Visa study on money management reveals that Malaysians have trouble keeping to their budgets
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 based on research that shows though most Malaysians are aware of the importance of saving, many still struggle with managing their finances.
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 survey shows 53 per cent of Malaysians are saving to prepare for their futures. However, 22 per cent 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. There are 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.