EFFECTS OF FINANCIAL PROBLEM

TO THE SCHOLASTIC
PERFORMANCE OF GRADE 10-
PLETSA

Pacle, Icy Grace

De Lara, Faith Cloie
Sabuero, James Ryan
Baitus, Axle Gheldy
Javier, Jullan
Gamboa, MJ

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CHAPTER 1: RESEARCH PROBLEM AND ITS
BACKGROUND

INTRODUCTION

Money is important in the world today, However the problem

is what some people have lots of it and most people have less

than enough. Specially most of the students are facing financial

crisis because they do not have the knowledge on how to manage

their money. When students facing financial crisis, they would be

facing a lot of stress and could not concentrate on the lecturer

which will bring impact to their scholastic performance such as

their grades and result that will affect their future when finding jobs.

(EduBirdie ™Writing platform) However, students have been

facing financial problems lately and this problem had become a

major problem for students. Financial problem faced by students

are known as they do not have enough money for their daily

expenses, where money worries is causing them to stress.

Financial position will affect their commitment in learning which will

affect their academic performance. Moreover, due to pandemic it

had made most of the country facing lack of jobs and increases the

cases of students facing financial problem.

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STATEMENT OF THE PROBLEM

The researcher’s aims to answer the factors that related on the

financial distress to the academic performance of Grade 10- Pletsa
learners.

1.) HOW MANY STUDENTS IN GRADE 10- PLETSA

EXPERIENCE FINANCIAL PROBLEM?

2.) WHY DO THEY EXPERIENCE FINANCIAL PROBLEM?

3.) HOW DOES IT AFFECT TO SCHOLASTIC

PERFORMANCEOF GRADE 10- PLETSA LEARNERS?

A. Attendance
B. Classroom Expenses
C. School Supplies

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 DEFINITION OF TERMS

Financial problems can happen due to reasons within and

outside your control. Financial stress can occur in many situations

and under various circumstances- what causes one-person

financial stress include losing your job or being retrenched, long

term unemployment, and can affect your academic performance

as well as it can cause stress.

Experiencing financial stress is not unlikely among Filipino

students, and government statistics suggest that a significant

proportion of the school-age population experience financial

difficulties. Starting at the basic education level, almost 20% of

Filipino children who dropped out of school mor quitting mentioned

insufficient financial resources as the main reason for quitting

school (Philippine Statistics Authority, 2015). In the current study,

financial stress would be negatively related to subjective well-being

or specifically, life satisfactions of Filipino students. There are

currently no published studies that show this relationship with a

Filipino sample. One recent study did not actually measure

financial stress, but showed that sense of poverty was associated

with the experience of psychological distress among students

(Reyes & Yujuico,2014.

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SIGNIFICANCE OF THE STUDY

The findings of this study will give benefits to learners of

Grade10- Pletsa learners, parents, students, school administration,

other researchers,by giving advices to them on how to manage

their money wisely so they wouldn’t face financial problem or at

least, It can help them to lessen their financial problem. Since

financial problem would cause them stress.

When a learner is stressed, they wouldn’t pay attention on

their study and that will affect their grades. Moreover, they will

know how to solve those financial problem they are facing with the

solution at the end. (TPR Education, 2018)

In Addition, conducting this research would also help

students of Grade10- Pletsa to realize how hard financial problem

can be. What can financial problem affect to one another including

Social, Emotional, Family, Physically and specially the academic

performance.

Although these connections are difficult, having them is very

important to get everyone on the same level of financial

knowledge. If you don’t know enough about money, poor decisions

are easy to make. A missed opportunity, a loss of savings, or

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investment gone wrong can all happen without financial education

and it’s one of the big causes of financial problems. (Harley, 2022)

PURPOSE OF THE STUDY

This research will help the students of Grade10- Pletsa

sees the struggle of our other classmates we this can help them in

a way by conducting this research and also learn several ways

how to cope or how to think if were experiencing financial problem

ourselves.

Financial problem can result to financial stress, if your

financial stress is severe, you will experience negative effects on

your mental health and potentially even your physical health.

Financial stress can lead to anxiety, depression, behavioral

changes like withdrawing from social activities, or physical

symptoms like headaches or stomachaches (Elizabeth Scott,

2020)

The purpose of this research, is to identify the factor and

help Grade 10-Pletsa learners how to cope with the stress and in

able to rethink the things they spend their money on, and also to

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let them know what can happen and the results if they don’t take

the negative effects of a financial problem can take.

CHAPTER ll: REVIEW OF RELATED LITERATURE AND

STUDIES

This chapter presents the related literature and studies

which covers the study of the impact of financial problems to the

motivation of the respondents where part of several literature

materials will be shown to fully understand the research to be

done.

RELATED LITERATURE

On Financial Problem

Foreign

According to Lifeline Australia (2016), financial problem is

a situation where money worries are causing individual stresses.

Many people are facing hard financial times and the impact on

mental health, academic performance or motivation can be

significant. This includes worrying a lot of feeling anxious over

money, arguing with loved ones, headaches, feeling guilty

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spending money on non-essentials, anxiety, stress and even

falling grades in school.

A typical financial problem of students is they don’t take the

time to asses before they reach an excess in credit card debit or

other debts. Many students who are out on their own for the first

time may get caught up in a cycle of overspending that comes with

eating out, buying new clothes or partying. This lifestyle can

become very expensive quickly, and as a result, it can increase

overall debt. To avoid unnecessary expenses, follow a budget in

which you pay your necessary expenses first and leave yourself a

specific amount of your income for entertainment. Then stick to

that budget. Try cost-saving ideas such as watching movies at

home, cooking your own meals regularly and buying clothes from

discount stores (McDaniel 2018)

According to Virstracte (2013), financial problem is the main

cause of students enrolled in college to dropout. About 30% of

Quebee University’s student dropout due to financial problem. It

has been established that financial problem contribute to dropping

out, but it is under how different methods for financing post-

secondary education influence persistence and academic success

in university.

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Local

Many governments have adapted a policy of seeking to

increase the number of students entering higher education and to

finance this expention by transferring cost from the state to the

individual. Some policy has been pursued relatively little concern

for the impact that the increasing financial burden may have on

students. According to Villafuerte (2015), Many students are

coping with their day to day living cost more comfortably than they

expected to in the first year.

However, those in difficult financial position at the start of

their period of the study were likely to face greater problem in the

course of their first year. Two difficulties in particular having

missed payments at the start of the academic program, and having

to wait for the first student loan payment were shown to have a

damaging effect on academic performance.

Poor financial management is one of the main causes of

financial problems among students. According to Allan Greenspan,

“The number one problem in today’s generation and economy is

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the lack of financial literacy”. Most students tend to fail in

managing their money (Marthern,2011). These problems are

common among students who are attempting to balance small

budgets with living expenses and also for those students who tend

to spend a lot for their ones and not for their needs.

Heavy borrowings and a lack of saving habit have been

blamed for the financial problems the Filipino’s are facing in the

country and abroad (Nicolas,2015). The Philippines has one of the

fastest-growing economics in the present, giving the people the

chance to have more financial power than before. However, all

these will only go to waste if we do not understand how money

habits, thus leading to financial problems (Go,2017)

On Motivation

Foreign

According to the PMEIOK (Project Management Body of

Knowledge), motivation is powering people to achieve high level of

performance and overcoming barriers in order to change.

Psychologists have been provided different definitions according to

attitude to the motivation phenomenon. What is certain and must

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be acceptable to the market individual differences is that people

have different motives. In, addition individuals need to know their

personal characteristics in driving forces which can be easily

identified before acting with motivation. Generally, motivation is the

driver of guidance, control and persistence in human behavior

(Tohidi & Jabbari, 2011).

Motivation is a powerful, yet it can be a confusing and hard.

Sometimes it is really east to get motivated and you find yourself

wrapped up in a whirlwind of excitement. Other times, it is nearly

impossible to figure out how to motivate yourself and your gonna

lose your focus and end up procrastinating. According to Lloyd I.

(2011). ‘At some points, everything is ending. Have you even

started?’. In other words, at same point, it is easier to change than

to stay the same. It is easier to take action and feel insecure at the

gym than to sit still and experience self-loathing on the couch. It is

easier to feel awkward while making the sales call than to feel

disappointed about your empty bank account. This is the essence

of motivation. Every choice has a price, but when we are

motivated, it is easier to hear the inconvenience of action than the

pair of remaining the same. Somehow, we cross a mental

threshold usually after weeks of procrastination and in the face of

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an impending deadline and it becomes more painful to not do the

work and actually do it (Clear, 2018)

Local

Motivation is defined as “The psychological forces that

determine the direction of a person’s level of effort, as well as a

person’s persistence in the face of obstacles. (Lockwood, 2010).

Motivation provides a goal that the employee works towards.

Thereby giving the employee a direction to follow. The concept of

motivation means a process of stimulating people to action to

accomplish desired goods (Constanta, 2012)

A vast body of literature exist on the relationship of

motivation and performance in professional work and organization

settings (Osterloh, Frey & Homberger, 2011). Motivation is the

process of attempting to influencing others to do your will through

the possibility of gain or reward (Roque, 2016). Beyond work

settings motivation may influence performance in academic

settings and among university students.

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 RELATED STUDIES

On Financial Problem

Foreign

Many students believe that financial problems are having

an adverse effect on their academic performance; a survey of

university of Central England Undergraduates has shown

veracious result. The survey, carried out by UCE’s Centre for

Research into quality (CRQ), found that 51.9% of the 1139 full-

time undergraduates police believes their academic performance

was suffering and 15.1% believe that there was a major negative

impact.

Financial problem in a referred to as inability to manage

expenses (Falahati and Rains, 2012). Therefore, the people’s

ability to manage his or her personal finance has become an

important issue because people looking at the different aspect of

their financial affair. Most of people no longer looking at financial

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affair like savings and borrowings but also, on long-term prospect

such as retirement plans, children plan, family future, home and

similar items. The investment decision also a part of sources of

finance by individuals. Thus, an individual may seek to borrow

from banks, financial institution such as credit union, through credit

card and also from friends or family members when they are in

need of money (Ibrahim and Alqaydi, 2013).

Financial problem is quite common and they contribute a

huge percentage of motivational problems found in the workplace.

In most scenarios, financial difficulties are in result of poor choices

made by the individual (Ford,2010). However, in some instances

the financial hardships are a result of situation beyond the control

of an individual. Some common financial problems that are

experienced by employees include minimal or no medical

insurance, mortgage payments, gambling addiction, lack of

savings and fraud (Shinick, 2010).

Local

Experiencing financial problem is not unlikely among

Filipino students, government statistics suggest that a significant

proportion of school-age population experience financial

difficulties. Starting at the basic education level, almost 20% of

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Filipino students who dropped out of school mentioned

insufficiently financial resources as the main reason for quitting

school. (Philippine Statistics Authority, 2015)

Dropping out of school was not probable among 17-year

old’s, particularly among those from the lowest income families

(Reyes, Tabuga, Asis, and Mondez, 2015). In college age

population the top reason (mentioned by 35.58% for not going to

college or university was the high cost of higher education;

moreover, about 16.0% of those who opted not to pursue higher

education report that they did so in order to look for work to earn

money for their families (Reyes et al., 2015).

Only 18 percent of Filipinos saw themselves as “thriving”

financially, while the rest of the represented population said they

are “struggling” or “suffering” in terms of economic security (The

Philippine Star, 2015). The recent Gallup-Healthways State of

Global Well-Being Index 2014, reported that Filipino’s perception

of financial security is notably below the Asian and global averages

of 25 percent. The study found that 52 percent of Filipinos reports

to be struggling in terms of financial well-being, while 30 percent

are suffering. It also indicated that suffering is more prevalent

among Filipino rural residents (35 percent) than those who live in

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urban areas (24 percent). Financial problems can have many

causes, and produce disastrous results when not handled promptly

and properly (Quezon, 2011).

On Motivation

Foreign

Motivation issues experienced in the work place are not

necessarily caused by work environment. In some cases, external

factors not related to work environment are the primary reason that

so many workers are incapable of performing to the best of their

ability. “People tend to underestimate the importance of external

factors and overestimate the importance of internal factors as

influences on those behaviors” (Baack, 2012). Through the

exploration of how financial problems can affect motivation in

employees and how the motivation of these employees can be

boosted, a better understanding of performance issues and

motivation can be gained.

Motivation is another important factor that affects a

student’s education. It can have a very important impact on the

amount of effort that is exerted. Motivation is defined as the

internal force that compels a person to meet a certain need

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(Goodman, 2011). Goodman et al. identified motivation as a

starting point, which goes on directly affect both effort and

academic performance. Then effort also goes on to directly affect

academic performance as well.

Several theories on motivation have been developed

throughout the years. A society for Human Resource Management

(SHRM), white paper lists of the following theories of motivation as

the most influential in generating understanding on the concept of

motivation within the workplace. Masslow’s hierarchy of needs,

Hezbierg’s motivation hygiene theory, and McClelland’s needs for

achievement, affiliation, and power, to name a few (Lockwood,

2010).

Kucukozkan (2015) defined motivation as the sum of the

efforts made for mobilizing the individual towards one or more

particular goals and for ensuring the continuity of this movement,

whereas according to Waterman (2015), it is a force representing

the internal factors initiating the movements that should be

performed to fulfill a need and the external force that encourage

this behavior.

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CHAPTER 3: RESEARCH METHODOLOGY

This chapter talks about the methods used in order to come

up with this kind of study. This chapter includes a detailed

description of the research methodology that was utilized in the

study. This chapter organized in several methods used: research

design, research locale, population and sampling, participant of the

study, data gathering procedure, and treatment of qualitative data

that provide to a framework within researchers will gather and

information that will be great help to this study. The lived

experience of learners to financial problem.

Research Design

The Researchers use qualitative research methods in this

study about students which into financial problem in an effort to

capture the richest data and learn from individual experiences of

those who work daily in student money management centers,

qualitative research methods were used in this study. The

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following is an overview of my participants, instrument, data

collection methods, and methods for data analysis.

This study is figured to assess the lived experienced of

students of Grade 10- Pletsa who are in a financial problem whose

age 14-16 years old.

Research locale

This study conducted in Grade 10- Pletsa learners in

Polomolok National Highschool (PNHS). Wherein researchers

selected any of the students which is experiencing financial

problem located at Polomolok Cannery Site, Octavio Village.

Population Sampling

The population of this study are the Grade10- Pletsa learners

who are in a financial problem whose age is about 15 to 16 years

old. For the gathering of the qualitative data, the participant was

gathered through purposive sampling. This sampling method is

conducted where it identifies a population of interest and

developing a systematic way of selecting cases that is not based

on advanced knowledge of how the outcome would appear. Based

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on their gender and age then asked them if they are willing to

interviewed personally.

Data Gathering Procedure

As stated in the research design of this study in this chapter,

the study follows a qualitative research method the qualitative data

is gathered through recorded interviews, and then interpret the

statements given by the respondents of this study regarding their

experience and problems they are facing in a financial problem. In

which the researchers made the questions that will be used to

provide the personal experiences of the participants. This is to

gather the themes that will emerged to come up with the qualitative

data results.

Instrumentation

In this study, the researcher will be using the questionnaire.

The questionnaire is a set of orderly arranged questions carefully

prepared to answer by the respondents designed to collect facts

and information. The questionnaires given to the participants

consists questions regarding how financial problem affects them in

different aspects. The researchers used structured survey

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questionnaire to specify the level of agreement of the respondents

of the statement.

CHAPTER 4: PRESENTATION, ANALYSIS AND INTERPRETATION

This chapter presents the results, the analysis and

interpretation of data gathered from the answers to the

questionnaires distributed to the field. The said data were

presented in tabular form in accordance with the specific questions

posited on the statement of the problem.

Profile of the Respondents

Table 1: Age of the Respondents:

AGE FREQUENCY PRECENTAGE RANK

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