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Visa study on money management reveals that Malaysians have
trouble keeping to their budget
As
part of World Savings Day in Malaysia, Visa and Credit Counselling and Debt
Management Agency (AKPK) have launched the initiative Treat Your Money Right. The initiative, designed to promote the importance
of saving, is based on research that shows while most Malaysians are aware of
the importance of saving, many still struggle with managing their finances.[1]
Findings
from the survey show 53 per cent of Malaysians are saving to prepare for their futures.
However, 22 per cent of Malaysians do not keep track of their savings and
spending, and 24 per cent of them avoid keeping a budget and financial record.
The
study also revealed other interesting insights into Malaysians’ money
management behaviour:
•
Sixty per cent keep enough money to meet their basic needs
•
Sixty-seven per cent consider saving for emergencies as their
ultimate motivation
•
Forty-five per cent have a hard time saving money
•
Fifty-four per cent try to give away as much of their money as
possible to good causes and social investments.
The
study proved that it was important for Malaysians to understand their
individual money management styles. The Treat
Your Money Right website www.treatyourmoneyright.com features an
interactive quiz where participants can find out how they handle their finances
as well as providing a range of helpful money management resources.
Ng
Kong Boon, Visa Country Manager for Malaysia said: “Partnering with AKPK to
launch the Treat Your Money Right initiative during World Savings Day is
especially apt, since our research shows a number of Malaysians have room to
improve their budgeting and saving techniques. It is crucial for Malaysians to
understand the importance of effective money management. Knowledge is power and
knowing your style of money management can help you make a more conscious
effort to save and spend within your means. We believe that all Malaysians
should learn how to manage their finances to plan and prepare for various
stages of their lives so they can have a better future.”
The
quiz categorises participants into four different personality types based on
their money management styles. The first is ‘Ringgit Sayang’, where such
personalities have a heightened awareness on the importance to plan and save.
The second type is ‘Big Spender’, and people in this category spend money
without keeping track of their finances. The third type is known as the ‘Denial
Boss’, which refers to people who save as much of their money as possible but
avoid planning and thinking about their budgets. The final type is ‘Tak Mau
Cents’, highlighting characters who do not consider money as one of the most
important things in life.
“We
hope that we can encourage as many Malaysians to take a more active interest in
planning their finances and not just focusing on savings,” says Mr. Azman
Hasim, AKPK General Manager, Operations Division. “The first step in becoming
better at anything, especially the topic of money, is to challenge yourself.”
VISA
and AKPK invite members of the public to challenge themselves in the Treat Your
Money Right Facebook competition. The competition welcomes participants to take
the “What’s your money management personality?” quiz and share a savings tip
and an anecdote that best describes their money management personality on
Facebook. VISA and AKPK have also selected eight social media influencers to
run similar contests on Instagram. The winners of these Instagram contests will
each receive a brand-new Apple Watch Series 3.
The
Facebook competition will begin on 30 October and end on 14 November. Participants stand a
chance to win 5,000 ringgit and 8 pieces of Apple Watch Series 3, amongst other
prizes as they develop their understanding of effective financial management.
ABOUT VISA
Visa Inc. (NYSE: V) is the world’s leader in
digital payments. Our mission is to connect the world through the most
innovative, reliable and secure payment network - enabling individuals,
businesses and economies to thrive. Our advanced global processing network,
VisaNet, provides secure and reliable payments around the world, and is capable
of handling more than 65,000 transaction messages a second. The company’s
relentless focus on innovation is a catalyst for the rapid growth of connected
commerce on any device, and a driving force behind the dream of a cashless
future for everyone, everywhere. As the world moves from analog to
digital, Visa is applying our brand, products, people, network and scale to
reshape the future of commerce. For more information, visit www.visa.com.my
ABOUT COUNSELLING AND DEBT MANAGEMENT AGENCY (AKPK)
Counselling and Debt Management Agency
(AKPK) was established in April 2006 as part of BNM’s Financial Sector
Master Plan (2000 - 2010) that aimed at developing and boosting the country’s
financial sector.
It provides an avenue for individual borrowers
as well as potential borrowers to enhance financial discipline via Financial Education, Financial Counselling and Debt Management Programme. In doing so,
AKPK aims to create a more resilient household sector and a sound and robust
banking system by facilitating debt repayment efforts and minimises incidence
of non-payment arising from poor debt management.
By promoting awareness and educating the
public on how to manage their finances effectively, as well as providing
counselling and a specially tailored Debt Management Programme, AKPK hopes to
help curb the financial-related issues faced by many Malaysian households.
AKPK envisions a society that is financially
savvy, and to this end, AKPK wants to be recognised as the trusted provider of Financial Education to adult consumers
and continue to promote financial prudence.
AKPK’s mission is to Make Prudential Financial Management A Way of Life among
Malaysians.
Counseling and Debt
Management Programme are services provided for free to individuals by AKPK,
without the use of any third-party agent.
[1] Visa
Financial Literacy Study 2018 – conducted on 1060 Malaysians aged 21-40 years
of age to understand perception of money on young Malaysians.
Tags
LIFESTYLES