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Common FinancialProblems forUndergraduate StudentsPrepared For : MADAM NAZIHAH BINTI OMARPrepared By : Adriana Izzati Binti Dahalan (2019413632) Illy Ameera Binti Mohd Azizan (2019205922) Nur Adriana Binti Abdul Aziz (2019239054) Nur Insyirah Balqis Binti Herman (2019213883) Nurin Iman Batrisya Bint...

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Common Financial Problems for Undergraduate Students

Prepared For : MADAM NAZIHAH BINTI OMAR Prepared By : Adriana Izzati Binti Dahalan (2019413632) Illy Ameera Binti Mohd Azizan (2019205922) Nur Adriana Binti Abdul Aziz (2019239054) Nur Insyirah Balqis Binti Herman (2019213883) Nurin Iman Batrisya Binti Badrulsham (2019297072)

Date Submission : 21 May 2020

Letter of Transmittal May 21, 2020

Madam Nazihah Binti Omar, Lecturer Jalan Universiti Off, KM12, Jalan Muar, Kemajuan Tanah Jementah Batu Sebelas, 85000, Segamat, Johor.

Dear Madam Nazihah, It is indeed a great pleasure for us to be able to hand over the result of our hardship of the report that you requested last month. We are submitting the attached report entitled “Common Financial Problems for Undergraduate Students”.This report is about Financial Problems among the undergraduate students. In this report there are several reasons why students often face Financial Problems and ways to solve them. We tried our very best preparing this report. The information of this report is mainly based on internet information. Some other information was gathered from our respondent which is undergraduate students. All of us gave our thorough effort to make this report accomplish. Lastly we hope that you find this report worth reading and satisfactory. We also hope you appreciate our hard work and excuse any minor errors. Thank you.

Regards, Adriana Izzati (2019413632) Illy Ameera (2019205922) Nur Adriana (2019239054) Nur Insyirah Balqis (2019213883) Nurin Iman Batrisya (2019297072)

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ACKNOWLEDGEMENT Assalamualaikum w.b.t. First of all, we would like to thank ALLAH S.W.T and HIS messengers, Prophet Muhammad S.A.W. for enabling us to complete our report successfully. All the time we spent to search and discuss ideas for our report. We also would like to express our deepest appreciation to all those who helped us a lot in completing this report. Special appreciation goes to our Business Communication’s Lecturer, Miss Nazihah Binti Omar for her constant support. Her invaluable help in suggestions and encouragement for us in completing this assignment. Therefore, we would like to take this opportunity to thank everyone who has directly or indirectly for giving suggestions, opinions and also guided us in completing this assignment. Your kindness means a lot to us. We also want to thank our parents who always prayed well for us, encouraged us and gave their time to hear our problems. Not to forget, this report can not be done with the help of our respondents by completing our quick survey about Common financial problems for undergraduates students and infinitely thanking all our respondents for willingly to spend their time for us. Lastly, we hope our report will be accepted by Madam Nazihah. We worked hard in order to complete this and we really hoped that every information that we provide in this report can be acceptable for the lecturer. We hope our effort was worth it.

Thank you.

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TABLE CONTENT NO.

CONTENT

PAGE

1.

LETTER TRANSMITTAL

I

2.

ACKNOWLEDGEMENT

II

3.

TABLE CONTENT

III

4.

EXECUTIVE SUMMARY

IV

1.

INTRODUCTION 1.1. Background of Study 1.2. Problem Statement 1.3. Objective of Study 1.4. Limitation of Study 1.5. Method of Study

2.

FINDINGS AND DISCUSSION 2.1. Demographic Profiles of Respondents 2.2 Related Figures/ Graphs/ Charts with interpretation

5.

6.

1 1 2 2 3 3 4-9

7.

CONCLUSION AND RECOMMENDATIONS

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8.

REFERENCES

11-12

9.

APPENDIX

13-15

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EXECUTIVE SUMMARY Jobs and money are the most important things today. As technology advances and evolves in the world, people are getting more worried and take this thing as a serious topic. This topic has become a big concern for all people around the world, especially students. It is because being a student needs to use a lot of money especially for studies.

From the report, we

mentioned that financial problems are one of the common problems that students will be faced due to their bad habits in spending money more on unnecessary things than their needs. In addition, the results blew up our mind because half of the respondents will be facing depression if they have financial problems. This shows that having this kind of problem nowadays will lead to a bad effect such as depression. Due to inadequate national finances, the authorities should be wise in finding ways or alternatives to curb student financial problems, perhaps the government can focus only on the underprivileged and the needy. Next, we collect the information using both methods which are using surveys, books and some online research. Our target population was the undergraduate students that are between 18-27 years old especially from Uitm Segamat and have some of the respondents come from various institutions among Malaysia to complete our questionnaire. By using the survey, we receive 199 respondents which is 70.9% from those who are female and the rest is male. From our findings, we discovered that the majority of the respondents agreed that students should be given priority in financial aid. About 56.3% of students will have a financial crisis at the end of the month and 93% of the money is used to buy food. There is 59.8% students that her/his monthly financial range is below than RM300 and as many as 133 students rather to choose to skip their meal, in order to save their money.University life is a new norm for teenagers, sometimes their young minds still have plenty of ways to spend money on trivial things,this is because they are still in the process of understanding the money flow. In conclusion, it shows that students who are more likely to buy unnecessary things than will make them face this problem. To prevent this problem from getting worse, we need to hold campaigns or talks on how to spend money wisely. With this kind of program, it is able to install a thriving attitude toward every student. This attitude also is very important for every student and we need to apply this attitude at a young age so that we will not have any problems in the future. We highly recommend that students should try to create a spending plan so that students will know all the income and outcome that they make. Maybe by using those ways it might help all students to overcome this problem.

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INTRODUCTION 1.1 BACKGROUND OF STUDY Financial problems will be one of the great headlines in all newspapers around the world soon , if this situation is not restrained. The consequences of this event may lead to money shortage which people cannot afford to pay for their essentials and survive on their daily basis. Financial problems often happen due to bad habits such as spending on unnecessary items such as expensive, branded handbags. These habits may lead to stress and depression because they feel burdened with their debt plus their income is not enough to settle all of their debts in one shot. All of the consequences may impact their mental health and worse, it can be the cause for people to commit suicide. Being students is already a challenging life especially with the financial problem and 90% of university students facing the same problem. They have to manage their time between studies and making money to ensure they will live for another day. In conjunction of these issues,we prepared this report about the Common Financial Problem for Undergraduate Students to collect information about their financial condition on how they spend their money based on their source of income. This problem always happens to undergraduate students because they do not have a stable income and are less experienced in how to manage their money wisely. Based on our survey, the results are extremely astonishing to us because the majority of the students rather choose to skip their meals and half of them will be facing depression if they have financial problems or lack of money. “ Students must learn how to manage their money by practising a modest lifestyle and do not spend their money on unnecessary things. They also need to have a proper meal to support their daily learning activities or their daily life. If they skip their meals it might affect the quality of learning. This problem should become a focus of every university so that it will not continue to persist. “ Tuan Zainun also said “ There are some ways to prevent this problem from continuing by creating awareness among students about the importance of managing their money properly and learning to buy something that they need only. “ ( Professor Dr Tuan Zainun Tuan Mat, 2019 )

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1.2 PROBLEM STATEMENT According to the form we made, we find that this problem is very dangerous because based on our observations and all the articles that we read, many students will harm their body by skipping their meals and starving all day. So, we have to overcome this problem. We want undergraduate students to have a better financial background for their studies and daily basis. Monetary is one of the important aspects for most of the people and especially undergraduate students that do not have stable income. However, undergraduate students need to have a good time management between their jobs and studies which not all students are good at based on the report. The students are not only stressed, but it inhibits student productivity and academic achievement. In response to this problem, our study proposes to explore options for making the undergraduate students' life easier. We plan to carry out a few ways to help the student financially.

1.3 OBJECTIVE OF STUDY OBJECTIVE The objective of this report are :Objective 1 : To identify the average student with financial problem in university Objective 2 : To investigate why they always have financial problem Objective 3 : To find out what will they do if they lack of money Objective 4 : To analyze percentage of their income in a month EXPECTED RESULTS/ OUTCOME OF STUDY This report is about the common financial problems that are faced by students. The respondents for this report consist of undergraduate students that come from a variety of universities. When it comes to this problem, the best way for students to overcome their financial problem is by creating a simple schedule and making sure to make a list on how they spend their money and what they use it for. From there, they will have this clear vision and realization on how much money they actually spend in their daily life. Other than that, students can always discover new things to make income such as do online business. For example, by being a drop-ship for a certain brand. All they need to do is to promote the product and with that they can earn extra money for their daily usage. This report uses a method of investigation by creating a google form and questionnaire for the respondent. It took us about a month to make sure the study on financial problems was carried out.

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1.4 LIMITATION OF STUDY Based on our report about common financial problems for undergraduate students, clearly the target population for this report is undergraduate students in Uitm Segamat and also students among Malaysia. There are over 3 million students in Malaysia and about 10 thousand populations of students in Uitm Segamat but only around 199 of respondents who participate in answering the survey. The convenience sampling method that we used in this research may have led to biases in selection respondents because of the differences in terms of opinion and decision. Due to time constraints and limited time, our group needs to work faster and more carefully in preparing this report as best we can to avoid making mistakes that could damage the data in our report. Besides that, we need to spend more time collecting data and information from outsiders because there are some respondents who actually came from various institutions. In this case, it will affect the process of resolving the solution for this problem.

1.5 METHODOLOGY OF STUDY Our report uses both methods, which are Primary data and Secondary data collection methods. For Primary data we do some surveys and group discussion. By using primary data we can get new information directly from respondents or the targeted population which is undergraduate students. In addition, this survey can provide helpful data for identifying some causes of students' financial problems. Based on the surveys, within two week, ninety one percent of all students fill the form and agree that most undergraduate students are facing this problem. Some of the students have faced this problem because their source of income is below RM300 a month and some of them who have income more than RM300 a month. They are facing this problem because they can’t control themselves from spending their money on something that's not important. For Secondary data we use the internet, journal, newspaper article and website to collect useful data. Countless studies on financial topics but a surprisingly small proportion of researchers take the issues seriously. However the research still gives us helpful data. Both methods are easy to use especially when it's come to what happens to the world now because of the COVID-19. We do not need to go anywhere to get the information. It took about two week to get 199 respondents. As soon as they submit the survey, we can get the data and analyze it through charts, graphs and figures. It will show the percentage and the results for each application that is put in those questionnaires based on their answers. The sample of the questionnaire or survey can be found at the appendix. 3

FINDINGS AND DISCUSSION

The chart shows the age of the respondent who filled in the form. 166 students were between 18-20 years old. The remaining 22 and 11 more students were between 21-23 and 24-26 years old. The average number of students aged 18-20 years fills out this survey because our group members have more friends between that age.

igure 1. Age

Figure 2 Gender of respondent The figure above shows the percentage for gender of respondent. 70.9% are female and 29.1% are male students who respond to our google form.

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Figure 3. Does this problem common to students A total of 181 students chose 1 which indicates yes they are common to this problem. While, another 18 students chose 2 which were not common to this problem. From the graph, it shows that many students have common to this problem and we need to find a way to prevent this problem.

Based on the pie chart shows that many students run out of money at the end of month (56.3%). They faced this problem at the end of month because they splurge so much of the money early in the month and left with so little to survive by the end of it. Next the second highest is the middle of the month which is 38.2%. And some of the students have financial problems at the beginning of the month (5.5%).

Figure 4. Lack of money at

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Figure 5. Source of income

Figure 5.1. Simplified from (figure 5) 138 students out of 199 students receive their monthly money from their parents. 79 students do not take any financial aid or government loans and only rely on their parents. In addition, a total of 57 students are able to cover their monthly expenses through their parents' grants and financial aid or government loans. There are several types of financial aid or government loans. Such as, PTPTN, ZAKAT, MARA, SCHOLAR, Baitumal and others. In addition, 53 students only used loans or government aid as their monthly income source. They do this because they want to reduce the burden of their parents and the person who didn't take any financial aid or government loads because they don’t want to have debt at a young age.

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Figure 6. Student usually spend money on The top 3 in the diagram are food (93%), books (60.3%) and stationery (50.3%). These 3 things are very important for every student. About 93% of students spend their money on food because food is one of the important things in life. Food is very important because food is a source of energy for students to carry on with their daily lives. The second highest is the book, the book is the second most important requirement for students. Without books, students cannot study and get good results. In addition, students spend their money on non-essential things like shopping. Other than that, they also spend their money on transportation, internet, projects and anything related to their study. Students need to know how to differentiate between needs and wants. This knowledge should be applied from a young age so that they are always careful or thrifty when shopping or buying.

Figure 7. Monthly financial Range This pie chart shows the monthly financial range of our respondent. Most of them(59.8%) get less than RM300 a month. RM300 a month is not enough because if you spend RM10-RM15 in a day you might face the problem. The student who gets more than RM300 a month (40.2%) is enough for a month but they need to learn how to spend their money wisely.

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Figure 8. Side effects when they run out of money?

Figure 8.1 Simplify from ( Figure 8) Based on the figure or chart above show side effects when the respondent runs out of money. When they don’t have money they can’t eat so they will feel unhappy (78.4%) and sad at the same time. When they are unhappy or sad it can lead to depression (19.6%). If they can’t handle their emotion properly it can lead to suicide. Therefore, counseling at each university should always be vigilant and aware of this problem so that students do not do the unwanted.

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Figure 9. What did respondents do if they lacked money? When they realise they have run out of money most students will skip their meals or eat instant noodles because by doing that thing they can survive till the end of the month with a small amount of money. Some of the students will be fasting or thrifty to survive till the next month and some of the students will ask their parents or any family members to send some money when they run out of money. Instead of asking parents for money, skipping meals or eating instant noodles, 28.1% of students will find extra income to overcome this problem and to reduce the burden of their parents. By doing this way, we can learn how hard to make money and with such experiences we will always appreciate every Ringgit we want to spend.

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RECOMMENDATION We strongly recommend the students to not spend their money on unnecessary things that are wasting their money, supported by the data on financial problems faced by the undergraduate students. When students skip their meals, it will affect their health and they will not focus in class. Students need to create a spending plan so they do not face the financial stress. Write down all the income and expenses they make. This allows you to manage their cash flow responsibly. As a student, the solution that we can make is that students need to do some part time job for a living. By following our solution, students will have enough money by the end of the month to eat and buy important things. Other ways to spend money wisely is to make investment decisions based on your needs. Take your time to think, just because something is on sale does not mean you have to buy it. Last but not least, universities in Malaysia should give the undergraduate students knowledge about managing their financial problems and other problems. Students should be equipped with basic knowledge that will help them to manage their income efficiently when they enter the labor force.

CONCLUSION Based on our survey questionnaire, we find that students pre...