Financial Literacy and Behaviour among Universiti Malaysia Terengganu’s Students during the Covid-19 Pandemic

Nurul Shahirah Syazwani Mohd Alim; Noorhaslinda Kulub Abdul Rashid

doi:10.56225/ijassh.v1i2.42

Authors

Nurul Shahirah Syazwani Mohd Alim Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Malaysia
Noorhaslinda Kulub Abdul Rashid Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Malaysia

DOI:

https://doi.org/10.56225/ijassh.v1i2.42

Keywords:

financial literacy, financial behaviour, COVID-19 pandemic

Abstract

The COVID-19 pandemic has affected almost all sectors including the higher education sector. Some students have lost their jobs and income due to the implementation of the Movement Control Order (MCO) by the government. This situation has led to the limitation of various activities such as economic, social, and educational sectors to operate, further leading to financial problems among students. The main objective of this study is to identify the extent of students’ literacy level, students’ financial problems and the factors that influence their financial behaviours in fulfilling their needs and wants as a student. These factors will be explored in terms of attitude, influence, fulfilling basic needs and wants and online purchases. The level of literacy will be examined through the value of the score obtained from the questionnaires. The respondents consisted of 100 students from various courses and faculties at UMT. The finding shows that the level of financial literacy for UMT students is at a low level. For statistical items, the study used quantitative analysis including two sample t-test, ANOVA test, correlation test and multiple regression analysis. These finding also shows that there is a significant relationship between basic needs (r=0.285, sig=0.004) and wants (r=0.535, sig=0.000) with financial behaviours. These findings also indicate that there is a significant influence of the basic needs (β=0.397, p-value = 0.01) on the student's financial problems. Therefore, students need to be given financial knowledge to improve their level of financial literacy and given the incentives to ease their financial problems in students to survive themselves.

References

Abdul Rahman, N. H., Muhammad Darus, F., Mohamad Japeri, A. Z. U.-S., Yunos, M. @ S. A., & Mohd Noor, R. (2008). Impak Ekonomi Perbelanjaan Pelajar Universiti Teknologi MARA Pulau Pinang Di Kawasan Seberang Perai Tengah, Pulau Pinang. Proceeding of National Seminar on Science, Technology and Social Sciences 2008, 313–319.

Abdullah, S. A. J., & Ahmad, H. N. (2007). Kewangan & Pelajar IPT. Utusan Publication & Distributor.

Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T

Amsyar Hasif, A. T., & Suhaila, S. (2019). Kesan Bekerja Secara Sambilan ke Atas Pencapaian Akademik Pelajar. Jurnal Personalia Pelajar, 22(2), 143–151.

Baumann, C., & Hall, T. (2012). Getting Cinderella to the ball: putting education at the heart of financial education. International Journal of Consumer Studies, 36(5), 508–514. https://doi.org/10.1111/j.1470-6431.2012.01116.x

Boon Teck, O. (2020, July 5). Covid-19 Ubah Rakyat Guna e-Wallet. Kumpulan Karangkraf.

Chen, H. (1998). An analysis of personal financial literacy among college students. Financial Services Review, 7(2), 107–128. https://doi.org/10.1016/S1057-0810(99)80006-7

Chinen, K., & Endo, H. (2012). Effects of Attitudes and Background on Personal Financial Ability: A Survey in the United States Mortgage default and financial literacy: Situation in the USA and Implications for Japan View project. https://www.researchgate.net/publication/221940809

Gajendra Naidu, D. (2018). Financial Behaviour and Decision-Making (Vol. 6, Issue 1). www.ijcrt.org

Gewin, V. (2020). Five tips for moving teaching online as COVID-19 takes hold. Nature, 580(7802), 295–296. https://doi.org/10.1038/d41586-020-00896-7

Hasnah, H. (2020, September 2). Kesan Covid-19 Kepada Pelajar UMP: Satu Kajian Ringkas. UMP News.

Heymann, D. L., & Shindo, N. (2020). COVID-19: what is next for public health? The Lancet, 395(10224), 542–545. https://doi.org/10.1016/S0140-6736(20)30374-3

Husni Nizad, A. A., Yaakob, R., Abdullah, M. H. S. B., & Baharin, R. (2014). Indeks Sara Hidup Pelajar: Kajian Kes di Kolej Pendidikan Antarabangsa (INTEC). Jurnal Personalia Pelajar, 21(1), 11–18.

Ibrahim, D., Harun, R., & Mohamed Isa, Z. (2009). A Study on Financial Literacy of Malaysian Degree Students. In Canadian Academy of Oriental and Occidental Culture (Vol. 5, Issue 4).

Lusardi, A., & Tufano, P. (2015). Debt literacy, financial experiences, and overindebtedness. Journal of Pension Economics and Finance, 14(4), 332–368. https://doi.org/10.1017/S1474747215000232

Mandell, L., & Klein, L. S. (2009). The Impact of Financial Literacy Education on Subsequent Financial Behavior. http://ssrn.com/abstract=2224231

RinggitPlus. (2021). Malaysian Financial Literacy Survey 2021.

Sabitha, M. (2006). Penyelidikan Sains Sosial: Pendekatan Pragmatik. Dewan Bahasa dan Pustaka.

Saruchi, S. A., Abdul Rahman, A., & Wahid, H. (2015). Pola Perbelanjaan dan Haddul Kifayah Zakat bagi Pelajar Sarjana Muda di Universiti Kebangsaan Malaysia. Jurnal Personalia Pelajar, 8(2), 33–44.

Wagner, J. F. (2015). An analysis of the effects of financial education on financial Literacy and financial behaviors. University of Nebraska.

Xiao, J. J. (n.d.). Applying Behavior Theories to Financial Behavior. In Handbook of Consumer Finance Research (pp. 69–81). Springer New York. https://doi.org/10.1007/978-0-387-75734-6_5

Yu, X., & Yang, R. (2020). COVID-19 transmission through asymptomatic carriers is a challenge to containment. Influenza and Other Respiratory Viruses, 14(4), 474–475. https://doi.org/10.1111/irv.12743

Yuesti, A., Rustiarini, N. W., & Suryandari, N. N. A. (2020). Financial literacy in the COVID-19 pandemic: pressure conditions in Indonesia. Entrepreneurship and Sustainability Issues, 8(1), 884–898. https://doi.org/10.9770/jesi.2020.8.1(59)

Yunos, N. M. (2005). Ringgit & poket / Noor ’Alim Mohd Yunos. Utusan Publications & Distributors Sdn Bhd,. https://books.google.com/books/about/Ringgit_poket.html?id=Agy4tJlcuScC

Zhai, Y., & Du, X. (2020). Addressing collegiate mental health amid COVID-19 pandemic. Psychiatry Research, 288, 113003. https://doi.org/10.1016/J.PSYCHRES.2020.113003