CHAPTER I

THE PROBLEM
Introduction
Money, according to Oxford learner’s dictionaries, is any object that is used as a medium

of exchange, but moneys often also function as stores of value, accounting units, and means for

making payments. It means to say that, money is a tool of paying someone or something to

settle some expenses.

Payment is the voluntary transfer of money, equivalent, or other valuable items from one

person to another in exchange for goods or services received or to meet a legal obligation.

Furthermore, payments can be made through various methods, including cash, credit/debit

cards, checks, electronic transfers, and digital wallets (Economic Times n.d.). As stated on the

given definition, it refers to a crucial aspect of financial transactions, involving the settlement of

debts or obligations through the transfer of funds. Financial settlement, involves delivery to the

beneficiary, usually against payment of money, to fulfill contractual obligations, such as arising

under securities trades (Wikipedia 2007). For instance, this process often includes the transfer

of money and securities between the involved parties and is a critical step in finalizing the

transaction.

Financial issues, are typically used to describe a difficult or challenging financial situation

(Nathan Mahr 2022). As stated on the given definition, financial issues generally refer to any

problems, challenges, or concerns related to money, budgeting, saving, investing, debt, or other

financial matters. Moreover, financial issues can arise from various factors, such as changes in

income, fluctuations in the economy, personal or family emergencies, or lack of financial

knowledge. Addressing financial issues often involves creating and following a plan, making

informed decisions, seeking advice, and developing healthy financial habits.

Everyone in society, both then and now, is stuck in this never-ending problem, especially those

who weren’t fortunate enough to be born with a gold spoon in their mouth. For this reason, it is

certainly challenging for students who are having financial difficulties, especially when it comes

to paying for their education. Financial issues with Senior High School Students: Many Senior

High School students struggle to make ends meet and afford their education. Many of them

have high debt levels, low financial literacy, compulsive spending tendencies, and low incomes.

One issue that every Senior High School student faces is how to pay for their daily expenses,

which include food, projects, transportation, and other costs. According to Halliday Wynes,

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

academic performance. Students often experience financial difficulties when they do not have

enough money to cover their everyday costs, which stresses them out.

Financial distress is prevalent among students nationally, with almost three and four

students experiencing financial difficulties (Ashley Mowreader 2022). It means to say that,

financial distress is a situation in which an individual, organization, or entity is experiencing

significant financial difficulties. Financial distress may be caused by various factors such as

excessive debt, declining income, unexpected expenses, economic downturns, or

mismanagement of finances. Furthermore, students always make excessive spending behavior.

Students like spending more than what is needed and have no self-discipline in spending

money. It is like student’s habit too. Most students have spend money either from earning or

allowances. So, without any experience in handling student’s financial, it is seem for students to

control their budgets and expenses. Financial problem will make another burden for students

(Eleonnie Mark Marthen 2011).

Students who are concerned about finances may demonstrate lower goal commitment,

academic engagement, and persistence. High levels of student loan debt and financial stress

have been associated with increased likelihood of dropping out, stopping out, or reducing

course loads. Financial concerns have also been linked with extended time to degree, which

can escalate the costs of students. Financial strain may reduce students' motivation to complete

college or deplete their cognitive resources available for academic concerns. Lack of financial

management skills is a reason, students do not graduate. Poor financial circumstances are

linked to worse academic outcomes among undergraduate students. Students who take out

loans have lower grade point averages, take fewer credits per semester, and have lower

retention rates. These findings highlight the need for policies to mitigate the adverse effects of

increasing education debt (Scispace n.d.). It means to say that being financially unstable have a

possible negative effects on a student’s academic performance.

According to Dang and Bulus, (2015), education is a high-cost social service therefore

insufficient financial support will be a problem for students to enhance themselves in academics

thus leading to poor academic performance. In addition, due to the various expenses associated

with education, including tuition, books, transportation, accommodation, and other related costs,

it is a high-cost social service. For students, particularly those from low-income households,

these expenses may represent a major financial challenges. In the opinion of Draut (2007),

despite these obstacles, some students are tenacious and overcome the adverse situations to

which they are exposed or trusted. However, this study focuses primarily on the difficulties

associated with financial stress and its effect on students' academic performance.
Statement of the Problem

This study is aimed to identify the impact of financial challenges to the academic

performance of grade 11 students in Pio Duran National High School. The researchers

conducted this study at Pio Duran National High School, in the school year 2023-2024.

Specifically, it intended to answer the following questions:

1. What are the effects of financial challenges to the academic performance of grade 11

students?

2. What are the causes of financial challenges to the academic performance of grade 11

students?

3. What are the possible ways to prevent financial challenges?

Scope and Delimitation

This study focused only on the impact of Financial Challenges to the Academic Performance

of Pio Duran National high School Grade 11 GAS, CSS, TVL. Students in the first semester of

S.Y 2023-2024. Students of Grade 11 per students will be the respondents of the study.

The following are the limitations of this study [a] the study focused on only one school which

is Pio Duran National High school [b] the students were non-randomly selected [c] the general

weighted average in the first semester were gathered by the researchers.

This study when done, will provide relevant information about the financial challenges on

the academic performance of the students on the first semester and how financial challenges

can help in enhancing the academic performance.

The study when completed would be benefit to the following individuals:

Students - Financial problem is not a problem to students with financial supports from their

parents but for many students that belongs to the low-class society, it is a headache, when

students struggle in studying because of lack of money to buy the needs in school (e.g. school

supplies) it can affect their mental health that cause stress and even anxiety. Although this can

still be prevented by studying this research and learning all the important content, this research

will make them gain more knowledge about how to solve or lessen the effects of financial

problems, the content revolves in planning, organizing and specially preventing this problem.

Teachers - Because of learning about how to prevent financial problems, teachers can easily

teach specially to students that doesn't have lots of money. This research can make their

teaching easy and more precise, also they can have additional knowledge regarding this issue.

Parents - Parents doesn't know all solutions in every situation specially in financial problem but

this research can help them learn more about financials and how to control when this problem

occurs. And because of reading and studying this research, it will make them less worry about

making a decision of how to solve this issue in our society. Therefore, planning the solution in

this matter will make it easy for them to solve this problem.

Future Researchers - This research can help them gather more important information. This

will make it easy for them to solve an incoming problem in this research because this research

will be their guide.

Money- Collin P.E (2015). In Oxford Dictionaries.

https://doi.org/10.1093/acrefore/9780199381135.013.4243

https://oxfordre.com/classics/display/10.1093/acrefore/9780199381135.001.0001/acrefore-

9780199381135-e-4243#:~:text=Money%20is%20any%20object%20that,and%20means%20for

%20making%20payments.

(Economic Times n.d.). Payments can be made through various methods.

https://economictimes.indiatimes.com/definition/Payment

Financial Issues- Nathan Mahr (2022). In Study.com.

https://study.com/academy/lesson/financial-issues-problems-challenges-causes-solutions-

examples.html

Halliday Wynes (2014). Challenges encountered by the students.

https://essayleague.quora.com/What-are-the-powerful-challenges-encountered-by-the-students-

Task-1-Introduction-1-1-Background-challenges-encount#:~:text=According%20to%20Halliday

%20Wynes%20(2014)%2C%20a%20student's%20financial%20position,of%20students

%20facing%20financial%20problems.

Financial Distress – Ashley Mowreader (2022). In InsideHighered.

https://www.insidehighered.com/news/student-success/health-wellness/2023/06/13/survey-

financial-concerns-impact-academics-student

Eleonnie Mark Marthen (2011). Financial problem will make another burden for students.
https://www.scribd.com/doc/76041053/Financial-Problem-Among-Students

The impact of finance to the academic performance- E.I Dang and E.J Bulus (2015).

https://www.researchgate.net/publication/

284551946_THE_IMPACT_OF_FINANCE_ON_THE_ACADEMIC_PERFORMANCE_OF_SEC

ONDARY_SCHOOL_STUDENTS_IN_AKWANGA_LOCAL_GOVERNMENT_OF_NASSARAWA

_STATE_NIGERIA

Draut (2007). Factors related to Financial Stress.

https://www.researchgate.net/publication/

271109392_Factors_Related_to_Financial_Stress_among_College_Students