Financial Awareness among Universiti Tunku Abdul Rahman Undergraduate Students in Kampar ...

160 Pages·2017·2.22 MB·English

by  Suet Leng Wong

Financial Awareness among Universiti Tunku Abdul Rahman
Undergraduate Students in Kampar Campus

FINANCIAL AWARENESS AMONG UNIVERSITI
TUNKU ABDUL RAHMAN UNDERGRADUATE
STUDENTS IN KAMPAR CAMPUS

BONG SOO CHEE
KHOR SAW PENG
WONG KIAN LI
WONG SUET LENG

BACHELOR OF BUSINESS ADMINISTRATION
(HONS) BANKING AND FINANCE

UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF BUSINESS AND FINANCE
DEPARTMENT OF FINANCE

APRIL 2017
Financial Awareness among Universiti Tunku Abdul Rahman
Undergraduate Students in Kampar Campus

FINANCIAL AWARENESS AMONG UNIVERSITI
TUNKU ABDUL RAHMAN UNDERGRADUATE
STUDENTS IN KAMPAR CAMPUS

BY

BONG SOO CHEE
KHOR SAW PENG
WONG KIAN LI
WONG SUET LENG

A research project submitted in partial fulfillment of the
requirement for the degree of

BACHELOR OF BUSINESS ADMINISTRATION OF
BANKING AND FINANCE (HONS)

UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF BUSINESS AND FINANCE
DEPARTMENT OF FINANCE

APRIL 2017
Financial Awareness among Universiti Tunku Abdul Rahman
Undergraduate Students in Kampar Campus

Copyright @ 2017
ALL RIGHTS RESERVED. No part of this paper may be reproduced, stored in a
retrieval system, or transmitted in any form or by any means, graphic, electronic,
mechanical, photocopying, recording, scanning, or otherwise, without the prior
consent of the authors.

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Financial Awareness among Universiti Tunku Abdul Rahman
Undergraduate Students in Kampar Campus

DECLARATION

We hereby declare that:
(1) This undergraduate research project is the end result of our own work and that
due acknowledgement has been given in the references to ALL sources of
information be they printed, electronic, or personal.
(2) No portion of this research project has been submitted in support of any
application for any other degree or qualification of this or any other university,
or other institutes of learning.
(3) Equal contribution has been made each group member in completing the
research project.
(4) The word count of this research report is 21170 words.

Name of Students: Student ID: Signature:
1. BONG SOO CHEE 14ABB02110
2. KHOR SAW PENG 14ABB03506
3. WONG KIAN LI 14ABB02109
4. WONG SUET LENG 14ABB01385

Date: 12th April 2017

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Financial Awareness among Universiti Tunku Abdul Rahman
Undergraduate Students in Kampar Campus

ACKNOWLEDGEMENTS
We would like to take this opportunity to show our deepest gratitude to the parties
who involved in our research directly or indirectly. These parties showed their
support and assistant in completing this research.
First of all, we would like to thank our supervisor, Ms Chia Mei Si for guiding and
helping us throughout this research. We may not complete our research without the
guidance from Miss Chia. She provided us with journals, sources and information
in enhancing our research. We sought some advices from her when we faced some
queries. She also commented on our work so that we can make improvement on our
research.
Next, we also like to thank our second examiner, Ms Nakesvari a/p Shanmugam for
her valuable feedbacks in improving our research. She highlighted the shortcoming
of our research in order for us to add in some important point. She also motivated
us by giving some positive feedback.
We appreciate the help from our coordinator, Ms Nurfadhilah binti Abu Hasan for
the guidance when we were having some doubts. She was willing to spend her time
to explain to us. She also gave us information during the final year project briefing.
In addition, the credit is also given to Mr William Choo Keng Soon for his guidance
in the turnitin.
Besides that, Division of Admissions and Credit Evaluation provided us with the
number of undergraduate student enrolment. Without the information, we are
unable to carry out our research in a proper and efficient manner. We save a lot of
time in retrieving the number of undergraduate students in Kampar campus.
We would like to show our gratitude to Universiti Tunku Abdul Rahman for
providing this course for us to conduct this research. We learnt and gained a lot
from this research. We believed that the knowledge is useful for us in the future as
our additional skills.
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Financial Awareness among Universiti Tunku Abdul Rahman
Undergraduate Students in Kampar Campus
Not to forget our families who support us in term of finance and moral for
completing this research. Families motivated us not to give up when we are facing
problems. Besides that, our friends also constantly support and motivate us
throughout this research.
Last but not least, we would like to thank the 380 students from University Tunku
Abdul Rahman in Kampar Campus for spending their time in answering our
questionnaire. Their participation is very important for us to carry out our research.

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Financial Awareness among Universiti Tunku Abdul Rahman
Undergraduate Students in Kampar Campus

DEDICATION
We will like to dedicate to all the group members who are Bong Soo Chee, Khor
Saw Peng, Wong Kian Li and Wong Suet Leng for putting steadfast efforts in
completing this research project. We will not succeed in this achievement if anyone
of the members does not contribute her effort to this research paper.
Moving on, our sincere dedication of this research project goes to our supervisor
for this research paper, Ms Chia Mei Si who had always been the pillar of support
that guided us from the start till the end of this research project. She helped a lot in
guiding and advising our progress till the end of this research paper. Hence, this
research project is dedicated to Ms Chia Mei Si.
In addition, this research paper is also dedicated to our second examiner, Ms
Nakesvari a/p Shanmugam. During our oral presentation, she had provided us with
valuable feedback and comment in order to further improve the quality of our
research paper. Therefore, we would like to dedicate this research paper to Ms
Nakesvari a/p Shanmugam.
Last but not least, we would also like to extend our dedication of the research paper
to all our family members and friends who constantly support and motivate us
throughout the process of completing this research project.
Finally, we are so thankful and appreciate those 380 respondents from Faculty of
Business and Finance and Non-Faculty of Business and Finance who had
participated in our questionnaire survey and provided us with the valuable and
supportive data to complete this research project.

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Financial Awareness among Universiti Tunku Abdul Rahman
Undergraduate Students in Kampar Campus

TABLE OF CONTENTS

Page
Copyright Page ...……………………………………………………………..…..ii
Declaration ...………………………………………………………………...…...iii
Acknowledgement ...…………………………………………………………......iv
Dedication …………………………………………………………………..........vi
Table of Contents ………………………………………………………………..vii
List of Tables ……………………………………………………………...…....xiii
List of Figures ………………………………………………………………..…xiv
List of Graphs ………………………………………………………………........xv
List of Abbreviations …………………………………………………...……....xvi
List of Appendices …………………………………………………..………... xvii
Preface …………………………………………………………………..….….xviii
Abstract ………………………………………………………………….……...xix
CHAPTER 1 RESEARCH OVERVIEW ………………………………..1
1.0 Introduction ……………………………………………….1
1.1 Research Background ……………………………………..1
1.2 Problem Statement ……………………………………......4
1.3 Research Objectives …………………………………..…. 8
1.3.1 General Objectives ……………………………......8
1.3.2 Specific Objectives …………………………..........8
1.4 Research Questions …………………………………...…..9
1.5 Hypothesis of the Study ………………………………......9
1.5.1 Financial Behaviour……………………………….9
1.5.2 Financial Attitude ………………………...….…..10
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Financial Awareness among Universiti Tunku Abdul Rahman
Undergraduate Students in Kampar Campus
1.5.3 Financial Behaviour and Financial Attitude
based on Gender ………………………..….…….10
1.5.4 Financial Behaviour and Financial Attitude
based on Age ……………………….…………....10
1.6 Significance of Research ………………………...............10
1.7 Chapter Layout ………………………………...………...11
1.8 Conclusion ……………………………………...………..12
CHAPTER 2 LITERATURE REVIEW ……………………………..…13
2.0 Introduction …………………….…………………….….13
2.1 Review of the Literature ……………………….………...13
2.1.1 Financial Awareness ……………………….……13
2.1.2 General Financial Products …………………...…15
2.1.2.1 Savings Account ……….………...15
2.1.2.2 Fixed Deposit Account ……….….16
2.1.2.3 Credit Card ………………..……..16
2.1.2.4 Investment …………………….…17
2.1.2.5 Conventional Insurance ………….17
2.1.3 Financial Knowledge …………………………….18
2.1.3.1 Time Value of Money …….……..20
2.1.3.2 Interest Rates ………………….…20
2.1.3.3 Inflation ………………………….20
2.1.3.4 Diversification …………………...21
2.1.4 Financial Behaviour ……………………………..22
2.1.5 Financial Attitude ………………………..……....25
2.1.6 Financial Behaviour and Financial Attitude
based on Gender …………………………………28
2.1.7 Financial Behaviour and Financial Attitude
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Financial Awareness among Universiti Tunku Abdul Rahman
Undergraduate Students in Kampar Campus
based on Age ………………………………..…...28
2.2 Review of Relevant Theoretical Framework ………...…..29
2.2.1 Financial Awareness ……………………….……32
2.2.2 General Financial Products ………………….…..33
2.2.3 Financial Knowledge …………………...……..…34
2.2.4 Financial Behaviour …………………………..…35
2.2.5 Financial Attitude …………………………..…....36
2.2.6 Financial Behaviour and Financial Attitude
based on Gender ………………………………....38
2.2.7 Financial Behaviour and Financial Attitude
based on Age ……………………………….....…39
2.3 Proposed Conceptual Framework …………………….....39
2.4 Hypothesis Development ……………………….…….....41
2.4.1 Financial Behaviour ………………………..........41
2.4.2 Financial Attitude ……………………………......42
2.4.3 Financial Behaviour and Financial Attitude
based on Gender ………………………..........…..42
2.4.4 Financial Behaviour and Financial Attitude
based on Age …………………………………….43
2.5 Conclusion ……………………………………………….43
CHAPTER 3 RESEARCH METHODOLOGY ………………………..44
3.0 Introduction …………………………………………...…44
3.1 Research Design …………………………………………44
3.2 Data Collection Method – Primary Data ……...........……45
3.3 Sampling Design ………………………………...………45
3.3.1 Target Population ………………………………..45
3.3.2 Sampling Framework and Sampling Location.…..45
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