The Financial Management Of Secondary School Students Finance Essay


Fiscal literacy is the ability to understand finance. More specifically, it refers to the set of accomplishments and cognition that allow an person to do informed and effectual determinations through their apprehension of fundss. It ‘s besides an indispensable portion of planning and paying for postsecondary instruction. Everyone needs to understand the options with regard to the huge array of fiscal merchandises, services, and suppliers to do sound fiscal determinations. Financial literacy as holding theA cognition, accomplishments and assurance to do responsible fiscal decisions.A KnowledgeA means understanding personal and broader fiscal affairs. SkillsA are the ability to use that cognition in mundane life. ConfidenceA means experiencing self-confident adequate to do of import determinations. This is frequently a cardinal factor in startling people into action. By responsible fiscal determinations, we mean that people will be able to utilize the cognition, accomplishments and assurance they have gained to do picks that are appropriate to their ain fortunes.

Fiscal literacy besides can specify as understanding how to pull off money efficaciously. Financial literacy is the cognition and accomplishments to do informed determinations sing money affairs. Financial literacy helps an person fulfill personal, household, societal and governmental responsibilities.A What does it intend to be financially literate? It means that you know basic money rules. You understand fiscal rules such as involvement rates, hazard and return, recognition direction, guarantee, banking, insurance, clip value of money and taxes.A Everything else being equal, people who are financially literate are more likely to accomplish their fiscal ends than people who are non financially literate. Fiscal literacy can assist people purchase a place, salvage money for exigencies, afford college tuition, get down a concern, and unrecorded comfortably in retirement.A On the other manus, a deficiency of fiscal literacy can be harmful. Fiscal illiteracy can subject an uninformed individual to inordinate debt, predatory loaning, and misdirecting investings.

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Fiscal literacy is paramount in today ‘s market topographic point. Consumers are confronted with complicated fiscal picks that may hold immense deductions for them and their households. For illustration, people must take whether to lease or purchase a place, whether to rent or purchase a auto, whether to see belongings, wellness, and life and for how much, whether to salvage for instruction and retirement -A how much and through which vehicles. To do determinations, people draw on their bing cognition in a peculiar state of affairs and use it in such a manner that is appropriate to their fortunes.


Fiscal literacy is a direction of money. Where, from this research we can look into the fiscal direction for secondary school pupils ‘ . We can associate with the pupils background, fiscal attitude, fiscal cognition and household influence.

From pupil ‘s background we investigate based on their gender, aged, signifier and any related with money that they spend. Based on fiscal attitude, we investigate about their ability to pull off money in day-to-day life. Are they holding a salvaging history, ATM card that they can used to pull their money? How much they ever salvaging their money for every month? So, from this research, we can cognize how much they ever spend their money.

In this research paper, this survey was behavior to look into on the fiscal literacy among secondary school. This research is based on the past survey on the related country where the information is collected from diaries and primary informations.


In today ‘s universe of progressively higher cost of life and tighter personal budgets, the demand for prudent fiscal planning and good money direction becomes progressively important. In Malaysia, many people do n’t cognize how to pull off their money. What they should make when they have a batch of money. They ever waste their money with making activities that non give a benefit to them. So, if there are plans or activities on it, they ne’er addressed straight to immature consumers specifically those in between aged 16 to 18 old ages. It can better fiscal literacy of persons, specifically pupils at secondary school. So, they can hold positive hard currency direction attitudes before they enter to university degree or occupation market. This positive attitude will assist them to pattern proper personal fiscal direction as working grownups.

1.3 RESEARCH Question

1.3.1 General Research Question

Are there differences in fiscal cognition based on gender, aged and organize?

Specific Research Question

Are there differences in fiscal attitudes based on gender, aged and organize?

Are there difference in household influence based on gender, aged and organize?

Are there differences in fiscal cognition, attitudes, and household based on instruction degree of parents?

Are SMK Datuk Menteri Ayer Hitam pupils fiscal literacy correlated with their fiscal cognition and attitudes?


1.4.1 General Objective

The general aim of this survey is to analyze the fiscal literacy among secondary school.

1.4.2 Specific Objective

To look into the personal finance literacy ( cognition, attitude, and household ) of a sample of SMK Datuk Menteri by gender, aged and signifier.

To analyze parental influences on the degree of fiscal literacy of SMK Datuk Menteri pupils ‘ .

To analyze the relationship between SMK Datuk Menteri pupils ‘ fiscal cognition and attitude, and their fiscal literacy degree.


This research is to lend overviews and information of the fiscal literacy among secondary school. Nowadays, many people do n’t cognize how to pull off their money. So, from this research, we can cognize how many people or pupil know to pull off their money really good. Furthermore, how much they ever save their money for every month. We besides can cognize parents ‘ instruction degree can give consequence from this job.


This survey would give a valuable cognition to the pupil to better their fiscal accomplishment. It besides helps them to pattern proper personal fiscal direction as working grownups.

It is besides the first scheme before them go to higher instruction. Family influence besides can give positive consequence for pupil fiscal direction. Every people should take enterprise to better their fiscal direction and give good attitude to pupil to do certain they besides can pull off their money decently.


Through this research besides, the other research worker will derive the benefit in making some similar research by mentioning to the information given. Furthermore, these surveies besides improve the credibleness of research worker due to the betterment of their cognition accomplishments by mentioning to this research. Then, this research survey besides can be used as an extra mentions and counsel for those who intend to make research in this peculiar country and to better other surveies in future.


There are several restrictions faced during carry oning and finishing this research survey. The restrictions are:


Since making the research is a new experience, there are so many challenges and barriers to face with. The procedure of making research has been taught to be more patient and diligent. Therefore, some counsel and mentions from the professional and adept are required in order to finish this research.


To accurate the research consequence, informations aggregation are really of import. Not all informations has been gathered from the beginnings are accurate and relevant with the range of survey. This may be due to the typewriting or proficient mistake that might take to confusion either the information is able to be usage or non.


The on-line diaries such as Emerald are used to happen the old literature that related to this survey. They are some diaries that provide abstract and this research survey can be improved if the literature work or determination can be included.



Student ‘s background is an of import in making this research. From this term, can see the different degree of instruction, different aged can give different reply. We can cognize who can pull off their money really good and which groups merely waste their money. Between male and female which one more independent in manage their money. Between male and female besides we can see who ever spend their money in salvaging than bask it.


Attitude is a sensitivity or a inclination to react positively or negatively towards certain thought, object, individual, or state of affairs. Attitude influences an person ‘s pick of action, and responses to challenges, inducements, and wagess. Four major constituents of attitude are affectional like emotions or feelings, cognitive similar belief or sentiments held consciously. Besides, conative like disposition and appraising like positive or negative response to stimuli. A subdivision of economic sciences concerned with resource allotment every bit good as resource direction acquisition and investing. Simply, finance trades with affairs related to money and the markets. Finance besides to raise money through the issue and sale of debt or equity.


Knowledge is the consciousness and apprehension of facts, truths or information gained in the signifier of experience or acquisition. Knowledge is an grasp of the ownership of interconnected inside informations which, in isolation, are of lesser value. Financial Knowledge does non consort, back, or sell any 3rd party fiscal merchandises or services.


Family influence is really of import in educating kids. What parents do, kids will certainly make. So, parents should give a good attitude to do certain kids will besides make the same thing. In this survey, the influence of parents is really of import.

A household is a domestic group of people, or a figure of domestic groups linked through descent ( demonstrated or stipulated ) from a common ascendant, matrimony or acceptance. Families have some grade of affinity. The group consisting a hubby and married woman and their dependent kids, representing a cardinal unit in the organisation of society.

Influence is the power to impact, control or pull strings something or person ; the ability to alter the development of fluctuate, fluctuating things such as behavior, ideas or determinations ; the position of being able to order the actions or behaviours of an object or individual ; moral or political power over a individual or group ; dominance. Influence besides the capacity or power of individuals or things to be a compelling force on or bring forth effects on the actions, behaviour or sentiments. He used household influence to acquire the contract. Besides, influence can specify as the action or procedure of bring forthing effects on the actions, behaviour or sentiments like her female parent ‘s influence made her stay. Influence besides a individual or thing that exerts influence like he is an influence for the good.

Chapter 2


2.0 Introduction

Literature reappraisal is the procedure of reading, analysing, measuring, and sum uping scholarly stuffs about a specific subject. The consequences of a literature reappraisal may be compiled in a study or they may function as portion of a research article, thesis, or grant proposal. ( Richard Nordquist )

A literature reappraisal is an history of what has been published on a subject by commissioned bookmans and research workers. Occasionally you will be asked to compose one as a separate assignment ( sometimes in the signifier of an annotated bibliography-see the underside of the following page ) , but more frequently it is portion of the debut to an essay, research study, or thesis. ( Dena Taylor )

In composing the literature reappraisal, your intent is to convey to your reader what cognition and thoughts have been established on a subject, and what their strengths and failings are. As a piece of authorship, the literature reappraisal must be defined by a guiding construct ( e.g. , your research aim, the job or issue you are discoursing or your argumentative thesis ) . It is non merely a descriptive list of the stuff available, or a set of sum-ups ( Dena Taylor )


Motivational theory suggests that steps of fiscal literacy should be related to fiscal behaviour that is in the consumer ‘s best involvements, ( Hilgert, 2003 )

Although fiscal behaviour seems to be positively affected by fiscal literacy, the long-run effects of fiscal instruction on fiscal behaviour are less certain ; Bemheim, Garrett and Maki ( 2001 ) found that those who took a fiscal direction class in high school tended in in-between age to salvage a higher proportion of their incomes than others. ( Bernheim, Garret and Maki 2001 )

On the other manus, found small positive impact of a well-regarded high school personal finance class on station high school fiscal behaviour from one to five old ages after taking such a class ( Mandell 2006 ) .

The ineffectualness of high school categories that teach fiscal literacy to measurably108 L. Mandell. LS. Klein / Financial Services Review 16 ( 2007 ) 105-116 addition literacy degrees among pupils that have taken such categories bases in blunt contrast to the current attempts to mandate such categories throughout the U.S. ( Mandell 2006 ) .

This article suggests that pupils retain small of what they learn in personal finance and money direction categories because they do non comprehend that it is relevant to their lives. In his book Engaging Minds: Motivation & A ; Learning in America ‘s Schools, the sensed relevancy or irrelevancy of the capable affair is an of import determiner of whether a scholar will “ go occupied and remain engaged in any leaming undertaking. ” ( David Goslin 2003 )

The demand for personal finance instruction has been identified in many states and is well-documented by current research in the field. For case, it is widely reported that many immature people do non experience prepared for the fiscal challenges they will confront, such as financing their instruction, purchasing a auto, utilizing recognition, salvaging and puting, or buying a place. Recent analysis shows that 60 per centum of immature people in their 20s “ feel they ‘re confronting tougher fiscal force per unit areas than immature people did in old coevalss. And 30 per centum say they worry often about their debt ” . High recognition card debt and comparatively low nest eggs rates have become a national concern in many developed, every bit good as developing, states. ( David Goslin 2003 )

Summarized the consequences of multiple studies and trials on fiscal cognition and reported systematically low mean public presentation of adolescents. ( U.S. President ‘s Advisory Council on Financial Literacy 2009 )

The lowest tonss of 48.3 % demonstrated by the 12th graders for over a decennary of proving in personal finance. ( Coalition 2008 )

Even a brief overview of the antecedently conducted research on the subject demonstrates the grounds of tangible deficiency of fiscal competence among the immature people in assorted states. For illustration, provides a thorough overview of the major grounds for increased importance of fiscal instruction such as, altering demographics, turning complexness of the fiscal sector, worsening personal nest eggs along with lifting liability. ( Larry Orton, 2007 ) .

International experience drawn on such states as United Kingdom, the United States, and Australia shows similarities in hapless consequences on late conducted studies to measure personal finance literacy. They besides proved bing correlativity between the degrees of instruction and income every bit good as overall overestimate of the degree of personal finance cognition by the bulk of respondents ( Larry Orton, 2007 ) .

Recent attempts in the way of fiscal literacy instruction, including the Colorado statute law antecedently cited, topographic point heavy accent on the direction of immature consumers. For illustration, the Jump $ lemony Coalition for Personal Financial Literacy ( 2009 ) lists as its organisational intent “ … Advancing the fiscal literacy of kindergarten through college age young person by supplying protagonism, research, criterions and educational resourcesaˆ¦ ” ( McCormick 2009 )

Support for early fiscal instruction is offered by the work of McCormick ( 2009 ) who concluded from a elaborate reappraisal of the fiscal instruction literature that the earlier pupils are introduced to fiscal direction subjects, the better. ( McCormick 2009 )

However, other research suggests that the proviso of fiscal instruction to high-school age pupils is frequently less than effectual. One survey found that while “ merely in clip ” instruction plans ( those provided for and instantly anterior to the receiver meeting a fiscal 4 event were effectual for older consumers, the impact was less marked for immature people ( Mandell & A ; Klein, 2007 ) .

The writers concluded that for high school populations in peculiar ( to which the Colorado statute law is at least partially directed ) , proviso of fiscal literacy instruction frequently has limited impact because the information is non perceived by the receiver as being peculiarly utile or relevant ( Mandell & A ; Klein, 2007 ) .

Similarly, argued that a restriction to the efficaciousness of fiscal instruction in high school is that even as seniors, high school pupils might non acknowledge the importance of the information being presented because of its deficiency of immediate relevancy in their lives. ( Bruder 2009 )

Possibly more distressful than low degrees of fiscal literacy is the consistent determination that those who have taken a high school category designed to better fiscal literacy tend to make no better or small better than those who have non had such a class ( Mandell, 2004 ) .

We do non doubt that the huge bulk of pupils who take such a class attend categories, read the text edition and cram successfully for the concluding. Nor do we doubt that the instructors are dedicated and educated. We merely find no connexion between instruction and fiscal literacy, measured, in most instances, within a twelvemonth after taking such a class. ( Mandell 2004 )

Fiscal literacy is of import at many degrees. Surely, it is most of import for the person who must do complex and expensive fiscal determinations on 2behalf of him/herself and of dependants. Bad determinations can do a great trade of wretchedness, and recent alterations to the Federal bankruptcy legislative acts extend these effects to a wider population. ( Mecham, 2005 )

If, as appears to be the instance, those with higher incomes and greater wealth are more financially literate than those with fewer resources, fiscal public assistance which is a merchandise of the two is likely to be more unevenly distributed in the population than either income or wealth. This could finally take to calls for monolithic re-regulation in an effort to give authorities protection to consumers who are incapable of protecting themselves ( Mecham, 2005 )

A deficiency of fiscal literacy may good falsify our fiscal markets. Those who specialize in behavioural finance demonstrate apparently irrational investor behaviour, such as declining to sell a losing stock or acquiring caught up in the “ irrational exuberance ” of market bubbles. ( see, for illustration, Kahneman and Tversky, 1979 )

It is possible to measure the degree of fiscal literacy in any population. However, it is far more hard to delegate significance and importance to these appraisals. ( Lyons, et al 2006 )

Professor Douglas Bernheim and his co-workers have presented findings that suggest a positive impact of fiscal literacy instruction on nest eggs behaviour. Using Merrill-Lynch history informations for middle-aged investors, he found that those who spent their high school old ages in provinces that required a category that taught fiscal literacy tended to salvage a higher proportion of their incomes than those who were non required to take such a class. ( Bernheim, et al 2001 )

In order to measure whether today ‘s categories in fiscal literacy consequence in “ good ” attitudinal or behavioural alterations, this writer did two pieces of analysis. The first was on the 2004 Jump $ prostitute information which, for the first clip, asked pupils to measure their ain degree of thrift from “ really thrifty, salvaging money whenever I can ” to “ really spending-oriented, barely of all time salvaging money. ” Thrift was found to be somewhat higher for those who took a class related to fiscal literacy but was non consistently related to fiscal literacy tonss ( Mandell, 2005 ) .

2.2 Decision

In this survey, fiscal direction is critical to guarantee a good life. Everyone needs to cognize how to pull off their fundss themselves. To avoid a deficit of financess, the assorted enterprises taken to avoid this to go on. Every family should do their ain hereafter nest eggs. With the current economic uncertainness, many crises have occurred. So, for avoid trapped off from the crisis, everyone demands take their several functions. Avoid blowing off from preparedness. To guarantee a good life, every people should hold a good fiscal direction.


Chapter 3


3.0 Introduction

A methodological analysis instance is one portion of the procedure and stage of the study. Methodology introduces us about the flow of plants that contribute in this instance survey. This chapter contains the process and methodological analysis used for the intent of this survey where under subdivision 3.1 presented a information aggregation procedure. In subdivision 3.2, discuss about a beginnings of informations. For variables and measuring is presented in subdivision 3.3, theory model in subdivision 3.4, the information analysis and intervention in subdivision 3.5 and hypothesis statement is section 3.6. Last, subdivision 3.7 concludes this chapter.


Data aggregations of this survey are from primary informations. All information is gathered from questionnaire that I found from study in SMK Datuk Menteri, Ayer Hitam Johor. The information beginnings are from diaries, cyberspace, and other relevant stuffs.

3.1.1 Journal

The on-line diaries such as Emerald were used to happen the old literature that related with this survey. The other web site besides includes in order happening the relevant information that relates to the peculiar country.

3.1.2 Internet

I used cyberspace to seek literature reappraisal and other information to acquire the info. I besides refer other diary by utilizing cyberspace. Majority all the information that I found come from seeking the cyberspace.

3.2 Beginnings OF DATA

The information for this survey will be collected from the questionnaire that provided by study in SMK Datuk Menteri. These pupils are presently in signifier five and six in SMK Datuk Menteri, Ayer Hitam Johor.

The end for this undertaking was enroll a sample size of 100 pupils SMK Datuk Menteri. Out of 100 pupils participated, 92 entire pupils completed the study. All the informations collected were analyzed by utilizing SPSS Windows ( Version 13.0 ) . The research worker conducted descriptive analysis for easy reading of informations. The research workers used cross-tabulation technique to analyze the relationship between variables. In all, the analysis used basic frequence, per centum computation, mean, and standard divergence, T-test, ANOVA, Pearson ‘s Correlation and Chi- Square to accomplish the aim of the survey.


The variables used in this survey can be categorized into two chief types which are ; the dependant and the independent variables.

3.3.1 Dependent Variables

The dependant variable for this survey is the Financial Literacy among Secondary School in SMK Datuk Menteri, Ayer Hitam, Johor. From this dependant I will analyze what can give a large impact in manage money in day-to-day life.

3.3.2 Independent Variables

For this survey, there are four independent variables was measured. There are the pupil background, fiscal attitude, fiscal cognition and household influence. So, from this four an independent variable, we can establish which one can give positive consequence to fiscal literacy.


Below is the conventional diagram to demo the relationship between the dependant and independent variables:

Figure 1: Conventional Diagram ( Relationship Diagram )

Independent Variables Dependent Variables

Students ‘ Background

Fiscal Attitude

Fiscal Literacy

Financial Knowledge

Family Influence


3.5.1 Multiple Linear Regression Model:

( Equation 1 )

Where ;

Ye = Dependent variable

= The changeless figure of equation

= Coefficient Beta value

= Independent variable which represent GDP

= Independent variable which represent Inflation

= Independent variable which represent Interest Rate

= Independent variable which represent Money Supply ( M2 )

= Mistake

3.5.2 Coefficient of Correlation ( R )

By simple definition, coefficient of correlativity ( R ) is to mensurate the additive relationship between dependant variable ( X ) . The value of R is ever lying between -1 and +1 no affair what the unit of X and Y. Its mark ( negative or positive ) indicates the way of relationship between variables straight or reciprocally. If the correlativity is -1, its shows that there is a negative opposite ( perfect ) relationship between the variable. Apart of it shows +1, it shows that there is positive ( perfect ) relationship between variable. In between, the SPSS package will move as an instrument to obtain the value of R for each variable. The equation is to bespeak two variables.

Rxy = COV ( X, Y )


STDx*STDy ( Equation 2 )

Where ;

Rxy = Correlation between X and Y

COV ( X, Y ) = Covariance between X and Y

STDx = Standard divergence of Ten

STDy = Standard divergence of Y

The degree of grade off the correlativity of coefficient is expressed as:

R = 1.00 ( perfect relationship )

R = 0.8 – 0.99 ( really strong relationship )

R = 0.6 – 0.79 ( strong relationship )

R = 0.4 – 0.59 ( moderate relationship )

R = 0.2 – 0.39 ( weak relationship )

R = & lt ; 0.2 ( really weak relationship )

3.5.3 Coefficient of Determination ( R2 )

It is the trial of goodness of tantrum. It is used to find how good the arrested development line fits the information. R2 measures the proportion of entire fluctuation in the dependent variables. The higher the value R2, the higher explanatory power of the estimated equation and it is more accurate for calculating intents. Coefficient of finding represents the extent of alterations in the dependent variables ( fiscal literacy ) that can be explained by the independent variables ( pupils ‘ background, fiscal attitude, fiscal cognition and household influence ) . It determines how good that all the arrested development line fits the information. It is a figure runing from 0 to 1 ( 1 & gt ; R2 & gt ; 0 ) and it represents the proportion of entire fluctuation in the dependant variable that is explained by arrested development equation. If R2 show the value of 1, it indicates that all the alterations in dependant variable used. It shows that there is a strong correlativity between dependant and independent variables. But if the R2 shows the value of 0, it indicates that the alterations of the fluctuation in dependant variable do non explained by the independent variables.

3.5.4 T – Trial

We are called on many times to find if the average public presentation of two groups is significantly different. Those two groups might be pupils, cowss, workss, or other objects. When trying to find if the difference between two agencies is greater than that expected from opportunity, the “ T ” trial may be the needful statistical technique. If the information is from a normal population and at least ordinal in nature, so we are certain that this is the technique to utilize. If you wish to generalise to a population, so the samples must be representative.

“ Thymine ” is the difference between two sample agencies measured in footings of the standard mistake of those agencies, or “ t ” is a comparing between two group ‘s agencies which takes into history the differences in group fluctuation and group size of the two groups. The statistical hypothesis for the “ T ” trial is stated as the void hypothesis refering differences. There is no important difference in accomplishment between group 1 and group 2 on the welding trial.


The hypothesis can be defined as a logically conjectured relationship between two or more variables expressed in the signifier of a testable statement. Relationship is conjectured on the footing of the web of associations established in the theoretical model formulated for the research survey. By the proving hypothesis and corroborating the conjectured relationships, it is expected that solutions can be found to rectify the job encountered. Hypothesis serves as probationary anticipations on expected result based on bing cognition which is stated in such a manner that you could either accept or reject the chance of the hypothesis.

Null hypothesis ( H0 ) is expressed as no ( important ) consequence between two variables or no ( important ) relationship differences between two groups of variables.

Alternate hypothesis ( H1 ) is a statement showing an consequence between two groups of variables or bespeaking differences between groups.

For this survey, there are four hypotheses that traveling to prove which as follow:

Hypothesis 1

H0: There is no consequence between Students ‘ Background and Financial Literacy

H1: there is an consequence between Students ‘ Background and Financial Literacy

Hypothesis 2

H0: there is no consequence between Financial Attitude and Financial Literacy

H1: there is an consequence between Financial Attitude and Financial Literacy

Hypothesis 3

H0: there is no consequence between Financial Knowledge and Financial Literacy

H1: there is an consequence between Financial Knowledge and Financial Literacy

Hypothesis 4

H0: there is no consequence between Family influence and Financial Literacy

H1: there is an consequence between Family influence and Financial Literacy

3.7 Decision

From this survey, based on the informations aggregation and information beginnings, will establish the consequence for this job. The consequence will demo the relationship between dependant and independent variable. The consequence will found by utilizing SPSS Window ( Version 13.0 ) . All the aim of survey will accomplish by analyzed utilizing SPSS Window ( Version 13.0 ) .


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