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Financial behavior and problems among university students: Need for financial education

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Many students rely on loans to get them through college. Yet, sometimes students borrow too much money while in school. Excess loan money leads to debt that students must pay back after gradua-tion delaying other financial goals. With the proper educational support about living independently, students can reduce their chance of obtaining unnecessary debt from educational loans. Young adults generally learn their skills from parents and teachers as children. However, parents often overlook teaching financial skills, such as budgeting and investing, while their children are still living at home. Instead, children are forced to learn how to handle their money when entering college and sometimes they make mistakes that will cost them several years of repayment of loans. This study examines what kinds of financial problems students face. By knowing what problems students encounter, it is possible for educators to offer a course that teaches the financial skills necessary to overcome these problems. The participants were asked to indicate what financial education they would be interested in if offered. Nearly all of the students expressed an interest in learning about financial management.
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Journal of Personal Finance
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FINANCIAL BEHAVIOR AND PROBLEMS AMONG
UNIVERSITY STUDENTS: NEED FOR FINANCIAL
EDUCATION
Masud Jariah
University Putra Malaysia
A.R. Husniyah
University Putra Malaysia
P. Laily
University Putra Malaysia
Sonya Britt
Kansas State University
ABSTRACT
Many students rely on loans to get them through college. Yet,
sometimes students borrow too much money while in school. Excess
loan money leads to debt that students must pay back after gradua-
tion delaying other financial goals. With the proper educational
support about living independently, students can reduce their
chance of obtaining unnecessary debt from educational loans.
Young adults generally learn their skills from parents and teachers as
children. However, parents often overlook teaching financial skills,
such as budgeting and investing, while their children are still living
at home. Instead, children are forced to learn how to handle their
money when entering college and sometimes they make mistakes
that will cost them several years of repayment of loans. This study
examines what kinds of financial problems students face. By
knowing what problems students encounter, it is possible for
educators to offer a course that teaches the financial skills necessary
to overcome these problems. The participants were asked to indicate
what financial education they would be interested in if offered.
Nearly all of the students expressed an interest in learning about
financial management.
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Introduction
The expansion of educational services in Malaysia resulted in the
establishment of 12 public universities and many more private colleges. The
number of students enrolled in advanced education past high school doubled
in 1999 compared to 1995 (Department of Statistics, 2000). Increases in tuition
and cost of living expenses forces parents to save more money to send their
children to college. On the other hand, the availability of educational loans
makes it easier for students to continue their education to the highest
degrees. The availability of loans should enable students to focus on their
studies and perform well academically. For the majority of students, admission
to college means the first time they are financially independent and free of
parental supervision.
The financial behavior of college students is the primary focus of
this paper. With the expansion of educational services in Malaysia, university
and college students become one of the most important market segments for
two reasons. First, this group has a high purchasing power especially with the
availability of educational loans. The convenience of educational loans is
designed to address the financial constraints among students to enable them
to concentrate on their studies. Second, this is the segment of the population
who has the potential of earning a greater income than any other segment of
the population. It is hypothesized that knowing students’ financial problems
can help educators develop appropriate programs to prepare them to manage
their money while in college and provide them with basic financial manage-
ment skills before entering the labor force.
Not much is known about the financial behavior and problems of
university students in Malaysia. Research conducted in the United States
reveals that students experience different financial socialization and behave
differently in certain aspects of financial activities. Since financial education is
not available in the school, almost 300,000 college students can be assumed to
have minimal knowledge on financial affairs, yet they are forced to manage
their money independently. This figure is expected to increase in line with the
government policy to have 35% of the labor force with a tertiary education
(Malaysian Government, 2001; p 151). There is a need to understand the
financial behavior of students since they will be an important consumer
segment when they graduate. Knowledge about their behavior will enable
relevant agencies to design appropriate educational programs to equip
students with financial knowledge and skills to enable them to function as
effective personal financial managers in a borderless market and a complicated
financial market.
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Review of Literature
Research has shown that adult behavior, including financial behav-
ior, is learned through socialization. Social learning and consumer socialization
experienced by children brought up in different cultures can be expected to be
different; therefore, it shapes the children’s beliefs and behavior differently.
Moschis (1985) concluded that parents may be instrumental in teaching
general, as well as specific, rational orientation regarding consumption.
Parents may also emphasize normative consumer skills while interacting with
their children. In an earlier study, parents influenced both economic and social
motivation for consumption among adolescents. Hira (1997) summarized that
today’s children are much more independent and are growing up with more
control over their lives than in the past. Students in Hira’s study had twice as
many credit cards, generally obtained by the age of 17, than the total random
sample. The same study revealed that a much higher proportion of students
rather than non-students reported being involved in abnormal buying
behaviors.
An improved level of living affords parents the opportunity to
provide a better life to their children. According to Moore and Moschis (1981)
families may affect the development of materialistic orientation of their
children. This is in line with Bandura’s social learning model (1977) that
children learn by observing a model. Mothers who generally respected and
asked for their children’s opinions tended to utilize messages that fostered the
development of consumption decision-making abilities in children (Carlson,
Grossbart & Struenkel, 1992). Hira (1997) concluded that there was more
communication about money in the households of younger respondents than
older respondents and it is the mother rather than the father who talked to
them about money matters.
Friese and Koenig (1993) found a positive relationship between
variables of family discord and compulsive and impulsive buying behaviors.
Respondents in their study were using buying to escape from problems and
to achieve positive feelings about themselves. Hira (1997) supported this
finding indicating that compulsive behavior is associated with unpleasant
childhood experiences such as divorce, death, withdrawal of love, suppres-
sion of expressed feeling, high expectation, and punishment. Family back-
ground definitely has an impact on the lives of compulsive spenders.
Financial behavior of college students is learned through the
socialization process. What the adolescent observes and learns during
childhood influences how he or she will behave as an adult. Data indicates
that the greater the level of parental addictive behaviors, the higher the
subjects’ levels of compulsive behavior (Friese and Koenig, 1993).
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With increasing awareness of the need for college education, more
and more people are investing in higher education. According to Gladieux
(1997), the 1980 loans from Federal funds awarded to students increased by
60% in 1997. For the period of 1980-1995, the median family income increased
by 9% at constant dollar while tuition increased on the average of 90%. Yet,
the amount of aid awarded increased by only 47%. Loans were the primary
source of income among college students and 50% wished they had borrowed
less while in college. The same study also shows that the amount owed on a
loan influences when the students marry, have children and purchase a new
car. Additionally, students are unable to estimate their total debt.
Using educational loans means incurring debt that students have to
pay back when they graduate. Unplanned financial affairs and overextended
credit can lead to financial problems with the inability to pay back loans or
default in credit repayment. Eighty percent of the sample identified by
Consumer Credit Counseling Services in Oregon and Washington were
women. According to d’Astous, Maltais and Rohberge (1990), and O’Guinn
and Faber (1989) women are more likely to be compulsive buyers and are also
more likely to respond to a questionnaire about this topic.
Gladieux (1997) concluded that students in the United States are
borrowing more, working less, and finishing college with greater indebted-
ness. Greiner (1996) compared actual debt burden ratios with perceived debt
burdens and concluded that if debt payments were 8% of total net income,
about 26% of the borrower population would feel burdened. Pedalino, Chopik,
Sanders, and McHugh (1992) reported that the majority of the respondents
had expected the level of repayment hardship they experienced; while 75% of
the respondents indicated that their choice of a career was not influenced by
their debt.
Several studies have shown that students lack knowledge about
certain aspects of borrowing (Evangelauf, 1987; Hira and Brinkman, 1992;
Holland and Healy, 1989; Marchese, 1986; McCormick, 1987). Hira and
Brinkman (1992) found that 42% of the students did not know when their
repayment would begin, 37% did not know the interest rate on their loans, and
nearly 25% did not know the length of their loan grace period. The study
found that there was a significant relationship between students’ loan
knowledge, their gender, marital status, residency status, and date of first
borrowing. Females and those who initially borrowed before 1983 were shown
to score lower on the knowledge index, while married persons and in-state
residents scored higher.
The majority of students borrow because they need the money to
attend college. Studies conducted in the United States revealed that many
students who use educational loans have limited knowledge about various
aspects of their loans, their ability to handle loan repayments, and how loan
indebtedness will affect other aspects of their lives. Most of the studies cited
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focused on credit use while none of them focused on financial problems and
constraints faced by college students. In contrast, this study focuses on
financial behavior and problems of college students and discusses the need
for financial education.
Within the context of Malaysia, research on financial management is
lacking particularly with young consumers, including college students.
Increased average monthly income from US$532 (RM2020.00) in 1995 to
US$650 (RM2472.00) in 1999 (Government of Malaysia, 2000) reflects the
increase of purchasing power for the overall population. The household
expenditure survey in 1998-1999 indicated that Malaysians spent US$25
(RM96.00) (6%) per month on recreation, entertainment, education and
cultural services. This figure doubled in comparison to the mean expenditure
in 1980 (Department of Statistics, 2000).
Methodology
A self-administered questionnaire was used to collect the data in this
study. Ten percent of all students receiving student loans from one public
university participated in this study. The data was collected during three days
the students were receiving their loan warrants in December for the 2002
semester in the Grand Hall of the University. One out of every tenth student
was given the questionnaire to be completed while they were waiting for their
loan voucher. Students were asked to complete the questionnaire and return it
on their way out of the hall. Eighteen hundred questionnaires were distributed
and fifteen hundred were returned and usable.
The data reported in this article is part of a larger study on financial
behavior of college students. Variables used in this study were 13 items on the
Likert scale statement describing financial behavior and a list of 16 financial
related experiences/problems (Adapted from Hira, 1992). In addition, respon-
dents were asked to indicate which of the 10 financial education topics they
are interested in attending. Gender, age, marital status, place of origin, number
of siblings, academic achievement, whether the respondents experienced
staying in boarding school, parent’s marital status, educational attainment,
and occupation were they socioeconomic variables tested. Descriptive
statistics are used to present the data.
Findings
The profile of the 1500 respondents who participated in this study is
diagrammed in Table 1. Forty percent of the respondents were males while
60% were females. More than 70% of the respondents were Malays followed
by Chinese, Indian and others. Respondents were asked to indicate their place
of origin; rural/ village, small town, or urban/ city. Larger proportions of the
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respondents (46%) were from rural areas and 31% from urban areas. Those
brought up in urban areas may have more exposure to goods and services
compared to those brought up in rural areas. On the other hand, those from
rural areas can also be expected to face drastic changes in their spending
environment when entering college.
Fourteen percent of the respondents depend solely on educational
loans to support themselves. Other forms of monetary support came from one
to eight different sources. One third of the respondents received the majority
of their money from their father. Less than 40% of the respondents received
money from their mother. This is likely due to the fact that more than half of
the respondent’s mothers were full time housewives. The source of money
influences the purchasing power of the respondents and may influence the
financial problems they face. The average amount of money received by
respondents was US$71.74 (RM272.60) with males receiving slightly more
(US$77.85 or RM295.82) compared to females (US$67.62 or RM256.97). The
Chinese students received slightly more than others.
Table 1
Profile of the Respondent by Gender
Male Female
N%N%
Ethnicity Malay 413 70.5 656 73.1
Chinese 116 19.8 151 16.8
Indian 37 6.3 53 5.9
Others 20 3.4 37 4.1
Place of origin Village 275 46.6 422 46.9
Small town 118 20.0 191 21.2
Urban 197 33.4 287 31.9
Sibling ranking Eldest 172 29.2 248 27.5
Middle 303 51.4 486 53.8
Youngest 109 18.5 160 17.7
Only child 6 1.0 9 1.0
Boarding school Yes 311 52.7 398 43.9
No 279 47.3 509 56.1
College GPA <2 35 6.0 38 4.4
2-2.49 160 27.5 210 24.1
2.5-2.99 206 35.4 329 37.8
3-3.74 161 27.7 262 30.1
3.75-4 20 3.4 31 3.6
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Family Background
Family background will influence the socialization experience and
financial resources available to college students. When asked to indicate the
educational attainment of their parents, slightly more than 70% of the respon-
dents provided the answer. Among those who responded to this question,
44% indicated that their mothers had little to no formal education and that
their father had a slightly higher education since the majority of them possess
the Malaysian Certificate of Education or higher. More than half of the
respondents’ mothers were full time housewives while the majority of their
fathers were working in the formal sector. Nearly 10% of the student’s fathers
were retired. Parents’ income is shown in Chart 1 by various backgrounds.
Sixteen percent of the respondents did not answer questions on their parents’
income while 67% reported one source of income and 17% reported both
parents income. The parents’ income influences the amount of money
received by respondents. Respondents from dual career households reported
receiving money from both mother and father. The monthly average amount of
money received from parents was US$40.45 (RM153.70) with males receiving
slightly more (US$43.2) than females (US$34.7). Those from dual career
families reporting receiving an average of US$63.96 (RM243.10) compared to
only US$43.62 (RM165.75) among those with one earner parent.
Financial Behavior
Thirteen items were included in the questionnaire to measure the
financial behavior of the respondents. Respondents were asked to indicate
whether they agreed with the statements describing their financial behavior.
Chart 2 shows the percentage of respondents who agreed with the statement
by gender. Overall, the chart shows that more than half of the respondents
(males and females) agreed that they spend and buy to celebrate. In contrast,
more female respondents tended to enjoy shopping and bought items that
were on sale. There were a higher percentage of male respondents who
indicated that they hide their spending habits from family. The males also
reported that their debts create problems. The data shows that there are
respondents who have the tendency of becoming involved in impulse
purchases and some of them are easily influenced by sales promotion
activities.
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0 500 1000 1500 2000 2500
Male
Female
<2
2-2.49
2.5-2.99
3-3.74
3.75-4
Malay
Chinese
Indian
Others
Rural
Sma ll To w n
Urban
Chart 1: Mean Family Income by Gender, College GPA,
Ethnicity, and Place of Origin
0 10203040506070
Buy things no t needed
Buy things never used
Spend and buy to celebrate
Tempted to buy even lack of time
Attracted to buy things on sale
Buy as often as I can
M ain hobby is shopping
I enjoy shopping
B uy things no t planned
Spending habits create pro blems
Buy things can not affo rd
Debt creates problems
Hide spending habits fro m family
Chart 2: Percentage of Respondents Who Agree
With Statement by Gender
Male
Female
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Financial Problems
The inability to manage financial resources can lead to several other
problems. Since the respondents are living on their own, the ability to manage
their money affects the research study. The expansion of the consumer market
and marketing activities, such as advertisement and sales, makes it harder for
individuals to cope with the market’s increasing demand for their money. Data
from this study provides us with information on financial problems and
constraints faced by college students. The problems listed were derived from
a list used by the Financial Counseling Clinic at Iowa State University to
determine the types of financial counseling required by students seeking
financial counseling services. Chart 3 shows the percentage of respondents
who indicated they have experienced the problems listed by gender. A higher
percentage of males compared to females reported experiencing the problems
listed. More than half of all respondents reported skipping meals to save
money. Those who live off campus tended to eat instant noodles to save
money, since food was not provided with their housing.
When the place of origin was compared, a higher percentage of
those from rural areas reported experiencing more problems compared to those
from urban areas. Students from rural areas may have a limited amount of
resources in comparison to urban area students. Thirty five percent of those
from rural areas indicated that financial matters have an impact on their
studies compared to only 23% from urban areas. Sixty percent of respondents
from rural areas skip meals to save money compared to only 46% among
respondents from the urban areas.
A student’s residential status can also influence the problems he or
she faces. A higher percentage of those living off campus (50.7%) did not
have sufficient money to last until the end of semester compared to those
living on campus. Students living off campus spend more money on items that
students on campus do not have to pay for, such as gasoline for commuting.
Yet, a higher percentage of students living on campus reported skipping meals
to save money. Since their money was not sufficient to last until the end
semester, several students have to borrow money from friends. Thirty percent
of males and no females indicated that they plan to pay off their debt when
they get the money.
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0 102030405060
Skip meals to save money
Unable to increase income
Eat noddles to save money
Can not keep track of money
Insuf ficient money until end of semester
No spending plan
Do not know how to cut spending
Finances eff ect studies
Spend too much
No savings
Expenses greater than income
Spend money on cigerettes
Inability to pay debt
Too much debt
Gambling
Chart 3: Financial Problems By Gender
Female
Male
Chart 4 shows the average number of problems reported by gender,
college grade point average, and ethnicity. A total of 43 males (7.3%) and 77
(8.5%) females testified to never experiencing the 16 problems listed. When
the problems experienced by the respondents were counted, females reported
fewer problems compared to males. More than half of the females reported
experiencing one to four problems while males reported more than three
problems.
Problems faced by college students were significantly different when
the academic achievement was compared. Those with a higher grade point
average reported fewer problems compared to those with a lower grade point
average. Therefore, a lack of financial management skills may also translate
into a lack of academic management skills. There is also a significant differ-
ence in financial problems by ethnicity. Ethnic groups from Sabah and
Sarawak (indicated by “Others” on Chart 4) reported higher means followed
by Malays. Students coming from Sabah and Sarawak reported more financial
problems since the demand for money is higher for them and amount of loans
received was the same as those from Peninsular Malaysia.
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5.08
4.2
5.6
5.12
4.46
4.08
3.76
4.72
3.87
4.2
5.18
0123456
Male
Female
<2
2.2-2.49
2.5-2.99
3.00-3.74
3.75-4
Malay
Chinese
Indian
Others
Chart 4: Financial Problems Experienced by
Ethnicity, Grade Point Average and Gender
Financial Education Needs
The data presented indicates that respondents in this study lack the
skills necessary in order to manage their financial resources. The result of this
study is similar to the result of a previous study (Hira, 1997). Respondents
were asked to indicate whether they needed any help on how to manage their
financial matters. Ninety percent reported that they were interested in learning
about financial management. Chart 5 shows the percentage of respondents
who are interested in learning about specific topics. The highest percentage
of respondents reported they would like to have counseling services followed
by learning about savings and investment, budgeting, how to increase their
income, and financial management. More than half of the respondents
reported that they would like to learn about personal management, how to
reduce spending, insurance protection, and wise spending.
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0 20406080100
Budgeting
Saving and investment
Wise spending
Credit management
How to increase income
Insurance protection
How to cut spending
Financial management
Personal management
Counseling services
Chart 5: Percentage of Respondents Desiring
Financial Education Service by Gender
Female
Male
Conclusion and Recommendations
All respondents in this study are the recipients of educational loans
and are comprised of more females than males. Eleven percent of the males
and 16% of the females did not receive any other source of income while the
others received money from various sources, especially their parents.
Therefore, the data shows that parents still have to support their children’s
college education. Educational loans help lessen the financial burden of
parents, but in the long run loans impose a financial burden to students.
Asked how they plan to spend the money they were receiving, 30% of the
males and 20% of the females indicated they would have to settle their debt.
The study also shows that some students are involved in impulse
spending, supported by the data on financial problems faced by students.
Respondents may be involved in ‘low priority’ unnecessary purchases. For
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example, 46% had cell phones and 5% plan to buy a cell phone with the loan
money they receive. In fact, during the data collection period, there was one
sales agent outside the Grand Hall promoting the purchase of cell phones
among the students. Those with a higher grade point average tend to report
fewer problems compared to those with a lower grade point average and males
tend to have more financial problems than females. With increased cost of
living, students need more money to meet their daily needs.
University education can be regarded as a ticket for a better-paid job.
With the present curriculum at most of the universities in Malaysia, students
are given the knowledge and skills which can be used for job seeking, but
they lack the knowledge and skills necessary to manage their personal or
family matters. Graduates need to be equipped with basic financial knowledge
and skills that will enable them to manage their income efficiently and effec-
tively when they enter the labor force. Although all students in this study
receive educational loans, only a small percentage expressed a need to learn
about credit.
The expansion of the financial market will require consumers to have
information and the ability to choose the services that meet their needs.
Individuals are confronted by a new demand for their money in addition to
meeting basic needs. Medical cost, children’s educational expenditure, and
saving for retirement can be a few of the new financial demands for individu-
als and families. Skills in credit, risk, and investment management are neces-
sary to enable consumers to manage their finances effectively to meet their
goals. Various sources can be tapped to acquire this knowledge. Neverthe-
less, since those providing the financial services are selling financial prod-
ucts, consumers need to be knowledgeable about which products actually
meet their needs. Providing basic financial management knowledge and skills
before graduates enter the job market can be beneficial so they are equipped
with the skills necessary to manage their income effectively.
In conclusion, the data revealed that respondents did not have
sufficient knowledge and skills about managing their financial affairs. Finan-
cial education should be introduced at the college level or earlier to prepare
students to manage their finances effectively. Various approaches and
learning channels can be utilized to achieve this objective. The availability of
online materials can complement and supplement the educational activities.
Effective financial management will contribute to improving the quality of life
and sustainable consumption.
Volume 3, Issue 1 95
Research & Theory
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Jariah M, Husniyah A. R.,and Laily P. are Faculty of Human Ecology in the
Department of Resource Management and Consumer Studies at the Univer-
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... The existing literature on South African students' financial management emphasises the issue of financial literacy (for example, (Botha, 2013;Fatoki, 2014;Kotzé & Smit, 2008;Murphy, 2005;Oseifuah & Gyekye, 2014;Shambare & Rugimbana, 2012; Van der Merwe, 2012) but very little on the financial behaviour of students. Furthermore, given the claim that students' lack of financial knowledge makes them reckless in managing their funds (Becchetti et al.;2013;(Chen & Volpe, 1998;Jariah, Husniyah, Laily, & Britt, 2004;Sabri et al.;. Therefore, the study focused on students in South Africa, who were assumed to have received some financial education to investigate the relationships among financial knowledge, financial attitudes and spending habits. ...
... And Simpson, Smith, Taylor, and Chadd (2012) surveyed 144 first-year students and concluded that these students found it challenging to manage their money, hence made unrewarding financial decisions. Moreover, there is research evidence, which shows that increased financial knowledge influences financial management attitudes, which ultimately result in healthy financial behaviours (Chaudhuri and Holbrook, 2001;Lattin and Bucklin, 1989;Bandura, 1986;2010;Mangleburg et al.;2004;Borden et al.;. Thus, given the foregoing we test the following hypotheses: ...
Article
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This paper considers the financial management practices of university students by examining the relationships among financial knowledge, financial management attitudes and spending habits (financial decisions) of university students in South Africa. The evaluation of the relationships employed the established theories of planned behaviour and family resource management in conjunction with structural equation modelling analysis. The study collected survey data from 479 students that had taken finance-related courses at a major university in South Africa. The results suggest that students' financial knowledge positively influenced their financial management attitudes and that higher level of students' financial management attitudes led to good spending habits. However, students' financial knowledge had no direct impact on students' spending habits. Instead, students' financial management attitudes fully mediated the relationship between students' financial knowledge and their spending habits, suggesting financial knowledge does not on its own lead to good spending habits (financial decisions). The findings of the paper have implications for students, their funders, the government, and university administrators in terms of students' financial literacy education and the allocation of increasingly scarce economic resources devoted to educational welfare.
... These circumstances reveal the alarming state of their financial literacy and behavior.According to State Bank of Pakistan staff notes, majority of Pakistani youth spend more than their capacity to generate (Ali, 2016). Moreover lack of financial literacy is extensively documented as a critical attribute to financial mismanagement (Duasa & Yusof, 2013;Jariah, Husniyah, Laily, & Britt, 2004;Osman, Justine, & Lim, 2008;Sang, 2014). However due to the ethereal nature of financial products, difficulty of quantification in the quality of investment and outcome makes the financial decision making a risk and complex process. ...
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This study investigated the influence of financial knowledge on the behavioral intention to invest in the presence of risk perception and attitude toward investment as a mediators in a serial mediation, while exploring the complication of decision making regarding financial matter among Pakistanis' adults. The study divided financial knowledge into objective or actual and subjective or self-rated knowledge. Data were collected through questionnaires from the 400 adults. The results of the study demonstrates a significant mediating effect of perception toward risk and attitude toward investment in the association between knowledge of finance and behavioral intention to invest. In decision making process, the importance of financial knowledge, the complexity existed in the relationship of knowledge and behavior are also explained by the study in the presence of risk and attitude.
... The convenience sampling method was conducted to collect the respondents who are studying at the college and university levels. With the proliferation of the internet, college students have become an important part of the consumer section as they are heavy and active users compared with the other sections of the population (Jariah et al., 2004;Delafrooz et al., 2011). All the constructs used in this research model were applied with standard scales from previous literature. ...
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Purpose The purpose of this study is to explore the changing buying behavior of young Bangladeshi consumers in this pandemic situation toward online orientation. The major determinants of the technology acceptance model (TAM) and consumer value theory are used to explore their impact on buying attitudes toward behavior. Design/methodology/approach In this study, a model has been conceptualized to examine the influence of hedonic and utilitarian motivational values along with perceived usefulness and perceived ease of use on actual buying behavior under pandemic conditions. A structured questionnaire has been prepared for an online survey, and data have been collected from 395 online shoppers. The structural equation modeling technique has been applied to analyze the data using SPSS and SmartPLS 3 software. Findings The results of this study support that perceived enjoyment and utilitarian attributes (price, convenience and health aspects) positively affect online buying attitudes along with perceived usefulness and perceived ease of use. Finally, online buying behavior is significantly influenced by the positive attitude of consumers. Research limitations/implications The findings of this study may contribute to developing marketing strategies that may attract buyers toward a new business orientation with prosperous supreme features in the future. The emergence of the COVID-19 pandemic has changed the existing behavioral patterns of consumers and opened a new opportunity for marketers. Practical implications Young consumers are a larger section, and deep knowledge about youngsters may direct marketers toward appropriate use of marketing tools and strategies in the future. Originality/value This study integrated the TAM with hedonic and utilitarian motivational predictors to measure their impact on consumers' online buying behavior.
... These circumstances reveal the alarming state of their financial literacy and behavior.According to State Bank of Pakistan staff notes, majority of Pakistani youth spend more than their capacity to generate (Ali, 2016). Moreover lack of financial literacy is extensively documented as a critical attribute to financial mismanagement (Duasa & Yusof, 2013;Jariah, Husniyah, Laily, & Britt, 2004;Osman, Justine, & Lim, 2008;Sang, 2014). However due to the ethereal nature of financial products, difficulty of quantification in the quality of investment and outcome makes the financial decision making a risk and complex process. ...
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This study investigated the influence of financial knowledge on the behavioral intention to invest in the presence of risk perception and attitude toward investment as a mediators in a serial mediation, while exploring the complication of decision making regarding financial matter among Pakistanis' adults. The study divided financial knowledge into objective or actual and subjective or self-rated knowledge. Data were collected through questionnaires from the 400 adults. The results of the study demonstrates a significant mediating effect of perception toward risk and attitude toward investment in the association between knowledge of finance and behavioral intention to invest. In decision making process, the importance of financial knowledge, the complexity existed in the relationship of knowledge and behavior are also explained by the study in the presence of risk and attitude.
Chapter
Nowadays, the economy is becoming more complex and social processes are increasingly requiring students to become capable producers or consumers. Hence, it is widely regarded that a person must possess financial literacy as an economic entity. In addition to certain financial institutions, numerous educational institutions have made personal financial literacy education a priority. Obviously, residential colleges play an outsized role in students’ daily lives and should provide an environment in which resident students can learn the skills needed for financial independence. This chapter therefore reviews the extent to which financial literacy activities are embedded in residential colleges through a systematic review method. It also provides practical guidelines on how financial literacy education can be conducted in residential education.
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