Problem Solution Essay : Topic 4

“Beware of little expenses; a small leak will sink a great ship,” said Benjamin Franklin, meaning small daily spendings can lead to big financial problems if not managed wisely. Managing money is one of the biggest challenges for university students. With limited income and growing expenses, many struggle to make ends meet. This essay explores the major problems students face in financial challenges, focusing on the lack of financial literacy, high cost of living and education, and the influence of peer pressure and social media.

One major problem students face is a lack of financial literacy. Many students enter university without basic knowledge of financial and increasing living expenses, often leading them to skip meals or limit social activities (Rafidi, 2019). Without these skills, they may overspend early in the month and struggle later. For instance, some students spend their monthly allowance on leisure activities without realizing they still need to pay for food, transportation, or study materials. A practical solution is to introduce basic financial literacy workshops during orientation week or as part of a general studies module. With improved financial knowledge, students can plan better and avoid unnecessary stress.

Tuition fees, accommodation, transport, and daily expenses in urban areas like Kuala Lumpur are increasingly expensive. Even with PTPTN loans or scholarships, some students still struggle to cover all costs. This financial pressure can affect mental health and academic performance. The high cost of living in city campuses adds a heavy burden. For example, a university student might pay over RM600 per month for a small rented room near campus. When expenses exceed income, students may feel anxious or take part-time jobs, which can lead to fatigue and poor academic focus. One solution is for universities to offer more on-campus part-time jobs or provide affordable accommodation and meal plans. Easing student’s financial burdens helps them stay focused on their education and maintain mental well-being.

Students are often influenced by peers and social media trends to spend on gadgets, branded items, or eating out frequently. This desire to fit in can lead to overspending, even if their budget is tight. Social media platforms like Instagram and TikTok often show lifestyle that appears fun and luxurious. For example, a student may spend Rm30 on a single meal just to post it online, instead of saving that money for weekly groceries. Universities can counter this by promoting budget-friendly social activities and highlighting “real student life” stories that value savings over appearances. Encouraging a culture of smart spending can help students resist social pressure and focus on what truly matters.

In conclusion, financial challenges among students arise from poor financial literacy, high living costs, and peer pressure. Without proper planning and support, students may struggle to manage their money, affecting both their academic and personal life. Therefore, schools and universities should play a role in teaching financial skills, offering affordable options, and promoting a culture of smart spending to ensure students can thrive both academically and financially.