The Effect of Economic Crisis to the Behavior and Academic Performance of Students

Proponents:

Althea D. Taba

Shakyra Lei L. Paballa

English Research Instructor:

Aljon F. Tobongbanua

Theme:

Social Issue

Category:

Financial/Economic Crisis
 INTRODUCTION

Context and Rationale

People born with different economic capacity has different ways of surviving. It is important

to be more positive even when you are at low, especially on students who communicates with

each other. Students with low financial income will have different perspective. Low income can

affect students behavior and performance at school. According to Silverman et al. (2021), low

socioeconomic students has different perspective when it comes to learning. Some tend to strive

hard to succeed in life, some are being stopped by other peers who looks down on them, and

some that would rather stay the same. Moreover, low financial income not only affects the

students behavior and performance but also their social life. There will be times that some

students would choose to ignore other students that doesn't reach their expectations and

standards, this will lead for other students to have low self-esteem.

According to the Bangko Sentral ng Pilipinas (2022), the average Filipino household income

dropped in 2021. According to the data they gathered, there is noticeable job growth, but it does

not result in a significant increase in household income. The preliminary findings of the 2021

Family Income and Expenditure Survey (FIES) predict that the average annual family income in

2021 will be PHP 307,190, a 2.0% decrease from PHP 313,350 in 2018 (PSA, 2022). When the

statistics are adjusted for inflation, the fall becomes even more pronounced, with a typical

family's income in 2021 estimated to be just PHP 282,080, a 10% decrease from the 2018 level.

While the change in family income varies across deciles, there has been a consistent drop in

expenditure throughout all deciles. Household spending fell by an additional 4.1% compared to
the decline in average earnings. The capital region, with a decline of 12.6% in household

expenditure, was also most affected. Although the decline in actual spending per decile was less

pronounced for low-income deciles, it should be pointed out that basic necessities are more of a

part of their consumption than for upper-income groups. Spending on food constitutes an

increased proportion of total household consumption among lower-income households. In the

first semester of 2021, food accounted for 58.2% of total family expenditure in the low 20%

category, compared with 31.9% in the high 20% income group (PSA, 2022).

The financial crisis that some Filipinos experience that could be a cause of the pandemic can

affect a whole Filipino family. Not only the parents that work and bring income to the family,

but also their children that studies. Some students weren't able to attend school because they have

to work and help their parents, or they are not fincially stable to support their studies. In some

cases, even if they are determined to study, being financially unstable could lower the self steem

of the child that could be worsen leading to unstable mental health. Hence, this results to lack of

education that affect not only the Filipino families itself but the whole country's economy itself.
REFERENCES:

Financial Stability Coordination Council. (2022). Impact on households. 2022 Financial Stability

Report. Bangko Central ng Pilipinas. Retrieved from

https://www.bsp.gov.ph/Media_And_Research/FSR/FSR2022.pdf

Silverman, D. M., Hernandez, I. A., & Destin, M. (2023). Educators’ Beliefs About Students’

Socioeconomic Backgrounds as a Pathway for Supporting Motivation. Personality and Social

Psychology Bulletin, 49(2), 215–232. https://doi.org/10.1177/01461672211061945