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1.0 INTRODUCTION
This chapter is about the literature reviews that have been reviewed based on the research
topic. Literature is a report of a compilation and review means is in written forms on the research
topic which write by those people with authority in the field. In this study, I want to find out the
causes of student finance problems based on various resources such as book, newspaper article,
website or magazine. So, by using all of the resources I can find more information about the
causes of student finance problems and also provide some opinion about the situation.
beginning of each semester. So, they not have any problem at the beginning semester compare
with last of each semester. Based on Financial Behavior and Problems among College Students
in Malaysia: Research and Education Implication by Mohamad Fazli Sabri, there are many
causes about student finance problems such as parents marital status and educational level,
family income, sibling rank, types of college, residence and education fund (Mohamad Fazli
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2.0 CAUSES OF STUDENT FINANCE PROBLEMS
Today, we know that majority of students have money from their scholarship and
education loan for each semester with cash and in a big amount. So they have a problem for
planning their finance with more efficiently. It is because for each semester, they have many
things for use in their study such as reference book, fees and more.
The finding is supported by Mohamad Fazli Sabri et al (2008), more than half of the
respondents did not save any money when they received their scholarship or education loan.
More than half of the students used their money for shopping. About 45% of them spent all their
money before the end of the semester; 17% of students gifted some money to their family, and
13% used their money to repay debts. My opinion about this situation is student must planning
their finance from the beginning of each semester so that they just using the money for necessary
things.
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2.2 THE INFLUENCE OF FAMILY MEMBERS
The second causes of student finance problems are family aspect. This is because some
student comes from low income families. Student had gifted some money to their family for help
them from finance crisis. At the same time, this situation can make the student cannot manage
their finance properly because they had to use their scholarship or education loan for another
things. Sometimes, student cant manage their finance because of a strong family influence. Base
on College Students and Financial Literacy: What They Know and What We Need to Learn by
Cude B. J, the influence of family members is important but complex. Most students reported
hearing various messages about money from various family members. Most of the messages
students shared related to controlling spending and avoiding or using credit wisely. In addition,
many were very aware that they and a sibling approached financial management differently and
wanted to be different from or like their sibling, depending on whether the sibling was more or
Unlike the research from Cude B. J et al (2006), the most significant influence on
students money management behaviors was their parents (70.0%) reported parents together;
13.0% said mother, 6.0%, father). Few students identified as their most important influence a
brother/sister (1.2%), grandparents (1.9%), and other family relative (1.2%). So, student should
manage their finance with using their own opinion and ways. It is because they often influenced
by their family and not confident to make own decision about their finance.
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In this case, student will lost focus for manage their finance because of family
intervention. The effect of this situation is student will leave their finances managed by family.
For another situation that related with this cause is family problem that can make the student
having a problem in their finance. Mohamad Fazli Sabri et al (2008) clearly has noted, students
who have college graduate parents, higher family income, only child, tend to spend on more
items, and have no saving were more likely to have financial problems. There is a negative
significant difference between students who have late childhood consumer experience and
financial problems. Also those who have had more financial socialization have fewer financial
problems.
The last cause is student failed to manage their finance properly. As we know, student
attitude can give an impact to their finance management. Some student have positive attitude and
another student have negative attitude. Refer to Cude B. J et al (2006), one conclusion from the
research is that some college students are not managing their finances well, because they have
not adopted the set of recommended practices. Another conclusion is that some recommended
practices should be modified to more accurately match ways in which college students
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Student also failed to manage their finance with more efficiently because not prepare to
face some possibility that can giving bad effect to their finance. Base on Changing College
Borden L. M, young adults also may be unprepared to effectively manage the psychological
costs associated with high debt; for example, increased levels of stress and decreased levels of
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3.0 CONCLUSION
and finding their weakness in finance problem. They must try to manage their finance without
any intervention from outside such as family, friends and more. Others can also help students in
financial management by establishing some of activities that can attract their interest. According to
Cude B. J et al (2006), other options available to campus administrators include workshops and
seminars, financial counseling centers on campus, peer education, and Internet resources.
However, parents also should to have knowledge about finance management so that can
conduct or discuss with their children. Also refer to Cude B. J et al (2006), parents needs to be
aware of the major role that they play in the financial socialization of their children and that this
process occurs at a very early age. Resources are needed to educate parents about how to
constructively talk to their children about financial management issues. So, all parties should
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4.0 REFERENCES LIST
Financial Behavior and Problems among College Students in Malaysia: Research and Education
Implication. Consumer Interests Annual. Volume 54, 2008. Retrieved 2008, from
consumerinterests.org/images/56.SabriMasudHiraMacdonaldPaim.pdf.
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RESEARCH QUESTIONS:
POSSIBLE ANSWER:
The causes of finance problem among FSKKP students are when receiving a scholarship or
education loan, they always buy an unnecessary things, the influence of family members and
failed to manage their finance properly.
Authors Name Unnecessary Things The Influence of Family Failed to Manage their
Members Finance Properly
In recent years, educators, The most significant A number of students
Cude B. J, Lawrence F. C,
policy makers, and influence on students described using online
Machtmes K, Lyons A. C,
university officials have money management banking and online access
Metzger K, LeJeune E,
focused on one aspect of behaviors was their to their credit card
Marks L (2006)
college parents (70.0% accounts. These students
students financial reported parents together; were not writing checks or
practices their use of 13.0% said mother, 6.0%, balancing checkbooks.
credit, and most father). Few students However, they did have
specifically credit cards. identified as their most systems for
Increased use of credit important checking their bank
cards by influence a brother/sister account balances (usually
college students has (1.2%), grandparents to avoid over drafting) and
generated a concern (1.9%), other family managing their credit card
among many that credit relative (1.2%) or friend charges in relation to their
card debt puts college (1.5%). A small credit limit
students at greater risk for percentage (5.2%)
financial problems after reported other, which
graduation included boyfriend,
girlfriend, husband, wife,
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teacher, self, personal
experience, church, and
classes.
Some researchers have Student often begin their
Borden L. M, Lee S. A,
suggested that lower college careers without
Serido J, Collins D (2008)
income families may not
ever having been solely
be aware of
responsible for their own
college financing options
personal finances
(Olson 1982) or may be
unprepared to effectively
uncomfortable using credit
manage the psychological
for college expenses
costs
(Churaman 1992)