good
academic performance. Sari et al. (2017) added that when a highly motivated student
encounters a financial problem, the student will turn the problem into motivation for
them to achieve success. Therefore, whatever problems that come, which include
financial problems, should not hinder the students if they want to succeed academically.
According to Widener (2017) mentioned that there are two ways of how a financial
problem could affect the students academic performance which are health problems
and having to work part-time. Widener (2017) further added that financial problems lead
to health problems such as anxiety which then lead to negative behavior’s such as
addiction to alcohol or uncontrolled shopping, hence making the students lose their
focus on their academics. When students face financial problems to cope with the
high cost of living, they are more exposed and vulnerable to health problems. Therefore,
here comes the issue of whether students who have financial problems can handle the
stress of managing their daily lives and finance. According to Asti et al. (2017) stated
that poor financial management could cause an individual unable to control the stress
and thus it affects their daily life such as health by making them depressed and
becoming physically ill. This can be further supported by the study of Asti et al. (2017)
which stated that one of the causes of stress among students is because of their
financial problems in which the students tend to feel dizzy and have anxiety that will
eventually create tension with them.
Family Stress Model (Conger & Conger, 2002) suggests that parenting is a critical
mediator between consequences for children and experience of economic hardships.
Financial stress on parents effects on their children in fairly constant manner. Studies
show that the economic stress (whether due to unemployment, poverty, or financial
downturn) has adverse "trickle down" effects on the children (Siegel, 1984).
According to Brucine de (2010), people who are not inclined in financial literacy tend
to have higher anticipation for in flatiron which consequently affects their whole being
since inadequate personal finance knowledge will limit a person’s ability to make well
versed financial decisions and eventually engaged in impulse buying. Many scholars in
the field of personal finance have indicated that parents have essential impact on their
children consumption pattern as it has been shown in the literature that children tend to
develop their money management processes from 14 parents (Pinto et al.,2005)Parents
then influence the way children handle money and instill the attitudes their children have
towards savings (Eckmeier, 2007).
Almost 20% of Filipino children who drop out of school cite insufficient financial
resources as the main reason for leaving school (Philippine Statistic Authority,2015).
When it comes to academic drop out rates, 20% is a vast number. Our Department of
Education is looking into ways to improve our academic system in order to reduce drop
outs rates. One major reason is an inability to cover school expenses due to financial
difficulties. It is possible that it will have an influence on the students performance and
future.
Found a relationship between students with financial stress and the likelihood they
would drop out of college or reduce their course load. Additionally debt greater than
590,000 has been associated with increased students drop out( Martinez,2011).
CONCEPTUAL FRAMEWORK
The framework includes the different variables used in the study. Financial stress
as the independent variable pertains to the stress that people are developing due to the
financial hardships they are experiencing. Academic Performance, as the dependent
variable, is influenced by the negative effects of financial stress on students, such as
poor physical and mental health. Family Financial Status as the intervening variable
includes the lower, middle, and upper class classified by Income. Financial Status
affects the amount of financial stress and impacts academic performance. The more
financially stable they are, the lesser the impact on the independent and dependent
variables. Based on the data collected, the study will provide solutions to improve
academic performance.
THEORETICAL FRAMEWORK
This research was based on the theory of Stress and Coping since it is claimed to
be more aligned with the research issue, which found a relationship between financial
stress and academic achievement, particularly when it comes to student attrition. This
theory talks about how people cope with a stressful situation and it also mentions that
financial stress may also have a direct impact at a persons cognitive abilities which can
be correlated to our study. Coping styles, according to the notion, are consistent
personally characteristics that define a person's normal response to stressful situation.
These tactics are frequently based on theoretical distinctions of approach vs avoidance
of hazards, which adds to the study's essential findings by explaining how student's with
financial stress deal with their academic performance.
The stress and coping model have recently been expanded with the concept of self-
regulation, which also has a significant role in the study since dealing with financial
stress necessitates self-regulation. The theory also stated that the adaption value of
a certain style of coping might be influenced by the characteristic of the stressful
encounter under consideration, and that is why it is important to study since deciding
which type of coping to utilize in each scenario is crucial. Therefore, the adaptive value
of various coping mechanisms was dependent on the degree to which a stressful
situation could be controlled.
This theory will support our studies since we know that people are undergoing this
kind of stress due to the different situations they are dealing with especially students
with that behavior of the students is being affected. They decide to cope handle their
capabilities, and deal with their crucial scenarios. Due to the decisions of the students,
the academic performance they are dealing with together with the financial stress, is
dependent on how a stressful situation could be manipulated financial stress affects
the behavior and decisions of the students, and because of that, It also affects their
academic performance with the help of this theory, the researchers will have a better
understanding of the impacts of financial stress on the academic performance of
students.
This chapter comprises the procedures of conducting the study. Furthermore, the
methodology provides insight for the audience to cite how the data is being collected
and how the result is being analyzed.
RESEARCH DESIGN
THE INTRUMENTS
The researcher conducted semi-structured interviews to get the information or data
required for this study. This significantly increases the respondents' latitude and
adaptability in their responses. In the first section of the interview, we discuss how
financial stress affects students' academic performance. In the second section, we
discuss how it affects students' academic performance. In the third section of the
interview, we discuss possible solutions to the problem of financial stress.
THE RESPONDENTS
The researcher wrote to the three sections in the FOODS strand for grades 11 and
12 to ask permission to perform a study in each of those sections. The researcher
also provided a letter of support, which the practical research adviser had to sign.
The letter was given to the assistant principal, the principal of Bulan National High
School, and the section adviser for each section. The researcher performed a semi-
structured interview with respondents to gather data after getting the necessary
consent. All pertinent information that was gathered for this investigation was
provided.