CHAPTER I

THE PROBLEM AND ITS BACKGROUND

This chapter includes the background of the study, statement of the

problem, scope and delimitation, significance of the study, and definition of terms.

Background of the Study

Financial stress has become a significant problem in today's society,

affecting individuals of all ages and socioeconomic backgrounds. This stress can

result from multiple factors, including daily expenses and unexpected expenses,

and it can have a profound effect on an individual's mental and physical well-

being. In particular, financial stress can have a detrimental impact on students'

academic performance, leading to lower grades and overall performance. This

stress can cause a decline in concentration and motivation, which can delay a

student's ability to remember information. Additionally, financial stress may lead

to missed classes or delayed assignments, ultimately resulting in poor academic

performance. Furthermore, financial stress can also affect an individual's

behavior and mental health, leading to negative outcomes such as anxiety,

depression, and sleep problems. Financial stress can also affect a student's

behavior such as having a low self-esteem, shy behavior, unstable way of

thinking, and having rebellious behavior against their parents. It may be because

of their growing up process but some do blame their parents for not giving them

enough, and for the lack of financial assets to support them.

relationships (Sabrina Yusuf and Fatima Al-Majdhoub., 2020). And financial

stress is one of the reasons why students’ academic performance is relatively

lower than normal. Mostly a family from a poor family can hardly earn enough

money for their daily living expenses, what is more on their children's needs in

their school such as school supplies, for their projects, and proper clothes to

wear at school. According to Olufemioladebinu, Adediran and

Oyediran (2018), the parent’s income or social status has positively affected the

students' academic performance in an examination. And according to a study by

Asri (2017), mentioned that there are many factors that contribute to student

academic performance. However, family socio-economic are the significant

factors that involves financial management which will provide motivation for the

students to either have passion or not to achieve in their academics (Sabrina

Yusuf and Fatima Al-Majdhoub., 2020). That is why financial is the motivation

and encouragement for the students to learn and achieve higher academics.

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 and having a higher cost and expenses that are used in

useless things. Here comes the issue of whether students who have financial

problems can handle the stress of managing their daily lives and finances.

According to Asri (2017) stated that having a poor financial management could
cause an individual to be unable to control the stress and thus it affects their daily

life such as health by making them depressed and becoming physically ill.

Financial stress can have adverse outcomes such as anxiety, depression,

and sleep problems, which can have a profound effect on a student's academic

performance (Douce, 2021). This stress can cause a decline in concentration

and motivation, which can delay a student's ability to remember information.

Additionally, financial stress may lead to missed classes or delayed assignments,

which can ultimately result in lower grades. Having financial stress can initiate a

cycle of anxiety and stress, which can adversely affect a student's mental health.

Consequently, the negative impact on mental health can lower academic

performance and result in a decline in grades and overall performance.

The researcher has found that financial stress is a prevalent issue that

affects individuals of all ages and socioeconomic backgrounds, leading to

significant impacts on their mental and physical well-being. Students, in

particular, are greatly affected by financial stress, as it can have a detrimental

effect on their academic performance. This can lead to reduced competitiveness

with their peers, missed classes, delayed assignments, and poor academic

performance, which can ultimately affect their future career prospects.

Additionally, students under financial stress may experience pressure to improve

their academic performance, leading to mental breakdowns and further stress.

These problems can affect their overall well-being, leading to negative outcomes

such as anxiety, depression, and sleep problems. It is essential for the

researcher to understand the factors that contribute to financial stress and the
ways in which it affects academic performance. Educators and policymakers can

develop appropriate strategies and resources to support students in managing

their finances effectively and reduce the negative effects of financial stress on

their academic and personal lives.

Statement of the Problem

The study was conducted to determine how the financial stress affects the

academic performance of selected ICT 11 Hope student of ACTS Computer

College Academic Year 2020-2023.

1. How does the financial stress influence the motivation, concentration, and

focus levels of ICT 11 Hope students in their academic pursuits?

2. What are the specific academic challenges and obstacles that arise due to

financial stress among ICT 11 Hope students?

3. How do coping mechanisms, support systems, and available resources affect

the academic performance of ICT 11 Hope students dealing with financial stress?

Scope and Delimitation

This study aims to focus on the effect of financial stress in the academic

performances of the selected ICT 11 Hope Students of ACTS Computer College

in the year 2022-2023. Specifically, it will be focused on determining whether

finance is important to the students’ academic achievement, examining the

causes of financial stress on students and determining the extent of financial

be restricted to a specific section of the target population over a specified

duration. In a group of 40 students who study in ICT 11 Hope would be the ideal

coverage of this study within 5 days.

This study is limited and is focused on the effects of financial stress in the

academic performances as perceived by the ICT 11 Hope in ACTS Computer

College in the year 2022-2023. The researcher will select a few of the students

and select at least (21) twenty-one students, (6) six girls and (15) fifteen boys.

The researcher also encountered minor problems with the human endeavors and

significant constraints with the subject matters of the study. Which is why they

resort to a limited choice of questions for the students. Despite the constraints

encountered, they were able to minimize the sample questions and gathered

some data. The data gathered is done by conducting an interview consisting of

five questions and it is done at ACTS Computer College.

Significance of the Study

The result of the study may provide insights into the factors contributing to

academic performance, which can help educators and policymakers design

strategies to address these challenges. The study will help and identify the

financial stressors that affect the academic performance of the students and the

strategies that can be used to reduce the stress.

To the students, this study can help students who are experiencing

financial stress to understand the negative impact it can have on their academic
performance. By being aware of the consequences, students can take steps to

manage their stress levels better and seek help if needed.

To the educators, they can benefit from this study by understanding the

challenges students face due to financial stress. By being aware of these

challenges, educators can provide additional support and guidance to students

who need it, such as providing financial assistance or resources to manage

stress levels. This study can also help educators to create a more inclusive

learning environment that caters to students from diverse socioeconomic

backgrounds.

To the policymakers, this study can help policymakers to understand the

importance of financial literacy education in schools and to provide more support

for students to acquire financial management skills.

Definition of Terms

There are various key terms that were used throughout this study, and

they have carefully identified it to describe and give a better understanding. For

the purpose of citing, it is better to be aware of the following terms.

Academic Performance - Is the extent to which a student, teacher or

institution has attained their short or long-term educational goals. Completion of

educational benchmarks such as secondary school diplomas and bachelor's

degrees represent academic achievement.

cause.

Financial Stress - It is an emotional tension that is specifically connected

in having a difficulty of meeting the basic financial commitments due to a

shortage of money.

Policymaker - a person responsible for or involved in formulating policies,

especially in politics.

Self-Esteem - belief and confidence in your own ability and value.

Social Status - the level of social value a person is considered to

possesses.

Well-Being - encompasses quality of life and the ability of people and

societies to contribute to the world with a sense of meaning and purpose.