Ways of Engaging in Financial Prudence for Students - Research Paper Example

Student spending behavior Name: Tutor: Course: Date: Abstract This study investigated the spending habits of university students in an Australian University. The study sought to understand how students spend their money, emergent spending habits among university students and their intentions or desire to change their current spending habits. Using a survey study of 100 respondents sampled through convenience sampling, the study administered questionnaires to the respondents within the university premises. Using descriptive data analysis, the study found that students tend to misuse credit cards to purchase items that do not benefit them. The study found that students tend to spend more on electronic gadgets, entertainment, clothing and alcohol more than they could spend on books, room and boarding. The study obtains that students in current times spend excessively on snacks, beverages and alcohol mainly from stores and fast food restaurants. The study identified women as the gender that is more likely to run into debt by excessive use of credit cards. On credit card usage, many students were not satisfied with their current status and would want to engage in prudent financial management and literacy. This study is crucial to university students to understand their money wasting habits and find ways of engaging in financial prudence such as attending financial management classes. Table of Contents Table of Contents 3 1.0 Introduction 5 1.1 Research questions 5 1.2 Significance of the study 6 2.0 Literature review 6 3.0 Methodology 8 4.0 Results and discussion 9 4.1 Results 9 4.2 Discussion 10 5.0 Conclusion, implications and recommendations 12 5.1 Limitations and future research 12 References 14 Brobeck, S. (1991). Student consumer knowledge: Results of a national test. Washington, DC: Consumer Federation of America and American Express Company. 14 Chen, H., & Volpe, R. P. (1998). An analysis of personal financial literacy among college students. Financial Services Review, 7(3): 107–128. 14 Davies, E., & Lea, E. G. (1995). Student attitudes to student debt. Journal of Economic Psychology, 16(2): 663–679. 14 Fox, J., Bartholomew, S., & Lee, J. (2005). Building the case for financial education. The Journal of Consumer Affairs, 39(1): 195–214. 14 Henry, R. A., Weber, J. G., & Yarborough, D. (2001). Money management practices of college students. College Student Journal, 35(2): 244-250. 14 Joo, S., Grable, J. E., & Bagwell, D. C. (2003). Credit card attitudes and behaviors of college students. College Student Journal, 37(4): 405-419. 14 Lyons, A. C. (2004). A profile of financially at-risk college students. Journal of Consumer Affairs, 38(4): 56-80. 14 Mandell, L. (1997). Personal financial survey of high school seniors. Jump Start Coalition for Personal Financial Literacy, March/April. Washington, DC. 15 Markovich, C. A., & DeVaney, S. A. (1997). College seniors’ personal finance knowledge and practices. Journal of Family and Consumer Sciences, 89(2): 61-65. 15 Peng, T.C. M., Bartholomae, S., Fox, J. J., & Cravener, G. (2007). The impact of personal finance education delivered in high school and college courses. Journal of Family and Economic Issues, 28(3): 265-284. 15 Roberts, J. A., & Jones, E. (2001). Money attitudes, credit card use, and compulsive buying among American college students. The Journal of Consumer Affairs, 35(3): 213–240. 15 Sorooshian, S. & Teck, T.S. (2014). Spending behavior of a case of Asian University Students. Asian social science, 10(2): 64-69. 15 Strauss, A. & Corbin, J. (1994). Grounded theory methodology, in, Denzin, N.K. & Lincoln, Y.S. (eds.) Handbook of Qualitative Research pp 273-285. Sage Publications: Thousand Oaks, CA. 15 Xiao, J. J., Noring, F. E., & Anderson, J. G. (1995). College students’ attitudes towards credit cards. Journal of Consumer Studies and Home Economics, 19(1): 155-174. 15 Appendices 17 Appendix I: Gender of respondents 17 Appendix II: Nationality of respondents 17 Appendix III: Source of money for college expenses 17 Appendix IV: Monthly budget 18 Appendix V: Mode of payment for your expenses 19 Appendix VI: Gender that tends to accumulate more credit card debt 19 Appendix VII: Options if running out of money 20 Appendix VIII: Expenditure on student preferences 21 Appendix IX: Spending behavior statements 24 Appendix X: Questionnaire 26 1.0 Introduction Spending behavior among consumers is always dynamic and unstable. With generational change and changes in preferences and tastes ensue due to technology and innovation. Students have exhibited a change in spending behavior given the rise in incomes of parents in many middle income and developed economies. Although many students rely on their parents, part time employment and grants for upkeep and sustenance, their spending behavior reflect unplanned budgeting. Previous studies have examined student spending with regard to their attitudes and financial management (Quinn & Steiner, 2009; Norvalitis, et al. 2006; Micomonaco, 2003). Norvalitis, et al. (2006) observes that money management among college students is influenced by knowledge, personality traits and age. Since students have restricted expenses and incomes, their money management methods differ. On the contrary, Micomonaco (2003) argues that students tend to incur more credit card bills way beyond their actual budget and means. More students are becoming knowledgeable in their financial status and responsibility and are not likely to run into debt (Norvalitis, et al. 2006). While many are on student loans and grants, they are concerned about their future financial liabilities and desire to clear their debt on time. Companies involved in beverage and alcohol production, entertainment, and food have realized a considerable spending power among students have gone ahead to capitalize on this consumer base. However, the spending habits of students are worrying as more money is expended on activities and products that do not serve their needs as college or university students (Galloway, 2014). Similarly, the amount of time spent on activities other that academic ones show that more money will be allocated to non-academic activities. While a number of studies have attempted to investigate behavior of consumers from a service or product perspective, less attention has been given to understand spending habits of college students. Undertaking this study will help students to engage in prudent savings and direct their expenditures on activities that will assist them achieve their academic goals while in college or university. This study investigated the spending behavior of Melbourne university students. 1.1 Research questions a. How do students spend their money? b. Are there emergent spending habits among university students? c. Do students intend/desire to change their current spending habits? 1.2 Significance of the study This study is important to students, parents or guardians and the university to understand their student spending behavior. By observing certain trends in expenditure, it is possible to provide measures to ensure that savings are made and cut to overspending on wasteful expenditures. As students save, they are able to meet other financial obligations without necessarily running into debt of having to borrow money. Moreover, the study will help students to undertake prudent spending and limit the extravagance in items that do not help them achieve their financial and academic objectives. To parents, the study becomes an opportunity to reflect on the spending habits of their children and provide assistance on financial management. 2.0 Literature review Students derive their spending habits from friends, family members and relatives while growing up. Owing to limited financial experience, financial management among young students tends to be ignored as trappings of youthfulness take centre stage. Promoting personal financial responsibility and improving financial knowledge are important to college students (Peng et al. 2007; Fox et al. 2005). A number of researchers have suggested the need for early financial education of young adults especially on the use of credit cards (Roberts & Jones 2001; Hayhoe et al. 2000). Students tend to spend on technology, entertainment and fast foods often overspending their credit cards. For example, students are more likely to spend more on football tickets than watching football matches on their computers. Effective financial behaviors have positive association to improved financial knowledge (Brobeck, 1991). Many students lack education on financial management and education. A study carried out by Chen and Volpe (1998) on 924 undergraduates found that students who are likely to make correct choices are those with higher financial knowledge. This is consistent with an earlier study by Mandell (1997) who 1,509 high school seniors and found that most of the students had less financial knowledge and were more likely to make incorrect financial decisions. Fox et al. (2005) argues that educational institutions have little concern on financial literacy of students leaving the task to business and community organizations. With easy access to credit cards and inadequate financial knowledge it is highly likely that undergraduates starting college life will misuse the financial instruments. Joo, et al. (2003) notes that, with credit card use, young adults need to understand the consequences and risks associated with irresponsible financial decisions. Attitudes and financial knowledge regarding both credit card debt and installment are enhanced by short financial seminars (Fox et al. 2005). Hayhoe et al. (2000) in a study of college students found that gender and the feeling about using credit cards (affective credit attitude) has influence credit purchasing among college students. Purchases away from home such as food, gasoline, travel, entertainment, electronics and clothing are predicted by affective credit attitude. Most female students tend to buy clothing away from home while male students are preoccupied with food, entertainment and electronics. Financial management practices predictions are more influenced by gender was in terms of affective credit attitude (Hayhoe, et al. 2000; Galloway, 2014). In this case, female students tend to use broader financial practices. Gender shows differences in the number of credit cards, affective credit attitude, financial stress and financial practices. Financial knowledge that is consistent with gender differences has been documented. Male college seniors when compared to their female students report greater financial literacy (Markovich & DeVaney, 1997). Compared to their female counterparts, male students are also more knowledgeable on options of investment (Volpe et al. 1996). Subsequently, Chen and Volpe (1998) found that female students in their sample were less knowledgeable about financial topics overall than male students. Gender differences do not seem to have mixed perception of attitudes toward credit cards. When compared to female students, Xiao et al. (1995) found that on credit card usage, male college students were highly likely to have favorable attitudes. Male students have fewer credit cards compared to their female college counterparts (Hayhoe et al. 2000). This is because female college students tend to be positive on their attitudes towards usage of credit card. Male students compared to their female counterparts are not likely to have a budget hence carry more debt (Henry, et al. 2001; Davies & Lea, 1995). Men are not as risky as women in using credit cards (Lyons, 2004). According to the theory of planned behavior (TPB), intention is the proximal determinant of behavior (Ajzen, 1988). Beyond complete volitional control, this theory was developed to account for planned behaviors and as an extension of the theory of reasoned action (TRA). Attitudes or the cognitive evaluations of the behavior determine intention as provided within the TPB framework. Also influenced by attitudes are perceptions of behavioral control (PBC) and subjective norms or perceptions of social pressure (Henry, et al. 2001). Therefore, the model of budgeting intention is provided by perceived behavioral control, subjective norm, attitude and the constructs of intention. Increased expenditure among student has been heightened by advances in technology. While the female students are obsessed with shoes, bags and clothes, male counterparts are attracted to expensive electronic gadgets. One of the major worries in the society today is increased financial illiteracy right from knowledge and money savings (Gordon, 2010). This involves how to manage payback check and credit payment of essentials. Consumer competence creation requires literacy in finance since lack of knowledge in money management results in financial inefficiencies during adulthood. In the last decade, there has been significant increase in the debt level of college graduates. The social implications of high level of debt are significant because the college graduates will show less flexibility during employment acceptance (Sorooshian & Teck, 2014). Low financial literacy and poor financial management among some college students is the reason behind high level of debt (Goodwin, 2014). Also, in the past decades, high cost of tuition has contributed to high levels of debt to majority of the students. However, due to the dynamic patterns of spending increasing, the tastes and preferences have also changed. Today, the world is witnessing both healthy and unhealthy habits in student spending. 3.0 Methodology The study used quantitative and qualitative research design and specifically it involved a survey of random respondents, students, from a university in Australia. Using the two research design approaches, the study gain depth and breadth in corroboration and understanding while offsetting the weaknesses associated with their individual approaches (Bernard, 2002). In fact the same phenomena can apply a number of researchers, data sources and methods. The study involved a face-to-face survey in which 100 questionnaires were issued to respondents. The rationale of doing so was to obtain good response rates and observe attitudes. However, it is expensive, time consuming and may provide non-representative sample. Convenience sampling was used to sample the respondents into the study. This method is easy and fast allowing researchers to swiftly gather data and extrapolate theories (Silverman, 2001). It not only allows for faster analysis but also allows convenience of data collection with a small budget. However, bias can cloud the results of the survey and may also lead to misrepresentation of data. Sometimes, it may lead to incomplete conclusions from the data. An 18-item questionnaire was designed to include most of the requirements of the study objectives. To ensure reliability of the instrument, the questionnaire was piloted to five students from a different department in the university. This ensured that responses were consistent. Validity was critical and the instrument had to be discussed with the supervisors to ensure that the questions were responding to the needs of the study, objectives. Respondents were requested to participate and were assured that the data would be used for academic purposes only. On data analysis, the study used descriptive studies. Although descriptive studies offer a possibility of error and subjectivity, they are a unique means of data collection as it seeks to describe data without manipulation (Strauss & Corbin, 1994). This study used measures of central tendency such as mean and standard deviation to infer the results of the study. 4.0 Results and discussion 4.1 Results The study issued 100 questionnaires but received 92 of which 4 had instances of missing data. Valid questionnaires were 88. The response rate was 88 percent which was favorable for the study. From the table (Appendix I), the gender of respondents tilted in favor of males 47(53.4%) compared to females at 41(46%). Also, in Appendix II, the nationalities of most respondents were from Asia 45 (51%) while Australians were 43(38%). Most Asian respondents were from China, Japan, Vietnam, India and Korea. The main source of money for university upkeep for the respondents were from parents 38(43%) followed by savings 18(20%) and charities 13(14%). Few respondents held part time employment 11(12%) and university stipend 8(9%). In Appendix IV, most respondents had a budget of between $1000 to 1500 AUD per month 28 (31%). It was also interesting to note that some respondents 14(15%) had monthly budgets going beyond $2000AUD. After the budget, it is usual to make purchases and pay. More than half of the respondents 51(58%) were using credit cards to do their purchases and pay for services. Cash is the least preferred mode of payment 11(12%) among the respondents. Females 55(62%) were the most likely gender to accumulate more credit card debt compared to males at 33(37%), (see Appendix VI). When asked about some of the options they had at disposal if they run out of money, 29(33%) said that they will try to look for some work to fill the void. This was closely followed by those who would borrow from their key source of upkeep such as parents, sponsors or charities (27(30%). The study also considered key expenditures on some of the items that students commonly spend their money. The study found that a significant number of respondents 62(70%) were spending more than $1500 each month to buy technology gadgets such as TV, iPhones and laptops and attending concerts and movies. Besides, more money is also used to buy clothing and other accessories like bags and shoes. On the contrary, the study found that the respondents were spending less than $1000AUD on room and board 49(54%). It was also interesting to learn that 65(75%) of the respondents were spending more than $1000 on alcohol every month. Similarly, on snacks and beverages such as Cappuccino or Franco chino coffee, 72(82%) of the respondents could make that expenditure every month. Regarding the student spending behavior (see Appendix IX), a higher mean value (μ=4.02; SD=1.194) was observed which agreed that most students were misusing credit cards because of the affective credit card attitude. There was also concern over extravagant spending on entertainment (μ=4.10; SD=1.082) especially paying for football events, attending concerts, discos and live bands. The most striking issue capturing attention was the agreement that students were engaging in money wasting habits (μ=4.53; SD=1.286). However, there was lukewarm opinions on purchase of new textbooks each time the semester begins and the fact that most students do not take advantage of the special deals (μ=3.01; SD=1.442) offered by the university by just producing the student ID. Although they recognize the need to spend, most of the respondents were not happy with their current spend (μ=1.45; SD=1.150) and would be prefer to change their spending habit the soonest possible. 4.2 Discussion The results of the study showed that the source of money for upkeep to most students in the university comes from parents. Parents take the responsibility of catering for their children even in colleges and universities to ensure that they have all the items and peace of mind needed to study. Few students are able to secure part time employment while on their undergraduate studies. Since many students are able to budget between $1000 and $1500, the expenses go beyond their budgets to items such as electronic gadgets, clothing, snacks and beverages and also alcohol. These results are consistent with the findings of Hayhoe, et al. (2000) who found that most students spend their money on gadgets and clothing. These purchases are often made extravagantly because the mode of payment is through credit cards. Owing to the fact that they cannot feel the ‘loss’ of money in extravagant spending, majority run into debt. The results showed that more than half of the respondents in making purchases of goods and services. The study identified women as the gender that is more likely to run into debt by excessive use of credit cards. These results are consistent with the findings of Micomonaco (2003) that women tend to accumulate higher levels of credit card debt compared to men. The study found that students were likely to spend more on technology, entertainment, clothing and alcohol than on room, boarding and textbooks. Students said that they would be forced to find part time employment if they run out of money that came from their parents and guardians. Most likely, some students may not want to put pressure on their parents or do not want to be questioned over the apparent extravagance and misuse of money. The study found that credit card use was putting students into huge debts because of uncontrolled spending and peer pressure. The study obtains that students spend excessively on snacks, beverages and alcohol mainly from stores and fast food restaurants. These results are consistent with the findings of Goodwin (2014) that college students are wasting a lot of money of food and beverages that will end up in empty bins half consumed. The students accepted that majority of the students in the university misuse credit cards buying items that they do not need or have cheap alternatives. The study notes that the common money wasting habits for men include attending live bands, buying football tickets and buying very expensive electronic gadgets. For women, they extravagantly buy clothing, handbags and shoes as they would want to be smartly dressed during class or even on outings. Although many students are currently on higher spending, they are not satisfied with their spending habits. These are consistent with the observations of Joo, et al. (2003) that, with credit card use, young adults need to understand the consequences and risks associated with irresponsible financial decisions. Certainly, the students would want to change their spending habits has seen from their dissatisfaction with their current spending and desire for financial literacy. 5.0 Conclusion, implications and recommendations The study found that found that students were likely to spend more on technology, entertainment, clothing and alcohol than on room, boarding and textbooks. The study obtains that students in current times spend excessively on snacks, beverages and alcohol mainly from stores and fast food restaurants. The results of the study showed that the source of money for upkeep to most students in the university comes from parents. Few students are able to secure part time employment while on their undergraduate studies; hence many run into huge debts at the time of completing their courses. The study identified women as the gender that is more likely to run into debt by excessive use of credit cards. On credit card usage, many students were not satisfied with their current status and would want to engage in prudent financial management and literacy. As young adults on credit card use, students need to understand the consequences and risks associated with irresponsible financial decisions. This study is crucial to university students to understand their money wasting habits and find ways of engaging in financial prudence such as attending financial management classes. The study recommends the following; a. Reduce on spending on coffee and fast foods or alternatively buy coffee makers and brew them at home b. Get rid of the credit card and use only during emergencies c. Students can explore digital options for books, e-books and rent out some for the semester d. Make use of campus events and entertainment offers instead of football, concerts and movie tickets. e. Reduce the spending on supplies, rent, décor, transportation by having a budget planner 5.1 Limitations and future research This study was limited by a small sample size that may make it difficult to generalize findings. Moreover, some respondents may not have provided their correct position of responses because the study focused on their lifestyles. Future research can be done to understand the relationship between gender differences, credit card use and money wasting habits of university students. References Ajzen, I. (1988). Attitudes, personality and behavior. Milton Keynes, UK: Open University Press. Bernard, H.R. (2002). Research methods in Anthropology: Qualitative and quantitative approaches, 3rd edition. Thousand Oaks, CA: Sage Publications. Brobeck, S. (1991). Student consumer knowledge: Results of a national test. Washington, DC: Consumer Federation of America and American Express Company. Chen, H., & Volpe, R. P. (1998). An analysis of personal financial literacy among college students. Financial Services Review, 7(3): 107–128. Davies, E., & Lea, E. G. (1995). Student attitudes to student debt. Journal of Economic Psychology, 16(2): 663–679. Fox, J., Bartholomew, S., & Lee, J. (2005). Building the case for financial education. The Journal of Consumer Affairs, 39(1): 195–214. Galloway, E. (2014, July 15). College Students' Spending Habits: How to Waste Money. Uloop, http://www.uloop.com/news/view.php/129595/College-Students-Spending-Habits-How-to-Waste-Money. Gordon, L. (2010). Financial Anxieties Burden More Freshmen, Study Finds. Los Angeles Times, p. 5. Hayhoe, C.R., Leach, L.J., Turner, P.R., Bruin, M.J. & Lawrence, F.C. (2000). Differences in spending habits and credit card use of college students. The Journal of Consumer affairs, 34(1): 113-133. Henry, R. A., Weber, J. G., & Yarborough, D. (2001). Money management practices of college students. College Student Journal, 35(2): 244-250. Joo, S., Grable, J. E., & Bagwell, D. C. (2003). Credit card attitudes and behaviors of college students. College Student Journal, 37(4): 405-419. Lyons, A. C. (2004). A profile of financially at-risk college students. Journal of Consumer Affairs, 38(4): 56-80. Mandell, L. (1997). Personal financial survey of high school seniors. Jump Start Coalition for Personal Financial Literacy, March/April. Washington, DC. Markovich, C. A., & DeVaney, S. A. (1997). College seniors’ personal finance knowledge and practices. Journal of Family and Consumer Sciences, 89(2): 61-65. Micomonaco, J. (2003). Borrowing Against the Future: Practices, attitudes and knowledge of financial management among college students. Virginia Polytechnic Institute and State University. Norvilitis, J. M., Merwin, M. M., Osberg, T. M., Roehling, P. V., Young, P., & Kamas, M. M. (2006). Personality factors, money attitudes, financial knowledge and credit card debt in college students. Journal of Applied Social Psychology, 36(3): 1395-1413. Peng, T.C. M., Bartholomae, S., Fox, J. J., & Cravener, G. (2007). The impact of personal finance education delivered in high school and college courses. Journal of Family and Economic Issues, 28(3): 265-284. Quinn, K., & Steiner, K. (2009). St. Norbert College Paper Usage: Who Cares About That? Unpublished manuscript. Roberts, J. A., & Jones, E. (2001). Money attitudes, credit card use, and compulsive buying among American college students. The Journal of Consumer Affairs, 35(3): 213–240. Silverman, D. (2001). Interpreting Qualitative Data: Methods for Analyzing Talk, Text and Interaction, London, Sage. Sorooshian, S. & Teck, T.S. (2014). Spending behavior of a case of Asian University Students. Asian social science, 10(2): 64-69. Strauss, A. & Corbin, J. (1994). Grounded theory methodology, in, Denzin, N.K. & Lincoln, Y.S. (eds.) Handbook of Qualitative Research pp 273-285. Sage Publications: Thousand Oaks, CA. Xiao, J. J., Noring, F. E., & Anderson, J. G. (1995). College students’ attitudes towards credit cards. Journal of Consumer Studies and Home Economics, 19(1): 155-174. Appendices Appendix I: Gender of respondents Frequency Percent Valid Percent Cumulative Percent Valid Male 47 53.4 53.4 53.4 Female 41 46.6 46.6 100.0 Total 88 100.0 100.0 Appendix II: Nationality of respondents Frequency Percent Valid Percent Cumulative Percent Valid Australian 43 48.9 48.9 48.9 Asian 45 51.1 51.1 100.0 Total 88 100.0 100.0 Appendix III: Source of money for college expenses Frequency Percent Valid Percent Cumulative Percent Valid Part time employment 11 12.5 12.5 12.5 Parents 38 43.2 43.2 55.7 Savings 18 20.5 20.5 76.1 Charities 13 14.8 14.8 90.9 University stipend 8 9.1 9.1 100.0 Total 88 100.0 100.0 Appendix IV: Monthly budget Frequency Percent Valid Percent Cumulative Percent Valid Less than 500AUD 21 23.9 23.9 23.9 500-1000AUD 20 22.7 22.7 46.6 1000-1500AUD 28 31.8 31.8 78.4 1500-2000AUD 5 5.7 5.7 84.1 Over 2000AUD 14 15.9 15.9 100.0 Total 88 100.0 100.0 Appendix V: Mode of payment for your expenses Frequency Percent Valid Percent Cumulative Percent Valid Cash 11 12.5 12.5 12.5 Mobile Money 26 29.5 29.5 42.0 Credit card 51 58.0 58.0 100.0 Total 88 100.0 100.0 Appendix VI: Gender that tends to accumulate more credit card debt Frequency Percent Valid Percent Cumulative Percent Valid Male 33 37.5 37.5 37.5 Female 55 62.5 62.5 100.0 Total 88 100.0 100.0 Appendix VII: Options if running out of money Frequency Percent Valid Percent Cumulative Percent Valid Borrow 20 22.7 22.7 22.7 Ask from source 27 30.7 30.7 53.4 Earn by yourself 29 33.0 33.0 86.4 Wait till next release 12 13.6 13.6 100.0 Total 88 100.0 100.0 Appendix VIII: Expenditure on student preferences a) Technology/Entertainment/clothing Frequency Percent Valid Percent Cumulative Percent Valid Less than 500AUD 2 2.3 2.3 2.3 500-1000AUD 6 6.8 6.8 9.1 1000-1500AUD 18 20.5 20.5 29.5 1500-2000AUD 40 45.5 45.5 75.0 Over 2000AUD 22 25.0 25.0 100.0 Total 88 100.0 100.0 b) Room and board Frequency Percent Valid Percent Cumulative Percent Valid Less than 500AUD 11 12.5 12.5 12.5 500-1000AUD 37 42.0 42.0 54.5 1000-1500AUD 32 36.4 36.4 90.9 1500-2000AUD 5 5.7 5.7 96.6 Over 2000AUD 3 3.4 3.4 100.0 Total 88 100.0 100.0 c) Alcohol Frequency Percent Valid Percent Cumulative Percent Valid Less than 500AUD 8 9.1 9.1 9.1 500-1000AUD 15 17.0 17.0 26.1 1000-1500AUD 23 26.1 26.1 52.3 1500-2000AUD 30 34.1 34.1 86.4 Over 2000AUD 12 13.6 13.6 100.0 Total 88 100.0 100.0 d) Snacks and beverages Frequency Percent Valid Percent Cumulative Percent Valid 500-1000AUD 16 18.2 18.2 18.2 1000-1500AUD 29 33.0 33.0 51.1 1500-2000AUD 29 33.0 33.0 84.1 Over 2000AUD 14 15.9 15.9 100.0 Total 88 100.0 100.0 Appendix IX: Spending behavior statements N Mean Std. Deviation Kurtosis Statistic Statistic Statistic Statistic Std. Error Misuse of credit cards 88 4.02 1.194 .430 .508 Purchase of New textbooks 88 2.84 1.082 -.063 .508 Extravagant spending on entertainment 88 4.10 .817 .122 .508 Ignores special deals offers 88 3.01 1.442 -1.295 .508 Engage in money wasting habits 88 4.53 1.286 -.816 .508 Satisfied with current spend 88 1.45 1.150 .271 .508 Would like changes in spending 88 3.97 1.345 -.568 .508 Recognizes the need to spend 88 3.58 1.404 -.843 .508 Valid N (listwise) 88 Appendix X: Questionnaire I am a student undertaking research on University student spending behavior. I promise that your contributions to this survey will be kept confidential and use for academic purpose only. Thank you. Tick the most appropriate response 1. State your gender Male [ ] Female [ ] 2. State your nationality Asian [ ] Australian [ ] 3. Where is your source of money for college expenses? Part time employment [ ] Parents [ ] Savings [ ] Charities [ ] University stipend [ ] 4. What is your monthly budget? Under 500 AUD [ ] 500-1000 AUD [ ] 1000-1500 AUD [ ] 1500-2000 AUD [ ] Over 2000 AUD [ ] 5. What is you mode of payment for your expenses? Cash [ ] Mobile Money [ ] Credit card [ ] 6. Which gender tends to accumulate more credit card debt? Men [ ] Women [ ] 7. What would you do if you run out of money? Borrow [ ] Ask money from source [ ] Earn by yourself [ ] Limit spending money until next month funds come [ ] 8. How much do you spend on the following items per month? Item Less than 500AUD 500-1000 AUD 1000-2000 AUD Over 2000AUD Technology/entertainment/clothes Snacks and beverages Alcohol Room and board 9. Please put your response if you agree with the following statements by circling 1-5. The boxes represent the following: 1 = Strongly Agree, 2 = Agree, 3 = Uncertain / Neutral, 4 = Disagree, 5 = Strongly Disagree No. Types SA……………..…SD 10 Students misuse credit cards by spending on unnecessary expenses 1 2 3 4 5 11 Students spend a lot of money buying new text books for one semester 1 2 3 4 5 12 Students spend too much money on entertainment e.g. football, concert, movies and cable TV 1 2 3 4 5 13 College students take advantage of numerous special deals offered to them 1 2 3 4 5 14 Students engage in big money-wasting habits 1 2 3 4 5 15 Female students tend to spend their credit card money wisely than males 1 2 3 4 5 16 I am satisfy with the way I spend my money 1 2 3 4 5 17 I want to change the balance on spending 1 2 3 4 5 18 I need to reorganize the way I spend my money 1 2 3 4 5 …………….Thank you…………. Read More