Financial Problem
Consumer Interests Annual
Volume 54, 2008
Financial Behavior and Problems among College Students in Malaysia: Research and Education Implication
The purpose of this study are to identify and compare financial behavior and financial problems experienced by students; to conduct multivariate analysis of factors influencing financial behavior, and financial problems, and to explore the influence of financial literacy on financial behavior, and problems. Mohamad Fazli Sabri, Iowa State University1 Maurice MacDonald, Iowa State University2 Jariah Masud, University Putra Malaysia3 Laily Paim, University Putra Malaysia4 Tahira K. Hira Iowa State University5 Mohd. Amim Othman, University Putra Malaysia6 Introduction 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 consumer market segments, for two reasons. First, this group has expanded purchasing power, with easily available educational loans. Second, this student segment of the population has better potential earnings than any other segment of the population. There has been limited study on financial behavior and problems among Malaysians, especially college students, since the concern over the role of young consumers is relatively new. Hypothesis 1: The following variables will predict effective financial behavior and greater financial problems: gender, ethnicity, place of origin, parent’s marital status and educational level, family income, childhood consumer experience, sibling rank, types of college, residence, education fund, financial socialization, GPA, spending patterns, savings, and financial literacy. Hypothesis 2: Financial literacy will be related positively to effective behavior. Those who report greater financial problems will report low levels of financial literacy. Methodology The study
Volume 54, 2008
Financial Behavior and Problems among College Students in Malaysia: Research and Education Implication
The purpose of this study are to identify and compare financial behavior and financial problems experienced by students; to conduct multivariate analysis of factors influencing financial behavior, and financial problems, and to explore the influence of financial literacy on financial behavior, and problems. Mohamad Fazli Sabri, Iowa State University1 Maurice MacDonald, Iowa State University2 Jariah Masud, University Putra Malaysia3 Laily Paim, University Putra Malaysia4 Tahira K. Hira Iowa State University5 Mohd. Amim Othman, University Putra Malaysia6 Introduction 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 consumer market segments, for two reasons. First, this group has expanded purchasing power, with easily available educational loans. Second, this student segment of the population has better potential earnings than any other segment of the population. There has been limited study on financial behavior and problems among Malaysians, especially college students, since the concern over the role of young consumers is relatively new. Hypothesis 1: The following variables will predict effective financial behavior and greater financial problems: gender, ethnicity, place of origin, parent’s marital status and educational level, family income, childhood consumer experience, sibling rank, types of college, residence, education fund, financial socialization, GPA, spending patterns, savings, and financial literacy. Hypothesis 2: Financial literacy will be related positively to effective behavior. Those who report greater financial problems will report low levels of financial literacy. Methodology The study