The purpose of this study was to assess the practices and challenges of financial resource management in public secondary schools of Metekel Zone. For this study, descriptive survey research design was employed to gather both quantitative and qualitative data. The researcher used questionnaire, interview, and document review as data collecting instruments. Two groups (56 academic staff and 56 administrative staff) from selected three woredas & seven schools of respondents participated in this study. Multi-stage sampling technique was used to select the samples. The collected quantitative data were analyzed by using descriptive and inferential statistics like frequency, percentage, mean, standard deviation, p-value & t-test while qualitative data analyzed thematically in words. Accordingly, the major findings of the study revealed that very low implementation of finance rule & regulation in practicing financial resource management activities and low stakeholders participation in the area. Incompetency of finance personnel, lack of transparency and inappropriate budget planning gaps were major problems in financial resource management practices in the study area, but these school problems could be improved through continuous training, monitoring & supervision and experience sharing directly with finance experts. Based on the findings the following conclusions were drawn. The practice of financial resource management activities(budget planning, accounting, purchasing, auditing & reporting) were very low due to low participation of stakeholders, lack of transparency and low implementation of finance rule & regulation which affected the management of financial resources as well as the contribution of stakeholders to increase the educational finance. Based on the finding of the study, the researcher recommended that all the stakeholders try to participate actively in financial management system and the school concerned bodies try to hire competent finance personnel, provide in-service training, sharing experience with schools & finance experts, give monitoring & support for schools in accordance with the existing financial guidelines, regulations and principles of ministry of finance to minimize the stated problems.