CHAPTER I

BACKGROUND OF THE STUDY

Everyone faces financial difficulties, especially those from low-income
or disadvantaged backgrounds. Financial issues and situations are significant
sources of stress in society. Despite the fact that students do not have the same
commitment to making monthly debt payments as other households, their status
as students requires them to pay their education fees, rents, and other
necessities, which they obtain through loans, scholarships, or their families.
As stated by Hayes (2018)

Financial distress occurs when an individual's bills or expenses are unable

to be met or paid for. Afraid of one's financial obligations or expenses is
defined as financial stress. If a person fails to meet their financial
obligations, their debt can accumulate and become unpayable.
Furthermore, budgeting should be planned and organized because there are
negative outcomes that cause financial stress. Floyd (2019) One of the most
common causes of financial problems is improper budgeting, unexpected
expenses, a lack of savings, and unnecessary spending, which is why they
have poor budgeting at their finance. An individual who has little to no
budget skills such as poor budgeting, overspending, and high loan debt is
bound to face financial deficits as he/she does not know how to locate
the finances that he/she has.

Academic Performance is one of the top priorities of the students in order

to measure their academic achievement. Regier (2011) stated that academic
achievement critical because it is heavily linked to the positive outcomes we
value. Students should concentrate on their academic performance; this,
of course, helps to broaden their knowledge and develop various skills
that they can use in the future. Moreover, they possibly get good and stable
job opportunities due to their academic performance. According to
Prescott (2016), Student financial stress contributes to poor well-being ,poor
academic performance, and low retention. One of the stressors that can affect
various aspects of a person's life is financial stress. Some students
are already struggling financially, which is affecting their academic
performance. As a result, students may suffer from mental illnesses such as
anxiety or depression, as well as poor academic performance, poor health,
and difficulty persevering toward degree completion.

According to a study conducted by several scientists at ("Harvard,

Princeton, and Warwick University," ND.), "financial hardship may directly
influence a person's cognitive ability". It is used in school for comprehending,
thinking, planning, and solving assignment and lectures. In this conducted
research, the researchers will be focusing on the impact of financial stress on
student's performance's.

Therefore, Financial stress has a significant impact on a student's

academic performance. Aside from it is experienced by most people, students
should avert their focus on their studies and the parents/guardians should be the
ones responsible for providing them with their financial needs during their
education. Unfortunately, most of the parents have a low income and struggle to
provide for a student's financial needs that may cause a student to lose focus and
develop stress.

STATEMENT OF THE PROBLEM

General Objectives
Therefore, the purpose of this study is to explore the impact of financial
stress to the academic performance of students. The study aims to answer the
following research question.
Specific Objectives
Specifically, this study seeks to answer the following questions:
1. What are the financial stress faced by senior high students?
2. How did financial stress of the students affect them on their academic performance:
a. Mentally
b. Emotionally
c. Physically
3. What are the coping strategies adopted by students to manage financial problems and
improve academic performance?

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.

SCOPE AND DELIMITATION

This study focuses on "The Effect of Financial Stress to the Academic
Performance of Senior High School Students". Involve in this resume are the
selected grade 11 and grade 12 cookery. It's main goal is to determine the issues
that students are having as a result of financial stress and how this affects their
academic performance. Other strands are not included in this research/study.

SIGNIFICANCE OF THE STUDY

This research will be of great significance in finding out the different
impacts of being financially stressed that may affect one's academic
performance. It will also help to address the financial burden, low grades, stress,
anxiety, and depression experienced by the student where the research will
begin. As a result, this study is being created to benefit the following:

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.

Administration. This research will benefit the administration for them to

provide a solution on how parents can pay in full for their child's tuition fee.
This research will also help the administration to better address this problem
and provide a solution so that students will no longer to be stressed or depressed
about 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.

Future Researchers. This would help the student researchers to be aware

and knowledgeable of the different impacts of their financial stress affecting
their academic performance. It would help them to be better analysis and it
could be a help as a future reference for more studies in the future.
DEFINITION OF TERMS

Financial Problems. Refers to the financial difficulties experienced by

students in paying for their senior high school expenses, including tuition fees,
textbooks, housing, food, transportation, and other living expenses and some
expenses in their respective strand.

Academic Performances. Refers to a students ability to complete

coursework, earn good grades, and maintain satisfactory progress towards their
degree.

Grade Point Average(GPA). Refers to a students average grade across all

courses taken during a specific academic period.

Academic Stress. Refers to the negative emotional and physical reactions

experienced by student's in response to academic demands, such as exams,
assignment, and deadlines.

Anxiety. Refers to a feeling of unease, such as worry or fear, that can

negatively affect a student's mental health and academic performance.

Depression. Refers to a common mental health disorder characterized by

feeling of sadness, hopelessness, and loss of interest in daily activities.

Undergraduate Students. Refers to student's who are enrolled in a bachelors

degree program in a college or university.

Online Survey Questionnaire. Refers to a data collection method that involves

using an electronic questionnaire distributed online to participants. In
conclusion, these definition of terms will help provide clarity and understanding
for the key concept and used in your research.

CHAPTER II
Review of Related Literature and Studies

FOREIGN RELATED LITERATURE

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

According to Olufemioladebinu, Adediran and Oyediran (2018), the parent’s income

or social status has positively affected the students' academic performance in an
examination. This can be further supported by a previous study by Olufemioladebinu et
al. (2018) explained that students who come from low socio-economic family status
tend to show a poor academic performance compared to students who come from a
better family background status. To add, according to Asri et al. (2017) stated that
students who come from a high economic status are able to have a stimulating
learning environment. Hence it is possible for those who have a better family financial
background to excel well and achieve a better academic performance compared to
those students who come from low-income families. According to Nnamani, Dike and
Kinta (2014), they mentioned that financial problems of the students extremely
contribute to the students low academic performance, which therefore leads to the low
quality of education in many ways. As stated in this early literature, financial problems
lead to the financial stress which will eventually influence the low academic
performance of the students. A study from Widener (2017), they mentioned that
financial stress has been consistently related to the students' low academic
performance. According to a study by Asri et al. ( 2017), mentioned that there are
many factors that contribute to students academic performance. However, family
socio-economic are the significant factors as it involves financial management which
will provide motivation for the students to either have passion or not to achieve in their
academics.

Financial stress has been connected to low academic performance. A lack of

financial stability and a lower perception of financial well being may impede student's intended
immediate and long term goals (Tobias 2012). Additionally ( Medina,2013)
financial stress may have direct impact on a persons cognitive abilities, according to
new research led by Harvard, Princeton. The latest research, like those conducted by
luceptia has revealed that students, both those now enrolled and those who have
recently graduated, are stressed out. Student stress is caused by a variety of variables,
but those concerning students financing are particularly important. Students face new
financial duties that they never had before, ranging from day to day expenses to tuition
costs and loan payments. Financial pressure had a substancial influence on
respondents academic progress or performance, and they were much more likely to
obtain federal students loan, private students loan, and personal loans from friends or
family members to pay for their education.

Having academic performance also influence some factors like attendance of

lectures, early revision, prioritizing of learning needs, learning in small groups mind and
time management, and family support. It also measures the students achievement
across various academic subjects: It also measures the students intellectual level,
personality, motivation, skill, interest, study habit, self-esteem or the teacher-student
relationship.(Kuhn et al.,2006, York et al.,2015).

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.

LOCAL RELATED LITERATURE

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.

According to a recent study on financial stress, it is restricted and focuses on the

short-term impact of financial troubles on senior high school students. When it comes
to paying school tuition fees, buying books, study materials, and student debt, the example of
financial stress research in frequently a problem for students. Few research has been conducted
to identify and qualify the long term impacts of financial stress(many senior high school
students report bearing the cost of tuition clone, financial stress has been linked to anxiety and
academic difficulty) (Goldrick-Rab,2016).

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).

Financial stress leads to reduced engagement in academic activities such as

attending classes, completing assignments and participating in extracurricular activities.
A study by (Moroto & Snodgrass, 2015) found that financial stress was associated with
lower rates of senior completion among low income students in the united states.
Financial education programs have been found to be effective in reducing financial
stress and improving academic performance. For instance, study by (Lou et al.,2014)
found that participation in a financial education program was associated with improved
financial behaviors and reduced financial stress among senior high school students in
the united states.
 LOCAL STUDIES

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.

GAP TO BE BRIDGED BY THE STUDY

Student perspective from these qualitative findings produced similar themes,

detailing how work responsibilities can be a barrier to academic achievement. These
findings also point to possible long-term effect of financial stress years after college
with students describing their inability to strengthen their career capital in comparison
to theirs peers. Longitudinal research has shown financial stress can cause students to
drop out of school. However for those who persist. Future Research could explore
explore whether financial stress is a determining factor in students post-graduations
career prospects. As pretend in the following literature. Review, many studies have
looked at the cause and effect of financial stress on the academic performance of
students. However, they only focus on the short term effects and few have examined
the long term effects of financial stress. As said, the research only limits the short term
effects of being financially stress, therefore the researchers will highlight the long term
affect the students in their education. The researchers will make sure to address the
gap by not limiting the situation experience by the students and what possibility face
their burden to improve academic performance.

By providing financial assistance: Financial aid enables students to concentrate

on their studies in order to cover their daily expenses and tuition. Students must give
up some study time in order to pay their bills. Their grades might be more susceptible to
decline because they might be spending more time at work than at their study desk.
Educational institutions give students the opportunity to reach and complete their
higher education. At the same time, providing aid can also be a way to inspire students
to become philanthropic once they become established professionals. Since they know
what it feels like to receive help, particularly in finances, their good experience can
motivate them to give back to the university or possibly fund another student’s
education. It's a cycle of gratitude where both students and education institutions win.
Also one of the most significant benefits of providing scholarships for students is how
it allows them to focus on their academics without worrying about their finances. This
way, they will be much more motivated and they are given the time to pursue extra-curricular
activities that can help them develop their skills and other interests. This also lets
educational institutions experience better retention rates and improved rankings during
assessment periods since students are more engaged in learning. Aren't students a
reflection of the school?
 CHAPTER III
RESEARCH DESIGN AND METHODOLOGY

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 researcher's method of choice was a phenomenological study design.

Phenomenological study design, an approach to qualitative research, focuses on how
individuals in a group share comparable lived experiences. The primary goal of the
technique is to derive a description of the nature of the particular phenomena. In this
research design, interviews are one of the methods most frequently used to acquire
information, and they are also used in this study.

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 researchers used snowball sampling to select the responders. A sample of

bulan national high school food students in grades 11 and 12 was used to gather
data. Three students from each segment, or three portions, have participated in the data
collection procedure. There were nine responders in all.

DATA GATHERING PROCEDURES

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.

DATA ANALYSIS PROCEDURE

The researcher used narrative analysis to examine the data they had collected.
Researchers examine narratives that are communicated in everyday life and within
the framework of the research during this form of analysis. It entails rewriting the
narratives provided by the respondents while taking into account the unique
circumstances of each case and their varied life experiences.