“The Financial Problem of Students”

Delabanda, Kyle
Navigar, Realyn
Quitor, Babylyn
Segara, Anglica
 Chapter l
The Problem

Introduction

According to Wooden (2019), “do not let what you cannot do interfere with what you can do.” This

means that in attaining success, you must not be affected by the things that make you unable to reach it. Money

is so important in the life of a student because it is the main financial resource for a student to support his/her

needs (Fazli and Jariah 2003). Using money involves two major aspects, namely to fund education, and also to

finance the cost of living, added by (Rahman 2015). Moreover, finances are affecting student’s academic

experiences (Grasgreen 2012). This means that financial aspect plays an important role for a student who is

studying and preparing for the future.

This study focuses on the student’s financial struggle and how can it affect their dream in attaining

success. Here, the researchers would like to discover ways and ideas in facing this struggle as a student. The

researchers aim to know how the independent variables of this study affects the students in attaining success.
Conceptual Framework

Independent Variable Dependent Variable

-Sex

-Age

-Socioeconomic status Student

-Household members

Figure 1: The schematic diagram showing the independent and the dependent variables of the study.

Statement of the Problem

This study aims to answer the following questions:

1. What is financial problem?

2. What are the effects of financial struggle to the students?

3. How do students deal with financial problem?

Hypothesis

Financial struggle is the major problem that a student experiences in attaining success.

Significance of the Study

This study aims to gather information and ideas from the students who experience financial struggle or

problem. This research would like to motivate and inspire students in facing challenges in school especially in

their struggle on financial aspects. This would like to help the school figure out if how many of the students of

La Purisima High School are experiencing financial problem.

Delimitation of the Study

The limitation of this study is on the financial problem that experienced by the students includes its cause

and the effects that it can give to the students. This study also discuss about the ways on how one is dealing it.
Definition of Terms

Students. A person who attends a school, college or university (Struggle 2020). In this study, it is defined

as the respondents of the study who struggle financially regarding school fees and other school expenses.

Financial Problems. A situation where money worries are causing one to get stressed (Financial Problems

2020). In this study, it is recognized as a major problem that students are facing.

Sex. Refers to either two main categories (male and female) into which humans and most other living

things are divided on the basis on one’s reproductive functions (Sex 2020.). In this study, it affects the students

which are recognized as the dependent variable.

Age. The length of time that a person has lived or a thing has existed (Age 2020). In this study, it is one

of the factors affecting students in dealing financial problems.

Socioeconomic Status. The social standing or class of an individual or group and often measured as a

combination of education, income and occupation (American Psychological Association 2020). In this study, it

is defined as the position of student’s family in the society which can affect the student on financial aspect.

Household Members. Persons who for any period of time are living together, sharing occupancy of

dwelling (Law Insider 2020). In this study, it is defined as the number of persons living in a household that are

also affecting students in facing financial problem.

 Chapter II
Review Related Literature
This chapter shows the reviewed literatures that are related to the study. All the literatures that this

chapter is containing are relevant to the topic so that researchers will be able to reach the aimed results. The

researchers search for factual information to support every claim of this study.

What is financial problem?

Financial problems or financial pressure is a situation where money worries are causing you stress.

(Financial Problems, n.d).

Donohoe (2019), defined financial problem as a kind of money problem that makes one distress, and

have the difficulty in paying bills. It can also range from not making enough money to students. Donohoe also

added that financial problems or struggles can make one struggle to plan for the future such as children’s

education. Moreover, Donohoe cited that financial struggles can include the following:

1. Income problems. This involves having not enough income to pay bills and can happen due to making low

wages, not receiving regular raises, having limited promotion opportunities or losing job entirely.

2. Excessive debts. Debts further add to your financial problems due to the high interest you might pay and the

risk of late or missed payments since it also add to your monthly payments obligation.

3. Spending habits. This may depends on two types of spending which are overspending by making frivolous

purchase or paying too much intends and underspending which is the use of many on daily necessities only.

4. Not saving enough. When one does not save money to help him/her through an emergency or plan for future,

one can face numerous financial struggles that hurt one’s quality of life.

5. Investment issues. If one invest a lot of money just to experience a downturn and the market, you can lose a

lot of savings and at the same times you can experience financial problems if you do not invest at all since you

are not getting any significant return on your money.

 6. Lack of oversight. Without putting time aside two manage your finances or plan a future, one may

experience an unpleasant surprise when one does not have the body he/she need. When an individual do not

check his/her account balances or debts, it is harder to keep control and avoid financial issues.

Financial problem is a situation in which you are not able to meet your bills on time or afford necessary

basic needs (What is financial problem n.d.).

Therefore, financial problem is the situation that can give stress and pressure. For students, it includes

the worrying about having lack of money to sustain the daily needs in school expenses and school bills.

Financial problem to the student

Students in higher education require more money to cover the cost of study and the costs in public and

private educational institution are on rise (Daud, Norwani and Yusof 2018).

According to Doris, McCarty and Carter (2015), the increase in the cost of higher education means the

decrease in the real median income at the same time. The increase in student’s debt are all current problems that

are often discussed. Students have reacted to the rising cost of higher education in many ways and some of them

coped with rising tuition by working more hours. An increase in financial stress among students are largely due

to education expenses. Fosnacht (2013) found that students with financial stress distinguish a less supportive

campus environment, but focused on ways that students cope with stress rather than the impact of that stress on

academic performance. Being financially stressed were more likely to drop courses and less likely to graduate.

Another study of Medina, M. (2013) cited that financial hardship may directly influence a person’s cognitive

ability. Not being able to pay your bills may affect more than just your credit.

Moreover, in the study conducted by Masud (2020) it is revealed that a student is dealing differently

financial aspects through his/her experiences in socializing financially. When an individual failed to manage or

control financial resources, it can lead to several financial problems.

Furthermore, when a student cannot manage finances accordingly, one may face financial problems.

This is experienced by majority of students who are in financial independence without parents’ supervision.
Because of this, students fail to handle all finances or flow of their money properly according to (Marthen

2011). Richards (2020) also added that many students believe that financial problems are having an adverse

effect on their academic performance.

How do students deal with financial problems?

In the study conducted by Farrrington (2014) it had been stated that with the rising of a higher

education, more and more high school seniors are having a hard time figuring out how to pay for school fees.

But with budgets cuts and less charitable donations, organization are offering students less financial aids.

Being a student is not an easy thing because one does not have freedom and the qualification to work on

a permanent basis and earn money. However, a student still needs to pay for goods daily (Nyadzi 2019).

As stated by Jewell (2014), working while studying is becoming an increasingly common phenomenon

among students in higher education. Students are increasingly taking up opportunities to work while studying.

Employment while in session (referred to as term-time employment) is necessary to take care of students’ basic

consumption needs. Given the basification of higher education, term-time employment is also a way for students

to gain additional transferable skills and distinguish from the mass.

References

Bennett, B. McCarty, C. and Carter, S. (2015). The impact of financial stress on academic performance in

college economic courses. Retrieved from http://www.questia.com/library/journal/lp3-3966657951/the-

impact- of-financial-stress-on-academic-performance

Daud, N. Norwani, N.M. and Yusof, R. (2018). Student’s financial problems in higher education institutions.

Retrieved on from hrmars.com

Donohoe, A. (2019). Definition of the financial problems. Retrieved on from

http://www.sapling.com/5872669/definition.financial.problems.

Farrington, R. (2014). The challenges of college financing facing high school seniors. Retrieved on from

forbes.com

Grasgreen, A. (2012). Money on the mind. Retrieved on from www.insidehighered.com

Jewell, S. (2014). The impact of working while studying in educational and labour market outcomes. Retrieved

on from

https://www.omicsonline.org/open-access/business-and-economics-journal2151

6219.1000110.php?aid=31717

Lifeline Org. (2020). Financial problem. Retrieved on from

https://www.lifeline.org.au/get-help/topics/financial- problems

Marthen, E.M. (2011). Financial problem among students. Retrieved from

https://www.scribd.com/doc/76041053/financial_problem_among_students

Masud, J. (2011). Financial behaviour and problems among university students: need for financial education.

Retrieved on from

https://www.researchgate.net/publication/228404924_financial_problem_among_university_students_ne

ed_for_financial_education
Nydzi, R. (2019). 8 ways to overcome students financial Difficulties. Retrieved from

https://www.cegastacademy.com/2019/06/08/8-ways-to-overcome-students-financial-difficulties/

Rahman, A. (2015). Problem-solution essay (student’s financial problem). Retrieved on from

ayunrahman94.blogspot.com

What is financial problem? (n.d.). Retrieved on from https://www.igi-global.com/dictionary/financial-distress-

and-health/47382
 Chapter III
Methodology
Research Locale

The researchers conducted this study at La Purisima High School, a Catholic institution located at Brgy.

Western, Wao, Lanao del Sur. The research locale is chosen since the researchers are learners of the mentioned

institution giving the researchers access on the target respondents of the study. This also helps the researchers to

save money and time in conducting the research.

Figure 2: The locale of the study.

Respondents of the Study

The respondents of this study are the students of La Purisima High School from grade 7 to grade 12.

Whose age range from 12 to 21 years old because they belong to a higher education where they encounter

financial problems and struggles in attaining school life fees, tuition and daily school necessities. Also, the

researchers would like to know if the respondents were able to cope with this struggle or problem.