THE EFFECT OF FAMILY FINANCIAL SOCIALIZATION ONTHE ACADEMIC

PERFORMANCE OF COLLEGE STUDENTS

An Outline Proposal

Presented to the Faculty of the

College of Arts and Sciences Education

University of Mindanao

Davao City

In Partial Fulfillment of the Requirements

For the Degree of Bachelor of

Science in Social Work

April Lyn T. Girado

Edjemae B. Caube

Leny L. Laurencio
 March 2022

INTRODUCTION

The academic success of college students is impacted by family financial

socialization. Most students struggle to afford their tuition, which has an impact on how
well they perform academically. Every student experience a variety of issues throughout
their lives, including their family's inability to pay for their tuition. One of these concerns
is financial. Financial troubles pressure is a state in which tension related to money is
present. Anyone can experience financial troubles at any moment, especially in times of
crisis (Cayetano, 2019).

Moreover, the family financial situation has a significant impact on the academic
performance of students. Financial difficulties are a serious issue that must be
addressed because they can lead to a plethora of other issues, such as health issues
and poor academic performance. Students’ financial problems worsened as their debt
grew, they were unable to save money, and they believed that their weekly income was
insufficient to meet their basic needs. Students frequently struggle to pay and manage
their education, and most of them suffer from low income, poor financial literacy,
habitual spending, and heavy debt levels. (Yusuf 2020). According to (Corio, et al,
2017) Many college students especially those that live away from home, simultaneously
experience greater liberty to make day-to-day financial decisions.

This is backed up by Olufemioladebinu, Adediran, & Oyediran, W.O (2018)

explained that students who come from low socio-economic family status tend to show
a poor academic performance compared to students who come from a better family
background status. Furthermore, students from low-income or poor households may
have an impact on their academic achievement. However, Many studies have been
conducted in the past to demonstrate a link between financial difficulties and students'
academic achievement. Students in high and college use the financial management
strategies they've seen modeled in their families, as well as interacting with their
parents, to make financial decisions adjust to these new and growing financial realities,
and to help them in financial decision-making for managing the changing financial
demands associated with participation in educational programs.
 In addition, students typically depend on the ideas, mindsets, norms, practices,
information, and habits that were used in their family until they begin to develop new
attitudes, skills, and patterns of financial conduct (Curran, Parrott, Ahn, Serido, & Shim,
2018). As a result, financial socialization in the family could be used as an internalized
resource for dealing with the changing financial needs of school participation.
Jorgensen, Rappleyea, Schweichler, Fang, and Moran (2017) Thus, the College
students from U.S University, explicit and implicit is linked to financial attitudes,
knowledge, and capabilities. Clear family financial socialization is one method that
parents can assist their children feel less stressed in college while also improving their
academic success. We employed family financial socialization theory to enrich
multidimensional analysis of variance (MANOVA) and structural equation models to
evaluate this hypothesis (SEM).

According to the research, students from more wealthy backgrounds were more
likely to be taught to budget. Because of economic pressure, parent–child
teaching/training was substantially connected with observed parental–financial influence
and less problematic academic behaviors. Higher college grade point averages were
reached by students who felt more parent–financial influence and experienced fewer
effects of economic pressure. The more the wealthy the parents of the children, the
more they are financially intelligent to decide how to use their money. The relevance of
enhancing family support for financial learning is one of the findings of this study. (Sabri
2022). Therefore, many forms of family capital are looked at in this essay in the context
of parental participation in children's education in the Philippines. It comes to the
conclusion that parents from low-income homes often have less parental participation.
Parents are more involved in their children's education. According to the outcomes of
the multiple regression analysis, parental engagement was predicted by CCT
(Conditional Cash Transfer) membership, participation in extracurricular activities,
parent's educational level, and family size. According to the results, parents who have
more social and human capital are more likely to be concerned about their kids'
education. Jabar et al. al (2021).

Many studies have investigated many factors of students’ learning. Researchers

have looked at student stress management, social background, and the effects, but they
have not investigated the effects of financial problems among college students. In
moreover to obstacles in students’ mental health, there is a link between family financial
stress and academic success, particularly when it comes to student attrition. Research
indicates that students who experience higher levels of financial stress are more likely
to discontinue their schooling than their more financially secure peers. This could be
due to needing to work longer hours to pay bills or cover living expenses, limiting the
number of hours available for learning. This might be due, among other things, to
increased levels of stress or anxiety having a direct impact on academic performance.
The purpose of this study is to better understand the processes generating correlations
between these dimensions, given the significance of academics and well-being for
college students, as well as the high frequency of student financial stress. Recent
investigations on the effects of financial stress on academic performance and social
functioning among college students have yielded useful information on the subject.
(Moore 2022).

The research gap of the study is that many studies have explored at student stress
management, social background, and the effects, but they have not investigated the
effects of family financial socialization on the academic performance among college
students. In addition, many researchers have not investigate this study in the local
setting. The purpose of this study is to know how many students whose studies have
been affected due to family financial socialization problems. Hence, this study wants to
know the measures of those students that affect their academic performance due to
trouble paying tuition fees and obtaining basic necessities. Researchers we’re
encourage to conduct this study because they want to know how the financial
socialization affects the performance of college students. And how they manage to
handle the higher stress level as students encounter financial difficulties, researchers
come up with this study to be able to understand and manage these kinds of difficulties
that also affects the academic performance of students.

Hence, this study seeks to answer the following questions: (1) To know the level
of family Financial Socialization among students (2) To know the level of Academic
Performance among students; (3) To know if there is a significant relationship between
family financial socialization and academic performance among students; (4) to know if
there is a significant difference in the level of family financial among students when
analyzed by: sex, college.

This study is essential to college students who are related and connected to
family financial socialization that affects their academic performance. To gather data the
researchers will use survey methods through google form. It aims to provide information
and knowledge regarding the chosen topic from the participants and to find out how the
financial problem affects the academic performance of the college students. The benefit
of the study is the following: college students and the result of the study would provide
insights on how financial difficulties impact their academic performance. Hence, this
study would facilitate in generating alternatives to alleviate its adverse effect.
Professor/Teachers this study would help in developing teaching strategies to improve
students’ academic performance in spite of financial problems. Future Researchers, the
results of the study would provide them with a local background and description of this
research topic.

The FFST has two dimensions: financial socialization processes and financial
socialization. the results of socializing (Rea et al., 2019). The financial theory is the first
part of the theory. Two types of family financial socialization - family interactions – are
described by the socialization process. Purposive financial socialization (i.e., explicit
socialization) and relationships (i.e., implicit socialization) socializing) – and how
personal and familial factors affect the two types of socialization. The financial
socialization outcomes section of the theory is the second portion of the theory. Posits
that people' financial behavior and financial socialization are influenced by their family's
financial socialization. Financial well-being based on financial attitudes, knowledge, and
capabilities (the financial socialization consequences through intermediaries).

Moreover, parents, work, and high school financial education during adolescence
all predicted young adults' current financial learning, attitude, and behavior, according to
structural equation modeling, with parents' role being significantly greater than a
combination of work experience and high school finance education. The proposed
hierarchical financial socialization four-level model was also supported by the data,
suggesting that early financial socialization is linked to financial learning, which is linked
to financial attitudes, and then to financial conduct. The paper discusses how consumer
socialization and planned behavior theories were effectively coupled to show the
financial development of young adults. There are also some practical ramifications for
parents,educators, and kids. (Soyeon et.al 2009)

Independent Variable Dependent Variable

Family Financial Socialization

Figure 1. Conceptual
Stressing on Savings Framework showing the Variables of the Study
Openness on Family Finances
Instructing on Money Management Academic Performance
Expecting Financial Independence
Family Financial Distress
The figure 1: shows the two variables in the study. Family financial socialization is the
independent variable and academic performance is the dependent variable.

METHOD
Research Design

This study would make use of numbers and percentages to clarify and interpret the
conclusions. This quantitative study employs non-experimental research utilizing a
correlational research design to discover how closely the variables are related,
researchers utilize a correlational research design to measure two or more variables.

The correlational design will be use to facilitate the determination of the relationship
between Family Financial Socialization and the academic performance of college
students.

Research Participants

The study is conducted in Davao City. The participants of this study were college
students from a specific Higher Educational Institution (HEI), the survey participants are
all students from 1st year to 4th year level in all programs. Must be a college student
enrolled in the university, no age limit as long as it’s a college student who studied in the
university.

Research Instrument

The purpose of this study is to know if there's a significant difference in different

programs since the researchers will gather data in the university from 1st year to 4th
year level. Researchers will make use of survey method through google forms, an
online platform which is convenient to the participants. The survey will be filled out by all
the responders. The researchers will use the questionnaire and create open-ended
questions since they are simple to complete, save time, and keep respondents focused
on the topic. The questionnaires are composed of 5 factors with questions about family
financial socialization of college student, with a 5- Likert Scale ranging from 1- strongly
disagree to 5 - strongly disagree to specify the level of agreement of the respondents to
the statement.

The table above shows the adaptive questionnaires, this is an existing study entitled
Linking Family Financial Socialization with its Proximal and Distal Outcomes, this study
is somehow related in our study that tackle about family financial socialization of
students. We found questions that are appropriate in our study. The authors of this
adaptive questionnaires are Vosylis and Erentaite, (2019).
Table 1

The analysis and interpretation for the college student’s effects of family financial
socialization on the academic performance.

Range of Means Descriptive Level Interpretation

5 Strongly Agree 4.20 - 5.00 5 Very high

4 Agree 3.40 - 4.19 4 High

3 Not Sure 2.60 – 3.39 3 Moderate

2 Disagree 1.80 – 2.59 2 Low

1 Strongly Disagree 1.00 – 1.79 1 Very Low

Data Procedure

The researcher conducts the research in Davao City. Researchers were looking
for a questionnaire that they could use for the respondents. The survey questionnaire
must be ideally aligned with the study's challenges and goals. After obtaining a survey
questionnaire, the researcher requests that their questionnaire be validated by their
research adviser or coordinator for the purpose of conducting a study, in order to ensure
the validity and reliability of the questionnaire. After the validation of questionnaire then
proceeds to disseminating of questionnaires to the respondents The survey
questionnaire was created with Google Forms, and the link will be use to publish it on
social media for faster communication. The researchers inform the respondents about
the significance of their participation in the study. The researcher discusses specific
words with the respondents so that they can answer the questionnaires honestly and
with complete awareness of the study.

Statistical Treatment of Data

Mean. The mean was used in this study is to be able identify those students who
experienced financial problems that affects their academic performance.

T- test. Researchers use a t-test as a tool to identify those students who experienced
financial problems that affect their academic performance when analyzed according of
 their general average. And to know if there’s a significant difference depending on the
program of the student.

Pearson r. This statistical tool is used to determine the degree to which two variables
are related. As a result, researchers can use this data to identify students who have had
financial difficulties that have affected their academic performance.

Ethical Considerations

In conducting this online survey, we consider ethical standards. There is no

fabrication of data, everything goes through a proper procedure. As well as the privacy
and the confidentiality of the respondent’s personal information is secured and will not
be leaked in the study. We know and aware of the limitations of the respondents. We
respect the respondent’s identity. We also make sure that the consent must be given
before the questionnaire. We researchers make sure to explain well the goal of our
study so the respondents will participate sincerely.

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