FINANCIAL MANAGEMENT BEHAVIOUR AMONG TERTIARY STUDENTS IN MALAYSIA

Abstract

In this materialistic environment, the younger generation often prioritizes consumerism and instant gratification, leading to impulsive spending. This research aims to investigate the factors influencing financial management behaviour among tertiary students in Malaysia focusing on variables such as financial attitude, financial literacy, self-control, family influence, and external locus of control. Guided by the Theory of Planned Behaviour (TPB), the study aims to examine the relationships between these factors and financial management behaviour. 166 Malaysian tertiary students were included in the sample for this research, and data was gathered through a questionnaire survey. The data collected was analysed using descriptive analysis, reliability analysis, and inferential analysis such as Pearson Correlation Coefficient and Multiple Regression Analysis. The tool used for the data analysis was IBM SPSS statistics. Empirical findings show a significant relationship between financial literacy and self-control in influencing financial management behaviour among tertiary students in Malaysia. However, no significant relationship was found between financial attitude, family influence, and external locus of control towards financial management behaviour. Nevertheless, the study acknowledges limitations, including time constraints, survey fatigue among respondents, misuse of response options, and response bias. In conclusion, the findings provide valuable insights for the Malaysian government, educational institutions, financial institutions and tertiary students. Emphasizing the need for collaborative efforts to improve financial management behaviour among tertiary students. Understanding the underlying factors of poor financial management behaviour could play a crucial role in reducing financial crimes in Malaysia.