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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
3
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.
4
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).
5
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.
7
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
9
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
skills. Demographic, socioeconomic characteristics, financial stress levels, financial
solvency, financial knowledge and financial attitude have an impact on financial
15
satisfaction of individuals (So Hyun and Grable, 2004). Achieving satisfaction with
the family’s financial management can be viewed as a goal. Satisfaction may be
achieved through met demands, resources available to the family and management
skills used to meet the demands (Deacon & Firebaugh, 1981).
2.3 CONCEPTUAL AND THEORETICAL FRAMEWORK
Many models of financial management have been concerned with how information
passes from one point to another. It is clear that financial management which is too
often taken for granted is a complex process even though it seems like a simple, daily
part of our lives. Thus, to enable us to visualize and analyze different aspects of the
process, it would be helpful to represent financial management in the form of a model.
The system approach model (Fig. 1) of financial management or better known
as the Family Resource management Model by Deacon and Firebaugh (1988) was
modified for the purpose of this study. It has been modified and used by other
researchers (Hira et al 1992; Mugenda et al. 1990) in the financial management field.
It describes how personal money managers plan and implement resources to meet
demands. The wholeness of this system acknowledges the systematic approach of the
inputs (income, savings, and financial knowledge and socio demographic variables),
the throughputs (financial attitudes and financial practice) and the outputs
(competency in financial management through cash flow and net worth).
The inputs enter the system through two resources. They are the material
resources and the human resources. These inputs are then transformed to produce
throughputs and subsequently the output. The output from the system has been
commonly operational as objective outcome such as changes in net-worth and
subjective outcome such as satisfaction.
For this study, the inputs entering into the system are represented by material
resources and human resources. The material resources are income and savings. The
human resource are financial knowledge (i.e. information received or obtained from
various sources) and socio demographic variables as (such as age, gender, ethnic
16
group, marital status, family values, family background, educational background, and
geographical location of the place of stay/occupation)
Figure 1.0 The system approach financial management model
Deacon and Firebaugh (1988) identified two subsystems in the throughput
itself. They are the personal subsystem (financial attitude) and the managerial
subsystem (financial practice). The personal subsystem is where one’s financial
attitude is directly affected by the input variables such as cognitive, emotional, social
and physical capacities and subsequently affects the decision making process in the
managerial subsystem. The same input variables can also affect the managerial
subsystem directly by bypassing the personal subsystem.
The system’s throughput is where the actual transformation of resources into
financial management practices takes place. It consists of the planning and
implementation of these practices which are directly affected by ones behavioral
responses, decision making capabilities and perception towards money management
skills. Consequently, budgeting, record keeping, credit card usage, savings,
investment and risk management decision are the end products of throughputs.
INPUT
MANAGERIAL
SUBSYSTEM
FINANCIAL MANAGEMENT
PRACTICE
Planning Implementing
FINANCIAL MANAGEMENT
ATTITUDE
Cognitive
Emotional Social Physical
PERSONAL
SUBSYSTEM MATERIAL
RESOURCE
1. Income 2. Savings
HUMAN
RESOURCES
1. Financial Knowledge 2. Demographic
THROUGHPUT
(Transformation Process)
COMPETENCY IN
PERSONAL FINANCIAL
MANAGEMENT
OBJECTIVE OUTCOME
1. Changes in Net-worth 2. Cash-flow (positive or negative)
SUBJECTIVE OUTCOME
____________
1. Financial Satisfaction
17
The output is expressed as the objective outcome, such as changes in net-worth
and cash flow (Titus et al., 1989) or as financial satisfaction such as level of
satisfaction and goals achieved (Davis & Helmic, 1985; Hira et al., 1992, Mugenda et.
al., 1990; Titus et al., 1989).
2.4 SUMMARY
In summary, the proposed framework incorporates the outcome of the direct and
indirect effects of the variables (independent and dependent). For the purpose of this
study, the input measures are the independent variables of demographic characteristics
and financial knowledge; the transformation measures are the financial attitude and
financial practice (independent variables) and the output measures (dependent
variable) is the financial satisfaction of the medical practitioners.
CHAPTER 3
METHODOLOGY
3.1 INTRODUCTION
The medical services in Malaysia are run by two sectors, the government and the
private. The government public hospitals are found in both the urban as well as
the rural areas. District government hospitals are common even in the rural regions
of all states. Almost all the private hospitals in the country are situated in the urban
areas but private polyclinics are found in almost all towns in the rural and urban
parts of the country. As of 2008, there are 134 government hospitals, 273 private
medical centres and 5895 private medical clinics (maternity and nursing homes)
registered throughout the country under the Malaysian Ministry of Health.
Table 3.1 Distribution of hospitals in Malaysia according to states.
States
Public
Private
States
Public
Private
Johor 12 41 Perlis 1 1
Kedah 9 17 Pulau Pinang 6 26
Kelantan 9 4 Selangor 10 56
Melaka 3 8 Terengganu 6 2
Negeri Sembilan 6 9 Kuala Lumpur 2 53
Pahang 10 10 Putrajaya 1 0
Perak 15 19
Grand Total Public – 134 hospitals; Private – 273 Medical centres
19
The above table, Table 3.1 shows the statistics of the number of public
hospitals and private medical services as well as clinics in Peninsular Malaysia,
taken from the Information and Documentation Unit, Department of Planning and
Development, Ministry of Health, Malaysia. (May 9, 2008).
3.2 STUDY DESIGN
This is a cross sectional study using questionnaires as a study instrument
3.3 STUDY LOCATION
The scope of study is confined only to the states in Peninsular Malaysia i.e
excluding the East Malaysian states of Sabah and Sarawak. The states are
purposefully selected from the Population Census Statistics of Malaysia (year
2006) according to the population density of each state. One state from each
region Northern (Perak), Central (Selangor), Southern (Johor) and Eastern
(Kelantan) were selected. Table 3.2 illustrates the selected states and their
population density with the number of private and public hospitals.
Table 3.2 Distribution of research location
Division of Regions
States
Population
density
No. of Public
Hospitals
No. of Private
Medical Centres
Central Selangor 5,408,865 10 56
Southern Johor 3,003,006 12 41
Northern Perak 2,203.982 15 19
Eastern Kelantan 1,427,678 9 4
The states were then further divided into urban and rural cities. For the
purpose of this study, densely populated city is classified as the urban and the least
populated city which has a private medical centre is termed as the rural in each region.
States and cities are purposefully selected according to the density of the population
20
and the availability of both public and private medical services. When there were no
public and private hospitals in the same district, then the hospitals in the nearest
district in the same state with approximately same population size were chosen. Table
3.3 and Table 3.4 show the choice of urban and rural regions and the selected
hospitals to identify the selection of sampling location.
Table 3.3 Selected hospitals in urban region
Choice of hospital in urban region
States Place Public Private
Selangor
Klang
Hospital Klang
Sri Kota Medical Centre
Johore Johore Bahru Hospital Johore Bahru Johore Specialist Hospital
Perak Ipoh Hospital Ipoh Ipoh Specialist Hospital
Kelantan Kota Bahru Hospital Kota Bahru Perdana Specialist Hospital
Table 3.4 Selected hospitals in rural region
Choice of hospital in rural region
States Place Public Private
Selangor Sungai Buloh Hosp. Sungai Buloh Clinics in Sungai Buloh
Johore Muar & Kulai Hospital Muar & Kulai Clinics in Muar & Kulai
Perak Parit Buntar & Taiping
Hospital Parit Buntar & Taiping
Clinics in Parit Buntar & Taiping & Appolo Med. Centre
Kelantan Tanah Merah
& Kuala Krai Hospital Tanah Merah & Kuala Krai
Clinics in Tanah Merah & Kuala Krai
Source: Malaysia information /private hospitals, July 2007 Malaysia _information/public hospitals, July 2007
21
3.4 SAMPLING METHOD
The selection of the target population was obtained through a multistage sampling
procedure. The sampling method chosen for this study is the systematic random
sampling method. First, lists of all the states and cities in Malaysia and lists of private
and public hospitals are obtained from the Info Centre, Malaysian Ministry of Health
through its website.
Within the medical services, doctors are selected according to stratified
random sampling method by varying sample from stratum to stratum i.e. medical
officers and specialist. Table 3.5 shows the flow chart of sampling method.
Table 3.5 Flow chart of sampling method
In both the cities (the largest and the smallest in each region), the samples
from few private hospitals and private clinics were clustered to make up the sample
size needed. In the public hospitals, there were enough number of participants in the
urban region but the number of medical practitioners practicing in the rural district
States in Malaysia
Northern Region
Central Region
Southern Region
Eastern Region
Rural (Smallest City)
Public
Public
Urban
(Biggest City)
Private
Private
Medical
Officers
Medical Officers
Medical Officers
Medical Specialists
Medical Specialists
Medical Officers
Medical
Specialists
Medical Specialist
s
22
public hospitals were few, therefore except for the central region, a maximum of two
public hospitals were selected for data collection in this study.
3.5 SAMPLING POPULATION
The sampling population in this study was all selected medical specialist and medical
officers who hold a full registration of Malaysian Medical Council.
3.6 SAMPLING UNIT
The target population for this study was qualified registered medical practitioners
licensed by the Malaysian medical Council to practice in Malaysia in the private and
public sector in the selected states in Malaysia.
The selected respondents were permanent medical officers and medical
specialists with no age limit. Government doctors who are employed to work in the
government hospitals and doctors in the private sector who are either self employed,
employed by the a private hospital or renting a premises in the private practices were
eligible to be respondents in this survey.
3.7 SAMPLING FRAME
The sampling frame is medical officers and medical specialist practicing medicine in
selected private and public medical services in Malaysia. Table 3.6 shows the
distribution of registered doctors according to the selected states in Malaysia. Data
gathered from the Ministry of Health, Malaysia, (December 2006).
23
Table 3.6 Number of registered medical doctors in the selected states.
State
Doctors in public
hospitals
Doctors in private medical centres
Doctors in private and
public hospitals (Combined)
Selangor
1030
145
3855
Johor 1778 202 1950
Perak 1780 200 1980
Kelantan 3000 855 1175
This figure is not inclusive of medical practitioners practicing in clinics.
Source: Selangor: http://www.jknsel.moh.gov.my Perak: http://www.jknperak.moh.gov.my Johore: http://www.jknjohor.moh.gov.my Kelantan: http://www.jknkelantan.moh.gov.my
3.8 SAMPLE SIZE
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
Planners (n=1), Academic lecturer, Financial Planning lecturers (n= 2), senior medical
specialists (n=2) and medical officers (2). This was done to determine the financial
31
terminology and the simplicity of the questions that might be too technical for the
medical professionals.
3.15 RELIABILITY OF QUESTIONNAIRE
Reliability Coefficient analysis was performed on the knowledge, attitude, practice
and satisfaction questions. It was found that deleting some questions increased the
reliability. Table 3.12 presents the reliability Coefficient as measured by Cronbach’s
alpha.
Table 3.12 Cronbach’s coefficients for financial management variables
3.16 PILOT STUDY
Twenty one volunteers took part in the pilot study (Private n=3, Public n=18). The aim
of the pilot study was to provide information about how the questionnaire worked and
as a result changes were made before the main survey was conducted. Some questions
were deleted and some were added. Two questions on financial knowledge on
investment were deleted due to the terminology ‘asset allocation’ was too technical
and the interest rate calculation was time consuming.
Eighteen out of the twenty one (85%) pilot respondents were reluctant to give
information on their cash flow, assets and liabilities and were unhappy to reveal their
current financial status. As a result, free personalized financial planning initial
Items analyzed
N
Reliability Coefficient
(Cronbach’s alpha)
Knowledge 16 0.6058
Attitude 18 0.7471
Practice 35 0.7421
Satisfaction 10 0.8339
32
assessment and evaluation (financial health check) reports by two Certified Financial
Planners and a complementary booklet on ‘Personal Financial Management Tips for
Doctors’ were introduced to motivate the respondents to take part in the survey. A
second pilot run was conducted to see the response rate of the medical practitioner to
the survey. Majority of the practitioners approached, willingly volunteered to take
part and gave very detailed information on their income, expenditure, assets and
liabilities. This was because they wanted the financial planning report to know their
financial standings.
3.17 RESEARCH ETHICS
This research is conducted on a voluntary basis where all randomly selected
respondents are invited to participate through an invitation stating the objectives and
importance of the study (Attachment 1). Respondents are required to give their
consent to participate through the consent letter (Attachment 2). Those selected
medical practitioners were allowed to withdraw from the study at any point should
they felt uncomfortable to reveal their financial status.
As a token of appreciation, all participants were given a current financial
health check in which initial assessment and evaluation of their current financial
situation was done. Individual evaluation reports and comments to improve the
current financial situation were also suggested. In addition to this, a booklet entitled,
‘money management tips for doctors’ were presented to each individual.
3.18 DATA ANALYSIS
Data analysis was done using “Statistical Package for Social Sciences (SPSS).
Descriptive and bivariate statistics are used to calculate percentage, mean scores and
standard deviations. Chi-square tests and analysis of variance (ANOVAs) were used
in the comparison studies. Pearson r coefficient of correlation was used in determining
the correlation between the variables.
33
3.19 CONCLUSION
The research methodology in this chapter that discusses the design of the study,
sampling, instruments used and the statistical analysis of the data will help to test
the hypotheses raised in Chapter 1.
CHAPTER 4
DATA ANALYSIS
4.1 INTRODUCTION
This chapter focuses on the analysis and interpretation of the research results.
Collected data were analysed using Statistical Packages for Social Sciences (SPSS)
for Window Release 16.0. The descriptive and bivariate analysis provides the findings
tested against the hypotheses.
4.2 DISTRIBUTION AND COLLECTION OF QUESTIONNAIRES
4.2.1 Challenges in Data Collection
The pilot study provided training for the interviewers to obtain required data from the
selected medical practitioners who are the respondents in this study. It was found
easier than expected to recruit the respondents and the respondents themselves largely
enjoyed the interviews. They were eager to take part since the questions were not of
medical terms but of finance which was out of their professional field.
In the actual survey, the respondents were keen to know more about their
current personal financial management styles and expected to get the financial health
report as soon as possible. The two weeks time frame given to produce the report
usually was cut short due to constant email reminders and telephone calls by the
respondents. Majority of the respondents were happy to take part in the survey.
35
In the pilot study the duration of interview was estimated to be about half an
hour to forty five minutes but in the actual survey this was not true, some interviews
took double the time or longer. This was due to the respondents taking advantage of
the interviewing financial planner’s expertise to ask advice about their financial
situation.
Due to the outbreak of HINI epidemic in some hospitals, face to face
interviews were not possible even though the goal of this study was to make contact
with each subject personally. Some departments distributed the questionnaires to the
individual respondents that resulted in the misplacement of the forms and in the
misinterpretation of the study objectives. New sets of questionnaires were printed and
coded. About 20% of the respondents who took the 2nd set of survey questions did not
manage to complete it again in the time frame. More outstation visits were carried out
to locate these group of respondents which caused time and financial constrain. After
few attempts, a decision was made to call off the collection of the forms from these
‘no urgency’ respondents even though they were keen to take part in the study.
There was no obvious difference in the respondents’ eagerness to take part in
the survey be it in the public or private. The respondents in the private sector though
were keen to take part in the first part of the questionnaire; most of them were
reluctant to complete the cash flow and net worth section. Therefore in the private
sector, only interested respondents who were willing to fill in the second part of the
questionnaire were chosen for this study.
4.2.2 Collection of Questionnaires
Four regions were chosen, namely, Eastern, Northern, Southern and Central. Of these
regions, 460 randomly selected medical practitioners from 11 public hospitals, 8
private medical centres and 20 GP clinics accepted the invitation to take part in the
study interview.
Of the 460 only 87.4% (N=402) of these practitioners (public, N= 388; private,
N=72) successfully completed the survey forms. 99% of the doctors in the public
36
sector completed both section 1 (general information) and section 11 (personal
financial information such as cash flow and net worth statements) of the
questionnaire. 90% of the doctors in the private practice, even though initially agreed
to fill up both sessions, somehow refuses at the end of the interview, leaving only the
section 1 completed.
.
Table 4.1 shows the distributed, collected and success rate of data collection in
the private and public medical practice.
Table 4.1 Distribution and collection of the survey forms
Private Public
Region
Location
Questionnaires
Questionnaires
Distributed
Collected
%
Achieved
Distributed
Collected
%
Achieved
Eastern Rural 4 3 75.0 26 22 84.6
Urban 4 3 75.0 26 25 96.2
Northern Rural 5 5 100 45 45 100
Urban 5 4 80.0 45 26 57.8
Southern Rural 5 4 80.0 45 33 73.3
Urban 5 4 80.0 45 42 93.3
Central Rural 22 20 90.9 78 78 100
Urban 22 20 90.9 78 67 85.9
Total collected
72
64
88.9
388
338
87.1
88.9% respondents from the private sector and 87.1% from the public hospitals
were interviewed over a period of one year and the total success rate of collection
achieved for both private and public medical services was 87.4% (N=402). In the
northern urban public hospital only 57.8% response was achieved compared to all
37
other hospitals in other regions. This was because the selected doctors in this
particular hospital were overwhelmed with work and were unable to allocate time for
an interview. They requested to complete the questionnaires at their own free time
which resulted in failure in locating and contacting the participants. Attempts to
collect the forms were called off after numerous reminders and visits.
4.3 DESCRIPTIVE ANALYSIS
4.3.1 Demographic Characteristics
A demographic detail of the respondents were analyzed through descriptive statistic
and is illustrated in Table 4.2.
Table 4.2 Demographic characteristics
Demographic
Characteristics
N
%
Northern 83 20.6
Central 183 45.5
Southern 83 20.6
Region
Eastern 53 13.2
Rural 217 54.0 States
Urban 185 46.0
Public 344 85.6 Sector
Private 58 14.4
Male 162 40.3 Gender
Female 240 59.7
Under 30 years 139 34.6
31-40 years 182 45.3
41-50 years 53 13.2
Age
Above 51 years 28 7.0
38
Continue ... Malay 219 54.5
Chinese 67 16.7
Indian 103 25.6
Ethnicity
Others 13 3.2
Single 117 29.1
Married 279 69.4
Marital Status
Others 6 1.5
No Children 144 35.8
1-3 Children 184 45.8
Number of Children
>3 Children 74 18.4
1-5 years 177 44.0
6-10 years 94 23.4
11-15 years 75 18.7
Years of service as Medical Practitioners
>16 years 56 13.9
Medical officers 258 64.2
Specialists 144 35.8
Rank
Local 175 65.3
Overseas 93 34.7
Undergraduate Studies
Local 164 56.4
Overseas 127 43.6
Postgraduate Studies
Wealthy 29 7.2
Average 317 78.9
Poor 54 13.4
Don't Know 2 0.5
Perception of Families’ Financial Background
Cash flow Surplus 299 81.92
Deficit 66 18.08
Continue ...
39
Net worth Negative
25 7.81
RM 0.00 - RM 249,999
193 60.31
RM 250,000 – RM 449,999
54 16.88
RM 500,000 – RM 749,999
26 8.12
RM 750,000 – RM 999,999
8 2.50
Above RM 1,000,000
14 4.38
Table 4.2 shows that the medical practitioners who completed the survey
forms are from urban, 46.0 % and rural 54.0% regions. The ethnic composition was
Malay (54.5%), Indians (25.6%), Chinese (16.7%) and others (3.2%). The ethnic
proportion did not reflect the proportion of registered medical professionals in
Malaysia but it reflected the ratio of doctors from the sampling locations. 64.2%
(N=258) of the respondents were medical officers and 35.8% were specialist. Females
respondents recorded 59.7% (N=240) participation compared to 40.3% males
The ages of the respondents ranged from 30-55 years. 45.3% were in the age range of
31 to 40 years old. 69.4% (N=279) were married with 45.8% (N=184) of these
married practitioners had less than 3 children whereas 18.4% (N=74) had more than 3
children. 44% of these doctors worked less than 6 years as medical practitioners,
23.4% have worked 6-10years, and 18.7% and 13.9% have worked 11-15 years and
more than 16 years respectively.
175 (65.3%) of these practitioners did their undergraduate studies locally and
34.7% graduated from overseas. In completing postgraduate studies, 43.6% went
overseas while 56.4% did it locally. As a child, only 7.2% of the medical practitioners
perceived their families financial background as wealthy. Majority 78.9% (N=317)
perceived that they had an average financial background while 13.4% felt they were
poor. 0.5% was not sure of their childhood family financial standing.
To determine the surplus or deficit in the cash flow statements of the
respondents, the annualised household expenditure was deducted from the overall
40
annualised income (in flow from all sources of income) such as net salary, allowances,
rental, dividends and business. A total of 365 respondents out of 402 (90.8%) filled up
this section of the study. 81.92% (N=299) had surplus in annualised cash flow while
66 (18.8%) showed deficit cash flow. 79.6% (N= 320) practitioners completed the
asset and liability questionnaire to enable the calculation of the individual’s net worth.
The net worth statement illustrated that majority 60.3% (N=193) of the practitioners’
net worth was in the range from zero to less than RM500, 000. Negative net-worth
recorded 7.8%, while 16.9% fall in the RM 500,000 to RM 749,999 range. 2.5% of the
doctors’ net worth was in the range of RM 750.000 to RM999, 999 net worth. Only
4.4% (N=14) had above one million in net worth.
4.3.2 Financial Management Knowledge
Financial Management Knowledge questionnaire with 16 item questions with ‘true,
false and don’t know’ format was used as survey instrument to test the financial
literacy of medical practitioners. These questions covered 5 areas of personal financial
management knowledge sub scale as shown below:
Table 4.3 Financial management knowledge sub scale
Financial management knowledge sub scale
Questions (Numbers)
Cash management
4, 14 &16
Credit management 6 & 12
Retirement & Estate management 1, 3 & 9
Risk management 2, 7, 8 & 15
Investment management 11 & 13
General management 5 &10
Table 4.4 summaries the descriptive summary for the knowledge scores. Item
analysis was performed, correctly identified items were summed and the score was
41
transformed into a percentage. Each correct answer carried 1 point, incorrect (wrong)
and "I don't know" answers were given zero points.
Table 4.4 Financial management knowledge scores
No
Item
Correct Answer
% Correctly Answered
% Wrongly
Answered
% Don’t know
1
A person needs a will only when there is a large estate to be passed on to heirs.
False
83.6% N=336
11.2% N=45
5.2% N=21
2
Term insurance is the best form of life insurance protection available for one’s dollar
True 21.1% N=85
29.9% N=120
49.0% N=197
3
If a Muslim dies with a will, his or her assets are distributed according to the will by the executor provided it is not contested.
True 20.4% N=82
51.7% N=208
27.9% N=112
4
A good budget provides only for expected expenses.
False
67.7% N=272
27.8% N=112
4.5% N=18
5
Only families with large enough assets to be concerned about financial planning.
False
92.8% N=373
5.7% N=23
1.5% N=6
6
To have a good credit rating one must make purchases on credit and make payments according to the credit contract.
True 42.0% N=169
39.6% N=159
18.4% N=74
7
Insurance is a way to reduce the risk of a financial disaster.
True
75.6% N=304
15.7% N=63
8.7% N=35
8
Life insurance needs vary with age and the size of a family.
True
78.9% N=317
9.7% N=39
11.4% N=46
9
Retirees need 70% to 80% of their pre-retirement income to maintain the same standard of living during retirement
True
60.0% N=240
20.2% N=81
19.8% N=79
10
A person is more likely to reach his or her financial goals by planning for the future.
True
98.7% N=395
0.8% N=3
0.5% N=2
11
Having different types of investment and savings decreases financial risks.
True 88.3% N=353
6.7% N=27
5.0% N=20
12
A credit card advance is a cheaper form of credit than a personal bank loan.
True
60.3% N=241
10.2% N=41
29.5% N=118
42
13 In most cases, the lower the expected rate of return on an investment, the lower the risk.
True 64.5% N=258
14.7% N=59
20.8% N=83
14
Borrowing money to purchase an item (personal use) decreases money available for future spending
True
74.5% N=298
19.5% N=78
6.0% N=24
15
Most financial risk can be covered by insurance.
True 26.3% N=105
51.1% N=204
22.6% N=90
16
People are more likely to make better financial decisions if those decisions are based on their financial records.
True
90.5% N=362
3.8% N=15
5.7% N=23
Questions (1, 3 & 9) evaluated the respondents’ knowledge on Retirement
and Estate Planning. 83.6% medical practitioners understood that a Will is needed
even when the estate is not large enough but their knowledge in Islamic Will writing
is poor (27.9%) did not know the answer, and 51.7% answered wrongly). Only 20.4%
of the respondents knew that Muslims can write a will subject to contestability. In
retirement planning 60% (just above average) of the respondents knew that they need
70% to 80% of their pre-retirement income to maintain the same standard of living
during retirement. Overall, 54.6% medical practitioners answered the retirement and
estate planning knowledge questions correctly.
Risk management questions (Q2, Q7, Q8 and Q15) tested the insurance
knowledge of the respondents. 75.6% doctors knew that insurance is a way to reduce
the risk of a financial disaster, (Q7) and 78.9% knew that life insurance needs vary
according to age and the size of a family, (Q8) but they do not know the types of
insurance coverage available. Half of the respondents (49%) did not know that term
insurance is the best form of life insurance protection available for one’s dollar (Q2).
Another 29.9% of doctors answered wrongly for the same question. Only 26.3% of
medical practitioners knew that most financial risk can be covered by insurance (Q15)
whereas 51.1% answered incorrectly and 22.6% did not know the answer for the
question. Therefore only 50.5% of the participants scored correct answers for
knowledge questions in risk management.
43
Financial knowledge questions on Investment (Q11 and Q13), 88.3% and
64.5% survey respondents respectively scored correct answers indicating that the
doctors are aware that by having different types of investments and savings, the
financial risk decreases, and in most cases, the lower the expected rate of return on an
investment, the lower the risk. Overall, 76.4 % doctors scored correct answer for
knowledge in investment questions.
In Cash management questions (4, 14 & 16), 74.5% respondents gave correct
answers to the question on ‘Borrowing money to purchase an item (personal use)
decreases money available for future spending’. 90.5% of the practitioners knew that
people are more likely to make better financial decisions if those decisions are based
on their financial records; but contradicting this statement, 67.7% doctors said that a
good budget provides only for expected expenses. Therefore overall 77.6% medical
practitioners gave correct answers to questions on the knowledge in cash management.
In Credit management, for question number 6, only 42% of the medical
practitioners have the knowledge that ‘to have a good credit rating one must make
purchases on credit and make payments according to the credit contract’ whereas
39.6% answered wrongly and 18.4% answered ‘don’t know for this question. 60.3%
of respondents know that a credit card advance is a cheaper form of credit than a
personal bank loan (question 12). This shows that only 51.2% of the medical
practitioners have correctly scored the credit management knowledge questions.
General Management questions such as “only families with large enough
assets are to be concerned about financial planning” (Q5) and “a person is more likely
to reach his or her financial goals by planning for the future” (Q10), scores of 98.7%
and 92.8% respectively, indicates that an average of 95.8% of the respondents have
correct scores for the general management knowledge questions.
Fig. 4.1 shows the percentage of medical practitioners who scored correct
answers for knowledge on each area of finance. 95.8% of medical practitioner passed
the knowledge test on general management; followed by 77.6% participants on cash
management; and 76.4% participants on investment management. 3 other areas in
44
which only half of the survey participants scored correct answers are credit
management (51.2% participants), risk management 50.5% participants and 54.7%
participants on retirement and estate planning.
77.6
51.2 54.7
76.4
50.5
95.8
0.0
25.0
50.0
75.0
100.0
Cash Credit Retire Invest Risk General
% M
edic
al
Pra
ctit
ion
ers
fhj
Fig 4.1 Six areas of financial management knowledge
Figure 4.2 shows the overall item analysis of the individual questions in a
graphic format. Percentage of incorrect (wrong) and “don’t know answers were
grouped together as ‘wrong answers’. Correct answers were given 1 mark each.
0
20
40
60
80
100
%
Me
dic
al
Pra
cti
tio
ne
rs
hk
kk
Correct Answer 84 21 20 68 93 42 76 79 60 99 88 60 65 75 26 91
Wrong Answer 16 79 80 32 7 58 24 21 40 1 12 40 36 26 74 10
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Fig 4.2 Item analysis of financial management knowledge
45
Close to 80% of medical practitioners gave incorrect answers for questions
number 2, 3 and 15 indicate that there is lack on financial knowledge in these areas of
insurance and estate planning. Only 21.1% of the doctor population know that (Q2)
term insurance is the best form of life insurance protection available for one’s dollar.
Almost 80% did not know this. Similarly, question 3 on Islamic will writing too had
80% medical practitioners answered incorrectly. Question number 15, another
insurance question in which 51% doctors answered wrongly and another 23% did not
know the answer. Table 4.5 and Figure 4.3 show the statistical analysis and the
histogram distribution of financial management knowledge mean scores.
Table 4.5 Financial management knowledge mean scores
Mean
SD
N
Variance
Skewness
SE Skew
Range
10.45
2.14
399
4.58
-0.445
0.122
0-16
Mean Score
16.014.012.010.08.06.04.0
Num
ber
of M
edic
al P
ractitioners
160
140
120
100
80
60
40
20
0
Figure 4.3 Financial management knowledge mean scores
The mean score for total financial management knowledge is 10.45 +/- 2.14
SD (Table 4.5) and the score range was 0-16. The distribution of the scores on this
index was significantly skewed towards negative (skewness =-0.445, SE skew = 0.12)
46
with the score clustering around higher values. Based on Jodi Lynn’s (1996) criterion,
it is expected that the scores would be distributed in such a manner as this index was
design to measure general financial management knowledge.
The financial management knowledge scores were divided into 3 categories,
namely, Low mean score (1- 5), medium mean score (6-11) and high mean score (12-
16). Table 4.6 illustrates the scores obtained by the number of medical practitioners
and the category in which they fit. It is noted that 399 medical practitioners answered
all the 16 knowledge questions. The majority of them, 257 out of 399 (64.4%) are in
the medium financial knowledge category while 33.6% (N=134) have high financial
knowledge.
Table 4.6 Financial management knowledge score categories
Category Total Low Medium High
Scores 16 1-5 6-11 12-16
Respondents 399 8 257 134
Figure 4.4 shows the level of financial knowledge of Medical Practitioners
who participated in this survey and subsequently representing the entire population of
Medical Practitioners in Malaysia.
Figure 4.4 Financial management knowledge level
In conclusion, only 33.6% of the doctors’ population in Malaysia has High
Financial Management Knowledge.
High; N=134
33.6%
Medium; N= 257
64.4%
Low; N= 8
2.0%
47
4.3.3 Financial Management Attitude
Attitude on financial management was measured with 18 item 5 point Likert scale
(‘1’= strongly disagree, ‘5’= strongly agree) questionnaire indicating the respondents’
extend to which they agree or disagree with the statement. High scores indicate
positive attitude towards personal financial management. Table 4.7 shows the
descriptive statistics of financial management attitude.
Table 4.7 Financial management attitude scores
No Item Mean Score +/- SD
1= Strongly Disagree 5= Strongly Agree
% Positive Attitude
1 It is important for a family to develop a regular pattern of saving and stick to it.
4.47 +/- 0.63
95.3%
2* Keeping records of financial matters is too time-consuming
2.44 +/-1.17
61.9%
3
Families should have written financial goals that help them determine priorities in spending.
4.26 +/- 0.73
89.4%
4 Each individual should be responsible for his or her own financial well-being.
4.67 +/- 0.53
98.1%
5 A written budget is absolutely essential for successful financial management.
4.26 +/- 0.77
88.0%
6* Saving is not really important. 1.15 +/- 0.50
98.3%
7* As long as one meets monthly payments
there is no need to worry about the length of time it will take to pay off outstanding debts.
1.71 +/- 0.91
94.1%
8
Both husband and wife should have some responsibility for seeing that bills are paid.
4.50 +/- 0.70
95.3%
9* It does not matter how much a couple saves as long as they do save.
2.77 +/- 1.25
61.2%
10*
Families should really concentrate on present time when managing their finances.
2.69 +/- 1.18 67.9%
48
11*
Financial planning for retirement is not really necessary for assuring one's security during old age.
1.50 +/- 0.83
91.8%
12*
Having a financial plan makes it difficult to make financial investment decisions.
1.95 +/- 0.91
78.5%
13 It is really essential to plan for the possible disability of a family's wage earner.
4.13 +/- 0.88 81.7%
14*
Making sure your property is insured against reasonable risks is not really necessary for successful financial management.
1.96 +/- 0.91 79.8%
15* Planning is an unnecessary distraction when families are trying to get by today.
1.92 +/- 0.94
77.8%
16
Planning for spending money is essential to successfully managing one's life.
4.47 +/- 0.63
95.3%
17 Planning for the future is the best way of getting ahead in the future.
4.56 +/- 0.56
97.7%
18 Thinking about where you will be financially in 5 or 10 years in the future is essential for financial success.
4.46 +/- 0.65
93.4%
* Negatively worded questions.
There were 9 negatively worded questions. This was to keep the attention of
the participants alert during answering the questionnaire. Question 1, asked if it was
important for a family to develop a regular pattern of saving and stick to it. 95%
agreed to the statement, making it a positive attitude towards long term saving. 98.3%
agreed that saving is really important. 61.2% medical practitioners disagreed that it
does matter how much a couple saves as long as they saved (Q9). This was a
negatively worded question. Therefore by disagreeing, the practitioners showed
positive attitude. This is a discipline question to find the habitual attitude of the
respondents.
Questions 2, 3, 5 and 16 are questions on budgeting. 89.4% of doctors agreed
that families should have written financial goals that help them determine priorities in
spending. 88.0% felt that a written budget is absolutely essential for successful
financial managements. 61.9% disagreed that keeping records of financial matters is
49
too time consuming and 95.3% (Q16) of the respondents agreed that planning for
spending money is essential to successfully managing one’s life. All these answers
pointed positive attitude towards personal financial management.
The attitude towards financial responsibility and financial wellbeing of the
family was tested in questions 4, 8 and 10. Respective scores of 98.1% and 95.3% for
questions 4 and 8 indicate that medical practitioners in Malaysia have positive attitude
towards the household responsibilities. 67.9% respondents disagreed that families
should concentrate on present time when managing their finance (Q10) and also
disagreed that (Q15) planning is an unnecessary distraction when families are trying to
get by today. They knew that they need to take the future into consideration when
managing their finance. This again scored positive attitude towards money
management.
91.8% of doctors agreed that financial planning for retirement is necessary
for assuring one’s security during old age. This question was negatively worded, but
by disagreeing to the statement (Q11), they scored positive attitude for financial
management. Other questions on planning were questions number 17 and 18. 97.7%
agreed that planning is the best way of getting ahead in the future. 93.4% had positive
attitude on thinking about where they will be financially in 5 or 10 years in the future.
This shows that doctors have financial goals.
Attitude towards insurance (risk management) also scored favorable results.
Questions 13 and 14 asked about planning for the possible disability of a family’s
wage earner as well as insuring their proprieties against reasonable risk for successful
financial management. Both questions had positive attitude towards financial
uncertainty. 94.1% respondents had positive attitude towards the settlement of
outstanding debts (Q7). On the other hand 78.5% disagreed that having a financial
plan makes it difficult to make financial investment decisions. This shows that they
have clear financial objectives and goals with positive attitude. Negatively worded
questions were recoded before statistical analysis was performed to achieve the total
attitude scoring. Table 4.8 and Fig. 4.5 show the financial management attitude of
medical practitioners’ mean score values.
50
Table 4.8 Financial management attitude mean score
Mean Score
SD
N
Variance
Skewness
SE Skew
Range
71.33
6.45
390
41.65
-0.169
0.124
18-90
Table 4.8 shows that the Mean score for financial management attitude of
medical practitioners in Malaysia is 71.33 +/- 6.45 SD and the number of practitioners
attempted to answer the questions were 390.
Mean Score
85.082.580.077.575.072.570.067.565.062.560.057.555.0
Nu
mb
er
of
Me
dic
al P
ractitio
ne
rs
80
60
40
20
0
Figure 4.5 Financial management attitudes mean scores
Similar to the knowledge scoring, it is noted in Table 4.8, the distribution of
scores was negatively skewed (skewness = -.169, SE skew = .124) with scores tending
towards higher values. Inspection of the distribution in Fig 4.5 revealed that this scale
approximated a normal distribution. There were 18 Likert scale questions to evaluate
attitude. The minimum and maximum scores were 18 to 90. To calculate the low,
51
medium and high values, the formula (Max-Min)/3 was used. Then each category
was divided accordingly as Low Attitude (18-42 scores), Medium Attitude (43-66
scores) and High Attitude (67-90 scores). Table 4.9 shows this.
Table 4.9 Financial management attitude score categories
Category
Low
Medium
High
Scores 18-42 43-66 67-90
Respondents
0
92
298
Figure 4.6 Financial management attitude level
In conclusion, 76.4% of the medical practitioners in Malaysia have high
financial management attitude.
4.3.4 Financial Management Practice
Financial management practice was measured with 35 item 5 point Likert scale (‘1’=
strongly not typical of me, ‘5’= strongly typical of me). The answers indicate the
medical practitioners’ competency on personal financial management on areas in cash,
credit, retirement, estate planning, insurance (risk) and general management. High
scores indicate favourable personal financial management practice.
High; N=298 76.4%
Medium; N=92 23.6%
52
(i) Cash management practice
Table 4.10 shows the financial cash management practices. Cash management is a
sub-division of Financial Management Practice. There are 10 items on a 5 point
Likert Scale (1= strongly not typical of me; 2= not typical of me; 3= Not sure;
4=typical of me; 5=Very typical of me). Practice was measured as positive or
negative practice. Similarly, for cash management practice, the measure was positive
or negative. Mean score of 3 and below was considered negative practice since
not sure (3) is equivalent to not practising it. Mean scores of more than 3.01 were
rated as favourable or positive practice. For negatively worded questions, the
scores were reversed; mean score of below 3 will give positive practice while mean
scores of more than 3 is considered negative practice.
Table 4.10 Cash management practice scores
No Item on Cash Management
N
Mean +/-SD 1= Not typical
5=very typical
% Positive Practice
1 I follow a weekly or monthly budget.
397
3.54 +/- 1.08
64.0%
2
I use banking account that pays me interest.
394
3.43 +/- 1.21
58.9%
3*
Sometimes I write bad cheques or one with insufficient funds
396
1.58 +/- 0.87
75.2%
4* I usually live from current month salary to the following month salary.
394
2.61 +/- 1.37
63.2%
5
I save receipts of major purchases.
397
3.89 +/- 1.19
75.9%
6
I estimate household income and expenses
397
3.96 +/- 1.65
78.6%
7 Once a year, I estimate my household net worth
397
2.88 +/- 1.23
34.3%
8
I review and evaluate my spending habits.
397
3.69 +/- 1.04
71.2%
9
I write down where and how my money is spent
397
3.21 +/-1.22
50.1%
10
I regularly set aside money for large expected expenses (like insurance or taxes).
377 4.02 +/- 0.94 81.9%
* Negatively worded questions.
53
10 cash management questions were asked in this section. Out of the 10
questions, only one question (Q7) projected a negative practice. 65.7% of the doctors’
population does not estimate their household net worth annually. Only a minority of
34.3% of the medical practitioners have positive cash management practice by
estimating their household net worth annually. Contradicting to this statement,
doctors scored 78.6% positive attitude by admitting (Q6) that it is typical of them to
estimate household income and expenses. 36.8% of medical practitioners have very
little control over their expenditure (Q4). They admit that they usually live from
current month salary to the following month salary compared to their pier (63.2%)
who said they are not typical of that statement. On the other hand, 81.9% of doctors
are aware of the consequences of spending today versus saving for tomorrow. It is
typical of them to regularly set aside money for large expected expenses (Q10).
Only 50% of the respondents write down where and how their money is spent
(Q9). Similar questions (Q1) I follow a weekly or monthly budget, (Q8) I review and
evaluate my spending habits and (Q5) I save receipts of major purchases scored 64%,
71.2% and 75.9% respectively, indicating positive practices. Question 3 is a
negatively worded question. The mean score for this question is 2.88 +/- 1.23, which
fall in the positive practice range. Therefore, 75.2% doctors have good practice by not
writing bad cheques or one with insufficient funds. About 23 % of the practitioners
do not own a current account to issue cheques (this analysis was done manually). Only
58.9% of doctors use banking accounts that pays them interest, (Q2).
Negatively worded questions were recoded to analyse the scoring. Since there
were 10 questions, the minimum score was 10 and the maximum was 50 scores.
Table 4.11 shows that the cash management mean score derived from the analysis is
36.5 +/- 5.82 SD and the number of participants was 365.
Table 4.11 Cash management practice mean score
Mean Score
SD
N
Variance
Skewness
SE Skew
Range
36.5
5.82
365
33.9
-0.199
0.128
10-50
54
Fig 4.7 shows the distribution of cash management scores of the medical
practitioners in financial management practice.
Mean Score
50.047.545.042.540.037.535.032.530.027.525.022.520.0
Num
ber
of M
edic
al P
ractitioners
80
60
40
20
0
Figure 4.7 Cash management practice mean score
Although the distribution of the scores are negatively skewed (skewness = -.199,
SE skew = .128), with the scores grouping towards the higher values, it is estimated to
be of a normal distribution for this study. There were 10 Likert scale questions to
evaluate cash management practice. The minimum and maximum scores were 10 to
50. To calculate the low, medium and high values, the formula (Max-Min)/3 was
used. Low practice scores (11-23), Medium practice scores (24-37) and High practice
scores (38-50). Table 4.12 shows the score categories and the number of respondents
achieved the scores.
Table 4.12 Cash management practice score categories
Category
Low
Medium
High
Scores
11-23
24-37
38-50
Respondents
7
193
166
55
Figure 4.8 Cash Management Practice Level
Figure 4.8 illustrates that 45.4% of the medical practitioners in Malaysia
practice high levels of financial cash management.
(ii) Credit management practice
There were 10 questions in credit management practice questionnaire. Respondents
were asked to indicate the degree to which each item was typical of them. The 5
point Likert Scale (1= strongly not typical of me; 2= not typical of me; 3= sometimes;
4=typical of me; 5=Very typical of me). Mean score of 3 and below was considered
negative practice since ‘sometimes’ (3) is not a favourable practice. Mean scores of
more than 3.01 are rated as favourable or positive practice. For negatively worded
questions, the scores are reversed; mean score of below 3 will give positive practice
while mean scores of more than 3 is considered negative practice.
Table 4.13 illustrates the credit management scores achieved by the medical
practitioners who took part in this survey.
Low; N=7 1.9%
Medium; N=193 High; N=166 45.4% 52.7%
56
Table 4.13 Credit management practice scores
No
Item on Credit Management
N
Mean +/-SD 1=Not typical 5=very typical
%
Positive Practice
1
Currently I have – number of credit cards
397
1.62 +/- 1.28
57.4 %
2* I usually do not pay the total balance on my credit card; but instead, just make a minimum or partial payment.
315
1.84 +/- 1.22
80.7%
3* I get myself into more debt each year to pay off the previous years credit card debts
314
1.53 +/- 0.91
94.2%
4* I obtain cash advances in order to pay my credit balances.
315 1.59 +/- 1.04
83.5%
5*
My use of credit cards/ credit limit increases with each year.
315 2.07 +/- 1.18
72.1%
6
I rarely pay finance charges.
311
3.32 +/- 1.42
52.1%
7
I pay my bills as due.
315
4.29 +/- 1.03
87.0%
8
I make payments on large debts as on scheduled.
315 4.21 +/- 0.92
83.2%
9
I compare my credit card receipts with my monthly statements.
315 3.51 +/- 1.25
58.7%
10*
I sometimes receive overdue notice because of late or missed payments.
315 1.97 +/- 1.17
74.0%
*Negatively worded questions.
Question 1, identified the number of credit cards the respondents owned. The
average mean score of 1.62 +/- 1.28 SD indicates that 57.4% medical practitioners
hold an average of 2 credit cards. Figure 4.9 and Table 4.14 explains the number of
credit cards owned by the medical practitioners in this survey.
57
Number of Credit cards
543210
Nu
mb
er
of
Me
dic
al P
ractitio
ne
rs
80
60
40
20
0
Gender
Male
Female
Fig 4.9 Gender vs. number of credit cards
Table 4.14 Gender vs number of credit cards
Number of Credit Cards Owned
Gender 0 1 2 3 4 5
Total
Total N
minus 0 card
users
N=
Male
18
41
56
22
14
10
161 40.6%
161-18= 143 45.5%
(56+22+14+10)/143 = 71.3%
N= Female
65
73
58
32
5
3
236 59.4%
236 -65= 171 54.5%
(58+32+5+3)/171 = 57.3%
Total
83
20.9%
114
36.3%
114
36.3%
54
17.2%
19
6.1%
13
4.1% 397
100% 314
100%
A total of 397 respondents, (40.6% male and 59.4% female) answered this
credit card question. From the analysis, it is noted that 20.9% (N=83) of the medical
practitioners do not own any credit cards. For further analysis, these zero card uses are
58
minus off and the highlighted total (N=314) is used. These are the actual credit card
uses in this study.
Among the total number of doctors using the cards, it is noted that there are
more female doctors (54.5%) compared to the male (45.5%). But, it is reverse in the
usage of more than 1 card. The male doctors (71.3%) out beat the female doctors
(57.3 %). Using more than 1 card is a negative financial management practice.
Therefore, the female doctors are better credit card managers than the male doctors.
It is also noted that, only 36.3% doctors (13.1% male and 23.2% female) in
Malaysia are ideal credit card users who uses only one card.
Number of credit cards
543210
No
of
Me
dic
al P
ractitio
ne
rs
120
100
80
60
40
20
0
Sector
Public
Private
Figure 4.10 Sector vs number of credit cards
59
Table 4.15 Sector vs number of credit cards
Number of Credit Cards
Sector 0 1 2 3 4 5
Total
Total
minus 0
card uses
N=
Public
79
101
99
37
14
10
340
85.6%
40 -79=261
83.1% (99+37+14+10)/261 = 61.3%
N=
Private
4 13 15 17 5 3
57 14.4%
57-4=53 16.9%
(15+17+5+3)/53 = 75.5%
Total
83
20.9%
114
36.3%
114
36.3%
54
17.2%
19
6.1%
13
4.1% 397
100%
314
100%
Figure 4.10 and Table 4.15 shows that out of 397 medical practitioners
using credit cards, 85.6% (N= 340) of them are from the public sector and the rest
14.4% (N=57) are from the private practice. Within the sectors, it is noted that 23.2 %
(79/340) of the medical practitioners in the public do not use any credit card compared
to only 7% (4/57) in the private sector. For further analysis, these zero card uses are
minus off to get the actual credit card uses (N=314) in this study and are highlighted
in Table 4.15.
The number of medical practitioners using credit cards in the public
medical services are greater compared to practitioners in the private sectors i.e. 38.7%
(101/261) doctors in the public sector compared to 24.5% (13/53) in the private
practice. But the usage of more than 1 card is seen greater among the private
practitioners (75.5%) than those in the public services (61.3%). It is also noted that,
out of the 36.3% of ideal credit card users in Malaysia 32.2% (101/314) are from
public sector while the other 4.1% (13/314) are from private practice. Therefore, it can
be concluded that the doctors in the public sector practice more positive credit card
management than those in the private sectors.
60
Number of Credit Cards
543210
Num
ber
of M
edic
al P
ractitioners
60
50
40
30
20
10
0
Age
Under 30
31-40
41-50
51 above
Figure 4.11 Age vs number of credit cards
Table 4.16 Age vs number of credit cards
Number of Credit Cards Owned
Total
Age
0 1 2 3 4 5
Total
minus 0
card users
N=
Under 30 46 38 38 11 3 1
137 34.5%
37-46 = 91 28.9%
(38+11+3+1)/91 = 58.2%
N= 31-40
26 57 54 28 10 4
179
45.0%
179-26 =153
48.7% (54+28+10+4)/153 = 62.7%
N=
41-50 8 13 17 7 4 4
53
13.4%
53-8=45 14.3%
(17+7+4+4)/45 = 71.1%
N= 51 & Above
3
6
5
8
2
4
28 7.0%
28-3 =25
8.1% (5+8+2+4)/25 = 76.0%
Total
83
20.9%
114
36.3%
114
36.3%
54
17.2%
19
6.1%
13
4.1%
397
100%
314
100%
61
There were 397 respondents comprising of 34.5% under the age of 30 years;
45.0% in the range of 31-40 years; 13.4% in age group 41-50 years and 7.0% above
51 years old. From Table 4.16, it is noted that 20.9% (N=83) of the medical
practitioners do not own any credit cards. For further analysis, these zero card uses are
minus off according to each category and the actual total of credit card holders are
highlighted in each row. The actual total credit card users in this analysis are 314
medical practitioners.
From Figure 4.11 and Table 4.16 it is analysed that out of the 83 (20.9%)
doctors who do not own any credit cards, the majority 14.5% (46) are doctors below
the age of 30 years old. The use of credit card decreases as the age of the medical
practitioners increase. Out of 25 credit cards holders above age 51, 76% (19/25) of
them use more than 1 card. Similarly, 71.1% in the age group 41-50; 62.7% in age
group 31-40 and 58.4% from age below 30 years old use more than 1 credit card.
Since the usage of more than 1 card in deemed as negative practice, almost all the age
group practices negative credit card management. As the age increases, more and
more physicians are practicing negative credit card management ranking the older
physicians (above age 51) number one negative credit card managers.
Number of Credit Cards
543210
Num
ber of M
edic
al Pra
ctitioners
70
60
50
40
30
20
10
0
Ethinicity
Malay
Chinese
Indian
Others
Figure 4.12 Ethnicity vs number of credit cards
62
Figure 4.12 and Table 4.17 shows the usage of credit cards by doctors in different
ethnic groups in Malaysia. There were 54.4% (N=216) Malays, 16.9% (N=67)
Chinese, 78.4% (N=102) Indians and 3% (N=12) other ethnic groups took part in the
survey. The shaded percentages are the total number of participants less those who do
not owe any cards within the ethnic groups.
Table 4.17 Ethnicity vs number of credit cards
Number of Credit Cards Owned
Total
Ethnic
Group 0 1 2 3 4 5
Total
minus 0
card users
Malay 47 64 60 28 9 8
216
54.4%
216-47 = 169
53.8% (60+28+9+8)/169 = 62.1%
Chinese 7 14 22 14 6 4
67
16.9%
67-7 = 60
19.1% (22+14+6+4)/60= 76.7%
Indian 22 33 31 12 3 1
102
25.7%
102-22 = 80
25.5% (31+12+3+1)/80= 58.6%
Others 7 3 1 0 1 0 7
3% 12 -7 = 5
1.6% (1+0+1+0)/5= 40.0%
Total
83
20.9%
114
36.3%
114
36.3%
54
17.2%
19
6.1%
13
4.1%
397
100%
314
100%
From Figure 4.12 and Table 4.17, it is seen that among the 3 races, the Malay
doctors (54.4%) rank number one users of credit cards in the country. The Indians
have secured the second placing (25.5%) while the Chinese rank number three
(16.9%). The results also show that out of 216 Malay medical practitioners, 47 of
them (21.8%) do not use any credit cards. Similarly, of the 102 Indian medical
practitioners 22 of them (21.5%) do not use any credit cards as well.
Although 10.4% of the Chinese ethnic group do not use the card and being
the least credit card users in the country, they (Chinese doctors) somehow are the
63
champions (76.7%) in owning more than 1 card (negative financial credit
management). This is followed by the Malays (62.1%) and then by Indians (58.6%).
Number of Credit Cards
543210
Num
ber
of M
edic
al P
ractitioners
80
60
40
20
0
Rank
Medical of ficer
Specialist
Figure 4.13 Rank vs number of credit cards
Table 4.18 Rank vs number of credit cards
Number of Credit Cards
Rank
0 1 2 3 4 5 Total
Total minus 0
card users
N= Medical Officer
72
73
67
32
7
3
254 64%
254-72=182 57.9%
(67+32+7+3)/254 = 42.9%
N= Specialist
11
41
47
22
12
10
143 36.0%
143-11=132 42.0%
(47+22+12+10)/143 = 63.6%
Total 83 20.9%
114 28.7%
114 28.7%
54 13.6%
19 4.8%
13 3.3%
397 100%
314 100%
_____________________________________________________________________
64
The results from Figure 4.13 and Table 4.18 show that overall more medical officers
(64%) compared specialist (42.0%) use credit cards in Malaysia. But, it is reverse in
the usage of more than 1 card i.e. the specialist (63.6%) out beat the medical officers
(42.9%) which makes the medical officers better credit managers than the specialist.
Referring to Table 4.13 (credit management scores) negative financial
management practice was also noted in debt and credit card management of 19.3%
medical practitioners. They admit that they usually do not pay the total balance on
their credit card but instead, just make a minimum or partial payment (Q2). The
balance 80.7% respondents (reverse mean score 1.84 +/- 1.22 SD) pay the total credit
balance in their credit card on time. These respondents practice positive credit
management.
Only a minority (5.8%) of the medical practitioners (Q3) said that they get
themselves into more debt each year to pay off the previous year’s credit card debts.
Neither it is typical of doctors to obtain cash advances to pay their credit balances
(Q4), nor their use of credit cards/ credit limit increases with each year (Q5). 52.1%
(Q6) of these practitioners rarely pay finance charges (mean score 3.32 +/- 1.42 SD),
while 87% (Q7) pay their bills as due (mean score 4.29 +/- 1.03 SD). It is typical of
83.2% doctors to make payments on large debts as on scheduled (Q8) in which the
mean score achieved was 4.21 +/- 0.92 SD, thus making it a positive practice.
Positive practice was also noted in questions number 9 and 10. These are
questions on credit card statements. Medical practitioners, 74 % (Q10) do not receive
overdue notice because of late or missed payment but somehow only 58.7% of them
(mean 3.51 +/- 1.25 SD) compare their credit card receipts with their monthly
statements.
To analyse the scoring, negatively worded questions were recoded. The score
range was 1-5 for each question. Since there were 10 questions, the minimum score
was 10 and maximum score was 50.
65
Figure 4.14 and Table 4.19 show the distribution of scores of credit
management. The distribution is negatively skewed (skewness = -.352, SE skew =
.138), with the scores clustering around higher values. As was in financial knowledge
score, it was expected that the scores would be distributed in this manner as this index
was design to measure general financial management.
Mean Score
50.047.545.042.540.037.535.032.530.027.525.022.520.0
Nu
mb
er
of
me
dic
al P
ractitio
ne
rs
60
50
40
30
20
10
0
Figure 4.14 Credit management practice mean score
Table 4.19 Credit management practice mean score
Mean
SD
N
Variance
Skewness
SE
Skew
Range
38.4
5.46
310
29.9
-0.352
0.138
10-50
There were 10 Likert scale questions to evaluate credit management practice.
The minimum and maximum scores were 10 to 50. To calculate the low, medium and
high values, the formula (Max-Min)/3 was used. Low practice scores (10-23),
66
Medium practice scores (24-37) and High practice scores (38-50). Table 4.20 shows
the score categories and the number of respondents achieved the scores.
Table 4.20 Credit management practice score categories
Category
Low
Medium
High Scores
10-23
24-37
38-50
Respondents
3
129
178
Figure 4.15 Credit management practice level
In conclusion, 57.4% of the medical practitioners in Malaysia practice high
financial credit management (Fig. 4.15)
(iii) Retirement and estate management practice.
There were 5 questions focusing on retirement and estate planning. Responses from
the medical practitioners indicated the degree to which each item was typical of them.
This is then termed as positive or negative retirement and estate management practice.
The 5 point Likert Scale (1= strongly not typical of me; 2= not typical of me; 3= ‘I
don’t have/not sure 4=typical of me; 5=Very typical of me). In item analysis, a mean
score of 3 and below is considered negative practice since don’t have/not sure (3)
Low; 3 1.0%
Medium; 129
41.6% High; 178 57.4%
67
means they do not practice these managements. Mean scores above 3 are rated as
favourable or positive practice.
Table 4.21 Retirement and estate management practice scores
No
Item on Retirement/Estate management
N
Mean +/-SD Score Range 1=Not typical 5=very typical
% Positive Practice
1
I plan out how I want my belongings to be divided up in case something ever happens to me (e.g., use a will).
395 2.91 +/- 1.12
30.0%
2
I review my will periodically.
397 1.62 +/- 1.26 12.2%
3
I contribute annually to a retirement savings plan (e.g., EPF, Pension).
396 4.29 +/- 0.87
88.1%
4
I use the services of a certified financial planner to plan my retirement
393 2.34 +/- 1.14 13.2%
5
I take advantage of compounding interest to start saving for my retirement.
393 3.19 +/- 1.09 40.0%
Retirement and estate management is the most neglected area of personal
finance in this survey. Except for one positive practice on annual contribution to a
retirement savings plan, all other questions had negative financial management
practice.
Question number 3, checks on the retirement savings plan and 88.1%
contributes to these forceful schemes. The medical practitioners in the government
sector are required by statutory law to contribute to the Employment Provident Fund
(EPF) for the first 10 years of service. There after they have a choice to either
continue the contribution to the same scheme or discontinue the contribution to opt for
the government pension scheme. The private practitioners may or may not contribute
to the EPF scheme as it is not compulsory for self employed professionals to save in
the scheme. As such, this question cannot be considered as a positive practice as it is
68
not a personal initiative practice. Therefore, this question is excluded in the analysis of
overall scoring as it might give false positive.
Only 30% of the doctors’ population plan out how they want their belongings to
be divided up in case something ever happens to them(Q1), example writing a will
while the remaining 70% doctors have not planned their future. While only 12.2% of
these practitioners review their written will periodically, 87.8% of them admit that
they have not written one yet.
The mean score achieved for (Q5) ‘I take advantage of compounding interest to
start saving for my retirement’ is 3.19 +/- 1.09 SD, showing that out of 393
respondents attempted this question, 159 of them (40.1%) answered ‘not sure’
suggesting that they did not understand the terminology of compounding interest.
Only 40% of medical practitioners take advantage of compounding interest to save for
my retirement. 86.8% medical practitioners do not use the services of certified
financial planners to plan for their retirement. Only 13.2% seek advisors help.
Prior to analyses of retirement and estate planning scoring, negatively worded
questions were recoded. Likert scale 3 (don’t have/not sure) was recoded as 2 since
these practice are considered unfavorable practice. There were 10 questions, the
minimum score was 10 and maximum score was 50.
Table 4.22 Retirement and estate management practice mean score
Mean
SD
N
Variance
Skewness
SE Skew
Range
10.96
3.10
390
9.6
-.178
.124
4-20
Table 4.22 shows the mean score for retirement and estate planning is 10.96
+/-3.10 SD. Figure 4.16 on the other hand, shows the distribution of scores of
retirement and estate planning in this study.
69
Mean Score
20.018.016.014.012.010.08.06.04.0
Nu
mb
er
of
Me
dic
al P
ractitio
ne
rs
140
120
100
80
60
40
20
0
Figure 4.16 Retirement and estate management practice mean score
Similar to the other analysis in this study, the distribution is negatively skewed
(skewness = -.178, SE skew = .124). As it was expected that the scores would be
distributed in this manner, the measure is taken as normal distribution for this study.
There were 4 Likert scale questions to evaluate retirement and estate planning
practice. The minimum and maximum scores were 4 to20. To calculate the low,
medium and high values, the formula (Max-Min)/3 was used and the scores calculated
are Low (4-9 scores), Medium (10-15 scores) and High (16-20 scores). Table 4.23
shows the score categories and the number of respondents achieved the scores.
Table 4.23 Retirement and estate management practice score categories
Category
Low
Medium
High
Scores
4-9
10-15
16-20
Respondents
221
154
15
70
Figure 4.17 Retirement and estate management level
Figure 4.17, shows that only 3.8 % of medical practitioners in Malaysia
practice retirement and estate planning at higher level. Above half the doctors’
population (56.7%) scored low scores indicating that they do not practice or rather
plan for retirement and estate management.
(iv) Risk management practice
Table 4.24 shows the responses of doctors towards risk management practice by
indicating the degree to which each item was typical of them. This section contained
five 5 point Likert Scale (1= strongly not typical of me; 2= not typical of me; 3= ‘I
don’t have / not sure; 4=typical of me; 5=Very typical of me) questions. A mean score
of 3 and below is considered negative practice since don’t have/not sure (3) means
they do not practice these managements. Mean scores above 3 are rated as favourable
or positive practice. Reverse scores are measured for negatively worded questions.
From table 4.24, it is obvious that 78% of the respondents regularly set aside
money for possible unexpected expenses (Q1) and 59% of these doctors adequately
insured their personal properties but they do not know how to create wealth through
insurance. 76.1% of medical practitioners do not take advantage of life insurance to
create wealth.
Low; 221
56.7%
Medium; 154
39.5%
High; 15
3.8%
71
Table 4.24 Risk management practice score
No
Item on
Risk Management
N
Mean +/-SD
1=Not typical 5=very typical
%
Positive Practice
1
I regularly set money aside for possible unexpected expenses.
396
3.91 +/- 1.00
78.0%
2
I adequately insured my personal property (eg. home, furnishings, personal possessions)
398 3.52 +/- 0.99 59.0%
3
Each year I review the adequacy of the insurance coverage I have.
398 2.92 +/- 1.05
31.9%
4*
I have trouble meeting monthly health care expenses, including premium for health insurance.
397 1.97 +/- 1.01
90.9%
5
I take advantage of life insurance to create wealth.
398
2.67 +/- 1.17
23.9%
* Negatively worded question.
Though 90.9% respondents do not have trouble meeting monthly health care
expenses, including premium for health insurance (Q4), 9.1% admit that they have
trouble paying insurance premium. 68.1% of the doctors in Malaysia do not do an
annual review for the adequacy of the insurance coverage they have (Q3).
Figure 4.18 shows the distribution curve for risk management mean score. The
skewness of -.200 indicate that the distribution is negatively skewed with SE
skewness 0.123. Since the inspection of the curve revels that scores are clustered
towards higher values, it approximated a normal distribution for this study.
72
Mean Score
25.022.520.017.515.012.510.07.5
Num
ber
of M
edic
al P
ractitioners
140
120
100
80
60
40
20
0
Figure 4.18 Risk management practice mean score
Table 4.25 shows the risk management mean score was 17.05 +/- 2.90 SD and
395 medical practitioners attempted to answer the questions.
Table 4.25 Risk management practice mean score
Mean
SD
N
Variance
Skewness
SE Skew
Range
17.05
2.90
395
8.42
-.200
.123
5-25
There were 5 Likert scale questions to evaluate risk management practice of
the medical practitioners. The minimum and maximum scores were 5 to 25. To
calculate the low, medium and high values, the formula (Max-Min)/3 was used and
the scores calculated are Low (5-11 scores), Medium (12-18 scores) and High (19-25
scores). Table 4.26 shows the risk management score categories.
73
Table 4.26 Risk management practice score categories
Category Low Medium High
Scores 5-11 12-18 19-25
Respondents 14 259 122
Figure 4.19 Risk management practice level
Figure 4.15, shows the risk management practice level of medical practitioners
in Malaysia. Only 30.9% of the practitioners practice high level of risk management.
(v) General financial management practice
Table 4.27 explains the mean and percentage scores of the general financial
management practice of medical practitioners in Malaysia.
Medium; 259
65.6%
Low; 14 3.5%
High; 122
30.9%
74
Table 4.27 General financial management practice scores
No Item on General Management
N
Mean +/-SD 1=Not typical 5=very typical
% Positive Practice
1 I create financial goals.
396
3.57 +/- 1.01
59.1%
2
I make plans on how to reach my financial goals.
396 3.53 +/- 1.01
57.3%
3
I set specific financial goals for the future (e.g., buy a new car in two years).
396
3.62 +/- 1.02
65.7%
4 I know roughly how much money I need during retirement
396 3.15 +/- 1.03 36.9%
5
I regularly discuss financial goals with my spouse.
314 3.58 +/- 1.09
63.1%
59.1% (Q1) of the respondents create financial goals and 57.3% (Q2) makes
plan to reach these goals. Confirming the above responses, 65.7% (Q3) acknowledged
that it is typical of them to set specific financial goals for the future (e.g., buy a new
car in two years). Contradicting these statements, only 36.9% of doctors responded
that they know roughly how much money they need during retirement (Q4). Positive
practice was seen in doctors (63.1%) who regularly discuss financial goals with their
spouses (Q5).
Table 4.28 General financial management practice mean score
Mean
SD
N
Variance
Skewness
SE Skew
Range
17.47
4.02
314
16.16
-0.519
0.138
5-25
Table 4.28 shows the overall general management means score of medical
practitioners in Malaysia is 17.47 +/- 4.02 SD. Figure 4.20 show the measure and
distribution curve for general financial management score. The distribution is
negatively skewed with skewness of -0.519 and SE skewness 0.138. The inspection
75
of the distribution curve revels that scores are grouped towards higher values
approximated a normal distribution.
Mean Score
26.024.022.020.018.016.014.012.010.08.06.0
Nu
mb
er
of
Me
dic
al P
ractitio
ne
rs
80
60
40
20
0
Figure 4.20 General financial management practice mean score
There were 5 Likert scale questions to evaluate risk management practice of
the medical practitioners. The minimum and maximum scores were 5 to 25. To
calculate the low, medium and high values, the formula (Max-Min)/3 was used and
the scores calculated are Low (5-11 scores), Medium (12-18 scores) and High (19-25
scores). Table 4.29 shows the score categories and the number of respondents
achieved each score.
Table 4.29 General financial management practice Score categories
Category
Low
Medium
High
Scores
5-11
12-18
19-25
Respondents
24
156
133
76
Figure 4.21 General financial management practice level
In Figure 4.21, 42.5% of medical Practitioners in Malaysia practice high level of
financial General Management. Only 24 out of 313 doctors (7.7%) practiced low
general financial management and about 50% practice moderate general financial
management.
(vi) Overall financial management practice.
Figure 4.22 shows the overview and the overall financial management practice of the
doctors in Malaysia.
0
50
100
150
200
250
300
350
Nu
mb
er
of
Me
dic
al P
ractitio
ne
rs
Low 7 3 221 14 24 54
Medium 193 129 154 259 156 178
High 166 178 15 122 133 123
Cash Credit Retire Risk General Overall
Figure 4.22 Overview financial management practice
Medium; 156 49.8%
High; 133 42.5%
Low; 24 7.7%
77
Figure 4.23 Overall financial management practice level
From figure 4.22 and figure 4.23, it is noted that out of 355 medical practitioners 123
(34.6%) of them practice high level positive financial management. Majority of them
are in medium management group.
4.3.5 Financial Satisfaction
Financial Satisfaction was measured in 5 scale Likert scale (strongly dissatisfied,
dissatisfied, moderately satisfied, satisfied and very satisfied). In analyzing the
scores, moderately dissatisfied was considered as neither dissatisfied nor satisfied as it
is right in the middle and it indicates neutrality or mixed satisfaction. Therefore moderately
satisfied scores, dissatisfied scores as well as strongly dissatisfied scores were grouped
together to as dissatisfied. Strongly satisfied and satisfied scored were grouped as
satisfied. But for mean score analysis, these were done individually with mean score
range 1 to 5 (Table 4.30)
Table 4.30 Financial management satisfaction scores
No
Item on Financial Management Satisfaction
N
Mean +/-SD
1 = Not typical 5 = very typical
%
Satisfied
1 I am ------ with the amount currently in my savings.
396
2.83 +/- 0.95
21.5
2
I am -------- with my current assets.
397
2.83 +/- 0.94
23.2
Medium; 178 50.1%
High; 123 34.6%
15.2%
Low; 54
78
3 I am -------- with my current Liabilities.
395 3.04 +/- 0.97 29.8
4 I am ------- with my current financial single service providers such as insurance and unit trust agents?
391 3.05 +/- 0.84 29.1
5
I am -------- with my current financial situation
397 3.07 +/- 0.90
30.5
6
I am ----- with my monthly loan repayments including all credit cards.
396 3.51 +/- 0.95
51.2
7
I am ------ with my family's current financial situation
396 3.43 +/- 1.72 41.7
8
I am -------- about the usage of my credit cards.
331 3.64 +/- 0.99
61.3
9
I am -------- with my money management skills.
397 3.01 +/- 0.95 29.8
10 I am -------- to meet sudden large emergencies.
397 2.95 +/- 1.04
30.0
Majority of the medical practitioners in Malaysia are dissatisfied with their current
financial management situation. More than three quarter (78.5%) of the practitioners
admit that they are dissatisfied with the amount currently in their savings. Only 21.5%
are satisfied with their current savings. As for liability, 23.2% of the doctors are
satisfied with their current liabilities whereas 76.8% and 70.2% of them are unhappy
with the amount of assets and liabilities they have. Even though 30% (N=277) of the
respondents are prepared to meet sudden large emergencies (Q10), they are somehow
dissatisfied with the services given by their service providers. Out of 391 respondents,
277 of them (70.9%) are dissatisfied with their current financial single service
providers such as insurance and unit trust agents. Only 29.1% shows positive
satisfaction.
While 58.3% (Q6) and 61.3% (Q8) of medical doctors are satisfied with their
monthly loan repayments and the usage of their credit card, less than 30% are
79
satisfied(Q9) with their money management skills. 30.5% doctors are satisfied with
their current financial situation and another 41.7% with their family’s current financial
situation.
Figure 4.24 Item analyses of financial management satisfaction score
Figure 4.24 shows the graphical illustration of the item scoring from Table
4.30. There are 10 triangles in the radar representing each of the 10 questions. The
scores areas are shaded. Darker areas denote level of dissatisfaction and lighter area
shows level of satisfaction. 8 out of the 10 questions show higher levels of
dissatisfaction (about 60-80%). Only 2 questions (Q6 and Q8) show satisfaction at 50
-60% mark.
Similar to other scorings (knowledge, attitude and practice), this financial
management satisfaction scores distribution curve is noted to be positively skewed
(skewness = 0.643, SE skew = .135 with scores tending towards lower values (Fig.
4.25). Exploratory data analysis based on Kolmogorov-Smimov Z test (Test of
Normality) showed that the distribution is normal.
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
2
3
4
57
8
9
10
Dissatisf ied
satisf ied
80
Mean Score
47.5
45.0
42.5
40.0
37.5
35.0
32.5
30.0
27.5
25.0
22.5
20.0
17.5
15.0
12.5
10.0
Nu
mb
er
of
Me
dic
al
Pra
ctt
itio
ne
rs
80
60
40
20
0
Figure 4.25 Financial management satisfaction score
There were 10 Likert Scale (1= strongly dissatisfied; 2= dissatisfied; 3=
moderately satisfied; 4=Satisfied; 5=Very Satisfied) questions. A mean score of 3 and
below is considered ‘dissatisfied’ since moderately satisfied is equivalent to
dissatisfied. Mean scores of above 3 are rated as ‘satisfied’. Therefore scale rates
were recoded (scale of 3 recoded to 2 i.e. moderately satisfied recoded to dissatisfied)
before statistical analysis was run.
Table 4.31 Financial management satisfactions mean score
Mean
SD
N Variance Skewness
SE Skew
27.49
7.56
324
57.11
0.643
0.135
81
From Table 4.31, the mean score for financial satisfaction is 27.49 +/- 7.56 SD
and 325 participants answered the questions. The measure for personal financial
management satisfaction is either dissatisfied (mean range 10-30) or satisfied (mean
score 31-50). Since the mean score for satisfaction obtained was (27. 4 +/-7.56 SD), it
is concluded that the medical practitioners in Malaysia are dissatisfied with their
personal financial management.
Table 4.32 Financial management satisfaction score categories
Category
Dissatisfied
Satisfied
Scores
10-30
31-50
Respondents
233
91
Figure 4.26 Financial management satisfaction level
Financial Management Satisfaction score was further confirmed using
percentage scoring. With reference to Figure 4.26, out of 324 doctors who completed
this section of the study, 233 (71.9%) acknowledge that they are dissatisfied in their
financial management competency or rather their current financial status. This is
equivalent to slightly less than three quarter of the population of medical practitioners
in the country. Therefore only 28.1% are satisfied with their current financial status.
Satisfied 28% N=91
Dissatisfied 71.9% N=233
82
4.3.6 Financial Knowledge, Attitude, Practice and Satisfaction
The overall financial management knowledge, attitude, practice and satisfaction
scores of the medical practitioners in Malaysia are shown in Figure 4.27
33.6% High
76.4% Positive
34.6% High
28% Satisfied
0 25 50 75 100
Knowledge
Attitude
Practice
Satisfaction
Percentage of Medical Practitioners
Figure 4.27 Summary of knowledge, attitude, practice and satisfaction score levels.
In summary, this study concludes that 76.4% of Medical Practitioners in
Malaysian have positive personal financial management attitude but only 33.6 % of
them have high knowledge and 34.6% of the doctor’s population practice favorable
money management. Generally (28%) doctors in Malaysia are dissatisfied with their
financial management standings.
4.4 BIVARIATE ANALYSIS
This section measures the degree of relationship of the independent variables
(financial knowledge, attitude and practice) with the dependent variable (financial
satisfaction) of the medical practitioners in Malaysia in an attempt to test the
hypotheses in this study. Independent t-test, One Way Anova, Pearson r correlation
was used to measure the strength and significant difference in the relationship.
83
4.4.1 Relationship between Financial Management Knowledge Scores with
Rank, Sector and Location of Practice.
The relationship between the Scores of Financial Management Knowledge with (a)
rank of medical officers and specialist; (b) sector- among the medical practitioners
working in the public and private medical services; and (c) location - among the
medical practitioners working in urban and rural parts of Malaysia.
This hypothesis was tested using the response of medical practitioners to a 16
item true-false-don’t know questionnaire. It was analysed statistically using
Independent t-test.
The t-test analysis revealed that there is no significant difference in the level of
financial knowledge between the medical practitioners working in the private or
public medical services as well as those practicing in the rural or urban parts of
Malaysia.
Table 4.33 Relationship between financial management knowledge mean scores with rank, sector and location
Knowledge on Financial
Management
N Mean SD t df p-value
Rank Medical officer 256 10.25 2.16
Specialist
143
10.82
2.06
-2.591 397 0.010*
Sector Public 341 10.45 2.08 Private
58
10.48
2.44
-0.102 397 0.919
Location Rural 217 10.40 2.24
Urban
182
10.51
2.01
-0.515
397
0.607
* P <0.05 Significant.
However, there is a significant difference (p=0.010, p<0.05) in the level of
financial knowledge between the medical officers and specialist. From Table 4.33, it
is noted that the specialist scored a mean score of 10.82 +/- 2.06 SD, while the
medical officers scored slightly lower (10.25 +/- 2.16). It can be conclude that the
specialists are more financially knowledgeable than the medical officers.
84
Further analysis was carried out on relationship of six areas of financial
management knowledge (cash, credit, risk, retirement/estate, investment and general
management) with rank of medical practitioners. Table 4.34 show the independent t-
test results of the analysis.
There is a significant difference in the personal financial management
knowledge among the medical officers and specialist in the areas of credit
management (p=0.004, p<0.005) and investment planning (p=0.025, p<0.005).
In credit management, the mean score of specialist is 1.15 +/- 0.66SD
compared to medical officers’ mean score (0.94 +/- 0.69SD). This indicates that the
specialists are better credit managers than the medical officers. Similar to this, the
investment planning mean score of the specialist is also higher than the medical
officers’ (1.61 compared to 1.47), showing that the specialist are more investment
savvy than the medical officers.
Table 4.34 Relationship between financial management knowledge sub scale mean scores with rank
Knowledge on
Rank N Mean SD t df p-
value
Cash
Medical Officer 257 2.27 0.78
Specialist 143 2.41 0.71 -1.719 398 0.086
Credit Medical Officer 257 0.94 0.69
Specialist 143 1.15 0.66 -2.874 398 0.004*
Investment Medical Officer 257 1.47 0.64
Specialist 143 1.61 0.56 -2.19 352 0.029*
Medical Officer 257 1.61 0.73 Retirement/Estate Specialist 143 1.68 0.79 0.898 398 0.370
Risk Medical Officer 257 2.02 0.91 Specialist 143 2.01 0.98 0.096 397 0.923
General Medical Officer 257 1.90 0.33
Specialist 143 1.94 0.23 -1.315 398 0.189
* P <0.05 Significant.
85
It can be concluded that there is a lack of knowledge on personal financial
management among the medical officers in the areas of credit management and
investment planning.
However, there are no significant differences in areas of cash, risk, retirement
and general financial management knowledge.
Hypothesis 1, hypothesised that there will be a significant difference in the
level of personal financial management knowledge among the medical practitioners in
the public and private medical services in Malaysia is as follows: Therefore, the
results of this study supports hypothesis 1 as follows:
a) There is a significant difference in the level of financial knowledge of the
medical officers and the specialist (rank) and that the specialists are more
financially knowledgeable than the medical officers especially in the areas of
investment planning and credit management.
b) There is no significant difference in the level of knowledge whether these
practitioners are in the public or private medical services and whether they are
located in the urban or rural parts of Malaysia.
In summary, this study supports hypothesis 1(a) only.
4.4.2 Relationship between Financial Management Attitude Score with Rank,
Sector and Location of Practice.
The aim in hypothesis 2, was to analyse the significant difference in the level of
personal financial management attitude between (a), the rank (the medical officers and
specialist), between (b), the sector (the medical practitioners serving in the public and
private medical services) and (c), the location (among the medical practitioners
practicing in urban & rural parts) of Malaysia.
86
Table 4.35 Relationship between financial management attitude scores with rank, sector and location of practice
Attitude on Financial
Management
N
Mean
SD
t df p-value
Rank Medical officer 250 70.80 6.62
Specialist
140 72.14 6.29 -1.994 388 0.053
Sector Public 332 71.15 6.55 Private
58 72.08 6.39 -1.010 388 0.313
Location Rural 212 71.16 6.38
Urban
178 71.43 6.71 -0.403 388 0.687
* P <0.05 Significant.
The t test results of hypotheses 2 showed that there is no significant difference
in the level of financial management attitude among the medical practitioners whether
they are (a) medical officers or specialist, (b) working in the private or in public
medical services or are practicing (c) in the rural or urban parts of Malaysia.
Therefore hypothesis 2(a), 2(b) and 2(c) are not supported.
4.4.3 Relationship between Financial Management Practice Scores with Rank,
Sector and Location of Practice.
In hypothesis 3, the aim was to analyse if there is a significant difference in the level
of personal financial management practice among (a) the medical officers and
specialist (b) among the medical practitioners practicing in the public and private
medical services and (c) among the medical practitioners working in the urban & rural
parts of Malaysia.
Independent t-test analysis was done based on the responses gathered from the
financial management practice questionnaire.
87
Table 4.36 Relationship between financial management practice scores with rank, sector and location of practice.
Practice on Financial
Management
N
Mean
SD
t
df
p-value
Rank Medical officer 118 118.05 15.34 Specialist
100 120.50 14.77
-1.194 216 0.234
Sector Public 176 118.58 14.54 Private
42 121.64 17.23 -1.180 216 0.239
Location Rural 124 118.81 15.20
Urban
94 119.65 15.02 -0.403 216 0.687
* P <0.05 Significant.
The t test results showed that there is no significant difference in the
financial practice of the medical practitioners whether they are specialist or medical
officers. The p–values calculated were found to be 0.234, 0.239 and 0.687 between
medical officers and specialist, between public and private and between rural and
urban respectively. These values are higher than the value at the level of significant
p<0.05. Thus, they do not indicate any significant directions.
This shows that there is no difference in the level of financial management
practice between the medical practitioners no matter what rank they are in, which
sector they are practicing in or which part of Malaysia they are practicing.
Hence, hypotheses 3(a), 3(b) and (3c) are not rejected in this study.
Financial management practice score was further analysed in 6 different areas namely,
cash management, credit management, retirement/estate planning, risk management
and general management practices. The aim of this was to identify the areas of
strength and weakness in the sub division of financial management practice.
88
Table 4.37 presents a comparison analysis on the five sub–scales in the financial
management practice which measures the medical practitioners’ competency in these
areas.
Table 4.37 Relationship between financial management practice sub-scores and location of practice
Financial Management Practice
Location
N
Mean
SD t
df
p-value
Cash Management Rural 203 36.00 6.30 Urban 166 36.98 6.02
-1.518
367
0.130
Credit Management
Rural 167 38.56 4.98
Urban 143 38.24 5.99
0.503
276
0.616
Rural 212 15.10 3.40
Retirement /Estate Planning
Urban 178 15.41 3.17
-0.899
388
0.369
Risk Management
Rural 213 16.90 2.82 Urban 182 17.23 2.99
-1.128
393
0.260
General Management
Rural 178 17.42 4.01
Urban 136 17.54
4.04
-0.255
312
0.799
* P <0.05 Significant.
The t – test analysis shows that there is no significant difference in the level of
practice. The p-values of the sub-scales were 0.130, 0.616, 0.369, 0.260 and 0.799
respectively. These values are higher than the level of significant; that is p<0.05.
Therefore it is concluded that the financial management competencies of
medical practitioners practicing in the urban and rural parts of Malaysia is the same.
Table 4.38 shows the T –test analysis on financial management practice on
five sub areas of finance between the medical practitioners practicing in the public and
private medical services in Malaysia. 4 out of the 5 areas of finance show no
significant difference in the financial management practice of medical practitioners.
89
Table 4.38 Relationship between Financial Management Practice Sub-Scores and sector
Financial Management Practice
Sector
N
Mean
SD
t df p-value
Cash Management Public 319 36.32 6.13 Private 50 37.16 6.53
-0.843 63.31 0.403
Credit Management Public 258 38.19 5.46
Private 52 39.50 5.39 -1.570 308 0.117
Public 332 15.22 3.33 Retirement/ Estate
Planning Private 58 15.37 3.11 -0.333 388 0.740
Risk Management Public 337 16.92 2.79
Private 58 17.84 3.36 -2.246 393 0.025*
General Public 261 17.48 3.89
Management Private
53 17.45 4.63 0.049 312 0.961
* P <0.05 Significant.
However, risk management showed a significant difference of p = 0.025,
<0.05. Therefore hypothesis 3(b) is supported only in the area of risk management.
The private medical professionals’ risk management mean score is 17.84 +/- 3.36 SD
compared to the doctors serving the public sectors (mean 16.92 +/- 2.79SD) indicating
that doctors in the private sector practice more positive risk management than doctors
in the public hospitals.
Hypothesis 3(a) aimed to find out if the level of financial practice between
medical officers and medical specialist has any significance. The t- test analysis from
Table 4.39 reveals that there is no difference in the financial management skills in
areas of cash (p=0.610), retirement/estate (p=0.148), risk (p=0.548) and general
management, p= 0.411 between the medical officers and specialist.
90
Table 4.39 Relationship between financial management practice sub-scores and rank.
Financial Management Practice
Rank
N Mean
SD
t df p-value
Cash Management
Medical Officer 240
36.32
6.31 Specialist 129 36.66 5.97
-0.511
367
0.610
Credit management
Medical Officer 180 37.52 5.32
Specialist 130 39.65 5.44 -3.446 308 0.001*
Retirement /Estate Medical Officer 249 15.06 3.27 Planning Specialist 141 15.56 3.33
-1.448 388 0.148
Risk Management
Medical Officer 252 16.99 2.82 Specialist 143 17.17 3.03
-0.601 393 0.548
General Management
Medical Officer 189 17.62 4.15
Specialist
125 17.24 3.81
0.823 312 0.411
* P <0.05 Significant.
However, there is a significant difference (p=0.001, <0.05) in the practice of
credit management between the ranks. The specialist scored a mean of 39.65 +/- 5.44
SD compared to medical officers (mean score 37.52 +/- 5.32 SD) indicating that the
specialist practice more positive credit management than the medical officers.
Therefore only credit management in hypothesis 3 (a) is supported.
4.4.4 Relationship between Financial Management Knowledge, Attitude and
Practice Score with Demographic Characteristics
The aim of this hypothesis (4) is to analyse the relationship between financial
management knowledge, attitude and practice score of the medical practitioners in
Malaysia with their demographic characteristics of (i) age, (ii) gender, (iii) marital
status, (iv) ethnicity, (v) number of years in service, (vi) undergraduate studies, (vii)
postgraduate studies and (viii) financial status during childhood.
91
(i) Relationship between financial management knowledge, attitude, practice
scores with age.
Table 4.40 presents the One Way Anova analysis between financial management
knowledge, attitude and practice score with age. The table shows that the p-values for
all the three variables are more than the significant value of p<0.05, indicating that age
of the medical professionals has no relationship with their financial knowledge,
attitude and practice.
Hence, hypothesis 4 (i) which states that there is an association between
knowledge, attitude, and practice with age is not supported.
Table 4.40 Relationship between financial management knowledge, attitude and practice score with age.
Financial
Management Age
N Mean
SD
df
between
group
df
within
group
F
p-value
under 30 138 10.11 2.00
31-40 181 10.58 2.16
41-50 52 10.61 2.35
Knowledge
51 above 28 11.03 2.09
3 395 2.162 0.092
under 30 134 70.85 6.16
31-40 177 71.42 6.95
41-50 51 71.68 6.45 Attitude
51 above
28
71.78
5.75
3 386 0.342 0.795
under 30 54 117.46 13.75
31-40 110 119.54 15.95
41-50 35 119.85 14.76 Practice
51 above
19
120.63
15.02
3 214 0.333 0.801
* P <0.05 Significant.
92
(ii) Relationship between financial management knowledge, attitude and
practice scores with gender.
Table 4.41 shows the independent t–test analysis of relationship between financial
management knowledge, attitude, practice scores with gender. It shows that there is a
significant relationship between financial management knowledge and gender
(p=0.040, <0.05). The mean value of male is more than that of female indicating that
the male medical practitioners are more financially knowledgeable than the female
practitioners.
Table 4.41 Relationship between financial management knowledge, attitude and practice scores with gender.
Financial Management
Gender N Mean SD t df
p-value
Male 160 10.72 2.21
Knowledge Female 239 10.27 2.07
2.060
397
0.040*
Male 160 71.18 6.89 Attitude
Female 230 71.36 6.27 -0.267 388 0.790
Male 102 122.62 14.51
Female 116 116.13 15.01 Practice
3.234 216 0.001*
*p <0.05 Significant
Another significant relationship is also noted between financial management
practice with gender (p=0.001, <0.05). The Malaysian male doctor’s mean value for
financial practice is 122.62 +/- 14.51SD, while the female scored a mean value of
116.13 +/- 15.01SD. This indicates that the male medical practitioners in Malaysia
are better financial managers than the female practitioners. Financial management
attitude has no relationship with gender as the p value of association is 0.790 which is
much higher than the significant value of <0.05.
93
Therefore hypothesis 4(ii) which stated that there is an association between
financial knowledge, attitude, practice and gender is supported only for knowledge
and practice but not for attitude.
(iii) Relationship between financial management knowledge, attitude and
practice scores with marital status.
In this study, there were only 6 participated medical practitioners who were either
divorcees or widowers. The number of such participant was too small to be added
into the analysis. The t-test analysis was aimed to see if marital status has an
influence on the financial management of medical practitioners.
Table 4.42 Relationship between financial management knowledge, attitude and practice scores with marital status
Financial
Management
Marital status
N Mean
SD t df p-value
Single 117 10.35 1.83
Knowledge
Married
276 10.50 2.26
-0.626 391 0.531
Single 114 71.03 7.27 Attitude
Married
270 71.27 6.19 -0.333 382 0.740
Single 25 114.60 17.54 Practice
Married
190 119.75 14.77
0.1.604
213 0.110
*significant p<0.05
The t-test results revealed that there is no significant relationship between
financial management knowledge (p=0.531,>0.05), attitude (p=0.740, >0.05 and
practice (p=0.110, >0.005) with marital status of the medical practitioners. Therefore
hypothesis 4 (iii) is not supported.
(iv) Relationship between financial management knowledge, attitude and
practice score with ethnicity.
There is a significant relationship between the attitude of medical practitioners
and ethnicity in Malaysia (p=0.017, <0.05). The Chinese doctors have more positive
94
financial management attitude than the Malay doctors followed by Indian doctors and
then the other race doctors. The mean value for Chinese doctors is 72.54 +/- 6.50 SD.
However, there are no relationship between the levels financial management
knowledge and practice of the medical practitioners whether they are Malays,
Chinese, Indians and of other races.
Table 4.43 Relationship between financial management knowledge,
attitude and practice scores with ethnicity.
Financial
Management
Ethnicity
N
Mean
SD
df
within
group
df
between
group
F
p-value
Malay
216
10.34
2.20
Chinese 67 10.64 1.83 Indian 103 10.70 2.12
Knowledge Others 13 9.30 2.35
3
395
2.095
0.100
Malay
212
70.34
6.30
Chinese 66 72.54 6.50 Indian 100 72.46 6.58
Attitude
Others 12 71.16 8.05
3
386
3.417
0.017*
Malay
125
117.94
14.69
Chinese 40 124.35 18.03 Indian 50 118.76 12.89
Practice Other 3 108.33 10.96
3
214
2.417
0.067
*Significant p<0.05
Therefore, hypothesis 4(iv) on the relationship of financial management and
ethnicity, financial knowledge and practice is not supported but financial attitude and
ethnicity is supported.
(v) Relationship between financial management knowledge, attitude and
practice score with years in service
Table 4.44, shows the relationship between financial management scores and
years s of service of the medical practitioners. The probability values for knowledge,
95
attitude and practice are p=0.098, p=0.606 and p=0.229. These values are more than
the significant value of p<0.05.
Table 4.44 Relationship between financial management knowledge, attitude and practice scores with years in service
Financial Management
Years in service
N
Mean
SD
df
within
group
df
between
group
F
p-
value
1-5 years
176
10.18
2.06
6-10 years 93 10.62 2.27 11-15 years 75 10.52 2.13
Knowledge >16 years 55 10.94 2.08
395 3 2.110 0.098
1-5 years 170 70.91 6.62 6-10 years 93 71.12 6.51 11-15 years 73 72.08 6.17
Attitude
>16 years 54 71.64 6.77
386 3 0.614 0.606
1-5 years 70 117.18 14.28
6-10 years 60 117.73 16.42
11-15 years 50 121.98 14.63
Practice
>16 years
38
121.42
14.71
214 3 1.451 0.229
*significant p<0.05 Therefore, there is no relationship between financial management knowledge, attitude
and practice with the number of years the medical practitioners are in service. Thus,
hypothesis 4 (v) is not rejected.
(vi) Relationship between financial management knowledge, attitude and
practice scores with undergraduate studies
Table 4.45 shows the relationship between financial management knowledge,
attitude and practice scores with undergraduate studies. Independent t- test was used
in this analysis. The aim of testing this hypothesis is to see the relationship between
the medical practitioners’ financial knowledge, attitude and practice with the financial
exposure they had during their undergraduate studies.
96
Table 4.45 Relationship between financial management knowledge, attitude and practice scores with undergraduate studies.
Financial Management
Financial exposure
undergraduate
N
Mean
SD t df p-value
Local 173 10.49 2.190 Knowledge
Overseas 92 10.56 2.098 -0.244 263 0.807
Local 172 70.35 6.51 Attitude Overseas 89 72.78 6.46
-2.86 259 0.005*
Local 110 118.19 14.94 Practice Overseas 58 122.03 15.31
-1.572 166 0.118
*Significant <0.05
There is a significant relationship between the financial attitude of medical
practitioners and financial exposure during their undergraduate studies (p=0.005,
<0.05). Those studied overseas during their undergraduate days showed more positive
financial management attitude (mean 72.78 +/- 6.46 SD). There is no relationship
between the financial knowledge and practice on financial management of the medical
practitioners whether they did their undergraduate studies locally or overseas.
Therefore, there is a significant relationship between the financial exposure
during undergraduate studied and financial management attitude and but no
relationship with financial knowledge and practice. Hypothesis 4(vi) is supported.
(vii) Relationship between financial management knowledge, attitude and
practice scores with postgraduate studies
Table 4.46 presents the result of the analyses on postgraduate studies in overseas. The
intention was to find out if postgraduate exposure has any implication on the financial
knowledge, attitude or practice of the medical practitioners. Independent t-test was
used to generate this report.
97
Table 4.46 Relationship between financial management knowledge, attitude and practice scores with postgraduate studies
Financial
Management
Financial exposure
post graduate N Mean SD t df p-value
Local 163 10.63 1.94
Knowledge Overseas
126 10.53 2.28
0.402 287 0.688
Local 158 71.48 6.22
Attitude Overseas
125 72.35 6.57 -1.132 281 0.259
Local 87 118.03 12.40
Practice Overseas
77 122.93 16.68 -2.112 139 0.036*
*Significant p<0.05
There is a significant relationship between the practice of medical practitioners
and their financial exposure during postgraduate studies (p=0.036, <0.05). Those
studied overseas during their postgraduate days show more positive financial
management practice than those did their studies locally. There is no relationship
between the financial management knowledge and attitude of medical practitioners
whether they did their postgraduate studies locally or overseas.
Hypothesis 4(vii) is supported for financial management practice but not for
financial knowledge and attitude.
(viii) Relationship between financial management knowledge, attitude and
practice scores with family financial status.
The aim in analyzing this hypothesis was to analyse if family’s financial background
during childhood has any influence in the way the medical practitioners manage their
personal finances.
98
Table 4.47 Relationship between financial management knowledge, attitude and practice score with family financial status.
Financial Management
Family financial
status
N Mean
SD
df
within
group
df
betwee
n group
F
p-
value
Wealthy 28 10.75 1.71 Average 315 10.40 2.19
Knowledge Poor
54
10.66
2.04
394
2
0.604
0.547
Wealthy
28
72.71
6.83
Average 308 71.09 6.51 Attitude Poor 52
71.84
6.45
385 2 0.991 0.372
Wealthy
15
122.13
16.60
Average 170 118.65 15.17
Practice Poor
32
120.84
14.28
214 2 0.578 0.562
*significant p<0.05
There is no relationship between the financial management knowledge,
attitude and practice with the medical practitioners’ childhood family financial status.
Therefore hypothesis 4 (viii) is not supported.
4.4.5 Financial Management Satisfaction
The earlier analyses emphasized that the medical practitioners in Malaysia are
dissatisfied with their current financial status. A t-test analysis was carried out to
determine which sector was much more dissatisfied / satisfied with their financial well
being. The effect of location, gender and rank of the respondents on their financial
management satisfaction was also carried out as in Table 4.48. It was hypothesized
that the medical practitioners in the private sector are more satisfied with their
financial well being than the doctors in the public hospital.
99
Table 4.48 Financial management satisfaction of medical practitioners
Financial Management
Variable
N Mean SD t df p-value
Location Rural 178
31.88
6.50 Urban
149 31.12 7.02
1.019
323
0.309
Sector Public 274 30.97 6.43 Private
51 34.54 7.59 -3.536 323 0.001*
Gender Male 148 32.88 7.07 Female
177 30.40 6.25 3.314 296 0.001*
Rank Medical officer 195 30.36 6.40
Satisfaction
Specialist
130 33.28 6.89 -3.900 323 0.001*
Significant <0.05
There is a significant difference in satisfaction in financial well being between
the public and private medical practitioners (p=0.001, <0.05); between male and
female practitioners (p=0.001, <0.05) and between medical officers and specialties
(p=0.001, <0.05). However, location did not have an effect on the financial
satisfaction of these practitioners.
From Table 4.48, it is noted that the private practitioners are more satisfied
(mean score 34.54 +/- 7.59 SD) with their financial wellbeing than their public peers
(mean score 30.97 +/- 6.43 SD). In terms of gender, the significant difference explains
that the male respondents are more satisfied (mean score 32.88 vs. 30.40) than the
female practitioners. Similarly, the higher mean score of the specialist (33.28 +/-
6.89SD), for satisfaction in financial wellbeing than the medical practitioners (mean
score 30.36 +/-6.40 SD) shows that the specialist are more satisfied in their financial
matters than their counterparts.
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Therefore hypothesis 5 which hypothesized that the medical practitioners in
the private sector are more satisfied with their financial wellbeing than the public
doctors is accepted.
4.5 CORRELATION BETWEEN FINANCIAL KNOWLEDGE, ATTITUDE,
PRACTICE AND SATISFACTION.
The correlation between the independent variables (knowledge, attitude and practice)
and dependent variable (satisfaction) was analysed to identify the strength of their
relationship. Pearson correlation statistical analysis was carried out and the results are
illustrated in Table 4.49.
Table 4.49 Correlation between knowledge, attitude, practice and satisfaction
Variables
Knowledge
Attitude
Practice
Satisfaction
Knowledge
……
0.231**
0.321**
- 0.089 Attitude
……
0.462**
0.170**
Practice
…..
0.417**
Satisfaction
…..
** Correlation is significant at the 0.01 level (2-tailed).
From the above table, it is noted that there is correlation between knowledge
and attitude, r = 0.231, p=0.01 and between knowledge and practice r =0.321, p=0.01
but no correlation between knowledge and satisfaction. A stronger correlation is seen
between attitude and practice, r=0.462 and between practice and satisfaction, r= 0.417
but weak correlation between attitude and satisfaction, r =0.170.
Figure 4.28 shows the Financial Management Model in which Financial Management
Knowledge as input correlates with Financial Management Attitude and Financial
Management Practice as throughputs. These in turn correlate with Financial
Satisfaction.
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* Correlation is significant at the 0.01 level (2-tailed).
Figure 4.28 Correlation between knowledge, attitude, practice and financial satisfaction.
The conceptual Family Resource Management Model from Deacon and
Firebaugh (1988) was used as a guide to measure the levels of financial knowledge,
financial attitude, financial practice and financial satisfaction of the medical
practitioners in this study.
Although the correlations between these variables are weak, the results support
the system approach of the financial management model.
INPUT
THROUGHPUT
(Transformation
Process) OUTPUT
MANAGERIAL SUBSYSTEM
FINANCIAL MANAGEMENT PRACTICE
(Planning & Implementing behaviours)
FINANCIAL MANAGEMENT ATTITUDE
1 Cognitive 2 Emotional 3 Social
4 Physical
PERSONAL
SUBSYSTEM
MATERIAL RESOURCES
1. Income 2. Savings
HUMAN RESOURCES
1. Financial management Knowledge
2. Socio- Demographic variables
COMPETENCY IN
PER. FINANCIAL MANAGEMENT
OBJECTIVE OUTCOME
Changes in Net-worth Cash-flow (+ve or –ve)
SUBJECTIVE OUTCOME
Financial Satisfaction
r =0.321*
r = 0.462*
r =0.231* r = 0.170*
r =0.417*
CHAPTER 5
DISCUSSION AND CONCLUSION
5.1 INTRODUCTION
The purpose of this study was to measure the level of knowledge, attitude and practice
on personal financial management among the medical practitioners in Malaysia and to
correlate these to their financial management satisfaction. In addition, the relationship
between the demographic characteristics of these practitioners and their financial
knowledge, attitude and practice in managing their finance were also analysed so that
their financial management trends, strength and weaknesses can be measured and
programmes can be targeted at areas of need.
The system approach model of financial management by Deacon and
Firebaugh (1981) was modified for the purpose of this study. Financial knowledge
and demographic characteristics (rank, sector and location of service) represent the
inputs into the system while financial attitude and financial practice represent the
throughputs. The output from the system was the financial satisfaction.
5.2 DISCUSSION ON RESEARCH FINDINGS
Knowledge
The results from the survey showed that only 33.6% medical practitioners in Malaysia
are highly knowledgeable in financial management while another 64.4% practitioners
are in the medium level of financial knowledged group. The lowest knowledge group
represents 2% of the doctors’ population in the country. The highly knowledgeable
group’s result is similar to that of a national survey done in New Zealand on its
population in the year 2006. They have reported that 33.5% of their population is
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highly knowledgeable, while 33.6% in medium level and another 32.9% scored low in
financial knowledge (ANZ-Retirement Commission Financial Knowledge Survey,
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.
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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
109
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.
110
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
111
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.
116
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
125
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:
126
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.
127
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.
128
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
130
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
131
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
132
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.
133
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
large emergencies. 1 2 3 4 5
139
FINANCIAL WELLBEING
STATEMENT OF CASH FLOW
INFLOWS
Employment Income
- Basic salary
Allowances
- Cost of living allowance
- Critical allowance
(Imbuhan perkhidmatan critical)
- Housing allowance
(Bantuan sewa rumah)
- Entertainment allowance
(Imbuhan keraian)
- Specialist allowance
(Imbuhan pakar pegawai perubatan)
On call Allowance
Annual Bonuses
Business income
Property Income
- Rental
Investment Income
-dividend
-interest
Other incomes
TOTAL INFLOWS
OUTFLOWS
Deduction from Salary
- Employment Providence Fund (EPF)
- Income tax
- Personal loan
- Housing loan
- Car loan
- Study loan
Others
Living Expenses
- Personal use house payment
Investment property payment 1
Investment property payment 2
Investment property payment 3
- House rental
Home Maintenance
Phone & Mobile Phone
Monthly Yearly
140
Phone & Mobile Phone
Utilities
-Electricity
-Water
-Gas
Food / Groceries / Household
Medical & Pharmaceutical
Clothing & Laundry
Pocket Money (for self)
Others
Car / Tranpotation
Car Instalment 1
Car Instalment 2
Car Instalment 3
-Maintenance /Repairs
-Fuel, Parking & Toll
-Insurance & road Tax
Others
Personal Insurance
Term / Group insurance
Life Insurance
Endowment Insurance
Investment-Linked Insurance
Medical Card
Personal Accident
Others
Property Insurance
Home mortage insurance
Fire insurance
Burglary insurance
Others
Loans
-Credit Card 1
-Credit Card 2
-Credit Card 3
-Credit Card 4
-Credit Card 5
-Study loan
-Overdraft & Line of credit
Others
Child Expenses
Child Care
141
-School
-School bus
-Tuition
-Extracuricular Activity
-Children pocket money
Medical & Pharmacceutical
Others
Leisure & Entertainment
Holiday Trip / Shopping
Restaurant / Theathre
Sports / Hobbies
Newspapers / Magazine / Books / CDs
Memberships
Others
Religion Expenses
-Festival Celebration
-Charitable Contribution
Others
Business Expenses
-Rental (office)
-Maintenance (utilitues bill etc)
-Salary (staff)
-Entertainment
Others
Saving Plans
-Monthly savings
-Amanah Saham Bumiputra
-Local Bank
Others
Existing Investment Plans
-Unit Trust
-Stocks
Others
TOTAL OUTFLOWS
SURPLUS / DEFICIT
142
FINANCIAL WELLBEING
NET WORTH STATEMENT
ASSETS
Liquid Assets
-Saving account 1
Saving account 2
Saving account 3
-Current account
-Other (FD,money market instrument, etc)
-Unit Trust (current markat value)
-Cash Value of Insurance Policy
-Shares in listed companies
Total Liquid Assets
Non-Liquid Assets
-Residential Properties (Own - Market Value)
-Commercial Properties -Market Value
-Residential Properties (Investment - Market Value)
-Commercial Properties (Investment - Market Value)
-Car (Market Value)
-Shares in business
-EPF
-Others (Painting, Jewellary,etc)
Total Non-Liquid Assets
TOTAL ASSETS
LIABILITIES & NET WORTH
Short-term Liabilities
-Credit Cards
-Income tax for YA 2007
Total Current Liabilities
Long-term Liabilities
-Property loans balance (own)
-Property loans balance (investment)
-Car loan balance
-Personal loan balance
-Overdraft loan balance
-Others (study loan,etc)
Total Long Term Liabilities
TOTAL LIABILITIES
NET WORTH
TOTAL LIABILITIES & NET WORTH
