Identifying the Level of Knowledge, Spending Patterns and Financial Management Practices among University Students in Malaysia

Abstract

Effective financial management is a crucial element in ensuring individual financial stability, particularly among university students in Malaysia. This study aims to assess the level of financial knowledge, spending patterns, and financial management practices among students at Universiti Malaysia Terengganu. Using a descriptive method, the study involved 131 students from various academic programs selected randomly. The findings indicate that most of students have a high level of awareness regarding the importance of financial knowledge, with the highest mean for the independent variable, namely financial knowledge level, at 4.49. However, students’ spending patterns showed a lower mean of 3.68, indicating room for improvement in their practical financial management. The study also found a significant relationship between the level of financial knowledge and students' spending patterns, with the mean for the dependent variable recorded at 4.47. Therefore, students are advised to practice more prudent spending based on their needs and financial capability to achieve better financial management. Debt management should also be avoided, especially when purchasing non-essential items such as gadgets and branded clothing. The study recommends that higher education institutions further enhance financial literacy programs to help students apply financial knowledge in their daily lives.