The extent to which financial behavior has effect on ones present and future life is important to financial

educators, particularly as the study of gender differences is limited. In order to understand gender differences in
financial behavior and outcomes, the way in which males and females understand money must be examined.
College students may be considered as a high risk group based on economic stability and consequently, well-
being, due to their propensity to borrow to find their college education. Recent college graduates carry a
considerable debt load and financial problems at the time when they are just beginning to work in careers at
beginning salaries (Leach, Hayhoe, Turner, 1999). Financial problem as direct output of negative financial
behavior has been a topic of interest among financial researchers. The term financial problem generally refers to
a mismatch between financial resources and demands (Kerkmann, Lee, Lown, & Allgood, 2000). Several studies
indicated that positive financial behavior such as financial planning and budgeting are the main component of
ones financial satisfaction (Fitzsimmons and Wakita 1993; Garman and Forgue 2006; Xiao 2008) and
conversely the frequent financial problems are a symptom of economic insecurity. Whereas a great body of
research has focused on the factors predict financial behavior of people in the Western context, research in a
non-Western context is still relatively sparse. The present study is an effort to enhance the literature by
examining the effect of several factors on financial behavior outcomes in a non-Western context, that is,
Malaysia. Malaysia is considered a multiethnic country with Malay, Indian and Chinese ideology, and a
multicultural society with a mixture of Muslims, Hindus and Buddhists. Nevertheless the common characteristic
of the three ethnic groups is patriarchal and moderately traditional, where men are socialized to undertake the
role of the breadwinner in the family and women that of caregivers (Lim, Teo, Loo, 2003). In such manner
women are socialized to be uninformed concerning money and men are more involved in financial practices due
to traditional gender role expectations, which may lead to gender disparity in attitudes to money and the financial
behavior during adulthood (Newcomb & Rabow, 1999). Malaysia has experienced rapid economic development
over the last five decades, which has brought intensive changes for young Malaysians, such as expansion of
financial market and an increase in higher education enrolment. The statistics from the Ministry of Higher
Education (2009) indicate that the female population forms almost half of Malaysias population, while
enrolments in schools and universities indicated higher percentages of females (74%) compared to males (67%).
In addition, a higher percentage of females between 20 to 34 are unmarried and tend to marry late (Zainab,
2008). This frame indicates that women contribute effectively to Malaysias economic growth as they form a
large proportion of the nations potentially available labor force, which may comprised with changes in the
traditional patterns prevailing gender behaviors and attitudes accordingly. Because of this, gender disparity in the
Malaysian context may be smaller in educational segment; nonetheless, differences still exist in attitude and
behavior due to disparities during socialization and gender role expectations. Studies on college students
financial behaviour has become of interest to Malaysian educators and scholars (Bakar, Masud, & Jusoh, 2006;
Ibrahim, Harun, & Isa, 2009; Sabri, MacDonald, Masud, Paim, Hira & Othman, 2008) due to remarkable
university enrolment in recent decades. A few researchers (Kamaruddin & Mokhlis, 2003; Masud, Husniyah,
Laily, & Britt, 2004) have examined the financial behaviour in Malaysia on the basis of gender, however, the
study of financial problem is scarce. Financial research (Joo, 2008; Xiao, Tang, & Shim, 2009) has long
recognized that financial behaviour is the main determinant of ones financial well-being, which, in turn, is
influenced by four major factors financial attitude, financial socialization, financial socialization agents and
financial knowledge. Taken together these factors make gender studies in economic issues essential in order to
understand the differences in the determinant factors of male and female financial problem. Thus, the primary
aim of the present study is to determine gender differences in factors predict financial problem among Malaysian
students. However identifying gender differences in determinant factors of financial problems provides a better
understanding of male and female differences in financial management and educational needs.





Many students rely on loans to get them through college. Yet, sometimes students borrow too much money while
in school. Excess loan money leads to debt that students must pay back after graduation delaying other financial
goals. With the proper educational support about living independently, students can reduce their chance of
obtaining unnecessary debt from educational loans. Young adults generally learn their skills from parents and
teachers as children. However, parents often overlook teaching financial skills, such as budgeting and investing,
while their children are still living at home. Instead, children are forced to learn how to handle their money when
entering college and sometimes they make mistakes that will cost them several years of repayment of loans. This
study examines what kinds of financial problems students face. By knowing what problems students encounter,
it is possible for educators to offer a course that teaches the financial skills necessary to overcome these
problems. The participants were asked to indicate what financial education they would be interested in if offered.
Nearly all of the students expressed an interest in learning about financial management.



Educational loans made available by the government enable more students to afford tertiary education. College
students represent an attractive market segment and are therefore exposed to a wide variety of commercial
temptation. Mismanagement of income and credit along with the lack of planning may lead to financial
problems.


Previous studies have shown that many college students perceived higher level of financial problems (Falahati &
Paim, 2011; Sabri, MacDonald, Hira & Masud, 2011) due to lack of sufficient financial knowledge (Garman &
Forgue, 2006; Mandell, 2009). Financial literacy refers to adequate knowledge of personal finance facts and the
vocabulary for successful personal financial management (Garman & Forgue, 2006). Prior studies of college
students consistently found that they are not receiving a good education in personal financial fundamentals and
have poor knowledge (Chen & Volpe, 1998). The research findings of Mandell (2009) among high school
seniors revealed that students are leaving schools and enterning to college without the sufficient ability and skills
to make critical decisions which may affecting their entire lives. Chen and Volpe (1998) through a review of
several studies from 1993 until 1997, concluded that poor knowledge of financial issues such as investment,
savings and spending fundamentals are the most common problem encountered by people experiencing financial
problems. Furtheremore a low knowledge of personal finance among college students is expected to be
associated with ineffective financial behaviors, including a lack of savings (Sabri et al. 2011), not keeping
financial records (Chen & Volpe, 1998), and greater credit card debts (Norvilitis, Merwin, Osberg, Roehling,
Young & Kamas, 2006). According to Varcoe, Peterson, Gabertt, Martin and Costello (2001) poor financial
habits acquired at a young age may carry on into adulthood and cause financial problems, in some cases serious
ones, without some type of effective educational intervention. This combination of high debt, low income, and
low levels of financial knowledge may adversely affect college students financial well-being (Leach et al.
1999). Several studies indicated the role of efficient resource management to higher level of perceived
(subjective) financial well-being (Shim, Xiao, Barber & Lyons, 2009; Xiao, Tang & Shim, 2009). In other words
personal financial management has been identified as a major contributing factor to the satisfaction with one's
financial status (Parotta & Johnson, 1998). Garman and Forgue (2006) asserted that personal financial behavior
could be an important component in defining financial well-being. However, positive financial behavior may
enhance the level of financial well-being and fail to manage the finance aspect cooperates with financial
problems.

Poor financial management can affect more than students finances such as academic performance, mental and
physical well-being, and even the ability to find a job after graduation (Lyons, 2003; 2004). Students like other
people principally learned financial matters within family spheres. Based on the consumer socialization theory of
Moschis (1987) and Ward (1974) individuals, particularly children and adolescents, develop consumer skills,
knowledge and attitudes by interacting with various socialization agents such as parents, peers, and school.
Among several socialization agents, family is recognized as the primary agent through which children start to
experience money management and which continues through adolescence (Bowen, 2002; Chen & Volpe, 2002;
Koonce, Mimura, Mauldin, Rupured & Jordan, 2008). Because college students may bring their heavy debt and
financial insecurity with them into adulthood, understanding financial well-being among college students can
help educational loan providers, financial counselors, college administrator, and parents to better understand
students' current and future financial challenges and needs (Leach et al. 1999). Few previous studies have
examined the associations between childhood consumer experiences, financial socialization agents effect,
financial literacy, financial management and financial well-being among college students. This study attempts to
examine the association between childhood consumer experience, financial socialization, financial literacy,
financial managment and subjective financial well-being of college students.