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 result of this study served as a valuable source of information in

determining the impact of financial difficulties to the academic performance of
senior high school students at Saint Joseph Institute of Technology. This will
benefit the Family/Parents, School administrators/ Government DepEd,
Students and Future Researcher.

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.

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.

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.
Definitions of Terms

This following technical terms are defined conceptually and operationally

in order to have a common understanding of tis 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.