:

EFFECTS OF FINANCIAL PROBLEM

TO THE SCHOLASTIC
PERFORMANCE OF GRADE 10-
PLETSA

Pacle, Icy Grace

De Lara, Faith Cloie
Sabuero, James Ryan
Baitus, Axle Gheldy
Javier, Jullan
Gamboa, MJ
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CHAPTER 1: RESEARCH PROBLEM AND ITS

BACKGROUND

INTRODUCTION:

Money is important in the world today, However the problem is that

some people have lots of it and most people have less than

enough. Specially most of the students are facing financial crisis

because they do not have the knowledge on how to manage their

money. When students facing financial crisis, they would be facing

a lot of stress and could not concentrate on the lecturer which will

bring impact to their scholastic performance such as their grades

and result that will affect their future when finding jobs. (EduBirdie

™Writing platform) However, students have been facing financial

problems lately and this problem had become a major problem for

students. Financial problem faced by students are known as they

do not have enough money for their daily expenses, where money

worries is causing them to stress. Financial position will affect their

commitment in learning which will affect their academic

performance. Moreover, due to pandemic it had made most of the

country facing lack of jobs and increases the cases of students

facing financial problem.

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STATEMENT OF THE PROBLEM

3.) HOW MANY STUDENTS IN GRADE 10- PLETSA

EXPERIENCE FINANCIAL PROBLEM?

2.) WHY, DO THEY EXPERIENCE FINANCIAL PROBLEM?

3.) HOW DOES IT AFFECT TO SCHOLASTIC

PERFORMANCEOF GRADE 10- PLETSA LEARNERS?
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DEFINITION OF TERMS

Financial problems can happen due to reasons within and outside

your control. Financial stress can occur in many situations and

under various circumstances- what causes one-person financial

stress include losing your jib or being retrenched, long term

unemployment, and can affect your academic performance as well

as it can cause stress.

As, mentioned earlier, a fundamental assumption of positive

psychology is that character strengths moderate the effects of

stress on well-being (Park and Peterson, 2010 Peterson, Gerhardt

&Rode 2011). In this study, it explored the role of hope in

moderating the negative relationship between financial stress and

scholastic performance of Filipino students. Hope theory, (Synder

2013) defines hope as positive cognitions related to one’s

expectation and ability to attain important life goals. More

specifically, hope is defined as “a cognitive set that is based on a

reciprocally derived sense of successful agency (goal- directed

determination) and pathways (planning to meet goals)” (Synder et

al.,2013, p.571) Research has shown that hope is consistently

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associated with various indicators of well-being (Gilman, Dooley &

Floreel, 2010, Marques, Pais -Riberio, & Lopez, 2011, Wong and

Lim, 2012) incuding among low-income youth (Adelabu 2016)

More importantly, hope moderates the relationship of different risk

factors and depression (Ashyby, Dickinson, Gnilka, & Noble, 2011,

Visser, Loess, Jeglic, & Hirsch, 2013), consistent with the

assumptions of positive technology.

The locus-of- hope model (Bernardo 2010) is an extension of hope

theory that differentiates between internal and external agents in

goal- directed hopeful thoughts. The original hope theory is

assumed to represent an internal locus-of-hope (LOH), wherein

hope involves including the sources of stress (Calaguas 2012:

Pengpid, Peltzer & Ferrer, 2014), responses to stress (Dy,

Espiritu- Santo, Ferido, & Sanchez,2015 Labrague et al,.2017) and

various psychological and educational correlates of stress

(Calaguas, 2011: Pengpid et al,. 2014: Reyes et al ,. 2016:

Tamanal, Park, & Kim, 2017) and various psychological and

educational correlates of stress (Calaguas, 2011: Pengpid al,.

2014: Reyes et al,. 2016: Tamanal, Park, & Kim, 2017), There is

noticeably higher frequency of published studies on stress- related

experiences of students in the Philippines (e.g., Labrague, 2014:

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Labrague et al., 2017) which may be explained by the continuing

rise in enrollment in educational program in the Philippines. A few

studies have inquired into stress- related experience as symptoms

of more complex psychological problems of students (e.g.,

Gingrich, 2014: Sta.Maria et al., 2015). Interestingly, even with the

increase in the number of published studies tackling stress

experienced by Filipino students, there seems to be more studies

on the subject with Filipino- American students (e.g., Nadal, Pitue,

Johnston, & Esparaggo: 2010): Wei, Ku, & Liao, 2011), which

suggest that more research could definitely be done on stress-

related experiences of Filipino students.

One of the sources of stress for students that has been observed

among higher education systems in different parts of the world

relates to financial pressures (Aherne, 2011: Joo, Durband, And

Grable, 2018: Roberts, Golding, Toweel, and Weinreb,). Not

surprisingly, stress related to financial strain and uncertainly has

negative impact on student well-being (Mahmoud, Staten, Hall, &

Lennie, Grable, 2018; Smith, Hockemeyer, Heron, Wonderlich, &

Pennebaker, 2018). Student’s needs (Hyun, Quinn, Madon, &

Lustig, 2016), difficulties in college adjustment (Meehan & Negy,

2013), and a range of adverse behaviors, social relations, and

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academic outcomes (Adams, Meyers, & Beidas, 2016; Northern,

O’Brien, & Goetz, 2010).

Experiencing financial stress is not unlikely among Filipino

students, and government statistics suggest that a significant

proportion of the school-age population experience financial

difficulties. Starting at the basic education level, almost 20% of

Filipino children who dropped out of school mor quitting mentioned

insufficient financial resources as the main reason for quitting

school (Philippine Statistics Authority, 2015). Dropping out of

school was most probable among 17-year-olds, particularly among

those from the lowest income families (Reyes, Tabuga & Mondez,

2015). In the college population, the top reason (mentioned by

37.58%) for not going to college university was the high cost of

higher education; moreover, about 16.0% of those who opted not

to pursue higher education report that they did so in order to look

for work to earn money for their families (Reyes et al,. 2015) In the

current study, financial stress would be negatively related to

subjective well-being or specifically, life satisfactions of Filipino

students. There are currently no published studies that show this

relationship with a Filipino sample. One recent study did not

actually measure financial stress, but showed that sense of

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poverty was associated with the experience of psychological

distress among students (Reyes & Yujuico,2014).

Financial Stress and Well-being Among Filipino Students

According to the old review of published psychology, research in

the Philippines, stress coping has been one of the most intensively

researched to topics among Filipino psychology researchers

(Bernardo, 2010). But there were hardly any studies that focus on

stress experiences of Filipino students in that review, a trend that

has improved the last decade with the publication of some studies

on Filipino student’s stress- related experiences. This observation

reflects a similar trend in other parts of the world where research

on stress experienced by higher education students came

relatively late compared to stress research on other populations

(Michie, Glachan, & Bray, 2010). As a reflection of this trend in

other countries, research on stress in higher education students

increased in the past two decades, and psychologist now have a

better understanding of the range of stressors for students

(Robotham & Julian 2016) and factors related to student’s stress

(Beiter et al., 2015). Various psychology assessment tools have

also been developed to measure higher education student’s stress

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(e. g., Ross, Niebling & Heckert, 2010; Sarafino & Ewing, 2010)

and general measures of stress have been adapted or validated

for use in specific populations of college students (Camacho,

Cordero, & Perkins, 2016; Chan & Bernardo, 2017).

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SIGNIFICANCE OF THE STUDY

The findings of this study will give benefits to learners of Grade10-

Pletsa by giving advices to them on how to manage their money

wisely so they wouldn’t face financial problem or at least, It can

help them to lessen their financial problem. Since financial problem

would cause them stress.

When a learner is stressed, they wouldn’t pay attention on their

study and that will affect their grades. Moreover, they will know

how to solve those financial problem they are facing with the

solution at the end. (TPR Education, 2018)

In Addition, conducting this research would also help students of

Grade10- Pletsa to realize how hard financial problem can be.

What can financial problem affect to one another including Social,

Emotional, Family, Physically and specially the academic

performance

Although these connections are difficult, having them is very

important to get everyone on the same level of financial

knowledge. If you don’t know enough about money, poor decisions

are easy to make. A missed opportunity, a loss of savings, or

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investment gone wrong can all happen without financial education

and it’s one of the big causes of financial problems. (Harley, 2022)
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PURPOSE OF THE STUDY

This research will help the students of Grade10- Pletsa sees the

struggle of our other classmates we this can help them in a way by

conducting this research and also learn several ways how to cope

or how to think if were experiencing financial problem ourselves.

Financial problem can result to financial stress, if your financial

stress is severe, you will experience negative effects on your

mental health and potentially even your physical health. Financial

stress can lead to anxiety, depression, behavioral changes like

withdrawing from social activities, or physical symptoms like

headaches or stomachaches (Elizabeth Scott, 2020)

The purpose of this research, is to identify the factor and help

Grade 10-Pletsa learners how to cope with the stress and in able

to rethink the things they spend their money on, and also to let

them know what can happen and the results if they don’t take the

negative effects of a financial problem can take.

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CHAPTER ll: REVIEW OF RELATED LITERATURE AND

STUDIES

This chapter presents the related literature and studies which

covers the study of the impact of financial problems to the

motivation of the respondents where part of several literature

materials will be shown to fully understand the research to be

done.

RELATED LITERATURE

On Financial Problem

Foreign

According to Lifeline Australia (2016), financial problem is a

situation where money worries are causing individual stresses.

Many people are facing hard financial times and the impact on

mental health, academic performance or motivation can be

significant. This includes worrying a lot of feeling anxious over

money, arguing with loved ones, headaches, feeling guilty

spending money on non-essentials, anxiety, stress and even

falling grades in school

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A typical financial problem of students is they don’t take the time to

asses before they reach an excess in credit card debit or other

debts. Many students who are out on their own for the first time

may get caught up in a cycle of overspending that comes with

eating out, buying new clothes or partying. This lifestyle can

become very expensive quickly, and as a result, it can increase

overall debt. To avoid unnecessary expenses, follow a budget in

which you pay your necessary expenses first and leave yourself a

specific amount of your income for entertainment. Then stick to

that budget. Try cost-saving ideas such as watching movies at

home, cooking your own meals regularly and buying clothes from

discount stores (McDaniel 2018)

According to Virstracte (2013), financial problem is the main cause

of students enrolled in college to dropout. About 30% of Quebee

University’s student dropout due to financial problem. It has been

established that financial problem contribute to dropping out, but it

is under how different methods for financing post-secondary

education influence persistence and academic success in

university.
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Local

Many governments have adapted a policy of seeking to increase

the number of students entering higher education and to finance

this expention by transferring cost from the state to the individual.

Some policy has been pursued relatively little concern for the

impact that the increasing financial burden may have on students.

According to Villafuerte (2015), Many students are coping with

their day to day living cost more comfortably than they expected to

in the first year.

However, those in difficult financial position at the start of their

period of the study were likely to face greater problem in the

course of their first year. Two difficulties in particular having

missed payments at the start of the academic program, and having

to wait for the first student loan payment were shown to have a

damaging effect on academic performance.

Poor financial management is one of the main causes of financial

problems among students. According to Allan Greenspan, “The

number one problem in today’s generation and economy is the

lack of financial literacy”. Most students tend to fail in managing

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their money (Marthern,2011). These problems are common among

students who are attempting to balance small budgets with living

expenses and also for those students who tend to spend a lot for

their ones and not for their needs.

Heavy borrowings and a lack of saving habit have been blamed for

the financial problems the Filipino’s are facing in the country and

abroad (Nicolas,2015). The Philippines has one of the fastest-

growing economics in the present, giving the people the chance to

have more financial power than before. However, all these will only

go to waste if we do not understand how money habits, thus

leading to financial problems (Go,2017)

On Motivation

Foreign

According to the PMEIOK (Project Management Body of

Knowledge), motivation is powering people to achieve high level of

performance and overcoming barriers in order to change.

Psychologists have been provided different definitions according to

attitude to the motivation phenomenon. What is certain and must

be acceptable to the market individual differences is that people

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have different motives. In, addition individuals need to know their

personal characteristics in driving forces which can be easily

identified before acting with motivation. Generally, motivation is the

driver of guidance, control and persistence in human behavior

(Tohidi & Jabbari, 2011).

Motivation is a powerful, yet it can be a confusing and hard.

Sometimes it is really east to get motivated and you find yourself

wrapped up in a whirlwind of excitement. Other times, it is nearly

impossible to figure out how to motivate yourself and your gonna

lose your focus and end up procrastinating. According to Lloyd I.

(2011). ‘At some points, everything is ending. Have you even

started?’. In other words, at same point, it is easier to change than

to stay the same. It is easier to take action and feel insecure at the

gym than to sit still and experience self-loathing on the couch. It is

easier to feel awkward while making the sales call than to feel

disappointed about your empty bank account. This is the essence

of motivation. Every choice has a price, but when we are

motivated, it is easier to hear the inconvenience of action than the

pair of remaining the same. Somehow, we cross a mental

threshold usually after weeks of procrastination and in the face of

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an impending deadline and it becomes more painful to not do the

work and actually do it (Clear, 2018)

Local

Motivation is defined as “The psychological forces that determine

the direction of a person’s level of effort, as well as a person’s

persistence in the face of obstacles. (Lockwood, 2010). Motivation

provides a goal that the employee works towards. Thereby giving

the employee a direction to follow. The concept of motivation

means a process of stimulating people to action to accomplish

desired goods (Constanta, 2012)

A vast body of literature exist on the relationship of motivation and

performance in professional work and organization settings

(Osterloh, Frey & Homberger, 2011). Motivation is the process of

attempting to influencing others to do your will through the

possibility of gain or reward (Roque, 2016). Beyond work settings

motivation may influence performance in academic settings and

among university students.

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RELATED STUDIES

On Financial Problem

Foreign

Many students believe that financial problems are having an

adverse effect on their academic performance; a survey of

university of Central England Undergraduates has shown

veracious result. The survey, carried out by UCE’s Centre for

Research into quality (CRQ), found that 51.9% of the 1139 full-

time undergraduates police believes their academic performance

was suffering and 15.1% believe that there was a major negative

impact.

Financial problem in a referred to as inability to manage expenses

(Falahati and Rains, 2012). Therefore, the people’s ability to

manage his or her personal finance has become an important

issue because people looking at the different aspect of their

financial affair. Most of people no longer looking at financial affair

like savings and borrowings but also, on long-term prespect such

as retirement plans, children plan, family future, home and similar

items. The investment decision also a part of sources of finance by

individuals. Thus, an individual may seek to borrow from banks,

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financial institution such as credit union, through credit card and

also from friends or family members when they are in need of

money (Ibrahim and Alqaydi, 2013).

Financial problem is quite common and they contribute a huge

percentage of motivational problems found in the workplace. In

most scenarios, financial difficulties are in result of poor choices

made by the individual (Ford,2010). However, in some instances

the financial hardships are a result of situation beyond the control

of an individual. Some common financial problems that are

experienced by employees include minimal or no medical

insurance, mortgage payments, gambling addiction, lack of

savings and fraud (Shinick, 2010).

Local

Experiencing financial problem is not unlikely among Filipino

students, government statistics suggest that a significant

proportion of school-age population experience financial

difficulties. Starting at the basic education level, almost 20% of

Filipino students who dropped out of school mentioned

insufficiently financial resources as the main reason for quitting

school. (Philippine Statistics Authority, 2015)

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Dropping out of school was not probable among 17-year old’s,

particularly among those from the lowest income families (Reyes,

Tabuga, Asis, and Mondez, 2015). In college age population the

top reason (mentioned by 35.58% for not going to college or

university was the high cost of higher education; moreover, about

16.0% of those who opted not to pursue higher education report

that they did so in order to look for work to earn money for their

families (Reyes et al., 2015).

Only 18 percent of Filipinos saw themselves as “thriving”

financially, while the rest of the represented population said they

are “struggling” or “suffering” in terms of economic security (The

Philippine Star, 2015). The recent Gallup-Healthways State of

Global Well-Being Index 2014, reported that Filipino’s perception

of financial security is notably below the Asian and global averages

of 25 percent. The study found that 52 percent of Filipinos reports

to be struggling in terms of financial well-being, while 30 percent

are suffering. It also indicated that suffering is more prevalent

among Filipino rural residents (35 percent) than those who live in

urban areas (24 percent). Financial problems can have many

causes, and produce disastrous results when not handled promptly

and properly (Quezon, 2011).

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On Motivation

Foreign

Motivation issues experienced in the work place are not

necessarily caused by work environment. In some cases, external

factors not related to work environment are the primary reason that

so many workers are incapable of performing to the best of their

ability. “People tend to underestimate the importance of external

factors and overestimate the importance of internal factors as

influences on those behaviors” (Baack, 2012). Through the

exploration of how financial problems can affect motivation in

employees and how the motivation of these employees can be

boosted, a better understanding of performance issues and

motivation can be gained.

Motivation is another important factor that affects a student’s

education. It can have a very important impact on the amount of

effort that is exerted. Motivation is defined as the internal force that

compels a person to meet a certain need (Goodman, 2011).

Goodman et al. identified motivation as a starting point, which

goes on directly affect both effort and academic performance.

Then effort also goes on to directly affect academic performance

as well.
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Several theories on motivation have been developed throughout

the years. A society for Human Resource Management (SHRM),

white paper lists of the following theories of motivation as the most

influential in generating understanding on the concept of

motivation within the workplace. Masslow’s hierarchy of needs,

Hezbierg’s motivation hygiene theory, and McClelland’s needs for

achievement, affiliation, and power, to name a few (Lockwood,

2010).

Kucukozkan (2015) defined motivation as the sum of the efforts

made for mobilizing the individual towards one or more particular

goals and for ensuring the continuity of this movement, whereas

according to Waterman (2015), it is a force representing the

internal factors initiating the movements that should be performed

to fulfill a need and the external force that encourage this behavior.
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CHAPTER 3: RESEARCH METHODOLOGY