CHAPTER I

THE PROBLEM AND ITS SETTING

This chapter presents the background of the study, statement of the problem, objectives of the
study, hypothesis of the study, significance of the study, scope and limitation of the study, theoretical
and conceptual framework, and definition of key terms.

Introduction

Everyone faces financial difficulties, especially those from low income or

disadvantages 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 student requires them to pay their

education fees, rents, and their 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 common causes of financial problems is improper budgeting, unexpected expenses, as

lack of saving, and budgeting, overspending, and high loan debt is bound to face financial

deficits as he/she does not know how to allocate the financial that he/she has.

Academic performance is one of the top priorities of the students in order to measure

their academic achievement. Rieger (2011) stated that academic achievement is 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 stable job

1
opportunities due to their academic performance. According to Prescott (2016), student

financial stress co tribulates to poor well-being, poor academic performance, and low

retention one of the stressors that can effect various aspects of a persons life is financial

stress. Some students are already struggling financially, which is effecting their academic

performance as a result, student may suffer from mental illnesses such a anxiety or

depression, as well as poor academic performance, poor health and difficulty persevering

toward degree completion.

According to a study conducted Several scientists of (Harvard Princeton, and

Warwick University n.d.) "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 focusing on the impact of

financial stress on students performance.

Therefore financial stress has a significant impact on a students 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 financial needs that may cause a student to

lose focus and develop stress.

Statement of the Problem

This study determines the impact of financial stress to the academic performance of

GAS 11 students in Mindanao State University-Sulu.

Specifically, this study seeks to answer the following research questions:

2
 1. What are the causes of financial stress of GAS 11 students in Mindanao

State University-Sulu?

2. What is the level of academic performance of GAS 11 Students in

Mindanao State University-Sulu?

3. What is the impact of financial stress on the academic performance

of GAS 11 Students in Mindanao State University-Sulu?

4. What can be done to solve the stress of financial among GAS 11 students

in Mindanao State University-Sulu?

5. Is there a significant difference on the impact of financial stress

when they are classified according to family's financial status?

Objectives of the Study

This study was identified the impact of the financial stress to the academic

performance of GAS 11 students in Mindanao State University-Sulu Senior High School.

Specifically, it sought to answer the following objectives:

1. To identify the causes of financial stress of GAS 11 students in Mindanao

State University-Sulu .

2. To identify is the level of academic performance of GAS11 Students in

Mindanao State University-Sulu

3. To determine the impact of financial stress on the academic

performance of GAS 11 students in Mindanao State University-Sulu.

4. To find out what can be done to ease financial stress of financial among

3
 GAS 11 Students in Mindanao State University-Sulu

5. There is significance difference on the impact of financial stress when

they a classified according to family’s financial status Mindanao State

University-Sulu

Hypotheses of the Study

The following hypotheses test in this study:

Ha. There is a significant difference on the impact of financial stress in the

academic performance of he GAS 11 students in Mindanao State University

Sulu

Ho. There is no significant difference on the impact of financial stress in the

academic performance of the GAS 11 students in Mindanao State

university -sulu

Significance of the Study

This research will be of great significance in finding out the different impacts of

being financially stressed that may impact one's academic performance. It will also help to

address the financial burden, low grades, stress, experienced by the student where the

research will begin. As a result, this study is being created to benefit the following:

The Students. The study will benefit the students 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.

4
 The 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 on their academic performance

The Future Researchers. This research would help the student researcher to be

aware and knowledgeable of the different impacts of financial stress affecting their academic

performance. It would help them to be better analyst and it could be a help as a future

reference for more studies in the future.

Scope and Delimitation of the Study

The study focuses on the "The Impacts of Financial Stress on the Academic

Performance Among the GAS 11 Students in Mindanao State University-Sulu Senior High

School." Wherein the study defines the financial stress and its impact on the academic

performance of senior high school students. In addition, the study will also discuss how to

minimize and prevent financial stress to improve academic performance.Thus, respondents

are limited to GAS 11 students Senior High School Department of Mindanao State

University-Sulu S.Y. 2022-2023.

Theoretical Framework

Social cognitive theory asserts on a macro level that learning is a social process

influenced by cognitive, behavioral, and environmental factors (Bandura, 1977). With the

literature illustrating a generally positive relationship between subjective financial knowledge

and lower level of financial stress levels in college students (Jo & Grable, 204), it can be

asserted that the amount of knowledge a student believes he or she has is related to his or her

5
ability to mediate financial stressful situations. Social cognitive theory would label this as

self-efficacy, which is an important tenant of this framework. From this theoretical

perspective, an individual's belief in his or her ability to achieve desired outcomes (e.g., low

stress) is a function of efficacy expectations derived from past success, vicarious experience,

verbal persuasion (i.e., being told that you can be successful at tasks even if you were not

successful in past attempts), and emotional arousal (i.e., having negative emotions decreases

efficacy; Bandura, 1977).

Helping individuals fell that they can improve their financial situation through

providing opportunities for successful money management, observing how to successfully

manage money, having conversations about successful money management, and defusing

emotional arousal are likely to result in reduced financial stress according to a social

cognitive perspective. Feelings of self-efficacy may even be more important than actual

resources, cognitive or developmental stage, and family structure (Pajares, 202). So while it

is important to control for financial resources and financial knowledge in predicting financial

stress of college students, it appears that subjective measures of knowledge and well-being,

as well as a measure of self-efficacy may be equally as important. The conceptual framework

used to model financial stress is based on Bandura's (1977) social cognitive theory.

6
Conceptual Framework

Figure 1: Conceptual Framework

The table above shows the variables which acts as visual summary of the study. It

takes the the independent variable is the financial stress because it can cause and Impact

among the students, that is why an arrow is placed between the two variable and pointed

directly to the dependent variable which is the impact on students academic performance,

because it is the measurement of how financial stress are greatly impact the academic

performance of students, Family Financial Status as the intervening variable includes the

lower, middle, and upper class classified by income. 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.

7
Definition of Key Terms

The following terms are operationally defined in this study:

Impact - this term Refers to weight of the effects of any action taken by the students.

Financial - As used in this study, this term refers to the Student financial aid (or student

financial support, or student aid) is financial support given to students for furthering their

education.

Stress - As used in this study, this term refers to current situations of students who

experience the financial problem.

Academic Performance - This term refers to the general percentage average (GPA) grade of

the respondents from GAS 11 students obtained during the first semester of -the school year

2022-2023.

Family's Financial Status - this term refers to the status of household income of parents of

the students.

GAS 11 - A strand which stands for General, Academic, Strand and they are the main

objective in conducting this research study.

8
 CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the RRL, after the through and in-depth search done by the researchers.

Financial Stress

Financial stress is defined by researchers as the inability to meet one’s economic

responsibilities and is influenced by attitudes, beliefs, and other psychological factors

(Northern, O’Brien, & Goetz, 2010). Financial stress is a known contributor to college

student attrition (Borden et al., 2008), academic performance (Crocker & Luhtanen, 2003),

student retention (Joo, Durband, & Grable, 2008-2009), and general health and well-being of

college students (Northern et al., 2010). Recent research suggests that students with higher

levels of financial stress are more likely to seek professional financial counseling as

compared to students with lower stress levels (Lim, Heckman, Letkiewicz, & Montalto,

2014), which may help to mitigate some of the negative effects of financial stress on

academic achievement and student well-being.

According to Drentea (2000), anxiety about finances is highest among younger

consumers because of their high debt-to income ratio with credit card debt being especially

stressful (Kim, Garman, & Sorhaindo, 2003). A 2006 USA Today/National Endowment for

Financial Education (NEFE) poll of young adults found that of those with debt, 30% worried

about it often, 29% decided to put off or not further their education because of debt, and 22%

took a job that they otherwise would not have because of debt (Lusardi, Mitchell, & Curto,

2010).

Financial stress has been linked to negative consequences across many aspects of life

including health, well-being, academics, and relationships (Northern et al., 2010). Prolonged

9
financial stress over credit issues can have negative effects on physical and mental health

(Drentea & Lavrakas, 2000). Positive financial behaviors such as a reduction in day to-day

expenses were found to be associated with lower stress levels. Lower stress levels will

presumably have a positive effect on one’s health; whereas, high levels of stress can cause or

exacerbate physical illnesses like high blood pressure, migraine headaches, ulcers, ulcerative

colitis, and insomnia (U.S. Department of Health and Human Services, 1991).

Many college students report bearing the cost of college tuition alone, financial stress has

been linked to anxiety and academic difficulty. Jones,Park, and Lefevor(2018) According to a

recent study on financial stress, it is restricted and focuses on the short-term impact of

financial troubles on college students. When it comes to paying school tuition fees, buying

books, study materials, and student debt, the example of financial stress research is frequently

a problem for students. Few research has been conducted to identify and quantify the long-

term impacts of financial stress (Goldrick Rab, 2016). Students from various backgrounds

receive poor mark in school, may fail to owe late tuition payments, and may quit out due to

an inability to finance school.

Financial stress may be defined as the inability to meet one’s financial obligations, but can

also include psychological or emotional effects (Northern et al., 2010). Much of the literature

on financial stress has focused on stress outcomes. Research has documented the following

negative outcomes of financial stress: (a) depression (Andrews & Wilding, 2004; Clark-

Lempers, Lempers, & Netusil, 1990), (b) anxiety (Andrews & Wilding, 2004), (c) poor

academic performance (Andrews & Wilding, 2004; Harding, 2011), (d) poor health (Northern

et al., 2010), and (e) difficulty persisting towards degree completion (Letkiewicz, in press;

Joo, Durband, & Grable, 2008; Robb, Moody, & Abdel-Ghany, 2011). Other research has

focused on coping behavior of financially-stressed students, such as seeking help (Britt et al.,

2011; Lim, Heckman, Letkiewicz, Fox, & Montalto, 2012). Hayhoe, Leach, Turner, Bruin,

10
and Lawrence (2000) examined spending habit differences among college students and

included financial stress as a variable in their model. Financial stress was measured by

summing the number of positive responses to seven financial stressors, such as “not able to

save for an emergency” and “not able to pay utilities.” Hayhoe et al. (2000) found that the

number of good financial behaviors was negatively associated with number of financial

stressors. Very few studies have examined factors related to the likelihood of reporting

financial stress. Brougham, Zail, Mendoza, and Miller (2009) examined different sources of

stress, including academics, financial, family, social, and daily hassles, but the primary focus

of their study was to identify coping behavior among students. They found that college

women were more likely to report financial stress than college men (Brougham et al., 2009).

Anticipated debt has also been shown to be a strong predictor of financial stress among

medical students (Morra, Regehr, & Ginsburg, 2008). Archuleta, Dale, and Spann (2013)

found that among college students, higher levels of financial satisfaction were significantly

and negatively related to financial anxiety. As discussed by Northern et al. (2010), some

researchers have used financial data exclusively to measure financial stress. While being

unable to pay bills and other financial difficulties may indeed produce stress, there are

important psychological aspects of stress that may be missed when using financial data alone

(Northern et al., 2010). Being unable to pay bills on time may plausibly be a stressful event

for one student, but not for another student. Stress is certainly a complex construct, but the

differences in measurement of financial stress are likely a result of a lack of theory-based

research. Many of the studies mentioned above do not include an explanation of the

theoretical framework used to investigate issues related to financial stress. Two important

concepts have been linked to stress in the college student literature: self-efficacy and

optimism. Perceived self-efficacy can be described as a person’s perceived ability to handle

different situations (Bandura, 1977). Bandura (1982) describes this as a complex process in

11
which “component cognitive, social, and behavioral skills must be organized into integrated

courses of action…(p. 122).” Perceived self-efficacy is distinct from concepts such as

mastery and locus of control. While self-efficacy is a perception, mastery is about behavior

experienced and is a source of self-efficacy (Bandura, 1977; 1982). Locus of control is about

orientation of control (Rotter, 1966). A person who has a high level of perceived self-efficacy

is confident that he or she can be effective in bringing bout the desired results for a given

situation. A Research has shown that self-efficacy is associated with a reduced likelihood of

stress among college students (Zajacova, Lynch, & Espenshade, 2005) and is positively

related to academic performance (Chemers, Hu, & Garcia, 2001; Zajacova et al., 2005).

Optimism refers to positive expectations about future outcomes (Scheier & Carver, 1987).

Optimism has also been found to be an important construct among college student academic

outcomes(Chemers et al., 2001) and health outcomes (Scheier & Carver, 1987). Since self-

efficacy and optimism have been used to explore other student wellness outcomes, these

concepts may be meaningful when exploring financial wellness, and specifically financial

stress, among students.

Financial Behaviors

Shim et al. (2010) defined healthy or positive financial behavior indicators as the set

of desirable behaviors that help young adults achieve the financial, economic, and

interpersonal goals that are important to them. Behaviors such as awareness of debt owed,

checking for the lowest interest rate before borrowing, saving, budgeting, and keeping

financial goals have been shown to be positively related to lower reported levels of financial

stress and increased financial well-being (Gutter, Garrison, & Copur, 2010; Xiao, Sorhaindo,

& Garman, 2006). College students who reported practicing positive financial behaviors also

reported being more satisfied with their personal financial situation (Xiao et al., 2009). There

is also some evidence to suggest that one’s perceived mastery and/or sense of control is

12
linked to better financial behaviors (Perry & Morris, 2005). College students who believe that

outside forces determine their future outcomes tend to exhibit worse financial behaviors, such

as difficulty paying monthly obligations (Britt, Cumbie, & Bell, 2013).

Financial Attitudes

Young adults learn attitudes and behavior, in part, through the observation and

imitation of role models they come in contact with, especially their parents (Bandura, 1977).

Financial habits that are formed during the transition to adulthood are likely to persist

throughout adulthood. College students with stronger intentions to perform positive behaviors

were more pleased with their financial situation and less likely to incur debt (Shim, Barber,

Card, Xiao, & Serido, 2010). According to Xiao, Tang, and Shim (2009), positive financial

behaviors were associated with financial satisfaction, which led to positive academic

performance, which then led to college students reporting they were more satisfied with life.

Lowering financial anxiety and increasing financial satisfaction are key ingredients to

improved academic performance and retention.

Family Financial Status

Financial stress may have a direct impact on a person's cognitive abilities, according

to new research led by Harvard, Princeton, and Warwick University experts. (Medina, 2013).

The latest research, like those conducted by Inceptia, 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 student financing are particularly

important. Students face new financial duties that they have never had before, ranging from

day-to-day expenses to tuition costs and loan payments. Financial pressures had a substantial

influence on respondents' academic progress or performance, and they were much more

likely to obtain federal student loans, private student loans,and personal loans from friends or

13
family members to assist pay for their education. Walseman, Ailshire, & Gee (2016) found

that students from low-income homes are worse prepared for college. A 30% college

enrolment gap and a 16% graduate gap have been identified. Low-income pupils and students

from higher-income homes have been compared (Knaggs et al., 2015). This discrepancy in

educational attainment is important when analyzing college students, it is crucial to keep in

mind that those from lower socioeconomic backgrounds typically lack access to resources

that are necessary for university achievement. The educational achievement of students'

parents is frequently connected to their social situation (Asari, 2018).

Academic Performance

Having academic performance also influences some factors like attendance of

lectures, early revision, prioritization of learning needs, learning in small groups mind and

time management, and family support. It also measures the student's achievement across

various academic subjects; it also measures the student's intellectual level, personality,

motivation, skill, interest, study habits, self-esteem, or the teacher-student relationship. Used

interchangeably with "students' access" it encompasses academic achievement, attainment of

learning objectives, acquisition of desired skills and competencies, satisfaction, persistence,

and post-college performance (Kuh et al., 2006; York et al., 2015). 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 dropout rates, 20% is a vast number. Our

Department of Education is looking into ways to improve our academic system in order to

reduce dropout 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 student's performance

and future.

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 CHAPTER III

RESEARCH METHODOLOGY

This chapter presents the research design, locale of the study, research instruments,

validation of research instrument, research sampling, research respondents, statistical treatment and

the data gathering procedure.

Research Design

This study is quantitative research. Using descriptive research design will focus on

observing and describing the financial stress of senior high school students. Descriptive

survey method was used to answer the inquiries of the Financial stress : its Impact to the

academic performance of GAS 11 students in Mindanao State University-Sulu.

Research Locale

The study will be conducted at MSU - Sulu Senior High School Department. This

department had only two strands which are the General, Academic, Strand, (GAS) and

Sciences, Technology, Engineering, and Mathematics, (STEM). The Mindanao State

University – Sulu is the only University in Sulu situated at 11.5 hectares in Capitol Hills,

Jolo, Sulu.

Research Instruments - SITE THE ADAPTED QUESTIONNAIRe

A questionnaire adapted by the researchers from thehhehehheeh will be used to

gather data for this study. The researchers will ask a series of questions related to the aims of

15
the study, which will be answered by respondents. The survey consists of 15 questions in the

form of several types of questions, namely Contingency Questions, Multiple-Response

Questions, and Likert Scale Questions to identify their views needed for the research. For the

Contingency, it is answerable with Yes or No and why, For the Multi-response the

researchers provided an answer that is most to be one's point of view. Lastly for Likert Scale

it ranges from (5) Strongly agree to (1) Strongly Disagree.

Research Sampling

The researchers were used the stratified random sampling, According to Investopedia

stratified random Sampling method involves the division of a population into smaller sub-

groups and the researchers randomly selected 5 students per section.

Respondents of the Study

This study used stratified sampling in identifying the participants of this

research study. Stratified sampling is a method of sampling from a population which can be

partitioned into subpopulations.

5 respondents are derived from 543 GAS 11 students of Mindanao State University

Senior High School Department.

Validation of the Research Instrument

The first draft of the questionnaire was submitted to the researchers’ adviser for

correction and suggestion. There was a little revision in some parts by adding more

statements.

16
Data Gathering Procedure

The researchers were conducted a survey questionnaire, and prepared questions

which aims and tend to gather data. And the researchers were done a one-time in gathering

the data and the secondary data was collected from the internet and review of the related

literature and sources.

Statistical Treatment of Data

In this research, Descriptive analysis was used to analyze the data collected from

the respondents. In order to identify repeating patterns and certain errors that will allow the

researchers to attain one conclusion. In the measures of central tendency, we have used the

mean to come in one answer by using the average of the group of answers. Wherein the

measurement of variability, we have used the standard deviation to identify Significant

differences in the distribution of the data. The researchers have also utilized the percentage

to interpret the data.

17
 APPENDIX A

QUESTIONNAIRE

Survey Questionnaires

We, the researchers from Grade 12 - GAS Students are conducting a research
study entitled "The Impact of financial stress on the academic performance of GAS 11
students of Mindanao State University-Sulu"

In this regard, the researchers are requesting for your sincere and positive
response to have answer for this study.

________________________________________________________________________

Name:_____________________________________ Section:________________

Part 1: Personal information / conformed

Students status: _________DepEd Voucher Recipient

_________Scholar Students

_________Non-Scholar

Instructions: check your parents household income range below.

Household Income Range:

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Part I. This section attempts to determine your views of different aspects of the impacts
of financial stress impact academic performance.

Instruction: Answer the questions by Circling a letter depending on your views and opinion.

Objective l: To identify the causes of financial stress to students

1. What experiences made you financially stressed?

a. having not enough money to participate in extracurricular

b. does not pay tuition fees on time

c. Regularly overspends

d. Student loan debt

e. personal finances

2. How did the situation impact you? (Refer to you experienced situations in the

lst question).

a. It worsens my physical health/body

b. It increases the chances of me dropping out of school

c. It worsens my mental health

d. I got lower grades because of it

e. It reduced my productivity and the quantity and quality of my school works/tasks

3. Where do you spend most of your personal allowance?

a. Impulse buying

19
 b. School Needs (Matriculation, supplies, etc.)

c. Shopping

d. Personal and family debt

e. Food and beverages

f. Others

4. What is the major cause of your financial problem?

a. Low Rate of Income

b. Poor budgeting

c. Lack of stable income

5. What cause low income in the family's financial expenses?

a. Education cost

b. Extended family household

c. Utility expenses

d. Poor financial management

e. Spending on non-important thin

20
 Objectives 3. To find out what can be done to ease financial stress to improve academic
performance.

STATEMENT OF THE Strongly Strongly

Disagree Neutral Agree
PROBLEM Disagree disagree
I feel unmotivated to study
and tends to lose my focus
while studying
I cannot concentrate on my
studies because of financial
hardship
There is a possibility that i will
fail in terms of financial status
I’m satisfied with my academic
performance in terms of
financial status
I am unable to follow the
lessons because i wasn’t able
to purchase the required
textbook that are needed for
the class.
I cannot meet my my
expections due to financial
stress
I usually intended not to
submit my activities due to
financial stress
I do not participate in activities
that are require financial
contributions because of the
lack of financial support.
I forgot to do my activities that
and requirements because of
thinking about how to provide
money for my school fees
(tuition, fees subject,
requirements and activities).
I do not have energy to
intreract with my classmate
during group activities

21
Instruction: encircle the letter for multiple choice and the question and answer you have to fill
in line below if yes or no by depending your own understanding

Objective 3: To determine the impact of financial stress on the academic performance

Part 2: This section attempts to determine your views of different aspect of the impact of
financial stress impact academic performance.

Instruction: Put a check mark ( / ) and rate strongly agree, agree, Neutral, Disagree, and
Strongly disagree based on what you actually to given on the statement below

1. Considering you've understood the concept of financial management; how can

you best help your family ease financial stress as a student?

a. Determine my needs vs. wants

b. Lessen unnecessary expenses

c. Choose to buy products that are affordable and useful enough without

minding the aesthetic

d. Others__________

2. Having the knowledge to budget money, As a student, how can you help your

parents to avoid financial burdens in your family?

a. Rise your Academic performance (GPA) to get a scholarship

b. Consider becoming a working student

c. Save and the extra money will be set aside for the time needed

d. Others, specify_______________

3. Does having a scholarship help a student maintain good grades qnd improve

your academic performance?

a. If yes, why?________________________________________________

b. If no, why?________________________________________________

22
4. What can yo consider doing to improve your academic performance?

a. Seek help professionally in terms of your financial management

b. Be a working student to lesson the burden financially

c. Having alternaives with cost for your needs in school

d. Others_______________

5. Does budgeting your expenses monthly will help your financial burden?

a. If yes, why?_______________________________________________

b. If no, why?_____________________________________________

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