The Impact of Financial Management on School Performance

This study examines the pivotal role of financial management in enhancing the performance of schools, with a particular focus on secondary education in developing countries such as Eritrea. While schools are primarily learning institutions, their success increasingly depends on how well they manage limited financial resources. The paper investigates how effective financial planning, monitoring, reporting, and internal auditing influence academic achievement. Utilizing both qualitative and quantitative data—including case studies and surveys of public secondary school bursars—the study identifies common financial mismanagement challenges and highlights successful strategies employed by high-performing schools. Findings suggest that strong financial systems contribute directly to improved educational outcomes, while weaknesses in budgeting and oversight hinder progress. The study underscores the importance of training school leaders in financial competencies and recommends policy reforms aimed at decentralizing and strengthening financial oversight in schools. Keywords: School Financial Management, Educational Performance, Budget Planning, Resource Allocation, School Leadership, Financial Accountability.