RRL Foreign
RRL Foreign
According to Holland (2016) many college students are unused to managing money. One of the
biggest money challenges that they usually encounter is staying on top of what they are spending,
which means that they have a difficulty in controlling the way they spend.
Spending is an activity made by every consumer. It is part of the economic cycle, thus making it as
part of our everyday routine. People may acquire basic goods, even in leisure activities, and
miscellaneous expenses requires the use of money, which makes us spend, that is when it became
a habit. (Keynes, M.2015) considered consumer spending to be the most important determinant of
short-term demand in an economy. Pillai, R., Carlo , R., &D'souza , R. (2010)stated that attitude of
young adults toward spending plays a vital role in sustainability perspectives of their finance and
is a significant variable in financial prudence. Besides, adults with high financial literacy enable
them to decreases their chances of bankruptcy, receiving government assistance and making poor
consumer decision. Huston C. R., Leach, L. J., Turner, P. R., Bruin, M.J., & Lawrence, F. C. (2013).
Studies have shown different factors that can affect the spending behavior of individuals, and
these include demographic factors (Levenson, 2014), age,sex, ethnicity (Villanueva,
2017),qualities and learning or education (Norvilitis, et. Al, 2006).
SPENDING HABITS
Student must prioritize their financial aid to right source to avoid reckless spending. In the ages
past, book stationeries, clothes, and other similar items for study were bought by the students. In
the present time, student’s needs have increased for sure, when laptops or desktops are needed
for assignments, hand phones and for some, transportation outside the basic necessities that a
student should be spending on. The advances in technology and viral trends also have led to
increases in student’s expenses. As the Malay saying goes, that new generation has habit of “Biar
Papa Asal Bergaya” meaning that new generation have the mentality of not minding to have no
money as long as they are following the trend and being up to date. Male students in particular are
attracted to buy gadgets that are known to be costly, while the females more likely spent on
shopping for make up, clothes, bags and shoes that are thought crucial, because they want to look
nice going to classes. (Shahryar Sorooshian & Tan Seng Teck, December 29, 2013).
Young adults often begin their college careers without ever having been solely responsible for
their own personal finance (Borden et al., 2008). It was also pointed out that the young generation
rarely practiced basic financial skills, such as budgeting, developing a regular savings plan or
planning for long term requirements (Birari and Patil, 2014)