PERCEPTIONS OF DEBT AMONG UNIVERSITI MALAYSIA SABAH STUDENTS: IMPLICATIONS FOR FINANCIAL BEHAVIOUR

The growing issue of student debt has become a global concern with potential long-term implications for the financial stability of youth. This study explores debt perception among students at Universiti Malaysia Sabah (UMS), focusing on financial literacy levels and gender differences. A cross-sectional quantitative survey design was employed, involving 125 respondents from various faculties, selected through stratified random sampling. Descriptive analysis and Independent Samples t-tests were used to examine differences in debt literacy between male and female students. Findings indicate that students generally possess a moderately high level of debt knowledge, especially in areas such as loan interest, bankruptcy risks, and the effectiveness of financial advisory services like the Credit Counselling and Debt Management Agency (AKPK). Interestingly, no significant gender differences were observed, supporting the null hypothesis that gender is not a major determinant of financial literacy. However, the results also reveal gaps in students' understanding of long-term credit card debt implications, particularly concerning compound interest and late payment penalties. From a theoretical standpoint, the findings highlight the importance of early exposure to financial concepts and the cultivation of cautious financial attitudes, aligning with principles of behavioural finance theory. On a practical level, there is a need to strengthen holistic initiatives such as integrating financial education into university curricula, organizing expert talks, and offering individual guidance programs to enhance students’ financial literacy. These insights aim to support the development of sustainable debt management strategies and contribute to building a financially resilient youth population.