The Importance of Personal Financial Management Literacy for Overseas Students in Planning Their Budgets

Abstract

A systematic knowledge base on financial management is used to achieve personal financial goals through the process of personal financial management. There are several reasons why students cannot maximize their financial management capabilities.  First, there is a lack of understanding about finance. Second, the way of thinking of students who only focus on one goal. Third, the psychological condition of students. Fourth, the inability to accept responsibility for the use of money.  These factors lead to students' financial weakness. The school environment is another element that contributes to students' poor personal financial management skills. Personal financial management literacy also helps students in understanding financial concepts. With personal financial management literacy, students can help themselves in maintaining strong finances and ensure that they can fulfill their needs in the future. Most studies focus on personal financial management in general without considering the importance of financial literacy in managing finances that will impact personal financial management. This gap creates room for more in-depth research on the importance of personal financial management literacy for overseas students. The method used in this research is a qualitative research method. The purpose to be achieved in this study is to determine and analyze the importance of personal financial management literacy for overseas students in planning their budget. This research provides an in-depth insight into students' personal financial management. By understanding this research, students can make better decisions in managing their personal finances.