KNOWLEDGE, ATTITUDE, PRACTICE AND SATISFACTION ON PERSONAL FINANCIAL MANAGEMENT AMONG THE MEDICAL PRACTITIONERS IN THE PUBLIC AND PRIVATE MEDICAL SERVICES IN MALAYSIA RAJNA A/P R.ANTHONY THESIS SUBMITTED IN FULFILMENT FOR THE DEGREE OF MASTER OF MEDICAL SCIENCE FACULTY OF MEDICINE UNIVERSITI KEBANGSAAN MALAYSIA KUALA LUMPUR 2011
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KNOWLEDGE, ATTITUDE, PRACTICE AND SATISFACTION ON PERSONAL FINANCIAL MANAGEMENT AMONG THE MEDICAL PRACTITIONERS
IN THE PUBLIC AND PRIVATE MEDICAL SERVICES IN MALAYSIA
RAJNA A/P R.ANTHONY
THESIS SUBMITTED IN FULFILMENT FOR THE DEGREE OF MASTER OF MEDICAL SCIENCE
FACULTY OF MEDICINE
UNIVERSITI KEBANGSAAN MALAYSIA KUALA LUMPUR
2011
PENGETAHUAN, SIKAP, AMALAN DAN KEPUASAN TERHADAP PENGURUSAN KEWANGAN PERIBADI DI KALANGAN
PEGAWAI PERUBATAN DALAM PERKHIDMATAN AWAM DAN SWASTA DI MALAYSIA
RAJNA A/P R.ANTHONY
TESIS YANG DIKEMUKAKAN UNTUK MEMPEROLEHI IJAZAH SARJANA SAINS PERUBATAN
FAKULTI PERUBATAN
UNIVERSITI KEBANGSAAN MALAYSIA KUALA LUMPUR
2011
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DECLARATION I hereby declare that the work in this thesis is my own except for quotations and
summaries which have been duly acknowledged.
8th. August, 2011 RAJNA A/P R ANTHONY P36892
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ACKNOWLEDGEMENT
I owe my sincere gratitude to my supervisor, Professor Dato’ Dr. Syed Mohamed Al’Junid who understood my desire to obtain this Masters degree and offered me to do a research that was close to my heart. His leadership, love and dedication for research have set an example I hope to follow someday. Special thanks to him for the guidance, advice, patience, encouragement and the trust he had in allowing me to work in my own way. I am grateful to my co supervisor, Associate Professor Dr. Sharifa Ezat Wan Puteh for being there when I needed her most. I will never forget her for squeezing time in between her busy schedule in accommodating me whenever I ran to her for help. She is simply great.
I am grateful to University Kebangsaan Malaysia and its post graduate administrative staff for their help, guidance, facilities, privileges and support given to me during my studies. I would also like to convey my humble gratitude to all the Medical Practitioners who took time and trusted me in giving out their personal cash–flow and net worth statements as required in the survey questionnaire for the benefit of their peers. I am indebted to the hospital heads where the survey was conducted for the aid and support given. Most of them became a respondent themselves. Thank you very much.
I am thankful to Banyaan Tree Wealth Advisors for their support in sponsoring to print additional copies of ‘smart financial management tips for doctors’ booklet as well as agreeing to generate free ‘blind-folded’ customized financial reports for each respondent as token of appreciation which otherwise would have burned a hole in my pocket.
I dedicate this thesis to my husband, Maria Pragasam, as I have no words to thank him. He has been my source of support morally and financially without whom I would have lost my sense of direction.
I am grateful to my sister, Lucy Santhana Mary who being a PHD student herself is a total professional with a very keen eye for the critical concepts during the writing up of this dissertation. She is my role model and I am indebted to her more than she knows.
I thank my Father, Mr. Anthony for keeping track of my every move during
the writing up stages of this dissertation and I salute my late Mother, Madam Maria Kannu who instilled the foundation and value of education that brought me where I am today. She would have been the most proud person at this moment should she had been alive. My special thanks to my children, Arravind, Shanil, Sanjieev and Vinod for their moral support; to Rafidah and Rita, our office staff for their assistance in this research; to Suriani, our home helper, for taking over the household chores.
And finally, all thanks to almighty God who through this study had used me as
an instrument to provide financial education and guidance to the help seeking medical practitioners along my survey interviews. I truly enjoyed the interviews and the study.
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ABSTRACT
Doctors learn money management by trial and error and often realise the mistakes and shortfalls at later stages of life. This study measured the levels of personal financial management knowledge, attitude and practice of the medical practitioners in Malaysia and identified their financial management trends, strengths and weaknesses. In this cross sectional study, a pre-tested questionnaire was used to conduct face to face interviews with randomly selected medical specialist and medical officers through a multistage sampling. A total of 402 (urban 46.0%, rural 54.0%) medical practitioners completed the questionnaire. The majority of the respondents were Malays (54.5%), followed by Indians (25.6%), Chinese (16.7%) and other ethnicity (3.2%). Medical officers comprised 64.2% of the respondents and 35.8% were specialists. Although, 76.4% of the respondents had a positive attitude towards personal financial management, only 33.6% of them had high financial knowledge and 34.6% practiced positive money management. Retirement and estate planning practices are the most neglected area where only 3.8% respondents had high scores. Doctors are generally dissatisfied with their financial management skills. Specialists scored significantly higher (p=0.010) in financial knowledge in the areas of credit (p=0.004) and investment (p=0.029) than medical officers. Male practitioners are financially more knowledgeable (p=0.040) and skilled (p=0.001) than female practitioners. Specialists are better credit managers than medical officers (p=0.001) whereas the private medical practitioners are better risk managers than doctors practicing in public hospitals (p=0.025). Among the ethnic groups, the Chinese doctors had the most positive attitude (p=0.017) towards financial management. There is no difference in the financial management pattern between the medical practitioners practicing in the public and private sectors, or between the rural and urban regions. Financial knowledge scores correlated significantly with financial attitude (r=0.231, p=0.001) and financial practice scores (r=0.321, p=0.001) but not with financial satisfaction scores. In conclusion, this study found that overall the medical practitioners in Malaysia has positive financial management attitude, but poor in both financial knowledge and financial management practice. This study sets groundwork for future research and calls for a strong need for a financial education programme to help medical practitioners make informed decisions for greater financial satisfaction.
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ABSTRAK
Doktor mempelajari pengurusan kewangan secara percubaan dan kerapnya menyedari kesilapan serta kekurangannya hanya pada usia lanjut. Kajian ini mengukur tahap pengetahuan, sikap dan amalan perancangan kewangan di kalangan pengamal perubatan di Malaysia dan juga mengenalpasti tren, kekuatan dan kelemahan mereka dalam aspek pengurusan kewangan. Dalam kajian keratan rentas ini, soal selidik yang telah dipra-uji digunakan untuk menemubual secara bersemuka pegawai perubatan dan pakar perubatan yang dipilih secara rawak melalui kaedah persampelan pelbagai peringkat. Seramai 402 orang pengamal perubatan (di bandar 46.0%, di luar bandar 54.0%) telah ditemubual dengan lengkap. Responden terdiri daripada bangsa Melayu (54.5%), India (25.6%), China (16.7%) and etnik lain (3.2%). Seramai 64.2% daripada responden ini adalah pegawai perubatan dan 35.8% pakar perubatan. Walaupun 76.4% responden mempunyai sikap pengurusan kewangan yang positif hanya 33.6% mempunyai tahap pengetahuan kewangan yang tinggi dan 34.6% mengamalkan pengurusan kewangan yang positif. Perancangan persaraan dan pegurusan harta adalah komponen yang diabaikan di mana hanya 3.8% responden sahaja mendapat skor tinggi. Secara amnya doktor tidak berpuashati dengan kemahiran pengurusan kewangan mereka. Didapati pengetahuan kewangan pakar perubatan adalah lebih tinggi (p=0.010) dalam pengurusan kredit (p=0.004) dan pengurusan pelaburan (p=0.029) berbanding dengan pegawai perubatan. Pengamal perubatan lelaki mempunyai pengetahuan (p=0.040) dan kemahiran (0.001) pengurusan kewangan yang tinggi berbanding wanita. Pakar perubatan lebih arif dalam pengurusan kredit berbanding pegawai perubatan (p=0.001), manakala pengamal perubatan swasta adalah pengurus risiko yang lebih baik berbanding pengamal perubatan kerajaan (p=0.025). Dikalangan kumpulan etnik, doktor berbangsa Cina mempunyai sikap yang lebih positif (p=0.017) terhadap pengurusan kewangan berbanding bangsa lain. Tiada perbezaan dalam corak pengurusan kewangan di antara pengamal perubatan swasta dan kerajaan atau di bandar dan di luar bandar. Skor pengetahuan kewangan mempunyai korelasi yang signifikan dengan skor sikap (r=0.231, p=0.001) dan skor amalan (r=0.321, p=0.001) tetapi tidak dengan skor kepuasan kewangan. Kesimpulannya, pengamal perubatan di Malaysia mempunyai sikap yang positif tetapi kekurangan dalam pengetahuan dan amalan pengurusan kewangan yang baik. Kajian ini merupakan perintis bagi kajian lanjutan di masa depan dan menunjukkan keperluan suatu program pendidikan kewangan yang dapat membantu pegawai perubatan membuat keputusan secara bermaklumat bagi mencapai kepuasan kewangan.
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CONTENTS
Page
DECLARATION ii
ACKNOWLEDGEMENT iii
ABSTRACT iv
ABSTRAK v
CONTENTS vi
LIST OF TABLES ix
LIST OF FIGURES xii
LIST OF ABRREVIATIONS xiii
CHAPTER I INTRODUCTION
1.1 Background of Study 1
1.2 Research Justification 2
1.3 Research Questions 5
1.4 Study Objectives 6
1.4.1 General objectives 6
1.4.2 Specific objectives 6
1.5 Research hypotheses 7
CHAPTER 2 LITERATURE REVIEW
2.1 Introduction to Research 8
2.2 Variables Related to Personal Financial Management 10
2.2.1 Demographic variables 10
2.2.2 Financial knowledge 11
2.2.3 Financial attitude 12
2.2.4 Financial practice 13
2.2.5 Financial satisfaction 14
2.3 Conceptual and Theoretical Framework 15 2.4 Summary 17
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CHAPTER 3 RESEARCH METHODOLOGY
3.1 Introduction 18
3.2 Study Design 19
3.3 Study Location 19
3.4 Sampling Method 21
3.5 Sampling Population 22
3.6 Sampling Unit 22
3.7 Sampling Frame 22
3.8 Sampling Saiz 23
3.9 Sample Saiz Calculation 24
3.10 Sample Inclusion 27
3.11 Sample Exclusion 27
3.12 Study Instrument 27
3.13 Questionnaire Administration and Arrangement 29
3.14 Questionnaire Validation 30
3.15 Reliability of Questionnaire 31
3.16 Pilot Study 31
3.17 Research Ethics 32
3.18 Data Analysis 32
3.19 Conclusion 33
CHAPTER 4 DATA ANALYSIS
4.1 Introduction 34
4.2 Distribution and Collection of Questionnaires 34
4.2.1 Challenges in data collection 34
4.2.2 Collection of questionnaires 35
4.3 Descriptive Analysis 37
4.3.1 Demographic characteristics 37
4.3.2 Financial management knowledge 40
4.3.3 Financial management attitude 47
4.3.4 Financial management practice 51
4.3.5 Financial satisfaction 77
4.3.6 Financial knowledge, attitude, practice and satisfaction 82
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4.4 Bivariate Analysis 82 4.4.1 Relationship between financial management 83
knowledge scores with rank, sector and location.
4.4.2 Relationship between financial management 85 attitude scores with rank, sector and location.
4.4.3 Relationship between financial management 86 practice scores with rank, sector and location 4.4.4 Relationship between financial management 90
knowledge, attitude, practice scores and demographic characteristics
4.4.5 Financial management satisfaction 98 4.5 Correlation between financial knowledge, attitude, practice
and satisfaction 100
CHAPTER 5 DISCUSSION AND CONCLUSION
5.1 Introduction 102
5.2 Discussion and research findings 102
5.3 Study Limitations 111
5.4 Conclusion 114
REFERENCES 117
ATTACHMENTS A Invitation to take part in the study 123 B Consent to Participate in the study 125 C Request for a report 126 D Questionnaires 127
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LIST OF TABLES
Number of table Page 3.1 Distribution of hospitals in Malaysia according to states 18 3.2 Distribution of research location 19 3.3 Selected hospitals in urban region 20 3.4 Selected hospitals in rural region 20 3.5 Flow Chart of sampling method 21 3.6 Number of registered medical doctors in the selected states 23 3.7 Distribution of number of sample to be collected 25 3.8 Distribution of medical practitioners in the private and public services 25 3.9 Number of doctors interviewed in each region of the states 26 3.10 Specific sampling location 26 3.11 Outline of questionnaire structure 27 3.12 Cronbach's coefficients for financial management variables 31 4.1 Distribution and collection of the survey forms 36 4.2 Demographic characteristics 37 4.3 Financial management knowledge sub scale 40 4.4 Financial management knowledge scores 41 4.5 Financial management knowledge mean scores 45 4.6 Financial management knowledge score categories 46 4.7 Financial management attitude scores 47 4.8 Financial management attitude mean score 50 4.9 Financial management attitude score categories 50 4.10 Cash management practice score 52 4.11 Cash management practice mean score 53
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4.12 Cash management practice score categories 54 4.13 Credit management practice scores 56 4.14 Gender vs. Number of credit cards 57 4.15 Sector vs. number of credit cards 59 4.16 Age vs. number of credit Cards 60 4.17 Ethnicity vs. number of credit cards 62 4.18 Rank vs. number of credit cards 63 4.19 Credit management practice mean score 65 4.20 Credit management practice score categories 66 4.21 Retirement and estate management practice scores 67 4.22 Retirement and estate management practice mean score 68 4.23 Retirement and estate management practice score categories 69 4.24 Risk management practice scores 71 4.25 Risk management practice mean score 72 4.26 Risk management practice score categories 73 4.27 General financial management practice scores 73 4.28 General financial management practice mean score 74 4.29 General financial management practice score categories 75 4.30 Financial management satisfaction scores 77 4.31 Financial management satisfaction mean scores 80 4.32 Financial management satisfaction score categories 80 4.33 Relationship between financial management knowledge 83 mean scores with rank, sector and location 4.34 Relationship between financial management knowledge 84 sub scale mean scores with rank
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4.35 Relationship between financial management attitudes 86 scores with rank, sector and location of practice 4.36 Relationship between financial management practices 87 scores with rank, sector and location of practice. 4.37 Relationship between financial management practices 88 sub-scores and location of practice 4.38 Relationship between financial management practices 89 sub-scores and sector 4.39 Relationship between financial management practices 90 sub scores and rank 4.40 Relationship between financial management knowledge, 91 attitude and practice scores with age 4.41 Relationship between financial management knowledge, 92 attitude and practice scores with gender 4.42 Relationship between financial management knowledge, 93 attitude and practice scores with marital status 4.43 Relationship between financial management knowledge, 94 attitude and practice scores with ethnicity 4.44 Relationship between financial management knowledge, 95 attitude and practice scores and years in service 4.45 Relationship between financial management knowledge, 96 attitude and practice scores with undergraduate studies 4.46 Relationship between financial management knowledge, 97 attitude and practice scores with postgraduate studies 4.47 Relationship between financial management knowledge, 98 attitude and practice scores with family financial status 4.48 Financial management satisfaction of medical practitioners 99 4.49 Correlation between knowledge, attitude, practice and satisfaction 100
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LIST OF FIGURES
Number of List Page
1.0 Financial management model 16
4.1 Six areas of financial management knowledge 44
4.2 Item analysis of financial management knowledge 44
4.3 Financial management knowledge mean scores 45
4.4 Financial management knowledge level 46
4.5 Financial management attitudes mean scores 50
4.6 Financial management attitude level 51
4.7 Cash management practice mean score 54
4.8 Cash management practice level 55
4.9 Gender vs. number of credit cards 57
4.10 Sector vs. number of credit cards 58
4.11 Age vs. number of credit cards 60
4.12 Ethnicity vs. number of credit cards 61
4.13 Rank vs. number of credit cards 63
4.14 Credit management practice mean score 65
4.15 Credit management practice level 66
4.16 Retirement and estate management practice mean score 69
4.17 Retirement and estate management practice level 70
4.18 Risk management practice mean score 72
4.19 Risk management practice level 73
4.20 General financial management practice mean score 75
4.21 General financial management practice level 76
4.22 Overview financial management practice 76
4.23 Overall financial management practice level 77
4.24 Item analysis of financial management satisfaction score 79
4.25 Financial management satisfaction score 80
4.26 Financial management satisfaction level 81
4.27 Summary of knowledge, attitude, practice and satisfaction
score levels. 82
4.28 Correlation between knowledge, attitude, practice and
financial satisfaction 101
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LIST OF ABRREVIATIONS
1. Medical Practitioners : are those who hold a medical degree and who are
either medical officers or specialist currently practicing in the Government or private medical services in the rural and urban parts of Malaysia..
2. Financial Management Knowledge: The ability to make informed judgments and to take effective decisions regarding the use and management of money. In this study, it is the input into the system
3. Financial Management Attitude: Attitude is defined as “psychological
tendency that is expressed by evaluating a particular entity with some degree of agreement or disagreement. In this study, it is the throughput into the system but also acts as input to the managerial subsystem.
4. Financial Management Practice: Competency in managing personal
finance. It is a set of behaviours regarding planning, implementing and practicing the financial management process of cash, credit, risk, investment, retirement/estate planning and general management practices. It acts as a throughput into the system for this study.
5. Financial Satisfaction: Financial satisfaction is the subjective evaluation of one’s financial status of being happy and free from financial worries. In this study, it is the output from the system.
6. Urban City: For the purpose of this study, the most densely populated city
in the region in the selected state which has both private and public hospital in the country is referred as the urban location.
7. Rural City: For the purpose of this study, the least populated city in the
selected state in Malaysia which has a public and private medical centre or private clinics was referred as the rural city.
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF STUDY
Building a medical practice can bring many rewards and many responsibilities but
success has a price. As a medical professional it is often a struggle to balance the
many different aspects of a busy life (www.emoneyadvisor.com). The more financial
success a physician has the more time it takes to manage it. As the wealth grows, life
does not get simpler but it gets much more complex. How well do these professionals
keep track of their finances when they are busy striving for a successful medical
practice? Are their assets working as hard as they are? How much time are they
allocating to manage their wealth? How financially competent are these practitioners?
Financial management has been an age old complication. Ever since trade
began among humans, there had been a search for an equitable and fair medium of
exchange. It was the barter trade centuries ago which gave rise to conflicts between
traders as they could not reach to a settlement on the values of the goods being
exchanged, that led to the introduction of money. Till today, we can never tell how
many chicken had been exchanged for a goat. Although the introduction of money
had solved this problem by providing us a standard medium of exchange, it has also
created a complexity towards its management. Financial management today has
become a greater challenge than the barter trade “from the frying pan into the fire.
Managing finances as a subject is rarely taught in schools or colleges except
for a few specialized post school diploma or degree courses that focus on finance
(Education Times of India, 2005). Personal financial management in Malaysia is an
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important issue today. Handling money takes discipline. It does not solely revolve
around one’s saving ability but it encompasses budgeting, investing, insuring, taxation
and much more. Researchers have shown that financial knowledge and money
management skills are indispensable to making good financial decisions (Titus et al.,
1989). People can lead a better life and receive greater respect when they have control
of their money (Leadership through financial management and security, 1986).
Physicians are among the highest paid profession says Stanley and Donna
(1990). The salary range of physicians and their earnings vary according to the
number of years in practice, geographical region, hours worked, skill, personality and
professional reputation. But they tend to learn money management skills by trial and
error and often realize the mistakes and shortfalls at later stages of life (Lawrence F.
2001). This causes valuable investment time lost in terms of time value money.
In Malaysia, a Credit Counselling and Debt Management Agency (AKPK), a
subsidiary of Bank Negara wants final-year undergraduates to take up a course in
personal financial management because many of them are not very savvy in handling
their personal finances when they join the workforce, (Sunday Star, Nov 5, 2006).
Credit Counselling and Debt Management Agency in Malaysia was set up by Bank
Negara Malaysia to provide money managements skills, credit counselling, financial
education and debt restructuring for individuals at free of charge services.
1.2 RESEARCH JUSTIFICATION
The medical profession has, in the past few decades, achieved impressive gains in the
battle against sickness, suffering and death. Diseases that killed their victims just a
generation ago are now manageable, curable or even preventable. Yet physicians seem
remarkably inept at maintaining their own health and wellbeing (Textbook of family
practice, sixth edition, by Rakel, 2002). The medical profession requires staying on
top of an ever-expanding field of medical knowledge, being skilful at a wide range of
medical techniques and skills, making the right treatment decisions even when the
physicians are fatigued, hassled or angry. Every physician’s problem has an emotional
compound, and although the financial factor is usually minimal, it can be extremely
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significant. Personal finance-work conflict such as decreased productivity,
increased tardiness, increased absenteeism, work time use, negative organizational
commitment, pay dissatisfaction, poor morale are some of the negative factors that
interferes with workers overall effectiveness (Jinhee Kim, 1999). A study conducted
by Jamal Al-Najjar, of Sana’s University in Yemen found that Yemeni doctors suffer
physical and psychological symptoms of stress as a result of administrative, financial
and social issues while working in the public hospitals. The stress, not only affecting
the physicians’ health, it also is affecting the quality of health care they give to
patients. The study also found that financial difficulties are the primary source of
stress for physicians and general practitioners (Jamal Al-Najjar, 2008). As such, the
financial health of any profession has an impact on their mental health but in the case
of a medical practitioner, it is a gamble on patients’ life when the medical
practitioners’ financial health is at risk. Therefore the financial wellbeing of medical
doctors needs to be addressed.
On May 11th. 2005, Dr. Cheah T.E. has reported in the Malaysian Daily, the
New Straits Times, that ‘In Malaysia, it is common to find young Government
Medical Officers and perhaps specialists, work as locums in many private clinics and
hospitals throughout the country. The reasons are usually monetary in nature –
unable to meet financial demands especially in the urban areas like Klang Valley and
Johore Bahru where living expenses are raising exponentially; these medical
professionals are forced to work hard as locums when desperation of trying to make
ends meet becomes overwhelming. Some do locum almost daily or at every
opportunity. They would prefer otherwise’. He has further reported that ‘doctors are
often confused with Mother Theresa. With bills to pay, a family to upkeep and ever
increasing post-graduate examination fees, current salary schemes are doing great
injustices to a profession requiring so many years of sacrifice. Spiralling living
standards do not help either’ says Dr. T.E. Cheah. (NST report, 2005). The same
daily, in another article in the following year has reported that the doctors work as
locums to keep up with their professional image and lifestyle (New Straits Times,
May 2006). They allow their egos to become too closely identified with their success.
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Physicians are using a variety of strategies to increase their income. Some
are buying diagnostic equipments and offering patients tests, such as x-ray,
ultrasound, PET scans in their clinics instead of referring the patients to the hospitals.
They are ordering more tests than needed. Some other doctors are enrolling patients in
clinical trials for pharmaceutical companies to collect more fees. Dr. Tara Bishop
(2010) of Mount Sinai School of Medicine in New York and colleagues examined
how frequently five common lab tests, including cholesterol and electrolyte tests, were
ordered at group practices. Using data from a national survey on private practices,
they compared ordering by primary care physicians and specialists who either owned
or didn't own their group practice and who did or didn't have labs in their offices.
Practice owners with labs often make a profit on tests done in those labs. When
financial pressure to keep up the lifestyle the doctors seek becomes intense, patients’
referral for specific specialist treatment can be overlooked. It is public perception that
medical professionals are informed consumers and excellent money managers due to
their impressive lifestyle but the actual financial wellbeing need to be assessed.
Another financial survey carried out by Lawrence Farber, Medical Economics
(2001) in United States, concluded that more young doctors were worst off in year
2000 than they were in the year before. These doctors can’t keep up with inflation and
the rising cost of commodities. They are generally married, and most have
dependents, at least two. Almost 70 percent of these physicians own a home by age
34, and 90 percent do by age 39. Because owning such assets typically means owing,
many young doctors said money has significant impacts on their self esteem and their
work related behavior.
Medical Economics financial surveys (Robert Lowes, 2005) in the year 2001
and 2004 indicated financial instability in physicians particularly doctors younger than
35 years old (medical Economics, 2005). Many of these professionals are only
successful in their later part of their lives. There are several factors contributing to
this. New to the world of finance, young physicians take charge of their own financial
future with little or no experience. They admit they lack the knowledge and guidance
to manage their money. They follow peer financial method duplication and
dependency towards a single financial advisor (spouses being advisors in some cases).
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Older physicians are somewhat more likely to rely on single service providers such as
insurance/unit trust agents and stock market remises (Medical Economics, 2001).
Over the last several years, in Malaysia, the issue of financial literacy seems to
have risen but till to date there is hardly any study focused on the relationship between
financial knowledge, financial attitude and financial practice on money management
among the medical practitioners. To address these doctors' personal financial
deficiencies there ought to be a study that will guide them how to appropriately
maximize the management of their money.
In summary, this study sets groundwork for future research efforts and this
will definitely have a positive national developmental implication as well.
1.3 RESEARCH QUESTIONS
This study attempts to answer the following questions:
1. What is the level of financial management knowledge of medical
practitioners in the private and public medical services in the urban and
rural parts of Malaysia?
2. What is the level of financial management attitude of medical
practitioners in the private and public medical services in the urban and
rural parts of Malaysia?
3. What is the level of financial management practice of medical
practitioners in the private and public medical services in the urban and
rural parts of Malaysia?
4. What is the relationship between the demographic characteristics of the
medical practitioners and their financial management knowledge, attitude
and practice in Malaysia?
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5. What is the level of financial management satisfaction of medical
practitioners and how this correlates to their financial knowledge, attitude
and practice?
1.4 STUDY OBJECTIVES
1.4.1 General Objective
The purpose of the study is to identify the levels of financial knowledge, f attitude,
and practice of the medical practitioners in Malaysia and to correlates these to their
financial management satisfaction. This study will have significance in future
research to develop a benchmark measure of the financial management knowledge,
attitude and practice across the entire Malaysian doctors’ population so that the
financial management trends of these group of professionals can be measured and
programmes can be targeted at areas of need.
1.4.2 Specific Objectives
To measure the levels of financial management knowledge of medical practitioners in
the private and public medical services as well as in the urban and rural parts of
Malaysia.
To evaluate the financial management attitude of medical practitioners in the
urban and rural parts of Malaysia.
To determine the financial management practice of medical practitioners in the
urban and rural parts in Malaysia
To analyse the relationship between the demographic characteristics (age,
gender, income, ethnicity, marital status, family background, financial exposure and
geographical location of practice) of the medical practitioners and their financial
knowledge, attitude and practice in managing their finance.
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To undertake the analysis of financial satisfaction of the medical practitioners
who participate in this study by determining their present financial wellbeing by
calculating their present net worth and financial cash flow. This in turn will be
correlated to financial knowledge, financial attitude and financial practice of the
medical practitioners.
1.5 RESEARCH HYPOTHESES
Based on the research questions raised, the following hypotheses will be tested.
H1: There is a significant difference in the level of personal financial management
knowledge among the medical practitioners in the public and private medical services
in Malaysia.
H2: There is a significant difference in the level of personal financial management
attitude among the medical practitioners in the public and private medical services in
Malaysia.
H3: There is a significant difference in the level of personal financial management
practice among the medical practitioners in the public and private medical services in
Malaysia?
H4: There is an association between the demographic characteristics (age, gender,
marital status, ethnicity, years in service, family financial status, and financial
exposure during undergraduate and postgraduate studies) of the medical practitioners
and their financial management knowledge, attitude and practice.
H5: The medical practitioners in the private sector are more satisfied with their
financial well being than the doctors in the public sector.
CHAPTER 2
LITERATURE REVIEW
2.1 INTRODUCTION TO RESEARCH
The practice of medicine in Malaysia for both the public and private sector is
governed by the Medical Act 1971, and bounded by the professional code of conduct
by the Malaysian Medical Council. The subjects thought in a medical school are basic
sciences, clinical medicine, medical ethics, legal medicine, disease prevention,
healthcare delivery, communicating skills and research methodologies but not one
medical school covers the basic aspects of neither financial planning nor money
management skills as subjects.
Doctors go through many transitional changes in their lives. From a mere
houseman to a well respected, honoured specialist and consultants. A hospital doctor
begins his career as a medical officer in the hierarchy, then senior medical officer,
registrar, senior registrar, and finally to consultant status in a particular specialty. Like
most successful people these doctors continuously strive to make smart decisions that
will make where they are today.
Doctors have long complained that they lack the time to give their investments
proper attention. (Lawrence, Medical Economics, 2001). The journal also cited that
the internet may be helping to solve this problem. Two thirds of survey respondents
in their study were younger than forty years and about half of their elders use the web
to monitor their investments. Their study reported that most young doctors also go
online for help with picking investments, but only a minority of older doctors uses the
computer. Conversely, older physicians are somewhat more likely to rely on money
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manager, financial planner, or investment counsellor. More than half of doctors forty
years or older had one financial planner, compared with four in 10 of those younger
than forty. Doctors with income of at least $250,000 were fifty percent more likely to
use a paid advisor than those earning less than $150,000 (Lawrence, Medical
Economics, Jun 2001).
Financial management have always been mistaken for financial planning. In
financial planning the key is planning and it encompasses 5 areas; initial assessment
and evaluation, setting goals, creating a plan, executing the plan and monitoring as
well as reassessing the financial status (Kwok et al, 1994). The definition of financial
management on the other hand, is not so simple. Jodi,(1996) defined financial
management as a set of behaviour performed regarding the planning, implementing
and evaluating involved in the areas of cash, credit, investments, insurance, and
retirement and estate planning. This definition is similar to Deacon &
Firebaugh,(1988); Godwin, (1994) and Godwin & Koonce, 1992. Other researchers,
Davis & Carr, 1992; Hira et al.,1992; Mugenda et al.,1990; Porter & Garman, 1993;
Titus et al., 1993, have defined financial management as a set of behavioural
indicators, such as budgeting and record keeping but Coleman & Ganong, 1989 and
Morris & Ruane, 1989 had defined it as pooled income versus separate income.
Other definitions such as the division of labour and role specialization with respect to
decisions made regarding finances by Hiller and Philliber, 1986, is also noted.
The on line Wikipedia encyclopedia has defined personal financial
management as the application of the principles of finance to the monetary decisions
of an individual or family unit. It addresses the ways in which individuals or families
obtain, budget, save, and spend monetary resources over time, taking into account
various financial risks and future life events. Components of personal finance might
include checking and savings accounts, credit cards and consumer loans, investments
in the stock market, retirement plans, social security benefits, insurance policies, and
income tax management.
Two factors that have an impact on financial management practice in general
are financial knowledge and financial attitude (Eagly A. & Chaiken, S. 1993). A
10
number of researches have concluded that financial attitudes play an important role in
determining a person’s level of financial satisfaction (Davis et al., 1987). Individuals
express different money behaviors and beliefs because of the different ways in which
money was handed in the family. The behavioral pattern developed during childhood
may continue through adolescence and into adulthood. Parents appear to be
significant at influencing their children’s money beliefs (Hira, 1997).
Tahira, 1987 in her report on ‘The Personal Financial management: The need
for education’ for the United States Senate Committee on Banking, Housing and
Urban Affairs has cited her own study on the money management knowledge level of
college students. She identified the student characteristics that help explain differences
in money management knowledge that covered credit cards, insurance, personal loans,
record keeping and overall financial management. The students demonstrated low
levels of knowledge in insurance, credit cards and overall financial management areas.
The college students often know general facts about money management topics, but
they lack knowledge of specifics. (Tahira, 1987)
Jodi et al. (1998) pointed out that to-date very little research in the financial
management literature has been conducted on the relation ship between financial
attitude and financial management. However substantial research has been carried out
on the relationship between financial knowledge and financial management (Godwin
et al., 1994). No study till to-date has investigated the combined effect of financial
knowledge and financial attitudes and financial practice on financial managements.
Thus there is a need to study the correlation between knowledge, attitude and practice
on money management.
2.2 VARIABLES RELATED TO PERSONAL FINANCIAL MANAGEMENT
2.2.1 Demographic Variables
Researchers have reported that a number of factors appear to influence financial
management. Among the most common factors are social-demographic characteristics
such as age, gender, ethnicity, marital status, number of children, income, family
11
values and educational environments (Ackerman et al., 1987). Hira,(1987) reported
that age, net income and occupation were the most important socio demographic
variables in explaining differences in asset ownership of households.
Studies have shown that the family has an important influence on consumer
behavior. Individuals express different money behavior and beliefs because of the
different ways money was handed in the family. The behavioral patterns developed
during childhood may continue through adolescence and into adulthood (Hira, 1997)
2.2.2 Financial Knowledge
Financial knowledge, for the purpose of this study is defined as: “The ability to make
informed judgments and to take effective decisions regarding the use and management
of money”. (ANZ-Retirement Commission). Definitions of financial knowledge have
varied from ‘any training in financial management’ (Godwin, 1994) to “completion of
a consumer education course” (Godwin et al., 1986). Financial knowledge, regardless
of how it has been defined and measured, it has been shown to have a significant
impact on financial management (Jodi et al, 1998). Financial understanding on
inflation, rate of return, compounding rate of return over time, investments vehicles,
risks management are some of the examples of financial knowledge. Justin reported
49% of study respondent had positive scores for financial knowledge and ANZ
financial knowledge survey, 2006 reported an average of 33% of all respondents
scored positive for knowledge on money management.
Financial Literacy deficiencies can effect an individual’s or family’s day-to-
day money management and ability to save for long term goals such as buying a
home, seeking higher education, or financing retirement (Sandra et al., 2002). On the
other hand, Mitch Anthony (2002), in his book, Your Client for Life, has quoted that
‘financial intelligence is a broader topic as the fact that smart people tend to make
foolish decisions with their money because of unawareness. One can hypothetically
become a walking encyclopedia of financial jargon and continue to throw hard-earned
money down sinkhole of ill-advised risks as a result of such unawareness’. The five
areas of money management knowledge covered by Hira, (1987) in her studies are
12
credit cards, insurance, personal loans, record keeping and overall financial
management. Mugenda et al. (1990) and Titus et al (1989) used a 22- item measure of
financial knowledge and found a significant effect for knowledge on money
management. Patricia et al, 1989 and Parotta et al, 1998, in their research have
illustrated that the money managers who were more knowledgeable practiced more
recommended planning and implementing behaviors than less knowledgeable money
managers.
Similar to Tahira’s study (987), Justin, 2003 has reported that college students
demonstrate inadequate levels of financial knowledge. Students score lowest on
measures of financial knowledge. High school seniors score less than 40% on the
financial knowledge associated with credits, bank accounts and auto insurance (Justin,
2003). Thus researchers have established the positive influence on financial
knowledge on money management practices.
2.2.3 Financial Attitude
Financial attitude for the purpose of this study is defined as “the application of
financial principles to create and maintain value through decision making and proper
resource management.
Attitude is defined as “psychological tendency that is expressed by valuating a
particular entity with some degree of favor or disfavor (Eagle & Chaiken, 1993).
Therefore, financial attitude can be considered as the psychological tendency
expressed when evaluating recommended financial management practices with some
degree of agreement or disagreement (Jodi et al.,1998)
Dr. Kathleen Gurney, a money psychologist and the CEO of Financial
Psychology Corporation, USA, in her ‘Understanding Your "Financial Personality"
article has quoted that understanding one’s money style will help gain insight into
how and why one react emotionally towards money and how it affects financial
success or lack of success. Since 1981, she has researched the reasons why people
earn, spend, save and invest in the ways they do. She interviewed individuals from
13
across the United States, seeking clues to their financial traits. Thirteen personal
financial traits were discovered and nine distinct financial personality groups were
identified whose members share similar attitudes about money management and
investing.
In 1997, Tahira’s study on financial attitudes, beliefs and behaviors showed
that 69% of the respondents indicated that the most important source of influence on
their money beliefs and attitudes was either their mother or their father (Hira, 1997).
Her results confirmed the findings of previous studies showing the importance of
parental involvement in shaping money attitude and behaviors of children. Other
researchers have shown that parental influences significantly exceed all other
interpersonal influences. Childhood experiences including the parents’ way of
handling money, the opportunity to be involved in specific financial tasks and the
influence of socialization all play an important role in shaping one’s money
personality.
Dave Ramsey, on CBS/The early Show (a New York radio talk show, Nov.
2006) said that it isn’t a simple lack of money that keeps people from achieving
‘financial peace’. Instead, it’s their attitude and approaches to money that acts as
barrier to financial peace.
2.2.4 Financial Practice
Financial experiences greatly influence how an individual perceives and responds to
money management. Studies have examined the specific practices of budgeting,
saving and credit and found that budgeting is viewed to be a critical financial
management practice. House saiz, income, age of household head and labor force
characteristics are among the factors found to influence the savings behavior of
families (Corrado et al., 1980). However, income has no effect on the extent of
budgeting (Beutler et al., 1987). On the other hand, Heiferen, in 1982, had presented
that the decision to save is influenced by income, and the level of savings is
influenced by total assets, housing tenure, and education. (Patricia et. al, 1989).
Managing personal finances is one of the most basic competencies required by all.
14
Households were more likely to have a higher level of net worth if the money
managers used optimum planning practices recommended (Patricia et al., 1989).
Household credit data book, 1989 indicated that in United States, higher proportion of
families’ monthly income goes to repay credit card debt. Despite a growing national
economy and increases in real family income during 1980, Deborah, (1990) quoted
that there are enough evidence to suggests that more families are experiencing
problems managing their finances. Increasingly families are seeking help from
professionals with managing their money (Deborah, 1990).
As families seek to improve the management of their economic resources and
develop plans for strengthening their financial position in the future, a logical first step
is to determine their present financial position. A common tool used to determine
financial well-being is the net worth statement, a personal balance sheet itemizing the
assets and liabilities of the household, with total net worth being the difference
between the two (Carole, 1990).
2.2.5 Financial Satisfaction
Zimmerman, 1995 has defined financial satisfaction as a state of being healthy, happy
and free from financial worries but Williams’s (1983) concept on financial satisfaction
and wellbeing include factors related to the material and non material aspects of one’s
financial situation, including objective and subjective constructs. Godwin (1994)
summarized the study of financial satisfaction by concluding that there is no
consensus on the way to measure financial satisfaction. How a person manages his
personal finances shown to be a major factor contributing to satisfaction or
dissatisfaction with his financial status (Jodi et al., 1998). Some researchers have
measured satisfaction with a single item while others have used multiple item
measures (So Hyun and Grable,2004). Hira and Mugenda (1999a, 1999b) measured
financial satisfaction with multiple items. These include satisfaction with (a) money
saved, (b) amount of money owed, (c) current financial situation, (d) ability to meet
long term goals (e) preparedness to meet emergencies and (f) financial management
There are approximately 22,000 Malaysian medical council’s registered medical
practitioners in Malaysia both in the private and public medical whom 56% were
Malays, Chinese (23.7%) and Indians (19.3%).
No of Medical Practitioners in the public hospitals in Malaysia 13,335 No of Medical Practitioners in the private hospitals in Malaysia 8,602 Total no of medical practitioners 21,937 (Source: Ministry of Health, Malaysia, 2006)
24
3.9 SAMPLE SIZE CALCULATION
Using the formula by Kish L in the year 1965, the sample size was calculated as
follows:
(Z 1- α)
2 [P (1-P)]
Where,
Z2 = the line (abscissa) of the normal curve that cuts off an area α at the tail.
1- α = the desired confidence level i.e. 95% (0.95)
Z 1- α = Z 0.95 = 1.96 (from normal statistical distribution table)
P = Prevalence = 49% (0.49) i.e. 49% of the respondents in previous study by Justin P.(2003) had positive scores for Financial knowledge.
1-P = 1.00 - 0.49 = 0.51
D = 0.05 is the absolute precision required on either side of the proportion in percentage points.
Therefore: (Z 1- α)
2 [P (1-P)]
1.962 (0.49) (0.51) 0.96
0.052 0.0025
384 samples required
ADD 20% = 76 samples
Total samples = 460 samples
An additional of 20% (76 samples) was needed due to unforeseen
circumstances such as withdrawal of respondent during interview or unable to
interview due to busy work schedule. Therefore the total number of samples required
for this study was 460 medical practitioners combined both in the public and private
N = D2
N = D2
N = =
=
25
medical services. Table 3.7 shows the total number of private and public medical
practitioners in each states and how the proportion was calculated. It also shows how
many numbers of respondents should be interviewed in each private (rural and urban)
and public (rural and urban) areas.
Table 3.7 Distribution of number of samples to be collected.
No of samples
collected in each state
States
Total
number of medical
practitioners in each state
Percentage of
practitioners in each state to total number
in all 4 states N =460
(from sample saiz calculation)
Kelantan
1175
1175/8960 = 13%
13% of 460
60 doctors
Perak 1980 1980/8960 = 22% 22% of 460 100 doctors
Johor 1950 1950/8960 = 22% 22% of 460 100 doctors
Selangor 3855 3855/8960 = 43% 43% of 460 200 doctors
Total 8960 100% 100% 460 doctors
Table 3.8 Distribution of medical practitioners in the private and public services
Distribution of medical practitioners in
private and public medical services
State
Total
Number Of
Doctors Private Practice
Public Hospitals
Kelantan
1175
145
145/1175 = 12 %
1030
1030/1175 = 88%
Perak
1980 202 202/1980 = 10% 1778 1778/1980 = 90%
Johor
1950 200 200/1950 = 10% 1780 1780/1950 = 90%
Selangor
3855 855 855/3855 = 22% 3000 3000/3855 = 78%
26
Table 3.9 Number of doctors interviewed in each region of the states
Private Practice
Public Hospitals
States
Doctors
interviewed Rural Urban Rural Urban
Kelantan
60
12% = 8
4
4
88% = 52
26
26
Perak
100
10% = 10
5
5
90% = 90
45
45
Johor
100
10% = 10
5
5
90% = 90
45
45
Selangor
200
22% = 44
22
22
78% = 156
78
78
460
72
36
36
388
194
194
Table 3.10 Specific sampling location
Private Practice
Public Hospitals
States
Total
interviews Rural Urban Rural Urban
Kelantan
60
4 Kuala Krai
Tanah Merah
4 Perdana
Specialist, kota Bahru
26 H. Tanah Merah H. Kuala Krai
26 Hospital
Kota Bahru
Perak
100
5
Parit Buntar & Taiping
5
Ipoh Specialist Hospital
45
H. Parit Buntar H. Taiping
45
Hospital Ipoh
Johor
100
5
Hospital Penawar,
Johor
5
Johor Specialist Hospital
45
Hospital Kulai
Hospital Muar
45
Hospital Johor
Sultanah Aminah
Selangor
200
22
Clinics in Sungai Buloh
22
Sri Kota Medical Centre
78
Hospital Sungai Buloh
78
Hospital Klang
460
36
36
194
194
27
3.10 SAMPLE INCLUSION
All randomly selected medical practitioners were eligible study samples. The next
name in the list was selected when the originally selected respondent rejects the
survey.
3.11 SAMPLE EXCLUSIONS
• Houseman, foreign doctors, medical practitioners on contracts, visiting doctors
and locum practitioners are excluded in this study.
• Non co-operative participants.
• Questionnaire sensitive participants.
3.12 STUDY INSTRUMENT
Questionnaires (each set of 17 printed pages) were used as study instrument (refer
Attachment). Questions were set according to Table 3.11
Table 3.11 Outline of questionnaire structure
Appendix
Description
A Personal Information
Respondents are asked to tick (/) at the
appropriate boxes indicating their demographic
particulars.
B Personal Financial Management Knowledge
16 item true, false or don’t know knowledge
questions. Respondents are asked to tick the
appropriate box indicating the correct answer. Each
correct answer will carry 1 point, incorrect (wrong)
and "I don't know" answers will be given zero
points. Item analysis with correctly identified items
will be summed and the score will be transformed
28
into a percentage. Higher percentage scores indicate
higher level of financial knowledge on financial
management. The financial management knowledge
scores will be divided into 3 categories, namely,
Low mean score (1- 5), medium mean score (6-11)
and high mean score (12-16).
C Personal Financial Management Attitude
C
18 item questionnaire each in a 5 point Likert scale
(‘1’= strongly disagree, ‘5’= strongly agree)
indicating the respondents’ extend to which they
agree with the statement. High scores indicate
positive attitude towards personal financial
management. Low, medium and high values are
calculated using the formula (Max-Min)/3. Since
there are 18 Likert scale questions to evaluate
attitude, the minimum and maximum scores are
18 to 90. Low Attitude (18-42 scores), Medium
Attitude (43-66 scores) and High Attitude (67-90
scores).
D Personal Financial Management Practice
This section contained 35 item questionnaire divided
into 5 sections namely cash, credit, retirement/estate,
risk and general financial management. 10 questions
on cash management, 10 questions on credit
management, 5 questions on retirement and estate
management practices, 5 questions on risk
management, and 5 questions general management
practices will be asked. Using a 5 point Likert scale
(1= not typical to 5= very typical) questions,
respondents are asked to indicate the degree to
which each item was typical of them. Higher scores
indicate positive financial management practices.
Refer to Financial Management Practice analysis on
29
each section on cash, credit, risk, retirement/estate as
well as general management practices for the
detailed calculation for the levels of low, medium
and high scores.
2 sub-sections in this section
EA Financial Satisfaction
EB Financial Wellbeing
This instrument was adapted from Titus et al.,
(1989) ‘Satisfaction with Financial Status Index’.
On a 5-point scale ‘1’=very dissatisfied, ‘5’= very
satisfied, respondents were asked on how satisfied
they are with each of the items. Higher scores
indicate higher level of satisfaction with their
financial status.
Respondents were asked to fill up monthly cash flow
and current assets and liabilities. This is to enable
the calculation of their balance sheet and net worth
statements. The degree of positive or negative cash
flow/net-worth will indicate financial wellbeing. For
the purpose of this study, cash flow and networth
statements generated is used in descriptive analysis
(demographic characteristics).
3.13 QUESTIONNAIRE ADMINISTRATION AND ARRANGEMENT
There were 4 stages involved prior to administration and collection of data.
In stage1, approval from the ethics committee of University Kebangsaan
Malaysia and the Health Ministry of Malaysia were obtained by sending in written
requests.
30
In stage 2, pre-approach letters were sent to the Directors of respective
selected hospitals introducing the survey. A week later, the directors of chosen
public hospitals were contacted through telephone and followed by either a fax or
an email letter explaining the intention of the study and a request for the name list
of medical practitioners practicing in that particular hospitals. In some urban
public hospitals, the name lists of medical practitioner were obtained from the
clinical research centers and from the state ministry of health itself. Once
approval letters were received from the directors of the hospitals, the study period
was set and randomly selected samples that full-filled the selection criteria were
chosen.
In stage 3, personal visits to the hospitals were made; seek approval from
individual department heads to do the research in their premises.
Stage 4 was the most challenging stage of all stages. The chosen medical
practitioners were then located (besides being in their departments, they were
either in the outpatient clinics, operating theatre, accident and emergency unit,
ward rounds or on leave, attending/participating in seminars, lecturing and so on)
invitation letters were given, if accepted, either set date and time for interview; if
not accepted then the next person in the list was chosen.
Stage 5, Consent to take part in the study was obtained prior to giving out the
survey forms. Appointments (date and time) were set for a one to one (face to face)
interview. Detailed interviews and data collection were done.
3.14 QUESTIONNAIRE VALIDATION
The survey questionnaire was taken from previous studies, (Godwin & Carrol,1986;
Godwin & Koonce,1992; Godwin, 1994; Porter & Garman,1993; Titus et al., 1989;
Fitzsimmons et al.,1993). It was validated by the experts in the field to check the
adaptability to local environment. The panel of experts were Certified Financial
2006). A survey of Financial Literacy in Washington State (2003) documented 36% of
the state residents were financially knowledgeable.
Relationship between financial knowledge and sector and location revealed
that there is no significant difference in the level of financial knowledge whether these
practitioners are in the public or private practice and whether they are located in the
urban or rural parts of Malaysia. Similar findings were reported by Gregory and
Mohammad Khayum (2003) that in their study, there was no difference in the
distribution of financial literacy scores between urban and rural high school students.
Significant difference was also noted in the levels of financial knowledge
among medical officers and specialist. The specialists are more financially
knowledgeable than the medical officers. This result is somewhat similar to ANZ
survey, 2006 that reported people aged under 25 or over 70 years were more likely to
belong to the lowest financial literacy Quintiles (level 1 to 2) whereas those aged
between 45 and 70 years were more likely to belong to the highest financial literacy
Quintile. In addition, this study also found the difference in the level of financial
knowledge between the medical officers and specialists was in the areas of credit
management and investment planning. Six areas of financial knowledge were tested
(cash, credit, investment, retirement/estate, risk and general management) and found
that only the two areas (credit and investment) had relationship with the rank of the
medical practitioner. Medical Economics financial survey in year 2001, reported that
older physicians (specialists) somewhat rely on money managers, financial planners or
investment counsellors for their investments. Although it was not the aim of this study
to analyse how physician do their investments, it found specialists to be more
investment savvy than medical officers. Money managers who were more
knowledgeable practiced more recommended planning and implementing behaviours
than less knowledgeable money managers. (Patricia et.al., 1989). Previous study by
Hira et.al., (1987) among the college students, demonstrated low levels of knowledge
in insurance, credit cards and in overall financial management knowledge. Similarity
was seen in this study with exception in the management of overall finance. The three
104
financial management knowledge areas in which the Malaysian doctors scored poorly
are credit, risk and retirement/estate planning. Vanessa G and Marlene D., (2005) in
their paper had stated that failure to manage personal finances can have serious long-
term, negative social and societal consequences. Financial service providers including
credit card companies and other lending institutions as well as social marketers claim
that the high incidence of bankruptcies, credit problems, poor savings rates, and
impulse buying are largely a result of a lack of financial knowledge on the part of
consumers (Vanessa G and Marlene D. 2005).
In analysing the relationship between financial knowledge and gender, this
study found that the male medical practitioners are more financially knowledgeable
than the female practitioners. Justin, (2003) in his study on college students, had
reported similar results i.e. the male students are more financially knowledgeable than
the female students.
Other demographic characteristics of age, marital status, ethnicity, number of
years in service, overseas exposure during under graduate and postgraduate studies as
well as childhood family financial status of medical practitioners shows no
relationship with financial knowledge. Jodi Parrotta and Phyllis, (1998) found that
age did not predict financial management and reported that financial knowledge does
not have an independent effect on financial management.
Financial knowledge correlated with financial attitude and financial practice
but not with financial satisfaction. Therefore this statement is supported by previous
research (Godwin, 1994; Hira etal., 1989) which financial knowledge was not
significantly related to the measure of financial satisfaction.
Attitude
Medical practitioners’ attitude in the areas of savings, budgeting, financial goals, and
financial household responsibilities, planning for retirement, insurance planning and
debt management were tested. Slightly more than a three quarter (76.4%) of the
medical practitioners in Malaysia have high positive financial management attitude.
105
Tahira (1989) views budgeting to be a critical financial management practice.
Doctors in this study agreed that budgeting and financial records keeping are
absolutely essential for successful financial management. 90% of the doctors surveyed
said they have a budget to track typical monthly expenses. Godwin and Carroll, 1986,
on the other hand reported that families are more likely to maintain written records of
expenditures than formalized budgets that include some future planning. 98% of the
medical practitioners in this study agreed that long term savings with a regular savings
pattern is important. According to a latest findings from CitiBank Bhd financial
Quotient (Fin-Q) 2008 survey, only 39% Malaysians actually save and less than 28%
(one in three) make and stick to a monthly budget. Almost 100% of the doctors’
population in Malaysia have positive attitude towards household responsibilities and
takes future into consideration when managing their finance.
In planning for the future, more than 90% medical practitioners showed
positive attitude by agreeing that planning for the future and for retirement is
necessary for old age financial security. Although findings from Citi Fin Q survey,
2008, revealed that 37% Malaysians are worried about their financial future, the
doctors in Malaysia have positive attitude on thinking about where they will be
financially in 5 or 10 years in the future.
Attitude towards risk management also scored favourable results. Slightly
above 80% of doctors agreed that insuring for the possibility of a family’s wage is
necessary for successful financial management. On the other hand slightly below
80% said making sure properties are insured against reasonable risk is essential for
successful financial management.
There was no difference in the level of financial attitude of medical officers
compared to specialist; doctors working in the public sector compared to those in the
private practice; and those servicing in the rural regions of Malaysia compared to
those in the urban regions.
Age, gender, marital status, working experience, financial exposure during
undergraduate and post graduate studies and perception during childhood financial
106
status did not have any effect on the level of financial attitude of doctors in Malaysia.
Age in this finding did not correlate with attitude and only one study supports this.
Jodi 1996, found age did not predict financial management behaviour. But
contradicting previous studies have found age to be significantly related to financial
management behaviour (Davis and Carr, 1992; Mugenda et al., 1990; Titus et al.,
1989).
Ethnicity alone showed significant difference. The Chinese doctors presented
a more positive financial attitude to financial management than the Malay and Indian
doctors. However, previous results have shown relationship between race and
financial behavior (Vanessa, G. and Marlene D., 2005).
Other research findings by Godwin & Carroll, (1986) found that both financial
attitudes and knowledge are related to financial management. Similarity was seen in
this current research, where financial knowledge was found correlated with financial
attitude.
Practice
Financial management practice tested the competency of medical practitioners in
managing their money on six area of finance, namely; cash, credit, retirement, estate
planning, insurance management and general management. Only 34.6% doctors in the
country practice positive or favourable financial management.
Not even half the population of doctors (45.4%) in Malaysia practice positive
cash management. From this survey, it is found that 65.7% of medical practitioners do
not estimate their household networth annually. Contradicting this, more than three
quarter of the doctors (78.6%) scored positive attitude in saying that it was typical of
them to estimate household income and expenditure. Tahira’s study (Hira, 1999)
found that household income and household networth have indirect effect to financial
satisfaction. 36.85% medical doctors have very little control over their expenditure.
According to Citi Bank Fin-Q survey, 2008 findings, Malaysians are not saving
enough; 86% attempted to follow a budget but less than 28% actually stick to it.
107
Medical practitioners acknowledge that they do budgeting on a monthly basis.
Budgeting is viewed to be a critical financial management practice. They discuss
financial goals with their spouses and make sure both have responsibilities in paying
off bills. They check receipts with bills. Their financial knowledge, attitude and
practice in cash management scored favourably.
Credit management analysis shows that a quarter (20.9%) of the survey
respondents currently do not own any credit card. It was further analysed that the zero
card users are mainly Malay female medical officers; from the public sector, in the
age range of 40 years and below. Following them in the 2nd placing are the Indian
female medical officers in the same age group. The face to face survey interview
documented the reason for the majority of female medical officers in the public sector,
for not having credit cards are that they were either ‘barred usage’ by the credit card
companies for mismanaging the facilities or fear of using the cards due to
observations of families’ and friends’ unpleasant experiences with credit cards debts
and for fear that the temptation of high credit limits would entice them to overspend.
Only a handful of the doctors genuinely did not use any credit card from the start of
their employment
This study also found that the majority ideal credit card users (1card users) in
Malaysia are also female medical officers, under the age of 40 years old and again the
Malay ethic group leading the role. Similar findings were reported by Jason, (2008)
who found female college students indicated higher levels of positive credit card
usage.
Justine (2003) in his study reported that female college students own
significantly more credit cards than males. Supporting his study are the results of
Armstrong and Craven (1993) and Hayhoe et al. (1999), demonstrating that female
students tend to have a higher number of credit cards as compared to males.
Contradicting the above researchers, this study found that the usage of more than 1
credit card to a maximum of 5 cards is seen greater in male physicians than in female.
108
In this survey, retirement/estate planning was found to be the most neglected
area in financial management with only 3.8% doctors plan for their retirement
although majority of them knew that they need 70%-80% of their pre-retirement
income to maintain the same standard of living during retirement. Despite half the
doctors’ population scoring high scores for financial knowledge in retirement/estate
planning and another 92% scoring ‘positive attitude’ by admitting ‘typical of me’ for
the statement ‘financial planning for retirement is necessary for assuring one’s
security during old age’, strangely, 96.2% are naïve in planning for their retirement.
Worryingly, above 60% do not know how much money they need during retirement.
Majority (88%) of these medical practitioners are in the public services and depend
either on their contribution to a forceful Employment Provident Fund or a government
pension plan for their retirement. It is a well documented fact in Malaysia that the
EPF withdrawal fund at retirement age only lasts 3 years and government pension
during retirement does not include inflation. Practitioners in the private sector
(50.2%) had made their own provision with the help of financial planners or by
themselves and felt that they will have sufficient income during their retirement. In
America, only a minority of American households feels “confident” about retirement
saving adequacy, and a one- -third of adults in their 50s say they have failed to
develop any kind of retirement saving plan at all (Lusardi, A., and Olivia S.M., 2006)
Will writing is another area where doctors have scored poorly. Close to 90%
medical practitioners admit that they have not written a will yet. During the face to
face interview, it was gathered that the practitioners did not write wills simply because
they did not plan whom to pass their assets and felt that they do not have enough
accumulation to write one. Although three quarter medical practitioners had failed the
knowledge question on Islamic will writing, surprisingly, the Malay ethnic group
doctors have written more wills (15%) followed by the Chinese doctors (9%) and
Indian doctors (7%). Majority practitioners showed no urgency attitude towards this
process. The minority who had written the will had not reviewed it since.
In risk management, although the medical practitioners knew that insurance is
a way to reduce the risk of financial disaster, more than three quarter (80%) of them
do not know the types of insurance cover available. More than a three quarter of these
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doctors acknowledge that they set aside money for possible unexpected expenses but
surprisingly, 70% doctors are not prepared to meet sudden large emergencies and do
not review the adequacy of the insurance cover they have. Somehow, close to three
quarter of the doctors’ population are dissatisfied with their current insurance and unit
trust agents.
Doctors scored high for financial knowledge on investment planning but again
in practicing investment planning, many did not know the terminology of
compounding interest. An ANZ survey in 2005 which surveyed the financial literacy
of adult Australians showed that a sizeable group of people do not understand what a
good investment is. Around a quarter of the sample thought that investments that
fluctuated in value were not good, or that investments that were good always
increased in value. (ANZ survey, 2005). Similar to ANZ survey, in this study, the
face to face interview and the cash flow statements revealed that majority of the
doctors in Malaysia are keeping their savings in either current or savings accounts in
the banks which give them about 2% return. They worry about inflation eating up into
their saving but do not know what steps to take. In the name of investment, many
young doctors take upfront long term bank loans (20 years contractual loan) and let
the bank do the investment for them. By doing so they did not take into consideration
(1) the ‘time value money’ concept; (2) the interest rate built into their loan repayment
(3) the creation of long term repayment liabilities (4) the opportunity cost and (5) late
payment charges, if any. These results reinforce survey findings about financial
literacy from Bernheim (1995, 1998), and Moore (2003), who report that most
respondents did not understand financial economics concepts, particularly those
relating to bonds, stocks, mutual funds, and the working of compound interest; they
also report that people often say they fail to understand loans and interest rates.
Doctors are ignorant and insecure to find alternatives to invest their money.
Some other practitioners invest in two or three houses (data from cash flow and
networth statements) without planning and budgeting hoping and anticipating rental
income and capital appreciation but lands up overburdening themselves into liabilities
and cash flow deficits. It was analysed in this survey that 18% medical practitioners
are having deficit in their monthly cash flow and 7.81% with negative networth.
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Researchers have reported that households were more likely to have a higher level of
net worth if the money manager used optimum planning practices and were more
satisfied if money manager used recommended implementing practices (Patricia et.
al., 1989).
Financial Satisfaction
Doctors are financially dissatisfied with many things; their current amount in savings,
current assets, current liabilities, current financial situations, and current loan
repayments and importantly, their money management skills. Only 28% of doctors in
Malaysia are satisfied with their current financial status. During the face to face
interview, it was learned that doctors feel that they would have performed better
financially if they had been exposed to financial education at younger age or just prior
to employment. Previous study findings (So-hyun Joo and John E. Grable, 2004)
determined that financial satisfaction is related, both directly and indirectly, with
diverse factors including financial behaviours, financial stress levels, income,
financial knowledge, financial solvency, risk tolerance, and education. David and
Schumm, (1987b) found that financial attitudes play an important role in determining
a person’s level of financial satisfaction. Positive relationship between financial
behaviour and satisfaction is reported by Mugenda et.al., 1990. Contradicting all the
previous studies, this research found that the medical professionals have high positive
financial attitude but somehow very dissatisfied with their current financial status.
Significant difference in financial satisfaction and financial well being was
seen between the medical practitioners in the public sector and in private practice;
between the male practitioners and female practitioners and between medical officers
and specialist. However location of practice (rural or urban) did not have any effect on
the financial satisfaction and well being of the medical practitioners.
The private doctors are more financially satisfied than doctors in the public
practice. This could be due to the fact that the income earned in private practice differs
vastly compared to the income from public servants. This study did not assess the
impact of income to satisfaction but the descriptive analysis found that majority of the
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doctors in Malaysia has networth below RM 250,000. However, Jodi, 1996; Godwin
1994; Mugenda et al, 1990 and Titus et al., 1989 all have reported positive correlation
of income to household financial satisfaction.
In this present study, gender was found to be related to financial satisfaction.
The male doctors in Malaysia are more financially satisfied than the female doctors.
Study done by Tahira and Mugenda (2000) found that men and women differ
significantly in their satisfaction with some aspects of finances. A significantly larger
proportion of women than men were satisfied with their savings. On the other hand,
more women than men were dissatisfied with their current financial situation.
This study also found the medical specialists to be more financially satisfied
then the medical officers. In supporting this, other researchers have found that older
financial managers are more satisfied with their financial status than younger financial
managers (Mugenda et al., 1990; Titus et al., 1989). Further more it was earlier noted
that older physicians use the services of financial advisors for use of recommended
financial management practices.
Pearson correlation showed that there is correlation between the financial
attitude of medical practitioners and financial satisfaction. Also financial practice
projected a strong correlation with financial satisfaction. However, in this study
financial knowledge did not correlate with financial satisfaction.
5.3 STUDY LIMITATION
The present study has certain limitations that ought to be addressed. As with all
surveys about personal finance, some respondents were sensitive to the questions. The
objective of the face to face interview was to clarify doubt and ensure that the
responses are properly understood by the respondents. The knowledge questions
identified some discomfort and stress among majority of the respondents. Being in
the medical profession and faced with constant challenges, achievements are norms to
the doctors. When financial knowledge questions were put forward in the presence of
an interviewer, the pride in answering these questions became a challenge. Answering
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‘I don’t know’ was an issue. Many wanted to take home the survey forms; others let
the interviewer lead them to the correct answers by repeatedly asking to rephrase the
questions till the correct answer was justified. Therefore the possibilities of biased
responses could have influenced the results.
Financial attitude and practice were other sections in the questionnaire which
could have projected false positive results. In this particular study, the financial
attitude and practice are factors that determine the ability or inability of the medical
practitioners in managing their finance. As such, in identifying one’s self-worth’ in the
presence of a third party (interviewer) needs courage and truthfulness. In choosing the
‘likert points’ that are known to be typical of favorable answer but not reflecting the
actual attitude and practice may have affected the scores. Majority of the doctors (the
respondents) were much exited in filling up the survey forms in the beginning, but as
the questions gets more personal towards the end they become shy, moody and
emotionally disturbed. This also could have influenced the actual findings.
It was the objective of the study to sample 460 respondents but only 87.4%
(N=402) achieved of which 88.9% (N= 64/72) from the private sector and 87.1%
(N=338/388) from the public hospitals. Selections of private practitioners were more
systematic and uneventful compared to the practitioners serving the public though
similar protocol was administered. Private practitioners allocated enough time, had
privacy during interviews, were cooperative, had no rushing attitude, very
professional, confident, wanted to know more about finance and respected the
research as a whole. The 10% sample collection failure rate was due to the
geographical location of the medical centres and clinics. 18 general practitioners
wanted to self administer the survey. Therefore about 15 minutes briefing of the
questionnaire and a stamped envelope addressed to the researcher were given to them.
Necessary precautions were taken to keep the confidentiality of the respondents by
detaching the consent forms and the request for report forms. Identifications were
only through the coded numbers. 10 out of the 18 general practitioners did send in the
questionnaires as promised but the other 8 (10%) did not. These are general
practitioners mainly from Eastern and Southern regions of Malaysia. They had
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various reasons when contacted and some even acknowledged mailing it. These
samples were then eliminated from the study.
A different scenario was experienced in collecting the samples in the public
sector. Doctors in the public surroundings were financial help seekers, friendlier, but
chaotic with work; due to work schedules, keeping up appointment was a challenge to
them. Private space for interview and privacy was another issue. Even though, the
doctors somehow create private surroundings during the interviews, it was still
accessed by others that made the respondents uneasy and uncomfortable to complete
the questionnaire. There were many in between breaks during the interviews. Since it
was a face to face interview, it was noted that some answers marked did not coincide
with the respondents’ facial reaction during the interview. This could have influenced
the survey results as well.
Unlike the private practitioners, minority of the public medical practitioners
had no confidence in answering the questions. They felt they were underpaid and
overworked. They were exhausted and the survey was another burden. Senior
practitioners and specialist allocated more time and welcomed the survey but the
medical officers were unhappy being chosen. The 12.9% collection failure rate was
mainly from the medical officers who either misplaced, lost or left the questionnaires
at home since the questionnaires were distributed earlier. Another set of forms were
redistributed and attempts to collect these form too failed. Therefore, these samples
were removed from the study and this might have affected the survey results.
Another limitation was the study site and the period of survey itself. It was
very unfortunate during this study duration, the outbreak of HINI epidemic occurred.
Doctors were extremely busy and it was difficult to contact the randomly chosen
respondents. Access to meet these professionals was not easily granted and if it was
then the duration and the site was a problem. Doctors were stressed and just wanted
to finish off the survey. This resulted in many missing values and unfocused responses
which could have possibly affected the results.
114
This being a nationwide survey had its geographical limitations due to the fact
that travelling became costly and the duration of time spent in each state was longer
than anticipated (due to the epidemic). Revisit was a problem and in some instances
had to choose other available respondents who were willing or who were chosen by
the actual respondent themselves or chosen by the heads of the departments. Those
who volunteered to participate in this manner; self selection bias may have influenced
the results.
The doctors tend to overestimate income and underestimate expenses to secure
pride and confidentiality. Some respondents, no matter how much assurance given on
the confidentiality, they feared their identity would be exposed. This too might have
influenced the results.
5.4 CONCLUSION
This study measured the levels of personal financial management knowledge, attitude
and practice of the medical practitioners in the private and public medical services and
in the urban and rural parts of Malaysia. The following findings are concluded.
Only 33.6% medical practitioners in Malaysia are highly knowledgeable in
financial management. The three areas in which they scored poorly are credit card
management, insurance management (personal and property) and retirement and estate
planning. Gender was significantly related to financial knowledge in which the male
doctors proved to be more knowledgeable than the female doctors. In ranking, the
specialists are more financially knowledgeable than the medical officers especially in
the areas of credit management and investment planning. Specialists are more
investment savvy than the medical officers. Location of practice and servicing sector
did not show any difference in the level of financial knowledge among the medical
practitioners. In another words, whether the medical practitioners are servicing the
private or public medical sectors or practicing in the rural or urban parts of Malaysia,
there is no difference in their financial management knowledge. Financial
management knowledge correlated with financial attitude and financial practice but
not financial satisfaction.
115
About three quarter (76.4%) of the Malaysian doctors have high positive
attitude towards financial management. They have financial goals and know that they
have to take future into consideration in managing their finance. Almost one hundred
percent of them agree that a regular pattern of savings and budgeting is essential in
successfully managing one’s life. They have financial responsibilities towards their
families and have positive attitude towards financial uncertainty. Rank (medical
officers or specialist), sector (private or public) and location (rural or urban) did not
influence the level of financial management attitude of the medical practitioners.
Similarly, the demographic features of age, gender, marital status, years in services,
overseas exposure during post graduate studies as well as childhood family financial
status too did not influence their level of financial management attitude. However,
both ethnicity and exposure to overseas during undergraduate studies have impact on
the financial attitude of the medical doctors. Those who did their undergraduate
studies overseas showed more positive financial attitude compared to those who did
their studies locally. The Chinese doctors show more positive financial attitudes than
the Malay doctors, followed by the Indian doctors and then by the other races.
Similar to financial management knowledge, only a minority (34.6%) of
the medical practitioners in Malaysia practice positive financial management.
Contradicting to their financial management attitude, more than half of the population
do not estimate their household networth and another 37% of them admit living from
current month salary to the following month salary. Majority of the medical
practitioners hold an average of 2 credit cards which is not a favourable practice in
financial management. There are more female doctors using credit cards compared to
the male. But, it is reverse in the usage of more than 1 card (unfavorable practice).
The male doctors out beat the female doctors. Although the Chinese ethnic group
doctors are the least users of credit cards in the country, they somehow are the top in
owning more than 1 card (negative financial credit management) followed by the
Malay doctors then by the Indian doctors. The medical officers are better credit card
managers than the specialist. Likely, younger doctors manage credit cards better than
the older doctors. As the age increases, there are more negative credit card
management among the medical practitioners in Malaysia. Doctors in the private
sector practices more unfavourable credit cards usage.
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Doctors need help in retirement and estate planning. Only 3.8% of doctors
plan for their retirement and do not know how much is needed during retirement.
They rely on their government pension income or the employment providence fund.
Private practitioners seek the help of planners to plan for their retirement. Will writing
and estate planning are other areas doctors are neglecting to look into. Only a
minority of 15% Malay, 9% Chinese and 7% Indian doctors have written wills and
trusts in the country. Doctors lack knowledge in life insurance and investment
concepts as well as their products. Three quarter of the doctors’ population are
dissatisfied with their current insurance and unit trust agents.
Other demographic characteristics of age, marital status, ethnicity, number of
years in service, overseas exposure during under graduate and postgraduate studies as
well as childhood family financial status of medical practitioners shows no
relationship with their financial practice. However gender did. The male medical
practitioners practice better financial management than their female counterparts.
Exposure to overseas during postgraduate studies has impact on managing personal
finance. Those who did their postgraduate studies overseas showed more positive
financial management practice then those who did their studies locally.
Close to three quarter of the doctors in the country are not satisfied with their
current financial status and their money management skills. The male medical
practitioners are more satisfied than the female. Similarly, the specialists are more
satisfied with their financial management skills then the medical officers. The private
medical practitioners are more satisfied with their financial well being then doctors
serving the government.
This study sets groundwork for future research. It calls for a strong need for a
financial educational programme to help medical practitioners make informed
decisions for greater financial satisfaction
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ATTACHMENT
UKM Research Project Approval Code: FF-088-2009
Attachment A
Invitation to Participate in the Study
Masters of Medical Science (Community Health)
Researcher : Rajna Anthony
Supervisors : 1. Prof. Dato’ Syed Mohammed Aljunid 2. Dr. Sharifa Ezat Binti Wan Puteh
Study Title :
KNOWLEDGE, ATTITUDE, PRACTICE AND SATISFACTION ON
PERSONAL FINANCIAL MANAGEMENT AMONG THE MEDICAL
PRACTITIONERS IN THE PUBLIC AND PRIVATE
MEDICAL SERVICES IN MALAYSIA.
Dear Doctors,
You are invited to participate in this study in which approximately 460 respondents (only practicing medical practitioners) will be interviewed to complete a set of questionnaire about their knowledge, attitude and practice on managing their personal finance. It will take about 40 minutes to complete this questionnaire. Research purpose
The purpose of this study is to identify the levels of financial literacy, financial
attitude and financial practice of the medical practitioners in Malaysia and to
correlate these to their financial management competency.
This study will have significance in future research to develop a benchmark
measure of the financial management knowledge, attitude and practice across the
entire doctor’s population so their financial management trends, strength and
weaknesses can be measured and programmes can be targeted at areas of need.
Your participation in this study is completely voluntary. There are no foreseeable risks associated with this project. However if you feel uncomfortable in answering a particular question, you can withdraw from this survey at any point. It is very important for us to learn your opinions. Your survey responses will be strictly confidential and data from this research will be reported only in the aggregate. Your information will be coded and will remain
124
confidential. If you have any questions at any time about the survey or the procedure, you may contact me, Rajna Anthony at 012 3774503 or by e-mail at [email protected] or Prof. Dato’ Dr. Syed Mohammed Aljunid, @ Department of Community Health, Faculty of Medicine, UKM Medical Centre, 56000 Cheras, Kuala Lumpur, Malaysia.
In considering your time and effort taken, all respondents who participated in
this study will be pleasantly appreciated and complemented with the following: 1. A booklet entitled ‘Smart Financial Management Tips for Doctors’ to give guidance on Personal Financial Management such as Risk Management, Investment Management, Tax Planning and Retirement Planning. 2. All respondents who have furnished complete data of their current cash flow and net-worth will be complemented with a Certified Financial Planners Summary
Report with Recommendations FREE which is otherwise worth RM 250.00. All Information furnished to the CFP Planners will be coded to keep the identity of respondents strictly confidential. Only the researcher has the accessibility to the identity of the respondents. All recommendations will be based on the information’s received. This report is available only on request. A sample report will be shown by the researcher to boost your confidence. Please fill up the request form attached and return it to the interviewer for the report. It will take approximately 2 weeks -1month for the report to be ready. Thank you for your support. Rajna Anthony
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UKM Research Project Approval Code: FF-088-2009
Attachment B
CONSENT TO PARTICIPATE IN THE STUDY
Title of Study:
KNOWLEDGE, ATTITUDE, PRACTICE AND SATISFACTION ON
PERSONAL FINANCIAL MANAGEMENT AMONG THE MEDICAL
PRACTITIONERS IN THE PUBLIC AND PRIVATE
MEDICAL SERVICES IN MALAYSIA 1. I have read and understood the objectives of this research from the ‘invitation to participate’ sheet. 2. I am aware that there are no foreseeable risks associated this project during the interview. 3. I understand that all information collected may be used for publication but all personal details will not be disclosed. 4. I also understand that all personal in formations given will be used for research purpose and for the researcher’s reference only. All details will not be disclosed. The researcher is liable to the confidentiality of the data collected. 5. My personal financial report will not be generated by the researcher unless otherwise requested myself only through the request for report form. 6. I understand that this study is to develop a benchmark measure of financial literacy, financial attitude and financial practice on financial management among medical practitioners so that trends can be measured and programmers can be targeted at areas of need. 7. I understand that I have the right to withdraw my participation and consent at any time, whenever I feel uncomfortable to take part in the study. No penalty will be imposed. ………………………………. …………………………………. (Respondent Signature) (Witness Signature) Name: Name I/C No: I/C No: Date Date:
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Attachment C
REQUEST FOR A REPORT Respondent code: ________________________ Yes I would like to request for a report with recommendation by a Certified Financial Planner. I understand that since all information provided are strictly confidential, my
report will only be generated with my coded number. My actual name will not appear in any part of the report. My Financial Health Check My cash flow analysis My net worth analysis My current financial situation My financial Ratios Thank you. ______________ Respondent’s signature Name: Phone No: Email Address: Date:
Note: This request form will be kept by the researcher. Once the report is ready, it will be matched with this form and personally delivered to the individuals. Confidentiality is assured.
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UKM Research Project Approval Code: FF-088-2009
UNIVERSITY KEBANGSAAN MALAYSIA
START TIME:
END TIME:
DATE:
RESPONDENT CODE NO:
QUESTIONNAIRE
KNOWLEDGE, ATTITUDE, PRACTICE AND SATISFACTION ON PERSONAL
FINANCIAL MANAGEMENT AMONG MEDICAL PRACTITIONERS
IN THE PUBLIC AND PRIVATE MEDICAL SERVICES
IN MALAYSIA.
Instruction to respondents:
Please answer all questions. Your careful attention and accuracy are important for an accurate analysis. You may find some of the questions are personal but your responses to these questions will be kept in strict confidence and results will be reported in total only.
This questionnaire contains 17 printed pages (including the front page)
Notice: Information given are for researcher’s reference and research purposes only.
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UKM Research Project Approval Code: FF-088-2009
PERSONAL INFORMATION
Directions :
There are 9 items in this questionnaire. These questions contain information about
your demographic data. Read each statement carefully, then, tick (/) at the appropriate
places.
Please Respond To Every Item:
1. Sex
Male
Female
2. Age
Under 30
31 – 40
41 – 50
51 – 55
3. Race
Malay
Chinese
Indian
Others
4. Marital status
Single
Married
Others
5. Number of children
129
None
1
2
3
4
5
>5 ________________________
6. How many years have you served as a medical practitioner till todate ?
1 – 5 years
6 - 10 years
11 – 15 years
16 years or more
7. Please indicate your academic qualification.
Local Oversea
Under graduate
Post Graduate
8. As a child how did you perceived your family’s financial status
Wealthy
Average
Poor
Don’t Know
9. Your current position
Medical Officer
Specialist
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UKM Research Project Approval Code: FF-088-2009
APPENDIX : B - KNOWLEDGE ON FINANCIAL MANAGEMENT
Directions :
There are 16 items in this section. These questions are to test your knowledge on financial management.
Read each statement carefully, then answer the questions by placing a tick (/) at the appropriate box.
Scale ItemFor Office Use
1 A person needs a will only when there is
a large estate to be passed on to heirs. Don’t True False
know
2 Term insurance is the best form of
life insurance protection available Don’t True False
know
3 If a Muslim dies with a will, his or her assets are
distributed according to the will by the executer. Don’t True False
know
4 A good budget provides only for expected
expenses. Don’t True False
know
5 Only families with large enough assets
to be concerned about financial planning. Don’t True False
know
6 To have a good credit rating one must make
purchases on credit and make payments Don’t True False
according to the credit contract. know
7 Insurance is a way to reduce the
risk of a financial disaster. Don’t True False
know
8 Life insurance needs vary with age
and the size of a family. Don’t True False
know
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UKM Research Project Approval Code: FF-088-2009
For Office Use
9 Retirees need 70% to 80% of their pre-retirement
income to maintain the same standard of living Don’t True False
during retirement. know
10 A person is more likely to reach his or her
financial goals by planning for the future. Don’t True False
know
11 Having different types of investment and savings
decreases financial risks. Don’t True False
know
12 A credit card advance is a cheaper form of
credit than a personal bank loan. Don’t True False
know
13 In most cases, the lower the expected rate
of return on an investment, the lower the risk. Don’t True False
know
14 Borrowing money to purchase an item (personal
use) decreases money available for future Don’t True False
spending. know
15 Most financial risk can be covered by insurance.
Don’t True False
know
16 People are more likely to make better financial
decisions if those decisions are based on Don’t True False
their financial records. know
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FINANCIAL MANAGEMENT ATTITUDE
Directions :
There are 18 items in this questionnaire. These questions will identify your attitude towards your financial
management. Read each statement carefully, then circle the number that you agree or disagree.
Scale Item
1 = Strongly Disagree 3 = Not Sure 4 = Agree
2 = Disagree 5 = Strongly Agree
1 It is important for a family to develop a STRONGLY DISAGREE STRONGLY AGREE For office use
regular pattern of saving and stick to it. 1 2 3 4 5
2 Keeping records of financial matters STRONGLY DISAGREE STRONGLY AGREE
is too time-consuming. 1 2 3 4 5
3 Families should have written STRONGLY DISAGREE STRONGLY AGREE
financial goals that help them 1 2 3 4 5
determine priorities in spending.
4 Each individual should be responsible STRONGLY DISAGREE STRONGLY AGREE
for his or her own financial well-being. 1 2 3 4 5
5 A written budget is absolutely STRONGLY DISAGREE STRONGLY AGREE
essential for successful financial 1 2 3 4 5
management.
6 Saving is not really important. STRONGLY DISAGREE STRONGLY AGREE
1 2 3 4 5
7 As long as one meets monthly paymentsSTRONGLY DISAGREE STRONGLY AGREE
there is no need to worry about the 1 2 3 4 5
length of time it will take to pay off
outstanding debts.
8 Both husband and wife should have STRONGLY DISAGREE STRONGLY AGREE
some responsibility for seeing that 1 2 3 4 5
bills are paid monthly.
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9 It does not matter how much a STRONGLY DISAGREE STRONGLY AGREE For office use
couple saves as long as they do save. 1 2 3 4 5
10 Families should really concentrate on STRONGLY DISAGREE STRONGLY AGREE
present when managing their finances. 1 2 3 4 5
11 Financial planning for retirement is STRONGLY DISAGREE STRONGLY AGREE
not really nessessary for assuring 1 2 3 4 5
one's security during old age.
12 Having a financial plan makes it difficult STRONGLY DISAGREE STRONGLY AGREE
to make financial investment decisions. 1 2 3 4 5
13 It is really essential to plan for the STRONGLY DISAGREE STRONGLY AGREE
possible disability of a family's wage 1 2 3 4 5
earner.
14 Making sure your property is insured STRONGLY DISAGREE STRONGLY AGREE
against reasonable risks is not really 1 2 3 4 5
necessary for successful financial
management.
15 Planning is an unnecessary distraction STRONGLY DISAGREE STRONGLY AGREE
when families are trying to get by today. 1 2 3 4 5
16 Planning for spending money is STRONGLY DISAGREE STRONGLY AGREE
essential to successfully managing 1 2 3 4 5
one's life.
17 Planning for the future is the best STRONGLY DISAGREE STRONGLY AGREE
way of getting ahead. 1 2 3 4 5
18 Thinking about where you will be STRONGLY DISAGREE STRONGLY AGREE
financially in 5 or 10 years in the 1 2 3 4 5
future is essential for financial
success.
Source: Godwin & Carrol (1986), item 1-11
Godwin & Koose (1992), item 12-17
Godwin (1994) ,item 18-20
134
FINANCIAL MANAGEMENT PRACTICE
Directions :
There are 35 items in this questionnaire. These questions will reveal yor competency on financial
management. Read each statement carefully, then circle the number that is typical of you.
Scale Items
1 = Strongly not typical of me 3 = I don't / don't have 4 = Typical of me
2 = Not typical of me 5 = Strongly typical of me
Cash Management
STRONGLY NOT STRONGLY For office use
1 I follow a weekly or monthly budget* TYPICAL OF ME
1 2 3 4 5
STRONGLY NOT STRONGLY
2 I use banking account that pays TYPICAL OF ME
me interest* 1 2 3 4 5
STRONGLY NOT STRONGLY
3 Sometimes I write bad cheques TYPICAL OF ME
or one with insuffient funds* 1 2 3 4 5
STRONGLY NOT STRONGLY
4 I usualy live from current month TYPICAL OF ME
salary to the following month salary 1 2 3 4 5
STRONGLY NOT STRONGLY
5 I save receipts of major ____________ TYPICAL OF ME
purchases.** 1 2 3 4 5
STRONGLY NOT STRONGLY
6 I estimate household income and TYPICAL OF ME
expenses** 1 2 3 4 5
STRONGLY NOT STRONGLY
7 Once a year, I estimate my TYPICAL OF ME
household net worth 1 2 3 4 5
(total asset - total liabilities)
STRONGLY NOT STRONGLY
8 I review and evaluate my TYPICAL OF ME
spending habits.** 1 2 3 4 5
STRONGLY NOT STRONGLY
9 I write down where and how my TYPICAL OF ME
money is spent.*** 1 2 3 4 5
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
135
STRONGLY NOT STRONGLY
10 I regularly set aside money for TYPICAL OF ME
large expected expenses 1 2 3 4 5
(like insurance or taxes).
Credit Management
For office use
1 Currently I have _?__ number of
credit cards 1 2 3 4 5
STRONGLY NOT STRONGLY
2 I usually do not pay the total balance TYPICAL OF ME
on my credit card, but instead, 1 2 3 4 5
just make a minimum or partial payment.*
STRONGLY NOT STRONGLY
3 I get myself into more debt each year TYPICAL OF ME
to pay off the previous years debts.* 1 2 3 4 5
STRONGLY NOT STRONGLY
4 I obtain cash advances in order to TYPICAL OF ME
pay my credit balances.* 1 2 3 4 5
STRONGLY NOT STRONGLY
5 My use of credit cards increases TYPICAL OF ME
with each year.* 1 2 3 4 5
STRONGLY NOT STRONGLY
6 I rarely pay finance charges.** TYPICAL OF ME
1 2 3 4 5
STRONGLY NOT STRONGLY
7 I pay my bills as due.** TYPICAL OF ME
1 2 3 4 5
STRONGLY NOT STRONGLY
8 I make payments on large debts as TYPICAL OF ME
on scheduled.** 1 2 3 4 5
STRONGLY NOT STRONGLY
9 I compare my credit card receipts TYPICAL OF ME
with my monthly statements.** 1 2 3 4 5
STRONGLY NOT STRONGLY
10 I sometimes receive overdue TYPICAL OF ME
notice because of late or 1 2 3 4 5
missed payments.*
UKM Research Project Approval Code: FF-088-2009
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
136
Retirement and Estate Planning
For office use
STRONGLY NOT STRONGLY
1 I plan out how I want my belogings TYPICAL OF ME
to be divided up in case something ever 1 2 3 4 5
happens to me (e.g., use a will).*
STRONGLY NOT STRONGLY
2 I review my will periodically.** TYPICAL OF ME
1 2 3 4 5
STRONGLY NOT STRONGLY
3 I contribute annually to a retirement TYPICAL OF ME
savings plan (e.g., EPF, Pension).* 1 2 3 4 5
STRONGLY NOT STRONGLY
4 I use the services of a certified financial TYPICAL OF ME
planner to plan my retirement 1 2 3 4 5
STRONGLY NOT STRONGLY
5 I take advantage of compounding interest TYPICAL OF ME
to start saving for my retirement 1 2 3 4 5
Risk Management STRONGLY NOT STRONGLY
1 I regularly set money aside for TYPICAL OF ME
possible unexpected expenses. 1 2 3 4 5
STRONGLY NOT STRONGLY
2 I adequately insured my personal TYPICAL OF ME
property (such as home, furnishings, 1 2 3 4 5
or other personal possessions).*
STRONGLY NOT STRONGLY
3 Each year I review the adequacy TYPICAL OF ME
of the insurance coverage I have.** 1 2 3 4 5
STRONGLY NOT STRONGLY
4 I have trouble meeting monthly TYPICAL OF ME
health care expenses, including 1 2 3 4 5
premiums for health insurance.*
STRONGLY NOT STRONGLY
5 I take advantage of life insurance to TYPICAL OF ME
create wealth 1 2 3 4 5
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
137
General Management STRONGLY NOT STRONGLY For office use
1 I create financial goals.** TYPICAL OF ME
1 2 3 4 5
STRONGLY NOT STRONGLY
2 I make plans on how to reach TYPICAL OF ME
my financial goals.* 1 2 3 4 5
STRONGLY NOT STRONGLY
3 I set specific financial goals for the TYPICAL OF ME
future (e.g., buy a new car in 1 2 3 4 5
two years).*
STRONGLY NOT STRONGLY
4 I know roughly how much money I need TYPICAL OF ME
during retirement 1 2 3 4 5
STRONGLY NOT STRONGLY
5 I regularly discuss financial goals TYPICAL OF ME
with my spouse.*** 1 2 3 4 5
* Adapted from Porter & Garman (1993)
** Adapted from Titus et al. (1989)
*** Adapted from Godwin & Carroll (1986)
**** Adapted from Fitzsimmons et al. (1993)
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
TYPICAL OF ME
138
FINANCIAL SATISFACTION QUESTIONAIRE
Directions :
There are 10 items in this questionnaire. These questions areto find out how finacially satisfied
are you. Read each statement carefully, then circle how satisfied or dissatisfied are you.
For office use
1 I am -------- with the amount currently VERY DISSATISFIED VERY SATISFIED
in my savings. 1 2 3 4 5
2 I am -------- with my current assets. VERY DISSATISFIED VERY SATISFIED
1 2 3 4 5
3 I am -------- with my current liabilities. VERY DISSATISFIED VERY SATISFIED
1 2 3 4 5
4 I am ------- with my current financial VERY DISSATISFIED VERY SATISFIED
single service providers such as 1 2 3 4 5
insurance and unit trust agents?
5 I am -------- with my current VERY DISSATISFIED VERY SATISFIED
financial situation. 1 2 3 4 5
6 I am ------- with my monthly loan VERY DISSATISFIED VERY SATISFIED
repayments including all credit cards 1 2 3 4 5
and home repayment.
7 I am -------- with my family's current VERY DISSATISFIED VERY SATISFIED
financial situation 1 2 3 4 5
8 I am -------- about the usage of my VERY DISSATISFIED VERY SATISFIED
credit cards. 1 2 3 4 5
9 I am -------- with my money VERY DISSATISFIED VERY SATISFIED
management skills. 1 2 3 4 5
10 I am -------- to meet sudden financial VERY DISSATISFIED VERY SATISFIED