This research, entitled as The Impact of Financial Model on the Quality of Education, is arnqualitative, interpretive, cross-national comparative study which explores, analyses andrncompares the institutional financing system of Tegbare-id and Selam to identify their nature,rnsimilarities and differences. Past scientific works related to the case were critically reviewed andrngaps were identified from the review which identified the major driving and impeding factorsrnthose affect education quality. Based on the gap identified from the review, empiricalrninvestigation were done to verify the literature analysis. The results of the study revealed thatrnthe technical and vocational education and training sector is circumscribed by numerousrnchallenges, which include under-funding, inadequate teaching and learning facilities, and poorrngovernance. Other serious challenges facing the sector which derived from the investigationrninclude inadequate qualified personnel and poor public perception of the sector. Therefore, thernfinancial system implementations in Tegbare-id is limited and poor in providing the muchrnneeded skills required for employment, economic and national development. The analysis wasrnsupported by descriptive statistical methods. To alleviate the challenges an improved financialrnmodel which fills the gaps and improves education quality of the case institute was developed.rnFinally, outcomes of the study were concluded and possible measures were recommended by thernresearcher.