Chapter II

REVIEW OF RELATED LITERATURE

According to Hassan F. Gholipour, in today's fast-paced and a consumer-

driven world, it is easy to get caught up in the pursuit of material possessions and an

equate financial success with happiness. However, numerous studies have shown that

true financial satisfaction is not solely dependent on the amount of money or

possessions one has, but rather on the ability to manage and allocate resources in a

way that supports our individual needs, aspirations, and values.

Choosing maybe difficult and sometimes unpredictable process but it is mainly

seen from one perspective we can find of articles that give advice on how to make the

best decision but we do exact result what made a person choose a college over another

one. So a college can be also seen as product it is important to know the candidates

expectation and to determine his her motivation many would say that the main

influence is the passion for a particular field but there are few who know exactly that

they want to become when they graduate high school which lead into us thinking that

there are other significant motives. Therefore, the purpose of this study to determine

the most important characteristics which take part in the process of the decision. in

order to understand how the students, make choices between universities. A survey

was conducted (collecting the qualitative information from STI college Legaspi of

grade 12 students) form which we extracted the ideal profile of college and the

satisfaction concerning the choices made by students. The result gives a general view

on what the students expect from the university.

Research by Smith et al. (2023) indicated that students from low-income

families were less likely to attend college and more likely to drop out.

Several studies have explored the impact of financial status on college access and

success.

One study found that students from low-income families were less likely to

attend college and more likely to drop out.

Another study found that financial aid can help students from low-income

families succeed in college.

According to Arifin (2018), the study found that elevated degrees of

financial satisfaction were linked to better academic performance, elevated graduation

rates, and increased student engagement. This suggests that when students feel

financially secure and satisfied, they are able to focus more on their studies and

perform better academically. How people handle their finances to get the items they

want in order to meet their financial demand determines their level of financial

pleasure.

This part presents the review of related literatures and studies which may

strengthen and support this study. Aspiration of Students College as a complex period

includes tons of opportunities in positive and negative areas and great perceptions for

exercising independence of one’s self. The degree of performance a person aspires to

is the level at which they establish their most essential objectives; a person's

aspirational level has a substantial effect on personality and adaptability, it is an

integral component of an individual’s sense of self. Academic aspiration may be

influenced by both internal and external factors (Othman, Nordin, Nor, Endot, Azmi,

Ismail, & Yaakob, 2013). It should be regarded as a fundamental component of the

desire to succeed, functioning in life similar to a self-fulfilling prophecy, and it is

important that this must be the case. Student and academic aspirations have always

been done to evaluate the role that school serve or the influence they have on the

students’ aspirational levels (Quaglia, 2000). In particular, with respect, people

formulate their aspirations in order to provide meaning to the courses of they decide

to take in their lives.

Education and Academic Motivation

Financial status has been found to influence academic motivation, particularly

among high school students. A study conducted in the Philippines revealed a weak yet

statistically significant positive correlation between financial status and academic

motivation. This suggests that while financial stability provides a slight motivational

boost, internal factors such as intrinsic motivation play a more significant role in

driving academic performance (Palomares et al., 2024).

In the context of female students' retention in public secondary schools in

Kenya, family financial status was identified as a critical factor. Poor financial status

often leads to dropouts, emphasizing the need for economic support to ensure

educational continuity, particularly for female students (Nzina et al., 2019).

Financial Literacy and Management

Financial literacy is significantly influenced by socioeconomic status and

education level, as evidenced by a study in Tanah Datar Regency. The research

indicated that higher socioeconomic status and education levels positively correlate

with improved financial literacy, regardless of gender (Alfikry & Akbar, 2023).

Family financial education also plays a crucial role in fostering financial literacy

among students. A study in Indonesia highlighted that family-based financial

education significantly influences students' financial literacy, while parental

socioeconomic status has a less direct impact (Ayuninggar et al., 2024).

College degree preferences

College degree preferences are influenced by a variety of factors, including

personal interests, career opportunities, and social dynamics. Research indicates that

students often select degrees that align with their interests and perceived opportunities

for employment. This selection process is complex and can be affected by external

factors such as family support and peer influence. The following sections elaborate on

these key aspects.

Influential Factors in Degree Choice

Personality Alignment: Holland’s theory suggests that students select majors

congruent with their personality types, indicating a strong link between self-

perception and degree choice(Pike, 2006).

Social Influences
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Family Support: Family plays a crucial role in shaping students' decisions,

although its influence is less significant compared to personal interests and

opportunities(Tahil, 2021).

Peer Influence: While peers have some impact, it is generally less influential

than personal and family factors(Tahil, 2021).

Conversely, some argue that external constraints, such as institutional

restrictions or economic factors, can limit students' choices, leading them to select

degrees that do not align with their true preferences(Artabe & Gardeazabal, 2017).

The financial status of individuals significantly influences their college degree

preferences, shaping both the choice of majors and the perceived desirability of

institutions. Economic conditions, such as financial crises, can lead to shifts in

academic interests, with students gravitating towards fields that promise better job

security and prospects(Goulas & Megalokonomou, 2015). Additionally, students'

perceptions of institutional financial accessibility affect their attitudes towards

colleges, with those receiving financial aid favoring more exclusive

institutions(McClenithan, 2013). Furthermore, parental wealth plays a crucial role in

college attendance and completion rates, with disparities evident between high and

low-income families(Johnson, 2020). Lastly, the financial context of institutions

impacts the likelihood of degree completion for low socioeconomic status (SES)

students, highlighting the importance of institutional resources(Titus, 2006).

Economic conditions significantly influence students' perceptions of desirable

academic programs, shaping their choices based on job security and financial

accessibility. Economic downturns, such as the Great Recession, have been shown to

depress educational expectations, particularly among students from lower

socioeconomic backgrounds, leading them to favor programs with better job

prospects(Goulas & Megalokonomou, 2015)(Salazar et al., 2020). Additionally,

perceptions of institutional exclusivity affect desirability; students receiving financial

aid tend to favor more exclusive institutions, while those without aid may view them

less favorably(McClenithan, 2013).

Perceived Financial Accessibility

Students' assessments of academic programs are influenced by the perceived

financial accessibility of institutions.

High exclusivity institutions are rated more favorably by students receiving

financial aid, highlighting the role of financial status in shaping

perceptions(McClenithan, 2013).