Review of Related Literature

Financial plays big role in the society people used it to survive and sustained one’s life.

It cannot be deny that sometimes people experience financial problem. Because

financial problem is part of one’s life that need to be solve.

Being a student experiencing financial problem is not deniable. Specially those student

that their parents don’t have enough job to sustain their child study. According to a

new study led by Harvard, Prinuton and Warwide University Scientist that financial

hardship may directly influence a person cognitive ability. Student may also experience

financial stress for a variety of reasons.

The most obvious is due to the cost of attending school. In 2003, about 45 percent of

dependent students had unmet read, the gap between the net cost of attending

schooling (after including all sources of aid) and the expected family contribution (Long

and Riley, 2007) unmet need is particularly problematic for student as they typically

face credits constraints (Becker, 1993, Belley and Lochner, 2007)

Additionally, 20 percent said that their financial status had a positive impact on their

financial status had a positive impact on their academic performance. (Lee Harvey, and

Fellow at CRQ)
However, family incomes have declined after accounting for inflation (Bawn and Ma,

2012) yet, the average student is financially vulnerable or they typically have feel asset

and paltry incomes. Much research has also demonstrated that student here little

financial knowledge (Avard, Manton, English, and Wallen 2005, Berknes and Wei, 2006,

Chen and Volpe, 1998, Murphy 2005). In early study, parents influence both economic

and social motivation for consumption among adolescent. Hira (1997) summarized that

today children are much more independent and are going up with more control over

their lives than in the past. According to Moore and Moschis (1981) families may

affected the development of materialistic orientation of their children. Parent who

generally respected and asked for their children opinion lend to utilize message that

faster the development of consumption decision-making abilities in children (Carlson,

Grossbart and Struenkel, 1992)

Consequently, it is not surprising that financial stress is a leading stressor among

student (American college Health Association, 2013) According to Lee Harvey, status

had a positive impact on their academic performance and may led to affect their school

performance as a student.

Many past research has found that financial status contribute effect on the academic

performance of a student. One of this is the student participating in extracurricular

activities, that will have a positive effect on academic performance has not been reached

James Coleman’s multiple role theory post that extracurricular activities provide

additional, complimentary roles for a student that benefits the student academically
because the added role that increase self-esteem and overall participation and interest in

school, which can boost grades. Another one is the student from low socioeconomic

backgrounds who attend poorly funded school do not performs as well as student from

higher social classes. (Eamon 2005). But if a school is able to accomplish a feeling of

safety, student can have success despite their family or neighborhood background

(Crosnoeet al 2004).
 CHAPTER ONE

Introduction

BACKGROUND OF THE STUDY

A person’s education is closely linked to their life chances income and well-being (Battle

and Lewis 2002). Therefore it is important to have a clear understanding of what

benefits or hinders one’s educational attainment. Over the last few decades, higher

education financially has change dramatically. This shift arguably began with the

higher Education Act of 1992 which prioritized loans over need-base grants (Hannah,

1996). The increase in the cost of higher education, the decreased in the real median

income and the increase of student deft are all curses problems, which are often

discussed not only by student, and parents, but also by practical leaders and economic

makers.

Inflation adjusted tuition at us public four years higher education institution has

increased by an average of 225% since 1984 and increased by 90% since 2000. With

tuition rising sharply at the same time that household incomes are falling. Previous

research has shown that children from single-parent household do not perform as well

in school as children from two-parent households (Majoribanker 1996). Single parents

often struggle with time management issue due to balancing many different areas of life

or their own.
Financial aid also promotes persistence (Leslie & Brinks Man, 1987). Financial barriers,

such as unmet needs have correlated with dropping out, particularly among low

income student (Paulsen & St. John, 2002). Due to the law income of a student that

cannot support their studies engaged to be a working student in order to continue their

education. Research by Kara, Orhan, Baghen and Tolin (2009) founds a significant,

negative relationship between student’s grades and the numbers of hours worked.

Another two studies suggest that student under financial stress are more likely to also

suffer from depression, anxiety or suicidal thoughts (Eisenberg, Gollust, Colbertein &

Hefner, 2007: Myphersion, 2012). While others have associated financial difficulties

among college student to their self-esteem related to their physical appearance (Crocker

& Luhtanen, 2003). Financial stress may also lower academic performance (Ross,

Cleland & Macleod, 2006). In addition 27 percent with freshmen and 34 percent of

senior said they “often” or very often” chose not to purchase required academic

materials because at the cost.

While limited in the impact of financial problem, income have much research

demonstrating the role of money plays in educational decision and outcomes.

The study made use of descriptive survey design to determine the different effect of

financial status among the Home Economics student of ASCB. The study assumed the

effect of financial status might affect the performance of student in school.

Effect of financial status measured using the following variable; lack of interest,

depression, unable to attend school activities/event, prove to drop out and lastly

engage as a working student.

Lack of interest accord when student unable to met their needs in school that failed to

sustain their studies. Depression occurs when student feel hopeless that he can’t sustain

their study due to financial status they have. Another one is unable attend different

activities or event in school that makes student feel envy and insecure for they cannot

do what they want.

In addition, there’s tendency that student unable to attend to school and drop out.

Lastly is due to lack of financial, student might engage to be a working student in order

to support their studies.

Thirty research respondent were identified from all Home Economics student. The

researcher use a random sampling for choosing their participant. Data were gathered

through the responses of the survey questionnaire and the result lies the fact that the

respondent answer.
Limitation of study

The validity of the study was limited by the location of the study. The study of only

included the Home Economic student of Andres Soriano College. This was a specific

group with set social economic and educational background, which may not translate to

other location.

The accuracy of the study depend to the honesty of survey participant. The creator of

the instrument had not tested it for validity or reliability.

Significance of the study

impact to the academic performance of Home Economic student. As we know, there are

many effects of financial status among the student and how this effect correlate to their

study or academic performance. Financial status is very much important which exert

great influenced on academic performance of the students.

It is SES which determine an individual child program of education. Academic

Achievement is the final output in the school which determine an individual academic

success or failure. It is not only important for getting success in livelihood but also for

social condition recognition. So, it is very important to examine the impact of financial

status on status on student’s academic life and scholastic achievement.

The present study may help parents, teacher and educational administration to know

the importance of SES in determining, Academic Achievement of the Student as well as

in the process of developing at the country.

Null Hypothesis
HO1: There will be no significant correlation between financial status and academic

performance of Home Economic Students.

HO2: There would be no significant difference in Academic Performance among Home

Economic student in relation to their financial status.

Variable: In the present study the investigator takes 1 in dependent variable which is

the financial status and Academic Performance is dependent variable.

Sample: The sample for the present study consisted of so student selected through

random sampling technique from Home Economic student of Andres Soriano College

of Bislig.

Scope of the Study

the Home Economic Student of ASCB.

Effect of financial status among student will later on tackle, such as the lack of interest

on going to school, unable to engage different school activities, depression, lack of

confidence, high risk of failing grades and lastly commit to be a working student.

Objective of the study

Economic Academic Performance. This study will help student how to identify effect of

financial status and its impact to their performance in school.

Statement of the Problem

The purpose of this study was to determine the effect of financial status and its impact

among the Home Economic Student for their academic performance in school. The
study also focused on the correlation of financial status and academic performance

among Home Economic Student.

Heyreman (2005) stated that for many years it has been shown that student from a low

financial status background do not show effective performance in school. It is globally

suggested that social status is the key factor in academic performance. The poor

economic condition affectively most student, damage self-esteem, lack of interest, high

risk failed grades, unable to engage school activities and can result in depression.

Due to this phenomena the researcher decided to research about the effect of financial

status on the Academic Performance of Home Economics of Andres Soriano College of

Bislig and seek solution of this dilemma.