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In the name of Allah, the Most Gracious and the Most Merciful.Alhamdulillah, all praises to
Allah for the strengths and His blessing in completing this report about Students vs financial
problems. There are no proper words to convey our deep gratitude and respect to our lecturer,
Dr. Asmah Zakaria for the continuous support. Her guidance helped us in all the time of
research and writing of this report.
We also take this opportunity to express a deep sense of gratitude to our team members
Siti Fatihah binti M. Sarbani, Umirul Adilla binti Mohd Noor Ihsan, Wan Nordiana binti Mahmod,
Ahmad Izzat bin Wahid and Mohamad Nizam bin Khoja Najumeddin for the cooperation given
during finishing this report assignment.
Sincere thanks to all our friends, classmates and others for their kindness and moral
support during our study. Thanks for the friendship and memories.
Last but not least, our deepest gratitude goes to our beloved parents for their endless love,
prayers and encouragement. To those who indirectly contributed to this research, your kindness
means a lot to us. Thank you very much.

As education loans become a major source of financing for university students in
Malaysia, their personal financial management skills need to be assessed to ensure effective
and efficient use of financial resources. Most university students believe that with higher

education they could ensure higher rank occupations and hence, higher income. Therefore,
students who pursue higher education have to spend their time in the university, which, in turn,
keeps them away from participating in the job market and having their own income. Thus,
finance is becoming a significant factor in the choice of whether to pursue university education
or to work. Students often begin their university education without ever having been solely
responsible for their own personal finances. While in the university, the students have to
manage their own expenses.
The research findings indicate that while students have wide access to financial
services, such as education loans and credit, they lack the financial management knowledge
and experience to manage money, which may lead to financial problems. The assessment of
students financial management skills is the primary focus of the present study. The National
Higher Education Fund Corporation loan (PTPTN) is the major source of financing for tertiary
education in Malaysia. The availability of this loan since 1997 has enabled more students to
pursue higher education. Logically, the loan received should be adequate to support the cost of
living; however, studies by Masud (2004) and Sabri (2008) revealed that, university students are
experiencing financial problems due to the lack of financial management knowledge.

The ability to manage financial resources is essential for everyday life activities. Wellinformed and financially educated people are able to make better decisions for their families
and, thus lead to higher financial security and well-being. However, the understanding of
consumption, as reasoned behavior or action, is inadequate in todays modern society, where
consumerism is characterized by globalization, cultural changes and the liberation of the

individual. In other words, consumption is part of children's and youngsters formation and
socialization, and plays an important role in the development of identity and self-conception.
Therefore, there is a need to understand the financial skills and abilities of students, since their
financial behavior will have an important impact on their future life and personal well-being.
Educational programs such as seminars, workshops and even printed pamphlets have been
recognized as tools to improve financial knowledge and enhance financial skills. However,
knowledge about students financial skills and educational needs enable the policymakers and
financial planners to develop appropriate strategies and programs to enhance students financial
knowledge. Enhancing students financial skills would benefit the individual, finance services
providers, universities and the nation. The specific objective of the present study is to assess
university students financial management skills and to determine students financial education


Throughout the 1990s, issues related to financial education and knowledge were
discussed among family and economic educators. Most of the recent studies focused on the
financial planning of university students because many of them fail to plan their expenditure and
unexpectedly experience financial problems. University students report having high debt,

serious credit card usage, and high stress, as well as low financial satisfaction due to the lack of
financial management skills.

Young adults may be unprepared to effectively manage the

psychological costs associated with financial problems such as increased levels of stress and
decreased levels of well-being. However, it is generally accepted among researchers that,
financial education is the key to decrease financial problems, especially among young adults.
Concerning the importance of financial education, financial education plays a key role in
financial empowerment, as education helps consumers acquire the skills, right attitudes and
relevant knowledge needed in making choices for the best of their economic, health and safety
wellness. The research findings among university students in the US reveal that, financial
pressure is the most frequently cited reason for students discontinuing their education (Chiang,
2007). A study by Chen and Volpe (1998) reported that, university students generally lack
financial knowledge. Those with higher levels of financial knowledge tend to have right
opinions and make correct decisions related to savings, borrowing, and investing.
Many researchers have suggested that a lack of financial knowledge and skills results in
students experiencing financial problems. Norvilities (2006), by reviewing several studies
(Seaward and Kemp, 2000; Warwick and Mansfield, 2000) concluded that those seriously in
debt might not understand the implications of their financial behavior. The financial knowledge is
one of the strongest predictors of financial behavior among university students. Perry and Morris
(2005) found similar results. Of all the factors they considered being indicative of responsible
financial behavior, financial knowledge was found to have the greatest effect. Students financial
resources come from a number of sources. Parents, loans, credit cards and income from part
time jobs are their basic financial sources. Financial management skills and knowledge are
needed to help students match their needs with their resources. Financial knowledge includes
understanding financial activities such as the function of money and the use of financial
services. Kempson et al. (2006) define financial skills and ability as the knowledge and

understanding that allows people to acquire the skills to deal with everyday financial matters
and make the right choices.
Although most studies consider financial knowledge as a basic element of financial
decision making and planning, only a few focused on financial skills. There is a difference
between providing information as knowledge and the ability to apply it. Financial knowledge
refers to financial information and literacy; however, financial skill is the ability to apply such
knowledge to make financial decisions and planning. Some researchers define financial skills as
the ability to understand and manage across a range of financial contexts including both
predictable and unpredictable situations. Researchers in the field of finance, that financial skills
and competence are based on financial knowledge and understanding, and are influenced by
the personal attitudes in spending and saving. Therefore, financial skill and ability are needed to
plan, control, manage and resolve financial risks and opportunities in the future.
Research has shown that several factors are associated with personal financial skills
and knowledge, such as income, age, education, and socialization the financial skills are based
on three factors 1) demographic characteristics (age, sex, education, values and attitudes or
habits), 2) the phase of life and immediate environment (family, socialization) and 3) the macro
environment (society and its social, economic and cultural settings). However, these three
factors may have a direct or indirect effect on ones financial skills and abilities. Not many
studies have been done on the financial behavior of Malaysian university students. Masuds
(2004) study on Malaysian university students revealed that, the majority of them were
experiencing financial problems because of the lack of knowledge and management skills.
The study concluded that, the purchasing power for the overall Malaysian population has
increased, with no exception for students. Thus, although students are an important market
segment, the majorities of Malaysian students borrows money for their education and easily fall
into debt because of the lack of financial planning for the future. Sabri (2008) conducted a study

among Malaysian college students and found that, most of them were uncertain about where
money is spent and that they bought unnecessary things and lent money to friends. According
to Sabri (2008), the findings indicate that financial knowledge is a strong predictor of financial
behavior and a preventive factor for financial problems.


This research seeks to determine whether the source of finance, monthly savings,
monthly expenditures and general financial knowledge based on gender and subject taken will
affect tertiary students financial literacy.
There are several sources of finance for the tertiary students such as government educational
loan (PTPTN), pocket money from parents, salary from the part time job, scholarship and so on.
According to the researchers, the amount for the tertiary students to get their allowances from
doing the part time job to support their expenditures has been increased (Nonis & Hudson,
Some of the students family not able to support their tuition fees which are costly. Thus,
PTPTN loan is apply by the students to support their tuition fees. According to the requirement
of educational loan, the PTPTN loan will be cut off immediately if the students are not able to
achieve their Grade Average Point (GPA) for their semester final exam higher than 2.0. It will
lead the tertiary students to face the financial problem when the PTPTN is being cut off due to
their result. Most of the students are rely on the PTPTN loan to support their life expenses and
preserve for future emergency needs. When the PTPTN loan is being stopped, the students will
start to have the shortage and lack of the source of finance for them. Therefore students will
learn to spend their money wisely and develop well financial literacy. However there are some
students not only received allowance from their parents, they also received payment from

PTPTN loan. The surplus of funds may cause them overspending which will bring negative
impact on their financial literacy.
Although people are saving for all the time, but they will confuse what is the level of
saving conduced are considered adequate. What is seen as adequate may differ whether we
have an individual perspective or a collective perspective. It must be stressed that there is
limited information about the rate at which individual are actually saving, making it difficult to
establish a solid benchmark against which to measure adequacy. In additional, saving also
limited by the income generated. All of these will lead to bad personal finance management
which is mismatch the goal and the financial resource.
According to Scobie, Gibson and Le (2004), as have superannuation as the backup of
the retirement, people would not reduce their present consumption in order to save further for
their retirement. Existing social insurance rule also reduce the need for such saving while
current tax rules reduce the return on monthly savings (Feldstein, 1992). These reasons will
become the encumbrance of saving.

Besides that, many people have faced the problems of debt in the world today. Most
people do not know how much had they spend on food, housing and entertainment every
month. They do not keep track of their expenses and they just thinking about today which leads
them cannot organize their finances well (KNS Financial, 2011). This situation also leads them
to an unhealthy spending behavior with the bad attitudes (Yates & Ward, 2011). According to

Salmons (2007) spending plan will make people able to utilize their money to obtain the things
which are most important to them. If people able to prepare their monthly spending plan, they
will have a bit concept of where their money gone and which is an essential element of financial
control system. Thus, monthly expenditure can be an important variable in financial literacy
General financial knowledge is important for individual to well manage their finance.
However, it comes to a question that whether a person has general financial knowledge will
have a higher financial literacy. Is general financial knowledge important for each individual to
understand better in finance? There is a different point of view in financial literacy between
business and non-business students. The findings pointed out that business students display
higher financial literacy level than nonbusiness students. In addition, most of the non-business
students especially science students are lack of the general financial knowledge and poor in the
technique to manage their finance. However it is hard to apply the financial knowledge in the
real worlds financial transactions and activities.

On the other hand, a lot of people are interested in finding out whether males of females
among tertiary students are more knowledgeable in personal finance, well management of their
savings and expenditures. In addition, some people may interest to know that whether boys or
girls can get more money from their parents. There are some arguments stated that men are

knowledgeable in personal finance management compare to women. This statement was

proved by Chen and Volpe (1998), women have less knowledge in financial compare to men.
Besides, the male students are more knowledgeable in financial than female students because
male students were socialized earlier in financial matters. However, some people may argue
that women are well in personal finance management compare to men. Based on Goldsmith
and Goldsmith (1997), males know more knowledge in insurance and personal loans but they
are poor in financial management compare to women. Therefore it is difficult to determine
whether male or female have higher level of financial literacy.
The individual manage their finance on a daily basis, such as pay for rental, allocate
money for savings and buy ingredients for lunch. The financial decision made by different
individual may provide different consequence in the future for example overspending can
reduce an individual purchasing power. It is challenging for an individual who lack of experience
with financial planning to manage their money wisely. Therefore taking a subject that related to
financial management is important for individuals such as Personal Financial Planning and
Management. However, the outcome of taking this subject may not same due to students
learning attitude. Although the student had taken this subject, he may fail to manage his fund
wisely as he always absent for the class.
Due to the phenomena as stated in the problem statement, the researchers conduct a
study on personal financial literacy among tertiary students.


It is vital for universities students to ensure that their spending of money is in correct way.
The attitude of the universities students can become their life more smoothly because of have

saving in the bank, so that they will not face in financial problem in future. Therefore, the main
objective of this study are :

To ensure that students can use the money from variety of sources are used in correct
To identify where the universities students spend their money.
To bring awareness to students about the importance of saving money.
To provide guidance to where their money should be spent to avoid useless.


The limitations of the study are characteristics of design or methodology that impacted or
influenced the application or interpretation of the results of our study. They are the constraints

and utility of findings that are the result of the ways in which we chose to design the study and
the method used to establish internal and external purpose.
The first limitation of our study is the limitation on collecting data since we have a hard
time in collecting our data. There might be some error on the questionnaires given the
participant to fill our surveys. In addition, the surveys might not be understood well by the
participants where make them to simply answer the questionnaires. For instance, we have
found that all of our questionnaires and data are obtainable, but there were little errors on the
questionnaires which make our data collection to be a little difficult.
The next limitation of our study is the lack of time carrying out this research. Since all of
us were busy to classes, reports, tests, and quizzes we could only obtain the primary data
rather that obtaining the secondary data because of our limitation to the obstacles. But it did not
interrupt our finding, however with the guidance of our lecturer, we can manage do complete our
finding as well.
Finally, the other limitation to our study about the research is because of the lower
priority for carrying out a survey because of competing urgent task. Sometime we need to do
the things that we really need such as we need to prepare for the upcoming tests or
assignments that we need to do so. Besides that, our research might take some time because
of we are lack of funding necessary to carry out a survey. To make a good research you have to
buy a good sample of questionnaires and journal which care very costly to us.


The primary motivation for this study is to educate university students about the
importance of saving money. Through this study, we can see the attitude of university students
in managing their money that they get, whether from scholarships, loans or from family sources.
In addition, this study will enlighten the students where their money should be distributed. They
should cut spending to activities that are less beneficial for them that involve money. For
examples are shopping, travelling, eating expensive food and so on.

This study will also be great significance to the parents, where their children can manage
the money as well as possible. So, parents are no longer burdened when their children often
ask for money when the money runs out. With an unstable economy and rising cost of living,
students should take steps to reduce their spending on universities. This can give them a
chance to save money in any bank for their future life.

2.0 Literature Review

As we know, majority of students receive their scholarship or education loan at the

beginning of each semester. So, they not have any problem at the beginning semester compare
with last of each semester. Based on Financial Problems among Universities Students in
Malaysia by Mohamad Fazli Sabri, there are many causes about student finance problems
such as parents marital status and educational level, family income, sibling rank, types of
universities, residence and education fund (Mohamad Fazli Sabri et al, 2008).

Causes of Student Finance Problem

Unnecessary Things

Today, we know that majority of students have money from their scholarship and
education loan for each semester with cash and in a big amount. So they have a problem for
planning their finance with more efficiently. It is because for each semester, they have many
things for use in their study such as reference book, fees and more.

The finding is supported by Mohamad Fazli Sabri et al (2008), more than half of the
respondents did not save any money when they received their scholarship or education loan.
More than half of the students used their money for shopping. About 45% of them spent all their
money before the end of the semester; 17% of students gifted some money to their family, and
13% used their money to repay debts. My opinion about this situation is student must planning
their finance from the beginning of each semester so that they just using the money for
necessary things.

The Influence of Family Member

The second causes of student finance problems are family aspect. This is because
some student comes from low income families. Student had gifted some money to their family
for help them from finance crisis. At the same time, this situation can make the student cannot
manage their finance properly because they had to use their scholarship or education loan for
another things. Sometimes, student cant manage their finance because of a strong family
influence. Base on College Students and Financial Literacy: What They Know and What We
Need to Learn by Cude B. J, the influence of family members is important but complex. Most
students reported hearing various messages about money from various family members. Most
of the messages students shared related to controlling spending and avoiding or using credit
wisely. In addition, many were very aware that they and a sibling approached financial
management differently and wanted to be different from or like their sibling, depending on
whether the sibling was more or less responsible. (Cude et al, 2006).
Unlike the research from Cude B. J et al (2006), the most significant influence on
students money management behaviors was their parents (70.0%). Few students identified as
their most important influence a brother/sister (1.2%), grandparents (1.9%), and other family
relative (1.2%). So, student should manage their finance with using their own opinion and
ways. It is because they often influenced by their family and not confident to make own decision
about their finance.
In this case, student will lost focus for manage their finance because of family
intervention. The effect of this situation is student will leave their finances managed by family.
For another situation that related with this cause is family problem that can make the student

having a problem in their finance. Mohamad Fazli Sabri et al (2008) clearly has noted, students
who have universities graduate parents, higher family income, only child, tend to spend on more
items, and have no saving were more likely to have financial problems. There is a negative
significant difference between students who have late childhood consumer experience and
financial problems. Also those who have had more financial socialization have fewer financial

Failed to Manage their Finance Properly

The last cause is student failed to manage their finance properly. As we know, student
attitude can give an impact to their finance management. Some student have positive attitude
and another student have negative attitude. Refer to Cude B. J et al (2006), one conclusion
from the research is that some college students are not managing their finances well, because
they have not adopted the set of recommended practices. Another conclusion is that some
recommended practices should be modified to more accurately match ways in which college
students responsibly manage their finances.
Student also failed to manage their finance with more efficiently because not prepare to
face some possibility that can giving bad effect to their finance. Base on Changing College
Students Financial Knowledge, Attitudes, and Behavior through Seminar Participation by
Borden L. M, young adults also may be unprepared to effectively manage the psychological
costs associated with high debt; for example, increased levels of stress and decreased levels of
psychological well-being (Borden L. M. et al, 2008).

Subjective Norm



Perceived Behavioral

Financial Problem
Financial problem are influenced by three independent determinants; attitude, subjective norm,
perceived behavioral control.
2.1.1 Attitude
Attitude towards the financial problem is referred as the respondents favorable or unfavorable
2.1.2 Subjective Norm
Subjective norm is a perceived social pressure to perform or not to perform the financial
2.1.3 Perceived Behavioral Control
Perceived behavioral control is a belief about control of the opportunities and resources by an
individual in creating the financial problem

The survey by questionnaire were been used in this research. Respondent is the usual term for
an individual who takes part in a research project. However, respondents can also be known as
a participant in a research sample as we can recognize the value of more collaborative interview
relationship between participants and us. In conducting this report, we have distributed 60
questionnaires to the consumers in Malaysia. After all the questionnaires distributed, we have
analyzed it quantitatively.
Based on our research conducted, there are two methods of data collection were used,
which are primary data and secondary data. Primary data are data that were previously
unknown and which have been obtained directly by the researcher for a particular research
project. For instance, from all the 60 questionnaires distributed, we manage to analyze the data
obtained from it and there is so many type of answers obtained. Next is by using secondary
data in the process of collecting or data. Common sources of secondary data for our research
used such as previous records, interviews among friends, books, journals from the websites,
databases and data collected through qualitative methodologies or qualitative research in the
library. One major benefit of using secondary data is that it has already been reviewed suitably
The findings of the results were transferred into the Microsoft Excel. The findings were
analyzed through pie charts. The data were calculated and the analysis of the data using the
charts was made easier.


Quantitative research is conduct through using the large scale of survey research, using the
methods like questionnaires. In this research, university students are treated as target
population in order to complete this research. Type of research that we conducted is survey by
distributing questionnaires to the targeted 60 respondents in Malaysia. The questionnaires is
about how financial problem affects students and how spending habit affects students. In the
questionnaires, ask about gender, type of university, sponsorship, monthly spending on
accommodation, telephone bills, transportation and food.

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
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, and place of origin, parents 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: Familys influence can influence individuals financial management. Joe, Grable
and Bagwell (2006) claimed that, parents who have financial problems are more likely to have
negative influence toward students financial behavior. Webly and Nyhus (2006) discovered that

parents with long term orientation would influence their children to become long term oriented
as well. The long term oriented is defined as peoples who are willing to pay before they gain.
The more the parents discuss about the financial management, the greater the commitment of
their children in managing their finance.
Hypothesis 3: Male can influence individuals financial management.
Hypothesis 4: Female can influence individuals financial management.
Hypothesis 5: Bumiputera can influence individuals financial management.
Hypothesis 6: Non-Bumiputera can influence individuals financial management. According to
the Lyons (2007), demographic variables such as ethnicity and gender would affect individual
financial behaviors. Lyons (2007) claimed that, female, black, and/or Hispanic were more likely
to face with financial crisis. However, Erskine, Kier, Leung and Sproule (2006) sought that there
is no significant relationship between gender and individuals financial management.


We are using a non-probability sampling technique and our population is 60 of students whether
public university and private university around Malaysia. Our sample size is 60 respondents.

The structured questionnaire is used in gathering data for completion of this study. For this
survey, the questions are divided into two designs. For first 3 questions we construct about
demographic profile. The rest are the discussions of our dependent and independent variable


The primary and secondary data were both used in data collection and data sources for this
3.4.1 Primary data
In this research, the primary data was been collected from the students in universities around
Malaysia. The data were collected through questionnaires via online survey (survey monkey)
that are distributed to the target respondents which are students by social media (twitter and

4.1 Gender



Percentage (%)




Table 4.1: Number of students based on gender.

Table 4.1 shows the number of respondents whom have taken part in our research. There are
46.67% of male students which are equal to 28 students while female students are 53.33%
which are 32 students.

4.2 University



Percentage (%)




Table 4.2: Number of university

Table 4.2 shows the number of respondents whom have taken part in our research. There are
36 students from public university which are 60% while the rest 40% are from private university
which are 24 students.
4.3 Sponsorship



Percentage (%)









Table 4.3: Number of students based on sponsorship

The sponsorship by MARA is the highest among others. The percentage is 45% and 27
students. For JPA only 1 students received. For PTPTN sponsorship has small different from
MARA which are 23 students. The rest is other sponsorship such as payment by their family.

4.4 Monthly Spending

RM300 RM500


Percentage (%)

RM500 RM800



RM800 RM1000


RM1000 and above




Table 4.4: Number of students monthly spending

Most of students spend their money around RM300 to RM500 which is 51.67% or 31 students.
Only 2 students spend above RM1000. About 23 students spend their money monthly around
RM500 to RM800. The rest which are 4 students only spend around RM800 to RM1000


RM100 RM200


Percentage (%)

RM200 RM300



RM300 RM400


RM400 and above




Table 4.5: Number of students spending on accommodation

Based on the online survey that we have done, there are same result that spend their money on
accommodation between RM300 to RM400 and RM400 and above which are 3.33%. The result
shows high gap between majority and minority. Most of the students spend around RM100 to
RM200 which is 76.67%


RM0 RM30


Percentage (%)

RM30 RM60



RM60 RM90



RM90 and above




Table 4.6: Number of students spend money on telephone bills

Based on the results, the highest spending on telephone bills is around RM30 to RM60 which
are 25 students. Only 1 students spend above RM90. We can see that students spending their
money on telephone bills around RM30 and RM60 to RM90 have the same number of students
which are 17 or 28.33%


RM0 RM50


Percentage (%)

RM50 RM100


RM100 RM150



RM150 RM200



RM200 and above




Table 4.7: Number of student spending on transportation

The majority of students spending their money on transportation is around RM50 at 51.67% or
31 students. It has different gap with the minority which is only 3 students spend above RM200.
Students spend money around RM100 to RM150 and RM150 to RM200 have same number of
students which are 10.


RM100 RM200


Percentage (%)

RM200 RM300



RM300 RM400



RM400 and above




Table 4.8: Spending on food by students

The results shows only little different between all the range. Most of the students which are 20
students spending their money on food between RM300 to RM400. Only 7 students or 1.67%
spend money above RM400.



In order to maintain a healthy spending habit, students are suggested to manage their spending
on the accommodation and such.
First of all, students can look for houses with low rental and are located as near
as possible to their campus. Students can negotiate the rental price with the rental agent.
Students can get their friends to settle in the house as well. The rental can then be divided
among them instead of being paid by an individual.
As for food, students can get their housemates or friends to pinch in and cook
together. They can share the spending on groceries and learn how to cook. Students must cut
down on take-outs and delivery because these two added to the expenses. Furthermore, it is
healthier for the students to cook meals for themselves. They can also choose the ingredients
which can help in boosting their memories and maintain their energy for curricular activities.

Reference books are known to be expensive and not all students can afford that.
To solve the problem, students can get the e-book version of the reference books they need.
Besides, they can try to buy second-hand reference books from their seniors which are
positively lower in price compared to buying from bookstores. These prices are more relevant
for students. However, if they still cannot afford, students can opt to pay for the book by
instalments or share the price with another classmate.
Students are also suggested to sell their books after the end of every semester.
This will add up to their pocket money and they can use it later to buy books for the next
Transportation is another thing the students need to consider since it involves a
big sum of money. It is wise for the students to choose the cheapest ride to campus. Its level of
being convenient is something that students should bear in mind too. For instance, public
transportation nowadays is convenient enough but students must make sure that it is located
close enough from their rented house. And, that it is safe for them to move from the house to the
bus or train station.
On the other hand, students can opt to start car-pooling with their housemates or
friends whos staying nearby. The most crucial part here is to have a housemate or a friend that
actually has a car and is going to drive to campus. Students can then divide the expenditure of
fuel among themselves to let ease the spending on transportation. This helps the students to
commute anywhere (not just to college) even faster and safer.
Students can have fun, of course. Having fun cost money too so; it is best to
ensure that no one over-spent! Instead of going to carnivals or concerts that is going to cost a
pretty penny, students can go to free campus events. Students can get to know people from and

outside their campus here. Moreover, the campus events are going to benefit them with better
inputs which are knowledgeable and useful for future needs.
Also, by bringing limited cash can help them to save and avoid over-spending.
Limited cash makes students think carefully on what they are going to spend since there would
not be any more cash with them to buy another item.

In conclusion, the best way for students to not engage with financial problem is

for them to plan their spending (be it monthly, bimonthly or even weekly). Students can get help
from their advisors or counsellors which will provide them with ways to start healthy spending
habit. Students can also use their smart phones to search for solutions from experts worldwide.
Spending healthily includes, not just by being careful while spending but saving
money as well. Having surplus of money in their bank accounts is every students dream. This is
as students might suddenly need the money for emergency cases like, sudden fever or
accidents (let it be when riding or driving or even walking) or paying for 2+1 rental house
deposit. Since it is time consuming to wait for family members to bank in the money, smart
students have their own savings to solve these matters.
Even though it is important to spend healthily, students can plan on how to gain
money too. If saving money is not the best solution to prevent from having financial problem
perhaps gaining some more is. In order to have more, students will have to work as a part-timer
or as free-lancer. By the end of every month or after every task given, students will have extra
pocket money. This will add up to the allowance which they are receiving (if sponsorship is
applied) and hopefully will help students from having not enough money.

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