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Ref : _______

UEL Royal Docks Business School, University of East London Date : _______

Dear Sir / Madam,

RE: DISSERTATION SURVEY QUESTIONAIRE – “Financial literacy and personal


financial management practices amongst working adults in Klang Valley, Malaysia “.
_________________________________________________________________________
___

This research in undertaken in pursuant to the requirements of a Masters Degree (MBA,


International Business) as part of my dissertation. I would be grateful to obtain your kind
assistance, cooperation and response if you could complete the attached questionnaire.
Information gathered in this research will be treated with utmost confidentiality and will
remain anonymous, to be strictly used for the purpose of this academic research only.

The objective of this research is to study individual financial literacy level and their personal
financial management practices amongst working adults in Klang Valley in line with
Malaysia’s concern over the high debt levels, increasing bankruptcy rate and low savings
rate. This research paper is therefore aimed to:

1. determine financial literacy level amongst working adults in Klang Valley;


2. identify patterns of financial literacy based on demographic factors ; and
3. identify if there is any relationship between financial literacy level and financial
management practices.

The research findings will help in understanding the current financial literacy amongst
working adults in Malaysia in addition to ascertaining if there is any relationship between
financial literacy level and personal financial management practices amongst individuals.
Such awareness of the literacy level will provide a better understanding of the issues and
challenges to help facilitate or improvise on current and future educational programs. The
findings may also highlight gaps useful for policy makers related to the personal financial
planning industry.

Your feedback and response is crucial to the success of my research.

Your prompt reply is highly appreciated. I would be grateful if you can return this
questionnaire to me latest by 15 September 2013 either by email or I will come to collect
them from you personally.

Please do not hesitate to get in touch with me in the event you require further clarification in
completing the survey.

Thank you for your support and valuable time to participate in this survey.

Yours sincerely,
Sydney Wong
Email: sydney-wong@hotmail.com

INSTRUCTIONS
Please answer all the questions in this survey.
UEL Royal Docks Business School, University of East London

SECTION 1: GENERAL INFORMATION

1. What is your knowledge level of personal finance? Mark only one (X)

Very knowledgeable
Somewhat knowledgeable
Not very
Not knowledgeable at all

2. Rank your most influential to the least influential sources of financial education in
making financial decisions. Rank 1 (being the most influential) to 5 (being the least
influential).

Parents
College / university
Friends / colleagues
Personal readings / seminars / workshops / classes
Personal experience

SECTION 2: FINANCIAL LITERACY


Please mark (X) at the relevant spaces provided for, one answer per question.

1. On personal financial knowledge:


Personal financial literacy can help you

Avoid being customised by financial scams


Buy the right kind of insurance to protect you from catastrophic risk
Learn the right approach to invest for your future needs
Lead a financially secure life through forming healthy spending habits
Do all the above

2. On personal financial planning:


Personal financial planning involves

Establishing an adequate financial record keeping system

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UEL Royal Docks Business School, University of East London

Developing a sound yearly budget of expenses and income


Minimising taxes and insurance expenses
Preparing plans for future financial needs and goals
Examining your investment portfolios to maximise returns

3. Assume you’re in your early twenties and you would like to build up your nest egg for a
secure retirement in 30 years. Which of the following approaches would best meet your
needs?

Start to build up your savings account at federally insured bank


Save money in certificate of deposit accounts
Put monthly savings in a diversified growth mutual fund
Invest in long-term Treasury bonds
Accumulate money in a safe-box rented from a local bank

4. On compound Interest :
Suppose you have RM100 in a savings account and the interest rate was 2% per year.
After 5 years, how much do you think you would have in the account if you left the
money to grow?

More than RM102


Exactly RM102
Less than RM102

5. On inflation :
Imagine that the interest rate on your savings account was 1% per year and inflation was
2% per year. After 1 year, would you be able to

Buy more than the money in this account


Buy exactly the same as the money in this account
Buy less than today with the money in this account

6. On risk diversification :
When an investor spreads his money among different assets, the risk of losing money:

Increase
Decrease
Stay the same

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UEL Royal Docks Business School, University of East London

7. On time value of money :


Suppose you have a friend who inherits RM10,000 today and his siblings inherits
RM10,000 3 years from now. Who is richer because of the inheritance?

My friend
His sibling
They are equally rich

8. Long period returns :


Considering a long time period (for example 10 or 20 years), which asset normally gives
the highest return?

Savings account
Bonds
Stocks

SECTION 3: PERSONAL FINANCIAL MANAGEMENT PRACTICES


Please indicate the frequency by marking (X) at the relevant spaces provided (1 “Always” to
“Never”).

Most of the
1 Always 2 3 Sometime 4 Seldom 5 Never
time

1. Money management practices 1 2 3 4 5


1.1 Have you ever felt that your financial situation was out of
control
1.2 I set financial goals
1.3 I have plan to reach my financial goals and I follow the plan
1.4 I generally achieve my money management goals

2. Savings management practices 1 2 3 4 5


2.1 I save fixed amount or % of monthly income

2.2 I set aside money for future needs such as :


i.) Children’s education
2.3 ii.) Emergency
2.4 iii.) Retirement
2.5 I set aside money for my wants such as travelling

3. Expenditure management practices 1 2 3 4 5


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UEL Royal Docks Business School, University of East London

3.1 I track some or all of my expenses


3.2 I compare prices for major expenses
3.3 I often spend more than I can afford

4. Liabilities / Debt management practices 1 2 3 4 5


I pay off the full credit card outstanding amount every month
4.1
to avoid financial charges
I have to use credit card whenever I do not have enough
4.2
money in bank or cash to meet my monthly commitments
I pay my mortgage and hire purchase installments on time
4.3
every month.
I take up personal loan at least once a year to pay off other
4.4
debts.

5. Investment management practices 1 2 3 4 5


I invest my money based on the opinions of others such as
5.1
friends and family
I invest in different investment instruments i.e. share, bond,
5.2 unit trust, real estate with minimal knowledge and
understanding on it.
5.3 I spread my money across more than two type of investment.
I understand my risk profile of high, medium and low risk
5.4
taker.

SECTION 4: DEMOGRAPHIC FACTORS


Please mark (X) at the relevant spaces provided.

1. Age

21-30 31-40 41-50 51-60

2. Gender

Male Female

3. Race

Malay Chinese Indian Others

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UEL Royal Docks Business School, University of East London

4. Marital status

Single Married with Married without Divorce


children children

5. Annual income (Malaysia Ringgit)

Below 30k 31k-70k 71k-120k 121-200k 201k above

6. Education

Education level

Degree /
Certificate /
Secondary Professional Masters Doctorate
Diploma
qualifications

Academic discipline

Business major Non business major

Please ensure all questions are answered to ensure validly of this survey.
~Thank you for participating ~

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