Financial Management Competencies Among Students and Savings Influence

This report examines the relationship between financial management competencies and personal savings among students, primarily focusing on research conducted in various regions, including Australia, the United States, and Malaysia. The study investigates the influence of financial literacy, parental influence, peer socialization, and self-control on students' saving behaviors. The report delves into the importance of financial management in personal finance, highlighting key concepts and theories from scholars such as Solomon, Howard, Upton, Weston, and Brigham. It explores the impact of financial knowledge on decision-making processes, addressing the challenges faced by young adults in managing their finances. The research aims to determine how financial competence affects personal savings, the role of parents and peers in influencing students' financial decisions, and the impact of self-control on savings behavior. The literature review provides definitions of key concepts, including financial management, personal finance, and the theories underpinning financial decision-making. The report also highlights the significance of parental influence on students' financial attitudes and practices.

Financial Management Competencies among Students and Influence on Personal Saving
Chapter 1: Introduction
1.1 Research Background
In the past it has been identified that there have been several types of the savings pertaining
to the process of the economic development and not for the personal development. The
ability of the savings is observed to be dependent on the several types the factors related to
the economi8c growth. For instance, the savings may have an impact on the economic
growth driven by high rate of savings thereby stimulating the economic progress (Gielnik et al.
2015).
The financial competence of the research aspects is seen to be considered specific field. This
observed to be specific in terms of the recent research initiatives especially in Australia,
United States and Kenya. These are tested as per the working adults, households and
students. The most refried aspect of the topic of the research is identified to be based on the
research towards the MPA students as per the essential financial management skills.
The research conducted in Pakistan is able to state that the Peshawar City has similar
context to the financial competence with the students. This particular evaluation is depicted to
be conducive for the financial management skills among the students. The differences in the
measure are based in the public and private university students. The research is seen to be
using the main aspect of the various type the research consideration which are based on the
future decision making and measuring the financial skill components (RezaeiZadeh et al.
2017).
A study conducted in Malaysia has further shown the relevant research study relating to the
financial competence which are based on the university students. The research design has
used both qualitative and the explanatory nature of the study. The differences are only
depicted as the Falahati measures student’s perceptions which are considered to be
concerned with the financial management skills and implementing the same in the research
framework. There has been further descriptive research applied to the case study. This is
based on the quantitative research aspect. As there is no personal saving aspect in Malaysia
the study has a great opportunity to know how the parents influence on this decision
(Falahati.LPalm, et al. 2011).
On referring to the different variables of the study it is discerned variables has used a
cognitive of the financial literacy influence and similar factors. This is depicted with the use of
the gender, psychologies factors, and demographic influential, knowledge and age. For
instance the financial attitudes of the young adults are identified to be based on the important
nature of the consideration of the financial attitude of young adult is a repercussion of parent
impact (Gu and Schweisfurth 2015).
The explanation of the variable as per the explanation of the behavioural economics has
acknowledged the psychological characteristics. The Psychological characteristics are likely a
result pertaining to peer pressure, procrastination and generosity.
The scholars have further found that the parental influences have a significant impact on the
behaviours of young adults and monetary attitudes. The effective parents are often observed
to be observing and establishing the rules to monitor financial attitudes and practices with
their kids adopt other financial practices. Moreover, the emotional consideration of the study
is identified to be based on the financial matters which required for studying the factors for the
parent socialisation and financial matters of promoting the adaptive practices. The deep
parent-child relationships have a positive impact on the same. The high level of the parental
warmth can further nurture the varies types of the other facets within parent-child dyad which
would be responsible for the children’s concentration and receptiveness (Mikkonen et al.
2016).

In other research studies the financial literacy is identified as the key to the knowledge and
behaviour which will be helpful to investigate the linkage of the effective financial
management. For instance, the two articles are similar to the knowledge and behaviour of the
various types of the responses of the student which are observed to be related to the financial
or economic decision. This factor has been conducive in shaping the various types of the
factor which are in consideration with the financial literacy. This factor is identified to be
focused towards the individual’s attitude towards the growing environment (Albeerdy and
Gharleghi 2015).
In the previous 90’s variable the most frequent parental influence is seen to be based on the
growth of the young adults and the same is depicted as important for financial competence. In
2000 the trend has been observed to add up to the education as an important variable for the
measuring the literacy as an important factor among the young adults which drives the
psychological and behavioural factor differing as per the environment (Loke et al. 2015).
1.2 Research Rationale
This is depicted as the fundamental question for the analysis selection of the distinction
between the probabilities which are observed to be identified with the ambiguity thereby
creating uncertainty of the probability in distribution. In the decision-making process the
financial knowledge is usually associated to one another. The depictions as per the financial
implications has been further able to relate to the various type of the variables which
emphasizes on the stable utility function of an individual.
In the recent studied the empirical value is depicted with a significant nature of the increment
towards the young age adults who are observed to be related to the age between the 25 to 34
ages. As this age of the bankruptcy is getting younger the young adults are identified to be
more susceptible to be failing in the decision-making process.
There has been several numbers of the other studies which are observed to be based on the
depiction of Bankruptcy leading to the failure of the financial management among the
students who are seen to be overspending on the budget. This may be regarding as the minor
issue but this problem may escalate as sooner or later the young age adults start becoming a
part of thee society. Thee failure in terms of managing the individual’s money is observed to
be taken into consideration of the money involvement. This aspect is observed to be referred
as the main problem which will be affecting the financial decision-making process (Agnew and
Harrison 2015).
The unlikable reducing in saving rate for the Malaysian students is observed with savings
behaviour, which is seen as a vital concern for the policy makers and the researchers. The
data relating to the “World Bank as per Gross Domestic Saving (% of GDP)” is observed to be
declining in terms of 2010 to 2013 with approximate drop of 4%. Due to the insufficient
financial competence the university student in the Malaysia are less likely to obtain the
student advances which are distributed aggressively for the non-academic reasons. Number
of students are discerned to be facing several numbers of the issues pertaining to the
financial difficulties. The abilities and skill management are observed are discerned with direct
nature of the influence on the financial expenses thereby making the right choices.
On the other hand, the role of the parent is important toward financial socialization of their
children. A vast majority of the students are identified to be related to be influenced by their
parent for their spending and the savings behaviour. A number of the student are further are
discerned to be considered to be influenced by their spending and saving behaviour. The
parent oriented nature and the unwary individuals are considered to be limited with the self-
control aspects and the student are observed to be affected by the cost and the perceived
risk. In the absence of the self-control factors the students are more into spending
preferred by the behaviour of the student which are observed to be crucial for the past
research which had focused on the single aspect instead of the various types of the
factors which is observed to be related to behaviour of the of the students.

Henceforth, it is depicted to be important to consider the accurate determination of the
personal savings of the scholar’s financial management aspects. In addition to this, the
research has enabled better understanding of the attitudinal and the behavioural aspects of
the study. The study has focused on the various types of the other factors which are seen to
be associated to Theory of Planned Behaviour and investigating the aspect of the
psychologist factors.
Beside this the various types of the other factor in the Malaysia has focused on the personal
savings. Most of the research has are depicted to be related to the context of the financial
aspect of the competence which are depicted with the relationship among the financial
management competence with the students and the personal savings in Malaysia (Asah,
Fatoki and Rungani 2015).
1.3 Research aim, objective, question
Research Aim
To find the relationship of the financial management compet6ence with the student’s personal
savings.
Research Objectives
 To relate the financial management competence of the personal savings of the
students
 To relate the parents, influence on the personal savings of the students.
 To find the peer socialization of the personal savings of the student
 To know about the impact of self-control on the personal savings of the students
Research Question
 Will the higher level of the financial competence have an effect on the personal
savings?
 What are effects of the parents in decision making of the students pertaining to the
personal savings?
 What will be role of the peers in influencing the decision-making process?
 Will the strong the self-control of the students will have more impact on the personal
savings ?
Chapter 2: Literature review
2.1- Definition of key concept
In the 1890’s the financial management was categorised as a main of the branch economics.
Even in the present day the economic aspect is depicted to be weightily in nature. In general,
the financial management relates to define organisation or household. The main definition of
the past theories is identified to be related to the various types of the theories which are
depicted to be directly based on the firm circulation and applicable to the individuals. The
topic of personal finance has emphasized on the aspects such as planning, directing,
organising and controlling financial activities. The private finance is also applicable to the
business finance (Cole, Paulson and Shastry 2016).
These theories have been able to explain the terms of the research in the viewpoint of the
organization as well as the perspective of the individual.
The financial management perspective of individuals in the field of the decision making is
depicted with the application of the various types of the considerations which are required for
the managerial principles of financial-decision making. The theory of the financial
management aspects relating to the revolutionized finance is particularly considered with the
financial decision making. The Solomon’s theory has considered the procurement of the
funds. This is effective for the allocation of thee funds and concerned with the fund-raising
operations.
The comparison of the research theory as per the Solomon statement and Howard and Upton
are seen with the relevance of the study in terms of the student’s financial management. The

Howard and the Upton motives has led to the significant nature of the decision making which
are depicted with the consideration of the individual’s motives for the success of the allocation
of the resources. The effectiveness and decision making along with the allocation of the
resources are considered with the key points which will lead to the success of the financial
management (Fayol 2016).
In next stage the important nature of the consideration for the upgradation of the financial
management is seen to be based on the various type the decision pertaining to Weston and
Brigham. In terms of the various types of the other findings it has been depicted that the
combination of the financial decision making with the goals and the motoves of the
individuals. This theory has further reflected on the achievement off the financial goals which
is essential decision making wise on each unit of fund (Pfeifer Šarlija and Zekić Sušac 2016).
2.2 Review theory
Sabri,MacDonal,Hira,Masud(2010)
In this research the family background, childhood experience and academic ability is related
to the variables in the framework. This idea is further inferred to be driven by the various
types of the other factors driven by the consumer socialization of Moschis (1987). The
previously stated three research aspects provides the concrete empirical data which shows
the influence of the parents, peers, and media and the effect of the consumer socialization.
The main form of the limitation of the research relates to the data collected from the
experience of the childhood consumers. This shoed lack in the educators for the corroborative
evidence. The study shows that the explanatory approach with the statics of the tests such as
the results like financial literacy regression was less than 5%. The additional information is
required for the sample questions to provide a more specific result. The research is further
seen to be surely beneficial for including student’s current income and work experience. The
current income was also not inferred to be conducive for providing specific question
formalized with the consumers. The framework is seen to be incomplete for the research
(Laudon and Laudon 2016).
Falahati,Paim,Ismail,Azizah and Masud (2011)
This research has considered the major components for measuring the financial education
requirements and management skills. It is inferred with the involvement of the eleventh
measurable aspect of the financial management skills. However, it is not possible to include
all the components adaptable with the research such as stress and time management. Some
of the main examples for this includes managing the decision making, problem solving and
career planning. The career planning is regarded as the non-related to financial management.
Despite of this, career planning is important aspect of measure of the students who are
concerned with the significant financial behaviour. The personal savings are seen with the
educational needs to enhance the financial management skills. This research has relevant
aspects for measuring the financial management skills despite of no specific analysis against
the savings. Therefore, this is not complete for using in the research (Happ and Förster
2017).
Kim(2013)
As per the research by Kim the summarization of the ownership of the financial assets,
money management and financial attitudes are essential for the categorization. For instance,
the money management analysis is inferred with the analysis of the savings account. The
study further shows the importance of the parental socialization during childhood. The several
analysis is seen to be influential during the childhood experience. This shows the parental
socialization as per the importance of the variable is inferred with the measurement of the
financial competence. Although there is parental, childhood and demographic measures to
support competence it lacks self-control reports (Kim 2013).
Shaari,Hasan and Kumar (2013)
The research depicts that the courses, investment, demographic and money management.
These variables are closely related to the research topic focused towards the personal

savings of the student. Despite of this, the measurements have lacked the peer factors. The
research variables have specified the questionnaire development and the considerations for
the peer factors. In addition to this, the research factors are seen to be specific with the
consideration of the “financial literacy, questionnaire develop are close-ended questions and
scale response question”. For instance, the academic courses and the measurement among
the students are inferred to with different aspect of the research particularly seen in the effect
with the shopaholic in youth adults. Due to this, the researchers will be able to understand the
various aspects of the financial literacy which may impact the purchase behaviour of the
individuals. This variable is however not complete to be used in the research study due to the
lack of the measuring variables (Shaari,Hasan and Kumar 2013).
Albeerdy and Gharleghdi (2015)
As stated by Albeerdy and Gharleghi (2015) this framework is conducive in terms of defining
the various aspects of money attitude, education and financial socialization agent. They have
further mentioned that the use of the various types of the research variables are in line with
the education variables and the credit management. This research believes that the credit
counselling is related to the credit card management. This has been further able to promote
the positioning of education at an early stage. This further enables the students to perform a
better action in terms of the selection of the various goods and services. In terms of the
money management variables, it is depicted as a component of behaviour. They are of the
opinion that the various types of the attitudes are related to the security value driven by the
self-direction. Other research is able to suggest that there is significant nature of the relation
with the students justifying the reasons which are perceived with the budget. The money
attitude is further inferred to be taken into account with the variables which are depicted with
the consideration of the spending which may lead to successful saving (Bryman and Bell
2015).
Even if the money attitude provides a positive result there has been significant nature of the
consideration pertaining to the behavioural factors and the self-control. In order to conclude
the study there is seen to be significant nature of the research which has been able to focus
on the money attitudes and financial literacy. This was depicted to be consistent in nature.
The financial socializat6ikon are further inferred to be taken into consideration with the factors
such as literacy rates of young adults. In a more recent research the family is having a major
impact on the youngsters in handling of the money followed by the peers.
Theory of Planned Behaviour
“Theory of Planned Behaviour (TBP)” has considered the application of the research as this
theory has expiated the reason why the certain action referred during 1991. The TBP is add
on with the reasoned action which is equally evaluated.
The information system researches such ass the research related to the field of the health
study is inferred to be associated to the economic and human resources.
The individuals with the intention to something to the act with certain types of the behaviour of
the individuals. The behaviour, subjective norms and perceived with behavioural control are
identified to be existing in the TBP with three ideas. The individual’s practices are further seen
to be depicted with the positive and negative evaluation. The individual discussion is identified
related to the discussions apparent to the social burden if not practice of the behaviour. The
social burden is also considered to be consisting of the different nature of the other aspects of
the study which are created by friends and parents. The consequent behaviour which is
created by the social burden which are created by the elements of the finance competence,
parental socialization, peer influence and self-control which be clarified by the notions of the
TBP which required in the analysing the scholars who are having saving habit (Sroufe et al.
2015).
2.3 Conceptual framework

Personal saving-Behaviour
In general saving is confined with wide range of the application in terms numerous
clarification. The financial contexts are seen to be related to the residual revenue archived
after subtracting the present depletion over a certain period of time. In similar way the
psychologic framework raised with several types of the concerns which are related to the
spending of the money for the situations pertaining to be used in the future desires for the
savings decisions and actions related savings. In contrary to this, there is has several types of
the other factors pertaining to the paying off mortgages, saving as investing and placing of
money. Hence, this research has aimed to measure the relationship among the student for
the depictions of the tendency of the individuals to savings towards the level of financial
competence.
Financial competence and personal savings
Previously there has been several types of the other considerations which is related to the
depiction of the several types of the financial competence for the personal savings habits. The
findings have concluded that there is signifies of the financial competence and savings habits.
The findings have further stated that the financial literacy is consistent with the years of the
study. Similarly, it is considered that other analysis has proved that financial competitors are
the major contributors with saving habits.
The forecast habits have further depicted that there is significant relationship between
personal competence and financial competence of the student.
Parents influential and parents influential.
The financial attitude can be defined with the socialization aspects. Both the research has
been observed to be stating variable aspect of the parental influence and in both the analysis
this is seen to be positive in nature. In all the past research the central role of financial
socialization of the kids will be able to contribute to the development of the individual’s saving
behaviour.
Forecast Hypothesis: This depicts that there is relationship among the personal savings in the
student and the parental socialization.
Peers socialization and personal saving

In 1969, it was found that the peer groups are observed to be more contributing during the
adolescent phase. In late 2000 there is no contrast relating to the variables of the peer
influence like Sabri, Hira and Masud. The aforementioned study is seen to be depiction of the
positive result towards the financial literacy. The various types of the survey results are stated
with the individual choice of spending which contingent as per the person’s friend. This has
been mainly observed with the young adults becoming less reliable with the parents and more
positioned in terms of the friends and the adult world (Sabri, MacDonald, Hira and Masud
2010).
Forecast Hypothesis: There exist a link between socialization among the peers and personal
savings of the student.
Self-control and personal savings
In the psychological perspectives and the economic analysis, the self-control is seen to be
regularly used as an important determinant which influences the person’s behaviour and
nature of the spending. For instance, the research conducted in late 1990s it can be observed
that the range of economic and various types of the decisions are having significant
relationship among each other. In addition to this, the guesswork will be also able explore the
different perspectives which are perspectives of Webley and (Nyhus et al. 2015).
Forecast Hypothesis: There is significant relationship of the personal savings and the self-
control of the student.
Section B: Independent and dependent variables
Kindly mark the answer of each statement with a circle using likert scale. (1= Strongly
disagree, (2) = disagree, (3) = neutral, (4)= agree and (5)= Strongly agree).
Financial Competence
No Question Strongly
disagree
Disagree Neutral Agree Strongly
Agree
1 I am having the potential
maintain the financial status
for my expenses and income
1 2 3 4 5
2 I possess the experience for
the preparation financial
records for personal use
1 2 3 4 5
3 I have the capability to prepare
the plan to control the monthly
and weekly expenses
1 2 3 4 5
4 I possess little or no difficulty
in managing money
1 2 3 4 5
5 I scored well in the financial
and accounting modules of my
subjects
1 2 3 4 5
Parental Influential
No Question Strongly
disagree
Disagree Neutral Agree Strongly
Agree
1 I am always advised by the
parents in terms of my
spending habits
1 2 3 4 5
2 Saving is somet6hing I carry
out on a regularly basis as my
parents had always
encouraged me at an early
stage
1 2 3 4 5

3 My parents have emphasized
me to save the money for the
latter use
1 2 3 4 5
4 Parents monitor frequently
monitor my spending habits
1 2 3 4 5
5 My parents have always kept a
watch on my spending habits
and ensured that the spending
is within control
1 2 3 4 5
Peers selection
No Question Strongly
disagree
Disagree Neutral Agree Strongly
Agree
1 Many friends are able to
regularly save money for long
term usage
1 2 3 4 5
2 I tend to spend less and save
more when I see my friends
save more
1 2 3 4 5
3 A majority of my friends are
concerned about the daily
expenditures and also takes
control of the same
1 2 3 4 5
4 Spending time with my friends
has allowed me learn new
ways to save and manage
money
1 2 3 4 5
5 Many friends remind me of the
control which are unnecessary
as per the expenses
1 2 3 4 5
Self-Control
No Question Strongly
disagree
Disagree Neutral Agree Strongly
Agree
1 I am confident to control
expenses and spending habits
1 2 3 4 5
2 I am conscious of what to buy
and avoid needless spending
1 2 3 4 5
3 I tend to always plan from
beforehand before shopping
1 2 3 4 5
4 I make sure that the allowance
for my income is saved and
kept separately
1 2 3 4 5
5 I will monitor my own spending
habits and limit the purchase
1 2 3 4 5
Personal saving
No Question Strongly
disagree
Disagre
e
Neutral Agree Strongly
Agree
1 I always aim to save whatever
I earn
1 2 3 4 5
2 I am always ready an
emergency event
1 2 3 4 5
3 My savings is related to
attainment of a particular goal
1 2 3 4 5
4 I try to save more each year
with respect to the previous
1 2 3 4 5

year
5 I have set my saving target
every month
1 2 3 4 5

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