James and Eunice

Poor Financial Management Skills among University Students

Overview

• Introduction
• Purpose of study
• Methodology
• Results and Findings
• Discussion
• Conclusion
• Recommendation

Introduction

The lack of awareness among society on the spendthrift attitude of university students is causing an imbalance in social economics. There is an imbalanced financial standing where the riches are very wealthy and the not-so-prosperous are living below average means and the people with average incomes are decreasing. This is becoming more relative to students’ financial standings in Malaysia. For those who do not have the habit of saving or creating wealth for themselves are in heaps of trouble in the near future especially when reality strikes after graduating. What are the causes and effect of this issue on university students and their future if it is not stopped soon? When they spend unnecessarily, where do they spend most consistently and what services do they get?

Methodology

• Questionnaires
• 55 copies distributed
• 40 copies returned
• 72% respondent rate
• 52.5% female | 47.5% male
• Mode age : 18 years old
• asked on scale type, rating, objective and subjective

Financial literacy was measured by testing for correct answers on 6 main questions

Results and Findings

Are University students overspending unnecessarily?

If yes, what were they spending on

What are the reasons for this spendthrift attitude?

Whats the best way to prevent and stop this from prolonging?

Discussion

Awareness

• 38 people out of 40 agree that "students spend unnecessarily"
• Many people are aware of the situation
• Still occuring
• So, being aware doesn't help stop the issue

Items of expenses

• F&B scored the highest among students
• Followed by entertainment, shopping, technology, accessories, alcohol & cigarette
• Urban cafes, western foods, fine dining are becoming more popular in Malaysia

Reason of spendthrift attitude

• Many selected the achievement of a certain feel to spending lavishly to be the reason
• Others think it is related to trying new things
• Also, few thinks its is to fit in and some other are pressured by peers.
• Virtual feeling that doesn't last but its like an adrenaline rush, want to keep getting it

Prevention and Cure

• A high number of 32 people voted for Self-discipline to be the best way
• Although some thinks bad influences like friends who do not control should be avoided,
• self discipline still comes in next by awarding self if achieve savings target
• Lastly, the least rated is to hold campaigns
• No one can help/convince you better than your own will

Conclusion

Most people are aware of the occurring bad financial habits among university students. They spend mostly on F&B; entertainment is not too far off. When spent, they achieve a short-termed rush of enjoyment and like to try new things that brings them this feeling.

Recommendation

To prevent or stop the issue

• Savings help decrease financial problems
• Self discipline should be practiced since young
• Socialization agents like family and friends also act a big role in preventing this issue
• No help can convince an individual without one's self will

Untitled Slide