THE EFFECTS OF FINANCIAL STRESS ON THE ACADEMIC PERFORMANCE OF

ECLARO ACADEMY SENIOR HIGH SCHOOL STUDENTS

ACADEMIC YEAR 2024-2025

A Research Proposal Presented to the Faculty of

Senior High School Department
Eclaro Academy

In Partial Fulfillment of Requirements for the

Senior High School in Practical Research

Balutabot, John Mer

Balutabot, John Nel

Caldoza, Angelica

Dagan, Lexter

Defensor, Stephanie

Dojaylo, Sam Martin

Gruzo, Leeona Testorasa

Hayson, Angel

Menor, Christian

Millares, Jayven

Pantua, Justine Aguilon

Retuerto, Ronnie Kim

Sican, Lorenz John

 CHAPTER I

INTRODUCTION AND ITS BACKGROUND

This chapter represents the Introduction, Background of the Study, Statement of

the Problem, Hypothesis, Scope and Delimitations of the Study, Significance of the

Study, and the Definition of Terms.

INTRODUCTION

The academic performance of students is influenced by various factors, including

financial stress. Financial stress refers to the anxiety and worry caused by the inability

to manage financial obligations, which can significantly impact the academic

performance of students.

Education is considered to be a fundamental factor for the development of the

economy. Education raises and secures the productivity, creativity, promotes

entrepreneurship and technological advancements of the world. Thus, education is an

investment of human capital (Ozturk 2018).

In accordance to this, ‘The state shall protect and promote the right of all citizens

to quality education at all levels, and shall take appropriate steps to make such

education accessible to all’ as stated within the 1987 Philippine Constitution, Article XIV.

With this in mind, based on the data of the Philippine Statistics Authority, about

10 million Filipinos are without a stable source of income along with the 25 million under
the poverty line. Despite having the right, poverty hinders a student from acquiring

proper education.

When a student undergoes poverty, they start to form stressors which hinder

them to focus on their education. In a survey conducted by the Social Weather Stations

(SWS), shows that one out of four or 27 percent of Filipinos frequently experience

stress in their daily lives. In the said research, it shows that the age group of 18-24

year-olds are frequently stressed. Based on the data, finance is one of the main causes

of stress among this age group which are mostly students.

Thus, suggests that a student’s financial position can affect their engagement in

learning, which then affects their learning outcomes and future study decisions. Even

the smallest bills and payments when piled up can grow till they have a serious impact

in a student’s life. So much that one can start seeing signs of Financial Stress (Look,

2018).

Financial Stress is defined by the Australian Bureau of Statistics (2014) as the

difficulty of meeting basic financial commitments due to the shortage of money. In the

Philippines, Financial Stress is widely experienced due to poverty by any year level,

especially senior high school students under the K-12 program. Since the introduction of

the Department of Education’s K-12 program, there have been criticisms coming from

parents, teachers and students that this worsens the financial stress of the Philippines

as it aggravates the financial situation of many families and millions of students

(Bautista 2020).
 So much that one can start seeing signs of Financial Stress (Look 2018).

Common signs such as anxiety and depression that affect the cognitive ability and

influence the child’s ability to plan, make decisions and focus leading to PTSD

(Post-Traumatic Stress Disorder) (Agawan, Ma 2020)

According to Elizabeth Scott (2018). Financial stress is the emotional tension that

arises from money-related concerns, which can affect anyone but may be more

prevalent in households with lower incomes due to challenges in meeting essential

expenses. Individuals with limited financial resources may also experience additional

job-related stress, such as inflexible schedules, unsafe conditions, or the fear of

financial insecurity while searching for a new job. Lacking access to support systems

like health insurance for mental health treatment can further exacerbate financial stress.

While occasional financial stress is common, it can become problematic if it disrupts

daily life, causing constant worry and interfering with other aspects of life. Severe

financial stress can negatively impact mental health, leading to anxiety, depression,

behavioral changes, or physical symptoms. If you experience any negative effects

related to financial stress, seeking help from a healthcare professional is crucial.

While we all know deep down there are many more important things in life than

money, when you’re struggling financially fear and stress can take over your world. It

can damage your self-esteem, make you feel flawed, and fill you with a sense of

despair. When financial stress becomes overwhelming, your mind, body, and social life

can pay a heavy price. (Robinson, L., & Smith, M., 2021).
 Therefore, this study primarily focuses on Grade 11 students at Eclaro Academy,

aiming to identify the impact of financial stress on academic performance. Additionally, it

seeks to explore the struggles and challenges experienced by these students. This

research aims to provide valuable insights that can inform educators, administrators,

and policymakers about the specific challenges Grade 11 students at Eclaro Academy

face due to financial stress. By understanding these challenges, interventions and

support systems can be developed to help mitigate the negative effects of financial

stress on academic performance and overall well-being.

BACKGROUND OF THE STUDY

Financial stress has been identified as a significant issue that affects the

academic performance of students in many academic institutions. The financial burden

of education has been increasing over the years, leading to higher levels of financial

stress among students.

The study by Usman (2018) examines the impact of financial stress on students'

academics. Financial stress is a significant issue for college students, with one-third of

students describing their finances as "traumatic" or "very difficult" to handle (ACHA,

2018). Financial stress has been linked to decreased grade point averages, increased

overspending, and increased student debt (Letkiewicz, 2016).

The study by Bernardo and Resurreccion (2018) explores the relationship

between financial stress and well-being among Filipino students, focusing on the

moderating role of external locus-of-hope. The study delves into the impact of financial

difficulties on students' well-being, drawing on the principles of positive psychology and

the buffering effects of character strengths like gratitude, forgiveness, and hope in

coping with stress (Bernardo & Resurreccion, 2018). The research aims to investigate

how external locus-of-hope dimensions moderate the negative impact of financial stress

on Filipino students' life satisfaction, contributing to the understanding of well-being in

university students. The study provides insights into the importance of external

locus-of-hope in enhancing students' well-being and life satisfaction, particularly in the

context of financial stress.

The study found that financial stress was significantly associated with lower

academic achievement, and that coping strategies played a role in mitigating the

negative effects of financial stress on academic performance. Students who reported

using more adaptive coping strategies, such as seeking social support and planning,

had higher academic achievement than those who used maladaptive coping strategies,

such as avoidance and wishful thinking (Usman, 2018).

Financial stress can lead to academic failure, adverse health issues, and

negative coping strategies such as borrowing money and seeking help (Joo So-Hyun et

al., 2008; Melissa C. Nelson Katherine Lust Mary Story Ed Ehlinger, 2008). Citation: Joo

So-Hyun, Durband, D., Dorothy Bagwell, Grable, J., & John, M. J. (2008). Financial

stress and college students’ academic performance. Journal of Financial Planning

Education, 22(1), 1-12.

In summary, this study primarily focuses on Grade 11 students at Eclaro

Academy, aiming to identify the effects of financial stress on academic performance.

Additionally, it seeks to explore the struggles and challenges experienced by these

students. By providing valuable insights into the specific challenges faced by Grade 11

students at Eclaro Academy due to financial stress, this research can inform educators,

administrators, and policymakers. Understanding these challenges can facilitate the

development of interventions and support systems aimed at mitigating the negative

effects of financial stress on academic performance and overall well-being. Moreover,

implementing some strategies to help students reduce their stress and gain a better

understanding about their financial situation can enhance their academic experience

and overall well-being.

STATEMENT OF THE PROBLEM

This study on the Effects of Financial Stress on Academic Performance of Grade

11 students of Eclaro Academy Academic Year 2024-2025 sought to answer the

following questions:

1. Demographic Profile

1.1 Name (Optional)

1.2 Age

1.3 Strand

1.4 Gender

1.5 Family Income

 2. Respondent perspective about financial stress in terms of:

2.1 Sources

2.2 Impact

2.3 Coping Mechanisms

3. How does financial stress affect the academic performance of Grade 11

students at Eclaro Academy?

4. What coping mechanisms do Grade 11 students at Eclaro Academy

employ to deal with financial stress?

5. Based on the findings, what recommendations may be proposed?

Hypothesis

H0: Financial stress has a significant impact on the academic

performance of senior high school students, leading to poor academic

performance, increased levels of distress, and negatively affecting their overall

well-being.
CONCEPTUAL FRAMEWORK

The researcher used the Input-Process-Output (IPO) model method to show the

process done in the study.

Figure 1

Frame number 1 shows the input of this study consisting of the title of our

research about the Effects of FInancial Stress on Academic Performance of Grade 11

Students of Eclaro Academy Academic Year 2024-2025 and the following question

sought to answer:
 The process to be used in this study is survey questionnaires, it is a tool for

gathering information from a set of respondents or participants. It typically consists of a

series of questions related to the research topic or objectives.

SCOPE AND DELIMITATION

This study primarily focuses on the perception of Senior High School students
regarding the effects of financial stress on academic performance at Eclaro Academy
during the second semester of the school year 2023-2024. The respondents of this
study are senior high school students, totaling 210 individuals, comprising both Grade
11 and Grade 12 students at Eclaro Academy for the Academic Year 2024-2025. A
quantitative approach will be employed, utilizing structured questionnaires to gather
data on senior high school students' perception of the effect of financial stress on
academic performance. Due to the large population, the researchers have decided to
use the 'Random sampling method' for the sampling approach.

SIGNIFICANCE OF THE STUDY

This study will provide insight into the effects of financial stress on the academic

performance and well-being of senior high school students, and will contribute to the

development of interventions to address financial stress and support students in

managing their finances.

Students: This study will help students understand the effects of financial stress on

their academic performance and well-being, and provide strategies to manage financial

stress.

Teachers: Teachers will benefit from this study by gaining insights into the effects of

financial stress on their students' academic performance, and by learning strategies to

support students who are experiencing financial stress.

Parents: Parents will learn about the effects of financial stress on their children's

academic performance and well-being, and how they can support their children in

managing financial stress.

DepEd or ChEd: This study will provide valuable information to DepEd or ChEd about

the effects of financial stress on senior high school students' academic performance and

well-being, and the need for interventions to address financial stress.

Future Researchers: Future researchers will benefit from this study by gaining insights

into the effects of financial stress on senior high school students' academic performance

and well-being, and by learning about the methods used in this study.

DEFINITION OF TERMS

Administered - to give or apply something (such as a test, medication, or treatment) to

someone.

Anonymity - the state of being anonymous or unidentified; the condition of remaining

unknown or nameless.

Associated - connected or linked with something; related to or in partnership with.

Avoidance - the act of staying away from or preventing involvement in a particular

situation, task, or behavior.

Comprising - including or consisting of; made up of.

Delves - to explore or investigate something in detail or thoroughly.

Disrupts - to interrupt or disturb the normal functioning or order of something.

Exacerbate - to make a problem, situation, or condition worse or more severe.

Facilitate - to make a process or task easier or smoother; to assist or enable.

Fewer financial - having a smaller number or amount of financial resources or assets.

Financial strain - the pressure or burden caused by financial difficulties or challenges.

Flawed - having a mistake, fault, or imperfection; not perfect.

Inflexible - not easily adaptable or willing to change; rigid or stubborn.

Insight - a deep understanding or realization of something, often gained through

observation or experience.

Intervention - the act of getting involved in a situation in order to improve or alter its

outcome.

Likert Scale - a type of rating scale used in surveys or questionnaires to measure

people's opinions or attitudes.

Locus-of-hope - a term used to describe a place or source from which hope or

optimism arises.

Maladaptive - referring to behavior or traits that are not adaptive or helpful in a given

context or situation.

Mitigating - reducing the severity, intensity, or impact of something.

Perceived - to become aware of, recognize, or interpret something in a certain way.

Peer-reviewed - a process in which a research paper or article is evaluated by experts

in the same field before publication.

Retention - the act or process of keeping or retaining something; the ability to

remember or recall information.

Rigorous - characterized by strictness, thoroughness, or precision; demanding high

standards.
Vulnerability - the state or condition of being susceptible to harm, damage, or attack;

the quality of being easily hurt or affected.

LOCALE OF THE STUDY

This study will be conducted at EcLaro Academy, which is located at the Ever

Commonwealth branch. The school offers five strands in Senior High School, which

include STEM, ABM, HUMSS, ICT, GAS, and HE. EcLaro Academy was established in

2013 as part of EcLaro Business Solution Inc.'s corporate social responsibility initiative.

It provides education for young children, elementary, middle school, high school, and

college degrees, with majors such as Criminology, Computer Science, and

Communications.
 CHAPTER II

REVIEW OF RELATED LITERATURE

The literature that the researchers examined to determine the importance of the most

current study is presented in this chapter.

FOREIGN

Financial Strain, Stress, and Mental Health Outcomes

According to Adams, Meyers, and O'Neill (2023), financial strain has a significant

impact on stress levels and overall mental health. The authors conducted a study to

examine the relationship between financial strain, stress, and mental health outcomes,

and found that financial strain was positively associated with stress, depression, and

anxiety. The study also found that the relationship between financial strain and mental

health outcomes was mediated by stress, meaning that stress played a key role in the

impact of financial strain on mental health. This research highlights the importance of

addressing financial strain as a means of improving mental health and well-being.

Family and Academic Stress and Their Impact

The study "Family and Academic Stress and Their Impact on Students'

Depression Level and Academic Performance" was conducted by Deng, Cherian, Khan,

Kumari, Sial, Comite, Gavurova, and Popp. The authors aimed to investigate the impact

of academic and familial stress on students' depression levels and academic

performance. The study was published in the journal Psychiatry in June 2022. The

authors used the non-probability convenience sampling technique to collect data from
undergraduate and postgraduate students. The study used the SEM method to examine

the link between stress, depression, and academic performance. The study confirmed

that academic and family stress leads to depression among students, negatively

affecting their academic performance and learning outcomes. The study provides

valuable information to parents, educators, and other stakeholders concerned about

their children's education and performance. The authors suggest that educators and

parents should provide support to students to help them cope with stress and prevent

depression.

Academic Stress and Its Sources

The article "Academic Stress and its Sources Among University Students" by

Reddy, Menon, and Thattil, published in the Biomed Pharmacol Journal in 2018,

discusses the role of academic stress in the lives of university students. The authors

highlight the vulnerability of adolescents to academic stress, which can have significant

impacts on their mental health. The study employed a quantitative research design,

using the Academic Stress Scale developed by Rajendran and Kaliappan (1991) to

understand the sources of stress among students from various streams. Participants

were selected using random sampling, and informed consent was obtained. The article

emphasizes the importance of understanding the sources and impacts of academic

stress to develop effective intervention strategies.

Impact of Poverty Indicators

The systematic review conducted by JOSI Typsetting (192 PS edits, NB

4.12.2020) explores the impact of poverty indicators on the engagement and retention
of Australian tertiary students. Through a rigorous search process, 41 relevant studies

were identified from a pool of 6,283 potential sources, with a majority being

peer-reviewed. The review highlights various poverty indicators such as financial stress,

food insecurity, housing satisfaction, homelessness, low socioeconomic status, and the

inability to afford basic necessities, shedding light on their significant influence on

student outcomes in higher education. The study adheres to the PRISMA guidelines for

systematic reviews (Moher, Liberati, Tetzlaff, & Altman, 2009), ensuring a

comprehensive and transparent reporting of the research process.

Financial Stress, Coping Strategy, and Academic Achievement

The study "Financial Stress, Coping Strategy, and Academic Achievement of

College Students" by Britt, Mendiola, Schink, Tibbetts, and Jones (2016) investigates

the impact of financial stress on college students and its relationship with academic

achievement. The study found that financial and life stressors, higher subjective

financial knowledge, fewer financial resources, negative perceptions, and lower mastery

are associated with higher financial stress. However, financial stress was not associated

with academic achievement. Financial stressors, objective financial knowledge, and

financial resources were highly related to financial stress. The study suggests that

increasing available financial resources to students and providing opportunities to

increase financial knowledge for students could decrease stress and improve academic

achievement.
LOCAL

Family Related Stress and School Performance

The study "Family related stress and school performance of public high school

students" (2006), conducted by Rizzi A. Lustre from the College of Home Economics at

the University of the Philippines Diliman, aimed to explore the impact of family-related

stress on the academic performance and school experience of public high school

students. The research identified key sources of family-related stress, such as financial

problems, family conflicts, and health issues, and highlighted their significant influence on

students' academic performance and overall school experience. This study offers

valuable insights for parents, educators, and stakeholders seeking to enhance the

educational outcomes and well-being of public high school students.

Financial Stress and Well-being of Filipino Students

According to the study conducted by Allan B. I. Bernardo and Katrina Fernando

Resurreccion, titled "Financial Stress and Well-being of Filipino Students: The

Moderating Role of External Locus-of-hope," published by the Psychological

Association of the Philippines in 2018, the research aimed to investigate how external

locus-of-hope (LOH) moderates the impact of financial stress on the well-being of

Filipino students. The study involved students from various universities who completed

questionnaires assessing financial stress, internal and external LOH, and satisfaction

with life. The findings revealed that life satisfaction was negatively influenced by

financial stress but positively affected by three LOH dimensions. Particularly,

external-family LOH was found to moderate the relationship between financial stress

and life satisfaction, indicating that students with high external-family LOH did not

experience a negative impact of financial stress on life satisfaction. However, the study

also suggested that financial stress moderates the relationship between

external-spiritual LOH and well-being. This research contributes to understanding the

role of character strengths in mitigating the effects of adverse experiences on the

well-being of Filipino students.

Financial Stress and Academic Performance of Senior HIgh School Students

According to Amaro, Bernabe, Centeno, Comendador, Dela Cruz, and

Sumalinog (2024), the study on the impacts of financial stress on the academic

performance of senior high school students in a Philippine university found that financial

stress significantly affects students' academic performance. The research identified the

causes of financial stress, determined its impact on academic performance, and

explored ways to alleviate financial stress among students. The study was conducted

through an online questionnaire using Google Forms, with 100 senior high school

students from the University of Perpetual Help System DALTA – Molino Campus

participating in the research.

 CHAPTER III

RESEARCH METHODOLOGY

This chapter discusses the description of the research method and the procedure

of the study, which includes the research method to be used, sampling method,

respondents, data gathering instrument and procedures, and the statistical tools to be

used in analyzing the data.

Research Method

The researcher employed the quantitative research approach for this

investigation. This study investigates the compelling world of financial stress and how

grade 11 senior high school students perceive them. Throughout the investigation, the

researchers made an effort to support the objectives, and provide the necessary

solutions to the problem by addressing financial stress and finding ways to manage it

effectively. Quantitative research involves collecting and analyzing numerical data. It is

ideal for identifying trends and averages, making predictions, testing relationships, and

generalizing results for large populations (Fleetwood, 2023).

Sampling Method

The researchers used random sampling to select respondents for this study from

around the Eclaro Academy, with the subsets consisting of Grade 11 and Grade 12

students. Each participant was chosen randomly, ensuring that every member of the

population had an equal chance of being selected for the sample, thus ensuring

unbiased representation.
Respondent of the Study

This study will examine the impact of financial stress on students' academic

performance, exploring its sources, effects, and coping strategies. To achieve this, the

researcher will gather data from a total of 210 individuals, comprising Grade 11 and

Grade 12 students at Eclaro Academy for the Academic Year 2024-2025. The student

population will be divided into two groups: 105 Grade 11 students and 105 Grade 12

students, who will be randomly selected to complete the survey questionnaire.

Data Gathering Instrument

The researchers will provide data using a survey questionnaire titled "THE

IMPACT OF FINANCIAL STRESS ON ACADEMIC PERFORMANCE OF STUDENTS."

They chose a face-to-face survey questionnaire as their research instrument because it

is the most convenient and safest method for gathering data, allowing them to collect

information from a large population and facilitating easy analysis of the results. The

researchers have assured respondents that their privacy will be respected, as the

survey questionnaire allows them to maintain anonymity and covers every aspect of the

topic.

For assessing participants' attitudes, opinions, or perceptions in surveys, the

researcher will employ the Likert scale measurement scale to clarify data effectively and

accurately.

According to various sources, the Likert scale is a psychometric scale commonly

used in research questionnaires to measure attitudes, opinions, or perceptions. It

typically consists of a statement or question followed by a series of five or seven answer

statements, allowing respondents to express their level of agreement or disagreement

with the statement. The scale assumes that attitudes can be measured linearly from

strongly agree to strongly disagree and provides a range of responses to capture the

intensity of feelings towards the question or statement.

In this study, Five levels of agreement were employed:

1. Strongly Agree

2. Agree

3. Neutral

4. Disagree

5. Strongly Disagree

Data Gathering Procedure

The data collection protocols for this study involved several steps. Firstly, the

researchers obtained permission from the school president, Dr. Joseph Lornito Beaniza,

to use their queries. Subsequently, the researchers selected survey questions following

authorization and validation. Using Slovin's formula, the sample size for both Grade

levels 11 and 12 was determined in the second stage, resulting in a minimum of 210

respondents from Eclaro Academy. In the third phase, the researchers crafted a set of

survey questions, and in the fourth phase, they individually administered the survey

questionnaire to relevant responders. To ensure data accuracy and completeness, the

Eclaro Academy survey questionnaire was continuously recorded throughout the

process. Finally, the researchers assessed the survey's outcomes and drew inferences
from the acquired information. Due to the short survey period, a minimum of 210

respondents were surveyed at Eclaro Academy.

Statistical Treatment of Data

The researchers will employ specific formulas suited to the data set. Frequency

and Percentage aid in distributing variables among respondents, while Weighted Mean

is optimal for analyzing the dependent variable, reflecting respondents' distribution

across survey questions. Likert Scale transforms quantitative questionnaire data into

qualitative, facilitating statistical analysis. Determining the sample size is pivotal,

achieved through Slovin's formula, ensuring accurate representation and confidence

levels.