Financing Proposal

Factors That Influencing Personal Financial Planning Management: A Study At Kota Bharu
CHAPTER 1 : INTRODUCTION 1.1 BACKGROUND OF STUDY
1.1.1 Overview on the factors that influencing personal finance planning management. Personal financial can be defined as a principle that teaches an individual how to manage their money and monetary decisions into appropriate manner. Individuals deal with financial management on a daily basis, and whether it is budgeting for groceries, buying clothing, purchasing a home or car, or paying for college, many of the financial decisions people make today can have residual effects that last a lifetime. A bad credit score can lead to a higher mortgage interest rate, which can lead to less purchasing power when buying a home and paying thousands more in interest during the life of the mortgage. Learning to manage money wisely is a challenging task for many, even more so for individuals who lack basic financial skills and who have little to no experience with financial management.
Personal finance is the application of the principles of finance to the monetary decisions of an individual or family unit. It addresses the ways in which individuals or families obtain, budget, save, and spend monetary resources over time, taking into account various financial risks and future life events. Components of personal finance might include savings accounts, credit cards and consumer loans, retirement planning, investments and insurance policies and income tax management. The personal financial planning process enables to understand a financial plan and develop a personal financial plan. The simple objective of financial planning is to make the best use of the resources to achieve financial goals.
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The first factor influence personal financial planning is gender. Females have often been found to possess less financial knowledge and interests compared to males. Females are intrinsically right brain thinkers which serve them better in nurturing roles as wives, mothers and homemakers rather than financial matters. Despite being responsive to financial education, females were found to possess a lower retirement age and income goals. Females also tend to be risk adverse in financial choices.
Women know less about financial management than men. In comparison to men, women share a larger burden of raising families, start to work later and earn less during their careers, live longer, have inadequate pension or survivors' benefits, and face more challenges in financial management. Risk adverse behaviour of women in their retirement planning will likely result in significantly lower pension wealth than men. Second factor that influence personal financial planning is age. Generally, older individuals are more conservative and risk adverse. The deeper life experiences may encourage the acquisition of skills to secure their financial aspirations in their life. Nowadays, youth prefer to use credit cards which is can cause them to become bankruptcies in early ages. Low financial knowledge may leading to high level debts, risk of bankruptcy and lacking retirement planning skills among youth. Age can influence personal financial planning management among people. Third, factor that can influence personal financial planning
management is personal income. Personal income can influence people by different level of income that different people monthly. It is also linked with age. Typically, people with low incomes fall into the very young or very old age groups. Tax management is important in order to avoid loss in their Page 2
income. Sources of income which can be taxed includes gains and profits from trade, profession and business, salaries, remunerations, gains and profits from an employment, dividends, interests or discounts, rents, royalties or premiums, pensions, annuities and others. Fourth, another factor that can influence personal financial planning management is level of education. Level of formal education is a controllable factor that significantly affects the income. More high education tends to get great earning in their life. Less knowledgeable investors are more prone to hold a widely diversified asset portfolio, financial knowledge has also been found to positively reinforce financial satisfaction. Financial literacy improves the exposure and understanding of the risks associated with the complexity of retirement, insurance and investment planning. Thus, higher education levels are expect to be associated with higher financial awareness among people. Fifth, investments planning also can influence people in their personal financial planning. Investment planning is the part of financial planning that pertains to the allocation of investment assets. There are a variety of different types of investments available today, which are short-term investments, longterm investments, and as many different investment strategies as there are investors. Obviously, there are differences between short-term and long-term investments. Short-term investments are designed to be made only for a little while, and hopefully show a significant yield, for examples shares, insurance, securities bought and others. Long-term investments are designed to last for years, showing a slow but steady increase so that there is a significant yield at the end of the term for example bonds, gold, long term notes, and others.
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Sometimes the individual have failed to make a successful financial planning. Most of the time, they cannot balance between the saving, expenses and investment portion. A key component of personal finance is financial planning process and it has six major steps, which are define financial goals, develop financial plans and strategies to achieve goals, implement financial plans and strategies, periodically develop and implement budgets to monitor and control progress towards goals, use financial statements to evaluate results of plans and budgets by taking corrective action, redefine goals and revise plans and strategies.
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1.2 PROBLEM STATEMENT Todays financial world is highly complex when compared with that of a generation ago. Several past years, a simple understanding about saving, budgeting, retirement plan, investment and others thing about personal finance may have been sufficient. Now, consumers must be able to make a good saving, plan for their family futures to make sure that they are financially prepared when they retire, lost their job or something emergency happen. People also need to understand about personal finance because nowadays there are many finance products and services. So to make sure that people do not choose the wrong finance products and services, they need to understand the basic about personal finance. So that they only can choose the products and services that only give benefit to them. Everyone has heard about making a decision about what to buy, making a credit purchase and also use credit card every day but no one really understands the full impact of their decisions. For example, people that cannot manage their financial or cannot pay their overspending credit card bill and also fail to pay their loan monthly payment may entering into the debt trap and then may charge with personal bankruptcy. Sometimes people may choose short cut by borrow the money from the loan shark. Then they need to pay high interest and if they fail to the money, they will be blackmail and it becomes a criminal and their life feel uncomfortable because of always disturbing by the loan shark. Financial planning is important because a fast-paced world an everincreasing number of financial alternatives are presented. Moreover, information through all kinds of media, including the Internet is available to help people to make selection which make wise decision can help people to
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achieve their goals. Financial planning also includes gaining insight into the efficient way to perform a task and then handling it in a logical, disciplined way, enables to further the objectives. Understanding personal financial planning and being comfortable with own planning efforts have important benefits for society as well. It allow people dedicate full efforts at work to the job at hand. It also make people more effective at that job since the household and the business approach many problems in the same way, and, many personal financial planning techniques are useful in work-related situations.
Based on this nowadays situation, so, this study focuses on the factors that influencing personal financial planning management with age, gender, personal income, level of education and investment among the people at Kota Bharu, Kelantan.
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1.3 OBJECTIVE THE STUDY The main objective is to identify if there are any relationships between age, gender, personal income, level of education and investment planning towards the factors of influencing personal financial planning management. In order to achieve the main factor, this research will specifically: 1.3.1 To identify that early age of people at Kota Bharu are more concern about personal financial planning management. 1.3.2 To identify which gender are more concern about personal financial planning management matter. 1.3.3 To identify level of income can influence personal financial planning management. 1.3.4 To identify the level of education can influence personal financial planning management. 1.3.5 To indentify the pattern about investment planning among people at Kota Bharu.
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1.4 RESEARCH QUESTIONS To investigate the four areas of concern, the following research questions guided the study: 1.4.1 1.4.2 Does ages influence the personal financial planning management? Does gender influence the personal financial planning management?
1.4.3 Does personal income influence the personal financial planning management? 1.4.4 Does level of education influence the personal financial planning management? 1.4.5 Does investment planning influence the personal financial planning management?
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1.5 THEORETICAL FRAMEWORK
AGE
GENDER
PERSONAL INCOME
PERSONAL FINANCIAL PLANNING MANAGEMENT
LEVEL OF EDUCATION
INVESTMENT PLANNING
INDEPENDENT VARIABLES
DEPENDENT VARIABLE
Factor personal financial planning can be influenced by gender, because it has differences in level of awareness about personal finance management between female and male. For the age, there are differences in the younger and adult level of awareness towards personal finance management. It is whether young or adult is more aware about personal finance management. For the personal income, people get different incomes either lower income or higher income. So the factor towards personal finance management is influenced by the personal income. For the level of education, people with higher education may have a difference in their level of awareness towards personal finance management. Investment planning also becomes factor of personal financial planning management which the amounts that people invest for their investments influence their personal financial planning management. Page 9
1.6 RESEARCH HYPOTHESIS
The hypothesis of the study is: Hypothesis I Ho : There is no relationship between age and factor influencing personal finance management. H1 : There is a relationship between age and factor influencing personal finance management.
Hypothesis II Ho : There is no relationship between gender and factor influencing personal finance management. H1 : There is a relationship between gender and factor influencing personal finance management.
Hypothesis III Ho : There is no relationship between personal income and factor influencing personal finance management. H1 : There is a relationship between personal income and factor influencing personal finance management.
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Hypothesis IV Ho : There is no relationship between level of education and factor influencing personal finance management. H1 : There is a relationship between level of education and factor influencing personal finance management.
Hypothesis V Ho : There is no relationship between investment planning and factor influencing personal finance management. H1 : There is a relationship between investment planning and factor influencing personal finance management.
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1.7 SIGNIFICANCE OF THE STUDY This study is expected to be contributed significantly on the following aspects: 1.7.1 Consumers The benefits can be in terms of more understanding about investment planning and learn how to plan their financial wisely. They can start to control their spending after this study and this will help them to use money for necessary things. Thus, they are able to save their money or make the good investment for emergency situations in the future. Therefore, when they understand about personal finance, it will reduce the burden of the consumers in the future. 1.7.2 Researcher This research will give the researcher information about the personal financial behaviour among people at Kota Bharu. From this, the researcher know the age, gender, personal income, level of education and investment planning can influence personal financial planning pattern among people at Kota Bharu. 1.7.3 Government From this study the government can know who understand and do not understand about personal finance management, so that the
government may pay attention to make a personal finance campaign for the focus group based on this study. Then the campaign that the government does may be useful because it is done to the right focus group. It also can avoid from wasting time, money and energy because of false focus group.
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1.7.4 Workers By using this study, it helps working people in order to manage and plan their financial. Nowadays, most of them are aware of personal finance but they do not know how to manage it. By doing this research, it could help them to manage their personal finance wisely by make investment wisely. They also can decide which level of age that they should start to make the best action for their retirement soon. 1.7.5 Bankers Bankers can use this study as a part of their marketing effort. From this study they know which area is familiar with the respondent, so that they can use the information to do marketing to the respondent. It also will ensure that they do not waste their time and money to market their financial product to those who do not know about their financial product.
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1.8 SCOPE OF STUDY This study is about the factors influencing personal financial planning management, at Kota Bharu that represents the urban area at Kelantan. This study will investigate which factors is more influence about the personal financial planning management. The respondents of this research are workers in public sectors, private sectors, unemployed and self-employed that come from Kota Bharu, Kelantan. The area of observation are at KB Mall, Pejabat Setiausaha Negeri Kelantan, and UiTM Kota Bharu which participated about 100 respondents.
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1.9 LIMITATIONS OF THE STUDY 1.9.1 Budget constraint. In doing the research, it will incur the researcher many costs. Therefore, in doing the research, it is important for the researcher to have a strong financial resource. This is because without financial abilities, it will be difficult for the researcher to do and complete the research efficiently and effectively. And with sufficient budget, it will portray the transparencies. 1.9.2 Sources of information. In order to do the research, information is the most important element to be included. Without sufficient information, it will be hard for the researcher to undergo the research. This is because the information will help the researcher in obtaining findings and finally come out with the solutions for the problems. It becomes constraint whenever the researcher does get enough access for the information needed. Besides that, for collecting information about peoples awareness towards personal finance in Malaysia, the database for the information is not properly recorded and stored. Furthermore, it is hard to be found. Therefore, it is a problem for the researcher to get the information. So, it will also affect the effort of the researcher in gaining the information for the research.
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1.9.3 Timing constraints Because this research will be done only in one semester only, we do not have enough time to make a proper research. We only have about 5 months to complete this research. In order to complete this research on time, we need to sacrifice much time to make sure the results for this research are useful. 1.9.4 Cooperation constraints Because this study uses the primary data, the researcher needs to give the questionnaire to the respondent. But there are respondents whose did not want to give their cooperation to the researcher.
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1.10 DEFINITION OF TERMS 1.10.1 Financial A branch of economics concerned with resource allocation as well as resource management, acquisition and investment. Simply, finance deals with matters related to money and the markets. 1.10.2 Debt The quantifiable likelihood of loss or less-than-expected returns. Examples: currency risk, inflation risk, principal risk, country risk, economic risk, mortgage risk, liquidity risk. 1.10.3 Loan An arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with interest, at some future point(s) in time.
1.10.4
Risk The quantifiable likelihood of loss or less-than-expected returns. Examples: currency risk, inflation risk, principal risk,
country risk, economic risk, mortgage risk, liquidity risk
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CHAPTER 2: LITERATURE REVIEW 2.1 INTRODUCTION This part will discuss the literature review which is relevant to the study. It is regarding the personal financial planning management among people at Kota Bharu relationship with the age, gender, personal income, level of education and investment planning of respondents. 2.2 PERSONAL FINANCIAL PLANNING Personal financial planning is the process of planning spending, financing, and investing to increase the profit and to optimize the financial situation. In order to achieve the goals which to increase the worth, the proper financial plan are intended by specifies the financial goals, describes the spending, financing, investing plans. Lack of savings will cause many problems which can contribute bankruptcy among youth, increasing cost of health care and other necessities,(Jeff Madura,2007). Besides, based on study by Lewis J. Altfest, 2007,personal financial planning can be thought of as the analysis and decision making extension of personal finance. Basically, personal financial planning decisions includes consumption and savings, investments, financing, and risk management. Personal finance is the application of the principles of finance to the monetary decisions of an individual or family unit. It addresses the ways in which individuals or families obtain, budget, save, and spend monetary resources over time, taking into account various financial risks and future life events. Components of personal finance might include checking and savings accounts, credit cards and consumer loans, investments in the stock market, retirement plans, social security benefits, insurance policies, and income tax management.(http://en.wikipedia.org/wiki/Personal_finance)
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Based on journal by Ade`le Gritten,(2011), are mention about a paradigm shift in consumer confidence has taken place with the worst recession on record forcing people to evaluate their personal and household finances This journal seeks to explore the extent to which consumer confidence has been tarnished, and how it has evolved post-recession. It aims to take both retrospective and prospective views on what has changed in the British psyche since the credit crunch, looking at where new confidences have been found and where old confidences have been lost. The methodology is based on a variety of proprietary quantitative research surveys conducted by YouGov plc. The findings is provides new insights into consumer confidence, looking at which aspects of household expenditure and budgets have been hardest squeezed, and what that means for short- and medium-term futures; analysing the extent to which the generally lower level of available credit makes consumers more or less reliant on borrowing as a way of life, and the associated impact on confidence and decision making/financial planning prioritisation; exploring the real fears and concerns people have about their future finances and exploring consumer financial hopes and aspirations in a post-recessionary climate. Based on journal by Ming Ming Lai And Wei Khong, (2009), mentioned about the attitudes of the Malaysians toward personal financial planning, which encompasses money management, insurance planning, investment planning, retirement planning, and estate planning . the methodology use a survey data was obtained from 400 Malaysians by using a set of structured questionnaire associated personal financial planning efforts with three measures attitudes towards personal financial planning, factors influencing various aspects of personal financial planning decision, and frequency of managing for various aspects of personal financial planning. The results show that the job status of a respondent is the primary factor in influencing attitudes towards personal Page 19
financial planning and the frequency in managing for various aspects of personal financial planning. Demographic characteristics such as age, race, marital status, gender, and education level are the secondary factors were concerned. This journal has implications on financial planners in formulation strategies on how to successfully deploy a personal financial planning programme for their customers. 2.3 DEMOGRAPHIC FACTORS (AGE, GENDER, PERSONAL INCOME AND LEVEL OF EDUCATION) Based on study by Joyce K.H. Nga, Lisa H.L. Yong and Rathakrishnan D. Sellapan, (2010),this journal are mention about investigate the level of general financial and product awareness among young adults. This journal also state that demographic factors have been found to influence consumer behaviour. Besides, socioeconomic and cultural background also have impact on an individual financial knowledge, perception risk, consumption and spending patterns.The methodology use a survey was employed using a sample of 280 student at a private higher education institution in Subang Jaya, Malaysia. Exploratory factor analysis (EFA) using principal component analysis (PCA) was used to evaluate convergent and discriminates validity of the measures for the constructs of this study, namely general financial awareness and financial product awareness. Hypothesis testing was done using multivariate analysis of variance (MANCOVA). The findings of the study revealed that the level of education and majors influence general and financial product awareness among youths. Also, males were found to have higher levels of financial awareness compared to females.
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Based on study by David S. Murphy and Scott Yetmar,(2010) are mention about to report on a survey about the personal financial planning attitudes of MBA students in the USA. The methodology use The study surveyed 206 MBA students about their attitudes to personal financial planning. Participants were asked about their level of knowledge, whether they had prepared components of a financial plan, where they might seek assistance in such a process and the criteria for selecting a financial planner. In addition, participants were asked to indicate their level of confidence in a financial plans capacity to help them meet their long-term needs and the likelihood that they would implement such a plan. The findings are indicate that, while most respondents feel both that financial planning is important and that they are interested in developing a financial plan, very few feel that they have the necessary skills and knowledge to prepare their own plan. In addition, the participants indicated a strong preference for professional personal financial planning advice. The study also indicates that less than 13 percent have prepared a comprehensive personal financial plan. When asked to identify the one professional from whom they would seek advice, certified financial planners were the preferred resource. Moreover, based on study by Chen, Haiyang,(2002),are journal mention about surveying financial literacy among college students, find that women generally have less knowledge about personal finance topics. Gender differences remain statistically significant after controlling for other factors such as participants' majors, class rank, work experience, and age. However, that education and experience can have a significant impact on the financial literacy of both men and women. Women generally have less enthusiasm for, lower confidence in, and less willingness to learn about personal finance topics than men do. Methodology this study uses a comprehensive survey to Page 21
determine participants' personal finance knowledge in the areas of general knowledge of personal finance, savings and borrowing, insurance, and investments. To cover the domain of the key areas of personal finance, it have thoroughly reviewed related literature and generated hundreds of questions in these areas. The findings are on average women know less about personal finance than men. 2.4 INVESTMENT PLANNING FACTOR According to Lewis J. Altfest,2007, Investment is the result of decision where spend less today so that people will have enough wealth for future spending needs. The reason of investment and saving is tp have enough money to live comfortably in retirement when people no longer have active work-related income. How much people put aside for investments depends on their goals which are strongly influenced by the pleasure people get from spending today versus the satisfaction people get from saving monies so that people live the good life in the future. Based on study by Tuan Hock Ng, Woan Ying Tay, Nya Ling Tan, and Ying San Lim (2011), this journal mention about analyses the effect of demographic and investment experience on retirement planning intention. Recognising the importance of retirement planning, 300 structured
questionnaires were administered in April 2009. The final sample consists of 216 after the account for non-replied questionnaires and the removal of incomplete data. Pertinently, Malaysia represents a unique platform for this research due to its multiracial cultures. The methodology use a total of 300 questionnaires were personally administered in three states in Malaysia, namely Johor, Melaka, and Selangor in April 2009. Only 250 respondents attempted this survey. There were 50 questionnaires that were failed to be collected from respondents. Of the total 250 responded questionnaires, 34 Page 22
copies were discarded due to incomplete data, making a sample of 216 copies in the present study or a total of 72 % response rate. SPSS version 16.0 was used to analyse all the data collected. The findings of this research show that demographic characteristics affect behavioural intention, i.e. marital status, age, and income level. Investment experience is another factor reported to have significantly affected retirement planning intention in this study.
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CHAPTER 3 : RESEARCH METHODOLOGY 3.1 INTRODUCTION Research methodology refers to a description on data collection methods, sampling design and statistical technique use for data analysis. Methodology can be defined the analysis of the principles of methods, rules, and postulates employed by a discipline or, the systematic study of methods that are, can be, or have been applied within a discipline or, a documented process for management of projects that contains procedures, definitions and explanations of techniques used to collect, store, analyze and present information as part of a research process in a given discipline. (http://en.wikipedia.org/wiki/Methodology) 3.2 SAMPLING AND DATA COLLECTION The sampling of data used is simple or convenience sampling. The population for this study comprised of workers in public sector, private sector, unemployed and self-employed around Kota Bharu. In this study, the primary data was taken or used. The data were taken from 100 respondents from Pejabat Setiausaha Kelantan, people at KB Mall and people at UiTM Kota Bharu by giving them questionnaires that have been prepared. In this study, the independent variables are gender, age, personal income, level of education and investment planning. The researcher used primary data to complete this study. Primary data is the data collected or obtained directly from the field. The researcher had developed questionnaires that had been distributed at the fieldwork that is worker in government sector, private sector, unemployed and self-employed around Kota Bharu.
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3.3 SAMPLE AND SAMPLING DESIGN The structured questionnaire is used in gathering data for completion of this study. For this study, the question is divided into three different parts. Part A is on demographic profile that consists of multiple choice questions about demographic information and introduction about personal finance
management. This demographic factor is the independent variable for this study. Meanwhile, in Part B the researcher had constructed questions about public awareness and how respondents manage personal financial planning. In part B the questions include concerning, budgets, expenditure, expenses and investment planning and the others that are related to personal finance management. In this part the researcher will use the multiple choice question. Last part is Part C, the researcher constructed question about public opinion which to know what opinion people towards the personal financial planning management. In this part the researcher will use the Likert Scale question. 3.3.1 Multiple Choice Questions The multiple choice question is single coded in which the respondent is permitted to check one and only one answer. 3.3.2 Likert Scale Questions This scaling technique required the respondents to indicate a degree of agreement or disagreement with each series of statements. There are five different scale used to differentiate the degree of agreement and disagreement. The scales ranges 1 to 5 from strongly disagree to strongly agree, respectively. Page 25
3.4 DATA ANALYSIS For the measurement of the data, the Statistical Package for the Social Sciences (SPSS) packages are used. It is to determine the relationship among the variables. Besides that, the SPSS is used to build the regression equation that can be derived from the production of rice. The data and findings then will be assessed to determine the correlation among the variables. 3.4.1 Descriptive statistics Descriptive statistics are useful to describe the data or to see the characteristics of the data. It will describe the demographic data from the research. From the descriptive statistic we may know the respondent age, gender, personal income, level of education and race.
3.4.2
Crosstab In order to explained the relationship between variable, crosstab are used. Cross tabulation is the process of creating a contingency table from the multivariate frequency distribution of statistical variables. Heavily used in survey research, cross tabulations (or crosstabs for short) can be produced by a range of statistical packages, including some that are specialized for the task. Survey weights often need to be incorporated. Unweighted tables can be easily produced by some spreadsheets and other business intelligence tools, where they are commonly known as pivot tables.
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3.5 REGRESSION TECHNIQUE Regression analysis is concerned with the study of the dependence of one variable, the dependent variable, on one or more other variables, the independent variables, with a view to estimating and predicting the (population) mean or average value of the former in terms of the known or fixed values of the latter. In others word, regression analysis is statistical technique for investigating and modelling the relationship between variables. Its explain how a dependent variable is affected by independent variables. 3.5.1 ANOVA Analysis of Variance (ANOVA) models is a regression that may contain regressors that are all exclusively dummy, or qualitative in nature (Gujerati and Porter,2009). Use this model if all independent variables are qualitative or dummy variables. ANOVA purposes are to assess the statistical significance of the relationship between a quantitative regress and (Y) and qualitative or dummy variables. Moreover, ANOVA use to compare differences in the mean values of 2 or more groups or categories.
3.5.2
MULTIPLE REGRESSION ANALYSIS In two-variable regression there is only one independent variable, whereas in multiple regression there is more than one independent variable. The true model contains the random error term and the true coefficients for the input variables. Y = 0 + 1X +
Y 0 1 X = = = = = parameter intercept Slope coefficient independent variable error term
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3.5.3 COEFFICIENT CORRELATION, R Coefficient Correlation, R, is a quantity closely related to but conceptually very much different from r2. The quantity r, called the linear correlation coefficient, measures the strength and the direction of a linear relationship between two variables. The value of r is such that -1 r 1. The + and signs are used for the positive linear correlations and negative linear correlations. 3.5.4 COEFFICIENT DETERMINATION, R2 Coefficient Determination, R2, is a summary measure that telss how well the sample regression line fits the data. This R2 lies between 0 and 1, the closer it is to 1, the better is the fit. 3.5.5 T-TEST T-test is a test of significance is a procedure by which sample results are used to verify the truth or falsity of a null hypothesis. 3.5.6 If t-test > t-table = the variable is significant If t-test < t-table = the variable is not significant
F-TEST The F-test is used for comparisons of the components of the total deviation. For example, in one-way, or single-factor ANOVA, statistical significance is tested for by comparing the F test statistic.
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3.5.7 THE DURBINWATSON STATISTIC This is a test statistic used to detect the presence of autocorrelation in the residuals from a regression analysis. To indicate DurbinWatson statistic good or not, check the value of DurbinWatson. If the value below than 1.5 and greater than 2.5 show that have Durbin-Watson problem or autocorrelation. Good Durbin-Watson statistic value between 1.5 - 2.5.
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CHAPTER 4 : FINDINGS AND INTERPRETATION OF DATA
4.1
INTRODUCTION Based on this research, the researcher had interpreted the data and findings by using the tables and pie charts. All of these outputs come out from the data that the researcher had gathered from the respondents that work in the three different sectors which are public sector, private sector and selfemployed. The respondents come from Kota Bharu. In this chapter, analysis can be divided into two which are descriptive analysis and regression analysis. Descriptive include the demographic matters such as age, gender, personal income, level of education, race, marital status and others. Regression analysis is the explanation about the output which consist of ANOVA table, F-test, T-test and others which to see the correlation between variables.
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4.2 DESCRIPTIVE ANALYSIS PART A : DEMOGRAPHIC Respondents gender
gender
60
50
40
Percent
30
53.0% 47.0%
20
10
0 male female
gender
Figure 4.1: Respondents Gender
From the Figure 4.1, it shows the number of people that live in Kota Bharu. It shows that female respondents are higher with 53.0% than the male respondents with 47.0%. The gap between female respondents and male respondents is 6.0% which is due to the reason that many females rather than males.
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Respondents race
race
100
80
60
Percent
98.0%
40
20
0 malay
2.0%
others
race
Figure 4.2: Respondents Race
From the figure 4.2, respondents can be divided into 4 races, which Malays with 98.0%, followed by Chinese with 0.0%, third is Indians with 0.0% and the last proportion is others with 2.0%.
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Respondents Age
age
60
Percent
40
62.0%
20
28.0%
5.0%
4.0%
0 below 20 21-30 31-40 41-50
1.0%
51 above
age
Figure 4.3: Respondents Age
From the Figure 4.3, respondents age has been diversified into five groups. These are 20 years old and below, 21 to 30 years old, 31 to 40 years old, 41 to 50 years old, 51 and above. It shows that the majority of the respondents that participated in this study range from 21 to 30 years old groups. This age of group dominated 62.0%. It is followed by respondents who are aged around 21 to 30 years old with 28.0%, then 20 years old and below with 5.0%, then 41 to 50 years old with 4.0% and the last group is in the range 51 years old and above with percentage of 1.0%.
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Respondents Marital Satus
marital status
60
50
40
Percent
30
52.0% 48.0%
20
10
0 single married
marital status
Figure 4.4: Respondents Marital status
From the figure 4.4, respondents can be divided into 2 status of marriage, which single and marriage. The bar chart shows that single with 52.0%, followed by married with 48.0%.
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Respondents Level of Education
level of education
50
40
30
Percent
48.0%
20
27.0% 24.0%
10
0 spm/stpm diploma bachelor
1.0%
postgraduate
education
Figure 4.5: Respondents Level of Education
Figure 4.5 shows the respondents education level which is divided by five gropus SPM/STPM, Diploma, Bachelor, Postgraduate and others . The majority of the respondents are Bachelor with 48.0%, then Diploma holders with 48.0%, followed by SPM/STPM holders 24.0%, then postgraduate 1.0% and the minority group is others with 0.0%. Figure 4.2.1.6 shows the respondents education level which is divided by four gropus SPM, STPM, Diploma and Degree. The majority of the respondents are Degree holders with 35.9%, then SPM holders with 35.2%, followed by Diploma holders 15.2% and the minority group is STPM holders with 13.7%.
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Respondents Working Sector
working sector
60
50
40
Percent
30
60.0%
20
29.0%
10
8.0% 3.0%
0 public private self-employed unemployed
working sector
Figure 4.6: Respondents Working Sector
From figure 4.6, respondent have been diversified into four groups which are public sector, private sector, self-employed and unemployed. It shows that majority of the respondent are from the public sector which is 60.0%, followed by respondents from unemployed 29.0%, then self-employed 8.0% and the last group of respondents from private sector 3.0%.
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Respondents Personal income
Personal Income
40
30
Percent
20
34.0%
29.0%
10
18.0% 18.0%
0 below RM1000
1.0%
RM1001-RM2000 RM2001-RM3000 RM3001-RM4000 RM4001-RM5000
personal income
Figure 4.7: Respondents Personal income
Figures 4.7, represents the result of descriptive statistic and percentage of the respondents income level. It shows that there are 34 respondents who earned RM 1000 and below per month with 34.0 %. This is followed by 29 of the respondents who earned an income ranging from RM 1001 to RM 2000 with 29.0 %. Then 18 respondents for both range of income between RM 2001 and RM 3000 and income between RM 3001 and RM4000 with the percentage of both income level is 18.0%. Last is only one person who is income in range of RM4001-RM5000. Page 37
PART B : PUBLIC AWARENESS CROSSTAB Public Awareness Towards Variables GENDER
No. 1. 2. 3. 4. 5. QUESTION Do you concern about your personal financial planning? Do you think, monthly budgets are necessary? Do you always make a monthly personal financial planning budget? Do you follow your monthly budget? A person makes expenditure in everyday. Do you often consider whether the real necessity before you make a purchase in your expenditure? Do you think electronic payments (e.g. credit cards, debit cards) encourage you to spend more? Do you make financial planning for the future? MALE YES 45 45 41 39 37 NO 2 2 6 8 10 FEMALE YES NO 49 4 53 0 44 9 31 41 22 12
6. 7.
24 43
23 4
33 44
20 9
8. a) b) c) d)
How much your expenditure per month? Less RM300 RM301-RM600 RM601-RM900 RM901 and above
MALE 7 15 12 13
FEMALE 25 17 6 5
9. 10. a) b) c) d) e) 11. a) b) c) d) 12. a) b) c) d) e) 13. a) b) c) d)
Do Have Made An Investment Where do you invest your money? Golds Properties Unit Trusts Mutual Funds Tabung Haji How much do you invest your money per year? Less than RM300 RM301-RM600 RM601-RM900 RM901 and above I start make investment from..... 10 yrs old and below 11-20 yrs old 21-30 yrs old 31-40 yrs old 41 yrs old and above What are the factors that influence your investment? Spending Pattern Attitude Awareness Parental Guidance
MALE YES NO 40 7 3 2 26 2 6 MALE 6 12 12 9 MALE 4 8 22 4 1 MALE 9 4 22 4
FEMALE YES NO 34 19 2 0 21 3 9 FEMALE 18 8 4 5 FEMALE 4 12 13 1 5 FEMALE 2 1 23 9
Table 4.1: Respondents Public Awareness towards Gender
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The table 4.1 shows that correlation between public awareness with gender. From the table female are more concern about the financial planning management, so they think budgets are necessary. Overall female are more aware about the knowledge of personal financial planning. In term of investment planning, male are dominant to make investment planning. AGE
No. 1. 2. 3. 4. 5. QUESTION Do you concern about your personal financial planning? Do you think, monthly budgets are necessary? Do you always make a monthly personal financial planning budget? Do you follow your monthly budget? A person makes expenditure in everyday. Do you often consider whether the real necessity before you make a purchase in your expenditure? Do you think electronic payments (e.g. credit cards, debit cards) encourage you to spend more? Do you make financial planning for the future? TEENAGER YES NO ADULT YES NO 85 0 94 81 68 74 1 14 27 21
5 4 4 2 4 3 5
0 1 1 3 1 2 0
6. 7.
54 82
41 13
8. a) b) c) d)
How much your expenditure per month? Less RM300 RM301-RM600 RM601-RM900 RM901 and above
TEENAGER
2 3 0 0
ADULT 30 29 18 18
9. 10. a) b) c) d) e)
Do Have Made An Investment Where do you invest your money? Golds Properties Unit Trusts Mutual Funds Tabung Haji
TEENAGER YES NO 4 1
ADULT YES NO 70 25 5 2 45 5 13
0 0 2 0 2
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11. a) b) c) d) 12. a) b) c) d) e) 13. a) b) c) d) How much do you invest your money per year? Less than RM300 RM301-RM600 RM601-RM900 RM901 and above I start make investment from..... 10 yrs old and below 11-20 yrs old 21-30 yrs old 31-40 yrs old 41 yrs old and above What are the factors that influence your investment? Spending Pattern Attitude Awareness Parental Guidance TEENAGER ADULT 20 20 16 14 ADULT 8 19 32 5 6 ADULT 11 5 42 12
4 0 0 0
TEENAGER
0 1 3 0 0
TEENAGER
0 0 3 1
Table 4.2: Respondents Public Awareness towards Age
Table.4.2 shows that correlation between age and respondents public awareness. Teenager are classify as below of 20 years old where adult is classify 21 and above. Most of adult knows the knowledge about financial planning and the benefit of that. They can manage well when their age at 20 and above. In term of investment most adult start their investment at 20 years old and above. it is because of their awareness themselves. INCOME
No. QUESTION LOW INCOME YES NO HIGH INCOME YES NO 64 2 64 61 52 36 2 5 14 30
1. 2. 3. 4. 5.
6. 7.
Do you concern about your personal financial planning? Do you think, monthly budgets are necessary? Do you always make a monthly personal financial planning budget? Do you follow your monthly budget? A person makes expenditure in everyday. Do you often consider whether the real necessity before you make a purchase in your expenditure? Do you think electronic payments (e.g. credit cards, debit cards) encourage you to spend more? Do you make financial planning for the future?
30 34 24 13 26 21 26
4 0 10 21 8 13 8
36 61
30 5
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8. a) b) c) d) How much your expenditure per month? Less RM300 RM301-RM600 RM601-RM900 RM901 and above LOW INCOME HIGH INCOME 13 17 18 18
19 15 0 0
LOW INCOME YES NO 21 13
9. 10. a) b) c) d) e)
Do Have Made An Investment Where do you invest your money? Golds Properties Unit Trusts Mutual Funds Tabung Haji
HIGH INCOME YES NO 53 14 3 2 32 5 10
2 0 15 0 5
LOW INCOME
11. a) b) c) d) 12. a) b) c) d) e) 13. a) b) c) d)
How much do you invest your money per year? Less than RM300 RM301-RM600 RM601-RM900 RM901 and above I start make investment from..... 10 yrs old and below 11-20 yrs old 21-30 yrs old 31-40 yrs old 41 yrs old and above What are the factors that influence your investment? Spending Pattern Attitude Awareness Parental Guidance
10 6 4 2
LOW INCOME
4 8 8 1 1
LOW INCOME
1 1 13 7
HIGH INCOME 14 14 12 12 HIGH INCOME 4 12 27 4 5 HIGH INCOME 10 4 32 6
Table 4.3: Respondents Public Awareness towards Income
Table 4.3 shows that correlation of income and public awareness among respondents. Below than RM1000 consider as low income where RM1001 and above consider as high income. Mostly high income aremore concern about the personal financial planning. They make investment more in unit trust followed by tabung haji.
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LEVEL OF EDUCATION
No. QUESTION LOW LEVEL EDUCATION YES NO 22 2 23 20 17 19 1 4 7 5 HIGH LEVEL EDUCATION YES NO 72 4 75 65 53 59 1 11 23 17
1. 2. 3. 4. 5.
6.
7.
Do you concern about your personal financial planning? Do you think, monthly budgets are necessary? Do you always make a monthly personal financial planning budget? Do you follow your monthly budget? A person makes expenditure in everyday. Do you often consider whether the real necessity before you make a purchase in your expenditure? Do you think electronic payments (e.g. credit cards, debit cards) encourage you to spend more? Do you make financial planning for the future?
12
12
45
31
21
66
10
8.
How much your expenditure per month?
LOW LEVEL EDUCATION
a) b) c) d)
Less RM300 RM301-RM600 RM601-RM900 RM901 and above
4 7 5 8
HIGH LEVEL EDUCATION 28 25 13 10
LOW LEVEL EDUCATION 9. Do Have Made An Investment YES 18 10. a) b) c) d) e) Where do you invest your money? Golds Properties Unit Trusts Mutual Funds Tabung Haji NO 6
HIGH LEVEL EDUCATION YES NO 56 20 5 1 35 4 11
0 1 12 1 4
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11. a) b) c) d) 12.
How much do you invest your money per year? Less than RM300 RM301-RM600 RM601-RM900 RM901 and above I start make investment from.....
LOW LEVEL EDUCATION
6 6 4 2
LOW LEVEL EDUCATION
a) b) c) d) e) 13.
10 yrs old and below 11-20 yrs old 21-30 yrs old 31-40 yrs old 41 yrs old and above What are the factors that influence your investment? Spending Pattern Attitude Awareness Parental Guidance
2 3 8 5 0
LOW LEVEL EDUCATION
a) b) c) d)
2 1 13 2
HIGH LEVEL EDUCATION 18 14 12 12 HIGH LEVEL EDUCATION 6 17 27 0 6 HIGH LEVEL EDUCATION 9 4 32 11
Table 4.4: Respondents Public Awareness towards Education Level
Table 4.4 shows that the correlation between public awareness towards education level. More high level of their education tend them to make better investment. It is because the knowledge that get is useful for them to manage their personal financial planning. Financial management will become advantage for the respondents to manage their money and debt wisely so that the bankruptcy among youth will reduce effectively.
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PART C : PUBLIC OPINION NO. C21. C22. C23. C24. C25. C26. QUESTIONS I know about personal financial planning management. I know about the important of personal financial planning management. Investment planning should start from early of age. Females have often been found to posses less financial knowledge and interests compared to males. High monthly personal income tends people less in personal financial planning. High level of education tends people better in their personal financial planning. MEAN STANDARD DEVIATION 0.66750 0.60728 0.77355 1.19494
2.8300 2.9300 3.2600 1.9200
2.4700 2.7900
1.04886 0.93523
Table 4.5: Respondents Public Opinion Strongly disagree Disagree Moderate Agree Strongly Agree
The table shows that respondents know about personal financial planning although not too much, the mean close to moderate opinion. Respondents also close moderate opinion agrees that financial planning should start from early of age. Moreover, respondents disagree that female have been found to posses less financial knowledge and interest compared male. Then, respondents disagree that high monthly personal income will tends people less in personal financial planning. Most respondent also disagree that high level of education tends people better in their personal financial planning. Overall means that theres all respondents opinion give figure almost of 3 which mean moderate opinion.
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4.3 REGRESSION ANALYSIS In regression analysis the dependent variable, or regressand, is frequently influenced not only by ratio scale variables for example income, output, prices, costs, but also variables that are essentially qualitative or nominal scale such as sex, race , colour, religion, nationality. One way could quantify such attributes is by constructing artificial variables that take on values of 1 or 0, 1 indicating the presence of that attribute and 0 indicating the absence of that attribute. Dummy variable are variable that assume 0 and 1 value to classify data into categories such as male and female, age, gender, income, education and others.
Model Equation :
Y = 0 + 1D1- 2D2+ 3D3- 4D4+ 5X5+

PFP= 0+ 1AGE-2GENDER+3INCOME-4EDUCATION+5INVESTMENT PLANNING+
PFP = 0.315+ 0.431 (AGE) - 0.134 (GENDER) + 0.458 (INCOME) 0.174 (EDUCATION) + 0.213 (INVESTMENT PLANNING) +
Where indicated: PFP AGE =Personal Financial Planning D1 = 0- teenagers D1 = 1- adults GENDER D2 = 0-male D2 = 1-female INCOME D3= 0-Low level income D3 = 1-High level income EDUCATION D4= 0-Low level of education D4 = 1-High level of education
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INTERPRETATION: a) Age = When 1% increase in age, will effect to personal financial planning
management increase by 0.413% b) Gender= When 1 person increase in gender, will effect to personal financial planning management decrease by 0.134% c) Income = When RM1 increase in income, will effect to personal financial planning management increase by 0.458% d) Education=When 1% increase in education, will effect to personal financial planning management decrease by 0.174% e) Investment planning = When 1% increase in investment planning, will effect to personal financial planning management increase by 0.213%
4.4
TEST SIGNIFINCANCE In test significance procedure, one develops a test statistic and examines its sampling distribution under the null hypothesis. The test statistic usually follows a well-defined probability distribution such as the normal, t, F, or chisquare. Once a test statistic (t-statistic) is computed from the data at hand, its p value can be easily obtained. The p value gives the exact probability of obtaining the estimated test statistic under the null hypothesis. If p value is small, one can reject the null hypothesis, but if it is large one may not reject it. 4.4.1 The t-test T-test is a test of significance is a procedure by which sample results are used to verify the truth or falsity of a null hypothesis. If t-test > t-table = the variable is significant If t-test < t-table = the variable is not significant
t-test = n-k-1 df=94 t-table at 0.05%= 1.658 Page 46
NO. 1.
VARIABLES CONSTANT (PERSONAL FINANCIAL PLANNING)
Beta/(t-test) 0.315
2. 3. 4. 5. 6.
AGE GENDER PERSONAL INCOME LEVEL OF EDUCATION B16: INVESTMENT PLANNING
0.431 (3.053)* -0.134 (-0.687) 0.458 (5.060)* -0.174 (-1.706)* 0.213 (1.037)
*( ) t-test significant at 0.05%, Reject H0

Table 4.6 : T-test Result
4.4.2
The F-test F-test is used for comparisons of the components of the total deviation. For example, in one-way, or single-factor ANOVA, statistical significance is tested for by comparing the F test statistic. F-test =15.365 F= R2 / (k-1) (1-R2)/9n-k)
F-table = 8.62 at 0.05 level of significance F-test > F-table 15.365 > 8.62 significant for the overall model Which means 15.37% highly significant. All five independent variables (age, gender, income, personal income, level education and investment planning) highly become factor for the dependent variable, personal financial planning management.
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4.4.3 Coefficient Correlation, R, = 0.671 Which means 67.1% of the independent variables and dependent variable have correlation.
4.4.4
Coefficient of Determination, R2 = 0.450 45% of the changes in personal financial planning management can be explained by the change in independent variables (age, gender, income, personal income, level education and investment planning). The other 55% cannot be explained, maybe omitted some other important variables.
4.5
Autocorrelation Detection It is indicated by a sequential pattern as the error term which means some other variables are changing systematically and influencing the dependent variable. A standard test for identifying autocorrelation is Durbin Watson test. This is a test statistic used to detect the presence of autocorrelation in the residuals from a regression analysis. To indicate DurbinWatson statistic good or not, check the value of DurbinWatson. If the value below than 1.5 and greater than 2.5 show that have Durbin-Watson problem or
autocorrelation. Good Durbin-Watson statistic value between 1.5- 2.5. From regression result: K=5, N=100 dL = 1.571 dU = 1.780 d = 1.853
Page 48
Reject H0 Evidence positive correlation of auto-
Zone
of
d = 1.853
Zone
of Reject H0* Evidence negative autocorrelation of
indecision
indecision
Do not reject H0 or H0* or both
dL 1.571
dU 1.780
4 - dU 0.220
4 dL 0.429
Based on the table, the Durbin Watson value is 1.853 located at column do not reject H0 or H0* or both. It is means there is no autocorrelation problem.
Page 49
CHAPTER 5 : CONCLUSION AND RECOMMENDATION 5.1 INTRODUCTION The researcher has concluded from the whole study on the findings and the analysis of the data from the study undertaken. Through the interpretation and finding analysis from the questionnaires, researcher is able to prove the problem statement thus reaching the research objectives thoroughly.
5.2
CONCLUSION Personal financial planning is the important thing that people need to do in their life in order to life good in the future soon. Good plan and best strategies are needs to apply for the successful achievement goals. In order to achieve the goals, research about the behaviour and factors that influence the personal finance planning management is important to the people. Basic knowledge about the personal financial planning is needed. Moreover, people need to know what is the main problem occur in the personal financial planning by state the problem statement. Besides, create the theoretical framework what the factor that might influence the personal financial planning. Make the hypothesis which predict either the factors in an influence or not the personal financial planning management. In order to finished the thesis, many barriers and limitation happened but the strengths and needs to finished the thesis as benefits to others become overcome of the barriers.
Literature review are include in research as a prove for the theoretical framework establishment of the topic or subject area. It also to define key terms, definitions and terminology. It is important to the others researcher to make the references and also as a prove of the statement. Page 50
In this proposal also indicate the research methodology which include sampling data collection, sample and sampling design, data analysis, and regression technique which help the researcher to collect the data and to interpret that effectively and efficiently. Data analysis also include the t-test, ftest and Durbin Watson test to detect whether there are significance or not and also for autocorrelation problem.
Lastly, findings is the important part which is the result of the investigation. In determining the factor influencing the personal finance management, based on the hypothesis testing, can conclude that age, personal income and level of education is the factors that determine the factors that influencing personal finance management at Kota Bharu. Gender and investment planning is not the factors that determines the factors that influencing personal finance management at Kota Bharu
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5.2 RECOMMENDATION One of the important parts in the research is recommendation and the researcher should follow it up by giving relevant solution upon the study. According to the research, there are several recommendations that can be forwarded to increase the level of awareness about personal finance management. 5.2.1: Employees Despite the growing products of personal finance in this several years but there are many people who are still unaware about personal finance management. Usually employees always consume financial product such as loans, retirement, investment, credit card and others. They can consume all the products but the most important is they need to manage it wisely. If they do not know how to manage it, they can be charge with personal bankruptcy. People have potential to charged with bankruptcy if they cannot pay back their loan or not affordable to pay their credit card bill. Employees also need to have retirement plan to make sure that they can survive in the future in terms of financial after they retired. So to make sure that they can manage their personal finance, they need to get advice from the professional advisor or from the financial center such as AKPK (Agensi Kaunseling Pengurusan Kredit) and support government rules that indicate to limit two credit card per person. It is a best action taken in order to avoid bankruptcy among youth today at Malaysia..
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5.2.2: Future research Since the importance of having both personal financial literacy skills and knowledge is expected to grow, financial literacy will continue to be a prominent research topic. This study has identified factors influence personal finance planning management and resulted that age, level of education and personal income influence the determinant factors towards Personal Finance Management. The level of awareness towards personal finance management are different between people that work in different working sectors and also different between the people that live in urban and rural area.
For future research, it is suggested that the future researcher can broader the area of study by making a study in different states in Malaysia and make a comparison which states are more aware about personal finance management. Future research can also study by using different independent variables that factors may influence towards personal finance management. There are many factors that may influence peoples personal finance management such as family background. Family background or parents is one of the important variable that influence the way people manage their personal finance because family and parents are shape our perception about the importance of managing personal finance and also shape us on how to spend our money.
Because financial literacy has become increasingly importance for the economic wellbeing of the nations future, it is important that it can be explicitly linked with financial behaviour, and hence financial Page 53
success and sustainability. No financial literacy study has yet achieved this. Another area of research could then focus on the components of financial literacy and determine which are the most and least critical to financial success and sustainability.
Several studies revealed that personal financial skills and knowledge are acquired mostly through trial and error, but no research to date has actually attempted to investigate what types of financial experiences and characteristics have the most influence on an individuals personal financial literacy or competence. Hence another area of research could focus on gathering extensive details of financial experience and characteristics, which may prove to be important influential variables in modelling financial literacy among general populations.
Finally, further research could focus on the actual measurement of financial literacy. Extensive research and testing is needed to determine consistency and more realistic benchmarks for the ongoing measurement of financial literacy.
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5.2.3 Public awareness campaigns While many financial education materials exist, consumer demand for financial education is not high among the general population. This may be because of people dont know what they dont know and are unaware of how their lack of knowledge may be costing them money or opportunities. Public awareness campaigns could be one solution to this. These types of campaigns could teach public how to manage their personal finance. Nowadays there are not too much campaign or financial centre that public can get advice about the personal finance management.
Page 55
Bibliography
BOOKS AND JOURNALS: Ade`le Gritten, (2011), New insights into consumer confidence in financial services, International Journal of Bank Marketing, Vol. 29, No. 2, 2011, pp. 90-106. Altfest, L. (2007), Personal Financial Planning, McGraw-Hill, New York. Chen, Haiyang,(2002), Gender Differences in Personal Financial Literacy Among College Students, Financial Services Review. David S. Murphy and Scott Yetmar,(2010) Personal financial planning attitudes: a preliminary study of graduate students ,Management Research View, Vol. 33 No. 8, pp 811-817. Gitman, L.J and Joehnk, M.D (2005), Personal Financial Planning , Thomson SouthWestern, New York, NY. Gujerati Damodar N., Porter Dawn C.(2009), Basic Econometrics, McGraw Hill pp 278-279. Jeff Madura (2007), Personal Finance,Pearson Education. Inc. Joyce K.H. Nga, Lisa H.L. Yong and Rathakrishnan D. Sellapan,(2010) A study of Financial Awareness among youths, Emerald Group Publishing Limited, Vol. 11 No. 4, pp. 277-290. Ming Ming Lai And Wei Khong, (2009), An Empirical Analysis Of Personal Financial Planning In An Emerging Economy, European Journal of Economics, Finance and Administrative Sciences, ISSN 1450-2275 Issue 16 (2009). Petersen H. Craig, Lewis, W. Cris, Gurmit Kaur, and Ng Phaik Lian, (2010), Managerial Economics Essential/Fundamental,Pearson Hall. Tuan Hock Ng, Woan Ying Tay, Nya Ling Tan, and Ying San Lim (2011), Influence of Investment Experience and Demographic Factors on Retirement Planning Intention , International Journal of Business and Management, Vol 6, No. 2 February 2011. INTERNET SOURCES : Methodology retrieved April 6,2011, from http://en.wikipedia.org/wiki/Methodology Personal Financial retrieved January 25, 2011, from http://en.wikipedia.org/wiki/Personal_finance Personal Finance retrieved January 25,2011, from http://www.managementhelp.org/prsn_wll/finance.htm
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QUESTIONNAIRE
FACTORS THAT INFLUENCE PERSONAL FINANCIAL PLANNING MANAGEMENT: A STUDY AT KOTA BHARU Dear respondents, I, Arfawaty Binti Razali, student of BBA (Hons) at present conducting a research on Factors That Influence Personal Financial Planning Management: A Study At Kota Bharu. This research is conducted as part of subject fulfilment for my final year. I would appreciate it if you would complete these questionnaires. All information and respondents identity will be kept strictly confidential and will be use for academic purpose only. Thank you very much for your time and cooperation. Saya, Arfawaty Binti Razali,pelajar tahun akhir Ijazah Sarjana Muda Pengurusan Perniagaan (kepujian) Kewangan sedang membuat satu kajian berkenaan dengan Faktor-Faktor Yang Mempengaruhi Amalan Pengurusan Kewangan Peribadi : Kajian Di Kota Bharu. Saya amat menghargai kerjasama yang diberikan kerana sudi meluangkan masa untuk menjawab soalan-soalan tentang kaji selidik berikut. Segala maklumat adalah sulit dan akan digunakan untuk tujuan akademik sahaja. Terima kasih di atas kerjasama anda.
Thank you/ Terima Kasih
Page 57
PART A : DEMOGRAPHIC
Respondent background 1. Gender Male 2. Race Malay Indian 3. Age 20 and below 21 - 30 31 - 40 4. Marital status Single 5. Level of education SPM/STPM Diploma Bachelor Postgraduate Others 6. Working sector Public sector Private sector
Female
Chinese Others
41 - 50 51 and above
Married
Self-employed Unemployed
7. Personal income RM 1000 and below RM 1001 RM 2000 RM 2001 RM 3000 RM 3001 RM 4000 RM 4001 RM 5000 RM 5001 and above
Page 58
PART B : PUBLIC AWARENESS
8. Do you concern about your personal financial planning? Yes No
9. Do you think, monthly budgets are necessary? Yes No
10. Do you always make a monthly personal financial planning budget? Yes No
11. Do you follow your monthly budget? Yes No
12. A person makes expenditure in everyday. Do you often consider whether the real necessity before you make a purchase in your expenditure? Yes No
13. Do you think electronic payments (e.g. credit cards, debit cards) encourage you to spend more? Yes No
14. Do you make financial planning for the future? Yes 15. How much your expenditure per month? Less than RM300 RM301-RM600 RM601-RM900 RM901 and above No
Page 59
16. Do you have made an investment? Yes No
(If your answer is yes, please continue the following questions). 17. Where do you invest your money? Golds Properties Unit Trust (ASB, ASN, ASW and others) Mutual Funds Tabung Haji Others(please identify)
18. How much do you invest your money per year? Less than RM300 RM301-RM600 RM601-RM900 RM901 and above
19. I start make investment from....... 10 years old and below 11-20 years old 21-30 years old 31-40 years old 41 years old and above
20. What are the factors that influence your investment? Spending pattern Attitude Awareness Parental guidance
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PART C: PUBLIC OPINION
Please tick () your answer according to the scale outline below:
Strongly disagree
Disagree
Moderate
Agree
Strongly Agree
No. 21. 22. 23.
Questions I know about personal financial planning management. I know about the important of personal financial planning management. Investment planning should start from early of age. Females have often been found to posses less financial knowledge and interests compared to males. High monthly personal income tends people less in personal financial planning. High level of education tends people better in their personal financial planning.
24.
25.
26.
Thank you for your cooperation.
Page 61

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Factors That Influencing Personal Financial Planning Management: A Study At Kota Bharu

CHAPTER 1 : INTRODUCTION 1.1 BACKGROUND OF STUDY

PERSONAL FINANCIAL PLANNING MANAGEMENT

country risk, economic risk, mortgage risk, liquidity risk

Figure 4.1: Respondents Gender

0 below 20 21-30 31-40 41-50

Figure 4.3: Respondents Age

0 spm/stpm diploma bachelor

Figure 4.5: Respondents Level of Education

0 public private self-employed unemployed

RM1001-RM2000 RM2001-RM3000 RM3001-RM4000 RM4001-RM5000

9. 10. a) b) c) d) e) 11. a) b) c) d) 12. a) b) c) d) e) 13. a) b) c) d)

MALE YES NO 40 7 3 2 26 2 6 MALE 6 12 12 9 MALE 4 8 22 4 1 MALE 9 4 22 4

FEMALE YES NO 34 19 2 0 21 3 9 FEMALE 18 8 4 5 FEMALE 4 12 13 1 5 FEMALE 2 1 23 9

Table 4.1: Respondents Public Awareness towards Gender

Table 4.2: Respondents Public Awareness towards Age

HIGH INCOME YES NO 53 14 3 2 32 5 10

11. a) b) c) d) 12. a) b) c) d) e) 13. a) b) c) d)

HIGH INCOME 14 14 12 12 HIGH INCOME 4 12 27 4 5 HIGH INCOME 10 4 32 6

Table 4.3: Respondents Public Awareness towards Income

How much your expenditure per month?

LOW LEVEL EDUCATION

Less RM300 RM301-RM600 RM601-RM900 RM901 and above

HIGH LEVEL EDUCATION 28 25 13 10

HIGH LEVEL EDUCATION YES NO 56 20 5 1 35 4 11

LOW LEVEL EDUCATION

HIGH LEVEL EDUCATION 18 14 12 12 HIGH LEVEL EDUCATION 6 17 27 0 6 HIGH LEVEL EDUCATION 9 4 32 11

Table 4.4: Respondents Public Awareness towards Education Level

2.8300 2.9300 3.2600 1.9200

Y = 0 + 1D1- 2D2+ 3D3- 4D4+ 5X5+

t-test = n-k-1 df=94 t-table at 0.05%= 1.658 Page 46

VARIABLES CONSTANT (PERSONAL FINANCIAL PLANNING)

AGE GENDER PERSONAL INCOME LEVEL OF EDUCATION B16: INVESTMENT PLANNING

*( ) t-test significant at 0.05%, Reject H0

Reject H0 Evidence positive correlation of auto-

of Reject H0* Evidence negative autocorrelation of

Do not reject H0 or H0* or both

Thank you/ Terima Kasih

8. Do you concern about your personal financial planning? Yes No

9. Do you think, monthly budgets are necessary? Yes No

11. Do you follow your monthly budget? Yes No

16. Do you have made an investment? Yes No

No. 21. 22. 23.

Thank you for your cooperation.

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