Poor financial planning understanding amongst today’s youths.Study loan default Failed to settle vehicle loansWhy they caught in bankruptcy?50% of Malaysians involved in bankruptcy are University students andyoung working adult. (Department of Statistics Malaysia)Credit card debt
Objective 1• To determine level of awareness on financialplanning among university students.Objective 2• To investigate factors that contribute to financialliteracy.Objective 3• To identify the most contributing factor thatinfluences university students on financial planning.
RQ 1• How aware university students are when its come tofinancial planning?RQ 2• What are factors that can influence universitystudents to become financial literate?RQ 3• What is the most contributing factor that influencesuniversity students on financial planning?
1. Small number ofrespondentscompared tototal population.2. Existence ofuncontrollablefactors amongrespondentsUnwillingness orreluctant toanswer indisclosingpersonalinformationregarding ontheir moneymanagement
Awareness On FinancialPlanningDemographicfactorsFamilyMembersBusinessDegreeIndependentVariablesDependentVariable(Sources taken from Joyce K.H. Nga, Lisa H.L. Yong and Rathakrishnan D. Sellappan &Haiyang Chen and Ronal P. Volpe)
Research design - Descriptive research.- Conducted to discover and determined thecharacteristics of a population.Population – University students in public and privateuniversities. The total population is around half a million.Sampling frame - Sampling frame is representation of theelements of the target population.- Sample from students at UiTM CawanganMelaka Kampus Bandaraya Melaka.
Sampling technique – Convenience non- probability sampling.- Sample is selected based on thepersonal judgment rather than chance.- Researcher chooses whoever students that isavailable at UiTM KBMSample size - Non – statistical method is applied to determine theappropriate sample sizes.- Sample size is determined by the previous experience thatserves as rough guidelines.- Sample sizes larger than 30 and less than 500 are appropriatefor most research.Sample size – Due to some restrictions and time constraint, researcherfinds it is adequate enough to have a sample size of 80respondents.
Data CollectionMethodPrimary Data QuestionnaireSecondary DataBooksJournalsThe Internet
Reliability StatisticsCronbachs Alpha N of Items.811 17Reliability test• Indicatesconsistencyand stabilityof the dataobtainedfrom thesurveywhether it isreliable ornot.Theory• The closerCronbach’salpha is toone, thehigher theinternalconsistencyreliability.Thus• It can beconcludedthat theconsistencyof the dataobtained isgood.
• Find total mean for Dependent Variable• Use statistical of frequency to determine level of awarenessMean for Total of Awareness on Financial Planning Among University StudentsN Minimum Maximum Mean Std. DeviationMeanTotalLevelOfAwareness 80 1.00 5.00 4.0125 .81898Valid N (listwise) 80Scale Range Level of Awareness1.00 – 2.33 Low2.34 – 3.67 Medium3.68 – 5.00 HighStatistical Frequency Description for Mean Scale Range and Level of Awareness• It was found that university students possesshigh awareness on financial planningThus
• Previous research found that family members, demographic factors andbusiness degree play an important roles towards financial literacy.• To reinforce previous findings by quantitatively, researcher decided tomeasure the relationship between each independent variables and dependentvariable by using correlations and by referring to the Pearson correlation (r).• Pearson correlation (r) would tell us the direction of the relationship (eithernegative or positive).Table 4.4: Correlations between independent variables and dependent variableMeanTotalLevelOfAwareness MTF MTD MTBDMeanTotalLevelOfAwarenessPearson Correlation 1 .506** .186 .379**Sig. (2-tailed) .000 .099 .001N 80 80 80 80MTF Pearson Correlation .506** 1 .347** .390**Sig. (2-tailed) .000 .002 .000N 80 80 80 80MTD Pearson Correlation .186 .347** 1 .254*Sig. (2-tailed) .099 .002 .023N 80 80 80 80MTBD Pearson Correlation .379** .390** .254* 1Sig. (2-tailed) .001 .000 .023N 80 80 80 80
• Pearson correlation for family members (MTF), demographic factors (MTD)and business degree (MTBD) were 0.506, 0.186 and 0.379 respectively.• The closer the Pearson correlation value to -1 or +1, the stronger relationshipit possess.• Hence, all three variables indicate positive relationship with level ofawareness on financial planning among university students.Correlation significant between independent and dependent variable•Preceding findings by previous researchers are proven.Family members, demographic factors, and businessdegree play an important roles towards financial literacy.Thus
• Regression analysis is conducted to show which factors has the most influentialtowards dependent variable.• After the analysis, only two variables proof to be strong relationship with dependentvariable. ( Family members & Business degree).Table 4.5: Coefficientsbetween independent variables and dependent variableModelUnstandardized CoefficientsStandardizedCoefficientst Sig.B Std. Error Beta1 (Constant) 1.638 .477 3.433 .001MTF .497 .127 .427 3.925 .000MTD -.020 .116 -.018 -.175 .862MTBD .193 .094 .217 2.056 .0432 (Constant) 1.604 .432 3.713 .000MTF .491 .121 .422 4.062 .000MTBD .190 .092 .215 2.064 .042a. Dependent Variable: MeanTotalLevelOfAwareness
•The other variable which is demographic factor is removed from the analysis data.• The exclusion indicate that demographic factor play the least significant relation withdependent variableTable 4.6: Variables Entered/RemovedModel VariablesEntered Variables Removed Method1 MTBD, MTD,MTFa. Enter2 . MTD Backward (criterion: Probabilityof F-to-remove >= .100)a. All requested variables entered.b. Dependent Variable: MeanTotalLevelOfAwareness• The most contributing factor that influencesuniversity students in financial planninghappened to be family members.Thus