THE EFFECT OF FINANCIAL LITERACY ON

PERSONAL FINANCIAL MANAGEMENT AMONG

FKP
UNIVERSITY STUDENTS

MUHAMMAD ZULWAQOR BIN AHMAD EHSAN

NABILA BINTI ISMAIL
NASRIN AUNI BINTI MOHD NASIR
NAZIHA BINTI MOHD ARIFIN

DEGREE OF BUSINESS ADMINISTRATION (ISLAMIC BANKING AND

FINANCE)
2024
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The Effect of Financial Literacy On Personal Financial
Management Among University Students

by

Muhammad Zulwaqor Bin Ahmad Ehsan Nabila Binti Ismail

Nasrin Auni Binti Mohd Nasir Naziha Binti Mohd Arifin

A thesis submitted in fulfillment of the requirements for the degree of

BUSINESS ADMINISTRATION (ISLAMIC BANKING AND FINANCE)

Faculty of Entrepreneurship and Business UNIVERSITI

MALAYSIA KELANTAN

2024
 APPENDIX 3: THESIS DECLARATION

THESIS DECLARATION

FKP
I hereby certify that the work embodied in this thesis is the result of the original research and
has not been submitted for a higher degree to any other University or Institution.

OPEN ACCESS I agree that my thesis is to be made immediately available as

hardcopy or on-line open access (full text).

EMBARGOES I agree that my thesis is to be made available as hardcopy or on-line

(full text) for a period approved by the Post Graduate Committee.
Dated from ______________ until _______________.

CONFIDENTIAL (Contain confidential information under the Official Secret

Act 1972)*

RESTRICTED (Contains restricted information as specified by the organization

where research was done)*

I acknowledge that Universiti Malaysia Kelantan reserves the right as follows:

1. The thesis is the property of Universiti Malaysia Kelantan.
2. The library of Universiti Malaysia Kelantan has the right to make copies for the purpose of
research only.
3. The library has the right to make copies of the thesis for academic exchange.

____________________________
waqor
SIGNATURE SIGNATURE OF SUPERVISOR
NAME: MUHAMMAD ZULWAQOR NAME: ENCIK ZUL KARAMI BIN CHE
BIN AHMAD EHSAN MUSA

Date:
nabila
SIGNATURE
NAME: NABILA BINTI ISMAIL

auni
SIGNATURE
NAME:NASRIN AUNI BINTI MOHD
NASIR

naziha
SIGNATURE
NAME: NAZIHA BINTI MOHD ARIFIN

Date:
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ACKNOWLEDGEMENT

We would first and foremost like to extend our sincere appreciation to

everyone who helped us finish this senior project. We are incredibly appreciative of
Encik Zul Karami Bin Che Musa, our supervisor, who has constantly helped us
improve, provided advisers, and provided comprehensive supervision so that we could
finish our research project. We are appreciative of our instructor for providing us with
so much fresh knowledge regarding our study topic as it became more in-depth.

The Faculty of Entrepreneurship and Business (FPK) at the University of

Malaysia Kelantan, in particular, has our sincere thanks for giving us the chance to
conduct this study so that we can finish our coursework and graduate as soon as
possible. Additionally, we would like to convey our thanks to the members of our
group who, despite the challenges, have consistently been committed to making this
research endeavour a success. We could not have finished our study assignment in the
allowed time without their help. Last but not least, a heartfelt thank you to our
cherished family for their financial support, encouragement, and drive to work hard in
our studies.

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ABSTRACT

The main purpose of this paper is to investigate whether financial literacy would
impact personal financial management by using a sampling of selected Universiti
Malaysia Kelantan students. The data obtained from quantitative methods Financial
literacy is well documented to affect personal financial decision-making and, hence,
financial wellness. Therefore, this is why financial literacy is crucial. On top of that,
examining earlier research from studies conducted outside of Malaysia suggests that
financial literacy among students is required to prevent any difficulties from
developing in the future as a result of a lack of information about personal financial
management. This study emphasises the significance of financial literacy among
students by examining financial awareness, financial knowledge, financial habits and
behaviours, and financial attitudes.

Keywords: financial attitudes, financial awareness, financial habits and

behaviours,financial knowledge and personal financial management.

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TABLE OF CONTENT
ACKNOWLEDGEMENT............................................................................................ i

ABSTRACT…………………………………………………………………………...ii
LIST OF TABLES.......................................................................................................vi

LIST OF FIGURE.....................................................................................................viii

CHAPTER 1: INTRODUCTION................................................................................1

1.1 BACKGROUND OF THE STUDY..........................................................................1

1.2 PROBLEM STATEMENT........................................................................................2

1.3 RESEARCH QUESTION.........................................................................................3

1.4 RESEARCH OBJECTIVES.....................................................................................4

1.5 SCOPE OF THE STUDY.........................................................................................4

1.6 SIGNIFICANCE OF STUDY...................................................................................5

1.7 DEFINITION OF TERM..........................................................................................5

1.8 ORGANIZATION OF THE PROPOSAL................................................................7

CHAPTER 2 : LITERATURE VIEW.........................................................................8

2.1 INTRODUCTION....................................................................................................8

2.2 UNDERPINNING THEORY....................................................................................8

2.3 PREVIOUS STUDIES THE EFFECT OF FINANCIAL LITERACY ON

PERSONAL FINANCIAL MANAGEMENT AMONG UNIVERSITY
STUDENTS..................................................................................................................10

2.4 HYPOTHESIS STATEMENT................................................................................14

2.5 CONCEPTUAL FRAMEWORK...........................................................................16

2.6 CONCLUSION.......................................................................................................16

CHAPTER 3: RESEARCH METHODS..................................................................17

3.1 INTRODUCTION..................................................................................................17
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3.2 RESEARCH DESIGN............................................................................................17

3.3 DATA COLLECTION METHOD..........................................................................18

3.4 STUDY POPULATION..........................................................................................19

3.5 SAMPLE SIZE.......................................................................................................19

3.6 SAMPLING TECHNIQUES..................................................................................20

3.7 RESEARCH INSTRUMENT DEVELOPMENT...................................................21

3.8 MEASUREMENT OF THE VARIABLES............................................................21

3.9 PROCEDURE FOR DATA ANALYSIS................................................................22

3.10 CONCLUSION………………………………………………………………….24

CHAPTER 4: DATA ANALYSIS AND FINDINGS

4.1 INTRODUCTION………………………………………………………………..25
4.2 PRELIMINARY ANALYSIS…………………………………………………….25
4.3 DEMOGRAPHIC PROFILE OF RESPONDENTS……………………………...27
4.3.1 GENDER………………………………………………………………….. 28
4.3.2 AGE ………………………………………………………………………..29
4.3.3 RACE……………………………………………………………………….30
4.3.4 STATUS…………………………………………………………………….31
4.3.5 PROGRAMME…………………………………………………..................32
4.3.6 YEARS OF STUDY …… ………………………………………..….……33
4.3.7 FINANCIAL SOURCES………………………………………………….. 34
4.3.8 PLACE OF RESIDENCE DURING THE STUDY………………………..35
4.4 DESCRIPTIVE ANALYSIS……………………………………………………...35
4.4.1 DESCRIPTIVE ANALYSIS OF DEPENDENT VARIABLE……………..36
4.4.2 DESCRIPTIVE ANALYSIS OF INDEPENDENT VARIABLE…………..37
4.5 VALIDITY AND RELIABILITY TEST………………………………………....41
4.6 PEARSON CORRELATION……………………………………………………..43
4.6.1 CORRELATION BETWEEN FINANCIAL AWARENESS
AND PERSONAL FINANCIAL MANAGEMENT……………………….44
4.6.2 CORRELATION BETWEEN FINANCIAL KNOWLEDGE
AND PERSONAL FINANCIAL MANAGEMENT………………..………45

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4.6.3 CORRELATION BETWEEN FINANCIAL HABITS AND BEHAVIOUR
AND PERSONAL FINANCIAL MANAGEMENT………………….……. 46
4.6.4 CORRELATION BETWEEN FINANCIAL ATTITUDES AND PERSONAL
FINANCIAL MANAGEMENT…………………………………………… 47
4.7 HYPOTHESES TESTING……………………………….………………………48
4.7.1 HYPOTHESIS 1……………………………………….………………….. 49
4.7.2 HYPOTHESIS 2……………………………………………..……………..50
4.7.3 HYPOTHESIS 3…………………………………………..………………..50
4.7.4 HYPOTHESIS 4……………………………………………...…………….51
4.8 SUMMARY/CONCLUSION……………………………………….……………52

CHAPTER 5: DISCUSSION AND CONCLUSION

5.1 INTRODUCTION………………………………………………………………..53

5.2 KEY FINDINGS………………………………………………………………….53

5.3 DISCUSSION…………………………………………………………………….55

5.3.1 HYPOTHESIS 1………………………………………...…………………55

5.3.2 HYPOTHESIS 2………………………………………...…………………55

5.3.3 HYPOTHESIS 3………………………………………...…………………56

5.3.4 HYPOTHESIS 4………………………………………...…………………56

5.4 IMPLICATIONS OF THE STUDY………………………………………………57

5.5 LIMITATIONS OF THE STUDY………………………………………………..58

5.6 RECOMMENDATIONS/ SUGGESTION FOR FUTURE RESEARCH………..59

5.7 OVERALL CONCLUSION OF THE STUDY…………………………………..59

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LIST OF TABLE

CHAPTER 3................................................................................................................ 17
Table 3.1 : Krejcie & Morgon table.............................................................................. 20
Table 3.2: Rule of thumb for interpreting the size of a correlation coefficient.............24
CHAPTER 4................................................................................................................ 25
Table 4.1: Reliability level and its coefficient of Cronbach’s alpha............................. 26
Table 4.2: The Results of Pilot Test for All Variable by Reliability Test..................... 27
Table 4.3: Demographic profile of gender.................................................................... 28
Table 4.4: Demographic profile of Age........................................................................ 29
Table 4.5: Demographic profile of Race.......................................................................30
Table 4.6: Demographic profile of Status..................................................................... 31
Table 4.7: Demographic profile of Programme............................................................ 32
Table 4.8: Demographic profile of Years of Study....................................................... 33
Table 4.9: Demographic profile of Financial Sources.................................................. 34
Table 4.10: Demographic profile of Place of Residence During The Study................ 35
Table 4.11: Descriptive Analysis of Personal Financial Management......................... 36
Table 4.12: Descriptive Analysis of Financial Awareness............................................37
Table 4.13: Descriptive Analysis of Financial Knowledge.......................................... 38
Table 4.14: Descriptive Analysis of Financial Habits and Behaviour.......................... 39
Table 4.15: Descriptive Analysis of Financial Attitudes.............................................. 40
Table 4.16: Case processing summary..........................................................................41
Table 4.17: Reliability statistics.................................................................................... 42
Table 4.18: Results of reliability Cronbach’s Alpha for the variables.......................... 42
Table 4.19: The scale of Pearson’s Correlation Coefficient..........................................43
Table 4.20: Pearson Correlation Analysis between Financial Awareness and Personal
Financial Management..................................................................................................44
Table 4.21: Pearson Correlation Analysis between Financial Knowledge and Personal

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Financial Management..................................................................................................45
Table 4.22: Pearson Correlation Analysis between Financial Habits and Behaviour and
Personal Financial Management................................................................................... 46
Table 4.23: Pearson Correlation Analysis between Financial Attitudes and Personal
Financial Management..................................................................................................47
Table 4.24: Pearson Correlation....................................................................................48
CHAPTER 5................................................................................................................ 53
Table 5.1: Findings of the Result.................................................................................. 54

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LIST OF FIGURES

CHAPTER 2………………………………………………………………………….. 8
Figure 2.1: Framework Theory of Planned Behaviour (Tpb)......................................... 9
Figure 2.2: Conceptual Framework Model…………………………………………...16

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CHAPTER 1

INTRODUCTION

1.1 BACKGROUND

Financial literacy is the behavior, information, awareness, attitude, and skill

needed to make wise financial decisions and, ultimately, attain personal financial
well-being, according to the OECD (Sangeeta et al., 2022). Financially literate
individuals are better equipped to manage their money and respond to any situation,
especially concerning money concerns. Financial literacy has become an essential
individual life skill in many parts of the world after the Asian Financial Crisis in 1998,
the Global Financial Crisis in 2008, and the Europe Sovereign Debt Crisis in 2012.

Financial literacy is a fundamental awareness of personal finance concepts

(Yong & Tan, 2017). Financial literacy makes Planning and managing finances easier
by giving them the knowledge, attitudes, and skills required to maintain a sound
financial position in both present and future circumstances. Enhancing financial
literacy will help one acquire assets or maintain financial security, or make wise
financial decisions, particularly in the unpredictable and quickly changing financial
markets. Therefore, educated and financially literate consumers are in a more
favorable position to make sound decisions for themselves or their families, as they
usually have higher financial stability and well-being. (Ana Shakirah [Link] @
[Link] & Wan Marhaini Wan Ahmad, 2020).

Personal financial management, which includes investing, budgeting,

managing debt, saving, and other areas of personal money, enables individuals to
manage their homes' finances and pursue their particular goals. The technique of
methodically controlling income and budgeting expenses is known as personal
financial management. Our ability to make our money work for us depends on our
ability to handle our finances effectively. This is why preparation is essential. Hence,

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creating a solid plan for action and implementing it to accomplish the desired goals or
targets is the process of planning (Munohsamy, 2015).

Financial planning is a dynamic process that varies as our professional paths

develop and our life stages advance, a reassessment of the plan is necessary as the
situation evolves. Thus, to see if people can achieve their financial goals within the
specified time frame, they must actively assess their financial plans when their life
objectives and financial situation change. Personal financial planning and
management are crucial for every person as they would have a better life due to good
personal financial management. The better our financial situation becomes, the better
our lives will be in the future as well as today. Most of the research on financial
literacy on personal financial management discovered that students had poor personal
financial management habits (Kwenda & Sihlongonyane, 2021).

1.2 PROBLEM STATEMENT

Many researchers are currently concentrating on the notion of financial

literacy. Being financially literate or knowledgeable is essential and crucial for
individuals to handle their money. Sadly, Malaysia is one of the nations with one of
the lowest levels of financial literacy (Ibrahim et al., 2009). Lack of financial support
accelerates awareness of increasing people's financial literacy. According to Yong and
Tan (2017) having a basic understanding of finance can help people become more
informed about economic issues. Inappropriate spending will have adverse effects on
contributors to the economy as well as on individuals' well-being.

The student who lacks knowledge and proper financial management skills can
experience financial problems (Gumbo et al., 2022). Therefore, personal financial
management knowledge is crucial to help students make the best financial decisions
possible. If they have enough financial understanding, they will be able to understand
the risks they take on (Mohamad Fazli Sabri & Juen, 2014). Thus, personal finances
must be organised, planned, and managed. Exposure to financial literacy students
would help them make decisions that would have financial consequences after
graduation. Finance-related topics are still incredibly trivial in Universiti Malaysia
Kelantan. Hence, people must become more financially literate, especially college

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students, in order for them to have good money management attitudes before starting a
career. The students' positive outlook will enable them to practise sound personal
money management as working adults.

Perbadanan Tabung Pendidikan Tinggi Nasional is a government study loan

that the government offers to Malaysian students enrolled in tertiary education. Most
students in higher education institutions in Malaysia receive this loan. Since education
is the only purpose for PTPTN loans, it takes meticulous planning to ensure the money
is used effectively. Consequently, the students wind up with additional debt and
financial issues if they do not use the loan properly (Zulfaris et al., 2020). Thus, the
capacity to make wise financial decisions is crucial for students, and financial
education is critical for college students to enhance their skills in financial planning.
Since most of the research in the field does not address financial literacy among
students, this study aims to determine the level of financial literacy in personal
financial management among University Malaysia Kelantan (UMK) students. Based
on the preceding, the study examined structural relationships between financial
awareness, financial knowledge, financial habits and behavior, and financial attitudes
as relevant variables.

1.3 RESEARCH QUESTION

In this study, UMK students' personal financial management will be evaluated

in relation to their financial literacy. The following inquiries are tried to be answered
by this study:

1. What impact does financial awareness have on personal financial management

among students?
2. What impact does financial knowledge have on personal financial management
among students?
3. What impact do financial habits and behaviours have on personal financial
management among students?
4. What impact do financial attitudes have on personal financial management
among students?

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1.4 RESEARCH OBJECTIVES

The goal of this study is to examine the impact of financial literacy on personal
financial management among students at Universiti Malaysia Kelantan (UMK). In
addition, the researcher has specific research goals targeted at this investigation, which
are:

1. To identify whether financial awareness affects students' personal financial

management.
2. To identify whether financial knowledge affects students' personal financial
management.
3. To identify whether financial habits and behaviour affect students' personal
financial management.
4. To identify whether financial attitudes affect the personal financial
management of students.

1.5 SCOPE OF STUDY

This study aims to explore the effect of financial literacy on personal financial
management among University Malaysia Kelantan (UMK) students. Therefore, the
scope of this study has been limited to University Malaysia Kelantan (UMK) students
in the Faculty of Business and Entrepreneurship (FKP) in order to accomplish the
goal. It is because the researcher is also a University Malaysia Kelantan (UMK)
student, so it will be easily connected to access to the respondents. Researchers will
implement the quantitative method in terms of the questionnaire form for this study.
The reason researchers choose these groups of respondents is because students usually
will face a problem managing their money, especially from their scholarship they get.
The accumulated financial literacy of consumers, particularly college students,
appears to be less prepared to address these financial difficulties as the need for key
financial knowledge grows (Williams & Oumlil, 2015). So, the researcher would like
to conduct a study on the effect of financial literacy on personal financial management
among University Malaysia Kelantan (UMK) students that focus on undergraduate in
the Faculty of Business and Entrepreneurship students.

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1.6 SIGNIFICANCE OF STUDY

The study's findings are expected to be able to provide crucial information and
knowledge regarding the effect of financial literacy on personal financial management
among undergraduate students. Financial literacy is the ability to understand and use a
range of financial skills, including personal finance management, budgeting, and
investing (Fernando, 2023). According to Garg and Singh (2018), the task of
managing money is getting more challenging, especially for young people. Because of
this, a number of countries and organizations have made an effort to raise people's
financial literacy levels. Good financial management at a young age will benefit
young in old age. Long-term financial success can be severely harmed by a person's
lack of financial literacy. Hence, knowledge about personal financial management is
such an important thing for youth, especially undergraduate students.

1.7 OPERATION DEFINITION

The terms contained in this research study are personal financial management,
financial awareness, financial knowledge, financial habits and behaviours and
financial attitudes to assist in the understanding of the research.

1.7.1 Personal Financial Management

Budgeting, savings, investments, debt management, and other areas of

personal financial management that help a person achieve their goals are all included
in personal finance management (Dew & Xiao, 2011). To put it another way, personal
financial management is the process of managing income and planning out expenses.
An individual learns to adjust the use of money to suit the systematically set expenses
(Lai & Tan, 2009). Therefore, personal financial management is a key component as a
measure of a person's financial literacy level.

1.7.2 Financial Awareness

Financial awareness is the key to a student's financial success when measuring

the level of financial literacy, as it is related to the awareness behind good or bad
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habits towards their financial management. Financially literate students are sure to be
prudent in spending their money within their means (Shawna Newman, 2022).
Expenses such as renting, borrowing, or making something out of reach have to be
done when there is no alternative. This challenge often occurs when students have
difficulty obtaining a hostel residence and are forced to rent outside the campus. The
challenges they face force them to spend more when they lack the facilities provided.
Hence, this situation gives them the financial awareness to manage their finances more
carefully.

1.7.3 Financial Knowledge

A person who is financially literate has a fundamental understanding of the

idea of financial management. According to [Link] @ [Link] and Wan Ahmad
(2020), financial knowledge is a body of information acquired via education or
experience that is specifically tied to the idea of managing finances to improve
income, decrease expenses, increase assets, and reduce debt.

1.7.4 Financial Habits and Behaviour

Financial habits and behaviours refer to an individuals’ actions and behaviours

when it comes to financial management such as budgeting, saving, investing and
spending habits. Individual habits can show a degree of financial literacy in managing
their personal finances effectively. Financial literacy encourages individuals to behave
well in the use of money so that decisions in financial management are appropriate
and improve financial well-being (Dew & Xiao, 2011). Developing good financial
habits and behaviours can help individuals build wealth, achieve financial stability and
reduce financial stress.

1.7.5 Financial Attitude

Financial attitude are defined as beliefs, values and a person's tendency to

make financial decisions. Trust and value are both related to the concept of personal
finance when believing that good financial management has a good level of financial
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literacy towards savings. While the tendency influences a person on how to assess the
finances of management practices with some degree of agreement and disagreement
(Chowa et al., 2012; Parrotta & Pyllis and J. Johnson, 1998).

1.8 ORGANIZATION OF THE PROPOSAL

This study is focusing on the effect of financial literacy on personal financial

management among university students. In addition, the research question aimed to
determine how personal financial management was intended to be practised by
university students as well as the relationship between financial awareness, financial
knowledge, financial habits and behaviours, and financial attitude.

An overview of the background, problem statement, research question,

research objectives, scope of the study, definition of term, and organization of the
proposal are provided in Chapter 1. This chapter provided an outline of the research
methodology which was the quantitative data collection method that was used in
research.

Chapter 2 discussed the literature review on introduction, underpinning theory,

previous studies, hypotheses statement, conceptual framework and summary of the
effect of financial literacy on personal financial management among university
students such as financial awareness, financial knowledge, financial habits and
behaviours and financial attitude.

Introduction, research design, data collection methods, study population,

sample size, sampling procedures, research instrument development, measurement of
the variables, procedure for data analysis, and summary are all covered in Chapter 3's
analysis of the research methodologies.

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CHAPTER 2

LITERATURE REVIEW

2.1 INTRODUCTION

This chapter will discuss the analysis related to research studies on the
elements that motivate students on personal financial management. Dependent
variables and independent variables will also be defined in this chapter. This section
provides a deeper understanding of how the study design was developed, including the
dependent variable—personal financial management—and the independent variable
(financial awareness, financial knowledge, financial habits and behaviour and
financial attitude).The structure and goals of this study are judged to be compatible
with some parts of previous studies. Along with the conceptual framework and
characteristics, we also cover hypothesis formation in depth in this chapter. Finally, a
summary brings this chapter to a close.

2.2 UNDERPINNING THEORY

2.2.1 Theory of Planned Behavior (TPB)

Theory functions as justifications, descriptions of, or forecasts phenomena

specific to a conceptual framework. Theory acts as a link between or among variables.
Three key components of behavioural intentions are included in the theory of planned
behaviour: perceived control of behaviour, attitude, and subjective norms. The Theory
of Planned Behaviour (TPB), created by the Theory of Reasoned Action (TRA), seeks
to foretell a person's intentions when acting in a certain way at a specific time and
location. It is crucial to comprehend how the Theory of Planned Behaviour (TPB) can
describe a person's behaviour to observe financial literacy from a behavioural
approach. Behavioural attitudes, subjective norms, and perceived behaviour control
influence behavioural intentions. The Theory of Planned Behaviour (TPB) holds that a
behaviour's aim is the best predictor of its outcome, which is controlled by the
behaviour's attitude and social normative perception. Financial literacy is the ability
and confidence of a person to apply financial knowledge and make personal financial
decisions that must be handled. Thus, To comprehend the functioning of the financial
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literacy process, TPB can be used in this regard. Knowing how much control each
person has over financial decisions allows them to judge better.

Figure 2.1: Framework Theory of Planned Behaviour (TPB)

TPB argues that as attitude significantly affects intention and behaviour, it

becomes one of the key determinants. The perceived result of behaviour and the
outcome of that behaviour can both be factors that can influence a person's attitude. It
is stated under the TBP that actual behaviour is hindered by subjective and objective
causes when the individual intends to perform a behaviour. This study shows that
students will be motivated to engage in excellent financial literacy on personal
financial management practices if they believe that particular financial behaviour, such
as saving, would improve their financial well-being as students and in the future as
employees. Human beings make decisions by using information systematically
available because they are rational, according to TRA and TPB (Kwenda &
Sihlongonyane, 2021).

In this theory, it can be argued that students will be more willing to engage in
good financial literacy on personal financial management if they have good financial
behaviour, according to Kwenda & Sihlongonyane (2021). However, other factors can
also influence the student's intention to engage in sound financial management, either
within or outside the student's control. Students may be prevented from exhibiting
effective financial management behaviour for various reasons, such as a lack of
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financial knowledge and financial awareness. Considering that attitude is thought to
be the most important aspect in determining someone's intention to do something, this
study can be attributed to TPB. There is no attitude if there is no object because
attitude is usually directed towards something. Objects, views, people, norms, events,
institutions, and others are subject to attitudes. In this study, attitude toward financial
literacy indicate how students in UMK determine whether financial literacy on
personal financial management is essential to know and apply and how this influences
their financial decisions. Furthermore, TPB determines a student's attitude toward
financial literacy.

In addition, based on the journals that researcher referred to, financial

literacy among Malaysian muslim undergraduates Ana Shakirah [Link] @
[Link] and Wan Marhaini Wan Ahmad (2020) and Financial Literacy of Youths: A
Case Study of Islamic Banking and Finance Students in Kolej Universiti Islam
Antarabangsa Selangor Ahmad et al. (2016) stated that theoretical research of the
financial awareness, financial knowledge, financial habits and behaviour and financial
attitudes are effect towards financial literacy on personal financial management.

2.3 PREVIOUS STUDIES

2.3.1 Personal Financial Management

Based on the previous study, financial management among students is crucial

especially in the modern era. The capability and certainty to manage one's personal
finances through smart, long-term financial planning and acceptable, short-term
decision-making are qualities that are referred to as financial literacy (Remund, 2010).
Understanding financial management in terms of investing, saving, budgeting, and
insurance is referred to as financial literacy. Young people at this age will waste their
money on unnecessaries things because they are influenced by social media. For
instance, they would like to adopt a trend but are unable to do so, like purchasing a
pricey smartphone. They use their scholarship to pay for their needs as a result. This is
due to the fact that youngsters are becoming financially independent for the first time
without continual parental oversight and direction (Marko Van, 2020). As a result,

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they are in financial difficulty, which affects their ability to maintain their lives
(Bamforth et al., 2018).

It shows this type of group has poor financial literacy and management, and
only focuses on short-term goals. According to Tay Yee Ling (2020), the financial
literacy among Malaysian university students tends to be low to moderate. Men and
women score on average 45.14% and 46.26% in terms of financial literacy,
respectively. They have the least knowledge, especially in terms of investment. The
number of these percentages is at a very alarming level and should be given attention
by the government especially. This is because they are less exposed to this matter.
Hence, every person lives a better life when they are in control of their personal
finances management.

2.3.2 Financial Awareness

Financial awareness and financial literacy are closely associated since

understanding the value of good money management is a crucial first step in achieving
financial literacy. When it comes to understanding the motivations behind his financial
transactions and his good or poor behaviours, the key to a student's financial success is
influenced by financial awareness. By having a high financial awareness value
students can avoid spending money earned from scholarships and study loans to
non-beneficial things. According to [Link] @ [Link] and Wan Ahmad (2020)
people with a high level of financial literacy were cautious and lived within their
means. In order to keep their financial situation stable, students nowadays must
effectively manage their financial resources (Osman et al., 2023) especially from their
scholarship and education loan.

In turn, financial awareness among students is an important factor to ensure

that they have high financial literacy value. Therefore, programs related to financial
awareness should be organized more frequently to ensure that students get exposure to
good personal financial management. Although educated university students are more
financially literate than other young groups, the former nevertheless have difficulty

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comprehending difficult ideas, such as compound interest (Bamforth et al., 2018).
Therefore, they need to get more disclosure related to financial awareness.

2.3.3 Financial Knowledge

Financial knowledge has a close association with financial literacy. Therefore,

financial knowledge is described as a crucial component of financial literacy (Huston,
2010), and it is frequently used similarly with financial literacy. According to Huang
et al., (2013) financial knowledge is viewed as a person's comprehension of financial
ideas. Financial knowledge consists of four components which are basic money
concept, investment, borrowing, and protection concept. With financial knowledge
students will gain an understanding of basic financial facts that can confuse students,
such as their student loan interest rates, savings through reductions and partnerships,
and returns from future investments ([Link] @ [Link] & Wan Ahmad, 2020).

Therefore, in order to prevent financial product fraud and illegal behaviour,

students need to have adequate financial knowledge. Based on [Link] @ [Link]
and Wan Ahmad (2020), students, especially Muslim students should be made aware
that any savings or investment that yields interest, or "riba" as it is called in Arabic, of
any kind is considered "haram" and is not acceptable.

2.3.4 Financial Habits and Behaviours

According to the OECD (2013), financial habits and behaviours are very
important and are a fundamental component in measuring an individual's level of
financial literacy. The level of financial literacy can be measured through planning
behaviour, investment behaviour, bill payment behaviour, saving behaviour and
budget behaviour. According to Bhushan (2014), behaviour is said when individuals
show good financial habits in making spending decisions and managing finances well
such as individuals show good financial habits in making spending decisions and
managing finances well building appropriate budget programs and controlling them,
fast bill payments and frequency of saving. Meanwhile, individuals who manage
finances well will disclose their financial behaviours such as recording expenses,

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making financial budgets, planning expenses in advance, and comparing prices before
buying (Dwiastanti, 2015; Nababan & Sadalia, 2013).

Thus, individuals with high financial literacy stability will exhibit positive
financial behaviour towards financial management plans. Banerjee et al. (2017) also
say that positive financial behaviour affects improving financial literacy and they will
not have difficulties in making financial decisions and are always satisfied with the
financial management competencies they set.

2.3.5 Financial Attitudes

The dimension of financial attitudes refers to the consideration, tendency, or

tendency to respond positively or negatively to financial management. A person's
money management skills are significantly influenced by their financial attitudes
(Shih & Ke, 2013). Student financial concerns in obtaining a loan or study scholarship
are shaped according to three focus aspects, such as money management surveys,
availability and financial services operations, and a list of financial providers that
maintain financial services. Therefore, students will be considered to have a positive
financial attitude when they are of the view that debts that cannot be paid should be
avoided because they are not likely to become borrowers (Kiyosaki, 2022).

The way someone manages money will be shown by their financial attitude
(Furnham, 1984). The results of a study by Akben-Selcuk (2015) show that a person's
attitude towards money influences their level of financial literacy. People with a
positive attitude towards financial management divide their monthly bill payments
more wisely, keep a monthly budget, and manage their future savings effectively.
People with a positive financial attitude will be cautious in controlling their financial
expenses, claim (Sabri & Aw, 2020). This is due to their conviction that meticulous
planning and budgeting can assist in meeting future financial requirements.

In addition, financially literate individuals show a positive attitude towards

financial management by maintaining their goal of saving money or managing money
consistently. According to Parrotta and Phyllis and J. Johnson (1998), people are more
likely to engage in good financial management when they have a positive attitude

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towards saving money. Overall, individuals with good financial management managed
to demonstrate the five basic dimensions of financial attitudes to measure their
financial literacy levels. Those dimensions are anxiety, interest in financial issues,
decision style, the need for precautionary savings, and spending tendencies.

2.4 HYPOTHESES STATEMENT

The hypothesis is a forecast or a clarification of the connection between two

variables. It indicates that independent and dependent variables have a predictable
connection. This research developed five hypotheses to investigate the connection
between the dependent and four other independent variables.

Personal financial management has a positive effect on the fundamental

importance of awareness, so to create financial stability, the element of financial
awareness must exist in a person because it is a factor that affects procrastination,
ultimately affecting decision-making. It will also affect financial decisions and
investments in the market (Dewi et al., 2020).

H1: There is a significant relationship between financial awareness and personal

financial management among students.

An understanding of financial income from financial knowledge that will be

applied in living their lives is based on an effort to obtain prosperity in the future by
obtaining financial data with actions according to financial understanding. As can be
obtained from correct training, for example, lectures and financial-based learning to
form financial resources and financial skills used to be more efficient and effective.

H2: There is a significant relationship between financial knowledge and personal

financial management among students.

Financial knowledge is the determining factor in forming a person's financial

behavior, so the behavior is the most significant effect in influencing personal
financial management. According to the concept of the financial behavior of funds,

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several assumptions will make it a financial decision. Therefore, financial behavior is
closely related to personal financial management (Kamel & Sahid, 2021).

H3: There is a significant relationship between financial habits and behavior and
personal financial management among students.

The personal financial management score of students becomes higher when

students show a high financial attitude, so financial attitude has a significant positive
effect on the personal financial management of UMK students. An individual's
financial attitude can help them in making decisions on matters related to finance, for
example, financial planning, financial administration, and how the individual settles
on a single business venture option. Thus, to improve financial knowledge and
implement financial attitudes, the development of programs specially designed by
policymakers and educational institutions that will shape a person's skills in managing
finances at the same time, improve a person's financial attitude by providing programs
related to financial basics (Kamel & Sahid, 2021).

H4: There is a significant relationship between financial attitudes and personal

financial management among students.

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2.5 CONCEPTUAL FRAMEWORK

Independent Variable Dependent Variable

Figure 2.2: Conceptual Framework Model

2.6 SUMMARY

The literature review linked to the preceding components was addressed in this
section's conclusion. Based on the literature study, the conceptual framework for the
proposal was developed. In this study, the dependent variable, personal financial
management, was examined together with the four independent variables, financial
awareness, financial knowledge, financial habits and behaviours, and financial
attitude. The researchers all agreed that there are four independent factors that affect
personal financial management. The chapter that follows provides specific instructions
for obtaining the findings of this study.

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CHAPTER 3

RESEARCH METHODS

3.1 INTRODUCTION

The method of research employed in this study is presented in this chapter. The
suggested research model was put to the test to see if it agreed with the hypotheses
and the methods used to collect the data in line with the goals of the research question
and the previous research study. This topic has been divided into several various parts
in this chapter, including the research design, sampling techniques, data collection
procedures, data analysis procedures, and summary. A review of the ethical decisions
made in performing this study finishes the paper.

3.2 RESEARCH DESIGN

Research design refers to the framework of market research methodologies and

procedures that the researcher has selected. Researchers employ the appropriate
approach for the design they have chosen in order to guarantee the success of their
investigations in the future. Research designs fall into two categories: qualitative and
quantitative. Researchers can choose from a number of possibilities under study
design, such as quasi-experimental studies, reviews, correlation studies, and
experimental investigations. Other subcategories of research methods include
designing experiments, developing research topics, and descriptive investigations.
Research design includes the following steps: gathering data, measuring using the
right tools, and interpreting the results.

Data collection and interpretation using numerical methods is called

quantitative research. It is often employed to determine trends, averages, projections,
and causal connections between the variables being examined. It is also used to
extrapolate research findings to the relevant population. The process of collecting,
analysing, and interpreting non-numerical data—like language from text, film, photos,
or audio recordings—is known as qualitative research. It is possible to get insight into
an individual's comprehension and interpretation of their social experiences through

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qualitative research. In-depth interviews or diary entries are good ways to collect this
sort of data, which may then be assessed using theme analysis or grounded theory.

Meanwhile, this study refers to the research paradigm to help lay down the
way the research will be conducted. A research paradigm is a framework that fits the
theory and practice of a discipline to create a research plan. The positivist research
paradigm leads to quantitative studies because in this model there is a reality that can
be measured and understood. Thus, positivist paradigm studies tend to propose
empirical hypotheses, which are then supported or disproved through gathering and
analysing data for research purposes.

The research for this study design follows descriptive research with
quantitative techniques. A questionnaire approach was selected to obtain data from a
multiple-choice survey given to the respondent in order to gather the data required for
this research. Respondents' opinions, facts, or attitudes can all be gathered with
questionnaires. An individual analysis serves as the study's analysis unit. Students at
Universiti Malaysia Kelantan are given questionnaires via social media.

3.3 DATA COLLECTION METHODS

Data collection is the systematic method of gathering and measuring variable

information, which enables one to run hypothetical tests, assess results, and respond to
stated research questions. The goal of data collecting is to gather high-quality
information that can be used for data analysis and to produce replies that are
believable and trustworthy to the submitted queries. Whether using quantitative or
qualitative data, sustaining the integrity of the research depends on accurate data
gathering. The selection of samples from a given population follows the determination
of the type of data to be used as the first step in the data gathering process.

This study used quantitative data collection. The quantitative approach

employs a methodical, standard approach and use techniques like surveying and
questioning. Quantitative data collecting techniques use random sampling along with
standardised instrumentation to collect data on a range of experiences within
established response categories. Collection of data from research by number of
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populations. The researchers use probability sampling for the chosen objective when
the population is greater.

In general, primary data collection involves collecting data from original

sources or personal experience. Primary data not yet changed by any source then its
validity is preferred over secondary data. Key findings were collected for this study
using a Google Form based questionnaire using the quantitative analysis approach.
Part A of the questionnaire for this study asks about demographic information like
gender, age, faculty of study, and programme of study. Personal financial management
is the dependent variables in Part B, whereas financial awareness, financial
knowledge, financial habits and behaviours, and financial attitudes are the four
independent variables in Part C.

3.4 STUDY POPULATION

In a study, a group of people from which a statistical sample is taken is called a

population. Therefore, a population is any group of people who share a characteristic.
Target population is a subset of the population who are identified as the targeted
audience for this study. The study’s target population are among University Malaysia
Kelantan (UMK) students in the Faculty of Business and Entrepreneurship (FKP).
According to the UMK’s database, the number of students in the Faculty of Business
and Entrepreneurship is 3535 undergraduates’ students. Thus, the target population for
this study is 3535 students.

3.5 SAMPLE SIZE

The quantity of observations needed to compute estimates for a given

population is known as the sample size. The total number of students of Faculty of
Business and Entrepreneurship (FKP) at Universiti Malaysia Kelantan (UMK) is 3535
students. The sample size of this study is determined based on Krejcie & Morgon
(1970) table. The researcher uses this table because it uses a fixed formula to estimate
population and is easier to estimate. Based on this table, the required number of
students for this study is 346 respondents.
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Table 3.1 : Krejcie & Morgon table

3.6 SAMPLING TECHNIQUES

Sampling is the process of selecting a representative sample from a population

using certain sampling techniques in order to observe and analyse the characteristics
of the entire population (Rahman et al., 2022). Sampling technique can be divided into
two categories which is probability sampling and non-probability sampling. For this
study, the researchers use probability sampling; probability sampling consists of
simple random sampling, stratified sampling, systematic sampling and cluster
sampling. Specifically, the researcher implemented a simple random sampling method
for this research. According to Thomas (2022), in a basic random sampling, a portion
of the population is selected at random. With this sampling strategy, there is an equal
chance for every member of the population to be chosen. The researcher chose this
technique because it is easy to conduct compared to other methods. Researchers do

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not need to divide the population into subpopulations or conduct any other additional
procedures before selecting respondents, unlike more complex sampling techniques.
From the entire population, researchers basically choose a certain number of
individuals.

3.7 RESEARCH INSTRUMENT DEVELOPMENT

3.7.1 PILOT STUDY

Before any data are collected, a pilot study can help determine whether the
technique is valid, potential issues, and the utility and efficacy of the selected
approach. To get input on the questionnaire's layout and the clarity of the questions, a
pilot study was carried out. Subgroups of the sample needed for this study are
employed for a pilot test in order to provide further clarification. Before we submit the
questionnaire to the majority of responders, this experiment will help us figure out
what is wrong with it.
As a result, the pilot test assists in avoiding questionnaire mistakes and in
gathering reliable data during the main data collection. to guarantee the questionnaire's
effectiveness. The targeted respondents each received one of thirty sets of
questionnaires. The instrument's pre-test is a crucial step since the findings will
demonstrate whether the research effectively meets its goals. Additionally, it will steer
clear of queries and responses having murky or confusing meanings.

3.8 MEASUREMENT OF THE VARIABLES

Measurement Variables consist of unfamiliar components that may be used to

measure a certain entity by taking one or more values. To decide which statistical
inference test to use for each scale variable, the researchers will gather and evaluate
data. The four different types of measurement scales are nominal, ordinal, interval,
and ratio scales. Nominal and ordinal (Likert scale) measuring scales are employed in
this survey. We organised the questionnaire into six pieces. Part A, which represents
the respondent's profile in terms of demographics, is the first portion. Section B, the
second section, contains the item for dependent variables. The questions in the next

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section, sections C, D, E, and F are connected to the independent variables. This
research's questionnaire item was modified for use in another investigation.

3.8.1 Nominal Scale

For qualitative variables, a nominal scale is used. As a result, only numbers are
used to classify or identify things in this context. For qualitative variables, a nominal
scale is used. As a result, only numbers are used to classify or identify things in this
context. Foremost and affordable method of measuring is this one. Responses on a
nominal scale are simply named or categorised. The demographic profile of each
respondent is computed using the nominal scale in surveys created for the section A
inquiry. Gender, age, ethnicity, and course are all measured on a nominal scale
depending on the surveys in order to assess the target respondents.

3.8.2 Ordinal Scale

Numerical variables employ an ordinal variable. This is a kind of variable that

only takes ranks or values when they are presented in a particular order. The
continuation of the nominal variable at the second level of measurement is the ordinal
scale. From least to most pleasant, the elements on this scale are presented in a
declining order of satisfaction. Ordinal scales, as opposed to nominal scales, allow
comparisons of the extent to which the dependent variable is present in the two
individuals. One of the scales that was most frequently used in this study was the
Likert scale. Strongly disagreed (1), disagreed (2), slightly agreed (3), agreed (4), and
strongly agreed (5) are the five points of the Likert scale. The degree to which the
assertions concur or differ is determined by this. Using the Likert scale, examine the
questions in sections B, C, D, E, and F of the questionnaire.

3.9 PROCEDURE FOR DATA ANALYSIS

The Statistical Package for Social Science (SPSS) will be used to analyze and
interpret the data in this study. This approach analyzes, personalizes, and establishes
patterns between various data variables. Data analysis is evaluating data by carefully
analyzing each component of the information presented using logic and science. This
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type of inspection is just one of many options for conducting an exploration test.
Ultimately, for data entry, the data will be reviewed, evaluated, and validated.

3.9.1 Descriptive Statistical

Descriptive statistical tools fulfill some essential functions that describe the
sample features, looking for deviations from the primary hypotheses of inferential
statistics in variables, and addressing research questions. A descriptive statistic is used
to illustrate the critical points of the data in an organisation. Therefore, descriptive
statistics can therefore also offer an analysis of the responses, which will help the
study achieve its objectives. The data set for this study consists of the value
distribution and will be measured using statistics or data. Furthermore, proportions of
inconstancy and proportions of local propensity are spellbinding insights. Mean,
median, and mode are components of regional propensity proportions, whereas
standard deviation, change, base, and most extreme factors, kurtosis, and skewness are
components of fluctuation proportions. When there are many high scores, the data will
be positively skewed, while when there are many low scores, the data will be
negatively skewed. Skewness is connected to the symmetry of the data distribution.

3.9.2 Reliability Test

The Reliability Analysis approach was utilised to evaluate the instrument's

consistency. Cronbach's alpha determines the reliability of the respondents' ratings.
The reliability coefficient that estimates the Cronbach Alpha coefficient is validated to
obtain the reliability of the individual's satisfaction measurement. This coefficient
indicates that an instrument is impartial and assures that it is consistent to measure
various items at various times. When the Cronbach alpha scores are lower than 1,
there will be more of a relationship between the independent and dependent variables.
The statistics are relevant for additional analysis.

3.9.3 Pearson Correlation Coefficient

Pearson's product-moment correlation coefficient is the statistical measure of

the linear correlation between two variables, X and Y. It has a value comprising the
range +1 to -1, where 1 is the amount of the positive correlations, 0 is the absence of
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any connection, and -1 is the sum of the negative correlations. Therefore, research has
frequently used it to gauge the linear dependence intoxication of two variables.
Multiple sets of points, each with an x and y correlation coefficient. The correlation
coefficient is not calculated if the central figure is found in the additional 0 slopes
since the variance Y is zero.

Table 3.2: Rule of thumb for interpreting the size of a correlation coefficient.

Size of correlation Interpretation

0.90 to 1.00/ -0.90 to -1.00 Very high positive/ negative correlation

0.70 to 0.90/ -0.70 to -0.90 High positive/ negative correlation

0.50 to 0.70/ -0.50 to -0.70 Moderate positive/ negative correlation

0.30 to 0.50/ -0.30 to -0.50 Low positive/ negative correlation

0.00 to 0.30/ -0.00 to -0.30 Little if any correlation

3.10 SUMMARY
In summary, the chapter clarified the investigation approach and method used
for this research. It described the methods used to gather the sample of organizations,
choose surveys, construct the questionnaire, research materials, and respondents
techniques. The chapter also describes the many analyses used to achieve this study's
purpose. Chapter 4 of the research report will include the results of the investigation.

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CHAPTER 4

DATA ANALYSIS AND FINDINGS

4.1 INTRODUCTION

This chapter discusses the findings from the data analysis. This section
exhibits, analyzes, and evaluates the data carefully examined in the discussion in this
chapter. This research has also reviewed and analyzed the data analysis results to
determine whether the data may be used in this study. Therefore, the respondent
demographic and the data analysis discussed in Chapter 3 will be the main focus of
this section.

4.2 PRELIMINARY ANALYSIS

Preliminary analysis on data collection involves checking measurement

reliability, evaluating manipulation efficiency, studying variable distributions, and
identifying outliers. Using the results of the pilot test, a reliability test was carried out.
A pilot test is a small-scale trial that is carried out to test and enhance the techniques
and methods that will be utilised in a larger research study or project. A pilot test's
primary goal is to discover and address any potential flaws, limitations, or practical
challenges in the research design prior to launching the full-scale study. This allows
researchers to improve the overall quality of the study by ensuring the reliability and
validity of their data collection techniques. The results for this study were evaluated
by using Cronbach’s alpha (α).

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Table 4.1: Reliability level and its coefficient of Cronbach’s alpha

No Coefficient of Cronbach’s alpha Reliability level

1 More than 0.90 Excellent

2 0.80-0.89 Good

3 0.70-0.79 Acceptable

4 0.60-0.69 Questionable

5 0.5-0.59 Poor

6 Less than 0.59 Unacceptable

Sources: George & Mallery (2019)

The researchers have run the questions for the pilot test of the research among
30 random respondents. The pilot test for this study is to check the reliability of the
instruments. In this questionnaire there are six sections labelled a section A, B, C, D,
E and F. In section A we survey the respondent’s demographic profile consisting of
eight questions. There are five questions in section B that focus on a dependent
variable which is personal financial management. For section C, D, E and F focus on
the independent variables of the research which are five questions for financial
awareness, four questions for financial knowledge, five questions for financial habits
and behaviour and five questions for financial attitudes. Table 4.2.2 shows the results
of the pilot test for all variables by reliability test that have been analyzed from SPSS.

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Table 4.2: The Results of Pilot Test for All Variable by Reliability Test

Dependent Variable and Independent Cronbach’s Alpha Number of variable

Variable items

Personal Financial Management 0.779 5

Financial Awareness 0.758 5

Financial Knowledge 0.697 4

Financial Habits and Behaviour 0.681 5

Financial Attitudes 0.763 5

Based on table 4.2 above, the results of Cronbach’s alpha for all variables are
more than 0.6. The value is considered at the higher limits because it’s not in the range
of a poor level and it is questionable and good to use in the research.

4.3 DEMOGRAPHIC PROFILE OF RESPONDENTS

As shown in the table below, this survey section includes information about
gender, age, race, status, programme, year of study, financial sources, and place of
residence during the study. As a result, the respondents' demographic profile is shown
in all tables and figures in this study.

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4.3.1 GENDER

Table 4.3: Demographic profile of gender

GENDER

Cumulative
Frequency Percent Valid Percent
Percent

Valid Female 192 55.5 55.5 55.5

Male 154 44.5 44.5 100.0

Total 346 100.0 100.0

Table 4.3 displays the frequency and percentage results of the respondents
depending on gender segmentation. The data shows 192 female respondents, with the
highest percentage figure of 55.5%. In this study, 154 male respondents and their
percentage was the lowest at 44.5%.

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4.3.2 AGE

Table 4.4: Demographic profile of Age

AGE

Cumulative
Frequency Percent Valid Percent
Percent

Valid 19-20 years old 63 18.2 18.2 18.2

21-22 years old 115 33.2 33.2 51.4

23-24 years old 156 45.1 45.1 96.5

25 years old and 12 3.5 3.5 100.0

above

Total 346 100.0 100.0

According to the results, the frequency and percentages of respondents are

based on age segmentation. Based on the data, the majority of respondents (156 with a
percentage of 45.1%) are between the ages of 23 - 24. Furthermore, 63 responders are
19-20 years old, with a rate of 18.2%. The number of 21-22 year old responses is 115,
with a rate of 33.2%. Meanwhile, 12 respondents are 25 years old and above, the
minor group of respondents (3.5%).

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4.3.3 RACE

Table 4.5: Demographic profile of Race

RACE

Cumulative
Frequency Percent Valid Percent
Percent

Valid Malay 235 67.9 67.9 67.9

Chinese 56 16.2 16.2 84.1

Indian 47 13.6 13.6 97.7

Others 8 2.3 2.3 100.0

Total 346 100.0 100.0

Table 4.5 displays the number of responses who filled out questionnaires for
this study based on race in Malaysia. The table under column frequency showed the
Malay who responded to the question with a percentage of 67.9% and a frequency of
235. Malay is the most that answers this questionnaire. For Chinese, there are 56
respondents, which is a percentage of 16.2%. There are 47 Indian respondents, which
is a percentage of 13.6%. Meanwhile, there are 8 other respondents, and the
percentage is 2.3%. The value obtained from this test shows more Malay race to
activities than respondents from another race.

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4.3.4 STATUS

Table 4.6: Demographic profile of Status

STATUS

Cumulative
Frequency Percent Valid Percent
Percent

Valid Single 334 96.5 96.5 96.5

Married 12 3.5 3.5 100.0

Total 346 100.0 100.0

Table 4.6 shows the frequency and percentage results of the respondents based
on their status segmentation. The data shows that 334 respondents are single, with the
highest percentage figure of 96.5%. However, 12 married respondents participated in
this study, and their percentage was the lowest at 3.5%.

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4.3.5 PROGRAMME

Table 4.7: Demographic profile of Programme

PROGRAMME

Cumulative
Frequency Percent Valid Percent
Percent

Valid SAB 151 43.6 43.6 43.6

SAA 43 12.4 12.4 56.1

SAL 41 11.8 11.8 67.9

SAK 35 10.1 10.1 78.0

SAE 35 10.1 10.1 88.2

SAR 41 11.8 11.8 100.0

Total 346 100.0 100.0

Based on the table of programmes, the most respondents that answered this
question from SAB is 151, with a percentage of 43.6%. For SAA, there are 43
respondents, which is a percentage of 12.4%. There are 41 respondents from SAL and
SAR, which is a percentage of 11.8%, respectively. Meanwhile, the lowest
respondents from SAK and SAE, which are 35 respondents, had a percentage of
10.1% .

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4.3.6 YEARS OF STUDY

Table 4.8: Demographic profile of Years of Study

YEAR OF STUDY

Cumulative
Frequency Percent Valid Percent
Percent

Valid Year 1 39 11.3 11.3 11.3

Year 2 38 11.0 11.0 22.3

Year 3 69 19.9 19.9 42.2

Year 4 200 57.8 57.8 100.0

Total 346 100.0 100.0

With 57.8% and 200 respondents, fourth-year students comprise most of this
research, while second-year students comprise the minority with 11.0% and 38
respondents. Finally, first-year students account for a reasonable percentage and
frequency of year respondents, accounting for 11.3% with 39 respondents, and
third-year students account for 19.9% of respondents (69).

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4.3.7 FINANCIAL SOURCES

Table 4.9: Demographic profile of Financial Sources

FINANCIAL SOURCES

Cumulative
Frequency Percent Valid
Percent
Percent

Valid Study Loan 247 71.4 71.4 71.4

Scholarship 57 16.5 16.5 87.9

Allowance from 30 8.7 8.7 96.5

Parents

Self-Sponsored 12 3.5 3.5 100.0

Total 346 100.0 100.0

Table 4.9 displays the frequency and percentages of respondents based on

financial resources. The results indicate that most of the respondents, 247 out of 346
respondents, are from study loans, with the highest percentage, 71.4%. Meanwhile, the
respondents from self-sponsored had the lowest percentage, which is 3.5%, and 12 of
respondents. The second lowest respondents were from allowance from parents,
having a percentage value of 8.7%, with 30 respondents. Furthermore, with 57
respondents, scholarship respondents have a percentage value of 16.5%.

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4.3.8 PLACE OF RESIDENCE DURING THE STUDY

Table 4.10: Demographic profile of Place of Residence During The Study

PLACE OF RESIDENCE DURING THE STUDY

Cumulative
Frequency Percent Valid
Percent
Percent

Valid Residential College 178 51.4 51.4 51.4

Rental House 156 45.1 45.1 96.5

Parents’ House 12 3.5 3.5 100.0

Total 346 100.0 100.0

Table 4.10 above shows the results for the frequency and percentages of the
respondents based on the place of residence during the study. According to the results,
respondents from parents' houses had the lowest percentage, 3.5%, and 12
respondents. Meanwhile, most of the respondents, 178 out of 346, are from residential
colleges, with the highest percentage, 51.4%. Furthermore, with 156 respondents in
this research, the respondents from rental houses have a percentage value of 45.1%.

4.4 DESCRIPTIVE ANALYSIS

The research employed one dependent variable and four independent variables
to determine the mean, with responses recorded using five Likert scales, namely
1-Strongly disagree, 2- Disagree, 3-Slightly agree, 4-Agree, and 5-Strongly agree to
measure respondents' agreement or disagreement with a statement.

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4.4.1 Descriptive Analysis of Dependent Variable

Table 4.11: Descriptive Analysis of Personal Financial Management

Personal Financial N Minimum Maximum Mean Std.

Management Deviation

I am familiar with the idea of 346 1 5 4.32 .733

personal financial
management.

I believe that I am good at 346 1 5 4.08 .802

managing finances.

I am driven to increasing 346 1 5 4.34 .702

personal financial
management.

I think it's important to know 346 2 5 4.57 .606

personal financial
management.

I feel able to manage personal 346 2 5 4.14 .728

finances rationally.

Table 4.11 revealed that the dependent variable, personal financial

management, was highly valued by the respondents. The mean score for question two
was the lowest, "I believe that I am good at managing finances," which was 4.08,
indicating that the majority of respondents disagreed. However, the mean score for
question four was the highest, "I think it’s important to know about personal financial
management," which was 4.57, indicating that the majority of respondents agreed. The
highest standard deviation for question two, “I believe that I am good at managing
finances.” is 0.802, while the lowest standard deviation for question four, “I think it's
important to know personal financial management.” is 0.606. Therefore, the study

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shows that personal financial management is a reliable and important aspect of
financial management.

4.4.2 Descriptive Analysis of Independent Variable

Table 4.12: Descriptive Analysis of Financial Awareness

Financial Awareness N Minimum Maximum Mean Std.

Deviation

I have a good financial 346 2 5 4.32 .659

awareness.

I received financial awareness 346 1 5 4.38 .745

during my university studies.

I spend money according to the 346 2 5 4.09 .797

budget that I have made.

I am aware of the important of 346 3 5 4.58 .566

saving.

I realise the importance of 346 2 5 4.55 .593

improving my financial
management skills.

Table 4.12 revealed that financial awareness is a reliable and crucial variable
for most respondents. For this independent variable consisting of five questions has a
lowest mean of 4.09, indicating most respondents disagree with question three, "I
spend money according to the budget that I have made." The highest mean is 4.58,
indicating most respondents agree with question four, "I am aware of the important of
saving." The highest standard deviation is 0.797 for question three, "I spend money
according to the budget that I have made." while the lowest standard deviation is
0.566 for question four, "I am aware of the important of saving." indicating a
consensus among respondents.

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Table 4.13: Descriptive Analysis of Financial Knowledge

Financial Knowledge N Minimum Maximum Mean Std.

Deviation

I know how to manage my 346 2 5 4.16 .739

expenses.

I understand about financial 346 2 5 4.20 .721

instruments such as debit card
and credit card.

I believe that financial 346 1 5 4.53 .633

education can increase
financial knowledge.

I believe that financial 346 2 5 4.55 .594

knowledge can help me to
handle money efficiently.

Table 4.13 revealed that financial knowledge is an important factor for

effective money management. The independent variable, financial knowledge, was
surveyed through four questions. The mean score for question one was the lowest, "I
know how to manage my expenses," was 4.16, indicating that the majority of
respondents disagreed. However, the mean score for question four was the highest, "I
believe that financial knowledge can help me to handle money efficiently," which was
4.55, indicating that the majority of respondents agreed. The highest standard
deviation for question one, "I know how to manage my expenses," is 0.739, while the
lowest standard deviation for question four, "I believe that financial knowledge can
help me to handle money efficiently," is 0.594, indicating consensus on the reliability
of financial knowledge.

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Table 4.14: Descriptive Analysis of Financial Habits and Behaviour

Financial Habits and N Minimum Maximum Mean Std.

Behaviour Deviation

I plan budget to achieve my 346 1 5 4.16 .773

financial objectives.

I pay any bills including the 346 1 5 4.26 .781

monthly phone bill on time.

I plan and control my daily 346 2 5 4.16 .750

expenses.

I compare the price of an item 346 1 5 4.30 .704

before buying it.

Before buying something, I 346 3 5 4.46 .580

think carefully whether I can
afford it or not.

Table 4.14 shows the independent variable which is financial habits and
behaviour consists of five questions. The mean score for question one and three was
the lowest, “I plan budget to achieve my financial objectives” which is 4.16 and “I
plan and control my daily expenses” which is 4.16, indicating that the majority of
respondents disagreed. However, the mean score for question five was the highest,
“Before buying something, I think carefully whether I can afford it or not” which is
4.46, indicating that the majority of respondents agreed. The highest standard
deviation for question two, “I pay any bills including the monthly phone bill on time”
which is 0.781, while the lowest standard deviation for question five, “Before buying
something, I think carefully whether I can afford it or not” which is 0.580, indicating
consensus on the reliability of habits and behaviours.

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Table 4.15: Descriptive Analysis of Financial Attitudes

Financial Attitudes N Minimum Maximum Mean Std.

Deviation

I have a point of view that 346 3 5 4.59 .558

excessive debts should be
avoided.

I am constantly cautious in 346 1 5 4.39 .629

controlling my financial
expenses.

I plan my personal financial 346 2 5 4.31 .727

management by putting aside
a set of amounts every month
to save or invest money in the
future.

I consistently keep my 346 1 5 4.08 .854

financial records to improve
my financial management.

I spend money according to 346 2 5 4.23 .723

my budget to plan my
financial well.

Table 4.15 shows the independent variable which is financial attitudes consists
of five questions. The lowest mean score for question four, “I consistently keep my
financial records to improve my financial management” was 4.08, indicating that most
respondents disagreed. The highest mean score for the first question, “I have a point of
view that excessive debts should be avoided.” was 4.59, indicating that most
respondents agreed. The highest standard deviation for question four, “I consistently
keep my financial records to improve my financial management” is 0.854, while the
lowest standard deviation for question one, “I have a point of view that excessive
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debts should be avoided.” is 0.558. The results show that financial attitudes are
reliable and important for financial management, with respondents agreeing on the
importance of maintaining financial records.

4.5 VALIDITY AND RELIABILITY TEST

A reliability test is the level of consistency and stability a test exhibits to

evaluate the concept it intends to assess. A reliability test was used to see if study
respondents agreed with the dependent variable items from the questionnaire.
Subsequently, a linear scale ranging from strongly disagree to strongly agree was
employed to determine the respondents' level of agreement. Once the respondents
have answered all of the questions, the reliability test is used to look at the Cronbach
alpha value, which provides an overall summary of the data in this study.

Table 4.16: Case processing summary

Case Processing Summary

N %

Cases Valid 346 100.0

Excludeda .0 .0

Total 346 100.0

Table 4.17 below shows an overview of all the information gathered from the
346 respondents who answered the 24 questions that requested them to complete this
study. With responses to every question asked of the respondents, the Cronbach alpha
score of 0.959 indicates that the questionnaire data collected for this study can support
the independent and dependent variables. This is because the Cronbach alpha value is
higher than 0.07 in this study.
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Table 4.17: Reliability statistics

Reliability statistics

Cronbach's Alpha N of Items

.959 24

Table 4.18: Results of reliability Cronbach’s Alpha for the variables

Variables Cronbach’s Alpha N of Items

Personal Financial 0.779 5

Management

Financial Awareness 0.758 5

Financial Knowledge 0.697 4

Financial Habits and 0.681 5

Behaviour

Financial Attitudes 0.763 5

Table 4.18 above shows Cronbach's Alpha reliability analysis results for each
independent and dependent variable. Cronbach's Alpha was used to assess the
reliability of four independent and dependent variables.
The dependent variable of Personal Financial Management had 5 items under
it that called its reliability into question. This variable's Cronbach's Alpha result is
0.779, which is considered acceptable regarding internal consistency.
Additionally, the first independent variable, Financial Awareness, had 5 items
under it with a Cronbach's Alpha value of 0.758 and an acceptable internal
consistency (0.70-0.79). Next, the independent variable is Financial Knowledge
comprises 4 items used to assess its reliability and validity. This variable has a

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Cronbach's Alpha of 0.697. This value falls within the internal consistency of
questionable (0.60-0.69)
Thirdly, independent variables of Financial Habits and Behaviour had 5 items
with Cronbach's Alpha value is 0.681, with the internal consistency questionable
(0.60-0.69). Furthermore,Financial Attitude is an independent variable, with 5 items
used to test its reliability and validity. This variable's Cronbach's Alpha value is 0.763,
showing an acceptable level (0.70-0.79).
All independent and dependent variables in this study are considered reliable,
ranging between acceptable (0.70-0.79) and questionable (0.60-0.69). The results
reveal that the reliability is also outstanding. As a result, it is reasonable to assume that
all of the variables employed in this study were excellent and that the data are suitable
for further investigation.

4.6 PEARSON CORRELATION

Table 4.19: The scale of Pearson’s Correlation Coefficient

Scale of correlation coefficient Value

0 < r ≤ 0.19 Very low correlation

0.2 ≤ r ≤ 0.39 Low correlation

0.4 ≤ r ≤ 0.59 Moderate correlation

0.6 ≤ r ≤ 0.79 High correlation

0.8 ≤ r ≤ 1.0 Very high correlation

Sources: Hair et al. (2007)

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4.6.1 Correlation between Financial Awareness and Personal Financial

Management

Table 4.20: Pearson Correlation Analysis between Financial Awareness and Personal
Financial Management

Personal Financial Financial

Management Awareness

Personal Financial Pearson’s 1 0.768**

Management Correlation

Sig. (2-tailed) 000

N 346 346

Financial Pearson’s 0.768** 1

Awareness Correlation

Sig. (2-tailed) 000

N 346 346

Table 4.20 showed the relationship between independent variable and

dependent variable. The first correlation is between financial awareness and personal
financial management and the finding shows that r-value is 0.768. This figure shows a
high correlation relationship between financial awareness and personal financial
management, according to the scale of pearson’s correlation coefficient.

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4.6.2 Correlation between Financial Knowledge and Personal Financial

Management

Table 4.21: Pearson Correlation Analysis between Financial Knowledge and Personal
Financial Management

Personal Financial Financial

Management Knowledge

Personal Financial Pearson’s 1 0.814**

Management Correlation

Sig. (2-tailed) 000

N 346 346

Financial Pearson’s 0.814** 1

Knowledge Correlation

Sig. (2-tailed) 000

N 346 346

Table 4.21 showed the relationship between independent variable and

dependent variable. The second correlation is between financial knowledge and
personal financial management and the finding shows that r-value is 0.814. This figure
shows a very high correlation relationship between financial knowledge and personal
financial management, according to the scale of Pearson's correlation coefficient.

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4.6.3 Correlation between Financial Habits and Behaviour and Personal

Financial Management

Table 4.22: Pearson Correlation Analysis between Financial Habits and Behaviour and
Personal Financial Management

Personal Financial Financial Habits

Management and Behaviour

Personal Financial Pearson’s 1 0.739**

Management Correlation

Sig. (2-tailed) 000

N 346 346

Financial Habits Pearson’s 0.739** 1

and Behaviour Correlation

Sig. (2-tailed) 000

N 346 346

Table 4.22 showed the relationship between independent variable and

dependent variable. The third correlation is between financial habits and behaviour
and personal financial management and the finding shows that r-value is 0.739.
According to the scale of Pearson's correlation coefficient, this figure shows a high
correlation relationship between financial habits and behaviour and personal financial
management.

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4.6.4 Correlation between Financial Attitudes and Personal Financial

Management

Table 4.23: Pearson Correlation Analysis between Financial Attitudes and Personal
Financial Management

Personal Financial Financial

Management Attitudes

Personal Financial Pearson’s 1 0.755**

Management Correlation

Sig. (2-tailed) 000

N 346 346

Financial Attitudes Pearson’s 0.755** 1

Correlation

Sig. (2-tailed) 000

N 346 346

Table 4.23 showed the relationship between independent variable and

dependent variable. The last correlation is between financial attitudes and personal
financial management and the finding shows that r-value is 0.755. According to the
scale of Pearson's correlation coefficient, this figure shows a high correlation
relationship between financial attitudes and personal financial management.

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4.7 HYPOTHESES TESTING

This study employs the Pearson test method to assess the hypothesis. Pearson
tests are used to examine correlations between dependent and independent variables.
To ascertain whether there are hypothesis correlations between the dependent and
independent variables, analyze the p-value, which should be between -1 and 1. The
interpretation is that when two variables have a correlation value of 0.7, they are
significantly and positively correlated. Variable B will expand if variable A grows,
according to a positive correlation. Table 4.28 below displays Pearson Testing's entire
revenue. According to the table below, all of the hypotheses have a positive
relationship between the independent and dependent variables.

Table 4.24: Pearson Correlation

CORRELATIONS

Personal Financial Financial Financial Financial

Financial Awareness Knowledge Habits Attitudes
Management and
Behaviour

Personal Pearson’s 1 0.768 0.814 0.739 0.755

Financial Correlation
Management

Sig. 000 000 000 000

(2-tailed)

N 346 346 346 346 346

Financial Pearson’s 0.768 1 .840** .695** .756**

Awareness Correlation

Sig. .000 .000 .000 .000

(2-tailed)

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N 346 346 346 346 346

Financial Pearson’s 0.814 .840** 1 .781** .792**

Knowledge Correlation

Sig. .000 .000 .000 .000

(2-tailed)

N 346 346 346 346 346

Financial Pearson’s 0.739 .695** .781** 1 .819**

Habits and Correlation
Behaviour
Sig. .000 .000 .000 .000
(2-tailed)

N 346 346 346 346 346

Financial Pearson’s .755** .756** .792** .819** 1

Attitudes Correlation

Sig. 000 000 000 000 000

(2-tailed)

N 346 346 346 346 346

4.7.1 Hypotheses 1

H0: There is no significant positive relationship between financial awareness and

personal financial management among students.
H1: There is a significant positive relationship between financial awareness and
personal financial management among students.
The Pearson test table 4.24 above shows the relationship between financial
awareness and personal financial management. The value of the correlation coefficient
is 0.768, indicating a high positive correlation relationship between it. Meanwhile,
there is a significant relationship between financial awareness and personal financial

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management because the p-value is 0.000, less than α=0.05, indicating that both
variables are highly significant. As a result, it may be inferred that this hypothesis is
positive since a positive correlation shows that independent variables rise if dependent
variables rise as well. Furthermore, the Pearson correlation coefficient value between
financial awareness and personal financial management is more significant than 0.5,
indicating that the strength and direction are positive. As a result, the hypothesis,
which is H1, is accepted.

4.7.2 Hypotheses 2

H0: There is no significant positive relationship between financial knowledge and

personal financial management among university students.
H1: There is a significant positive relationship between financial knowledge and
personal financial management among university students.
The Pearson test table 4.24 above shows the relationship between financial
knowledge and personal financial management. The value of the correlation
coefficient is 0.814, indicating a very high positive correlation relationship between it.
Meanwhile, there is a significant relationship between financial knowledge and
personal financial management because the p-value is 0.000, less than α=0.05,
indicating that both variables are highly significant. As a result, it may be inferred that
this hypothesis is positive since a positive correlation shows that independent
variables rise if dependent variables rise as well. Furthermore, the Pearson correlation
coefficient value between financial knowledge and personal financial management is
more significant than 0.5, indicating that the strength and direction are positive. As a
result, the hypothesis, which is H2, is accepted.

4.7.3 Hypotheses 3

H0: There is no significant positive relationship between financial habits and

behaviour and personal financial management among students.
H1: There is a significant positive relationship between financial habits and behaviour
and personal financial management among students.
The Pearson test table 4.24 above shows the relationship between financial
habits and behaviour and personal financial management. The value of the correlation

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coefficient is 0.739, indicating a high positive correlation relationship between it.
Meanwhile, there is a significant relationship between financial habits and behaviour
and personal financial management because the p-value is 0.000, less than α=0.05,
indicating that both variables are highly significant. As a result, it may be inferred that
this hypothesis is positive since a positive correlation shows that independent
variables rise if dependent variables rise as well. Furthermore, the Pearson correlation
coefficient value between financial habits and behaviour and personal financial
management is more significant than 0.5, indicating that the strength and direction are
positive. As a result, the hypothesis, which is H3, is accepted.

4.7.4 Hypotheses 4

H0: There is no significant positive relationship between financial attitudes and

personal financial management among students.
H1: There is a significant positive relationship between financial attitudes and
personal financial management among students.
The Pearson test table 4.24 above shows the relationship between financial
attitudes and personal financial management. The value of the correlation coefficient
is 0.755, indicating a high positive correlation relationship between it. Meanwhile,
there is a significant relationship between financial attitudes and personal financial
management because the p-value is 0.000, less than α=0.05, indicating that both
variables are highly significant. As a result, it may be inferred that this hypothesis is
positive since a positive correlation shows that independent variables rise if dependent
variables rise as well. Furthermore, the Pearson correlation coefficient value between
financial attitudes and personal financial management is more significant than 0.5,
indicating that the strength and direction are positive. As a result, the hypothesis,
which is H4, is accepted.

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4.8 SUMMARY

In Chapter 4, this study was evaluated and carried out using the SPSS software
to get data analysis findings. The obtained data is utilised for descriptive analysis,
reliability testing, and Pearson's correlation to assess the link between the independent
and dependent variables and to discover the effect of financial literacy on personal
financial management among university students.

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CHAPTER 5

DISCUSSION AND CONCLUSION

5.1 INTRODUCTION

In this chapter, the researcher will cover the recapitulation of the study
findings, limitations, and recommendations as well as the overall conclusion of the
study. The objectives of this study are to investigate the effect of financial literacy on
personal financial management among University Malaysia Kelantan (UMK) students.
The hypothesis of this study was tested using descriptive analysis and Pearson
correlation analysis, the result has been presented in chapter 4. The findings,
limitations, and suggestions of this study will be discussed in this chapter.

5.2 KEY FINDINGS

The main objective of this research is to determine the relationship between

financial attitudes, habits, and behaviour, as well as financial knowledge and
awareness, and how these factors affect University Malaysia Kelantan (UMK) City
Campus students' individual financial management. The researchers agree that there is
a demonstrable relationship between financial knowledge, financial awareness,
financial habits and behaviour, and financial attitudes and the personal financial
management of University Malaysia Kelantan (UMK) City Campus students after
analysing the data presented in Chapter 4. The findings pertaining to the study goals
are outlined in Table 5.1, which also confirms that there is a substantial correlation
between the independent variables and the personal financial management of UMK
City Campus students.

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Table 5.1: Findings of the Result

Hypotheses Result Findings of data

Analysis

H1 is accepted
H1: There is a significant positive
r = 0.768**
relationship between financial awareness
p = 0.000
and personal financial management among
university students.
High correlation

r = 0.814** H2 is accepted
H2: There is a significant positive
p = 0.000
relationship between financial knowledge
and personal financial management among
Very High
university students.
correlation

r = 0.739** H3 is accepted
H3: There is a significant positive
p = 0.000
relationship between financial habits and
behaviour and personal financial
High correlation
management among university students.

r = 0.755** H4 is accepted
H4: There is a significant positive
p = 0.000
relationship between financial attitudes and
personal financial management among
High correlation
university students.

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5.3 DISCUSSION

5.3.1 Financial Awareness

H1 : There is a significant positive relationship between financial awareness and

personal financial management among university students.
Personal financial management and financial awareness are positively
correlated in a substantial way. In the chapter before this one was stated results of
findings for this study, the value of correlation is 0.768 for financial awareness
variable with personal financial management variable. According to [Link] @
[Link] and Wan Ahmad (2020) students' academic and living environments had a
major influence on their understanding of the awareness underlying their financial
transactions and the associated good and poor habits. According to the result of the
finding, the respondents that stay at residential college spend their money according to
the budget that they have made. It can be proved in the previous chapter, that 0.797 is
the standard deviation for that query's result and the percentage of respondents that
stay at residential college is 51.4%. Based on the result of finding, the respondents had
received financial awareness during their university studies. High financial awareness
can be achieved by programmes and campaigns that have been done by universities
about personal financial management. It shows that undergraduates' students of UMK
have a good personal financial management that is driven by financial awareness.

5.3.2 Financial Knowledge

H2: There is a significant positive relationship between financial knowledge and

personal financial management among university students.
Financial knowledge is one of the comprehensions of a financial matter. Prior
research has demonstrated that college students lack the information necessary to
properly handle their personal finances (Chen & Volpe, 1998). As a result, the
statement concurs that, based on the analysis of the variable presented, this hypothesis
presents a link between financial literacy and individual financial management that
may both prevent and comprehend the ability of university students to enhance skill
adaptation. By altering their financial situation and decision-making ability, this can
keep students from dropping out of school (Chen & Volpe, 1998). By employing the
alternative hypothesis to strengthen the significant positive association between
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financial knowledge and personal financial management and by examining Likert
scale scores more than 4, it has also rejected HO and accepted H2. They possess the
fundamental knowledge and abilities, they are able to make wise personal financial
decisions. On the other hand, those who lack fundamental abilities and information are
unable to make wise financial decisions for themselves. This is consistent with the
study's findings, which demonstrate the section questions competency of Universiti
Malaysia Kelantan (UMK) students. It may be said that students at Universiti
Malaysia Kelantan possess a solid grasp of financial concepts.

5.3.3 Financial Habits and Behaviour

H3 : There is significant positive relationship between financial habits and behaviour,

and personal financial management among university students.
In the previous study, Bapat (2020) has stated that financial behaviour closely
relates to financial literacy and describe as individual that have a good financial
behaviour and habits will lead to good personal financial management. Meanwhile,
based on the outcome of the hypothesis testing in Chapter 4, it demonstrates how there
is a strong correlation between personal financial management and financial
behaviours and habits. Financial habits and behaviour have a coefficient value of
0.739, indicating a high positive connection with individual financial management.
Based on the result from the hypothesis testing it proves that the statement from the
previous study is true and can be agree by researcher. According to the hypothesis
result, it may be claimed that undergraduates’ student of UMK have a good financial
habits and behaviour. It can be proved by the descriptive analysis result, that they
compare the price of an item before buying it. The value of that question is quiet high
which is 0.704. In this study, the highest financial source of respondents is study loan
with the percentage 71.4% which that a higher percentage compared to other resource.
It can be concluded, that UMK undergraduate students spend money obtained from
education loans frugally and only spend it on important things only.

5.3.4 Financial Attitudes

H4: There is a significant positive relationship between financial attitudes and

personal financial management among students.

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A strong positive relationship has been found between financial attitude and
personal financial management among university students, which is supported by
previous research (Mudzingiri et al., 2018; Rai et al., 2019; Sabri et al., 2008). The
results of this study for this variable also support this finding. By embracing its
optimistic outlook, this hypothesis presents the connection between students' personal
financial management and their financial views. By recognising the significant
positive correlation among independent factors, including the research's financial
stance towards accepting alternative theories, the hypothesis permits an alternative by
accepting H4 and rejecting HO (Collins, 2013). A positive financial attitude aids in
comprehending topics such as managing money, creating and adhering to a monthly
spending plan, saving money each month, and making financial goals for the future.
Financial attitude, which relates to the focus on people's behaviour in financial
circumstances by influencing their mentality throughjudgements made in the business
and financial markets, establishes a link with personal financial management. By
raising a value of more than four on a five-point Likert scale, it demonstrates the
existence of a favourable correlation between financial management and students'
financial attitudes. This demonstrates the University Malaysia Kelantan students' good
financial attitudes and individual financial management skills in maintaining their
efforts to improve their financial circumstances with a plan to set aside a certain
amount each month to save or invest in the future. Through questioning respondents,
the descriptive analysis presents a value greater than 4 by firmly endorsing the reality.
Through enhancing financial awareness, knowledge, attitude, habits and behaviour, it
promotes the maintenance of positive financial management. Based on the results of
this hypothesis test, the researcher may be able to refocus heavily regarding the pupils,
helping them to enhance their financial circumstances going forward. Having financial
assistance for basic needs is not just beneficial for students attending institutions.

5.4 IMPLICATIONS OF THE STUDY

The purpose of this research was to determine the level of financial literacy in
personal financial management among University Malaysia Kelantan (UMK) students.
This research has implication for policy, economic, and individual. Policy suggestions
for the university or other relevant education bodies may be informed by the study.

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This could include pushing for compulsory financial literacy classes, offering financial
education tools, or establishing policies in place to encourage students' responsible
financial behaviour. Besides, university may consider introducing assistance
programmes for students having economic difficulties. This could be peer mentorship
programmes, financial counselling services, or tools to assist students manage their
budgeting, student loans, and other financial issues.
Moreover, implications of this study include individual decision maker.
Financial awareness and financial knowledge may affect the decision-making process
of students for their financial expenses. Financial knowledge and personal financial
management have a beneficial association. It indicates that raising awareness of
financial matters can help students make better decisions. This can result the students
have a better savings, investing, and budgeting of their financial resources. Lastly, this
study has implications for the economy. Initiatives aimed at promoting financial
literacy have the potential to decrease economic inequality by giving people the
knowledge and skills needed to accumulate and manage wealth. Thus, a society that is
more economically stable may benefit from this.

5.5 LIMITATIONS OF THE STUDY

As they worked to finish this study, researchers encountered a number of

obstacles. Firstly, the study population for this research was focused on UMK students
in the Faculty of Business and Entrepreneurship (FKP) in Campus Kota only. The
objective of this research may not be achieved accurately because the sample is not
diverse or does not reflect the larger UMK student population. It is because the UMK
student population at three campuses may differ with the current number of student
population for this research. Thus, the larger the number of representative samples for
study, the more accurate the study findings obtained.
Furthermore, the survey used to obtain information for this study's independent
and dependent variables is not well-structured. The unstructured survey design may
affect the difficulties of respondents to understand the survey question wisely. It will
result in the objective of the survey being unable to be achieved. In addition, the
researcher did not provide intervention strategy suggestions derived from the study's
findings. The researcher should refine the findings of the study for example if a

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discrepancy in financial literacy has been noted, the researcher should provide
recommendations for educational programs to increase financial knowledge and
awareness.

5.6 RECOMMENDATIONS / SUGGESTION FOR THE FUTURE

Researchers urge further research on the following topics based on the findings
from this study. To begin with, Future research on the topic may increase the sample
size in order to emphasise the issue of financial literacy on personal financial
management among University of Malaysia Kelantan students. This is a result of the
survey only included responders from the UMK City Campus. Future studies should
be conducted at all three Universiti Malaysia Kelantan campuses in order to increase
the sample size.
Survey Design. Develop a well-structured survey instrument to collect data on
financial awareness, financial knowledge, financial habits and behavior, financial
attitude, and personal financial management. Ensure the survey questions are clear,
concise, and address the specific aspects you aim to investigate. Beside that,
Intervention Strategies. Propose intervention strategies based on the findings of your
study. If there are identified gaps in financial literacy, suggest educational programs or
workshops to enhance financial knowledge and awareness.
Policy Implications. Discuss potential policy implications for universities or
educational institutions based on your findings. This could involve advocating for the
execution of campus-wide initiatives or the inclusion of financial awareness
programmes in the curriculum.
Not to mention, future studies must concentrate on Data Collection. Employ a
combination of quantitative and qualitative data collection methods. This could
include surveys, interviews, and focus group discussions to gain a comprehensive
understanding.

5.7 OVERALL CONCLUSION OF THE STUDY

This study centers on exploring financial management within the context of

financial literacy among university students across various disciplines, involving 346
participants from Universiti Malaysia Kelantan. Based on the Theory of Planned

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Behaviour model that was established, the primary objective is to investigate the
effect of financial literacy on the personal financial management of University
Malaysia Kelantan (UMK) students. To accomplish this goal, the study proposes and
validates a model comprising four pivotal variables: financial management
(Dependent Variable), and financial knowledge, financial awareness, financial habits
and behavior, and financial attitude (Independent Variables). The constructed model
yields noteworthy findings, shedding light on the community's understanding of
financial literacy management among Universiti Malaysia Kelantan students. In
summary, the results indicate substantial statistical significance for the majority of the
tested hypotheses, thereby concluding our final year project.

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APPENDIX A
DRAFT OF QUESTIONNAIRE

Strongly Disagree slightly agree Agree Strongly

Disagree Agree

1 2 3 4 5

Table 1: Five-point Likert Scale

SECTION VARIABLES ITEMS AUTHORS

A Demographic 8 Bucher- Koenen, Lusardi,

Alessie & Van Rooij
(2017)
Gamble, Boyle, Yu &
Bennett (2014)
Johnson & Sherraden
(2007)

B Personal financial 5 Beta Swieeka, Eser

Ye,silda g,Erean Ozen
management
and Simon Grimo
(MDPI)

C Financial awareness 5 (Hoyt, 2016), Kiyosaki

and Lechter, 2000).

D Financial knowledge 4 Amagir, Groot, Maassen

van den Brink, and
Wilschut (2018)

E Financial habits and 5 Dorjana Nano, Emil

behaviour Istrofor (2017)

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F Financial attitude 5 Dorjana Nano , Emil
Istrofor,University
“Eqrem Cabej”,
Gjirokaster, Albania
JobProAdvice,Ontari-o,C
anada(2017)

Total 32

3.7.4 Dependent Variable- Personal Financial Management

Sources Modified item

1)I'm familiar with the idea of personal

financial management.

2) I believe that I am good at managing

finances.

Beta Swieeka, Eser Ye,silda g,Erean 3) I'm driven to increasing personal

Ozen and Simon Grimo (MDPI) financial management.

4) I think it's important to know personal

financial management

5) I feel able to manage personal finances

rationally.

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3.7.5 Independent variable

i. Financial awareness

Sources Modified item

1) I have a good financial awareness

2) I received financial awareness during

my university studies

3) I spend money according to the

budget that I have made

(Hoyt, 2016), Kiyosaki and Lechter, 4) I am aware of the important of saving

2000).

5) I realise the importance of improving

my financial management skills

ii. Financial knowledge

Sources Modified item

1)I know how to manage my expenses

2)I understand about financial

instruments such as debit card and credit
card

Amagir, Groot, Maassen van den 3)I believe that financial education can
Brink, and Wilschut (2018) increase financial knowledge

4)I believe that financial knowledge can

help me to handle money efficiently

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iii. Financial habits and behaviour

Sources Modified item

1) I plan a budget to achieve my

financial objectives.

2) I pay any bills including the monthly

phone bill on time.

Dorjana Nano, Emil Istrofor (2017) 3) I plan and control my daily expenses.

4) I compare the price of an item before

buying it.

5) Before buying something, I think

carefully whether I can afford it or not.

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iv. Financial attitude

Sources Modified item

1) I have a point of view that excessive

debts should be avoided

2) I am constantly cautious in controlling

my financial expenses

Dorjana Nan , Emil Istrofor, 3) I plan my personal financial

University “Eqrem Cabej”, management by putting aside a set of
Gjirokaster, Albania 2 JobProAdvice, amounts every month to save or invest
Ontario, Canada (2017) money in the future

4) I constantly keep my financial records

to improve my financial management

5) I spend money according to my

budget to plan my financial well

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APPENDIX B
GANTT CHART

ITEMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Briefing on PPTA 1

Discussion title of study

CHAPTER 1: INTRODUCTION

Background of study

Problem statement

Research question

Research objectives

Scope of study

Definition of term

Organization of the proposal

Submission of chapter 1

CHAPTER 2: LITERATURE REVIEW

Introduction

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Underpinning theory

Previous studies

Hypothesis statement

Conceptual framework

Summary/Conclusion

CHAPTER 3: RESEARCH METHODS

Introduction

Research design

Data collection methods

Study population

Sample size

Sampling techniques

Research instrument development

Measurement of the variables

Procedure for data analysis

Summary/Conclusion

Submission of chapter 2 and 3

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Submission of first draft of PPTA 1

FINAL SUBMISSION OF PPTA 1

PRESENTATION FOR FINAL YEAR

PROJECT 1

Briefing on PPTA II

DISCUSSION CHAPTER 4: DATA

ANALYSIS AND FINDINGS

Pilot test

Expert and peer validation

Distribute questionnaire

Collect Data

SPSS Data analysis

Writing Chapter 4

WRITING CHAPTER 5:
DISCUSSION AND CONCLUSION

Introduction

Key Findings

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Discussion

Implications of the study

Limitations of the study

Recommendation / Suggestions for the

future research

Overall Conclusion

Submission of chapter 4 and 5

Submission of first draft of PPTA II

FINAL SUBMISSION OF PPTA II

PRESENTATION FOR FINAL YEAR

PROJECT 1

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