How Does Inflation Affect Students in the Philippines?

Inflation is a complex economic concept that impacts nearly every aspect of our lives. 

While it may not be the easiest thing to explain to the average Filipino, its repercussions are far-reaching and, surprisingly, they extend even to students in the Philippines. 

The importance of shining a light on this issue cannot be overstated, for only through understanding and acknowledging the challenges posed by inflation can we hope to find innovative and effective solutions.

In this blog, we’ll explore how inflation affects students in the Philippines and how we can help alleviate these challenges. 

Inflation’s Impact on Filipino Students 

Inflation is the persistent increase in the general price level of goods and services over time. This, in itself, has a cascading impact on students in the Philippines.

Inflation is the rate at which prices for goods and services are rising. When inflation is high, it means that students have to pay more for essential items like food, transportation, and tuition. This can have a significant impact on their ability to afford an education and can make it more difficult for them to graduate.

 Let’s look into the specifics of how inflation affects students in the Philippines:

• Rising Tuition Fees: One of the most direct consequences of inflation on students is the soaring cost of education. As prices rise, so do tuition fees. For the past few years, tuition rates have risen gradually. From 10.49 percent in the academic year 2019-2020, the average tuition rate jumped to 12.06 percent from 2020 to 2021. For students already struggling to make ends meet, this can be a considerable burden. Many find themselves in a position where they need to take on part-time jobs to cope with the rising educational expenses.

• Decreased Purchasing Power: With the purchasing power of the peso declining, students find it challenging to afford the essentials they need for their education. This includes textbooks, stationery, and even basic transportation to and from school.

• Reduced Financial Support: Inflation affects families’ budgets, often causing parents to reevaluate their ability to provide financial support for their children’s education. In some cases, students might even need to drop out of school due to financial constraints.

• Decreased Quality Education: Inflation can put a strain on educational budgeting, requiring institutions to make compromises in areas such as resources, faculty, and infrastructure, potentially jeopardizing the quality of education of the students.

What is the Current Status of Inflation in the Philippines?

To understand the gravity of the situation, it’s essential to have a grasp of the current state of inflation in the Philippines.

According to the Philippine Statistics Authority (PSA), the Philippines is currently experiencing high inflation. In August 2023, the inflation rate was 6.3%, the highest level over four years. This is due to several factors, including rising food and energy prices, the weakening peso, and supply chain disruptions.

The PSA’s Consumer Price Index (CPI) report for August 2023 showed that the inflation rate was 6.3%, up from 5.3% in July 2023. This is the highest inflation rate in the Philippines since October 2018.

Why Worry About the Impact of Inflation on Filipino Students?

Now how does all of this affect students in the Philippines?

Well, it isn’t just an issue limited to the realm of the cost of living. It also affects the quality of the education itself.

From being able to eat a healthy breakfast before school to fuel one’s body to the actual tangible essentials students need to be able to learn effectively, these are all affected by rising inflation.

The impact of inflation on students in the Philippines is undeniable, but the question is, why should we care? It’s not just about feeling sympathy for these students; it’s about recognizing that the future of the Philippines depends on the quality of education and opportunities available to its youth. 

Here are a few compelling reasons to care about how inflation affects students:

• Education is a Pathway Out of Poverty

Education is often seen as the key to escaping the cycle of poverty. When students are unable to access quality education due to inflation-driven price hikes, they are denied the chance to improve their lives and contribute positively to the country’s growth. Inflation, in this context, not only affects individual lives but also the nation’s overall development.

• Affecting the Nation’s Potential

Every student holds the potential to become a skilled worker, a brilliant entrepreneur, or a visionary leader who can drive the country forward. When inflation limits their access to education and forces them into low-paying jobs, this potential remains untapped. By addressing the issue of inflation, we are investing in the future of the Philippines.

• Building a More Equitable Society

Inflation exacerbates existing inequalities in society. The wealthy may not feel the effects of rising prices as keenly as those with fewer resources. By addressing the challenges that inflation poses for students, we take a step toward building a more equitable society where opportunities are accessible to all, regardless of their economic background.

• Scholarships and Grants

Scholarship endowments and budgets may struggle to keep pace with inflation, limiting the number of students who can be awarded scholarships or reducing the amount awarded to each recipient.

It’s Time To Take Action

Inflation isn’t just an economic concept that affects prices; it impacts the dreams, aspirations, and potential of students in the Philippines. It’s time to recognize that the consequences of inflation extend far beyond the balance sheets of businesses and government agencies.

It is a problem that seeps into every corner of society, affecting even the most vulnerable, such as students in the Philippines. The rising costs of education, reduced purchasing power, and the difficult choices students and their families are forced to make are concerning.

Several things can be done to help students who are struggling due to rising inflation.

• The government can provide financial assistance to students, such as scholarships and grants.
• Schools can reduce their fees and offer more financial aid to students.
• Businesses can offer part-time jobs and internships to students.
• Non-profit organizations can provide food, transportation, and other assistance to students in need.
• It can also start from individuals who are interested in directly contributing to helping communities.

However, it’s not a situation without hope. We can raise awareness, offer support, and create opportunities for students to overcome the challenges of inflation.

Some of us are privileged enough to still have the means to extend a helping hand to the students who are greatly affected by inflation and it would be a great opportunity for you to also contribute.

Let’s work together to ensure that students in the Philippines don’t miss out on the education they deserve due to the impact of inflation. Through our combined efforts, we can reach those who need help the most and create a brighter future for the next generation.

Want to Lend a Helping Hand?

Here at My Dream in a Shoebox, we are an educational advocacy program that does outreach activities to underserved communities. We achieve our objectives through our annual campaign and initiatives like our Dream Kits filled with school supplies and tools that they’ll need to pursue their education.

Education is vital to a child’s development. It is quite literally the foundation of their careers and how would they navigate their lives – and it’s our passion to help equip them with the proper tools and resources for them to have a brighter future.

Supporting My Dream in a Shoebox can help students get easier access to technology and resources. 

Here are some ways you can assist disadvantaged students by donating to My Dream in a Shoebox:

• Through Dream kits filled with school supplies and tools, essentials they’ll need to pursue their education.

• Helping build Educational Hubs that can provide an adopted school community with working laptops equipped with stable internet access and printing equipment.

• Donate to sponsor a scholar’s education for 1 year.

Together, we can create a brighter tomorrow for the next generation. Get involved, change lives, and pledge your support today!