The impact of attitude on money management practices

AuthorDorjana Nano
PositionUniversity 'Eqrem Cabej', Gjirokastër, Albania
ISSN 2410-759X
Acces online at
Balkan Journal of Interdisciplinary Research
IIPCCL Publishing, Tirana-Albania Vol. 1 No. 2
September 2015
The impact of attitude on money management practices
Dorjana Nano
University “Eqrem Cabej”
Gjirokastër, Albania
Money attitude and behaviour has been on focus of many academics and practitioners
for decades. Studies undertaken on university students segment have shown that positive
attitude towards personal finances fosters reasonable financial decisions. This study
aims to reveal the relationship between financial attitude and money management
practices in the case of Albanian university students. The database for this research is
provided by a survey conducted on 637 students from eight universities across Albania.
Factor examination and Cronbach Alpha test are considered to explore the consistency
and validity of each subsection of the questionnaire. The association between money
attitude and financial behaviour is examined by utilising the Pearson correlation and
the Ordinary Least Square techniques. Results of both methods conform that students
attitude towards personal finances has a positive impact on their financial behaviour. In
concert with previous studies, this research suggests that better financial attitude is
associated with healthier financial behaviour. Results of this study will be worthy for
parents, universities and financial institutions, which can give their contribution to
improve students financial attitude. Further qualitative and quantitative studies can be
undertaken to deeply gain insight in factors impacting students’ financial behaviour.
Keywords: money attitude, money management practices, Albanian university students.
1. Introduction
Students’ financial behavior has been on focus of many debates and research studies
for many decades. The majority of students in Albania experience financial
independence when they start university studies. They face many difficulties on
money management practices since they have to pay bills on time and meet the
needs. University students make up an important segment of the tomorrow market.
Researchers suggest that even with a modest amount of income you can build
financial success by exercising best practices on money management (Shim et al.,
2009). Best money management practices are mostly conceptualized as: “regular
generation of financial statements; budgeting; control of spending; recording
incomes and expenses; and tax, insurance, investment, retirement and estate
planning” [Musk & Winter, 1998; Nano, 2014; Llukani et al., 2015; etc].
Unfortunately studies conducted on this field have shown that students do not
take prudent financial decisions. In an investigation of money management practices
among Education college students, Henry et al. (2001) analyzed survey data provided
by 126 students at the University of Louisiana at Lafayette. The researchers
administered a 13-item questionnaire including questions gathering information
about personal characteristics, income, credit and budgeting practices. Data were
analyzed by computing the frequency distribution and Pearson Chi-Square. Results
showed that students were not willing to spend the time and effort necessary to

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