CHAPTER ||

Review of Related Literature

There are Related Literature and Related Studies cited in this research paper to back up the information
gathered and presented. Related Literature and studies serve as our proof that there has been an
attempt and successful experimentation conducted.

Financial Status and Academic Performance

The financial status or the social economic status is most commonly determine by combining
parent’s educational level, occupational status and the income level (Jeynes, 2012; McMillan & Western,
2015). In most of the studies done on academic performance of students, it is not surprising that
financial status is one of the major factor studied while predicting academic performance. It is believe
that low financial status negatively affects academic achievement because lesser financial status
prevents access to vital resources and creates additional stress at home (Eamon 2015; Jeynes, 2012).
Graetz (2015) carried out a study on economic status in education research and policy found that social
economic background remains one of the major sources of educational inequality and adds that one’s
educational success depends very strongly on the financial status of the parents.

Relationship between Financial Problems and Academic Performance

The relationship between financial problems and academic performance among students is best
described based on financial assistance received late, lack of financial resources,and lack of financial
management. According to Norazlan, N., et. al (2020) Having a lack of financial resources leads to
financial problems, thus affecting students academic performance. Daud et.al (2018) stated that some
students do not have other financial resources because they do not want to burden themselves by
owing others and be in debt. With the lack of financial resources to overcome financial problems, some
students have to reduce their study hours to opt for alternative financial resources by working part-
time for long hours or having multiple jobs which could eventually impact their academic performance.
Nnanami, C. et. al (2014) stated in their study that finance is the avenue through which students‘ bills
are paid. If their finances are not adequate,the situation may tend to affect and limit their academic
performance adversely. If, on the other hand, their financial needs are met adequately, probably their
performance may be enhanced.
Parents Educational Level, Financial Status and Income

Zotti and Contini (2022) along with Mensah (2013) stated in their study that parental educational
level,occupation as well as income levels had impact on the academic performance of students and it
have been able to influence students' dropout probability.

As stated in the study of Dang and Bulus (2015) The choice of school, learning environment is determine
by the financial status of such individual’s parents. Many students have no choice on the type of school
they desire to enroll, since their parent cannot afford such school demand. Pursuant to the study of
Mortimer, J. et. al (2014) family economic hardships are reflected most strongly in the achievement
orientations of children whose parents have the more unstable work histories, the more limited prior
aspirations,and the more restricted educations. Perhaps differences and fluctuations in economic well-
being in these families are more consequential because the parents do not have the human capital, the
cultural and social capital, or the child rearing values and practices that would enable them to protect
their children’s achievement orientations from the detrimental effects of economic hardship. According
to Gobena (2018) It is not out of place to imagine that parental socio–economic status can have
possible effects on the academic achievement of children in school. Families’ socio-economic status in
one way or another affects students’ academic achievement at any level of education.

Local Studies

According to Esguerra (2019) the income of parents is positively associated with the student's
academic performance. It is found that if the parents have higher incomes, it is more likely for the
student to show good performance in studies.It is also shown in the study that the parent's education is
also a major factor in a student's academic achievement. Based on the results, the mother's education is
much more influential for the student's academic performance.The involvement in co-curricular
activities is also positively related to student's academic achievement wherein these activities are
helpful in getting achievements on studies.

Mirasol, M. et. al., (2020) Stated in their study that financial aspect was the top problem faced by the
students in choosing their preferred courses in college because some affordable courses suit the abilities
and skills of the students. However, students also want some expensive courses because those courses
are suitable for their skills, but they cannot afford the tuition fee. Grade 12 students greatly considered
the financial aspect in choosing preferred courses.

Synthesis of the Study

 ( Norazlan, N. et. al., 2020, Daud, et. al., 2018, Nnanami, C. et. al., 2014 ) Stated in their studies that
with the lack of financial resources to overcome financial problems, some students opt to find
alternative financial resources. If their finances are adequate situation may tend to affect and limit their
school performance.

( Zotti and Continue, 2022., Agustina, M. 2013, Dang and Balus, 2015., Mortimer, J. et. al., 2014)
According to their studies Parental level of education, Income and Financial Status had an impact on
students academic performance. Also the choice of school is determine by the financial status of such
individuals parents.

Research Gap

Although the local and international review of related literature and studies are all about the effects
and how financial problems limits students academic performance. This study focuses mainly on the
effects of financial problems to the Grade 12 students of Baao National High School.

Theoritical Framework

System’s Theory Input-Output Model (1956) by Ludwig Von Bertalanffy states that finance is a broad
term that describes two related activities: the study how money is managed and the actual process of
acquiring needed funds. It relates the interaction of individual components of the structure to the
functioning of the structure as a whole.

Necessity of Financial Theory Education (1988) by McDonald. It is almost a tautology to start a new
discussion about the necessity of theory instruction. That is because the answer to why we teach and
learn theories must be general in that it applies to all areas of study - physics, sociolog, engineering,
finance, and so forth. Theories are an essential part of educatio. Winds of change may be sweeping the
globe right now. But our belief in this fundamental education idea may never change. If we just feed
students guidelines to cope with routine problems, we are giving vocational training, not real education.

Human Capital Theory (1962) by Gary S. Becker focuses about the importance on education, health
care and training. Investment in education, medical care, and training courses are investment that can
benefit and raise earnings, improve health and good habits of people for a lifetime.
 Law of Effect by Edward Thorndike stated that any behavior that is followed by pleasant
consequences is likely to be repeated, and any behavior followed by unpleasant consequences is likely
to be stopped.

SYSTEM'S THEORY INPUT- OUTPUT NECESSITY OF FINANCIAL THEORY

MODEL EDUCATION

HOW FINANCIAL PROBLEMS LIMITS SCHOOL

PERFORMANCE OF GRADE 12 STUDENTS OF BNHS

HUMAN CAPITAL THEORY LAW OF EFFECT

 Figure 1: Theoretical Paradigm

Conceptual Framework

INPUT

• Profile of the Respondents

a. Age

b. Grade Level

c. Strand

PROCESS

• Contains the distribution of survey questionnaires and consists data analysis and interpretational of
the data statistical treatment.

OUTPUT

• Findings

• Summary

• Recommendations

• Conclusions
 PROCESS
INPUT OUTPUT
• Construction and
• Profile of the Respondents validation of the • Findings
questionnaires
a. Age • Summary
• Data Gathering
b. Grade Level • Recommendations
• Analysis and
c. Strand • Conclusions
Interpretation of Data
FIGURE 2: Conceptual Paradigm
DEFINITION OF TERMS

Financial Problems - a situation in which you are not able to meet your bills on time or afford necessary
basic needs, operationally, this is the main problem of this study to be investigate.

Limits - a point or level beyond which something does not or may not extend or pass,this is how the
Grade 12 students can't afford to join a school activities due to lack of financial support.

School Performance - is the outcome of education, in this study it is the overall performance of Grade 12
Students

Students -A person who studies a particular academic subject, in this study, this is the respondents or
key-informants where the information collected.

Financial Status - The state and stability of an individual's personal finances and financial affairs, one of
the factors which limits the students performance.
 END NOTES

Jeynes, Rumana. Hadrami, Al Ahmed. Hossain, Sharmin. (2012) Factors influencing poor academic
performance among urban university students in Bangladesh Retrieved from: International Journal of
Evaluation and Research in Education (IJERE)

McMillan, James. Western, Jodi. (2015) FINANCIAL RESOURCES AND JUNIOR SECONDARY SCHOOL
STUDENTS' ACADEMIC PERFORMANCE IN CROSS RIVER STATE, NIGERIA Retrieved from: Global Journal
of Educational Research VOL 20, 2015::81-88

Eamon, Gemechu A. (2015) Family Socio-economic Status Effect on Students’ Academic Achievement at
College of Education and Behavioral Sciences, Haramaya University, Eastern Ethiopia Retrieved from:
Journal of Teacher Education and Educators Volume 7, Number 3, 2015, 207-222

Graetz, Augustina. (2015) The impact of socio-economic factors on students’ academic performance: A
case study of Saint Monica’s College of Education, Mampong-Ashanti

Retrieved from:  University of Cape Coast Institutional Repository

Norazlan, Norhidayah. Yusuf, Zarina. Al- Majdhoub, Fatima. (2020) THE-FINANCIAL-PROBLEMS-AND-

ACADEMIC-PERFORMANCE-AMONG-PUBLIC-UNIVERSITY-STUDENTS-IN-MALAYSIA . Retrieved from:
https://researchgate.net

Daud, N., Norwani, N. M., & Yusof, R. (2018). Students Financial Problems in Higher Education
Institutions.

Retrieved from: International Journal of Academic Research in Business and Social Sciences, 8(10),
1558–1565.

Nnanami, Chibuike. Dikko, H. G. Kinta, L M. (2014) Impact of Students’ Financial Strength on their
Academic Performance: Kaduna Polytechnic Experience. Retrieved from: researchgate. net

Contini, Dalit. Zotti, Roberto. (2022) Do financial conditions play a role in university dropout? New
evidence from administrative data Retrieved from: https://library.oapen.org

Mensah, Augustina. (2013) The impact of socio-economic factors on students’ academic performance: A
case study of Saint Monica’s College of Education, Mampong-Ashanti

Retrieved from:  University of Cape Coast Institutional Repository

http://hdl.handle.net/123456789/2745
Dang, Istifanus Emmanuel. Bulus, E G. (2015) THE IMPACT OF FINANCE ON THE ACADEMIC
PERFORMANCE OF SECONDARY SCHOOL STUDENTS IN AKWANGA LOCAL GOVERNMENT OF
NASSARAWA STATE, NIGERIA

Retrieved from: https://researchgate.net

Mortimer, Jeylan T. Zhang, Frank Lei. Hussemann, Jeanette. Wu, Chen- Yu. (2014)

Parental Economic Hardship and Children's Achievement Orientations

Retrieved from: University of Minnesota

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4358300/#__ffn_sectitle

Esguerra, Els Ginel Anne P. (2019)Factors Affecting the Academic Performance of the Grade 12 Students
of San Pablo City Senior High School -Stand Alone for the Academic Year 2018-2019

Retrieved from: Vol. 3 No. 2O (2019): Ascendens Asia Journal of Multidisciplinary Research
AbstractsDang, Istifanus Emmanuel. Bulus, E G. (2015) THE IMPACT OF FINANCE ON THE ACADEMIC
PERFORMANCE OF SECONDARY SCHOOL STUDENTS IN AKWANGA LOCAL GOVERNMENT OF
NASSARAWA STATE, NIGERIA

Retrieved from: https://researchgate.net

Mirasol, Midel. Tepait, Queen Ahyen. Sarao, Rica. Olaer, Monica. Ebrado, Sheila. Cajes, Nicole Christine.
(2020) Factors Affecting Preferred College Courses of Grade 12 HUMSS Strand Students at Bestlink
College of the Philippines, S.Y. 2019–2020

Retrieved from: Vol. 2 No. 1 (2020): Ascendens Asia Singapore – Bestlink College of the Philippines
Journal of Multidisciplinary Research Abstracts, Vol.2, No1, March 2020