Relationship between Attitudes towards Personal Financial Planning and Perceived Personal Financial Management Skills: A Generation Y Student Perspective
Keywords:
Attitude; personal financial planning; personal financial management skills; Generation Y students; South AfricaAbstract
This article sought to determine the relationship between attitudes towards personal financial planning and perceived personal financial management skills amongst African Generation Y students in the South African context. In South Africa, the African Generation Y cohort constitutes the largest portion of the Generation Y (individuals born between 1986 and 2005) cohort. Students enrolled at tertiary institutions represent a particularly lucrative target market and powerful influential force on society given that tertiary education is correlated with potential high future earning power and social class status. A convenience sample of 500 African students across the campuses of two South African registered public higher education institutions (HEIs), located in the Gauteng province, was taken. Structured, self-administered questionnaires were used to measure African Generation Y students’ attitudes towards personal financial management as well as perceived personal financial management skills. Data analysis included t-tests and Pearson’s product-moment correlation coefficient. The findings suggest that the target market exhibit a significant positive attitude towards personal financial planning and perceive to be skilled in personal financial management. A strong positive relationship was found between attitudes towards personal financial planning and perceived personal financial management skills.
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Bleedorn, G. (2013), “Say hello to the millennial generation”, ABA Bank Marketing, Vol. 45, No. 1, pp.24-28.
Boon, T.H., Yee, H.S. & Ting, H.W. (2011). Financial literacy and personal financial planning in Klang Valley, Malaysia. International Journal of Economics and Management, 5(1), 149-168.
Botha, M., Du Preez, L., Geach, W., Goodall, B., Palframan, J., Rossini, L. & Rabenowitz, P. (2011). Fundamentals of financial planning 2012. Durban: LexisNexis.
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Borden, L.M., Lee, S., Serido, J. and Dawn, C. (2008), “Changing college students’ financial knowledge, attitudes and behaviour through seminar participation”, Journal of Family Economics, Vol. 29, No. 1, pp.23-40.
Brier, N.R. (2004), “Coming of age”, American Demographics, Vol. 26, No. 9, pp.16-19.
Chavez, J. (2015), “College students lack financial management skills”, Journal of Accountancy, Vol. 220, No. 5, pp.15.
Chen, H. and Volpe, R.P. (1998), “An analysis of personal financial literacy among college students”, Financial Services Review, Vol. 7, No. 2, pp.107-128.
Chinen, K. and Endo, H. (2012), “Effects of attitude and background on students’ personal financial ability: a United States survey”, International Journal of Management, Vol. 29, No. 2, pp.778-791.
Cox, D., Kilgore, T.L., Purdy, T. and Sampath, R. (2008), Catalysts for change: the implications of Gen Y consumers for banks, http://www.deloitte.com/assets/DcomShared%20Assets/Documents/us_fsi_GenY_Consumers_april08.pdf, [Accessed 14.02.2013].
Cude, B.J., Lawrence, F.C., Lyons, A.C., Metzger, K., LeJeune, E., Marks, L. and Machtmes, K. (2006), “College students and financial literacy: what they know and what we need to learn”, Eastern Family Economics and Resource Management Association, pp.102-109.
Cui, Y., Trent, E.S., Sullivan, P.M. and Matiru, G.N. (2003), “Cause-related marketing: how Generation Y responds”, International Journal of Retail and Distribution Management, Vol. 31, No. 6, pp.310-320.
DeRogatis, N. (2013), Financial marketing tips for attracting Gen Y, http://k4architecture.com/financial-marketing-tips-for-attracting-gen-y/, [Accessed 15.09.2013].
De Waal, M. (2008), Why aren’t South African brands haute? Money Web, http://www.moneyweb.co.za/archive/why-arent-south-african-brands-haute/, [Accessed 13.05.2013].
Falahati, L., Paim, L., Ismail, M., Haron, S. and Masud, J. (2011), “Assessment of university students’ financial management skills and educational needs”, African Journal of Business Management, Vol. 5, No. 15, pp.6085-6091.
Ferguson, T. (2008), Gen Y is setting the tech agenda, http://www.bloomberg.com/bw/stories/2008-07-30/gen-y-is-setting-the-tech-agendabusinessweek-business-news-stock-market-and-financial-advice, [Accessed 15.02.2014].
Garman, E.T. & Forgue, R.E. (2008). Personal finance. (9th ed.). USA: Cengage Learning.
Gitman, L.J. & Joehnk, M.D. (2008). Personal financial planning. New York: South-Western Thompson Learning.
Goetz, J., Cude, B.J., Nielsen, R.B., Chatterjee, S. and Mimura, Y. (2011), “College-based personal finance education: student interest in three delivery methods”, Journal of Financial Counselling and Planning, Vol. 22, No. 1, pp.27-42.
James, J., Leavell, H.W. and Maniam, B. (2002), “Financial planning, managers and college students”, Managerial Finance, Vol. 28, No. 7, pp.35-42.
Joo, S. and Grable, J.E. (2004), “An exploratory framework of the determinants of financial satisfaction”, Journal of Family and Economic Issues, Vol. 25, No. 1, pp.25-50.
Joo, S., Grable, J.E. & Bagwell, D.C. (2003). Credit card attitudes and behaviours of college students. College Student Journal, 37(3):405-419.
Kane, S. (2012), Generation Y, http://legalcareers.about.com/od/practicetips/a/GenerationY.htm, [Accessed 23.08.2014].
Kempson, E., Collard, S. and Moore, N. (2006), “Measuring financial capability: an exploratory study for the financial services authority”, (in: European Credit Research Institute-Ed., Consumer Financial Capability: Empowering European Consumers), Brussels: European Credit Research Institute, pp.39-76.
Koh, B. & Fong, W.M. 2011. Personal financial planning. (4th ed.). Singapore: Prentice Hall.
Lai, M.M. & Tan, W.K. (2009). An empirical analysis of personal financial planning in an emerging economy. European Journal of Economics, Finance and Administrative Sciences, (16), 99-111.
Leskinen, J. and Raijas, A. (2006), “Consumer financial capability - a life cycle approach”, (in: European Credit Research Institute-Ed., Consumer Financial Capability: Empowering European Consumers), Brussels: European Credit Research Institute, pp.8-23.
Louw, J.J. (2009). Financial literacy competencies of third-year university students: a case study. North-West University, Masters Dissertation.
Malhotra, N.K. (2010), Marketing research: an applied orientation, 6th ed., New Jersey: Prentice Hall.
Markert, J. (2004). Demographics of age: generational and cohort confusion. Journal of Current Issues and Research in Advertising, 26(2), 11-25.
Norvilitis, J.M., Merwin, M.M., Osberg, T.M., Roehling, P.V., Young, P. and Kamas, M.M. (2006), “Personality factors, money attitudes, financial literacy and credit card debt in college students”, Journal of Applied Social Psychology, Vol. 36, No. 6, pp.1395-1413.
Olivier, D. (2007), “South Africa poised to become a loyalty marketing gem”, Journal of Consumer Marketing, Vol. 24, No. 3, pp.180-181.
Rutherford, L.G. & Fox, W.S. (2010). Financial wellness of young adults age 18-30. Family and Consumer Sciences Research Journal, 38(4), 468-484.
Sabri, M.F. and MacDonald, M. (2010), “Savings behaviour and financial problems among college students: the role of financial literacy in Malaysia”, Cross-cultural Communication, Vol. 6, No. 3, pp.103-110.
Schiffman, L.G., Kanuk, L.R. & Wisenblit, J. (2010). Consumer behavior. (10th ed.). New Jersey: Prentice Hall.
Shaw, S. and Fairhurst, D. (2008), “Engaging a new generation of graduates”, Education + Training, Vol. 50, No. 5, pp.366-378.
Shim, S., Xiao, J.J., Barber, B.L. and Lyons, A.C. (2009), “Pathways to life success: a conceptual model of financial well-being for young adults”, Journal of Applied Development Psychology, Vol. 30, No.6, pp.708-723.
Stats SA (Statistics South Africa). (2015), Statistical release P0302: 2015 mid-year population estimates, http://www.statssa.gov.za/publications/P0302/P03022015.pdf, [Accessed 11.08.2015].
Swart, N. (2009). Manage your money: basic financial life skills for South Africans. (2nd ed.). Pretoria: Van Schaik.
Swart, N. (2012), Personal financial management: the Southern African guide to personal financial planning, 3rd ed., Claremont: Juta.
Twenge, J.M. and Cambell, S.M. (2008), “Generational differences in psychological traits and their impact on the workplace”, Journal of Managerial Psychology, Vol. 23, No. 8, pp.862-877.
Van Gijsen, N. (2002). Retirement – all you want to know without the jargon. Cape Town: Pearson.
Wilson, M. and Gerber, L.E. (2008), “How generational theory can improve teaching: strategies for working with Millenials”, Currents in Teaching and Learning, Vol. 1, No. 1, pp.29-44.
Published
2020-08-28
How to Cite
Van Deventer, M. (2020). Relationship between Attitudes towards Personal Financial Planning and Perceived Personal Financial Management Skills: A Generation Y Student Perspective: Array. Acta Universitatis Danubius. Œconomica, 16(4). Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/330
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Business Administration and Business Economics
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