Money management is the basis of being financially responsible. Learning how to plan, develop, use, and maintain a personal budget is the first step in being able to make quality financial choices and decisions. The ability to apply positive money management skills, set financial goals, and understand effective cash flow strategies are the next steps that allow students to be responsible consumers (Burmaster, et al., 2006) Although money management can be learnt, age group behaviour has been characterised with the way at which money is managed by youth although research has shown other factors contribution to money management in youths, such as personality and traits (Norvilitis, et al., 2006). In a study about student expense budgets, male and female students reported different financial needs at different times in their careers. For example, senior women spend more money in rent than senior men. This difference was attributed to a preference. women are likely to pay more money for a nicer apartment. The researchers argued that more knowledge about student expenses would help in creating realistic budgeting seminars (Jackson & Pogue, 1983).
In a research done by the University of Kentucky, successful money management can be learnt which is listed below; Get organized
Decide what you want to do with your money
Look at all available resources
Decide how much money you are worth.
Find out how much money you make
Find out how much money you spend.
Set up a plan for spending your money and stick to it
Evaluate your spending plan.
The more knowledge students have about their financial responsibility and status, the less likely they are to be in debt (Norvilitis, et al., 2006). In “Borrowing against the Future: Practices, attitudes and knowledge of financial management among students,” Micomonaco (2003) finds students tend not to have a budget or calculate credit card bills based on their actual spending. Students are in a unique situation because they have restricted incomes and high expenses; therefore, they manage money differently (Micomonaco, 2003). The percentage of undergraduates who had credit cards in 2001 was 83%, an increase of 24% from 1998 when 67% of undergraduates had cards, and an increase of 6% from 2000 when 78% had cards (Mae, 2002). The University of Bath made an average expenditure for postgraduate which went as follow;
Purpose of study
The purpose of this study was to explore the understanding of money management by youths. Youths in this term was categorised into two which were; undergraduates and postgraduate. The way and matter both groups spend their money was taken into consideration and compared with each other. Specifically, the study was designed to answer the following questions which were; Do undergraduates and postgraduate spend their money the same way? How well is money managed by undergraduates and postgraduate? What items are purchased the most?
Are budgets made in both groups?
This report would be followed by a literature review related to the research followed by my method, the results and discussion then the conclusion would come after.
Several studies address money management as one aspect of financial aid (Coomes, 1992; Dennis, 1983; Hira & Brinkman, 1992; Holland & Healy, 1989; McDougal, 1983; Moreland, 1986). Other research examines the relationship between money management and credit (“Planting the seeds,” 1992; Broebeck, 1992; McEldowney, 1994; Murdy, 1995; Rush, 1995). One financial management component, money management, has been examined in relation to students (Anderson et al, 1993; Archer & Lamnin, 1985; Danes & Hira, 1987; Heckroth, 1993; Ingalls, 1990; Jackson & Pogue, 1983; Murphy & Archer, 1996). These studies offer insights about students’ needs, attitudes, and knowledge about money management.
The topic of money management is considered a part of the larger issue of...