A Degree Paper Presented to the Faculty of the Senior High School of STI College Novaliches

The Impact of Pandemic Affecting the Financial Stability of a Family

Papa, John Christian C.

Pugao, Shania Mae L.
Sajuela, Victoria
Samson, Mariel Clariz M.
Sendrijas. Cherry Ann
Tobias, Oliver Jr.
Tolentino, Princess
Tolentino, Robyannalyn
Torres, John Arik C.
Villamor, Ma. Margaret N.

STI COLLEGE NOVALICHES

November 2021
 CHAPTER 1
INTRODUCTION
This chapter presents the underlying background and rationale of the study. A study about The
Impact of Pandemic Affecting the Financial Stability of a Family. People have their own ways to
earn money in any possible ways. It’s really hard to earn money ever since and now it’s harder.
This will also include the dependent and independent variables used in the study as well as the
significance and limitations.

Background of the Study

Financial stability refers to a financial system that allows ordinary people and corporations to
borrow money to buy a house or a car, or to save for retirement or education. Businesses, too,
need to borrow money to develop, create factories, recruit new employees, and pay their bills.A
pandemic is a disease outbreak that affects multiple countries or continents at the same time. It
has a larger impact and kills more people than an epidemic. When it became obvious that the
illness was severe and spreading quickly across a large area, the World Health Organization
(WHO) proclaimed COVID-19 a pandemic.
The disease mitigation measures that have been imposed in many nations have resulted in many
nations have resulted in significant income reductions, increased unemployment and disruptions
in the transportation, service, and industrial industries. Most government throughout the world
appear to have misjudged the risks of rapid COVID-19 spread and have been primarily reactive
in the crisis response. Because disease outbreaks are unlikely to go away anytime soon,
aggressive international action is necessary to preserve lives while simultaneously safeguarding
economic growth.
The Philippines’ economy grew at one of the quickest rates in the world in 2019. Towards the
conclusion of the Ferdinand Marcos regime in the mid-1980s, it finally shed its “sick man of
Asia” reputation gained during the economic collapse. The country’s economic recovery began
in the decade before the pandemic, after decades of arduous reform-not to mention repaying
debts accrue during the dictatorship. The Philippine was hailed as the next Asian tiger economy,
with an average yearly growth rate above 6% between 2010 and 219 (based on statistics from
Philippine Statistic Authority on GDP growth rates at constant 2018 prices).
The pandemic brought the Philippines’ economy to its lowest point since World War II, with
GDP falling by 9.5 percent in 2020. It’s the worst loss since records began in 1947, and the first-
time economy has dropped since 1998, when it shrank by 0.5%. GDP went as low as -16.9% in
the second quarter of 2020, when the tightest lockdown (Enhanced Community Quarantine) was
applied.
88% of firms reported a loss in sales between April and July 2020, and 67% reported a drop in
sales between July and November 2020. Limited operations (58%) and customers’ incapacity to
visit brick-and-mortar enterprises were the leading causes of decreasing sales (38%).
Many businesses claimed to be cash-strapped and behind on payments. For more than a month,
66% of firms lacked sufficient cash to fulfill all expenditures and liabilities, including workers,
suppliers, taxes, and loan repayment. Business was in default in 48% of cases.
Two-thirds of firms have adapted or increased their used of social media, specialized software,
and digital platforms for various business tasks, with these companies reporting that digital
solutions accounted for 10% of their sales. Last year, government enacted two financial stimulus
bills that gave targeted assistance to workers in key industries. Despite cautious optimism that
sales and jobs will recover over the next three months, many businesses expect their financial
situation to worsen.
The COVID-19 pandemic has a very huge impact in our life, many lives have been affected
since then, and the most affected factor is the financial stabilities of the families. From schools,
malls, night clubs and other establishments either closed for good or temporarily. As for that,
many employees lose their job that affected their financial stability in life.
The yearly unemployment rate in 2020 was 10.3%, or 4.5 million unemployed Filipinos,
according to the Philippine Statistics Authority. This is the highest annual jobless rate ever
recorded, spanning back to April 2005. Unfortunately, the problem appears to be getting worse:
the Philippine Statistics Authority estimates that unemployed people in nearly 4 million Filipinos
were unemployed in January 2021. This is higher than the 3.8 million in October 2020 and the
2.4 million unemployed people in January 2020.

Research Objectives

This study aims to determine and answer the following:

1. On a scale of 1 to 3, how financially stable are your family?

1 2 3 Others, please specify
 
2. How many of you in the family are employed?

3. Are you one of t people who got fired on your job because of the pandemic?

4. Why does the Pandemic affect your Financial Stability?

5. Have you ever thought of a way to earn money during the pandemic? If so, what is it?
 Theoretical Framework
Financial stability, according to the majority of economists, is defined as the absence of system-
wide instances in which the financial system fails to function (crises). It's also about the financial
systems' ability to withstand stress. In a stable system, shocks are absorbed mostly by self-
corrective processes, preventing bad events from disrupting the actual economy or other
financial systems. Financial stability. (n.d.). The World Bank. Retrieved October 16, 2021, from
https://www.worldbank.org/en/publication/gfdr/gfdr-2016/background/financial-stability.

Financial stability refers to a situation in which the financial system, i.e., the primary financial
markets and the financial institutional system, is resilient to economic shocks and capable of
performing its core functions: financial intermediation, risk management, and payment
arrangement. Defining financial stability. (n.d.). Magyar Nemzeti Bank. Retrieved October 16,
2021,fromhttps://www.mnb.hu/en/financial-stability/defining-financialstability.
Being financially secure is an important aspect of having a secure family life for you and your
child. Despite the fact that money isn't everything, financial stress can have a negative impact on
your health, family life, and your child's possibilities. Financial concerns are the second leading
cause of divorce in the United States and the leading source of stress in partnerships. Financial
difficulties are often linked to mental health problems. Debtors are three times as likely than non-
debtors to suffer from mental health issues. Anxiety and sadness are two of the most prevalent
mental health problems that people who are in debt face. However, most parents will agree that
their child's or children's well-being is the most essential consideration in their lives. The most
important thing is to raise children to be loving, compassionate, and strong members of society,
but ensuring that kids have every opportunity in life can be influenced by your financial security.
It's critical to be in a situation where you can support your child if he or she requires expensive
therapy, medication, or equipment. Clark, MD, S. M. (2020, September 7). Becoming
financially stable as a new family. Https://Www.Babiesafter35.Com/Articles/Becoming-
Financially-Stable-as-a-New-Family. Retrieved October 16, 2021, from
https://www.babiesafter35.com/articles/becoming-financially-stable-as-a-new-family.
In our study the best definition of Financial Stability that we could apply is the last one from the
website Babies After 35. In the article they provided 12 tips on how can a family be financial
stable. Those tips includes creating a financial plan, following a budget, allocating time to work
on finances, analyzing lifestyle and spending habits, having an emergency funds, plans to clear
debts, being a good communicator, ignoring status and focusing on stability, considering
investments, hiring a professional financial advisor, creating more sustainable household, and
getting a life insurance policy. These tips is important for this study because it will eventually
help us determine on how could we be more financially stable.
 CREATE A ALLOCATE ANALYZE
FINANCIAL
FOLLOW LIFESTYLE AND HAVING AN
TIME TO WORK
PLAN BUDGET ON FINANCES
SPENDING
HABITS
EMERGENCY
FUND

PLAN TO
CLEAR FINANCIAL STABILITY GET A LIFE
DEBTS INSURANCE
POLICY

BE GOOD
IGNORE CONSIDER HIRING A SUSTAINABLE
COMMUNI-
STATUS AND INVESTING PROFESSION- HOUSEHOLD
CATORS FOCUS ON AL FINANCIAL
STABILITY ADVISOR

Statement of the Hypothesis

Null hypothesis (Ho) pandemic has no significant impact in the financial stability of a family.

Alternative hypothesis (H1) pandemic has a significant impact in the financial stability of a
family.

Statement of the Problem

Generally, this study will determine the Impact of Pandemic Affecting the Financial Stability of
a Family.

Specifically, it aimed to answer the following:

1. How does the pandemic affected the flow of money in your family?
2. What problem/s about financial did you and your family encountered in the time of
pandemic?
 3. How did the employed family members of the family overcome problems on their job in
this time of pandemic?

Significance of the Study

This study will conduct research that will help us to know what’s happening in every member of
the family and to measure its effectiveness through the behaviors of the family on there special
needs.

Benefiting the study are the Following Sectors as follows:

For the Students this study can support them to express there feelings and experience dusring this
pandemic, this also help them to have an idea on how can they avoid or reduce the feelings that
affect them during this time.

As for the Parents this is study will give them awareness and guide on how they can avoid
the financial impact to there family during this pandemic. And this study can give them some
ideas so that they can survive on there financials.

As for the Future Researchers this may serve as a reference material for those who would
like to conduct further study on similar topics. This research will assist and accommodate them
in making the most of their newfound knowledge.

Overall, this study will support the students, parents and future researchers to have a guide on
how financial stability affect each family especially this pandemic, This study also determine the
impact of the financial stability to every family. This study also can provide some learning for
the future researchers on how they can conduct there research that is similar to this.

Scope and Delimitation

The main focus of this study is to determine the impact of pandemic affecting the financial
stability of a family and how will they cope up with it. The respondents were composed of bread
winner of a family, both male and female as they are qualified for the standardize questionnaire
that will be used by the researches. It delimits that the study may not be generalized to other,
such as person who does not have enough money to manage.