Executive of summary

This study was carried out to determine about the problems regarding saving nowadays

among UnisZA student. A total of respondent is 30, male and female student of Faculty of

Business Management and Accounting (FPPP). A set of questionnaire was designed to gain

primary data from the respondents about problem’s student to making a saving. The overall

finding found student interested to making a savings and at the same time they hard to do so

cause of lack information. In conclusion, student must have awareness about the importance

of savings for their future. It shows that almost all the first year degree students are interested

in savings. However there are certain circumstances less of these students spending their

money for their own savings. Moreover, most of the students agree that it is hard to make a

savings due to same reasons which is not enough money for their own expenses.

Acknowledgment

We wish to thank all who have helped and supported us in doing this project research. First of

all we want to thank to our friends that give such a helping hand. We want to thank our

parents, where they help us in financial support to make our research at ease. Moreover, to Dr

Ahmad Azrin bin Adnan, where always guide us in doing this report until the end.

The experience gained in doing this research will enable us to go the extra miles in the future

research regarding our profession in someday.

1 | P a g e

Background

The global economics increase in a fast growing trend in recent years. Plus with the financial

management of the people varies around the world and the most common one is saving.

Saving can be defined as the part of an individual’s income that is not spent. Over the past

decades, saving plays an important role in the process of economic growth and development.

Saving behaviour can be defined as the act or manner of an individual in reducing

expenditures or deferring consumptions. This is because one’s saving behaviour varies when

he or she has different level of financial knowledge. Besides, parent also plays an important

role in affecting their children in the conduct of saving. Furthermore, peer influence can have

a great impact on saving behaviour of university students due to their close relationship other

than parents. Lastly, no one can affect the others. In other words, selfcontrol plays an

important role for university students to practice saving. (Chai, Chia, Fong, Lew, Tan, 2012).

Nowdays children are most like to make an savings than young people.because there is no

doubt that young people from average in 11 to 16 years are economically very active, many

with part-time jobs and the majority with bank accounts albeit in their parent's name. While

the vast majority of their regular income comes from parental allowances, children in this age

group still received significant gifts and many had money saved from other ways. Most

borrowed, lent and saved money, andwere clearly very active economic citizens; especially

with regard to banking ( A. Furnham,1999)

As expected financial literacy was regarding with better savings behavior and financial

literacy was also negatively related to financial problems among Malaysian college students.

Student with greater savings behavior were also less likely to have financial problems. In

addition, students who had more and earlier childhood consumer experience reported more

savings behavior but they also reported more financial problems. Thus there are three

indicators of financial knowledge, financial literacy clearly had the most positive influence for

financial management because it had the desired effects for both savings and financial

problems. Financial literacy may also have an indirect effect on financial problems because it

is regarding with more savings while savings decreases financial problems. (Mohamad Fazli,

Maurice, 2010)

2 | P a g e

Problem statement

The problem statement of the report is does students of second year degree in the Faculty of

Business Management and Accountancy (FPPP) at University Of Sultan Zainal Abidin

(UniSZA) having a problems regarding savings or not?

Majority of student make a loan with PTPTN and only a minority have a scholarships and

other loan to support their financial. In addition, the money that provide to them are only

enough for their expenses for 4 month and sometimes it can be not enough. Plus, they do not

see the requirement of saving while study. For example, they got around RM200 for a month.

Then they are not just only need to use the money for food but they also need for other things

that may be important to them.

Many students who can spent the money well and enough for a month but they somehow

missed the important point that when they need to save and how much to save. They just

spent the money without a proper schedule, lack of information on how to savings and how

much do need for savings.

Even they are know how to spent, but some of them will do not know how making a saving

during study. Their mind set always set to enjoy while study and at the end of semester, all the

money have being spent without proper way.

Our research is also to trying to help student to make a savings as a habit. We will try to get a

best way to making a savings with enough money to spend. In other way, we will provide a

proper way for making savings. We are trying to change it and provide them a ways to make

savings as their new habit.

3 | P a g e

Objectives

The objectives of our investigation are:

1) To get know the several sources of money by student while studying.

Student are making loan, get a scholarship or even from parents for their source of finance

while study. But there is also another way for them to get additional money for their

study.

2) To investigate how do the student managing in their expense.

On this objective, we try to get know how they manage their expense. Since that they will

get the lump sum money on every beginning semester. They have the sum of money for

the use until the end of the semester.

3) To investigate the most stopping students from saving money.

This is the main objective of our investigation. To get know what the main problem is

facing by student regarding savings while study. Of course there are to many problem but

we are searching the most problem that stopping them from saving.

4) To provide information in way to helps them for savings.

After we are done doing our investigation, we will proceed to this step in case to help

them for do a savings for future. We hope the information given will help them for do

managing their expense and at the same time they will do a savings.

5)

4 | P a g e

Limitation of report

Our main topic is problem in savings. But we are focus on saving since we have seen too

much problems regarding making own savings among UniSZA student.

The research is focusing to university’s student since that the most problems in savings rfrom

our first observation. Besides looking on how much they gain from a loan or scholarship

given, we are also look on how much they will spent on the money given and at the end of it,

we will provide a ways to make a proper spent for their expense and also the proper way to

make a savings. Since that we are near to the UniSZA (university Sultan Zainal Abidin),

campus Gong Badak, Kuala Terengganu and we take them as our research.

After having discussed, we want to narrow down our scope and agreed to more focusing to

Faculty Business Administration only. This faculty consists of three courses which is

accounting course, Islamic finance course, and Risk Management and Takaful course. We are

more focusing on them because of they are need the ability to master in arranging their

financial for their profession and life. So, we take them to answer the questionnaire and to be

parts of our research. We will spread 30 questionnaires to them, by using observation, and

maybe we have a small interview to some people.

In the limitation of time, we are trying to finish up our research within 3 month before our

final exam. The short time will be used as well to complete our research about the problem

facing by student in savings.

5 | P a g e

Glossary

1. FPPP : Faculty of Business Management and Accountancy

2. UniSZA : University of Sultan Zainal Abidin

3. STPM : Sijil Tinggi Pelajaran Malaysia

4. STAM : Sijil Tinggi Agama Malaysia

5. BBAIF : Bachelor of Islamic Finance

6. BBAC : Bachelor of Accounting

7. BBARIMTAC : Bachelor of Risk Management and Takaful

8. Savings account : A deposit account held at a bank or other financial institution

that provides principal security and a modest interest rate. Depending on the specific

type of savings account, the account holder may not be able to write checks from the

account (without incurring extra fees or expenses) and the account is likely to have a

limited number of free transfers/transactions. Savings account funds are considered

one of the most liquid investments outside of demand accounts and cash. In contrast to

savings accounts, checking accounts allow you to write checks and use electronic

debit to access your funds inside the account. Savings accounts are generally for

money that you don't intend to use for daily expenses. To open a savings account,

simply go down to your local bank with proper identification and ask to open an

account.

9. Interests : a feeling of wanting to know more about something.

10. Abilities : Less frequent, is used to refer to someone’s skills or talents,

and is never followed by an infinitive

6 | P a g e

Methodology

Methodology is a method that assist in the research to collect all the data needed analyses the

phases of the research. It is also the method to show the detail on how the researches were

conducted. There are 2 major approaches to gather information about a situation, person,

problem or phenomenon.

The data are recognized as:

Primary data

Secondary data

3.1 Subjects

The people that will be studied is the first year degree students from the Faculty of Business

Management and Accounting (FPPP).In this faculty, it has three courses that is Bachelor of

Accounting, Bachelor of Islamic Finance and Bachelor of Risk Management and Takaful.

3.2Instruments

The study of this research will be using questionnaires to gain the results where it is a primary

data. The questionnaire will be distributed among the first year students in FPPP.

3.2.1 Questionnaires

The questionnaires are divided into three parts. The first part is section 1 where it is aims to

gain information concerning the student’s background that is gender, races, religious, course

and their last qualification.

The second part is section 2, where it consists of five questions. This section is more focusing

to the sources of finance gain by student. The question is:

1) Do you apply PTPTN?

2) Is it PTPTN enough for you?

3) Where you get the balance of the money? (this question is based on the question no 2)

4) If NO, where do you get a source of your money? (this question is based on the

question no 1)

5) How much do you spent for a week (RM)?

7 | P a g e

The last section from the questioner is section 3. This section is focusing to the problems

regarding savings. The questions are:

1) Do you like savings?

2) How often do you withdraw your money in cash from your bank

3) Mostly as student, you expensed your money for what item?

4) Who influenced you towards waste activities? This question is open question. The

subject must write the answer in the space provided.

5) What is the most circumstance that stopping students from savings money?

8 | P a g e

Findings

SECTION 1

The number of respondent by courses and gender in UniSZA

The graph bar in figure 1 showed the gender from three courses in University of Sultan Zainal

Abidin that involve in the research. The blue color in the graph is representing for male

gender and purple color is representing for female. The vertical at the graph is the number of

student and horizontal is for course. There are 5 male and 5 Female from Islamic Finance

course. In accounting course and risk management & takaful course is not balance. For

accounting, they are 6 male and 4 female while 7 male and 3 female for risk management and

takaful course. The percent between male and female is 60 percent from male and 40 percent

from female.

In the research at figure 2, we found that all students in the three courses live in rural place

more than live in urban place. The vertical graph showed quantity of student that live in rural

9 | P a g e

FIGURE 1

FIGURE 2

is 22 people and horizontal at the graph showed the type of place that student live. The

percent over the place is 73.33 percent for rural place and 26.67 percent for urban place.

SECTION 2

The Total Students That Borrow from PTPTN and Those Not

Male Female02468

101214161820

Borrow from PTPTNOwn expenditure

The column chart in figure 1 shows that the all students supposed to borrow from the PTPTN.

The number of respondents are 19 males and 11 females, and there are no one that using their

own expenditure during their study in UniSZA. The students are chose from three different

courses of study that offered for degree level students in UniSZA; they are from Bachelor of

Business Administration (Islamic Finance), from Bachelor of Accountancy and from the

Bachelor of Risk Management and Takaful.

10 | P a g e

FIGURE 1

SECTION 3

WHO PREFER TO SAVE MONEY BETWEEN 3 COURSES?

From this graph in figure 1 above, the total of 30 students in UniSZA, we give the

questionnaire equal between the 3 program for RMT 10 questionnaire, BBAIF 10

questionnaire and for BBAC 10 questionnaire also. From students who like to save for RMT

is don’t have, for BBAIF is 2 students, for BBAC is 1 student. The students who didn’t like to

saving for RMT the population is 10 students, for BBAIF is 8 students and for BBAC is 9

students.

WHAT ITEMS STUDENTS PREFER TO SPEND THEIR MONEY?

From the above in figure 2 it shows that the percentage of students prefer to spend their

money in what items, the highest percentage for students to spend their money is for food and

drink is 30 students, for the vehicles items is 11 students, the reading for pets, cigarette,

clothes or apparel and computer accessories is didn’t have, for the daily need like soap,

clothes detergent and others is 27 students, for a students who spend their money for

11 | P a g e

FOOD &

DRINK

DAILY NEE

DS

ENTE

RTAINMEN

T

VEHICLES

CIGARETTE

CLOTH

ES/FO

OTWEA

R

SPORT E

QUIPMENT

PETS

COMPUTER ACCES

SORIES

LEARNING EQ

UIPMENT

0

10

20

30 30 27

311

0 0 1 0 0 1

NO

YES

0 1 2 3 4 5 6 7 8 9 10

RMTBBAIFBBAC

FIGURE 1

FIGURE 2

entertainment is 3 only, and the lowest reading for students to spend their money is for

learning and sport equipment is only 1 student only among three difference program.

WHO INFLUENCED YOU TOWARDS WASTE ACTIVITIES?

This is open question, so the answers are the opinion from the respondent. It could be anyone

but the most answer by respondent is from their own friends. There are 18 respondents answer

the same answer. The other opinion that we got is from them. 7 respondents are state the most

influenced came from them. However there are 3 respondents sate the influence came from

salesman. The other opinion that we have is came from their lover. 2 respondents are state on

that opinion. Last but not least, there is one respondent blaming lecturer as influenced towards

waste activities.

12 | P a g e

FACTORS THAT PREVENT THE UNISZA STUDENTS FROM SAVINGS THEIR

MONEY DURING THEIR STUDY

1% 1% 4%21%

19%26%

28%

Factors That Prevent the UniSZA Students from Saving Their Money During Their

Study

Lack of Information About Saving Do Not Have Any Financial PlanningGirlfiend/Boyfriend Influence Lazy to Deposit Money into AccountPeer Influence LifestyleOther Problems Did Not Aware About SavingMedium of Saving Money

The above pie chart in figure 3 shows the factors that prevent students from saving money

during their study in UniSZA. There are 9 factors provided for the respondents include the

other problems. The biggest factor is the other problems that represented by 23 students or 28

percentages of the pie chart allocation. The second factor is lifestyle, 21 students and they are

28 percentages of the pie chart. Next is Laziness to deposit money into the accounts, 17

students where represented by 21 percentages. Then, peer influence represented by 15 person

or 19 percentages. Girlfriend or boyfriend influences be the next factor that is 3 person or 4

percentages. The next two factors represented by a person, where a person represented by 1

percentage. The other two factors are do not aware about saving and medium of saving

money.

13 | P a g e

FIGURE 3

Conclusion

14 | P a g e

Recommendation

We are investigating about the problem of student in making savings while study in

University Of Sultan Zainal Abidin. From our research, the problems in saving among the

student are lack of information about saving, don't have any financial planning and also based

on their lifestyle. The influenced of student make waste activities is friends. Thus, the result

indicates that peer influence has an impact on individuals’ saving behaviour. From the

questionnaire, we need to get the best solution to encourage the student in saving.

Firstly, every student must have their financial table to ensure the budget under control.

With financial table, they can see where the money in and out. Students must able to manage

the money according to the importance of the use of the money.

Secondly, adopt a longitudinal research. The future research is suggested to conduct a

longitudinal research to observe the saving behavior of university students over time. This

would facilitate the researchers to gain valuable data which would provide a robust finding on

how each factor affecting the students saving behavior.

Then, the other way is to need to limit the amount of withdrawal. Therefore, money will

always be in control and stable. As a student, we always influenced with any advertising sale,

to avoid the influence of the advertising, we should be less a walk in a place that sells it.

15 | P a g e

References

1. Macmillan English Dictionary for Advanced Learners. Second Edition, (2007)

2. http://www.investopedia.com/search/default.aspx?q=savings

3. Clark, C., Woodley, J., & Lewis, F., (2011). The Gift of Reading in 2011, Children

and young people’s access to books and attitudes towards reading, 3

4. Chai, M, T., Chia, Y, K., Fong, S, N., Lew, W, C., Tan, C, T., (2012). Determinants

of saving behaviuor among the university students in Malaysia, xvi

5. Mohamad Fazli Sabri., Maurice, M., (2010). Savings Behavior and Financial

Problems Among College Students: The Role of Financial Literacy in Malaysia, 108

6. Adrian Furnham., (1999). The saving and spending habits of young people, Journal

of Economic Psychology 20 (1999) 677-697, 692

16 | P a g e