ABSTRACT

The main aim of this study is to assess university students to examine ; the causes,effects and on
how they handles the financial problems.Data were collected among students from Faculty of
Mechanical Engineering,UTM, which is male and female students between 19 and 22 years of
age were randomly selected for the study and 100 questionnaires were distributed to the
students.Results show that respondents answer about 60% of questions correctly.

ACKNOWLEDGEMENTS

First and foremost, all praise be to Allah, the Almighty, the Benevolent for His blessings and
guidance for giving us the inspiration to embark on this research and instilling in all of us the
strength to see that if this research would be a success. We would like to express our gratitude to
all who have helped along with this research especially to Madam Nur Salwa binti Abdul Wahid.
Along this research, she gives us a lot of advices and guidance to complete our research. Also, a
big applause for our group members whose give a lot of hard work in the process of planning,
researching, writing and editing for our report. We are also especially indebted and grateful to the
students from Faculty of Mechanical Engineering, University of Technology Malaysia, Skudai
for their cooperation in this project. We would like to extend our appreciation to University of
Technology Malaysia for providing us with the facilities vital to the completion of this research.
Table of Contents

Abstract
Acknowledgements
Table of Contents
List of Figures

1.0 INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Purpose of the Study
1.4 Objective of the Study
1.5 Research Questions
1.6 Significance of the Study
1.7 Scope of the Study

2.0 LITERATURE REVIEW

2.1 Causes of Financial Problems among Students
2.2 Effect of Financial Problem among Students
2.3 Ways To Overcome Financial Problem among Students

3.0 METHODOLOGY
 3.1 Introduction
3.2 Research Instruments
3.3 Respondents of the Study
3.4 Research Procedure
3.5 Data analysis

4.0 FINDINGS AND DISCUSSION

4.1 Introduction
4.2 Gender of respondents
4.3 Year of study of respondents
4.4 Causes of Financial Problems among Students
4.5 Effects of Financial Problems among Students
4.6 Ways To Overcome Financial Problems among Students

5.0 CONCLUSION

6.0 RECOMMENDATIONS
6.1 Recommendations based on Findings
6.2 Recommendations for Future Research

BIBLIOGRAPHY

APPENDICES
Appendix A: Questionnaire
Appendix B: Work Schedule
 LIST OF FIGURES

Figure 1: Gender of respondents

Figure 2: Year of study of respondents
Figure 3: Causes of Financial Problems among Students
Figure 4: Effects of Financial Problems among Students
Figure 5: Way to Overcome Financial Problem (Financial Education)
1.0 INTRODUCTION

1.1 Background of the Study

Financial are connected with money and finance. Financial management concerned with
the managerial significance of finance techniques. We have the notion that to be educated is to
have a better life with stable economic status. Institution or college is the first chance for many
young adults to learn on how to manage financial and make significant financial decision on
their own. Economy crisis on 1998 affected badly to our country as its take a long time to
stabilize the economy. However, students in Malaysia nowadays are not aware of the effects
when they tend to spend money without hesitating. These has caused many financial problem
occur among students.

Many of government and private institutions students receive scholarship and loan from
any corporation. They have a problem on managing their financial along the semester. Due to
culture shock, students become more excited about new university life that they tend to explore
without any boundaries. Early of semester, most of them used up most of the money on
something unnecessary connected to their lifestyle and having a financial crisis on late of
semester. Most of the female students have financial planning which help them to avoid financial
problem. Budgeting is important as it is a way to save and spend money. Budgeting means
tracking where your money goes, so you still have some at the end of the month. This study is to
compare and observe financial management between male and female students in University
Technology of Malaysia and to find out the main factors which lead the financial problem
occurs.

1.2 Statement of Problem

This study examines the financial behavior and financial knowledge on perceived
financial problems among students. Finance problems will differ against gender. Poor financial
management is one of the most causes of financial problems. Other causes are financial
socialization and lack of financial education. For majority of the students, it is the first time they
have experienced financial independence without parents guidance. They did not have
sufficient knowledge and skills about managing their financial affairs. They fail to manage their
financial when they do not have discipline in their budgeting and spending money. They spend
more than they earn. So at the end of this research, we will find out the main cause of financial
problems and how to manage this problem.

1.3 Purpose of the Study

College students always have financial problem. In response to this problem, a special
research was set up. The purpose of this study was to explore the main cause of financial
problem whether from students attitudes, role of socialization or the students knowledge about
financial. We also want to know the effect that students will face when they have financial
problem. Apart from that, this study was designed to give better solution for students to
overcome this problem.

1.4 Objectives of the Study

The objectives of this study are:

To determine whether FKM students plan their finances.
To identify the main causes of financial problem among FKM students.
To compare financial management strategies between male and female students.

1.5 Research Questions

How do the FKM students manage their finances?

What are the causes of financial problem among FKM students?
What is different between male and female students in manage their finances?
1.6 Significance of the Study

Money management is an important concept that college students should get to know.
From keeping track of what you have, to knowing how best to spend it wisely. So, student should
know about financial knowledge. This study is to know the main factors that cause financial
problem among students. These factors will help students of the ways to overcome their problem
by managing their money proper and wisely. Proper financial management is important as
students nowadays will hold the status of next leader of the country. 1998s economy crisis gives
lots of effects to Malaysia and other country. This study also might be a way to avoid economy
crisis happen again by reviewing them a proper financial management. This study also help
student when they graduated soon. In future, they must have a proper financial planning as some
of them will have to repay their education debts. In conclusion, there are many significances
from this researches since it will benefit students.

1.7 Scope

This research will involved the participation of 100 respondents divided equally to 50
male and 50 female. The respondents who were among FKM students were randomly selected.
The data collected via questionnaires were distributed in two weeks time.
2.0 LITERATURE REVIEW

This chapter will discuss about the literature review of financial problems. Literature
review is the summary and synopsis of a particular area of research. It is needed to be conducted
in order to find the causes, effect and how to overcome the financial problems among students.
We use a lot of resources in order to find more information about our research. This research
seeks to address the following matters to determine whether FKM students plan their finances,
identifying the primary causes of financial problem among FKM students and compare financial
management strategies between male and female students.

For majority of college students, it is the first time they have experienced to manage their
money independently without parents supervision. Poor financial attitude is the main cause
students are facing financial problem. Besides, financial socialization and lack of financial
knowledge also will lead to financial problem. When students have financial problem, it will
affect their psychological, health, academic achievement and debts. So, we need to find the
effective ways in order to solve this problem.

2.1 Causes of Financial Problems among Students

2.1.1 Financial Attitudes

One of the essential skills that students should gain to function in our society is
the ability to deal with money. Financial attitudes significantly predicted financial
problem.

Many researchers have all agreed the one of the primary causes of poor financial
behavior is due to financial attitudes. Research found that the main cause of financial
problem among students is their attitude (Falahati et al, 2011). Attitudes towards money
and the meaning of money have also become important topics for research in the area of
economic and consumer psychology (Tang, 1995) cited in (Dowling, Corney & Hoiles,
2009). Besides that, Lim & Teo (1997) cited in Dowling et al. (2009) stated that financial
attitudes was the causes of financial problems among young people. Other researcher
Godwin, 1994; Parotta & Johnson, 1998; Dowling et al., 2009 found that the most
common factor of financial problems among adults is how they manage their finances.
Nellie Mae (2002) cited in Borden, Lee, Serido & Collins (2008) said that lack of
experience in financial management may be particularly harmful to students financial
futures. Furthermore, Muske & Winter (2001) cited in Borden et al. (2008) also claimed
the importance of college students gain effective money management practices, including
regular review of bank & credit card statements, budgeting, disciplined spending,
financial record keeping, and planning for taxes, insurance, investment, retirement, and
estate issues.

Significantly, according to Hayhoe et al. (2000) cited in Borden et al. (2008)

female students were more likely practices budget, disciplined spending, financial
record, bills and receipts keeping, and save regularly. Henry et al. (2001); Borden et al.
(2008) supported this statement by indicating that females students were more likely to
have a budget than male students. While Davies & Lea (1995); Borden et al. (2008)
found that male have more tendencies to have debts than female. Recent research
reported that males debt creates problems (Masud et al., 2004). Besides that, previous
research reported that students being involved in the abnormal buying behaviors.
Abnormal buying is when consumer spend their money they feel exciting, spontaneous,
feel out of control, has a greater than normal desire for the product and very little
willpower (Hira, 1997).

2.1.2 Financial Socialization

Usually, financial behavior of college student is learned through the

socialization process. What adolescent observes and learns during childhood is the great
importance in shaping patterns of adult behavior.
 According to Ward (1974) cited in Sabri & Falahati (2012) financial socialization
defines as the process where young people acquire skills, knowledge and attitudes
relevant to their effective functioning as consumers in the marketplace. This statement
has been supported by Bowen (2002) cited in Solheim, Zuiker & Levchenko (2011),
where it stated that financial socialization is a learned process of acquiring knowledge
about money and money management and developing skills in various financial practices
such as banking, budgeting, saving, insurance, credit card use. Some researchers have
extended that definition include norms, attitudes, motivation and behaviors as the social
process to the young people (Hira, 1997).

According to (e.g. Britain 1963; Churchill & Moschis 1979; Moore & Moschis
1981; Robertson 1979) cited in Mascarenhas & Higby (1993) financial socialization
influences are peer, parents and media. It arguing from Hira, (1997) that financial
socialization basically influenced by family, peers and mass media. Recent studies show
that family play an important role in consumer socialization (Moschis, 1985). The family
can be believed as the main consumer socialization agents (Ernest & Theuns, 2001).
Besides, family is the primary agents of consumer socialization over the past three
decades (Ernest & Theuns, 2001; John, 1999; Carlson & Grossbart, 1994; Hempel,
1974).Furthermore, parents play a significant role in shaping a childs financial habits
and values (Sabri & Falahati, 2012; Pinto, Parente & Mansfield, 2005). Besides, parents
have been shown to be an important role in the process of consumer socialization that
transmits financial attitudes and behavior to adolescents (Chowa, Despard & Osei-Akoto,
2012; American Savings Education Council, 1999; Danes, 1994; Employee Benefit
Research Institute [EBRI], 2001; Sallie Mae, 2009). On the other hand, ( Bandura, 1986)
cited in ( Solheim et al 2011) suggest that family communication is an important process
to teach young people.

Previous studies have reported sociologists suggest that young people learn the
symbolic meaning of goods from their peers (Riesman & Roseborough, 1985; Parsons et.
al, 1953) cited in Churchill & Moschis (1979). Peers transmit financial attitudes and
behavior to adolescent as the same as their parents transmit those values (Chaplin &
Roedder, 2010). Chaplin & Roedder (2010) claims that peer are often seen as more
important than parents in influencing the adoption of materialistic values. This statement
have been supported by Odabasu, 2002; zgen, 1995 cited in Hatya (2009), peer groups
are important socializing factors that contribute to effective learning about consumption
elements such as monetary values and social motivation.

Mass media such as television, radio, newspaper, and internet plays an important
role in the socialization of individuals as a consumer (Hayta, 2009). Research that
support these statement revealed that media was the second most important process of
consumer socialization ( Lanhance & Legault, 2007) cited in ( Sabri & Falahati, 2012).
Ward & Wackman, 1971; Moore & Stephens, 1975; Churchill & Moschis, 1979 stated
that young people may pay attention to television commercials and discuss them with
their peers. Besides, children pay more attention to the social aspects of being a
consumer (John, 1999) cited in (North & Kotze, 2001).

2.1.3 Financial Knowledge

Financial knowledge seems more important now than ever. It has an important
implication for financial behavior.

Financial knowledge is define as a meaning-making process in which individuals

use a combination of skills, resources and contextual knowledge to process information
and make decisions with knowledge of the financial consequences of that decisions.
Huston (2010) said that financial knowledge is the need of financial education in order to
manage the financial.

From the result of the research, Hira & Danes (1987) stated that student who has a
high level of knowledge about insurance also will have a high level of knowledge about
personal loans and overall financial management. Besides that, the researchers reveal that
actually college students usually know general facts about money managements topics,
but they lack knowledge in specifies.
 On the other hand, Cude et al (2006) found that parents also need to know about
financial knowledge as students reported that their parents influenced their money
management behaviors. This statement has been supported by Lusardi et al (2010) where
they found that adolescent gain their financial knowledge through their parents.

Significantly, the researchers conclude that men are more knowledgeable about
finance than women (Chen & Volpe, 2002). In another research done also say that women
proved to be the least knowledgeable about finance than men (Lusardi et al, 2010).

2.2 Effect of Financial Problem among Students

2.2.1 Psychology

Financial problem may affect psychological of student if the problem gives a big
stress to them. Kobasa, 1979 state that An individuals reaction would be more adaptive
if the event is perceived as challenging rather than threatening. Mention by Connen,
body will response to threatening event in several elements such as heart rate,
perspiration, and hearing. Otherwise, it will be difficult to cope if it is exceeding ones
capability (Cooper. 1998). Based on Cohen, Kessel and Gordon, 1995, it may result in
psychological and biological strains that will increase the risk of mental and physical
health problems. This also may lead to an outcome of a stressful life.

Stress is a form of psychological disturbances causes by pressure outside world.

Referring to Wikipedia, stress is a feeling of strain and pressure in psychology. Hans
Selve (cited by Chris Brewin, 1998) studies that the term stress is referring to a kind of
defences against any form of stimulus including psychological threats. As stated by Chris
R. Brewin, 1998, stress may result in disturbances such as riots, crime and mental illness.
There are some personalities shows that they are having a stress such as depression
(Billings & Moss, 1984; Landreville, Dube, Lalande & Alain, 1995), negative moods
(John, 1995; Smith, 1988), and self-esteem (Edwards, 1998; Rector & Roger, 1997).
 Kraepelin (1921) described that depression is one of mental disorders. One who
had depression will tend to lose interest in normal activities and looks gloomy. Moreover,
stress will also exist as negative mood. In a study conducted by Niedenthal and
Setterlund (1994), current mood tend to affect individuals judgements and perceptions.
Negative mood is connected to depression as described by Chris R. Brewin (1998).
Another personality is self esteem which the meaning is noted by Franklin Watts (2004)
where it is about valuing us based on our feelings and not facts.

2.2.2 Physical Health

Since student tends to feel stress when having financial problem, it will also affect
their physical health. They tend to face not enough sleep or insomnia, headaches and
digestive problem as mentioned by James H. Humphrey, 2003.

Repeated loss of sleep night after night may results in poor health. Stress is the
main cause of having lack of sleep as discussed by James H. Humphrey, 2005. Sleep
plays important role as it maintaining normal daily brain keep functioning well. Majority
of the surveyed of his studies admitted that their mental capabilities suffered when they
were not having enough sleep. James H. Humphrey also says that lack of sleep may affect
in maintaining concentration in learning and performance.

Headache is one of tension type which is focused on stress and muscle

involvement. Wittrock DA and Myers TC, 1998, cited by Frank Andrasik, David A.
Wittrock and Jan Passchier, 2006 had conducted an examination and concluded that stress
is one of the factor of headache.

2.2.3 Academic Achievement

When students have problem in financial, they tend have a problem in class such
as concentration. Lose of concentration in class may affect students academic
achievement. In previous studies conducted by Dr. Fauzia Khurshid, KawishTasswar and
Farah NazQasmi (2012), they conclude that most of the students agree that financial
stress affect negatively their academic achievement. Meanwhile, Maslach (1998) proved
that according to the multimensional theory of burnout, the stressors above may lead to
the feelings of emotional exhaustion, depersonalization and reduced personal
accomplishment. These kind of feelings will also lead to academic failure and affect
someone profession.

Furthermore, some of the students who have financial problem tend to have a part
time job to earn pocket-money. A previous research, Jessica J. Richardson, Simon
Kemp, Sanna Malinen and Steve A. Haultain (2012) study the relationship between part
time job and academic achievement of young adult educational and conclude that the
number of hours they use for part time job decrease the number of hours for studying and
affect their GPA. In addition, Florence A. Hamrick, Nancy J. Evans and John H. Schuh
(2002) conclude that student who work part time job are tend to drop or take longer time
to complete their academic program. Besides, if the works are related to their academic
major, it has a potential that it will bring positive relationship to practical competence.

2.2.4 Debt

Nowadays, issues of debt are everywhere in society and this financial problem
also associated with debts. Recent study of NIBUD views the combination of students
and debt. J.J.A Braspenning, 1987, said that there are many kind of debts related to
student such as study loans and loans from parents or friends. Spending is not always a
rational action. Spending money may be a way to avoid painful feelings. For many of
them, spending is an escapist reaction to debts and depression (Dr. Teresa Sullivan &
Nick Repak, 1998). Otherwise, Dr Teresa Sullivan, 1998 argued that student who loans
for some living expenses also seem to increase the accumulation of debts. J.J.A
Braspenning also state that the amount of financial knowledge and skills on financial
decision making influences debts problem.
2.3 Ways To Overcome Financial Problem among Students

2.3.1 Financial Education

The ability to manage personal finances had become increasingly

important in todays world.Throughout 1990s, issues related to financial literacy
among students will enhance knowledge concerning financial behavior. Most of
the recent studies focused on the financial planning of students because many of
them fail to plan their expenditure. However, it is generally accepted among
researchers that, financial education is the key to decrease financial problem.
Concerning the importance of financial education, Brennan and Ritter (2004)
indicated that, financial education plays a key role of financial empowerment.
Furthermore, Elliot (2000), Fox et al. (2005), and Peng et al. (2007) states that
financial education programs have been identified as a key to improving financial
knowledge and promoting personal financial responsibility. Besides that, Hilgert
and Hogart(2003) states that, financial knowledge is one of the strongest predictors
of financial behavior among students. Apart of that, Kempson et al. (2006) argued
that financial skills and ability as the knowledge and understanding, allows people
to acquire the skills to deal with everyday financial matters and make the right
choice.

2.3.1.1 Opinions on personal finance by gender

The ability to manage financial resources can lead to personal financial

satisfaction. The opinions on personal finance by the gender slightly difference between
male and female students. Young adults often begin their university without having much
financial knowledge and skills concerning financial issues. Surveying financial literacy
among students, Harris (1993) and Volpe et al. (1996) concludes that women know less
about financial management than men. In fact, Alcon(1999) claims that women share a
larger burden of raising families, start to work later and earn less during their careers, live
longer, have inadequate pension and survivors benefits and face more challenges in
financial management. In recent studies, Volpe (1996) argued that women have less
personal finance knowledge than men. Furthermore, Goldsmith (1997) suggests that
women have lower scores than men because women not interested in the topics of
Investments and Personal Finance.
2.3.1.2 The Role of Academic Adviser

Advisers should work just as hard to encourage and instill financial literacy
in advisees as they impart tips for academic success. Most of the universities have more
general courses and programmes such as seminar, campaign and counseling for students.
Many researchers have suggested that a lack of financial knowledge and skills results in
students experiencing financial problems. The evidence indicates that financially
educated people and those having an understanding on how to spend the money
effectively improve their financial problem, Fitzsimmons et al. (1993). According to
Sutton (2002), the role of academic advisers is extremely important to have basic
understanding of the higher education financial climate and the ways that students can
obtain aid. So, with the help of academic advisers, students may be able to decrease
financial disaster. Besides that, Sutton (2005) explained that often, students begin their
search for help with their academic advisors. Moreover, Johnson (2005) stated that by
establishing an open communication policy, students can feel comfortable to ask those
questions without facing stigmatization. As Sutton (2002) argues that advisers may not
know the solutions to all problem but they can directly support students as they pursue
answers.

2.3.1.3 Family as a socialization agent

The role of family is an important socialization agent for children by

motivating children on consumer skills. As Ward (1974) stated that the definitions of
consumer socialization of children as processes by which young people acquire skills,
knowledge and attitudes relevant to their function as consumers in market place.
Moschis and Moore (1979) stated that different family communication structures at home
were found to result in different consumer competencies in children. Besides that, a study
on adolescents in Malaysia also indicated that parents influence over apparel brands
decreases with increasing age of the child, (Ghazali (2001)). Moreover, Moschis and
Michell(1986) explained that socio oriented family communication style of parents was
found to discourage childs participation in consumer decisions, at the same time concept
oriented style of family communication was not found to necessarily lead to greater
participation. As Ayadi and Bree (2010) indicated that family environment was found to
be an important indicator of transfer of food learning between parent and children.
3.0 METHODOLOGY

3.1 Introduction

This section discusses the methodology of the research. The main purpose of the research is
to investigate the main causes, effects and ways to overcome financial problem among
Mechanical Engineering students. This study uses a comprehensive survey to determine
participants personal finance knowledge. To know which is the main cause and effects of
financial problems and to find the most effective ways to solve this problem, Faculty of
Mechanical Engineering was chosen. This chapter described the research instruments,
respondents of the study, data collection procedures and the data analysis techniques to be used
in this study. The duration to complete this research is within 1-2 weeks.

3.2 Research Instruments

This research utilized quantitative research methodology. The instrument used to collect
the data is questionnaire. Our quantitative data will involve questionnaire containing 22
questions divided into 3 sections was developed based on questionnaire used previously by
another study (Gerber and Green, 1999). Different questions-types, such as Likert-scale
statements and open-ended were used in the questionnaire. The different sections of the
questionnaire were; i) causes of financial problem, ii) effects of financial problem, iii) ways to
overcome financial problem, iv) and comments. The questionnaire was piloted to our class which
has 30 students to assess its validity before it was distributed.

3.3 Respondents of the Study

 The respondents of the study were the undergraduates from different courses at Faculty of
Mechanical Engineering. A total of 100 questionnaires were distributed to the students
throughout the research. From 100 respondents, 50 were male and another 50 were female.

3.4 Research Procedure

Before the actual data collection period, a pilot study was conducted to assess the validity
of the research instrument. A total of 30 students were involved in the pilot study chosen at our
class.
During the actual study, a total of 100 questionnaires were distributed at Faculty of
Mechanical Engineering. Then, all the data were collected. After that, the collected data were
analyzed.

3.5 Data Analysis

To analyse the data, we use Microsoft Excel or coding system with the help of SPSS
software. Results were presented through pie chart, bar chart and other descriptive statistics.
CHAPTER 4: FINDINGS AND DISCUSSION

4.1 Introduction

This chapter will discuss about the results of the research on the financial problems
among FKM students. The main objectives of this research are to identify the main causes of
financial problems, to investigated the effects of financial problems among FKM students and
compare the level of financial education between male and female students. The findings will be
divided into three important sections found from a survey received from 100 students of FKM.

4.2 Gender of respondents

Gender of respondents

Male
50 50 Female

Figure 1: Gender of respondents

The pie chart above shows the gender of respondents for our questionnaire. From this
chart, number of female and male students is equal; 50 male and 50 female.
4.3 Year of study of respondents

Year of study of respondents

4 4
22 Year 1
Year 2
Year 3
Year 4

70

Figure 2: Year of study of respondents

The pie chart above shows the year of study of the respondents from Faculty of
Mechanical Engineering (FKM), University of Technology Malaysia (UTM), Johor Bahru.

The highest number was third year students that are 70 from 100 respondents, while the
lowest are 4 respondents for both first year and fourth year students. The other 22 respondents
are second year students. Majority of the respondents are third year students because our entire
group members are third year students. So, it is easy for us to distribute the questionnaire among
our members. Respondents year of study do give affect on our results.
4.4 Causes of Financial Problems among Students

Causes of Financial Problems

60
51 51.3
50 44 41.5
40 35.5
29.5
30 Male
Female
20
Percentage of agree (%)
10
0

Figure 3: Causes of Financial Problems among Students

Figure 3 shows the percentage of male and female students in financial problem
according to the causes of financial attitude, financial socialization and financial knowledge.
From the graph, the most important factor that appears to have dominated the causes of financial
problem for male is their socialization (51.3 percent), while for female is their attitude (51
percent). Next, male students are least knowledgeable compared to female students with 41.5
percent.

Based on Figure 3, the results clearly show that majority of female students have
financial problem because of their attitudes, while male students are because of socialization.
The results were anticipated as there are differences in personal identity between male and
female students from FKM. Besides, majority of the respondents were third year students which
have same mentality, so it will affect the findings. These results of this study seemed to confirm
the findings of a study by Falahati et al. (2011) at public and private universities in Malaysia
which found that the main cause of financial problem among students is their attitude. Hence,
these results seem to be expected. On the other hand, the graph show female students have bad
attitude than male. However, the findings of this study do not support the study conducted by
Hayhoe et al. (2000) which found that female students were more likely practices budget,
disciplined spending and save regularly.

Financial socialization is the main causes of financial problem for male students. Usually,
male students are interested in spending money for self celebration and more affected by peer
group and media. These findings agree with Falahati & Laily (2011) which found that secondary
socialization affects the attitudes of male students which will have a high level of financial
problem. The result is similar with this finding, so the result is successful. The percentage of
socialization is quit high for both male and female. Majority of the respondents are adolescents.
This will affect the results as peer groups are seem to play an important role in the socialization.
The interaction with peers of course makes adolescents aware of fads and fashions, that is, new
goods and services in the marketplace and new buying patterns. Furthermore, adolescents also
learned a lot from the media such as television, radio, magazines and internet.

Besides that, Figure 3 shows that male students are more knowledgeable than female
students. The results are unexpected as this finding did not seem to be consistent with other
research conducted by Chen&Volpe (2012) at USA which conclude that men are more
knowledgeable about finance than women. Even though female students are more
knowledgeable than male; they tend to be at worst in regards to spend their money. In contradict
with Sabri et al. (2011); he said that a low knowledge of personal finance among college
students is expected to be associated with ineffective financial behaviors.

In conclusion, since male students are more affected by secondary socialization (peer
groups), they need to improve their self-esteem, self-control and control peer effect. On the other
hand, female students have bad attitude in managing their money. So, they need to improve their
money management skills, make a list before they go out for shopping and control negative
attitudes towards money.

4.5 Effects of Financial Problems

Effects of Financial Problems

35.0 32.1
29.6
30.0 25.0 25.5 26.3
23.1
25.0 19.9 18.6
20.0
15.0
10.0 MALE
5.0
0.0 FEMALE
Percentage of student (%)

Figure 4: Effects of Financial Problems among Students

The purpose of this part is to find out the main effect of financial problem for male and
female student from Faculty of Mechanical Engineering. 100 students from Faculty of
Mechanical Engineering had answered the questionnaire for this part.

Figure 4 shows the percentages of male and female students in the effects of debt,
psychology, academic achievement and physical health to financial problem. There are some
differences of the percentage of students appear in the chart above for every effect of financial
problem. The biggest difference between the two genders was in the effect of psychology which
female student is made up to 32.05 percent while male student only made up 19.90 percent. The
main effect of the financial problem for male students is physical health which is collected at
29.59 percent of students. However, the main effect of financial problem to female student is in
psychology which is collected at 32.05 percent of students.

The ages ranges of the respondents are among adolescent age which is between 19-22
years old. This might be a factor that causes the result of the effect from financial problem.
Mostly, at adolescent age, they are having a change in their physical and psychology. During this
time, they are likely to be more affecting their psychology when facing a stress such as financial
problem. Another factor which affecting the result are all of the respondents are from the same
faculty. This might also affect the result since type of respondent are not much vary to each other.
Every student has different thinking and characteristic. Same goes to here, every faculty also
appear to be in different characteristic. There might be a similarity of characteristic of the student
and these similar respondents might be the most respondents of the questionnaire. Therefore, the
results come out might not be significantly fair.

It can be summarized that female students psychology affected the most when they went
through financial problem. While for male student, their academic achievement affected the
most. Similar to the researches before, a study conducted by Dr. Fauzia Khurshid,
KawishTasswar and Farah NazQasmi (2010) also concluded that female student are believed to
be more stress when having financial problem. Besides, female students taking financial hardship
to be more threatening compared to other group (Kathleen Moore, Krzystof Kaniasty & Petra
Buchwald, 2012). A research conducted by (Tamar Jaya bin Nizar & Nor Syahidah binti
Abdullah, 2011) found that 86.6 percent of the respondents choose part time job to solve their
financial problem. They also concluded that part time job would affect their academic
achievement.

This research has expected result which is the female students psychology are more
affected than male student. This is supported by a research conducted by Kathleen Moore,
Krzystof Kaniasty and Petra Buchwald (2012), which stated that female students are exposed to
be more involves in depression symptomatology than all other group. They also concluded those
female students are estimated to have a lower mental health than male student. This research was
carried out to 292 university students which are two-thirds from female student, 83 percent were
full time student and 90 percent were single. Another supported research is from Dr. Fauzia
Khurshid, KawishTasswar and Farah NazQasmi (2012). They stated that usually female student
are believed to be more financially stressed.

Also, as expected, female have lower involvement in part time job rather than male
students. From the research which has been carried out, a ratio of 1:3 between female and male
come out as the result of the number of student do a part time job to solve their financial
problem. This is supported by a research, carried out by Holter (2007) cited by Margunn
Bjornholt, 2010. He comes out with a result of 44 percent of the part time worker are Norwegian
women. Florence A. Hamrick, Nancy J. Evans and John H. Schuh (2002) conclude that student
who work part time job are tend to drop or take longer time to complete their academic program.
Therefore, it also been proved that male student are most likely to do part time job as the solution
to financial problem. This action affected their academic achievement. Hence, male have a
problem with academic achievement more than female when having a financial problem.

In conclusion, the result of the findings might be affected for a several factors. All
undergraduate students from University of Technology Malaysia live on campus. First year
student are not allowed to use any transportation except bicycle to campus. Most of the students
whose bring transportation are male students. This might be a factor of why mostly male students
involves in part time job since they are equipped with transportation such as motorcycle or car.
Apart from that, Malaysians student and international student appear to be in different
characteristic. Different culture causes differences in attitude or characteristic of one person.
4.6 Ways to Overcome Financial Problem among Students

Gender Differences on Level of Finance's Knowledge

44% male
56%
female

Figure 5: Way to Overcome Financial Problem (Financial Education)

Figure 5 shows the percentage of respondent opinion and their own evaluation of
personal finance knowledge by gender. As shown in Figure 5, we can see that female is more
knowledgeable than male by 16%. The gender difference in rating their knowledge is statistically
significant. The results show that the male respondents understand that their knowledge about
personal finance is relatively low. The finding has not supported previous research that the
female is less knowledgeable about personal finance than male. This is not similar to the findings
of another study conducted by Harris (1993) and Volpe et al. (1996) at Youngstown State
University, Unite State America (USA). From these self-evaluations, we find that male
respondents know that they are less knowledgeable about personal finance than female
respondents. Both of the results are seemed to be unexpected since they don't seem to be
consistent with other research. The result is unexpected because of due to lack of personal
finance educations in themselves and culture shock when they entered new surroundings.

In conclusion, it may be important to develop programs targeted specifically to male,

because they display not only much lower financial knowledge but also large differences in
investment and saving behavior. Current educational programs are considered to enhance
students basic financial knowledge and techniques, in fact, an effective financial education
program might change students financial attitude.
CHAPTER 5: CONCLUSION

This research investigated the financial problems among FKM students. Primary data were
collected by randomly distributing questionnaires to 100 students, which is divided equally to 50
male and female students. As mentioned previously in the introduction, the purpose of this
research were to identify the main causes of financial problems, to investigated the effects of
financial problems among FKM students and compare the level of financial education between
male and female students.

The following conclusions can be drawn based on the findings of the study:
1. This study has showed that the main causes of financial problem for male students was
financial socialization, while for female students was financial attitude.
2. The primary effects of financial problems for male students was physical health, while
for female students was psychology.
3. Lastly, female students have better knowledge about finances than male students.

The results of this research indicate that attitude and socialization plays an important role in
financial management. However, this research can be generalized only for University of
Technology Malaysia (UTM) Johor campus students and cannot be used for other universities.
We cannot get accurate results as the questions of the survey were not detailed. The same study
needs to be conducted from other universities students to see if there are any similarities of the
main causes, effects and ways to overcome financial problems.
CHAPTER 6: RECOMMENDATION
6.1 Recommendations Based On Findings
Based on the findings and conclusions of the
study, here are several recommendations to
be considered:
1. The universities should provide more
programmes to enhance the
awareness of students regarding life
skills and money management.
2. They also should provide financial
education during college hours. This
will help student improving their bad
financial habits and attitudes.
3. Students also need to take a lesson
from others who had facing financial
problem. These help them on viewing
the causes of the financial problem
themselves.
6.2 Recommendation For Future Research
Since this study had only focused on students
from Faculty of Mechanical Engineering, it is
recommended that the student whose will
respond to questionnaire must be varies. This
is because, every person exists with different
identities and there might be similarities of
identities between the students in the same
faculty. Therefore, it would be beneficial if
the respondents were chosen from different
faculties.
BIBLIOGRAPHY

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 Leila Falahati & Laily Hj Paim (2011). Perceived Causes of Financial Problems among
Malaysian Male Students.

APPENDIX A

UHB 2422
ADVANCE ENGLISH FOR ACADEMIC COMMUNICATION
QUESTIONNAIRE

The purpose of this research is to identify the causes, effects and how to overcome financial problems
among students. This questionnaire is distribute to determine whether FKM students plan their finances,
identifying the primary causes of financial problem among FKM students and compare financial
management strategies between male and female students. The data will be kept confidential. Thank you
for your cooperation by spending your precious time.

Please thick (/) in the space provided to indicate your responses.

Gender: male female

Age: 19-20 years old

21-22 years old
22 years old and above
others -------------------

CGPA: below 2.0

2.1-2.5
2.6-3.0
3.1-3.5
3.6-4.0

Year/ course: _________________

 Strongly Disagree Agree Strongly
disagree agree
1) I buy unplanned item.
2) I cant resist sale.
3) I shop to celebrate.
4) I feel excited and out of control when I spend my
money.
5) I start my financial practices from childhood.
6) I learn managing money from my friends.
7) Im influence to spend my money from media. (TV,
radio, internet, book, etc.)
8) I take a record every time I spend my money.
9) I save my money when I receive my scholarship or
education loan.
10) Experience taught me about financial
practices.
11) I know how to manage my money from my
parents.
12) I always asking money from my parents
when Im running out of money.
13) I choose borrowing money from my friend
to solve my financial problem.
14) I lost my appetite when I have financial
problem.
15) I lost concentration in class when having
financial problem.
16) I do a part time job as a solution to my
financial problem.
17) I tend to feel moody when I have financial
problem.
18) I have low self-esteem when I have no
money.
19) Financial problem does not affect my
physical health.
20) Personal finance important for your quality
of life
Do you receive a scholarship? : yes no
If no, how do you support yourself?__________________
 Very Somewhat Not Not
knowledgeable knowledgeable very knowledgeable
at all

1) Select the level of your knowledge of

personal finance

Tick (/) the best option (ONE only).

What is the best way do you think to overcome financial problem?

Obtained personal finance knowledge from parent.

Obtained personal finance knowledge from academic adviser
Others: ______________________

THANK YOU FOR YOUR COOPERATION

APPENDIX B

Work schedule:

ACTIVITIES 17/9 24/9 1/10 15/10 22/10 29/10 5/10 12/10 19/10

- - - - - - - - -

23/9 30/9 14/10 21/10 28/10 4/10 11/10 18/10 25/10

Identifying Topic of
Research

Preparing & Presenting

Proposal for Research

Discussing & Designing

Research Instruments

Collecting Data through

Primary and Secondary
Sources

Analyzing Collected
Data

Drafting Report
Preparing for
Presentation

Presenting the Report

Revising Final Report

Binding Final Report