CHAPTER I

INTRODUCTION

Background of the Study

Most students are experiencing financial problems. Especially when the obligations are

side to side. It's getting harder for the students to pay all of them when they moved to higher

years. There are a lot of factors why students are having problems financially. This also includes

their pro Financial problems has caused a lot of effect on the educational sector, the increase

exorbitant cost formal education constitute the major excuse most parents or guardians gives for

not educating or withdrawing their children and wards from school to learn a trade, they do not

bother to put or contribute their money in the education of their children. Some students for

financial reasons could not pay attention in the class, rather they would be thinking of how to get

money to buy their practical materials, handouts etc in most institutions today, we have many

ladies going into prostitution for financial purposes, since they do not have other means of

getting money. Likewise, the guys also engage themselves in cultism or armed robbery.

More so, some students whose studies are going smoothly suddenly fall victim of half

education because of their parents or guardians who go through financial crises or they could

even lose them and that could make them stop their education.

An issue of concern here is the fiscal crises and the inadequate public support being given

to the education sector, particularly at the primary level. Such as lack of instructional facilities.

most teacher find it difficult to teach a particular topic to enhance learning ability of students, at

times, governments are unable to pay salaries to the teachers on a regular basis and the funds for

running the school are not distributed on time. Consequently, teachers are not motivated, and this

had led to teachers absenting themselves in school which directly has a poor performance on the
students they teach, and gradually, it reduces the quality of teaching. This situation has supposed

have a negative effect on student’s performance and achievement. However, above many facts,

this has discouraged parents from wanting to send their children to acquire education at all

( Ebunoluwa,2013).

Statement of the Problem

The main objective of this study is to evaluate the impact of financial problems towards

the academic performance of students.

Specifically, it will answer the following questions:

1. What are the factors that affect the financial obligations of student?

2. What are the types of financial do the students pay in school?

3. What is the level of academic performance of students?

4. Is there a significant relationship between financial problems and academic performance

of students?

Hypothesis
There is a significant relationship between the financial problems and the academic

performance of students

Significance of the Study

This study is important to the following:

 Students. This study is to know the different financial problems of students that can

affect their academic performance.

  Teachers. The purpose of this study is for the teachers to understand the students when it

comes to their financial problem.

 Parents. This study also helps the parents to know the financial problems of their

children that can affect their academic performance.

 Community. This study aims to include the community that can help the students to find

opportunities to lessen their financial problems.

Scope and Delimitation

This study will involve 100 Senior High School students randomly selected of San

Nicolas National High School for the SY. 2017-2018.

The financial problem level of students will be based on the data obtained in the

questionnaire.

The study will focus on the relationships of financial problem of the students and their

academic performance.

This study will be limited to Senior High School students of San Nicolas National High

School. The academic performance of students will be limited to the midterm grades of students.

Definition of Terms

Financial Obligations- money that a person owes that is needed or obligated to pay.

Financial Problem- a situation where money worries are causing you stress.

Academic Performance- is the extent to which a student has achieved their short or long

term educational goals.

 CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDIES
Review of Related Literature

The Academic performance of a student can be analyzed by thinking of a student as a

firm having a production function in which the output is his or her academic performance,

measured in this study through the proxy college grade point average, and the inputs are

composed of the things that determine academic performance. Different firms (students) have

different characteristics that require a different mix of inputs in order to maximize output. This

means that if we assume that each firm maximizes output, we do not necessarily assume that

each firm will use available inputs in the same way. Some students perform better in morning

classes over evening classes; some students perform better through auditory learning techniques

as opposed to reading a textbook; some students‟ performance may even be related by where

they sit in a classroom. All of these decisions that students make are essentially ways in which

they actively select inputs into their own production process, inputs which elevate or deter

academic performance. The output of each class is a grade, and the average of several semesters‟

worth of outputs gives us a cumulative grade point average. Academic Performance doesn’t

always react to production function forces in a predictable manner. There is no way to correct for

every little detail that influences how a student performs in classroom or cumulatively after

having completed several courses during a four-year period. Despite this, classifications and

general relationships between the inputs and outputs of these production functions can be

identified in some cases. Within this theoretical construct, two important and universal inputs

into the production of academic performance are ability and effort. Ability can do nothing

without a trace of effort just as effort accomplishes nothing without some ability to act as
guidance. Ability also can be spread out among many skills other than academic ones just as

effort can be applied in areas other than academics even sometimes at the expense of academics.

These two inputs are in a sense analogous to capital and labor in that ability is much like human

capital and labor is exertion of effort. One could even consider a constant productivity variable

that captures the productivity of things other than inherent ability and effort.

(https://www.academia.edu/8502544/IMPACTS_OF_FINANCIAL_AIDS_ON_STUDENTS_A

CADEMIC_PERFORMANCE_PGDE_PROJECT_)

Financial Problems. Further studies involve loans, money and stress. There is more to

it. Some even takes advantages from students from such reason. Even so, there are so much ways

or steps to make it less stressful. First of all, we need to make money planning’s before buying

anything. Do some surveys. It is so that we would not buy anything out of the budgets. We

should know how to separates between things that we want or a must have. Due to culture shock,

students become more excited about the new university life that they tend to explore without any

boundaries. Secondly, buying online things should be prevented. Especially towards accessories

and clothing. This is so that we would not be trick to schemes for high prices for low quality

stocks. But it is alright if it is a book. They fail to do the management and flow of their money.

They do not have the skill to manage their own money. They do not ensure that the money well

spent and not misuse. These problems are common among students attempting to balanced small

budgets with living expenses. Some students are not matured enough to handle finances and they

overspend. Next, as a university student, they have to face many problems. One of the most

common problems is difficulty in paying college fees. Some of the students did not get any loan

or scholarship, so they have to depend on their parents. For those who came from poor

background they are forced to work to gain extra money to pay their fee. For students who are
not able to balance between work and academic, this will definitely affect their studies. It will

eventually cause their CGPA to drop and for more serious cases. Every college do opens

scholarships to student who achieved good pointers for every semester. Aside from that, almost

of students not yet to master managing financial. They were not aware on how to manage their

pocket money while they spent their for non-necessary things or overspend and living away from

their family causes of the financial problems among college student. Almost all college students

opt to take food at outside such as fast food (PIZZA HUT, KFC, MCD) and restaurants, because

food in their cafeteria not worth it. Food in cafeteria tend to be expensive and don’t have quality.

Beside that, student are not allowed to cook in their hostel, so they rather buy food from outside

even though it’s more expensive.Based on the conclusion of financial problem among student are

they have many problem by the student. They can’t take it slightly about this problems. They still

have to find solution so that they won’t regret in future. students also must take an example of

other effected students who had gone threw money problem as a lesson. In conclusion, students

must have ability to plan their money to avoid financial problems from occurring.

(https://hemilton96wic.wordpress.com/2015/04/07/financial-problem-among-student/)

According to Apollo Research Institute, (2012), more than 8 million adults are currently

enrolled in U.S. higher education institutions; total enrollment is projected to increase up to 20%

by 2016. However, National Center for Education Statistics (NCES) data indicate that less than

half of all students enrolled in a 4-year bachelor’s program will earn a degree. In one study

conducted by the NCES, only 28.1% of full-time and 5% of part-time nontraditional learners—

who comprise the majority of degree-seeking students—had earned an associate’s or bachelor’s

degree after 6 years of study. These high dropout rates demand a deeper examination of the

reasons why many college students fail to complete degree programs (Apollo Research Institute,
2012). In the Philippines, the dropout rates revealed an alarming 83.7 percent, meaning the

country is producing 2.13 million college dropouts annually. In this case, the Philippine

government must, in the next education generation or the next 14 years be able to reverse the

current situation from 80 percent of college students enrolled in private schools and 20 percent in

state universities and colleges (SUCs) to 20 percent, private colleges, and 80 percent SUCs

(Manila Bulletin, 2012). In Digos City, Sunday College Division of Cor Jesu College has been

existing for eight (8) years. Since then, it has been tremendously increasing its first year

population from 2005-2006. Most of the students are self-supporting and working in order to

pursue and earn a bachelor’s degree. Despite the socialized tuition fee offered by the school, it

has been observed that many students have dropped out in the next curriculum year. Records

from the registrar’s office show that 28.74% of the students have already dropped out in the

second semester of SY 2010-2011 and SY 2012-2013. Considering that the college has lower

tuition fee and entrance fee as compared to other neighboring colleges in the province of Davao

del Sur, students are expected to finish their bachelor’s degree, and thus, they should not drop

out of school. But still, a big number of students dropped out.

Review of Related Studies

Based on the findings of this study Impact of Financial Aids on Students Academic

Performance, by Ayanlola Abduljelil Taiwo, the following recommendations are made:

Educational institutions i.e. tertiary institutions need not relent in their effort to provide

sufficient/enough financial aids across the entire departments of the school, to enable easy access

and availability of funds to all students. Not necessarily based on merits/ G.P.A.

There should be a close cooperation between the tertiary institutions administrators and

the Student Union Government (SUG). This will create an enabling environment that would

allow for the institution directly understanding and knowing of students needs in school for

necessary financial provision.

Governments (Federal, State and Local), private bodies (Shell, Texaco, Mobil e.t.c.),

philanthropist etc. need to give a helping hand in providing adequate and substantial amounts of

financial aids to students annually to motivate and sustain students‟ academic progress. This

thus, will have positive impacts to our socio-economic developments.

The following suggestions are made for further research on student’s ‟academic

performance in tertiary institutions;

a. A study should be conducted on the impacts of expensive education on students‟

academic performance.

b. A study should be conducted on the comparative analysis of private and public

education on students‟ academic performance.

c. A study should be conducted on the impacts of age on students‟ academic

performance.
 d. A study/ survey should be conducted on the effects of gender on academic

performance of students‟.

Based on the findings of this Factors Affecting Students’ Decision to Drop Out of

School, by Hermogenes C. Orion, Jr, Erikka June D. Forosuelo, Jean M. Cavalida, the following

recommendations are made:

The research results revealed that 18-22 year old students were mostly single and

working. It was found out that the major reason why students drop out of school was the lack of

financial resources. Thus, the indicators namely policies and practices, student-teacher

relationship, financial resources and academic performance affected students’ decision to drop

out of school while the nature of school curriculum showed no significant difference by the

number of times the students dropped from SY 2010-2011 to SY 2012-2013. Age, civil status

and sources of tuition payment were contributory factors that led them to drop out of school.

However, no significant relationship was observed between students’ decision to drop out of

school in terms of policies and practices, studentteacher relationship, nature of the school

curriculum, financial resources, and academic performance and students’ dropout of school from

SY 2010-2011 to SY 2012-2013. Similarly, no significant relationship exists between students’

socio-demographic profile in terms of age, civil status and sources of tuition payment and

students’ decision to dropout of school from SY 2010-2011 to SY 2012-2013.

 CHAPTER III
METHODOLOGY

Research Design

A descriptive research design, specifically, a correlational research design will be

followed. The design was selected because it provides a bridge between the independent and

dependent variables which is the financial problems and academic performance respectively.

This was chosen to meet the objectives of the study, which is the impact of financial problems

towards the academic performance of students.

Locale of the Study

The study will be conducted at San Nicolas National High School of Senior High School

Department located at Brgy. 24, Sta. Monica, San Nicolas, Ilocos Norte.

Population and Sampling Procedure

The sample will be selected from the total population of Senior High School students of

San Nicolas National High School.

The sampling technique to be used will be the simple random sampling which falls under

probability sampling. The sample will include 100 Senior High School Students from Grade 11

and 12. Since it is the simple random sampling, all the students will be given the chance to be

chosen. The 100 students sampled will be the total number of subjects who will participate in the

research.

Research Instruments

A questionnaire will be used as a data collection instrument. Data will be collected with

the aid of questionnaires to evaluate the effect of financial problems to the students.
 The grades of students for the midterm of the first semester will be used to determine

their academic performance.

Data Gathering Procedure

For the effect of financial problems, questionnaires will be personally distributed by the

researchers for respondents to the complete. The data will be collected over a period of 2-3

weeks since there will be a utilization of questionnaires.

Moreover, the researchers will get the midterm grades of the respondents through their

class cards for the measurement of their academic performance. Since class cards will be

involved, the researchers will ask permission to the advisory teachers of the respondents

respectively.

Statistical Treatment of Data

The Frequency Distribution and Pearson's r will be used to statistically treat the data to be

gathered. The tool was chosen because the study focuses on the correlational research studies

which is the relationship between the financial problems and academic performance of students.

This statistical treatment can formulate the correlational relationship of it, so it will be the

statistical that should be use.

The Pearson's r is a measure of the linear correlation between two variables X and Y. It

has a value between +1 and −1, where 1 is total positive linear correlation, 0 is no linear

correlation, and −1 is total negative linear correlation.

 The formula of Pearson's correlation coefficient when applied to a population is

commonly represented by the Greek letter ρ (rho) and may be referred to as the

population correlation coefficient or the population Pearson correlation coefficient. The

formula for ρ is:

 CHAPTER IV

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter includes the presentation, analysis and interpretation of data which have

been drawn out from the questionnaires that were distributed to the respondents. This chapter

also contains the tabular presentation of data along with their corresponding data interpretations.

Table 1

Students’ Response on How Many Are Them in the Family

Choices Frequency Percentage

56 56%
3-5 members
40 40%
6-8 members
2 2%
9-12 members

Others 2 2%

TOTAL 100 100%

Table 1 show that 56% of the respondents have 3-5 members in their family respectively.

While 40% said that their families have 6-8 members. And 2% said that they are 9-12 members,

same as through with the percentage of the respondents with more or lesser family members than

the given choices. It shows that most of the students have 3-5 members in their family.
 Table 2

Students’ Response on How Much Do Their Parents Earn In a Month

Choices Frequency Percentage

66 66%
3500 – 5000 pesos

5000 – 8500 pesos 20 20%

14 14%
More than 8500 pesos
TOTAL 100 100%

This table shows how much do their parents earn in a month. 66% said that their parents

earn 3500-5000 pesos in a month, 20% said that the earnings of their parents ranges to 5000-

8500 pesos a month. While 14% of the respondents’ parents earns more than 8,500 in a month.

This reflects that most of the families of the students’ income range from 3500-5000 pesos a

month.
 Table 3

Students’ Response on How Much Is Their Allowance per Day

Choices Frequency Percentage

20 20%
30 – 50 pesos
66 66%
60 – 100 pesos
13 13%
100 – 150 pesos

1 1%
More than 150 pesos

TOTAL 100 100%

The above table shows how much is the allowance of students per day. There are 20% of

the students said that their allowance is 30-50 pesos. Also 66% said that their allowance is 60-

100 pesos. 13% said that they have 100-150 pesos allowance a day and 1% has more than 150

peso allowance. It shows that the majority of the students have 60-100 pesos allowance a day.
 Table 4

Students’ Response on How Much Money Is Being Left in Their Allowance

Choices Frequency Percentage

10-15 pesos 33 33%

20-30 pesos 47 47%

40 pesos and above 17 17%

3 3%
none
TOTAL 100 100%

Table 4 shows that 33% said that they have 10-15 pesos left in their allowance. 47% said

that 20-30 pesos is being left in there allowances. 17% said that 40 pesos and above is left in

there allowances. And 3% said that none of their allowance is left. An indication that most of the

money left in their allowances is 20-30 pesos.

 Table 5

Students Response on Do They Have Financial Problems in School

Choice Frequency Percentage

Yes 27 27%

No 28 28%

Maybe 45 45%

TOTAL 100 100%

This table shows that 27% said that they have financial problems in school. 28% said that

they don’t have financial problems in school. And 45% said that they maybe have financial

problems in school. The majority of the respondents said that they may have financial problems

in school.
 Table 6

Students’ Response on Did They Already Encounter Lack of Money Before

Choices Frequency Percentage

Yes 69 69%

No 8 8%

Maybe 23 23%

TOTAL 100 100%

Of the respondents, 69% said that they already encounter lack of money before. 8% said

that they don’t encounter lack of money before. And 23% of the respondents are unsure if they

encountered it before. It reflects that most of them did already encounter a lack of money before.
 Table 7

Students Response on Does Financial Problems Affect Their Academic Performances

Choices Frequency Percentage

Always 6 6%

Sometimes 71 71%

Not at all 23 23%

TOTAL 100 100%

Table 7 indicates that 6% of the respondent said that their financial problems always

affect their academic performance. And 71% said that sometimes their financial problems affect

their academic performance. And 23% responded that their academic performance is not affected

by their financial problems at all. The majority of the respondents said that their financial

obligations sometimes affect their academic performance.

 Table 8

Students’ Response on How Do They Feel When They Have No Money to Pay Their

Financial Obligations

Choices Frequency Percentage

Problematic 86 86%

I don’t care 9 9%

Others 5 5%

TOTAL 100 100%

This table shows that 86% said that they feel problematic when they have no money to

pay their financial obligations, 9% said that they don’t care when they have no money to pay

their financial obligations. 5% of the respondents answered they feel something else if they have

no money to pay their financial obligations. It indicates that the majority of the respondents feel

problematic when they have no money to pay their financial obligations.

 Table 9

Students’ Response on What Do They Do When They Have Limited Amount of Money

Choices Frequency Percentage

Part time job 12 12%

Save money 77 77%

Waiting for the allowance 10 10%

Debt money 1 1%

TOTAL 100 100%

This table shows that 12% of the respondents did a part time job when they have a

limited amount of money. 77% said that they save money when they have a limited amount of it.

10% of the respondents’ answered that they wait for their allowance when they have a limited

amount of money. 1% of the respondent answers he/she is debiting money when he/she has a

limited amount of it. It indicates that majority of the respondents are saving money when they

have a limited amount of it.

 Table 10

Students’ Response on In What Such Things Do They Spend Their Allowance Most of

the Time

Choices Frequency Percentage

Food 66 66%

Wants 6 6%

Financial Obligation 7 7%

Needs 20 20%

Others 1 1%

TOTAL 100 100%

This table shows that 66% of the respondents spend their allowance through food most of

the time. 6% said that they are spending it for their wants most of the time. 7% of the

respondents use their money most of the time to their financial obligations. 20% of the

respondents spend their money most of the time to their needs. 1% answer that they spend their

money to something else. . It reflects that they spend their money most of the time to food.
Table 11: The Average Grade of the Respondents and the Mean Score on the Effect of Financial
Problem

Number of Respondents Average Mean

1 88.60 1.5
2 87 1.7
3 86 1.8
4 70 1.6
5 70 1.8
6 70 1.3
7 87.40 1.8
8 92.70 1.1
9 70 2
10 87.40 1.4
11 90.10 1.2
12 70 2.2
13 84.88 2.5
14 70 1.6
15 86.44 1
16 86.66 1.9
17 86.55 1.8
18 70 2.2
19 86.75 2.1
20 84.87 1.2
21 88.11 1.7
22 86.25 1.7
23 84.77 1.9
24 87.55 1.5
25 70 2
26 85.22 1.7
27 88.13 1.4
28 71.62 2.2
29 88.37 1.8
30 85.60 1.9
31 69.13 2.2
32 70.87 2.4
33 72.75 2.9
34 72.37 1.8
35 89.13 1.6
36 84.75 1.5
37 86.12 1.3
38 88.50 1.8
39 83.50 2
40 89.63 1.3
41 72 1.4
42 89.67 1.1
43 87.78 1.5
44 89.56 1.3
45 84.66 1.9
46 83.89 1.6
47 86.44 1.7
48 86.44 1.5
49 84.56 1.7
50 87.89 1.5
51 88 1.6
52 86.11 1.7
53 87 1.6
54 80 2
55 78 1.7
56 87 1.7
57 82 1.1
58 76 2.1
59 76 1.1
60 79 1.5
61 80 1.5
62 81 1.6
63 81 1.9
64 90 1.2
65 82 1.5
66 75 1.8
67 81.3 2
68 72.9 1.7
69 82.5 1.7
70 82.2 2.1
71 89.1 1.3
72 88.7 1.8
73 81 2.1
74 83.4 2
75 87.3 1.4
76 90.5 1.6
77 81.8 1.5
78 88.9 2.1
79 83.7 1.6
80 84.3 1.6
81 85.1 1.4
82 90.2 1.2
83 90.7 1.2
84 85 2
85 91.9 1.8
86 90.6 1.6
87 92.3 1.6
 88 89.4 1.9
89 88.2 1.6
90 86.4 1.9
91 91.1 1.6
92 91.6 1.6
93 88.5 1.6
94 89.3 1.6
95 87 1.3
96 90.7 2
97 90.6 1.1
98 84.3 2.2
99 91.2 1.1
100 88.5 1.3

Thus, the correlation of Pearson r result is:

Average Mean
Average 1 -0.416108
Mean -0.41608 1

The Obtained value of Pearson r is -0.41. This means that it is a negative correlation. The

average grades of the respondents are not strongly correlated to the obtained mean result.

Therefore, the financial problems of students do not affect their academic performance.
 Chapter V

SUMMARY, CONCLUSION, and RECOMMENDATION

The Academic performance of a student can be analyzed by thinking of a student as a

firm having a production function in which the output is his or her academic performance,

measured in this study through the proxy college grade point average, and the inputs are

composed of the things that determine academic performance. Moreover, students can

experience different problems in school like their financial problems. Financial Problems in

further studies involve loans, money and stress. There is more to it. Some even takes advantages

from students from such reason. Even so, there are so much ways or steps to make it less

stressful. They fail to do the management and flow of their money. They do not have the skill to

manage their own money. They do not ensure that the money well spent and not misuse. These

problems are common among students attempting to balanced small budgets with living

expenses. Some students are not matured enough to handle finances and they overspend.

According to the data gathered, this study shows that the financial obligations of students

has no impact or do not have any effect on their academic performance in school. It is a good

indication that the students isn’t having a hard time in dealing with their financial obligations. It

is not the reason for them to lose focus on their academics. Hence giving them the motivation to

strive harder.

It is therefore recommended that financial obligations shouldn’t be the reason for a

student to lose hope and strive in doing good in school, rather, it should be one of their

inspirations for them to do their best to achieve a good performance in their academics. There are

a lot of ways to do in order to solve such problems.

 BIBLIOGRAPHY

https://www.academia.edu/8502544/IMPACTS_OF_FINANCIAL_AIDS_ON_STUDENTS_AC

ADEMIC_PERFORMANCE_PGDE_PROJECT_

https://hemilton96wic.wordpress.com/2015/04/07/financial-problem-among-student/

https://www.lifeline.org.au/get-help/topics/financial-problems

https://www.iwu.edu/economics/PPE16/PPE2008-3.pdf

https://www.timeshighereducation.com/news/student-money-problems-affect-

performance/98360.article

Apollo Research Institute, (2012)

Johnson, 1963-64

US Census Bureau, 2006

Pindyck, 2005