INTRODUCTION

Background

For a majority of students, university attendance is the first time they have
experienced financial independence without a parent's supervision. With the expansion of
educational services in Malaysia, university or college students have become one of the
important purchasers in the market. With the available of educational loans, the students have
increased their buying power. Based on, Brenda J. Cude, Frances C. Lawrence, Angela C.
Lyons, Kaci Metzger, Emily Le Jeune, Loren Marks, Krisanna Machtmes, (2006) recognized
that, from the research is that some college students are not managing their finances well,
because they have not adopted the set of recommended practices.

Students in Malaysia nowadays are not aware of the effects when they tend to spend
money without hesitating. These have caused many financial problems to occur among
students. Due to culture shock, students become more excited about the new university life,
which they tend to explore without any boundaries. Today, we like to discuss about financial
problem among the students at DRB-HICOM UNIVERSITY AUTOMOTIVE MALAYSIA
(DHUAM). Based on Mohamad Fazli Sabri, Jariah Masud, Laily Paim, Tahira K.Hira&
Mohd Amim Othman (2008) recognized that financial behaviour and problems among
Malaysians, especially college students, since the concern over the role of young consumers
is relatively new.

Terms of Reference

This report is a group coursework for subject English for Business Communication (BAE
1044). This coursework was given to us during the first week of our lecture which was 19
November 2015. This report is about financial behaviour and problem among student at
DRB-HICOM UNIVERSITY AUTOMOTIVE MALAYSIA (DHUAM). The coursework
was given by Madam Intan Syahidah Binti Zulkafa. This report was written by BBA 1A
student who are Nur Aiena Shazwati binti Mohd Badli and Nur Husna binti Azmi. It will be
submitted on 15 December 2015 which is week 5.

1
Purpose and Scope

This report contains several objectives that we want to investigate which are:

To examine the financial behaviour and problem among DHUAM student

To seek the behaviour among student in managing their financial problem
To investigate the range of pocket money that DHUAM students get every month
To seek what the problem that DHUAM students faced
To investigate the DHUAM students make their saving

Method

The background information of this report was obtained from several webpage in the internet.
This study uses the survey method which is questionnaire that has been distributed to 30 of
DHUAM student that are randomly selected. The questionnaires contain three sections which
is section A: general information that consists of demographic based question and other basic
question about financial of the student. The second section is section B: the behaviour and
problem on financial which uses Likert scale as medium to extract the information. The third
section is section C: overall impression which is an open ended question to get the opinion
from the students. All of our group member evenly distributed the questionnaires between
male and female students and waited until the students finished answering the entire
questionnaire.

2
 FINDINGS

SECTION A: General Information

Figure 1: The percentage of Male and Female at DHUAM Students

Based on Figure 1, the gender that has answer this questionnaire are 15 from male students
and 15 are from female students. We distribute the questionnaire based on equal number of
students.

Figure 2: Resident for DHUAM Students

Based on Figure 2, 21 of DHUAM students that answer this questionnaire are staying at the
university hostel and nine students are staying off-campus.

3
 Figure 3: Education level at DHUAM

Based on Figure 3, the education level at DHUAM has two levels of categories which are
Diploma and Degree level. Most of them are from Diploma level which are 17 students, and
the rest are from Degree students.

Figure 4: DHUAM Students Financial Support

Based on Figure 4, financial support that student receive are from loan such as PTPTN and
MARA which are 18 student, Eight students receive from other sources such as zakat, and
family support, Fourstudentsreceive scholarship, from various companies under DRB-
HICOM.

4
 Figure 5: DHUAM Student Problem in managing their money

Based on Figure 5, 21 DHUAM students (70%) have problem in managing their money, and
nine (30%) of them still can manage their money well.

20
18
16
14
12 < RM200
< RM400
10
< RM600
8 > RM800
6
4
2
0
< RM200 < RM400 < RM600 > RM800

Figure 6: Amount of money that DHUAM students received per month

Based on Figure 6, amount of money that DHUAM students received below RM 400 are 18
students and the second highest is RM 600 below per month which is six students. Average is
below than RM 200 are five students, while just one student that received money over than
RM 800.

5
 Figure 7: Amount of money that DHUAM student spend per month

Based on Figure 7, the highest amount of money that DHUAM students spend per month are
below RM 400 which are 13 students. 11 students have spent their money less than RM 200.
The average of them which are four students spends their money less than RM 600, and only
two students that exceed their spending amount of RM 800.

Figure 8: Saving money among DHUAM Students

Figure 8 shows that, DHUAM student that have their own savings which is 17 students and
the rest of them 13 students do not have their own saving.

6
 Student Spend Money when received loan or
allowance

10%
7% Food
3%
Fuel
3%
Leisure

10% Saving
Shopping
67%
Others

Figure 9: The first thing that DHUAM Student does when received their loan or
allowance

On Figure 9 shows, the first thing that DHUAM student do when they received the loan or
allowance, most of them spending on their food which are 20 (67%) students. Three students
which are 10% spend on fuel and other things. Other than that, two students spend their
money on shopping which is 7%. On the lowest percentage but have the same percentages
saving and spend money on leisure time is only one student.

7
SECTION B: The Behaviour and Problems On Financial

Question 11
14

10

2 2 2

Strongly Disagree Disagree Neutral Agree Strongly Agree

Figure 10: I do not save because I think it is too hard.

Based on figure 10,the highest answer for this question is neutral which 14 DHUAM students
are. The second highest 10 students who are disagree. The others answer are same which are
two DHUAM students.

Question 12
16

7
3 3
1

Strongly Disagree Disagree Neutral Agree Strongly Agree

Figure 11: I always failed to control myself from spending money.

Based on figure 11, the highest answer for the questions is neutral which are 16 DHUAM
students, the second highest are seven DHUAM students answer agree and the lowest
DHUAM students answer are one for strongly disagree.

8
 Question 13
8 8 8

Strongly Disagree Disagree Neutral Agree Strongly Agree

Figure 12: I always overspend money when going out with friends.

Based on figure 12 , the answer of this question for neutral , agree and strongly agree are the
same which are eight DHUAM students and none of the DHUAM students answered
strongly disagree.

Question 14
18

6
4
2
0

Strongly Disagree Disagree Neutral Agree Strongly Agree

Figure 13: I always follow carefully my monthly budget.

Based on the figure 13, the highest answer for these questions are neutral which amount to 18
DHUAM students. For the second highest answered is disagree which are six DHUAM
students and none of DHUAM students answer strongly disagree.

9
 Question 15
11 11

4
3

Strongly Disagree Disagree Neutral Agree Strongly Agree

Figure 14: I plan to reduce my expenditure to save money.

Based on figure 14, for the answer of neutral and agree are the same which are 11 DHUAM
students. The lowest answer is strongly disagree which only one DHUAM students.

10
SUMMARY OF FINDINGS

From our findings we got that most of DHUAM students have problem in managing
their money. DHUAM students spend more their money on buying foods. The result of
findings that we find from this survey has answered our main objective.

Our opinion is, students must have their own saving to keep their money, and they should
make a saving as a habit that needs to practice. Start with a small amount of money to keep
saving for example RM 2 per day. Other than that, by saving money it can build discipline to
save money. It is also a key to having the life you want, for example by saving money you
can go to the vacation and buy the things that you dream of. Based on Furtuna (2008)
recognized that college students lack the basic financial knowledge and skills to ensure long-
term stability for themselves and their families

They also need to reduce their expenditure, buy only the thing that they need most, so they do
not waste their money on something that not important. Based on Noor Azizah
Shaari,Nurfadhilah Abu Hasan, Ramesh Kumar Moona Haji Mohamed,Mior Ahmad Jafri Md
Sabri,June (2013), recognized that who suggested that there is a critical need for children
begins instilling a culture of saving in the early age and also exert that financial educators
should conduct the reasons to save instead of the ways to save.

11
 CONCLUSION

The conclusion that based on these findings is, majority of DHUAM students have
problem in managing their own money, and they used their money to buy food and spend on
something that are not important. Most of them overspend their money by not following the
monthly budget that they have planned. Financial support that student received are from loan
such as PTPTN and MARA. Some students received from zakat, and family support and
DHUAM student also received scholarship, from various companies that are DRB-HICOM
subsidiary.

The first thing that DHUAM student do when they received the loan or allowance,
most of them spending on their food. Some of them spend on fuel and others are also on the
same average. The lowest average of first thing student do when received allowances are
saving and spending money for their leisure time .In the future, student can manage their
money very well if they use wisely.On top of that,nowadays there are a lot of financial
advisorsthat can give advice on financial for the example AKPKcounsellor and many more
that they can show how student or people to managing their money very well. AKPK are
stand for Credit Counselling and Debt Management Agency, or commonly known as Agensi
Kaunseling dan Pengurusan Kredit (AKPK), is an agency set up by Bank Negara Malaysia in
April 2006 to help individuals take control of their financial situation and gain peace of mind
that comes from the wise use of credit. Based on Jariah, M.A.R Husniyah, P.Lalaily, &S.britt
(2004) recognized that with the proper educational support about living independently,
students can reduce their chance of obtaining unnecessary debt from educational loans.

12
 RECOMMENDATIONS

Based on the financial problem of DHUAM students there are several ways to overcome this

problem:

1. First thing to do when receiving allowance is to reserve some money for emergency.

For example, about 10% from the allowance received.

2. Students must determine the important thing to buy.

3. Create a budget on how much should students spend money for food per day.

4. Do not overspend the money with entertainment such as watching movie at cinema or

going for karaoke.

5. Avoid coming to college using car. Use alternative ways such as public transportation

or going to college by bicycle.

6. Sharing car with other students can also reduce money for buying fuel rather than

driving alone.

7. Avoid eating at expensive places. Search for cheaper places to eat.

8. Only go for desire thing if students having extra money to save before getting their

allowances.

13
 APPENDIX

SECTION C: Overall Impression

16. What do you think would happen 17. What is the best way to
manage your money?
if you do not manage your money
well?
I will have no money. Save what left.
I will not have enough money Buy what we really need or
every month. want.
I would be face with problem Save to another bank
managing my money. account or save in Tabung
Overspend and less saving. Haji.
Lack of money. Reduce the cost.
Diet. Buy the only things that
Huge debts. most needed.
I will not eat any food tomorrow. Saving for future.
I will spend my money over then Do saving.
I receive it. Not cash out the money
I would be face with many from bank.
problems about money. I must follow carefully my
I will totally corrupt and this will budget.
affect my other problems such as Eat according based on
study. current financial.
My monthly budget does not go Cut off the wants.
well. Just buy something you
I cannot buy thing or food that I only need.
want and I will be stress it will Made plan for future
affect my study. emergency.
Using a lot my parents money. Discipline yourself from
At the end of month I do not have not over use your money.
money to use. Withdraw exact money.
I maybe do not have enough to Always separate the saving
pay the tuition fees. first.
I waste my money for something Somebody help me to
that not so important. manage the money.
I need to work part time to cover Give to my mom to save
my own saving money. the money.
Get some advice from
financial assistant.

14
 REFERENCES

Reference List

Brenda J. Cude, Frances C. Lawrence, Angela C. Lyons, Kaci Metzger, Emily Le

Jeune,

Loren Marks, KrisannaMachtmes, (2006). College Students and Financial Literacy:

What They Know and What We Need to Learn, retrieved from

https://www.cgsnet.org/ckfinder/userfiles/files/College_Students_and_Financial_Liter
acy.pdf

Furtuna (2008) College Students Personal Financial Literacy: Economic Impact and
Public

Policy Implications.Undergraduate Economic Review: Vol. 4: Iss. 1, Article 1,

retrieved from

http://digitalcommons.iwu.edu/uer/vol4/iss1/1

Jariah, M., A. R. Husniyah, P. Laily, & S. Britt.(2004). Financial Behaviour and

Problems

Among University Students: Need for Financial Education. Journal of Personal

Finance, retrieved from

http://www.childfinanceinternational.org/component/mtree/kb/global-
platforms/financial-education/financial-behavior-and-problems-among-university-
students-need-for-financial-education

15
 MohamadFazliSabri, JariahMasud, LailyPaim, Tahira K. Hira,&Mohd.Amim.
Othman

(2008).Financial Behaviour and Problems among College Students in Malaysia:

Research and Education Implication, retrieved on

http://www.consumerinterests.org/assets/docs/CIA/CIA2008/56.sabrimasudhiramacd
onaldpaim.pdf

Noor AzizahShaari,Nurfadhilah Abu Hasan, Ramesh Kumar Moona Haji

Mohamed,Mior

Ahmad JafriMdSabri,June(2013).Financial literacy: A Study Among The University

Students, retrieved from

http://journal-archieves33.webs.com/279-299.pdf

16