Money woes at university
LAST month, a report revealed that some Universiti Malaya (UM) students are always cashstrapped to the point that they have resorted to eating one meal a day and fasting regularly to survive.
This scenario is not unique to UM but is also prevalent in universities around the country where it is common practice among many students, who have problems with cash flow and money management, to adopt an extremely frugal lifestyle.
This has caused alarm in many quarters as having proper meals is important for students to support their learning activities. Not getting enough nutrition is one of the problems they face due to money constraints.
However, not having enough funds is not a new issue among students at higher education institutions. The problem has persisted through the years. The question is why is this happening? Are the factors that contribute to the problem the same as yesteryears or could the problem be the result of new factors? Either way, how best should it be solved?
Universiti Kebangsaan Malaysia (UKM) deputy vice-chancellor (student affairs and alumni) Associate Professor Dr Roslee Rajikan said that similar to previous years, students’ inability to manage cash flow generally stems from their inexperience in handling money on their own as opposed to the time when their finances were mainly monitored by their parents, and hence they face difficulties in managing expenditure.
But socioeconomic status and demographic factors may also play a role.
Based on data gathered, Roslee said in UKM, 60 per cent of students come from B40 backgrounds with inadequate funds to pay for their studies. However, in some cases, students from the M40 bracket are also in the same boat.
“The problem relates to multiple factors. Our tuition fees for local undergraduates are among the lowest in the country. Students pay fees as low as RM800 per semester and accommodation costs RM500 per semester. However, students need to pay for food and other personal expenses. The rise in cost of living and the prices of books, and the need to buy laptops may affect their ability to sustain cash flow,” he said.
“Some students use part of their education loans to support their families,” he added.
“In addition, many students were found to spend a significant amount of money on unnecessary expensive items such as high-end handphones in order to be on par with their peers.”
Universiti Teknologi Mara (UiTM) Faculty of Accountancy Associate Professor Dr Tuan Zainun Tuan Mat said rising cost of living plus higher educational expenses have a direct effect on the expenditure of students especially those on campuses located in big cities. A large portion of the expenditure is spent on food, accommodation
The spending behaviour of millennials is drastically different from that of previous generations.
They often end up spending on things they don’t need as they want to keep up with brands.
TUAN ZAINUN TUAN MAT