Survey on Financial Problems

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3.1 Background of the Study
For most students, enrolling in the university is the first time they have to manage their money without a parent’s supervision (Mohamad Fazli Sabri, MacDonald, Janah Masud, Paum, Hira, Mohd Amin Othman, 2008). In this situation, financial management is very important. Financial management is defined as planning, organizing, directing and controlling the financial activities (Financial Management- Meaning, Objectives and Functions, 2012).

There are many ways students can organize their spending. The first way is to make budget (Roth, 2007). When they received the money, they have to decide where the money will go. They need to spend more on important needs rather than fulfilling their unlimited wants. The second step that can be taken is by keeping every receipt after purchases (Roth, 2007). By doing this, they can keep track on the things that they have purchased. The third step is by avoiding credit cards (Roth, 2007). Credit cards are useful in times of emergency. However, if it is not been used wisely, can cause damage to the user by making them pay back the debt with a high interest. The last step is by making a smart choice. Students need to make smart decisions regarding their spending in order to avoid being trapped in debt. Students need to be reminded to not buy on impulse.

2.2Statements of the Problem
According to Jones (2007), a representative of United States National Foundation for Credit Counseling states that many students go to university without any clue about finance. Having to spend most of their teenage life staying with their parents, these students may fail to manage their wisely. Parents also have their share of the blame due to the lack of exposure on financial education to their children. As young adults, the students need to figure out how to pay for tuition fees, earn some spending money and get a good education (Vohwinkle, n.d.). Based on Hurban (2012): According to the College Board, public...
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