THE EFFECT OF FINANCIAL PROBLEMS ON THE ACADEMIC PERFORMANCE OF

MAGSAYSAY COLLEGE STUDENTS

A PHILOSOPHICAL CASE STUDY

Presented to
THE GEC FACULTY OG MAGSAYSAY COLLEGE

JHONE REY M. ALCANTARA

STUDENT
BS-ENTREPRENEURSHIP BLOCK- 1A

SEPTEMBE 18 2023
 TABLE OF CONTENT

Title page…………………………………………………………………... …….......i

Introduction………………………………………………………………………… …1
Discussion …………………………………………………………………………….2-6
Summary and Conclusion…………………………………………………………...7
Reference …………………………………………………………………………….8

ii
INTRODUCTION

Some pupils are currently dealing with school fees, and another issue for children

is a shortage of school equipment. They added two more years for senior high school,

and students who want to work but are under the age of 18 cannot work because they

are under the age of 18, and their parents cannot afford to educate their child owing to a

handicap on financial support. Other kids will be less educated if they do not receive

financial assistance. Nowadays, it is challenging to earn money for school supplies,

food, and other necessities.

Over the last two decades, a large anthropological literature on money, modern

finance, and financial institutions has evolved, with a focus on their impact on the

societies normally examined by anthropologists.

The Beneficiary of My Research

Student- a person who is formally engaged in learning, particularly one who is enrolled

in a school or college.

Teachers- a person who instructs or teaches as a vocation.

Parents - a mother or father of a person or an animal, or someone who takes care of a person

in the same way that a parent does.

Future research -This work will aid future scholars because it contributes to the expansion of

knowledge on this area. This can be used as a companion study for future research on the

same issu
 Discussion

Financial problem is a situation where money worries are causing stress. However,

college student has been facing financial problem lately and this problem had become a major

problem for college student. Financial problem faced by student are known as they do not have

enough money for their daily expenses, where money worries is causing them to stress. After

that, financial problems will bring impact to both mental and physical health. According to

Halliday Wynes, (2014), a student financial position will affect their commitment in learning

which will affect their academic performance. Moreover, due to inflation and trade war, it had

made most of the country facing recession and increases the cases of student facing financial

problem. Therefore, we have conducted research to show the impact to college students’

academic performance if they don’t take time to manage their money and ways to solve it.

Money is crucial in today's world, but the problem is that some individuals have a

lot of it, while most people have less than enough. Most college students, in particular,

are in financial difficulty because they lack expertise about how to manage their money.

When college students face a financial crisis, they will be stressed and unable to

concentrate on the professor, which will have an impact on their academic performance,

such as grades and results, and will have an impact on their future when looking for

jobs.

The most common symptoms you will notice when facing financial problem is you are

spending more than you’re earning. The cost of living as a college student are high whereby,

they usually spend more than how much they earn, especially for those who living away from

family and being independence for the first time. They do not know how to manage their budget

and they will use their money without any awareness and facing problem such as not enough

2
money to buy what they need. For example, they bought luxury phone such as iPhone for

RM6,000 while they only earn RM2,000 monthly.

When a college student does not have enough money to pay, they will utilize their

parent's credit card to cover their bills. For example, suppose you use a credit card to buy

groceries or other foods. Using a credit card to pay for their costs is convenient, but it adds debt

to their bank account, and credit card interest rates are very high. Furthermore, it may trap

individuals in a loop of repaying one debt with another, such as repaying a credit card loan with

another credit card.

In the society today, it is normal for a college student to live without saving any money.

But, they did not aware that accidents could happen at any time. When accident happens, they

could not pay for the emergency expenses since they do not have any money inside their

saving account, and they have to pay with their credit cards and adding debt to their account.

(Maureen, 2019), mentioned that the first reason people get into debt is because they do not

have a saving accounts.

When a college student is having an ongoing financial stress, it will affect their personal

life such as sleep problems where they worry about their financial statue and could not fall into

sleep. Financial problem will also affect college student mental health such as facing depression

and anxiety. According to (Thomas Richardson, 2013), there is a strong relationship between

financial problem and depression. According to Elliot and Lewis (2010), the study of debt

impacts on financial well-being research and policy implications generally focuses on revisiting

the knowledge accumulated when it comes to the effect of student debt on the financial

outcome of students entering tertiary education, regardless of whether a degree flourishes or

thrives or leaves college inappropriately. This simply means that pupils who must borrow money

to meet the school's obligations have a higher disadvantage than students in the same year

level who can afford to pay the school bills.

 Financial problems are commonly faced by everyone, especially for those who

come from underprivileged or low-income families. According to Asri, Abu Bakar, Laili

and Saad (2017), stated that although students do not have a commitment on paying

3
monthly debt instalments like other households, however, their status as students

requires them to pay their education fees, rents and other essentials, by which they

received the financial from loans, scholarships or their families. In addition, students

who come from underprivileged or low-income families might affect their academic

performance. Many past research has been done to show a relationship between

financial problems and the students’ academic performance. According to

Olufemioladebinu, Adediran and Oyediran (2018), the parent’s income or social status

has positively affected the students' academic performance in an examination. This can

be further supported by a previous study by Olufemioladebinu et al. (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. To add, according to Asri et al. (2017) stated that students who

come from a high economic status are able to have a stimulating learning environment.

Hence it is possible for those who have a better family financial background to excel

well and achieve a better academic performance compared to those students who come

from low-income families. According to Nnamani, Dikko and Kinta (2014), they

mentioned that financial problems of the students extremely contribute to the student’s

low academic performance, which therefore leads to the low quality of education in

many ways. As stated in this early literature, financial problems lead to the financial

stress which will eventually influence the low academic performance of the students. A
study from Widener (2017), they mentioned that financial stress has been consistently

related to the students' low academic performance. According to a study by Asri et al.

(2017), mentioned that there are many factors that contribute to students’ academic

performance. However, family socio-economic are the significant factors as it involves

financial management which will provide motivation for the students to either have

passion or not to achieve in their academics.

Stated that many Americans are affected by the economic downfall. Even

college students often worry about their finances, which then this financial worry may

affect their academic performance as the students are dividing their attention between

financial and academic. Hence this can be stated that the family's finances are

motivation and encouragement for the students to have a good academic performance.

Asri et al. (2017) added that when a highly motivated student encounters a financial

problem, the student will turn the problem into motivation for them to achieve success.

Therefore, whatever problems that come, which include financial problems, should not

hinder the students if they want to succeed academically. According to Widener (2017)

mentioned that there are two ways of how a financial problem could affect the students’

academic performance which are health problems and having to work part-time.

Widener (2017) further added that financial problems lead to health problems such as

anxiety which then led to negative behaviors’ such as addiction to alcohol or

uncontrolled shopping, hence making the students lose their focus on their academics.

When students face financial problems to cope with the high cost of living, they are

more exposed and vulnerable to health problems. Therefore, here comes the issue of
whether students who have financial problems can handle the stress of managing their

daily lives and

finance. According to Asri et al. (2017) stated that poor financial management could

cause an individual unable to control the stress and thus it affects their daily life such as

health by making them depressed and becoming physically.

Financial knowledge is critical for undergraduate students. The rising cost of

living in developing countries is the key to5financially equip undergraduate students in

financial decision making antiliteracy, which may be described as a grasp of how to

earn, manage, and invest. Money has a significant impact on students' capacity to make

informed decisions regarding which courses to choose.

What college to attend, what to study, how to pay for college, and how to handle student

loan debt after graduation are all important considerations. Students who are financially

literate are more prepared than those who are not to make good decisions about which

colleges to attend, what degrees to pursue, and how to pay for higher education. The

decisions students make in school frequently have a direct impact on their financial

destiny.
Summary and Conclusion

For most college students, getting6into college is one of the happiest days of their

lives. College entails leaving your parents' home and establishing your own

independent. Some pupils are even given the opportunity to relocate to a different city

or town. Every student anticipates having a good time in college, making new friends

and creating new memories. However, for other students, the euphoria is fleeting.

College may turn out to be quite different than they anticipated. A few weeks into

college, several issues may occur that will make your life in college unpleasant and

uncomfortable.

According to the preceding remark, students encounter numerous challenges.

They can't take it lightly when it comes to these issues. They must still find a solution so

that they will not be sorry in the future. Students must also learn from the experiences of

other students who have faced financial difficulties. Finally, students must be able to

plan their expenditures in order to avoid financial troubles.

Reference 7
Elliot, Nicholas B., et al. "The devil is in the dispersers: predictions of landscape connectivity
change with demography." Journal of Applied Ecology 51.5 (2014): 1169-1178.
Norazlan, Nurhidayah, Sarina Yusuf, and F. A. T. I. M. A. Mohamed Hamoud Al-Majdhoub. "The
financial problems and academic performance among public university students in Malaysia." The Asian
Journal of Professional and Business Studies 2.2 (2020).
Olufemioladebinu, Tokunbo, Amos Adekunle Adediran, and W. O. Oyediran. "Factors influencing
the academic achievement of students in Colleges of Education in Southwest, Nigeria." Journal of
Education and Human Development 7.3 (2018): 109-115.
Rokni, M. R., Nutt, S. R., Widener, C. A., Champagne, V. K., & Hrabe, R. H. (2017). Review of
relationship between particle deformation, coating microstructure, and properties in high-pressure cold
spray. Journal of thermal spray technology, 26, 1308-1355.
Wynes, Murry W., et al. "An international interpretation study using the ALK IHC antibody D5F3
and a sensitive detection kit demonstrates high concordance between ALK IHC and ALK FISH and
between evaluators." Journal of thoracic oncology 9.5 (2014): 631-638.
Richardson, Thomas, Peter Elliott, and Ronald Roberts. "The relationship between personal
unsecured debt and mental and physical health: a systematic review and meta-analysis." Clinical
psychology review 33.8 (2013): 1148-1162.

https://edubirdie.com/examples/the-impact-of-financial-problems-on-college-
student-performance/
https://www.researchgate.net/publication/
277697256_The_Contemporary_World_of_Finance
https://www.researchgate.net/publication/349728447_THE-FINANCIAL-
PROBLEMS-AND-ACADEMIC-PERFORMANCE-AMONG-PUBLIC-UNIVERSITY-
STUDENTS-IN-MALAYSIA
https://www.iwriteessays.com/example/financial-problems-college-students-
essay#:~:text=One%20of%20the%20most%20common,expensive%20and
%20unaffordable%20tuition%20fees.
http://coffee8cafe.blogspot.com/2009/08/conclusion.html