The Impact of Financial Difficulties to the Academic Performance

of Senior High School Students at Saint Joseph Institute of Technology

A Research Paper Presented to the Senior High School Main Department

of Saint Joseph Institute of Technology
Butuan City, Philippines

In partial fulfillment of the requirements

for the subject RESEARCH PROJECT

Michelle Antiporda
Ashley Awali
Sheen Mae Bada
Angelito Barite
Shimei Bernaldez
Reymart Ebaya
Shelien Kipkipan
Kent Jirome Magallanes
Kristel Joy Rosete

April 2024
 CHAPTER 1

THE PROBLEM AND ITS SETTING

INTRODUCTION

The study explores the relationship between financial constraints and academic
performance among Senior High School students at SJIT. It aims to investigate how
financial difficulties affect the educational outcomes of students in this specific
context. This research seeks to contribute valuable insights into addressing the
challenges faced by students dealing with financial constraints and the impact on
their academic success. With rising educational costs and economic challenges faced
by many families, understanding how financial constraints affect student learning
outcomes is crucial for designing effective interventions and support systems.

Schools and institutions like SJIT may implement intervention programs

aimed at addressing financial difficulties faced by students and mitigating their
impact on academic achievement. These programs may include financial aid,
scholarships, mentorship programs, or workshops on financial literacy. Providing
financial aid, scholarships, and mentorship programs, or guidance counseling
specifically tailored to students facing financial difficulties can offer valuable support
and resources to help them navigate academic challenges and achieve success.
Several challenges have surfaced in the study of "The Impact of Financial Difficulties
on the Academic Performance of Senior High School Students at SJIT." These
challenges may include, first, access to resources. Financially disadvantaged students
may lack access to essential resources such as textbooks, technology, or academic
materials, hindering their ability to fully engage in their studies and perform at their
best. Second is stress and anxiety. Financial difficulties can lead to increased stress
and anxiety among students, affecting their mental health and well-being. This can,
in turn, impact their concentration, motivation, and overall academic
performance.Third is limited opportunities. Students facing financial constraints may
have fewer opportunities for enrichment activities, extracurriculars, or educational
experiences outside the classroom. This can hinder their holistic development and
limit their exposure to diverse learning opportunities. The fourth challenge is
dropout rates. Financial pressures may contribute to higher dropout rates among
senior high school students, as some students may be forced to prioritize
employment or other obligations over their education in order to support
themselves or their families financially. Fifth is academic achievement gaps. Financial
disparities among students can exacerbate existing academic achievement gaps,
with financially disadvantaged students often facing greater academic challenges
and achieving lower academic outcomes compared to their peers from more affluent
backgrounds. Lastly, barriers to post-secondary education. Financial difficulties can
pose significant barriers to accessing post-secondary education for senior high school
students, limiting their opportunities for future advancement and socio-economic
mobility. Addressing these challenges requires a multifaceted approach involving
targeted support programs, policy interventions, and community partnerships to
ensure that all students, regardless of their financial circumstances, have equal
opportunities to succeed academically.

According to Halliday Wynes (Wynes, 2014) a student's financial position will

affect their commitment in learning, which will affect their academic
performance.Moreover, due to inflation and the trade war, it has caused most of the
country is facing a recession and increases the number of students facing financial
problems. In today's educational landscape, the correlation between financial
constraints and academic achievement among students has become a focal point of
research. By investigating the specific challenges faced by students dealing with
financial difficulties, the study can provide valuable insights for informing
educational policies, programs, and practices aimed at addressing these challenges
effectively.This can help ensure that resources are allocated strategically and
interventions are tailored to meet the unique needs of students at SJIT. By
conducting the study, stakeholders such as school administrators, educators,
policymakers, and community members, can gain a deeper understanding of the
challenges faced by students and collaborate to develop solutions that promote
student success and well-being. Overall, conducting the study on the impact of
financial difficulties on academic performance at SJIT aligns with the institution's
commitment to academic excellence, equity, and student success. This ultimately
contributes to advancing knowledge and enhancing educational outcomes for all
students.
Review Related Literature

In today's educational scene, the connection between financial challenges

and academic success is a source of increasing concern. With the rising cost of
education and increased financial constraints on students and their families,
understanding the consequences of financial stress on academic attainment has
become critical. The purpose of this study aims to examine existing research on the
correlation between financial difficulties and academic achievement and to
illuminate the various factors that influence this relationship.
The research study by Alegre et al.al (2020) entitled " The Effect of Having
Financial Problems Towards The Academic Performance of Senior High School
Students Evening Class of Assumption College of Davao" focused on the effect of
financial difficulties on the academic performance of senior high school students.
According to Alegre et.al., at this time some students are currently facing challenges
with school expenses, while others are struggling due to a lack of school equipment.
Some parents cannot afford to provide education for their children due to a disability
or financial constraints. This qualitative study examined and explained the impact of
experiencing a financial crisis on the academic performance of senior high school
students at Assumption College of Davao. The researchers conducted a
questionnaire to the senior high school students. The findings revealed that the
primary reason students struggle with their finances is due to a lack of skills in
managing them.
Financial education has gained prominence on the global policy agenda,
according to Beata Swiecka et al.'s theory and survey book "Financial Literacy and
Financial Education" (2019). The study focused on financial literacy and education.
Financial education is widely recognized as a crucial element in empowering
individuals and ensuring the stability of the financial system (OECD 2017). The OECD
defines financial education as the process by which consumers and investors gain a
better understanding of financial goods, concepts, and risks, allowing them to make
more informed decisions and improve their financial well-being (OECD,
2016b).Lusardi and Mitchell (2014) emphasized the importance of financial
education in improving financial knowledge and awareness, leading to better
financial decision-making.
Moreover, research has shown that financial education can positively impact
consumer behavior and financial well-being (PISA, 2017). In addition to financial
protection, inclusion, and regulation, financial education is considered essential since
it plays a key role in improving individual decision-making as well as general financial
stability and development. Financial education aims to equip individuals with the
necessary knowledge and skills to understand and navigate financial products and
risks, empowering them to make informed financial choices. This is particularly
important in addressing the global challenge of low levels of financial literacy and
promoting financial inclusion (OECD, 2015).
Furthermore, Lusardi and Mitchell discovered that financial education
enhances consumer financial well-being by promoting desirable financial conduct,
increasing financial literacy, and ultimately increasing financial well-being. Based on
this, to fully appreciate the benefits of financial education for households, financial
companies, and the economy more broadly, it is important to distinguish between
high-quality and poor realities. In addition to providing people with information and
skills, good financial education also supports greater economic stability and
resilience.

Apart from the extensive information on the topic provided by the current
literature, it should be recognized that the issue of financial hardships in the
educational setting has important practical implications. Through targeted
interventions and support systems, such as student financial aid programs,
scholarships, and financial literacy seminars, educational institutions can collaborate
with students to overcome financial barriers and ensure their academic
success.Moreover, collaboration between academic institutions, policymakers, and
the financial sector could contribute to the development and delivery of successful
financial education programs that seek to prepare students to tackle financial
challenges while in school. Investment in financial education also correlates with
better educational outcomes. This would help us to create an educational
environment that is inclusive and fair, providing all students an opportunity to
achieve their full potential academically.
Statement of the Problem

This study aims to examine the impact of financial difficulties on the

academic performance of Senior High School Students of Saint Joseph Institute of
Technology.

Specifically, this study seeks to answer the following questions:

1. What specific financial challenges do senior high school students at SJIT face that
impact their academic performance?

2. How do financial difficulties affect the academic performance of senior high school
students at SJIT?

3. To what extent do financial constraints influence the attendance, participation,

and engagement of senior high school students at SJIT?

4. What coping mechanisms do senior high school students at SJIT use to address
financial difficulties?

Significance of the Study

The researchers believes that the results of the study will be a great benefit
to the following:

Family/ Parents: The study can also benefit parents/family by raising awareness of
the financial stress that students experience in their senior high school life.

Future Researcher : The conducted study will further open doors for future
researchers to refine and expand studies in relation to financial difficulties of
students. This may serve as a source of information about how some students have
financial difficulties of academic performance.

School administrators and Government of DepEd: it will help them decide to

decrease expenses for the students.

Students : This study is for students how financial problems affect their academic
performance.
Definitions of Terms

This following terms are defined to establish a common understanding in this

study.

Academic: This refers to a student's performance, accomplishments, and results in

their academic endeavors, including grades, test scores, attendance, and general
scholastic engagement.

Financial: This refers to any financial factors that have an impact on students, such as
income, costs, savings, loans, debts, and availability of financial resources like grants,
scholarships, or parental financial assistance.

Inflation: This relates to the overall upward trend in prices of products and services
over time, which can have an effect on people's and families' purchasing power,
especially those from lower-income backgrounds.

Low-income backgrounds: This term refers to the socioeconomic standing of

pupils who have little financial resources, which is frequently connected to elements
like parental education level, household income, and access to employment
opportunities.

Money: This refers to the cash, assets, and financial resources that students and
their families have at their disposal. These include earnings, allowances, financial aid,
and any other type of financial support or expense related to their academic
endeavors.