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1.0 INTRODUCTION This section aims at discussing the scope of the research.

1.1 BACKGROUND OF STUDY Generally, spending means the act of spending or disbursing money. It also can be stated as outgo: money that paid out otherwise refers as an amount spends for something. The spending pattern is about the people behavior in spending their money and this behavior is vary among people. The spending pattern among people is mostly depending on the economic situation other than other factors. People will spend most money when economic is blooming. At this time, people are thought to have more purchasing power. This is because they can coop with the price and affordable to buy things. At this time people will spend most of their income or money to go for shopping as the value of money tends to be high. Instead of, this situation will become vice versa when economics slow down. People will spend less when economic is slow down. At this time, the purchasing power is low because they can not afford with the price, so they can only focus on necessity things and tend to save more money than spend it. The value of money is decrease. Then, when the world faces economic problem, especially when the oil and other commodities price is increase, it brings the great effect on people spending pattern. People being more wisely in spending their money as their income probably can not afford their expenses. This situation affects people purchasing power. People now tend to spend only on necessity things rather than personal things as one of the way for saving.

Different people have different spending behavior as different people demand for different things. Of course people may have different needs and wants. The spending pattern vary in term of gender, marital status, family size, social classes, job level and etc.People always thought that women are spent more than men. Besides, married people and unmarried people will have different spending behavior because their needs and wants are varying according to family size. Basically, people with large family are intend to spend more for their needs and wants as compare to people who still single. It goes same with the people who have high job level and have high rank in social class may intend to spend more as their spending pattern are whether based on their needs, wants or affordable. So, this study is focus on determining the various factors leading to the various spending pattern among people, especially focus on staffs at UiTM Machang Kelantan.


The pattern of spending behavior might change due to certain causes.Obsviously; the economic situation plays an important determinant of the appending pattern. In economic recession, of course people purchasing power is low as they can not afford to coop with the price, thus, the spending is low. It goes same as when economic is blooming. The people purchasing power is relatively high as people can afford the price. As refer to the chart 1.0 in the appendix, the spending pattern among people is affected by several determinants such as

The income that the UiTM staffs received does not enough to cover their monthly expenses. Whereby, income that they receive monthly cannot support their expenses until at the end of the month. The several problems that we found that cause the problem of inadequate money expenses are as follows: First, because of the increasing of the commodities price nowadays such as rice, sugar, oil and etc, which make the household expenses, become increase. Thus, it affects the spending pattern among people who had married and have large family. Second, the nature of the income that they received is not same to adapt and meet with their needs and wants. As for people who have received income less than RM1000 to RM1500. Nowadays, of course these groups of people cannot compete to satisfy their needs as compare to people with the high salary. Third, as we know everyone have their own burden of liabilities such as education loan, property loan like car and house. Therefore their real income is much lesser than what they had spent. Thus, it affects the spending pattern among people who had lots of liabilities.



First of all the main purpose of the research that we want to conduct is to determined the spending pattern among the staffs in UiTM Kelantan. What we want to determine here is whether the family size, income, status, needs and demographic factors such as age and gender had influenced in their spending pattern. In proving the outlined the outcomes of this research study, we have chosen all the staffs from all job levels in UiTM Machang to conduct this study. A careful review of those question areas lead to the development of the following specific research objectives:  To identify the allocation of spending expenses among UiTM staff.  To identify whether the demographic factors such as age, gender and marital status influenced the spending pattern among the staff.  To know the relationship between income, various needs and wants have an influence toward the spending pattern.


 Is the family size has a direct influence towards spending pattern?  Is the income factor has influenced the spending pattern?  How much do they spent for the household, health, childrens education?


Hypothesis is defined as an educated guess of a researcher concerning the research problem. The most important role of hypothesis is to reflect general problem statement that motivates the researcher to study.

Ho: There is no relationship between the family size and spending pattern. H1: There is a relationship between the family size and spending pattern. Ho: There is no relationship between income and spending pattern. H1: There is a relationship between income and spending pattern. Ho: There is no relationship between age and spending pattern. H1: There is a relationship between age and spending pattern.


The study is focus on spending pattern among staffs at UiTM Machang.The populations involved in our research are UITM Machang's staff and the respondents are both male and female in UITM Machang. The amounts of the respondents that we take for this research are 100 staff, including married and bachelor staff. From the 100 respondent we divided them according to their job level which is 25 people per one grade, (A, B, C and D). research is to examined the factors that affect their various spending pattern.


The study faces some limitation:

(1) Respondent cooperation. It may not be easy to get cooperation from the respondents as they didn't answer the questionnaires fully. So it's difficult to gather and collect the exact and specific information. It also difficult to ensure that the respondents give full participation and there are some of them that unwilling to provide the desire information.

(2) Time constraint The research period is limited to 2 months is insufficient to properly collect, gather, process, and analyzes the research. The timeframe to do this research is not enough as it can affect the findings of the research.

(3) Cost constraint The budget constraint is also another limitation as there is no sponsorship or fund to support this research. We have used so lot of cost in doing this research from beginning to the end. It is because we have to print out our report and Photostat a set of hundred questionnaires. Needs to top up with our limited financial ability.

(4) Confidentiality Some of the relevant or valuable can not be exposing.

1.8 SIGNIFICANCE OF STUDY The knowledge acquired through this study should contribute to better understanding of the phenomena of spending pattern among people in Malaysia specially, and in contributing to the future research in similar areas generally. Since this study may be treated as a case study, the results should contribute greatly in terms of methodology for studies to be conducted at a different level of population or with a broader scope of population.

 To UiTM The management will be more understand the factor which influences the staffs spending pattern. Thus, they can encourage the staffs to be more efficient in works in order to get appropriate return to meet with their needs.  To staffs Staffs will be more understand the important of spending wisely and according to their needs and capabilities.  To researcher Researcher will get some knowledge as well as experiences in conducting this research. We can know the spending pattern among people in Malaysia generally.