THE EFFECTS OF FINANACIAL HARDSHIP ON THE ACADEMIC PERFORMANCE OF SENIOR

HIGH SCHOOL STUDENTS (SHS) AT THE MERIDA VOCATIONAL SCHOOL

Background of the Study

Financial hardship, or the inability to meet financial obligations, is an issue that affects
individuals and families across the globe. It is an issue that transcends geographical
boundaries and socioeconomic backgrounds, creating a significant impact on individuals’
lives and their pursuit of education. Financial hardship presents a challenge that extends to
the education sector, particularly among senior high school (SHS) students. As these
students embark on their educational journey, they face not only academic challenges but
also financial ones. The management of financial resources becomes an increasingly
complex task as students need to allocate money for various purposes, from daily expenses
to educational requirements.

In the Philippines, financial hardship is a prevalent issue, with a considerable number of

students compelled to discontinue their studies due to financial constraints. For some, the
pursuit of education becomes intertwined with part-time employment, as they strive to
balance work and study to meet their personal and educational needs. Education is
universally acknowledged as a key factor in personal and societal development. However,
financial hardship poses a significant barrier to the fulfillment of educational aspirations. As
financial hardship is a complex and multifaceted issue, it warrants investigation and analysis
to comprehend its impacts fully.

The context of this research centers on senior high school students at the Merida
Vocational School (MVS) in the Philippines. The focus on this specific educational institution
provides insights into the experiences of students who are particularly vulnerable to
financial hardship. This research aims to raise awareness about the issue and explore
potential solutions. It recognizes financial hardship as a common challenge faced by a
significant proportion of the student population, potentially affecting their academic
performance.

Statement of the Problem

This study aims to determine the relationship between financial hardship and
academic performance of SHS students in MVS. Specially, seek to answer the following
questions:

1.What is the profile of the respondents In terms of the following?

1.1 Age

1.2 Sex

1.3 Family income

2. What are the effects of financial hardship to the respondents?

3. Is there a significant relationship between financial hardship and academic performance

of the respondents?

Null Hypotheses

There is a significant relationship between financial hardship and academic performance.

Theoretical Framework

Within the confines of this research, several salient theoretical frameworks are aptly
employed, including:

1. Human Capital Theory: As posited by Gary Becker, this theory underscores the critical
importance of education in enhancing an individual’s human capital. It is premised on
the notion that investment in education results in improved future earnings and
personal development.
2. Stress and Coping Theory: This theoretical framework postulates that financial
hardship has the potential to induce stress, thus adversely affecting individuals’
psychological well-being, which in turn, exerts a subsequent impact on their
academic performance.

Conceptual Framework

Input. Process Output

Profile of the respondents: 1.Profiling

Age: 2.Survey Tool Effects of financial hardship

on the academic
Sex: 3.Data Gathering
performance
Family Income: 4.Data Analysis and
Interpretation

5.conclusion and
Recommendations

In this conceptual framework, the input is the profile information of the respondents.
Necessary steps and procedures are to be implemented to obtain the vital data as a result
and findings of the research. These findings will be the basis a result of the effects of
financial hardship on the academic performance

Scope and Delimitation

This research project distinctly confines itself to the exclusive purview of senior high school
(SHS) students at MVS. It is critical to acknowledge that the experiences of students in other
settings may vary significantly. The research endeavors to probe the dynamics of financial
hardship in the specific context of limited family income, tuition costs, and unexpected
financial obligations. It meticulously examines the direct implications of financial hardship on
academic performance and the attendant, albeit indirect, psychosocial consequences.
Importantly, this study does not delve into other facets of financial hardship, such as student
loans or other advanced financial mechanisms.

Significance of the study

This study carries immense significance as it unfolds the complex relationship between
financial hardship and academic performance among the SHS students at MVS. Its findings
stand to provide a rich tapestry of insights that can profoundly impact educators,
policymakers, and educational institutions in crafting tailored support mechanisms and
targeted interventions. By virtue of its deep comprehension of the implications of financial
constraints, this research contributes fundamentally to the enhancement of the academic
experiences of SHS students and the realization of their educational aspirations.

Definition of Terms

- Financial Hardship: The pervasive challenge characterized by the incapacity to meet

financial obligations, frequently stemming from the presence of limited family income, the
escalating cost of tuition, and unforeseen financial exigencies.
- Family Income: The composite income derived from diverse sources within the family unit,
Significance compassing wages, allowances, and other forms of financial support.
- Academic Performance: The holistic evaluation of a student’s attainment in their
educational pursuits, encompassing components such as grades, regular class attendance,
and the successful completion of coursework.
- Psychosocial Effects: The multifaceted emotional and psychological outcomes resulting
from financial hardship, including heightened stress levels, increased anxiety, and
diminished mental well-being.

CHAPTER II
REVIEW of RELATED LITERATURE
RESEARCH AND POLICY IMPLICATIONS

Based on Elliot and Lewis(2010) The study of debt impacts on Financial well-being
research and policy implications generally focuses on revisiting the knowledge gathered
when it comes to the effect of student debt on the financial outcome of students entering
tertiary education, regardless of whether a degree flourishes or thrives or leaves college
inappropriately. This simply means that there is a greater downside for those students who
have to borrow money to meet the school’s obligation, as opposed to those students with
the same year level and who could affordably pay the school bills.
Savings Behavior and Financial Problems
According to Sabri and MacDonald (2010) the savings behavior and financial problems
among college students study talks about the connection between having financial
management and financial stress to financial literacy towards college students In Malaysia.
This study, in overall thinking, stated that student who could pass the test scores about
financial knowledge has probability that could be reported as having less financial
difficulties. Of course, it would happen if that student experienced bad luck and acted a
wrong habit in handling money long before. It would serve as a room of improvement on
educating student’s knowledge about financial scope.
Determinants of University Working-Students
As stated by Anson and Gyensare (2012) the research entitled Determinants of
University Working Students’ financial literacy at the University of Cape Coast Ghana really
focuses on investigating the problem in order to determine the financial literacy of working
students entering the university. It means that the study aim to gather for more information
in collecting data from the possible respondents of the study. This work proved positively
that age and work experiences were closely associated with each other in explaining the
field of financial literacy.

Financial Education on the Financial Knowledge of High School Students

According to Walstad, Rebeck and MacDonald (2010) the effects of financial

education on the financial knowledge of high school students has greater impact on
understanding the importance of recognizing and educating student knowledge about
financial management or handling money excellently. This paper significantly proved that
implementing a program about financial education, the student would probably guide highly
and would grow with development about finance when engaging financial crises.
Gender Differences In Financial Well-Being Among College Students
In accord with Falahati and Paim(2010) Gender Differences in Financial well-being
among college students research found that the perceptivity of men and women about
financial scope were varied. The male and female students have own insights about
managing the bills. It depends on how the students’ financial knowledge work based on
gender they have.

A vulnerable student population

According to Mohamad Fazli Sabri(2012) is to find out the relationship between
personal and family background in Financial well being.
10% of the students in the University Toledo are experience in English language problems
financial problems and lack of understanding from broader University Community. Mark
Sherry, Peter Thomas and Wing Hong Chui(2010).

The Roles of Parents, Work, and Education

The research about the problem of financial socialization of first year college students
the roles of parents, work and education speculatively means that the research title itself
focuses on investigating and explaining the role acted by the parents in giving financial
interaction towards student. The work experiences gives insight to the high school student
to become more aware and wise when handling money and the high school financial
education gives knowledge among students according to Soyeon Shim, Bonnie L.
Berber ,Noel A. Card, Jing Jing Xiao and Joyce Serido(2010).

CURRENT LITERATURE AND RESEARCH OPPORTUNITIES

Under to Ahsan(2013) the financial literacy are very important for the undergraduate
students. For the developing nation, rising cost of living is the key to financially equip in
financial decision making for the undergraduate students financial literacy, which can be
defined as an understanding of how to earn, manage, and invest money, has a critical impact
on students’ ability to make smart choices about which institute of higher education to
attend, what to study, how to pay for college, and how to manage student loan debt after
graduation. Students who are financially literate are better equipped than those who are not
to make wise choices regarding school selection, what degrees to pursue, and how to pay for
postsecondary education. The choices students make while in school often have a direct
impact on their financial futures.
Financial behaviors and attitude
According to Norvilitis and MacLean(2010) parents are teaching their college students
to avoid dept. Students have credit card to purchase item not to dept. Students have ability
to bail them out their parents from dept. This study examined how parents’ teaching and
modeling of financial concepts affects college student credit card debt (n = 173). Parental
hands-on mentoring of financial skills was most strongly related to lower levels of credit card
debt and this relationship was partially mediated by it leading to greater financial delay of
gratification and less impulsive credit card purchasing which in turn were related to less
problematic credit card use. Having parents who struggled with debt was not significantly
related to debt although having parents who avoided talking about finances predicted
problematic credit card use. Students’ beliefs that their parents would bail them out of debt
were related to lower levels of debt. Financial knowledge and parental verbal instruction
appear to have complex relationships to credit card debt.

CHAPTER III
METHODOLOGY
This chapter presents the discussion of research, method or design that was used in
the study, respondents, research instrument. This chapter includes also the procedure used
in collecting the data, method of scoring and analysis and the measures that was used in
treating statistically the collected data.

Research Design
This study was used a correlational method of research to examine the relationship
between financial hardship and academic performance of senior high school students in
Merida Vocational School. This design aims to examine the relationship between financial
hardship and academic performance without manipulating any variable.

Research Respondents
The respondents of the study are thirty (30) senior high school students who are
enrolled in Merida Vocational school in the school year 2023-2024.Their age is from 16-21
years old. They were chosen to be the respondents because they are the senior high school
students in Merida Vocational school. The students were asked to answer the questionnaire
to gather more information from the researcher.

Research Locale
This study was conducted at Merida Vocational School. Merida Vocational School is
located at the Poblacion, Merida, Leyte. Merida Vocational School is one of the five Technical
and Vocational School in the Province. This school was founded on June 18, 1964. The school
principal is Mrs. Evangeline M. Adre.

Research Instrument