Introduction

“No money no talk”. Money, money and money. People always mentioned this word in their

life. Do you think money is important in our life besides food, shelter and love? If you think

so, then why we need it? Nowadays, we always heard about bank robbery, snatch thefts,

loan sharks and others through media. Why did these crimes happened? It is because they

have financial problem in their life until they involved in crimes. Financial problem also

happened among students especially when they further their study away from their

hometown. Students always complaint about sort of money.

1.2 Statement of Problem

This paper examines the reasons students have poor financial management, excessive

spending behaviour and living away from family are the causes of financial problems among

college students.

First of all, poor financial management is the main cause students are facing financial

problem. For majority students, it is the first time they have experienced financial

independence without parent’s supervision. They fail to do the management and flow of their

money. They do not have the skill to manage their own money. They do not ensuring that

the money well spent and not misused. This problems are common among students

attempting to balance small budgets with living expenses. Some students are not mature

enough to handle finances and they overspend. Poor financial management also happened

when students do not have discipline in their budgeting and spending money. Some student

like to buy things without considered about the prices. Which mean student do not make the

best buy that can help student spend less money. Besides, although students have tights

budget but they tend for living financially. For example, students that like to go to bars,

partying and even go to the pubs. They do not really planning the future used of the money
which can help them to buy books instead for spending the money in wrong way. So, at the

end of the day, they will face a big crisis of money problems.

Furthermore, students always make excessive spending behaviour. They like

spending more than what they need and have no self-disciplined in sending money. It is like

a student’s habit too. Most college students have spend money either from earning or

allowances. But with little need to pay for living expenses. Many teens develop spending

habits that become unrealistic when they must support themselves. Sometime, student can

become to high-spending lifestyle, it can accustomed be hard for them to develop new habits

that contribute to long term financial well being. They do not ensure that their money was

spent on correct way. But then, they cannot cover all their necessities. This problem also

happened when the individual has chosen a friend which is a big spender. They can be

easily influenced by their friend. Especially when they spend their money at expensive

places like Pizza Hut, McDonalds and Starbucks. Spending your money at expensive places

can easily make your money gone so fast. Besides, they like to follow their friend’s trend and

lifestyle. For example, when their friends have a new mobile phones then the individual

starts to feel envy and make a desire to buy more trendy phone than their friends.

Sometimes, student have strong desire which make they really want to buy anything they

want. They don’t decide carefully when using their money and make wise financial choices.

So, it is more to their personal desire on what they decided.

Finally, the cause of financial problems is living away from family. For majority

students, it is their first time to live independence and support themselves. When they with

their family, all their finance were managed by they parents. But when they entering the

college, they cannot handle all their finances. They do not know how to spend their money

wisely and save money for future used. They do not have anyone to manage and control

their financial except themselves. So, without any experience in handling their own financial,

it is seem hard for them to control their budgets and expenses. Lifestyle in college and at

hometown is very different. Students have to survive and struggle by themselves. Financial
problems will make another burden for students. Students have to rely on money from their

family when their allowances run out. So, it is all depend on themselves to handle their own

finance. No one advise them in spending their money.

In conclusion, college students nowadays have financial problem during their study.

Poor financial management, overspend and living away from family is the main causes

students have financial problem.

1.3 Objective

1.3.1 To investigate whether KML students have financial problem.

1.3.2 To investigate the financial management among KML students.

1.3.3 To study KML student’s ways to overcome their financial problems.

 Questionaire

Gender: ☐ Male ☐ Female

Programme: ☐ PST ☐ PDT

Course: ☐ Module 1 ☐ Module 2 ☐ Module 3 ☐ Accountancy

Origin: ☐ Sabah ☐ Sarawak ☐ West-Malaysia

Ethnicity: ____________________________

A) To investigate whether KML students have poor financial problems.

Do you have a financial problem? ☐ Yes ☐ No

Are you from a boarding school? ☐ Yes ☐ No

Do you satisfy with your allowance? ☐ Yes ☐ No

Do you have any side allowance? (Yayasan Sarawak, JPA, etc)

☐ Yes ☐ No

Approximately, how much money did you spend in a month?

☐ Less than RM100 ☐ RM200 – RM300 ☐ RM400 – RM500

☐ RM100 – RM200 ☐ RM300 – RM400 ☐ More than RM500

B) To investigate the financial management among KML students.

Do you make a planning before you spend your money?

☐ Yes ☐ No

Which categories you spend more? (list according to the most priority (6) to the less

priority (1)
 Health Entertainment
Food
(Lotion, Perfume, etc) (earphones, etc)

Stationery Wardrobe Leisure

(Pens, Books, etc) (Neck-tie, Tudung, etc) (watching movies, etc)

How many time(s) in a week do you go outing? _____times

Is it necessary to spend more money on entertainment or leisure?

☐ Yes ☐ No

C) To study KML students’ ways to overcome their financial problems.

Do you spend your money more often on expensive things?

☐ Yes ☐ No

Do you need financial advisor?

☐ Yes ☐ No

Do you save your money for your future use?

☐ Yes ☐ No

Are you satisfy with your current financial management?

☐ Yes ☐ No

Give suggestion on how to overcome your financial problems.

______________________________________________________________________

______________________________________________________________________