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SAINT LOUIS UNIVERSITY

LABORATORY HIGH SCHOOL – SENIOR HIGH SCHOOL
C.M. RECTO STREET, ST. JOSEPH VILLAGE, BAGUIO CITY
A.Y 2023-2024

"EXPLORING THE INFLUENCE OF GRANDPARENTS ON FINANCIAL MANAGEMENT OF

GRADE 11 STEM STUDENTS: A QUANTITATIVE ANALYSIS"

ALIM, Joe Vince D.; BORJA, Jiana Marisela B.; CORPUS, Loraine Ann P.; DIAZ, Arman Grant
C.; LACANARIA, Ralph Jared R.; MACARIO, Joshua Victor Ivan Miguel D.; TACAY, Irish
Mae F.; YUMUL, Justine Ariel A.

INTRODUCTION

In the United States, slightly more than 7 million grandparents lived with at least one
grandchild under age 18 in the same household during 2020. One in 10 American children (a
total of 7.5 million children) was living in a household with at least one grandparent (Saxena &
Brotherson, 2022).

Locally, there are approximately nine million senior citizens in the country, according to
the Philippine Statistics Authority (2020). Of that number, 3.3 million are still working, while
5.7 million have committed themselves to non-gainful occupations such as taking care of
grandchildren called ‘apos’ in the local dialect, according to the National Commission of Senior
Citizens (NCSC) as cited from a PSA report. Compared to the US statistics with a much higher
total population, the number of senior citizen in the Philippines is greater reflecting the common
practice of having a nuclear family where grandparents have strong influence on the lives of their
children and grandchildren.

The changing landscape in the society also resulted to changes in the family
arrangements. Cohabitation means the sharing of economic resources between multiple
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generations, which benefits not only the elderly, but also their children and grandchildren at the
same time Moreover, due to the reduced spatial distance, co-resident grandparents are also more
likely to provide direct financial assistance and investment for their children’s families and
grandchildren (Chen & Chen, 2016).

In the Philippine context, custodial grandparenting is yet another dynamic shift in the
modern family. A diversity of social, economic and protective reasons why grandparents care for
their grandchildren gives additional roles and responsibilities to grandparenthood (Laguilles-
Villafuerte & De Guzman, 2020).

Supporting grandchildren with financial assistance is not uncommon among

grandparents. In US research, nearly 94% of grandparents provide some monetary help each
year, spending an average of $2,562 annually on their grandchildren (AARP Research, 2019).
The same practice is evident among Filipino grandparents as supported by Villegas (2017) who
reported that grandparents are valuable sources of financial, emotional and spiritual support.
Such practices results to some influences on the grandchildren.

Giving money to grandchildren may not only give joy to the grandparents but it can also
be a valuable opportunity for interactive learning experience by setting a good financial example,
teaching healthy financial practices and setting financial goals are important elements of
extending financial help to grandchildren to give them a better understanding of their own
finances (David & Nelson-Kakulla, 2019).

In current discussions of the multigenerational mobility mechanisms, the direct

transmission of grandparents’ economic resources to grandchildren or the intergenerational
transmission of resources via interactions with grandparents are the two most dominant
mechanisms (Chen & Chen, 2016).
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Many research studies have focused on the impact of grandparents on grandchildren’s

mental and behavioral health, the socioemotional problems of grandchildren, and the challenges
of grandparents raising their grandchildren. However, the impact of grandparents on their
grandchildren’s financial management, particularly their grade 11 student grandchildren under
the Science, Technology, Engineering, and Mathematics (STEM) strand, has not yet been
studied, thus it is still unclear how grandparents have influenced their grandchildren’s financial
management. In this study, the researchers will investigate the impact of grandparents on the
financial management of their grandchildren in STEM (grade 11).

Zhang and Wu (2021) examine the influence of three-generation cohabitation on

adolescent academic performance in China, utilizing national survey sample data of junior high
school students. They find that three-generation cohabitation is more common in families with
lower socioeconomic status (SES), working mothers, or single-parent households, positively
affecting adolescents' academic performance, particularly benefiting those from lower-SES or
single-parent families. Furthermore, the effect of living with grandparents is moderated by
family SES and structure, with households where grandparents cohabit investing more in social
capital for children. This research underscores the enduring significance of family kinship
networks in social stratification and mobility, urging scholars to pay more attention to the role of
extended families in shaping individual life chances within the context of modern society.

Moreover, the quality of grandparents' relationships with their custodial grandchildren

affects the children's socioemotional and behavioural well-being. The findings show that closer
relationships between grandparents and grandchildren are associated with a lower risk of
emotional symptoms, conduct problems, peer issues, and abnormal prosocial behaviours in the
grandchildren. Higher levels of conflict in these relationships, on the other hand, have been
linked to an increased risk of emotional symptoms, conduct problems, peer issues, and
hyperactivity in grandchildren. The findings suggest that interventions aimed at improving
relational closeness and reducing conflict between grandparents and grandchildren have the
potential to alleviate socioemotional and behavioural problems among custodial grandchildren,
providing important insights for social workers (Xu & Harrison, 2023)
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Lo and Lindsay (2022) contribute to the understanding of informal childcare and family
dynamics in East Asian families, particularly in Hong Kong, revealing tensions and conflicts
among generations in childcare provision and emphasizing the importance of grandparent
childcare as an option while cautioning against its sole reliance as a substitute for professional
childcare services. Both studies highlight the intricate interplay of family dynamics and
socioeconomic factors in shaping individual outcomes, urging further exploration of these micro-
mechanisms within the broader context of social stratification and mobility.

According to the study of Kodye et al. (2024), grandparents raising their grandchildren in
rural Thailand, emphasizing the theme of feeling "held in bondage" as they assume caregiving
responsibilities. Despite challenges such as a lack of parenting skills, support, and health issues,
grandparents express a strong bond with their grandchildren. The study demonstrates how they
receive support from healthcare providers, teachers, and the community, providing insights into
caring for young children. Furthermore, the study reveals how grandparents deal with difficulties
by relying on beliefs such as Buddhism.

On the other hand, the study of Ruiz et al. (2024) investigates the role of shared leisure
activities between grandchildren and grandparents in northern Spain as a means of
intergenerational learning. Board games, artistic pursuits, gardening, and reading emerge as
important activities in which grandparents share knowledge and experiences with their
grandchildren, thereby improving family well-being. Grandparents' educational levels generally
have no significant impact on learning outcomes for grandchildren, with the exception of
gardening activities, where primary-educated grandparents are perceived as better teachers. This
emphasizes the importance of recognizing grandparents' contributions beyond caregiving roles,
which may reduce feelings of stress and inadequacy.

Furthermore, grandmothers who take on the role of raising the children of working
parents prioritize imparting societal and familial values to the children. They tend to favour
democratic and child-centered approaches to managing behaviour, rather than authoritarian
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methods. However, it's recognized that grandmothers may have educational needs, particularly
related to understanding child development issues, in order to fulfil their caregiving roles
effectively (Durmuş & Aslı Tunca, 2022).

Grandparents caring for their grandchildren have increased globally over the past two
decades (Glaser et al., 2018; Meyer & Kandic, 2017; Small et al., 2019; Zimmer & Treleaven,
2020). Globally, the number of grandparents taking on the role of parent and raising their
grandchildren is becoming staggering. In South Africa, nearly 4 million children in 2018 were
under grandparental care (Hall et al., 2018); in the United Kingdom, about 1% of all children are
raised by grandparents (Buchanan & Rotkirch, 2018).

In the country of Eswatini, about 72% of the people there live below the nationally
defined poverty level (“Kingdom of Swaziland”, 2019), and this has, therefore, forced a number
of parents, especially in the rural areas, to leave their homes in search of work where job
opportunities exist (Dlamini 2020). Unfortunately, most of them never return but rather abandon
their children, leaving the responsibility of raising them, by providing for their physical and
financial needs to the grandparents (Nadorff & Patrick 2018). Furthermore, after analyzing these
studies, most of these imply that grandparents act as the sole caregiver for a child in the absence
of a parent (Xu et al., 2022).

In dealing with the gap, the researchers will use the Family Systems Theory by Murray
Bowen and Family Financial Socialization Theory (FFST) by Gudmunson and Danes (2011).
Family Systems Theory is a theory of human behavior that views the family as an emotional unit
and uses systems thinking to describe the unit’s complex interactions (“Introduction to the Eight
Concepts”, 2023). It is relevant in understanding how grandparents, as integral members of the
family system, may influence the financial management skills of grade 11 STEM students. On
the other hand, FFST propose that family socialization processes are directly associated with
financial attitudes, knowledge, and capabilities (LeBaron & Kelley, 2021). It can be used to
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understand how grandparents contribute to the financial socialization of grade 11 STEM

students, shaping their financial beliefs and practices.

The primary focus of this study is to investigate the impact of grandparents on the
financial management practices of Grade 11 STEM students enrolled at Saint Louis Basic
Education Senior High School. The research aims to specifically examine the influence exerted
by grandparents in shaping the financial behaviors and decisions of these students. It is essential
to note that the study deliberately excludes certain variables, such as the influence of the
grandparents-grandchildren relationship on the emotional well-being of the grandchildren. The
following research questions will guide the study:

1. What specific roles do grandparents play in shaping the financial decision-making of Grade
11 STEM students?

2. How do grandparents contribute to the financial management practices of Grade 11 STEM

students?

3. Are there any notable differences in the financial management practices of Grade 11 STEM
students based on the level of involvement and influence of their grandparents?

This study will be conducted to explore the influence of grandparents on the financial
management practices of Grade 11 STEM students.

This research is made with the aim of providing information and knowledge regarding
the role of grandparents in their grandchildren's financial decisions as their primary caregivers.
The results can aid in the development of well-informed family and educational policies. Policies
that promote responsible financial management and good financial habits within families may be
developed with an understanding of how grandparents impact financial decisions. The
advantages of financial literacy are extensive, having a well-planned financial situation boosts
one's confidence and wins the respect of friends and family. Others who are capable of making
wise financial judgments steer clear of the typical traps faced by others who are not. Poor
choices typically add up to a financial hole from which many people never fully recover. A
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person's entire life is negatively impacted by lacking financial knowledge. Grandchildren can
benefit from their grandparents' experiences, wisdom, and insights as they negotiate the
challenges of life. Grandparents provide continuity and stability in a child's life, and their
expertise is vital when it comes to relationships, job decisions, and personal development. They
serve as a link between the past, present, and future, bridging generations. Grandparents provide
a unique outlook on life and can introduce their grand kids to a variety of points of view. This
feeling of continuity aids youngsters in understanding their role in the family and society. A
child's perceptions can be expanded and open-mindedness fostered by this exposure to different
viewpoints. The completion of the study will also provide opportunities for future study to hone
and broaden the understanding of grandparents' roles as key guardians in their grandchildren's
financial decisions.
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