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AKPK: Thirty-nine institutions of higher learning offer personal financial management course
Posted on Feb 17, 2023
KUALA LUMPUR: The Credit Counselling and Debt Management Agency said 39 institutions of higher learning (IPT) are now offering a credit module in Personal Financial Management (PFM), which is hoped will be made compulsory nationwide.
AKPK Household Financial Education Department head, Nirmala M Supramaniam, said the introduction of the course was timely, in efforts to curb the financial problems faced by many in the community.
"Statistics show that until December last year, 41.8 per cent of those aged between 30 and 40 are facing difficulties due to their lack of knowledge in financial management.
"If financial management was introduced during their studies at institutions of higher learning, to some extent, it could give them early awareness and perhaps helped them to better plan in managing their debts," she told Bernama.
Nirmala said financial management, or financial literacy, was actually a soft skill which was very useful when facing various financial challenges.
"This includes how youths can easily be exposed to making mistakes in financial decisions, which can lead to bankruptcy, such as financial fraud, get-rich-quick schemes, and unproductive loans.
"Therefore, financial literacy programmes should be extended not only to those taking related subjects, but should also be made compulsory for all students," she said.
She said to date, the agency had received positive responses from students, and financial programmes conducted also reach out to youths with a more holistic approach.
"Among the programmes conducted are gamification, brainstorming and involvement of industry experts, and these youths will acquire management knowledge and good financial behaviour," she said.
She also added that youths should be encouraged to be interested and gain more financial management knowledge to foster good financial behaviours and habits.
"Having applied financial skills will create awareness, exposure and encouragement for the individuals about better financial management.
"This will enable them to manage their income, spending and loans efficiently, especially before making financial commitments, to avoid problems in the future. Prevention is better than cure," she said.
She added that youths should be advised to take advantage of getting the services of financial advisors, offered by the agency or other legitimate institutions.
She said since its inception, the agency had offered its experts' advisory services to 1.2 million people as of December last year.
"In addition, over a period of 10 years, about 400,000 individuals have participated in our debt management programme and about RM2.4 billion has been settled via the programme," she said. – Bernama
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