Republic of the Philippines

CAVITE STATE UNIVERSITY-CCAT

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Rosario, Cavite
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The research paper entitled,

The Positive and Negative Effects of Financial Distress on Students in a

Sustainable Set-up

was studied and prepared

by
Arguson, Neldy Jane
Astoveza, Elizabeth
Cutillas, Maurine
Dumaop, Apple
Gubat, Kayra Theress
Orbe, Avegail Jane
Pastor, Kianna Isabelle
Reblando Frency Elaiza

has been approved as a Final Examination on the subject,

THE CONTEMPORARY WORLD

Submitted to:

MA. SOCORRO D. VICTA

July 5, 2023
 I. Research Title:

The Positive and Negative Effects of Financial Distress on Students in a

Sustainable Set-up

II. Research Objectives:

Personal: To discuss the positive and negative effects of financial distress on the

students

Local/National: To identify the factors behind the financial distress experiences of

the students in the Philippines

Future Studies: To analyze and examine the interpretations related to the study

III. Review of Related Literature

Financial difficulties have been identified as a source of stress for students in

higher education institutions around the world (Aherne, 2001; Joo, Durband, &

Grable, 2008; Roberts, Golding, Towell, & Weinreb, 1999). Perhaps unexpectedly,

financial stress and uncertainty have a negative impact on student well-being

(Mahmoud, Staten, Hall, and Lennie, 2012; Smyth, Hockemeyer, Heron, Wonderlich,

and Pennebaker, 2008). Financial stress among students is associated with higher

self-reported mental health needs (Hyun, Quinn, Madon, & Lustig, 2006), difficulties

in college adjustment (Meehan & Negy, 2003), and a variety of negative behaviors,
social relations, and academic outcomes (Adams, Meyers, & Beidas, 2016;

Northern, O'Brien, & Goetz, 2010).

According to a Classification and Regression Tree, individuals with a lower

perceived net worth, greater mental health problems, older age, less perceived

financial literacy, and worse satisfaction with expected income were more inclined to

seek out financial counseling on campus. The logistic regression analysis's findings

proved that pupils who were older, wealthier, and more financially secure.

Knowledgeable people were more inclined to seek assistance (Britt et al., 2011)

Financial pressures have been identified as one of the factors contributing to

student stress in higher education systems around the world (Aherne, 2001; Joo,

Durband, & Grable, 2008; Roberts, Golding, Towell, & Weinreb, 1999). Financial

strain is described as the inability to pay one's bills while taking into account the

psychological and emotional repercussions of feeling under pressure (Northern et

al., 2010). Financial stress is not uncommon among Filipino students, and

government figures indicate that a significant number of the school-age population

faces financial challenges. Starting with primary school, nearly 20% of Filipino

children who dropped out cited a lack of financial means as the primary reason for

leaving school (Philippine Statistics Authority, 2015). In the college-age population,

the top reason (cited by 37.58%) for not attending college or university was the high

cost of higher education; additionally, approximately 16.0% of those who chose not

to pursue higher education did so in order to look for work to support their families

(Reyes et al., 2015).

According to Northern et al. (2010), financial stress can be characterized as

the inability to pay one's financial responsibilities and psychological or emotional

impacts. In addition to dealing with the financial pressures of entering a new stage of

life, university students who are struggling with debt must also deal with social

pressures, adjusting to a new environment, a faster pace of work, and rising tuition

(Britt et al., 2016). The outcomes of financial stress have received a lot of attention in

the literature. Research has documented the following adverse outcomes of financial

stress: (a) depression (Andrews & Wilding, 2004; Clark-Lempers, Lempers, &

Netusil, 1990), (b) anxiety (Andrews & Wilding, 2004), (c) poor academic

performance (Andrews & Wilding, 2004; Harding, 2011), (d) poor health (Northern et

al., 2010), and (e) difficulty persisting towards degree completion (Letkiewicz, in

press; Joo, Durband, & Grable, 2008; Robb, Moody, & Abdel-Ghany, 2011).

Other studies (Britt et al., 2011; Lim, Heckman, Letkiewicz, Fox, & Montalto,

2012) have concentrated on how financially strapped students cope, such as by

asking for assistance. It is found that character strengths serve as a buffer against

the impacts of stress and other adverse experiences on people's well-being,

according to one of the key tenets of positive psychology (Gable & Haidt, 2005; Park

& Peterson, 2009). Personal financial struggles have a big impact on college

student's life, according to a stress study. College students typically report feeling

stressed out because of financial issues (Northern, O'Brien, & Goetz, 2010).

A financial crisis is a predicament in which tension is brought on by financial

concerns. However, recent financial issues have plagued college students and have

grown to be a significant issue for them. Students sometimes experience financial

difficulties because they lack the funds to cover their everyday expenses, which

makes them anxious. After that, financial issues will have an effect on your physical

and emotional health. (Halliday Wynes, 2014)

 Therefore, social support can help mitigate the effects of the stress itself, even

if financial hardship is known to generate stress and harm students in a variety of

ways. Researchers Tran et al. (2018) investigate social support from a stress-coping

standpoint. Because of the expansion of the financial industry, financial literacy is

essential. Therefore, having excellent financial knowledge and attitudes is essential

for making wise financial decisions. Sadly, today's youth, particularly college

students, lack the skills necessary to manage their own personal money (Chinen &

Endo, 2012).

The chance of reporting financial stress has been the subject of very few

research. While Brougham, Zail, Mendoza, and Miller (2009) looked at various

stressors, such as financial, familial, social, and everyday problems, their main goal

was to find student coping mechanisms. It has been hypothesized that heavier

financial responsibilities lead students to drop out of school. a minimum, to cut back

on their course load so they may spend more time working for pay (Joo, Grable, &

Bagwell, 2003). They discovered that college women were more likely than college

men to report experiencing financial stress (Brougham et al., 2009).

According to (Guan, 2015), college students who are struggling financially are

those whose families are barely able to pay their expensive university tuition and

who should be helped by a modern funding system. Some researchers have

exclusively used financial data to quantify financial stress, as Northern et al. (2010)

points out. Even though not being able to make ends meet and other financial

problems can be stressful, there are significant psychological aspects of stress that

may be missed if you only look at economic statistics.

 According to research by Morra, Regehr, and Ginsburg (2008), anticipated

debt among medical students is a powerful predictor of financial stress. Higher

levels of financial happiness were found to be significantly and inversely connected

to financial concern among college students by Archuleta, Dale, and Spann (2013).

Both high-income and low-and middle-income countries have a correlation between

financial stress and depression, but this correlation is typically larger in people with

lower levels of wealth or income. The effects of financial stress on depression can

also be explained by other pathways besides the "social causation" pathway, such

as "psychological stress" and "social selection”.

Research has also been done on how financially stressed students cope,

including how they ask for help (Britt et al., 2011; Lim, Heckman, Letkiewicz, Fox, &

Montalto, 2012). (Naijie Guan & Patrick Moore, 2022). College students spending

patterns were examined by Hayhoe, Leach, Turner, Bruin, and Lawrence (2000),

who also included financial stress as a predictor variable in their model. Hayhoe et

al. (2000) found a negative correlation between the number of positive economic

activities and the amount of financial stress by adding affirmative responses to seven

financial stressors, such as "unable to save for an emergency" and "unable to pay

utility bills."

In the studies on college students, self-efficacy and optimism have been

connected to stress. A person's capacity to deal with various circumstances can be

perceived as self-efficacy (Bandura, 1977). Perceived self-efficacy is different from

ideas like mastery and locus of control. According to Bandura (1982), this is a

complex process in which "component cognitive, social, and behavioral skills must

be organized into integrated courses of action" (p. 122). While mastery is about
actual activity and is a source of self-efficacy, self-efficacy is a perspective,

according to Bandura (1977; 1982). Control orientation is related to the locus of

control (Rotter, 1966). A person with a high perception of their own efficacy is certain

that they can accomplish the goals they have set for themselves.

Research has indicated that self-efficacy is favorably correlated with

academic achievement (Chemers, Hu, & Garcia, 2001; Zajacova et al., 2005) and is

connected with a decreased risk of stress among college students (Zajacova, Lynch,

& Espenshade, 2005). Positive expectations for the future are referred to as

optimism (Scheier & Carver, 1987). Academic and health results for college students

have both been proven to be significantly influenced by optimism (Chemers et al.,

2001; Scheier & Carver, 1987). Since self-efficacy and optimism have been used to

examine various student wellness outcomes, these ideas may be pertinent to the

investigation of financial wellness, and more especially, financial stress, among

students. The subject of financial support for financially troubled students has drawn

considerable attention from academic and managerial disciplines during the

pandemic's stage of global sustainable recovery (see, for example, Murra-Anton

2022).

Financial well-being, according to the Metlife survey, is a relatively new but

growing concept where significant macroeconomic transformations are taking place.

The world is putting pressure on multinational firms to increase their efforts to

provide competitive perks to the people. It stated that benefits, as well as financial

education, will help people manage and invest their money more effectively.

Financial wellness initiatives can reduce stress, which is a commercial basis for such
efforts. In a workplace, reducing stress and absenteeism while increasing

productivity and employee loyalty is important to achieve financial well-being.

IV. Content

A. Introduction

Here in the Philippines, the need to survive and endure suffering after

suffering is not a new thing. That is because this country is prone to typhoons and
natural disasters that make the Filipino people resilient and easier to adapt to

changes. Nevertheless, because of the shocks and the unforeseen problems

brought by the Covid-19 pandemic and all the natural disasters the citizens are

suffering from, the Philippines is now in agony of inflation, debt, and crisis. The

covid-19 pandemic required the country to survive, especially when there are many

Filipino who are unemployed and most families are losing income, many families

also do not have savings. To make it short, the Philippines is not prepared for this

said pandemic.

In this present time, there are many issues faced by the people because of

the financial crisis. First of these is the suffering of older people because of restricted

access to food and medicine. Whereas 57 percent of older people have difficulty

accessing food, and 52 percent of older people have difficulty accessing medicines,

stated by Help Age International and Coalition of Services of the Elderly (2023).

Secondly is the children who missed education where according to UNICEF, they

are continually missing education opportunities in another year of school closure due

to the pandemic. There is also the existence of educational losses suffered by

Filipino students mainly because of the pandemic. Additionally, according to the

same source, young people living in the Philippines are the most at risk of the

impacts of climate change. It can also threaten their health, education, and

protection. In summary, Philippines, according to the data of 2021, 18.1 percent of

the Filipino people are living below the national poverty line and there is a 3.4

percent of unemployment rate which is something very important as jobs and the

labor force are considered one of the easiest and most practical ways to get money

from.
 Financial distress is not only a problem for our nation but for others as well. In

this case, way back in 1900, there was a situation found in the Asian Financial Crisis

where Thailand showed that financial distress caused that said nation to be in large

debt. That is due to Thailand’s financial imbalances - causing the value of its

currency to decrease. In other words, there was a collapse in the currency, which left

Thailand unable to pay many of its foreign creditors. It is obvious that when a country

is suffering from debts, then the people residing in that certain country are also

meant to suffer and take a step toward a mode of survival.

Another example is the country of Africa. According to the author named

Philip Ndegwa in his study entitled The Economic Crisis in Africa, the said country is

currently in a dangerous economic crisis, whose real severity, dimensions, and

social and political consequences are not fully appreciated even in Africa itself. The

causes of this worsening crisis include a wide range of internal weaknesses, a

hostile external economic environment, and, in recent years, climatic factors. The

African crisis is affecting not only the government but most importantly, its people.

How does financial distress affect the people in Africa? Despite the fact that

Africa is rich in natural resources, this country is one of the listed ones in the poorest

countries in the world. Because of this fact, African children do not have any idea

what they need to do to put an end to the cycle of generational poverty for it

continues for a very long time. The people are suffering and lost about how to

provide the essential needs for their families. According to the research, 48% of a

certain part of the said country lives in poverty. The majority do not have access to
education. Due to this fact, many of the youth living in Africa chose to work rather

than study. As justification, 10 to 12 million youth enter the labor force each year, but

there are only about 3 million jobs created annually, which leaves many of the youths

unemployed and underemployed. This country finds it difficult to be developed and is

considered one of the least developed countries in the world. These show us that

financial distress is not just a problem here in the Philippines, but more severely in

other countries.

These pieces of information lead us to know that sustainable development

that is always considered for the sake of future generations may be complicated to

achieve. As a result, researchers are trying to understand more about the positive

and negative effects of financial distress on students when it comes to sustainable

set-up.

B. Causes and effects

Causes of Financial Distress in Relation to Globalization

1. Excessive risk-taking

When it comes to academic performance, people who tend to be more adept

at taking risks typically perform worse. We are all aware that the more options we

have, the more likely we are to choose diverse paths in life that will take us in the

direction we want to go. Because there is a high likelihood that we will choose what

we want, we disregard the reality that education should be our top goal. As a result,
we make poor future predictions while being distracted by our options. At first, it may

appear lovely and difficult, but in the end, we will see the harm it does to our future.

Naturally, if we can overdo our lives and do things that will make them easier, we will

pick the easiest option that may avoid doing the things that are essential to our

existence. That will result in bad academic performance because we didn't give our

education an adequate priority in favor of taking a chance.

2. Stresses in the financial system

As globalization continues to advance, we begin to experience more and

more of the issues that it brings about. We frequently overlook the significance of our

struggles and money since we take it with gratitude in our daily life. People

understood the worth of investing in businesses that would transform their lives as

the twenty-first century came into being, but they did not realize that losses would

result from a lack of understanding in that area. Too much trust and investment could

be harmful to your health because you started to suffer significant financial losses

that left you feeling anxious, depressed, and troublesome. Although it is a good idea

to consider investing, you should also need to set restrictions.

3. Lower interest rates

Globalization appears to be wonderful and promising for all of us. However, it

is not always appropriate to use and support our nation. When we examine it closely,

we will see that although its primary objectives were to improve our lives, being so

globally integrated prevented us from obtaining the things that we truly desired. It

discusses the notion of pursuing our interests and influencing our decision to live

conveniently. This results in our losing sight of the need of setting priorities because

we become enamored with the benefits that globalization may provide. Because we
made hasty decisions and undervalued the value of education, we now have more

undergraduate students than those with degrees. Even education is prone to

neglect.

4. Knowledgeable about financial matters

We as humans have the opportunity to gain significant lessons that will be

helpful to all of us, as students and individuals who have taken a class on financial

problems. Despite the time allocated for this subject, we are ultimately able to put

everything we learned in these lectures to use. The major objective of early financial

education is to support kids in developing a clear, efficient, and profitable approach

to money management. The objective of these workshops is to teach students how

to balance their requirements and refrain from overbuying. This helps us see the

value of wise spending and put it to use in our daily lives.

Since administration in higher education and student life are growing more

worried about student stress, student well-being is a crucial topic on college

campuses across the country. Given that stress has been shown to have a

detrimental influence on students' tenacity, heightened oversight of completion rates

ought to spur administrators to learn more about what stresses students are under.

More especially, considering the problem college students and recent graduates

confront with the rising load of student loans, stress arising from personal financial

difficulties is worth investigating in greater detail.

As cited the most common reason why financial distress is overflowing to the

college students are expected to graduate with higher levels of debt related to

student loans because of the lacking when it comes to financial matters however, it

might seem good for those who will benefit from the organization who offers this loan
to the student but it is not applicable to those students who do not have enough

money to pay for their loans. And not having enough money to partake in the same

activities as classmates creates distress because they think that it made them less

as a person. Whenever they experience a hard time in providing for their needs in

school and activities they feel ashamed because they are not able to give monetary

things in their school project and so on. Though it is really happening nowadays, we

cannot deny the fact that it really gives anxiety and depression in college students.

Despite being good in academics, students who experience financial distress think

that something is not enough and that they are not able to surpass their college

years.

Effects of Financial Distress in relation to Globalization

1. Poor academic performance

Students who experience financial distress worry about not only how to pay

tuition but also about daily expenses. A regular college student needs a food

allowance, a transportation allowance, and other miscellaneous expenses. If they

are experiencing financial problems, they might be stressed about where to get

money if there are sudden fees that need to be settled. In some instances, college

students miss their classes due to financial problems. They are also experiencing

food insecurity, which can affect their performance in school. If the body is hungry

and lacks nutrients, the brain can't function well. This explains why some students

who are struggling financially are the ones who perform poorly in class.

2. Health problems
 Due to financial distress, students can develop health problems such as

headaches, stomach issues, anxiety, and depression. These are not only because of

financial problems but also because of the stress they get from worrying about their

studies. The anxiety and stress can also lead them to lose sleep, which can affect

their physical and mental health in the long run.

3. Low graduation rates and higher drop-out rates

After suffering from health issues and stress, some students drop out of

school. They would instead find a job and earn money to keep themselves alive than

continue struggling and studying till they got a failing grade. This can lead to low

graduation rates in colleges. In relation to globalization, having high graduation rates

will produce high rates of professionals, more jobs and workers, and a stronger

economy. Having low graduation rates and higher dropout rates will more likely

weaken the economy of one's country.

4. Smart spending

Students learn to spend their money properly and only buy what is needed.

They balance their needs and wants to avoid too much spending or unnecessary

spending. This could also help them avoid wasting their allowances.

C. Consequences, possibilities in the near future

Poverty is one of the most pervasive and unresolved issues in the Philippines.

It has an impact on students' socioeconomic status as well as their right to

education. Many students from low-income families are unable to pursue a proper

education. Lack of financial support is one of the primary causes. This can lead
these individuals to give up their studies and decide to start working early. Digging

deeper to understand more about this concern with regards to how the financial

aspect affects the students will open doors to advocate programs to aid those

students who need financial assistance. Knowing that financial distress has highly

affected the students especially during the time of the pandemic and even up to this

day, the new normal.

There are several consequences of financial distress for students. Aside from

having poor academic performance, this could also cause them to be pessimistic

which can lead to bad mental health. Moreso, financial distress could cause

relationship problems with others, physical health problems, and mental health

problems. It was evident that one of the sources of distress in the country is

finances. People tend to worry and be anxious about their budget which would lead

to numerous conditions such as migraines, mood swings, and other mental health

disorders.

The most common causes of distress are anxiety and sadness. Financial

issues in the family, such as energy costs, house payments, food expenses, and

other expenses, will cause them to forego education. As a result, students in the

family will strive to find ways to study, such as taking out loans and working at a

young age, resulting in burnout. It was observed that there is a substantial

association between mental illness and financial problems in a study published in

Clinical Psychology Review. According to the study, people who have a lot of loans

and expenses to pay are more likely to have mental health difficulties.
 The researchers can better identify the psychological and emotional factors

influencing students' academic performance through a research-based approach to

understanding the positive and negative effects of financial distress on students.

Financial hardship may have an impact on the students. For instance, students who

are struggling financially often perform poorly academically. Some people could use

these circumstances as motivation to work harder to reach their goals.

With this, it is important for us to know, both the positive and negative effects

of financial distress to the students. The financial aspect is a key factor in how they

perform in school and their total well-being. Thus, conducting a study about it to

further identify the extent of its effect on the students will be extremely significant as

this will make people understand how the financial aspect affects students

nowadays.

D. Developmental studies

Throughout the years, negative effects of financial distress among students

were really evident, especially in the academic performance of the students.

However, there's still a light that shone along with the negativity it brought, it has

been found by Moore et. al 2021, that many students developed personal bonds with

those who were under a financial strain, even if other connections with peers were

viewed as difficult to maintain. Together, these students discovered free events on

campus to attend and one student thought that these relationships were easier

because "it feels like you're not alone in this." Other students echoed this view,
saying that these friendships give "a nice community where I feel I fit in." They talked

about sharing money woes and using humor to get through challenging financial

times.

Moreover, according to the study on The Precarious Impacts of Financial

Stress last 2022, Financial difficulties for students can be justified as a normal part of

life: valuable credentials are the payoff for brief sacrifice. Meaning, it is just a matter

of mindset. Either student will view it positively or negatively. Financial distress may

bring optimism among students to persevere more in life.

Manulife's Asia Care survey conducted in 2022 revealed that the majority of

Filipinos are concerned about their wealth and health in the wake of COVID-19.

Since the pandemic has affected Filipinos for two years, they clearly understand the

value of maintaining both their mental and financial well-being.

According to the survey, women made up 84% of the respondents, which is

the majority of the sample. Filipino women often experience symptoms like sadness,

fatigue, excessive worrying, and difficulty sleeping. Young and old Filipinos were

both affected by the pandemic in terms of their financial stability, and they sought to

address the declines by taking charge of their finances and expenses.

A 2021 survey by a provider of banking solutions found that financial stress is

highest in the Philippines. They said that 49 percent of the respondents are above

average and that managing finances is a difficulty for 70 percent of the respondents.
 According to the study, while over half of the respondents indicated that they

were at ease with their financial status, the other half appeared to be in financial

distress. The study also found that people over 50 are more stressed than people of

other ages. Some survey participants struggle with saving money and worry about

their retirement.

As the new school year begins in 2021, the Philippine education crisis

persists, particularly for the pupils who are poor. The pandemic simply serves to

highlight the steadily diminishing quality and accessibility of educational

achievements. In terms of financial hardship, it was noted that pupils from low-

income families who encounter a mix of inefficiency, starvation, and a lack of

textbooks had poor learning outcomes. Since these families must decide between

providing for their families needs and providing for their children's education.

According to estimates, there are at least 3.5 million adolescents who are not

attending school, and due to financial issues, 50% of these youth come from low-

income homes.

Financial stress is positively connected with factors including gender, living

circumstances, and loan borrowing, per a study conducted by Hossain et. al 2023. It

was discovered that female students experienced financial stress less frequently

than male students. This indicates that there are some differences in the amount of

financial stress experienced by men and women. This just serves to demonstrate

how positively women tend to view financial hardship. Women are better able to

manage this issue since they are more financially literate. Given that all it takes is
being upbeat and viewing this financial stress as an opportunity to be more

responsible with finances, men can manage it as well.

With the highs and lows of financial distress among students, mandatory

financial education for college students was found to have several good benefits,

according to recent research by the Financial Industry Regulatory Authority. Credit

ratings improved, delinquencies decreased, more money was saved, less debt was

accumulated, and students made fewer compulsive purchases. Given these facts, it

is important for the institution where the students are enrolled to strategically create

programs that will aid the students' financial needs. And one of them is Financial

Education. Educating the students on how to handle finances properly will allow the

students to be more financially literate. This will also help them be responsible with

money.

In addition, a systematic investigation into the relationship between financial

stress and depression used results from observational studies to find out the

conclusion. Unemployment, low income, a lack of education, a relationship status,

and other things are some of the causes of depression. However, research on the

connections between various financial stress indicators and depression has found

that there are beneficial relationships between depression and diverse financial

stress indicators such as debt or debt stress, financial hardship, or challenges. A

comprehensive evaluation including a variety of financial stress indicators was

carried out to better understand the relationship between financial stress and

depression as well as the potential mechanisms underlying it.

 V. Significance of the Study

This study of the Positive and Negative Effects of Financial Distress on Students in a
Sustainable Setup would benefit a range of people, that includes:

1. Students
This study will greatly help the students comprehend how financial distress
affects their ability to learn, mental health, and general well-being. With this
knowledge, students would be better equipped to plan their financial future and ask
for assistance if they were having financial difficulties.

2. Financial institutions
Financial institutions would benefit from having a better understanding of
students' financial demands as a result of this study. By providing information on the
sorts of financial products and services that students are utilizing and the ways in
which these products and services are meeting their needs, the study may aid
financial institutions in better understanding the financial needs of students. Financial
institutions would be able to innovate services and products that are more suited to
the needs of students with the use of this information.

3. Colleges and universities

The study will help colleges and institutions in understanding the financial
difficulties that their students are going through. By giving colleges and universities
information on the different kinds and severity of financial issues students are
dealing with, the study may aid in their understanding of the difficulties that students
are having. This study would be a great help to the different educational institutions.
Colleges and universities may create more efficient financial aid programs and offer
support services to students who are having financial difficulties with the use of this
information.

4. Parents and guardians

The study can assist parents and guardians in better understanding the
financial difficulties that their children are experiencing and in determining how to
support their financial security. Additionally, the study can offer parents and
guardians options and information on financial aid and other initiatives that can assist
in helping their kids pay for college.

5. Policymakers
The undertaking would offer policymakers factual data about the effects of
financial hardship on students in the country. By giving them data regarding how
financial hardship affects students' academic results, the study could aid in the
development of policies that would help to lessen financial stress among students.
This will inform the policymakers in the country about students' financial needs. The
measures that result from this information could help students feel less financial
strain and do better academically.

6. Researchers
Future researchers may use this study as a reference for the furtherance of
the study about the significant impact of financial distress on students. This will be a
launching paper that will drive researchers to dig deeper into financial distress and
its positive and negative impacts on students.

7. College consultants
College consultants can utilize the study's results to assist students who are
having financial difficulties. They can assist young people develop coping methods
for managing financial stress and offer them resources and support.

8. Mental health specialists

Mental health specialists can use the study's findings to better understand the
effect that financial stress has on students' mental health. They can then offer kids
the proper care and assistance.

9. Educators of financial literacy

Educators of financial literacy can use the study's results to create student
financial literacy programs that are more successful. These courses can help
students learn better money management techniques and lessen their financial
stress.
10. Charities and non-profit organizations

These organizations can use the study's findings to create more specialized
and efficient programs for their work with pupils. These initiatives can assist students
in finding financial resources, receiving financial counseling, and creating stress-
reduction strategies.

Overall, an array of stakeholders would gain from the study of the positive and
negative effects of financial distress on students in a sustainable setting, which
would also help to improve the financial well-being of students and lessen the
negative effects of financial distress on their academic performance, mental health,
and general well-being.

VI. Results, Findings, and Conclusions

A. Results and Findings

This provides an overview of the data collected about the effects of financial
distress on students. The students believe financial stress affects their ability to
succeed academically. The students who have financial problems worry about
performing better in college as a result of lower grades, which leads them to drop
out. It proves that during the pandemic when students were dealing with different
learning styles, there were more students who were unable to attend classes, which
frequently ended in dropouts. It was found that financial status depends on the
source of finance, and those who do not have enough sources of income express
stress, especially students. Their lack of financial support in terms of providing their
needs in terms of tuition, projects, and school fees has a major impact on their lives.
Students experiencing financial stress face the challenges of interacting with
wealthier peers, which leads to embarrassment and feeling isolated from others. This
behavior affects how students will perform inside the classroom.

Financial aid helps individuals achieve their goals; however, experiencing

financial stress has a positive impact on other students. Their status pushes them to
strive to survive every day in school and determine what their goals are in the first
place. Those students who lack financial means have strong mindsets and beliefs.
They are totally strong in physical and mental stability to handle financial stress.
Learn to manage their money wisely and how they will spend it on different things in
a good way, and make good financial decisions to spend their money on important
things.

Financial distress affects people in different parts of the world, specifically

students. Financial problems become a major problem for the students, which often
leads to distress. Financial responsibilities have an impact on the psychological and
emotional well-being of every student. Students who lack the financial resources to
provide for their needs in school experience anxiety, stress, or depression. In
addition, there is a cyclical relationship between stress over money and mental
health issues like depression, anxiety, and substance misuse. Their mental health
has been negatively impacted by financial issues.

When it comes to dealing with problems, it is really hard to look at the positive
side of it. Financial distress on students has a lot of negative effects on the life of
students and even on the whole world. But there are also some positive effects of
financial distress on students. In this study, we found out that financial distress can
cause various health problems for students. This is mostly caused by the stress and
anxiety they could get from having a financial crisis. Anxiety, depression, and sleep
deprivation can lead to more serious problems if the financial distress to students
continues to be their problem. The findings of this study also revealed the negative
association between financial distress and the academic performance of the
students. This can lead them to poor performance inside the classroom. Results of
this study suggested that if their stomach is empty, it might be harder for them to
understand their lesson. Their stomachs should not be louder than their teacher's
voice.

At some point, financial distress can bring something positive. This study finds
out that financial distress allows students to be mindful of what they buy and how
they spend their whole allowance. Financial distress can also motivate students to
do their best and be hopeful for the future. It gives them the will to pursue something
despite all the challenges they might face along the way. The findings of this study
show that financial distress can also strengthen their heart and allow them to find the
courage and accept all the opportunities that were given to them. This study also
suggested that financial distress can teach them to be grateful for even just the little
things.

B. Conclusions

Based on all the related studies and analysis above, the researchers conclude
that:

1. Financial distress still exists, not only in our country but in different parts of the
world;

As the researchers dig deeper into the related studies about this topic, firstly,
the researchers conclude that financial distress is a problem, not just here in the
Philippines but in other parts of the world. In the Philippines, according to the data of
2021, 18.1 percent of the Filipino people are living below the national poverty line.
The researchers mentioned many other countries that suffered from financial
distress, including Africa which according to the research, 48% of a certain part of
the said country lives in poverty, some parts of Thailand which are in large debt due
to financial imbalances present in their country and market flow, and those other
countries that are listed as least developed ones. It is also one of the reasons why
organizations and unions exist. They wanted to properly address the issues of
financial distress that are also connected to the first goal of sustainable development
- no poverty.

2. Financial distress affects the government;

If the problem affects the majority of the people, that means that it will be a
problem for the government. In what sense? Since many people are affected by this
problem, the tendency is that people will demand help and actions from the
government. The majority of the people affected practiced rallies and other
campaigns that will attract the attention of the government. Here in the Philippines,
the government is doing its best to combat poverty and lessen the financial distress
caused by it. The government has different ways to do it:
 (1) Providing greater access to education wherein the country signed the
Universal Access to Quality Tertiary Education Act in 2017 with the aim to encourage
more young people to enroll and be engaged in higher education and also to
address and lessen the issue about education inequality. The cost of tuition for State
Universities and Colleges is subsidized by the government for the students as well
as other expenses such as school supplies. These also include private institutions
giving them the access to a tuition subsidy. This act mainly aims to decrease the
number of dropouts in higher education and promote the idea that higher education
is available to everyone.

(2) Providing greater access to healthcare where the government extends a

vast effort to improve the healthcare system. That is by the help of the former
President Duterte who signed the Universal Health Care Act last February 2019.
This act has a goal to provide greater access to the full spectrum of healthcare by
means of enrolling citizens in the National Insurance Program and granting health
coverage to all. Even though healthcare is not completely free, those in poverty will
have more access to health services. That is also the reason why the government
wanted to allocate more funds in the Philippine insurance organizations like
PhilHealth.

(3) Providing family aid where there is the implementation of Pantawid

Pamilyang Pilipino Program (4Ps) in 2007. This is a conditional cash transfer
program for impoverished households. The program aims to give households grants
provided that they meet certain requirements, which includes letting the children be
engaged in a school, letting all the members of the family to have regular health
check-ups and having parents or guardians attend Family Development Sessions.

Lastly, (4) the implementation of the Build Build Build wherein with support
from loans, obviously because our country needs help when it comes to fundings,
the Philippines implemented Build, Build, Build as a strategy to aid the country in
recovering from the COVID-19 pandemic and to lessen the problem with regards to
the financial distress experienced by the citizens.. The government expects that this
program is an effective way in combating the poverty and the effects of the
pandemic by improving the country’s infrastructure. With the estimated result that
this program will also stimulate the economy and create more jobs.Those are the
reasons why the researchers concluded that it is not only the citizens but also the
government being affected by financial distress.

3. Financial distress affects the citizens, in general;

Just as all the studies, researchers, articles, and all the data gathered wanted
to show, overall, the researchers concluded that financial distress affects the citizens
in general, not only those who are living below the national poverty line but also for
those people who live above the poverty line. How? Due to the financial distress
experienced by the majority of the people living in a country, there is also the
increase of crime rates like robbery and theft.

According to the data, the incidence of crime, violence, and terrorism in the
Philippines is moderately high. The nation was ranked among the lowest five
countries in the area for order and security in 2021. In addition, the Philippines had
one of the highest rates of incarceration per 100,000 people. Poorer neighborhoods
and places with larger inhabitants and higher unemployment rates had notably high
crime rates. Also, crimes against property, such as stealing and other fraudulent
schemes to get someone else's possessions and resources, are typically undertaken
due to great desire or hunger or for strictly economic reasons. Pickpockets, bag or
cell phone snatchers, and illegal recruiters are the most prevalent examples of this
type of crime. These pieces of information made the researchers conclude that not
only the people who live below the poverty line are affected but also those who are
not.

4. Financial distress affects the people, specifically the students in a negative

way;

Young adulthood is usually linked with an increased risk of mental health

disorders. It is also a big life shift that is usually accompanied by an increase in
financial responsibility. Roberts et al. (2000) identified a correlation between college
students' poor financial situations and their low mental and physical health. Andrews
and Wilding (2004) observed that financial pressures were connected with higher
levels of anxiety and depression among college students. Financial distress has also
been linked to academic performance. Furthermore, students who pondered leaving
their academic programs before completing them owing to financial constraints
reported poorer psychological wellbeing.

5. Financial distress is a subject that needs to be acknowledged and give

solutions to for it will affect the future generations.

Financial distress is a subject needed to be improved, transformed, or

changed for it will affect the future generations. Emotional and spiritual factors may
influence how different students deal with financial distress. This might be a
fascinating topic to investigate further in future studies. There is currently no theory
in the field of financial mental health. It is necessary to establish theory concerning
the emergence and treatment of financial problems.

The years spent in college are often regarded as some of the most
unforgettable. From high school life, it is entirely distinct. We are exposed to novel
ideas and discoveries during college that we were not previously exposed to. Some
people believe that living it up and partying hard are essential components of college
life. Others, meanwhile, need to take their careers seriously and devote themselves
to rigorous study in order to have a better future.

But for every one of us, the college years will always be a special period. Not
everyone has the good fortune to go to college. Various factors prevent some people
from having the opportunity to attend college. Perhaps they are unable to do so
because they lack the necessary financial resources, while other times they are
burdened by additional obligations. Those who have experienced college life often
yearn to go back in time and relive it all.

As we look differ to the things that college students experience we found out
that most of them stop pursuing their studies not because they are not mentally
prepared, pressured, nor they loss their motivations but we found out that financial
problem is one of the main cause why they experience distress while studying that
leads them into giving up their dreams. Truth to behold it is a sad reality where most
of college students are un able to reach their goals and up working instead of
studying. The anxiety and depression that a student feel whenever they encounter
such problem in monetary things is not a joke. It gives them a hard time dealing with
such shame because for them it is a humiliation on their part. In other students who
never experience this kind of problem think that it is silly for someone to give their
dreams but for those who are unfortunate it is everything.

Due to those problems that has relationship with monetary things, we decided
to look further and we found out that there’s a lot of causes that make or lead the
situation into worsen state. We learned that excessive risk taking, stresses in the
financial system, lower interest rates, and being knowledgeable in financial matters
are the one that effect the decision making and mindset of those students who
undergone in this kind of situation.

Indeed, college serves as an eye opener for all of us that we are lucky enough
because we have the privilege and means of studying. A lot of individuals do not
have the opportunity to take advantage of college life owing to their circumstances or
financial difficulties, thus those who can are fortunate. College Life means something
different to each individual. While some students spend their college years partying
with friends, others grow more career-conscious and put a lot of effort into their
studies. In any case, everyone appreciates their time in college and always longs to
go back to it after it is finished.

C. Recommendations

1. This research study suggests that each educational institution should develop a
program for the students that enables them to learn about financial literacy and cope
with financial distress.

2. This research study suggests that there should be adequate moral and financial
support coming from the parents of the students to avoid the distress that could
cause poor academic performance.

3. This study suggests that each institution should have a mandatory consultation
about the student's academic and financial status as well as their physical and
mental health.
4. This research study suggests that financial institutions must provide products and
services that cater to and suit the needs of the students to aid them throughout their
education.

5. This study encourages policymakers to amend programs and scholarships that

will help the students to sustain their educational needs and in return, students must
render service for the country after they graduate.

6. In high school and college, students should learn about personal funds and
financial planning. This can lower their risk of financial difficulty and assist them in
making wise financial decisions.

7. Students should have access to supportive services like food pantries, crisis
financial help, and mental health counseling at colleges and universities. These
services can assist students in managing their financial stress and maintaining their
academic progress

8. Financial stress is a big issue that can negatively affect students' academic
performance and general well-being. To raise money for research and support
initiatives that can assist students, it is critical to promote public awareness of this
issue.

9. Give students guidance in stress management. Students who take stress

management classes might learn relaxation methods and coping skills that can
reduce their financial burden.

10. Organize student support groups. Students can find a safe haven in support
groups to discuss their financial difficulties and make connections with other students
who are going through a similar situation.

11. Educate students and their families about the problem of financial difficulty. We
can urge students and their families to seek aid and support by raising awareness of
the problem.
VII. References

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Appendix