THE PROBLEM AND RESEARCH DESIGN
Rationale of the Study
A Financial Management student is known to be more aware of different financial aspect. One of it is personal finance. The term personal finance has to do with spending, saving and investing. Basically, it is necessary for financial management students to acquire sufficient knowledge about this aspect. As they learn different investment portfolio like insurance, mutual funds, stocks, real estate, foreign exchange and others. They are also knowledgeable about the vital effect in saving money for the present and future expenditure. Everyday, we will make many complex decisions throughout our lives, some related to our education, career and personal lifestyle and many that affect our financial success. Students experienced the difficulties in managing money due to some certain circumstances. They made their decision based on their personal satisfaction. In every financial decision, you will sacrifice something in order to obtain something else that you can consider more desirable. Financial management student has lot of advantages in taking up finance course. They can develop the ability to be effective in using financial skills and tools. They can also clarify their financial values and can set their financial goals. They can also identify the specific needs and wants with their financial resources. Studying personal finance or related finance subject will help the financial management students to avoid the difficulties in financial problem. They can be able to distinguish the importance of investment, saving and spending. Investing in the way they will take risk, saving for future needs and spending properly. They can refer to the financial decisions which an individual or a family unit required to make, obtain budget, savings, and spending. THEORETICAL BACKGROUND
This study is anchored on the principle of Garman and Forgue that financial success is achievement of financial aspirations that are desired, planned, or attempted. It is defined by the individual or family that seeks it. For some people, financial success may be a financially secure retirement. Others may want vast wealth by the age of 50, and some may just want enough money to educate their children. Most people probably simply want a comfortable lifestyle. To be successful each individual must establish his or her own long- term personal financial objectives. The broad goals of effective personal financial management are to maximize earnings and wealth, to practice efficient consumption, to find life satisfaction, to reach financial security, and to accumulate wealth for retirement and a financial estate to leave to heirs. These goals are very much related; in fact, to achieve one, you probably need to achieve the others. The following sections describe these goals of effective personal financial management. Maximizing Earnings and Wealth
Wealth is an abundance of money, property, investments, and other resources. In order to attain the goal of maximizing wealth, you must first seek to maximize earnings. Whether you choose to maximize earnings primarily through the employment or through investments will depend on our tastes, interests, and lifestyle. Practicing Efficient Consumption
We use money for two purposes: consumption and savings. Since consumption spending, or buying goods and services, uses up the largest portion of income, it is important to practice it efficiently. Practicing efficient consumption requires developing effective personal financial management skills and techniques, such as keeping sound financial records and using credit and checking accounts inexpensively. Failure to practice efficient consumption is often the result of the careless use of money on nonessentials, abuse of credit, and poor judgment on purchases. Finding Life Satisfaction
Most people generally strive for quality and satisfaction in their lives. Some very important goals...