Financial Pressure of College Student free essay sample

Background of the Study Filipinos hold close several values. One of them is education. We have complete faith in formal schooling as we have the notion that to be educated is to have a better life. Education is regarded as a gateway to improving our social and economic status. Sending to college is one of the priorities of the Filipino family. However, with the economic difficulties and relatively high cost of college education in the country, many families find it difficult to send their children to college. The average yearly cost of education continues to increase. As anxiety rises concerning the escalating costs of schooling, students are left with the decision of how to fund their education. Some take out loans, or apply for grants or scholarships. Typically, college costs are considered in terms of their impact on access to higher education. However, after initially gaining access, it is increasingly a concern that tuition costs threaten to raise students’ loans, consumer debts, or work hours to the detriment of their academic success or that the level of debt upon graduation threatens their future standard of living. We will write a custom essay sample on Financial Pressure of College Student or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page We all know that a college education has a worth that cannot be expressed in money. The time of your life spent as a student does not only leave you with invaluable knowledge that can help you find a well-paid job and career, but also makes you independent and teaches you some important life lessons during your time as a student. College is the first chance for many young adults to make significant financial decisions on their own. When young people learn and practice sound financial skills during their college years, they build a foundation for lifelong financial well being. We all know that a college education has a worth that cannot be expressed in money. The time of your life spent as a student does not only leave you with invaluable knowledge that can help you find a well-paid job and career, but also makes you independent and teaches you some important life lessons during your time as a student. There is little information available regarding students prioritization of time-to-degree in relation to other academic priorities, social interests, and financial resources. The role of student behavior, attitudes, and priorities remain largely uninvestigated in terms of their impact on time-to-degree. Living college life is a stressful time in many students lives, and financial situations only add to the stress. From tuition rising to buying books to figuring out if your paycheck will be in your account before your drive-thru debit at Wendys goes through, financial stress is rampant. As students register for classes another unexpected cost arises. Textbooks, project and other related expenses. Statement of the Research Problem The main objective of this research is to determine the different causes of Financial Pressure of College Student. Review of related Literature Financial Pressure Financial pressure arises from any situation where money worries are causing stress. It may relate to debts you are facing now, or financial concerns you have about the future . Financial pressure is also related to financial stress. Many college students experience financial stress. This can involve the struggle to find sufficient money to pay for tuition, as well as securing the funds needed to cover the costs of living while attending school. Even those students who are able to qualify for sufficient financial aid to cover immediate college costs have to cope with the financial stress of knowing that they will have to face paying back a large sum of money following graduation. Financial pressure can seriously affect your relationships and your health. For example: difficulty sleeping, unhealthy eating, skimping on meals, feeling anxious about money, feeling guilty when spending money on non-essential items, limiting your spending on necessities or enjoyable activities. Financial stress can also cause physical signs of tensions such as headaches or feeling sick. College Preparation Earning a college degree has become a necessity for students who wish to follow successful career paths in practicing most desired professions. Unfortunately, both public and private colleges require significant expenses that seem unattainable for those with financial constraints. As such, aspiring students must have sufficient knowledge on how a college education may be partially or entirely funded by any number of obtainable financial aid options. Most countries in Asia are experiencing a dramatic increase in demand for higher levels of education at a time of both severe public budget constraints and profound overhaul of education systems aimed at significantly increasing their impact and relevance. In an attempt to ease the burden on public budgets, a number of countries have introduced student loans schemes, hoping to recover costs and increase the revenue base for the expansion of education, while at the same time providing opportunities for poorer segments of the population to access higher levels of education (F. Bernal, et al). The Philippines achieved universal primary education in the second half of the 1990s, and net secondary enrolment has reached 76 per cent at present, which means a growing pressure for expansion of already overcrowded and financially unsettled higher education. Wide regional disparities characterize all levels of instruction. Since need-based grants may not cover all expenses for a college education, other options must also be explored. For example, a students exemplary academic performance may earn him or her a merit scholarship. This type of financial aid may mean waived tuition fees as well as allowances for books and living expenses. Merit-based scholarships may also be given in recognition of exceptional athletic ability or artistic proficiency. Financing higher education is a source of stress for many college-bound students and their families, especially in todays troubled economy. In fact, according to one survey, nearly one in three college students say financial pressures are a big source of daily stress for them, up from 27% in 2008; 17% had seriously considered dropping out of school with financial pressures as the main reason cited as the cause (54%); 7% had trouble getting a student loan funded because their bank was having trouble; and 57% are at least somewhat worried they wont be able to find a job after graduation (63% among seniors). Edison Research Economy. May 2009) Financial pressure and college students Research has shown that the number one cause of dropouts of students in colleges and universities is financial pressure. Typically, college costs are considered in terms of their impact on access to higher education. However, after initially gaining access, it is increasingly a concern that tuition costs thre aten to raise students’ loans, consumer debts, or work hours to the detriment of their academic success or that the level of debt upon graduation threatens their future standard of living. The truth is that there are numerous causes for college stress. Probably the most obvious cause for stress would be financial stress. Some college students are working too many hours a week at jobs to pay the rent and put food on the table. These students may be waiters who work late shifts. They may be stock-crew members who manage to steal a couple of hours sleep during the day. They may even work hours that force them to sometimes miss class, contributing more to their stress. Peer pressure can be a very strong influence in decisions of all kinds. The need to fit in becomes a strong influence on our actions. If we are surrounded by others who are richer than we are, we may feel the need to upgrade our clothes, our cars, and our entertainment choices to match theirs. Ultimately, self-esteem comes from believing in yourself for the person that you are and not for what you wear. Unfortunately, this is easier said than done. College is a melting pot of students from all backgrounds. Spending Habits Most high school students have spending money, either from earnings or allowances. But with little need to pay for living expenses, many teens develop spending habits that become unrealistic when they must support themselves. Once young adult become accustomed to high-spending lifestyles it can be hard for them to develop new habits that contribute to long-term financial well being. In a recent survey of students (16 to 22 years old), 40 percent said they probably would buy a pair of jeans (or something similar) they really wanted, even if they did not have the money to pay for it. College students have very poor spending habits; wasting their money on a lot of things that they don’t really need. A most of them seem to make it a point to spend all the money that gets into their hands even if they don’t have to . Current financial literacy In a test of high school seniors’ understanding of money, the average score was just 57 percent. Financial literacy is an understanding of money and financial products that people can apply to financial choices in order to make informed decisions about how to handle their finances. Many individual nations have recognized the importance of financial literacy and created task forces to study their populations with the goal of offering education and outreach. A common place to see classes is in high schools, where students may be offered the opportunity to take some brief courses to prepare them for managing their finances after graduation. Students scored better on items of fact; scores would have been even lower if the test had focused only on applying knowledge in real-life situations. Later research noted that states with the highest average student test scores also had the lowest rates of personal bankruptcy. Money Choices Money is complicated. Students don’t just get it and spend it . It is not that easy because there is usually never enough. They have to manage it. It is all about deciding which is the most important and then using their money to meet those goals. Needs are things you must have. Wants are things you can live without. Many things are both wants and needs: Sometimes you need things and have a choice of prices. When you decide to pay more you are buying a want — not just a need. Other decisions can change something from a want to a need: If you promise to be in a wedding party you may need clothes. If you promise to donate money monthly to a charity, the donation is a need unless you are willing to break your promise. Financial Aid to college students Tuition is increasing at a rate faster than the standard of living. This coincides with a national increase in the length of time that it takes students to complete baccalaureate degrees. Students in apparently similar financial situations choose very different patterns of loans and employment to fund their education. Financial aid is usually provided based on a students need for it. Need-based scholarships are granted to those that are unable to pursue a college education due to monetary limitations. Students may start by applying for assistance from the government or any institution that offer financial aid to those poor students but diligent to pursue their dreams. College student and financial resource management When predicting student academic success, the inclusion of information regarding personal financial resources, attitudes, and behavioral measures is supported by current literature. Student financial resources affect retention high levels of debt and high hours of employment are cited as reasons for slower degree progress. Personal finance literature has demonstrated that personal financial stress is detrimental to worker productivity. Specifically, financial information is predicted to strengthen the model because information on students’ personal financial situation may be reflected in motivation to complete a degree as quickly and efficiently as possible and because personal financial attitudes and behaviors might relate, either positively or negatively, to the level of students’ commitment to their education. Including information regarding student financial resources, behaviors, and attitudes is not only important because of it is possible predictive value, but because these are factors that might be subject to the influence of policy or of educational efforts to assist students in better financial management. Financial problems and stress Students can hardly afford to live anymore, and few are living debt-free. Classes, combined with one or more jobs leave little time for a student to get required natural relaxation, like sleep, but most students must work to afford college. The money made might be enough to pay needed utilities and bills, and for most students, little is left for luxury, let alone unexpected expenses. Unexpected expenses like parking tickets are a little factor that adds stress to students lives. Finding a place to park in front of an overpriced, under furnished apartment that will not get one a ticket is not always easy, and sometimes, there is no other option, but to get a ticket. Lower parking prices would reduce some of the unneeded stress encountered daily. Another daily stress students must deal with is classes. More than a third of students in further education colleges think about dropping out because of lack of financial help (Learning and Skills Network). Many college students experience  financial stress. This can involve the struggle to find sufficient money to pay for tuition, as well as securing the funds needed to cover the costs of living while attending school. Even those students who are able to qualify for sufficient financial aid to cover immediate college costs have to cope with the financial stress of knowing that they will have to face paying back a large sum of money following graduation. The debt associated with student loans can be a source of stress, even long before finishing school and entering the job market. SUMMARY The road to college education is paved with good grades and hard work. But it also takes money to and knowing how to manage this financial aspect of a college student. Financial pressure comes in from any situations where money worries are causing stress. Financial stress is the outcome of this problem. College student are very vulnerable to finance stress. It is a stress common to affecting every college student. College degree is a necessity for students who want to have successful career paths in their life. To cope with the financial in capabilities of their parents they have to find other alternatives like applying for a part time job or offer their services to higher education institution granting working scholars or with student assistant program. CONCLUSION Students have many pressures to deal with. Pressure they deal with that occurs all times. This problem is a major issue to students everywhere. These pressures can occur in any level of educational career. Financial pressure can seriously affect the performance and health of a college student. In this kind of case, students who are currently experiencing financial pressure can’t actually focus on how they pursue their studies and activities that would soothe their needs of life as students. Especially to those students who are living alone with their life, they cannot express their pressures. Some students who have no family at all, will lose fate on pursuing their dreams and hopes because of this kind of pressure they were experiencing. Some students who are experiencing financial pressure are working and at the same time studying. Their studying activity is budgeted because they have lack of time because of their work just to earn money Recommendation Financial problems are one of the most common sources of a conflict of many students. The first step is to write down all of your monthly income and expenses. Make sure to track all expenditures, including small items such as lunch, magazines and others. This â€Å"spending diary† will help you figure out where your money is going. If you are overspending, it helps you identify and cut back on non-essentials. Review your lifestyle to determine whether or not you are living within your means. If not, makes pending adjustments. Find ways to cut back. Some examples could be: managing without a second vehicle, cutting back on eating out, taking in a boarder or student. Be realistic about what you can or cannot live with – think long term. Create a budget and stick to it. Set your financial goals and spending priorities. Goals give you a clear path to follow and help you determine your progress. The best goals are specific, achievable and supported by your family. One example of an achievable goal is to put money in your savings account each month. Change the behaviors that are creating stress. Understand that spending more than you make is a bad habit, and habits can be changed. Stay motivated by looking at the positive rewards for changing – including reduced stress and smoother relationships. This process takes discipline, but yields long term benefits. Financial precaution is one thing a student should understand. Spend money carefully. Don’t spend it on your first occasion. Practice frugality, it means to limit your expenses to the shortest level you can afford, without getting yourself out of the track, and still keeping you on the functional side also. Keep an eye on your expenses and see where you can cut a buck or two, without feeling you are depriving you of something.