2nd Draft Of Proposal (1).pdf

PROPOSAL FOR A REPORT ON FINANCE-RELATED ISSUES FACED BY UiTM SHAH ALAM STUDENTS AND WAYS OF OVERCOMING IT

I.

Background of the Study

Based on Cambridge Dictionary, it stated that finance can be defined as the management of money belonging to a person, group or organization [1]. It is also split into three sub-categories which are public finance, corporate finance and personal finance. Therefore, when it is about finance, there are many people facing hard financial time whereas causing them stress including the students. Furthering their studies in university involved a lot of money and it is a first time experience for students to manage their own finances without parents’ supervision.

A research conducted in the United States reveals that students experience different financial socialization and behave differently in certain aspects of financial activities. Since financial education is not expose in the school, almost 350,000 university students can be assumed to have minimal knowledge about financial, yet they must manage their money independently [2]. However, there are students who are easily influenced by other friends and without enough knowledge about financial management, they finally overspending. For students, money is important in order to survive in the challenging life at the university. Some of them get funds to further their study, willing to have debt and the others get the money from their parents. Clearly they are having different type of difficulties in financial problems and need to change their spending habits.

In addition, Leach, Hayhoe & Turner (1999) state that, early exposure to financial management is important for the younger generation because they have various obligations such as paying back the loans they used. Hence, the students need to be more responsible in managing their money and handling issues about sorting money by them. Besides, these studies to determine the category of students with their financial problems and identify the factors that affect their financial-related issues as well as to find the better ways to solve it.

II.

Problem Statement Financial management is an effective way to manage monthly expenses among students of UiTM Shah Alam. Financial management is important because it can reflect on their future living ways and life attitudes.

However, students are not adequately prepared to manage their own finances. This lead to finance-related issues faced by students of UiTM Shah Alam. Apart from that, students are not planning a budget spending plan. Without a budget plan, students may have a hard time keeping their money in a good order. Students also cannot differentiate between their wants and needs. In this digital age, students more inclined to buy stuff that they do not need. Moreover, students are not planning for their future. They tend to buy everything that they want but they are not considering for taking steps to avoid financial problems. [3]

In response to this problem, our study proposes to create awareness on how to manage the finances. We plan to make recommendations on how to overcome the financial-related issues and improve financial management among students.

III.

Aims

A. To determine the categories of students from different background of family B. To determine how students support themselves financially C. To identify factors that affect students’ financial expenses

IV.

Objectives

A. To create awareness on how to manage finances B. To make recommendations on how to overcome the financial-related issues C. To present the report to the higher authorities

V.

Methodology The questionnaire’s method was chosen to study the finance-related issues faced by students of Universiti Teknologi Mara (UiTM) Shah Alam and ways of overcoming it. The survey will be conducted and will be focusing on students at UiTM Shah Alam. One hundred sets of questionnaire will be distributed to the students at the faculties, cafeterias and colleges on April 2019. In this study, the questionnaire is used to investigate the factors affecting the students’ finance-related issues and how to overcome the problem. The questionnaire provides the background of respondents from different family background that will produce different data. Closed-ended questions and open-ended questions are used in this questionnaire. The closed ended questions will provide the multiple choice answers for respondents to choose while for the open-ended questions, the respondents will give their opinions based on the questions being asked. The questionnaire will be distributed during the peak hour since there will be the highest number of respondents. The returned questionnaire will be tabulated for the data collection and analyzed by using bar chart and pie chart.

QUESTIONNAIRE FOR EWC661 Section A: Student’s Background. For this section, tick only one answer for each question. Fill in starred question with appropriate answer. You are required to answer all questions in this section. 1. What is your gender? ☐ I am a male

☐ I am a female

2. What is your current age? ☐ 18 to 20 years old ☐ 21 – 23 years old ☐ 27 – 29 years old

☐ 24 – 26 years old

☐ 30 years old or older

3. Which faculty are you from? (Please state in the space below) ………………………………………………………………………………………………. 4. What is your current semester? ☐ Semester 1 ☐ Semester 2

☐ Semester 3

☐ Semester 4

☐ Semester 5

☐ Semester 6

☐ Semester 7

☐ Others

5. Which category of family income does your family come under? ☐ RM1,000 or less ☐ Between RM1,001 to RM5,000 ☐ Between RM5,001 – RM10,000 ☐ Between RM10,001 – RM15,000 ☐ Between RM15,001 and above 6. How many persons are there in your household? ☐ One person ☐ Two persons ☐ Four persons

☐ Five persons

☐ Three persons ☐ Six persons or more

Section B: Financial Management. For this section, tick only one answer for each question. If you pick “Others”, you are required to fill in the space below it by writing any appropriate answers. Fill in starred question with appropriate answer. You are required to answer all questions in this section.

1. How do you support yourself financially every month? ☐ My parents or family members support me financially ☐ I apply for funds such as PTPTN, Zakat or other scholarships ☐ I do part-time work to support myself ☐ I own a business to support myself ☐ I make some investments to support myself ☐ Others (Please state in the space below) …………………………………………………………………………………………………..

2. How much allowance did you get in a month? ☐ Between RM1,000 or less ☐ Between RM1,000 to RM 2,000 ☒ Between RM 2,001 to RM 3,000 ☐ Between RM3,001 to RM4,000 ☐ Between RM4,001 to RM5,000

☐ More than RM5,000

3. How much do you spend on your expenses for a month? a. How much do you spend in education such as books, stationeries and printing? ☐ RM100 or less ☐ Between RM101 to RM200 ☐ Between RM201 to RM300 ☐ Between RM301 to RM400 ☐ RM500 or more b. How much do you spend on entertainment such as movies, gadgets and theatres? ☐ RM100 or less ☐ Between RM101 to RM200 ☐ Between RM201 to RM300 ☐ Between RM301 to RM400 ☐ RM500 or more c. How much do you spend on food? ☐ RM100 or less ☐ Between RM201 to RM300 ☐ RM500 or more

☐ Between RM101 to RM200 ☐ Between RM301 to RM400

d. How much do you spend on transportation such as bus, cab, and gas? ☐ RM100 or less ☐ Between RM101 to RM200 ☐ Between RM201 to RM300 ☐ Between RM301 to RM400 ☐ RM500 or more e. How much do you spend on accommodation such as house rental, hostel and guest house? ☐ RM100 or less ☐ Between RM101 to RM200 ☐ Between RM201 to RM300 ☐ Between RM301 to RM400 ☐ RM500 or more f.

How much do you spend on personal needs? ☐ RM100 or less ☐ Between RM101 to RM200 ☐ Between RM201 to RM300 ☐ Between RM301 to RM400 ☐ RM500 or more

4. How do you overcome your financial issues? ☐ I borrow money from my friends ☐ I ask for money from my family ☐ I fast or eat only when I need to ☐ I get a part-time job to support myself ☐ Others (Please state in the space below) ………………………………………………………………………………………………….. 5. State an effective way that you always use to manage your financial.* …………………………………………………………………………………………………..

VI.

REFERENCES A. Cambridge Dictionary. Retrieved from https://dictionary.cambridge.org/dictionary/english/finance B. Journal of personal finance (January 2004) by Jariah Masud Retrieved from https://www.researchgate.net/publication/228404924_Financial_behavior_and_pr oblems_among_university_students_Need_for_financial_education C. UNL Parent Newsletter (2012, Aug 14) 6 Common Money Management Mistakes College Students Make. Retrieved from https://newsroom.unl.edu/announce/parentnews/1426/8291