Introduce personal financial management courses in tertiary institutions, say experts

KUALA LUMPUR: Personal financial management courses need to be introduced in institutions of higher learning to prepare graduates for the working world.

Universiti Putra Malaysia Human Ecology Faculty Dean Prof Dr Mohamad Fazli Sabri said these courses must also be made compulsory subjects.

He said this was important as young working adults would be entering a phase where they would need to start managing their financial resources in the best possible way to adapt to the current rise in the cost of living.

“Managing financial resources has a lot to do with lifestyle. Their time in university is the best platform to be educated and get early exposure to savings, investments, credit, estate planning and risk management.

“This is key in ensuring they don’t end up being in financial trouble at a young age, such as having a 30 to 40 debt-to-income ratio. This would also help them distinguish between primary and secondary needs” he said when contacted yesterday. He was responding to the findings of a UCSI Poll Research Centre survey on the financial situation of youths and young adults in the country.

The survey of 1,077 respondents aged between 18 and 40 showed that 73 percent or 786 individuals had taken loans, with the majority of them drawn by lack of money (42 per cent), besides having to deal with inflation (22 per cent) and also after being influenced by friends (21 per cent).

However, the same findings showed that 83 per cent, or 652 individuals, were able to keep to their loan payments.

Universiti Teknologi Mara Faculty of Business Management Senior Lecturer Dr Zahariah Sahudin shared this view and suggested that such classes begin at the primary school level.

“It is good that we start raising awareness about financial management from primary school, and continue at the secondary school level before strengthening their knowledge for a deeper understanding at the university level.

“For a start, it is recommended that the university step up and even increase the number of advocacy and financial management awareness programmes for their students,” she said.