02 December, 2017

13 Topic 8 Representations

13 Topic 8 Representations
? INTRODUCTION
This topic focuses on the issue of representation. Representation deals with how
certain groups assign meanings to certain items. Representation also involves
issues related to how a certain cultural group is being seen and perceived and how
their images are being portrayed in the media. Media representation can be seen
as the way media shows and portrays people in a particular group, or community
and also their experiences. This topic focuses on the issue of identity and the
different types of identity. Identity can be at a personal level and at the same time
maintaining a group or cultural identity. Lastly, this topic explores what it means
to be a citizen of a democratic country and how this relates to the issue of
representations of identity.

Topic 8 Representations
By the end of this topic, you should be able to:
1. Explain the concept of cultural representations;
2. Describe the meaning and types of identities; and
3. Discuss the relationship between citizenship and democracy.

LEARNING OUTCOMES

This subtopic explores the concept of media representation of certain cultures and
groups in societies. It explores whether the media representations are real or
whether they have played roles in building perceptions of these groups.
Representation has been defined by Hall (1997) as „using language to say something
meaningful about, or to represent the world meaningfully, to other people‰. Hall
(1997) further stated that representation is very important where „meaning is
produced and exchanged between members of a culture‰.
In terms of cultural representation, different items have different values to people of
different cultures. For example, pictures and paintings carry specific meanings and
representations to different cultural groups. In the teaching of feng shui in Chinese
culture, the pictures or paintings that they put in their homes represent more than
just decorations. For example, some individuals may consider water paintings to
represent life's journey, finances and professional career; these are placed
strategically in their homes for good fortune.
Hall (1997) further described two systems of representations. First is the system
where we have a mental definition of items, objects or people that we have seen.
This forms the basis of how we relate to the world. The second process involves
more of a conceptualisation process. The conceptualisation process may differ
based on our personal experience or even based on where we live. This creates a
process of building a perception where one may select, organise and interpret the
object based on a conceptualisation process. For example, one's culture plays a
strong role in defining certain concepts such as war and democracy.

8.1.1 Theories of Representation
There are three approaches to how meaning is represented through language.
Table 8.1 discusses these approaches in further detail.
Table 8.1: Approaches to Representation of Meaning
Type Description Example
Reflective
approach
The meaning of the object lies
in the object itself.
„A rose is a rose is a rose is a rose‰
a a famous line from Gertrude
SteinÊs poem, meaning often things
can be interpreted by what they
are.
Intentional
approach
The meaning of a certain object
lies in the intention of the
speaker.
In Malay culture, during the
engagement process, the speaker
may use contextual meaning of
words in expressing their intention.
For example, „we would like to
pluck a flower in your garden‰
means we would like to have our
son marry your daughter.
Constructionist
approach
Meanings of objects are all
constructed using a system of
representation, using signs and
symbols. It reduces the material
meaning to an object but focuses
on the constructed meaning. The
meaning is on the symbolic
function of the product.
The feng shui painting scenario
provided earlier.

 MEDIA REPRESENTATION
Media representation focuses on the role of media in depicting and portraying
certain cultural groups, communities and culture. It may also play a role in
portraying certain political ideologies or even values within a society. In a way it
raises the question whether media reporting or representations are exactly the
reality of life or do they in a way create new realities?

Look at some items around your room. Are you able to recognise the
items? How are you able to recognise them? Try to break down your
thought process as to how you are able to identify the items. Share your
experience in the online forum.

ACTIVITY 8.1

8.2.1 Representation of Culture
Media plays a strong role in influencing and shaping the perceptions of
individuals. Media is a platform where people learn about others from different
cultures. For example, when watching television, one learns about another culture
from news programmes, dramas, documentaries, cartoons, and so forth.
Individuals also base their understanding on what they read in the newspapers or
on information obtained online. The media plays a stronger role especially when
one has no direct contact with other cultures.
Some argue that certain groups are misrepresented in online media. Said (1997) in
his book Covering Islam: How the Media and the Experts Determine How We See
the Rest of the World, discussed how media has portrayed Muslims around the
world. He stated that there is a relationship between knowledge and power in which
those who control knowledge, will control power. Thus, media owners are powerful
in the cultural representation of selected groups in the media. Subsequent to
September 11, 2001 there have been many media reports, views and comments,
albeit negative descriptions, about Muslims and Islam across the world, associating
the religion and followers of the faith with fundamentalism and terrorism.
Other groups have also encountered representation issues in the media. For
example, the image of women has also been the target of media scrutiny. What
depicts beauty has been defined by many womenÊs magazines. Disney's
representation of the leading characters have also been an issue where there is a
stronger need for women to be more independent and empowered.
Other than that, the coverage of news when it comes to certain religion, ethnics,
global or local issues can also be seen as a form of media representations. As an
audience, what we actually see, hear and read in any means of media is a welltailored
and framed product of the producers, gatekeepers and media personnel.
These behind-the-scene processes are fitted for certain news for the audience to see
and believe. The end product of news that the audience received has also been
mediated by countless layers of saturations before it is presented, trimmed neatly
to the mass audience. What is chosen and presented as news has already been
narrowed down. Thus, the actual reality of the world is askew and what is released
is what is represented and mediated by the media. For example, the media
coverage on election, sexual assaults victims and perpetrators, and environmental
issues and many more.

 IDENTITIES
Castell (1997) describes identities as „sources of meaning for the actors, and by
themselves, constructed through a process of individuation. /Identities can also be
originated from dominant institutions; they become identities only when and if
social actors internalise them, and construct their meanings around this
internalisation‰. Castell (2004) further describes identity as peopleÊs source of
meaning and experience where individuals are required to not only organise their
meanings and thoughts in life but also the role they play and how they may function.
Liu, Volcic and Gallois (2011) described identity as „each individualÊs particular
way of identifying himself or herself within specific cultural contexts‰. Identity
can be defined by religion, gender, class, race, ethnicity political orientation, social
group, occupation and geographic region. Figure 8.1 shows the two different
categories of identity.

Figure 8.1: Personal and social identity

Go online to a local newspaper website. Click on the international section.
Look through the news and see how certain individuals or groups are being
portrayed in that newspaper. Give your comments in the online forum.

ACTIVITY 8.2

As shown in Figure 8.1, there are personal identities and social identities. The
personal identity is related to attributes of an individual self, in a way that one
defines himself or herself. Social identity is how being part of a group requires an
individual to project a certain form of identity. It could be in the form of cultural
or ethnic identity, part of a religious or social class group or even being part of a
professional membership.

Jansson (2008) explained that the concept of identity deals with the relation
between self and society or self and the other. Identity can be understood as the
situation or condition of being oneself and not others. However, a person might
take in the identity of other people as their own in order to create an identity that
only they understand and that can also be accepted by society.

8.3.1 What is Identity?
Identity can also be defined as something that we can see as the unique
characteristics of a person or the qualities and beliefs of a person that can be used
to distinguish a person from another. However, some might feel that the identity
that they have might be rejected by society. Thus, some may try to occupy or adopt
a more acceptable identity for their society, family and colleague.
For example, Hayati Abdul Karim (2014) mentioned that the way youth construct
their identity depends a lot on their daily life, who their friends are, what their
social activities and daily life are like, as well as the relationship of the youth
between their parents and friends.

Thompson (as cited in Hayati Abdul Karim, 2014), says that the construction of
identity nowadays is very much influenced by the media. The self that we identify
as our identity is a result of experience and exposure from the foreign influence
which comes from the global television programmes that is easily accessible
through many means of media. The local audiencesÊ exposure to foreign content
through the media has created an amalgamation of identity. Furthermore,
Thompson (as cited in Hayati Abdul Karim, 2014), affirmed that the reason behind
cultivation of self-identity from resources of the media is due to the weakening of
local cultures. This has become the main factor why foreign media has great
influence on the construction of identity.
Lily El Ferawati Rofil, Md Azalanshah Md Syed and Azizah Hamzah (2015), point
out that the role of media technology especially in the construction of identity is
immense. Especially in the concept introduced by Anderson (2006) who defined
imagined community as „a concept that explained the idea that the construction
of identity is very much influenced by the media‰.

8.3.2 Conceptualisation of Cultural Identity
Cultural identity is defined by Ting-Toomey and Chung (2012) as the „emotional
significance that we attach to our sense of belonging or affiliation with the larger
culture‰. It is also important to understand the concept of cultural identity salience
which focuses on the strength of the relationship that one has with one's group.
A person has a low cultural identity salience if his or her attachment to his or her
cultural group is weak and vice versa. The level of attachment relates to how one
is willing to practise the culture, norms and values of the group.
People discover their specific cultural identity when they co-exist within a
multicultural society. It begins from our early stages of development with our
religious upbringing, the neighbourhood that we live in, the friends we have.
Family is usually the first group of people that you identify with culturally. For
example, these are the people with whom we first learn how to behave, know what
is socially acceptable and what sorts of non-verbal communication to use. We also
learn about our cultural identity through the mass media. At the same time, we
also learn about other cultural identities through the mass media, which may
construct and shape our perceptions of certain cultures.

8.3.3 Conceptualisation of Ethnic Identity
Ethnic identity relates to the origins of the person. It goes back to the roots of the
personÊs ancestors. For example, ethnicity can be defined based on oneÊs race,
religion, nationality or even language (Ting-Toomey & Chung, 2012).
Ethnic identity relates a great deal on an individualÊs country of origin. However,
with migration and mobility of society, it is becoming more difficult to study
where one originates from. For example, African Americans and European
Americans may find difficulty tracing their original roots as they themselves are
products of a mixed group of communities.
However, ethnicity also incorporates a sense of belonging and identification with
the greater group. It is more subjective as it finds the links to and similarities with
the forefathers. We can infer about individuals based on their ethnic values. This can
be based on people's traits in terms of cultural dimension. For example, Asian
Americans tend to uphold a more collectivistic form of society in contrast with the
White American and African American who tend to believe more in individualism.
Individualism embraces idea about individuality and personal attainment as
opposed to collectivistic form where importance is put on the needs and goals of a
group. The relationship between each member of a group is emphasised as a vital
link in a person's identity which is connected to the collectivistic form. Furthermore, the individualism form emphasises on self-reliance, independence and also freedom
to act in the way one believes, making decision and choices individually as
individualistic identity is of utmost importance for them.

 CITIZENSHIP AND DEMOCRACY
Citizenship is an interesting concept as it combines the traits of both individualistic
and collectivistic cultures. Democracy is a form of ideology that originated in
Greece over 2,000 years ago. Democracy means rule by the people. It places
emphasis on the importance of an individual as the core basis of the nation.
8.4.1 Citizenship
Citizenship can be individualistic as it focuses on the rights, liberties and freedom
of the individual; and it can also be collectivistic as citizenship is communal, where
you exercise your citizenship by becoming a member of a certain group, in this
context a particular nation state.


1. Name a few factors that are important in the construction of
identity?
2. How does the media play a role in the construction of identity?
3. Explain the concept of cultural identity.
SELF-CHECK 8.1
1. What are your views on the impact of foreign media on our local
identity in Malaysia?
2. Discuss examples of media that have influence on your daily life.

ACTIVITY 8.3

Table 8.2 briefly describes the different concepts of citizenship.

Table 8.2: Different Concepts of Citizenship
Liberal Civic Republican
? Focus on economy.
? Participation in economy such as
being tax payers, free to engage in
business and obeying the law.
? Pursuit of self interest.
? May lead to extreme individualism
where there will be lacklustre public
spirit.
? Focus on politics.
? Participation in democracy and focus
is on the greater goal of the people.
? Activities relate to the public sphere.
? There will be the opportunist group
who may not perform duties as
citizens.
Source: Adapted from Faulks (2000)

8.4.2 Democracy
In democracy, representatives are selected based on a true and fair election, the
use of the Constitution as a sovereign understanding of a country and upholding
the concept of freedom and equality.
Magruder and McClenaghan (2005) described the American concept of democracy
in the following basic notions:
(a) Recognition of the fundamental worth and dignity of every person;
(b) Respect for the equality of all people;
(c) Faith in majority rule and an insistence upon minority rights;
(d) Acceptance of the necessity of compromise; and
(e) Insistence upon the widest possible degree of individual freedom.
The US is a country that follows the Federal Republic system, where the President,
the Congress and the Court work together in accordance to their Constitution.
Different countries have different systems that reflect their own countryÊs history
and views on how to approach democracy in their own way that would be suitable
for the their own country.

8.4.3 Democracy: Malaysian Context
In Malaysia, we practise Parliamentary Democracy with Constitutional Monarchy
where the Yang di-Pertuan Agong is our head of the state and the Prime Minister
is the head of the government. Moreover, our Parliamentary Democracy system is
divided into three parts which is the Legislative, Judiciary and Executive system.
We also practise democracy based on the Federation systems where it is stated that
all the states in Malaysia are combined as one country. Malaysia is then headed by
the Yang di-Pertuan Agong, who is chosen from among the nine state rulers in the
country. The Yang di-Pertuan Agong is also the head of Islamic Religion, customs
and traditions of the majority race in Malaysia, namely, the Malays.
Malaysia's Parliament consists of the following three components to represent the
people of Malaysia:
(a) The Yang di-Pertuan Agong (King);
(b) Dewan Negara (House of Senate); and
(c) Dewan Rakyat (House of Representatives).
The Malaysian Parliament holds onto power for five years from the first day of its
meeting after Election Day. Every Malaysian citizen aged 21 years and above can
vote every five years.

1. Explain the difference between cultural and media representation.
2. What is the difference between cultural and ethnic identity?
3. What are some of the basic principles of democracy?

SELF-CHECK 8.2

? Cultural representations of certain communities in the media have been
criticised as they may not necessarily depict reality.
? Different items may have different values to people of different cultures.
? There are two systems of representation:
- When items, objects or people are defined mentally by what an individual
has seen; and
- Involves a conceptualisation process that is based on an individualÊs
personal experience.
? There are three theories of representation:
- Reflective approach;
- Intentional approach; and
- Constructionist approach.
? Media plays a strong role in influencing and shaping perceptions of
individuals. Some groups of people are misrepresented in online media.
? There are two categories of identity, namely, personal identity and social
identity.
? Personal identity is related to a psychological context.
? Social identity consists of group membership that an individual is in.
? Ethnic identity relates to the origin of a person. However, with migration and
ease of mobility, determining where an individual originates from can be
difficult.
? Identity is defined as the unique characteristics of a person or the qualities and
beliefs of an individual that can be used to distinguish one individual from
another.

? Foreign media has a great influence on an individualÊs identity.
? There are differences between the conceptualisation of cultural and ethnic
identities.
? Individualism embraces the idea of individuality and personal attainment,
whereas collectivism puts emphasis on the needs and goals of a group.
? Citizenship is a concept which can be both individualistic and collectivistic.
? Different concepts of citizenship include liberal and civic republican.
? Citizens play a strong role in the success of a democracy.
? Malaysia practises a Parliamentary Democracy with a Constitutional
Monarchy where the Yang-di-Pertuan Agong is the Paramount Ruler or the
head of state and the Prime Minister is the head of government.

Citizenship
Civic republican
Constructionist approach
Cultural identity
Cultural representation
Ethnic identity
Intentional approach
Liberal
Media representation
Personal identity
Reflective approach
Representation
Social identity

Anderson, B. (2006). Imagined communities: Reflections on the origin and the
spread of nationalism. London, England: Verso.
Castells, M. (1997). The power of identity. Malden, MA: Blackwell.
Castells, M. (2004). Informationalism, networks, and the network society:
A theoretical blueprint. Northampton, MA: Edward Elgar.
Faulks, K. (2000). Citizenship: Key ideas. London, England: Routledge.
Hall, S. (1997). Representation: Cultural representations and signifying practices.
London, England: Sage.
Hayati Abdul Karim. (2014). Globalisasi, penggunaan media dan identiti hibrid di
kalangan remaja Malaysia. Jurnal Komunikasi Borneo, 1(77), 105.
Jansson, A. (2008). Contested meaning: Audience studies and the concept of
cultural identity. Intexto, 1(5), 1a31.
Liu, S., Volcic, Z., & Gallois, C. (2011). Introducing intercultural communication:
Global cultures and contexts. Los Angeles, CA: Sage.
Lily El Ferawati Rofil, Md Azalanshah Md Syed, & Azizah, Hamzah. (2015). „Jadi
melayu‰ televisyen dan pembentukan identiti wanita keturunan jawa di
Malaysia. Jurnal Komunikasi, 31(1), 41a58.
Magruden, F. A., & McClenaghan, W. A. (2005). MagruderÊs American government.
Needham, MA: Pearson/Prentice Hall.
Said, E. (1997). Covering Islam: How the media and the experts determine how we
see the rest of the world. London, England. Vintage.
Stein, G. (1922). Geography and plays. Boston, MA: The Four Seas Company.
Ting-Toomey, S., & Chung, L. C. (2012). Understanding intercultural
communication. New York, NY: Oxford University Press.

05 December, 2016

sem 10 T7 Wellness

7   Wellness
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1.       Differentiate between financial health and financial wellness;
2.       Identify   the   challenges   confronting  „emerging‰   adults   in   their   quest
for financial wellness;
3.       Discuss the elements of financial wellness; and
4.      Construct a financial fitness plan.

INTRODUCTION
As discussed in the previous Topic 3, financial health and wellness is one of the
eight   dimensions   of   the   holistic   model of health   and   wellness.   Can   you   still
recall? Take note that each of the   eight      dimensions         has     to   be    pursued
individually but in tandem with the pursuit of the other seven dimensions.

What are you going to learn in this topic? Basically, this topic is organised into
four   subtopics.   In   subtopic   7.1,   we   will  be   introduced   to   financial   health   and
financial   wellness.   It   also  discusses   the   importance   of   financial   wellness   in   the
context of oneÊs total health.

Then in subtopic 7.2, we will discuss the challenges to the attainment of financial wellness       particularly       during      oneÊs     passage      to   adulthood. Knowledge  of  past
challenges (which had been experienced by past generations) will enable one to be better prepared to circumvent them as one travels through glitches in life.

This    is  followed     by   subtopic    7.3  which     discusses    the   elements     of  financial
wellness that would be of help as one strives to attain wellness. Lastly, the final
subtopic concludes with the concept of financial fitness, which is in vogue among
major   corporations   around   the   world   to   help   defray   the   cost   of   attainment   of
health   and   wellness   to   the   corporations   and   their   respective   constituents   alike.
Hopefully, by the end of this topic, you will be able to construct a financial fitness
plan that suits you. All the best!

7.1   FINANCIAL HEALTH AND WELLNESS
This first subtopic explains financial health and financial wellness. Hopefully, by
the end of this subtopic, you will be able to differentiate between the two. Now,
let us look at the definition of financial health first. Do you have any idea what it
means?

Financial health is a term used to denote „the state of oneÊs personal financial
situation‰.

Take     note   that  there   are   many     dimensions      of  financial   health,   for   example,
disposable      income,    savings    and    loan  repayments.   In     addition,    the   concept    is
embedded in the practices of organisations.

How   do   we   determine   the   financial   health  of   business   organisations?   Financial
health of business organisations is determined by examining their:
(a)    Financial conditions (what the firm has) such as assets;
(b)    Liabilities (what the firm owes); and
(c)    Net worth (net amount of what the firm has after taking into consideration
       the claim of lenders on what the firm has).
Apart   from   knowing   the   absolute   amount   of   each   item,   it   is   also   important   to
know   its   relative   composition.   However,   these   items   showed   their   respective
position at one point in time. Other important aspects to consider are dimensions
which show potential improvements or otherwise, of these items over time. This
dimension is essentially pictured by the profitability of the firm. This is because
profitability     is  an  important     determinant     of   the   firmÊs   future   finances    or  its
wellness.

How about   financial health of individuals? Similarly, it is a description of how
well one deals with his or her finances, like making timely payments and setting
aside a certain amount for savings.

Now let us move on to financial wellness. Financial wellness of individuals, on
the    other    hand,    is  a  more     holistic   description.     It  denotes     „the   state   of
psychological       well-being     in  which     one   feels   they  have     control    over   their
respective current finances as well as future finances.‰

Did you know that financial wellness is a new concept that came as an aftermath
of the global Great Recession of 2008 to 2009? The turmoil of the Great Recession
left   many    feeling   vulnerable.     Many     people    were    ill-prepared    to  handle    the
experience of personal financial crisis that ensued.

The   two   years   of   the   Great   Recession   was   not   the   only   cause   of   the   personal
financial   crisis.   The   effect   of   the   recession   on   individuals was   compounded   by
the   widespread   lack   of   appreciation   of  the   basic   underlying   principles   of   good
personal      finance    practices.   As    a  consequence,     poor     financial    results   were
experienced.

What     are   the  impacts     of  the  poor   financial    state?  The    impacts    of  the  poor
financial     state  that   resulted    were    compounded         by   widespread       job  losses,
declining     asset   values    and   great   drops   in   value    of  savings.    These    adverse
phenomena left many in a state of financial distress. What does financial distress
mean?

Financial distress is a term in corporate finance which describes a situation
where a company fails to honour its promises to pay its creditors according
to the agreed term of credit.

What happens if financial distress cannot be relieved? If financial distress cannot
be relieved, it may lead to bankruptcy.

Consequentially, the concept of financial well-being came about as an important
dimension       of  health   and   wellness.    Generally,    financial   wellness    is  a  state  of
financial affairs where an individual has achieved the following:
(a)    Strong   financial   foundation   with   little   or   no   debt,   with   some   emergency
       savings fund and surplus income over expenditure;
(b)    An ongoing plan that puts one on track to reach future financial goals; and
(c)    Absence of financial stress.

ACTIVITY 7.1

Go    to   University     of  Wisconsin-River        FallsÊs   website     and   take   the
wellness       assessment      test   at  https://goo.gl/rPHR1s.            Answer      each
question honestly and reflect whether you could have been better off if
each of the said practice has been observed fully.

7.1.1 Importance of Financial Wellness in the Context of One’s Total Health

Lien     (2012),   in  introducing      his  Primal     Finance     Series,   employed      MaslowÊs
hierarchy of needs to illustrate the building block of personal financial fulfilment
and   happiness.   Following   Maslow,   Lien   felt   that   it   is   hard   for   one   to   achieve
professional   success   if   he   or   she   is   devoid   of   „a   meaningful   place   to   live   in,
clothes   to   wear   or   food   to   consume.   Fulfilling basic   needs   are   mostly   required
before trying to satisfy higher order desires.‰ Lien thus laid the basic foundation
of his series on MaslowÊs hierarchy of needs.

For our purpose, it makes sense to use it as building blocks for reaching personal financial wellness. Let us review Maslow's hierarchy of needs shown in Figure 7.1.

Figure 7.1: Maslow's hierarchy of needs
Source: https://jimlien.files.wordpress.com

Maslows hierarchy of needs is a psychological model based on analysing human
needs and trying to fulfil them in a pecking order.

Overall, the pecking order of needs is described in Table 7.1; it starts from basic
to the most advanced.

Table 7.1: Maslow's Hierarchy of Needs

   Level         Type of Needs          Specific Needs

     1         Physiological            Breathing,    food,   water,    sex,   sleep,  homeostasis      and
   (most                                excretion.   Not   unsurprisingly,   these   are   health   related
   basic                                issues.   Why   would   you   try   to   attain   something   higher
  needs)                                than health if you have none to enjoy?

     2          Safety                  The security of body, employment, resources, morality,
                                        family,   health   and   property.   Much   of   these   have   to   do
                                        with externalities, primarily political. Most importantly,
                                        is there a system of morality established in my place of
                                        residence   in   which   I   feel   safe   in   regards   to   myself   and
                                        my family? If I earn something, do I get to keep it? Are
                                        there sufficient opportunities to earn a living to provide
                                        for my family?

     3          Love/belonging           Humans are social creatures. Most of the very successful
                                        people    are   connectors.    They    help   people    meet   other
                                        people   who   can   then   provide   some   sort   of   value   in   a
                                        mutually beneficial way.

     4          Esteem                   Self-respect, confidence, strength, mastery, independence
                                        and freedom. Esteem ultimately comes from having good
                                        relationships, practice and experience.

     5         Self-actualisation        This means reaching full potential. By using Maslow as
   (most                                a   model,   you   can   determine   where   you   should   focus
advanced                                your first efforts in financial enlightenment; it is a good
  needs)                                way to start.

Source: Lien (2012)

SELF-CHECK 7.1

Briefly describe MaslowÊs hierarchy of needs based on the five different levels.

ACTIVITY 7.2
In    small    groups,     discuss     how      you   would       explain     the    „financial
happiness‰ in the context of Maslow hierarchy of needs.

7.2          CHALLENGES TO FINANCIAL WELLNESS
Now we come to look at the challenges to financial wellness. It is hoped that by
finding   out   more   about   these   challenges,   you   can   design   plans   which   can   help
you remove obstacles to lay the foundations for your financial wellness.

Let us reflect on this question: At what age do you think one is expected to be
financially independent? Well, one is expected to be  financially independent as
one enters adulthood. This is because as a legal adult, he or she is a person who
has attained the age of majority and is therefore regarded as independent, self-
sufficient and responsible.

Did you know that adulthood can be identified by using a marker? The passage
from   adolescence   to   adulthood   is   marked   by   the  experience   of   particular   life
events. So, what are they? Traditionally, the major markers have been identified
as these life events (see Figure 7.2).


                      Figure 7.2: Four experiences to mark adulthood

In   the   past,   up   to   the   era   of   baby   boomers   (born   between   1946   and   1964),   the
passage to adulthood had been rather smooth. The emerging adults would have
acquired the finesse of adulthood primarily through direct guidance and support
from parents.

7.2.1          Economic Challenges

The   majority   of   Generation   X-ers   (born   between   1965   and   1980)   and   boomers
believe     Generation      Y  or   Millennials     (born    after  1980)    face   more    economic
challenges   than   they   themselves   had   faced   when   they   were   first   of   age   (Pew
Research Centre, 2014).

The more trying conditions faced by Millennials themselves have caused them to
be   realistic   about   their   relative   positions.   A   research   poll   in   2014   revealed   that
only 42% of the Millennials identify themselves as „middle class‰, whereas 53%
of   their   fellow   Millennials   in   an   earlier   poll   (which   was   in   2008)   had   claimed
themselves to be so. In fact, more strikingly, 46% of them described themselves as
of lower than middle class in the recent survey (Pew Research Centre, 2014).



7.2.2          Other Challenges



Do you realise that there are more major developmental changes and challenges

associated   with   the   period   of   adolescence?   For   example,   the   millennial   youths

have to acquire and consolidate their competencies, attitudes, values and social

capital necessary to make a successful transition into adulthood.



Late    adolescence      and   the  period    that  follows    (often   referred    to  as emerging

adulthood), have been noted as particularly important. It constitutes a stage for

continued   development   as   individuals   begin   to   make   choices   and   engage   in   a

variety of activities that are potent influences for the rest of their lives.



Take     note   that   as  youth    move     into  emerging      adulthood,      their  choices    and

challenges      shift.  This  includes    decisions    related    to  the   traditional   markers    of

adulthood as shown in Figure 7.2.



Recently,   social   scientists   have   found   that   the   transition   to   adulthood   is   taking

longer to complete. This is because becoming an adult today (for Generation Y

and Millennials) is totally different from 30 years ago. This can be related to some

of the contributing factors which include the following (Richardson, 2015):



(a)    New economic landscape;



(b)    Changed perspectives; and



(c)    An altered path to professionalism.



Nonetheless, the Millennials are almost as optimistic of their financial futures as

Generation       Xers    were    when     they   were    of  comparable       age.   Those    who     were

employed then were confident that they were earning enough to live the life that

they    aspired     while    those    who    were    not   employed       were    bullish    about    their

financial futures (Pew Research Centre, 2015).



Even   though   emerging   adults   who   had   not   moved   out   realised   that   they   were

pulling   clear   of   their   adolescent   struggles   and   starting   to   feel   responsible   for

themselves, they still had to cling to the lifeline of their accommodative parents

(Munsey, 2006).



According to Munsey, Arnett (2000) thus proposed a new period in lifespan that

he   called   „emerging   adulthood‰.   This   emerging   adulthood   has   certain   distinct

characteristics as described in the following Table 7.2.



Table 7.2: Five Characteristics of Emerging Adulthood



 Characteristic                                          Description



Age of identity       Young people are deciding who they are and what they want out of

exploration           work, school and love.



Age of                The     post-high    school    years   are   marked     by   repeated     residence

instability           changes.   As   young   people,      they   either  go  to  college,  or   live   with

                      friends    or  a  romantic    partner.    For  most,   frequent    moves    end   as

                      families and careers are established in the 30s.



Age of self-          Freed   of   the   parent   and   society-directed   routines   of   school,   young

focus                 people try to decide what they want to do, where they want to go and

                      who   they   want   to   be   with   before   those   choices   get   limited   by   the

                      constraints of marriage, children and a career.



Age of feeling        Many      emerging      adults    say   they  are    taking    responsibility     for

in between            themselves, but still do not completely feel like an adult.



Age of                Optimism       reigns.   Most  emerging      adults   believe    they  have    good

possibilities         chances   of   living   „better   than   their   parents   did‰   and   even   if   their

                      parents separate, they believe they will find a lifelong soulmate.



Source: Arnett (2000)



According to Arnett (2000), emerging adults pin their hopes from life  a job that

is   well   paid   and    personally     meaningful,       and   a  lasting    bond    with    a  partner.

However,   Arnett   is   pessimistic   many   might   be   headed   for   disappointment.

Most employers simply want someone who can get a job done. If happiness is the

positive   difference   between   what   you   actually   get   and   what   you   expect   out   of

life,   then   a   lot   of   emerging   adults   are   setting   themselves   up   for   unhappiness

(Munsey, 2006).



7.2.3          Contributing Factors to Delayed Adulthood



What are the factors that contribute to delayed adulthood? Well, let us find the

answer in Figure 7.3.



Figure 7.3: The factors that contribute to delayed adulthood



These factors are further explained as follows:



(a)    Economic Landscape

       Have you ever worked in a factory during school break or semester break?

       Most     of  you    would     say  „yes‰.    Am    I  right?   In  the   past,  even    before

       completing school, many teenagers could work in factories, earning enough

       money   to   support   themselves   or   family.   The   farsighted   few   would   go   to

       college    and   enjoy    the  benefits   of  say,  supervising      the  production     lines.

       However,       over    time,   local   openings     became     scarce    as  manufacturing

       establishments flew to cheaper jurisdictions.



        Aspiring   school   leavers   soon   realised   they   needed   to   scale   up   hence   to

       college. With time, it is commonly seen that one needed to pursue tertiary

       education to make it. College attendance thus soared.



        However, with college attendance, debt ensued. Add to it the rising costs of

       living, food, accommodation  and transportation. So, it is not a big surprise

       that young people often do not settle into careers and family until after their

       mid-twenties.   The   reason   is   that   they   simply   do   not   have   the   money.   The

       dominating factor is that it is taking longer for young adults to transition into

       adulthood.      This    transition   period   has    been    labelled    as  the   „emerging

       adulthood‰ by some or as „in-between age‰ by others (Richardson, 2015).



(b)    Housing Issue

        Did you notice that millions of young adults live with their parents? Do you

       know   why?   In   fact,   some   young   adults   have   failed   to   grasp   life   bravely

       while others just do not have the money to live independently.



(c)    Unemployment and Underemployment

        Did   you    know     that  nearly    75   million   young     people    worldwide      are

       unemployed? In fact, the global youth unemployment rate has remained at

       12.6% since 2009.



        In   Malaysia,   the   youth   unemployment   rate   has   remained   high   since   the

       Asian    financial   crisis  of  1998.   From    a  low   of  6.7%   in  1996,   the  youth

       unemployment rate shot up to 11.3% in 2010.



        Even graduate unemployment rate which did not exceed 2.3% in the early

       1990s before the Asian financial crisis, has since not gone anywhere below

       2.9%.



        These figures have not yet taken into account the millions of young people

       who are underemployed. In addition, the cost of living, housing, healthcare

       and     childcare     are   rising   too,   against    the    backdrop      of   increasing

       unemployment   and   underemployment.   Topping   it   up              is   the   impending

       shrinking of job opportunities among aspirants caused by higher retirement

       age (Asia Pacific Youth Employment Network, 2012).



 (d)   New Approach to Relationships

        The   social   and   economic   changes   that   contributed   to   the  rise   of   emerging

       adulthood      include    the  transition   from   a  manufacturing       economy     to  an

       economy   based   mainly   on   information,   technology   and   services.   This   has

       caused     more   and    more   young     people   to  pursue    longer    post-secondary

       education in order to prepare themselves for jobs in the new economy.



        Therefore, this means later ages of entering marriage and parenthood, and

       widespread       acceptance     (or   at  least  tolerance)     of  premarital     sex   and

       cohabitation following the invention of the birth control pills in the 1960s.



        Remember,   none   of   these   changes   is   likely   to   be   reversed   in   the   expected

       future. For this reason, it makes sense for us to see emerging adulthood as a

       new life stage rather than as a generational  shift that will soon shift again

       (Richardson, 2015).



Take   note   that   besides   the   four   factors  discussed   just   now,   there   are   two   other

factors that contributed to delayed adulthood too (refer to Figure 7.3). They are

described as follows:



(a)     Destabilising Behaviours

        These behaviours can be divided into two types:



(i)    Vicarious Influence

               Do you agree that young adults are more susceptible to the influence

              of   celebrities   rather   than   their   elders?   In   other   words,   they   tend   to

              follow celebrities. As Boon and Lomore (2006) said „adolescents often

              form     strong    attachments     to  figures    they   encounter     in  the   popular

              media.‰


Sports stars are also recognised as favourite celebrity role models for

              many young individuals. Athlete role models are known to influence

              adolescentsÊ behavioural intentions, especially with respect to relevant

              products (see Figure 7.4).



Figure 7.4: Christiano Ronaldo for Nike advertisement

Source: http://www.nike.com



With     respect   to  this,  results   of  relevant    research    replicated     locally

found      that   both   direct    and    vicarious    role   models     influence     the

              purchasing       intentions    and    behaviour     of  Malaysian      adolescents.     In

              fact,   the   findings    suggest    that   vicarious    role  models     play   a  more

              influential   role   then   the   direct   (parental)   role   models   (Cyril   de   Run,

              Butt & Chung, 2010).



Furthermore,   the   result   seems   to   be   at   odds   with   the   eastern   values

and     culture    believed    to   be  well   entrenched       among     Malaysians.

Probably, it may be the effect of the following:



?    Phenomenal   economic   growth   that   Malaysia   enjoyed   during   the

                  last three decades; or

?    Industrialisation and presumably westernisation of the Malaysian

                  society have somehow influenced the cultural values of emerging

                  adults.



(ii)    Impulsive Buying

What    does    impulsive     buying    refer  to?   Impulsive     buying    refers   to

purchases   of   goods   and   services   that   one   had  not   planned   to   buy.

Traditionally,   impulse   buying   occurs   in   stores   as   a   result   of  display

strategies and personal selling strategies employed by retailers.



Let us reflect on the following two scenarios (refer to Table 7.3).



Table 7.3: Two Scenarios for Your Reflection



Scenario                                          Description



Scenario     Have   you   experienced   buying   candy   and   chocolates   that   you   have   never

    A        planned to buy? However, you simply bought them upon noticing them at

             the cashier while you were about to pay for things that you had planned to

             purchase (see Figure 7.5).



                                         Figure 7.5: Checkout counter

                                    Source: http://www.novograf.co.uk

 



 Scenario          Have you experienced buying things online and while you are doing so, your

      B            attention   was   directed   to   a   display   „customers   who   purchase   what   you   are

                   purchasing also purchase these‰ (refer to Figure 7.6).



Figure 7.6: Online shopping strategy

Source: http://www.lazada.com.my



          What   can   you   conclude   about   these   two   scenarios?   Well,   for   Scenario   A,

          retailers are emulating the display strategies and personal selling strategies

          of „brick and mortar‰ retailers. As for Scenario B, beware of buying things

          you have never planned to but impulsively did so because you have been

          prompted.



(b)       Potent Force

           The      last    factor       for    our      discussion          is    potent        force.      Did      you      realise       that

          Generation   Y   is   also   considered   a   potentially   large   labour   force?   In   fact,

          they       are     capable         of    forming          a    pattern        of    socio-economic                development

          among various generations of a pluralistic society. Furthermore, they live in

          a world of technology and the Internet.



           Therefore, they always want something challenging and do not wish to be

          bored   with   the   same   daily   routine.  They   have   their   own   favourite   social

          activities   and   most   of   them   live   in   a   world   where   they   can   connect   and

          interact         in    a   global       borderless           way       (Alwi,        Amir        Hashim          &     Ali,    2015).

          Currently, Generation Y dominate more than 50% of the workforce or about

          21% of MalaysiaÊs 29 million population (PriceWaterhouseCoopers, 2015).

             

ACTIVITY 7.3



1.    „Emerging adulthood is a new life stage in oneÊs life cycle.‰ What

             do you think of this statement? Discuss the distinctive features of

             this „new life stage‰ and their implications on individualsÊ strive

             for financial wellness.

2.    Read the following article and discuss in groups:



              The Malaysian Insider (15 October 2015), Malaysia Gen Y in debt,

             living on the edge, survey reveals at http://goo.gl/Sb6dd7



7.3          ELEMENTS OF FINANCIAL WELLNESS



Now let us move on to identify the elements of financial wellness. It is hoped that

by the end of this subtopic, you will be able to understand them better.



Firstly,   look   at  this  finding  from    Financial   Finesse   (2013)   taken   from    Yahoo

Finance website.



62%     of  those   surveyed    who    are  under   30,   report   that  they   have   „some‰

financial stress, and another 15% say that they have „high‰ or overwhelming

levels of financial stress.



How   do   we   relate   financial   stress   with   financial   wellness?   Well,   let   us   look   at

financial wellness first. What does financial wellness mean? Simply put, financial

wellness   may   be   defined   as   a   state   of   being   wherein   a   person   can  fully   meet

current and ongoing financial obligations, feel secure about their financial future

and is able to make choices that allow him or her to harvest lifeÊs enjoyment.



In   addition,   financial   wellness   is   based   on   a   continuum   ranging   from   severe

financial   stress   to   being   highly   satisfied   with   oneÊs   financial   condition.   Some

people may seem to have, and feel they have, a high level of financial wellness

even though they may seem far from affluent.



On the other hand, some who seem wealthy may not appear to have, or feel they

enjoy, a high level of financial well-being.



The    goals    and   vision    of  a  satisfying   life   differs   greatly   among      individuals.

However,   there   are  two   common   themes   that   come   up   consistently  security

and    freedom      of  choice    whether     in  the   present    or  in  the   future    (Consumer

Financial Protection Bureau, 2015).



Now let us redirect our attention to the elements of financial wellness. There are

four elements of financial wellness as shown in Figure 7.7.



Figure 7.7: Four elements of financial wellness



These four elements are further described as follows:



(a)    Having Control Over Day-to-Day, Month-to-Month Finances

        Individuals who at of a relatively high level of financial well-being feel in

       control   of   their   day-to-day   financial  life.   These   individuals   manage   their

       own finances are able to cover expenses and pay bills on time, and do not

       worry about not having enough money to go by.



(b)    Having the Capacity to Absorb a Financial Shock

        Individuals   who   are   at   a   relatively   high   level   of   financial   well-being   also

       have the capacity to absorb a financial shock. They are able to cope with the

       financial challenges of unforeseen life events.



(c)    Being on Track to Meet Financial Goals

        Individuals experiencing financial well-being are also said to be on track to

       meet   their   financial   goals.   They   have   a   formal   or   informal   financial   plan

       and   actively   work   towards   goals   such   as   saving   to   buy   a   car   or   home,

       paying off student loans, or setting aside funds for retirement.



(d)     Having the Financial Freedom to Make Choices to Enjoy Life

        Finally,   individuals     experiencing     financial   well-being     are   able  to  make

       choices that allow them to enjoy life. They can splurge once in a while. They

       can afford „wants‰ such as being able to go out to dinner or take a vacation,

       meeting   their   „needs‰   and   they   are   able   to   make   choices   such   as   to   be

       generous toward their friends, family and community.



How   do   we   relate   these   four   elements  to   the   two   common   themes   of   financial

wellness? Well, let us look at Table 7.4 for the answer.



  Table 7.4: Relationship between Common Themes and Elements of Financial Wellness



Theme              Present                    Future



Security                  Control over your day-to-day,             Capacity to absorb a

                         month-to-month finances                    financial shock



Freedom of choice          Financial freedom to make choices        On track to meet financial

                          to enjoy life                             goals



Source: Ratcliffe (2015)



Now, how do we balance this? Well, let us look at Figure 7.8 for an answer.



Figure 7.8: Live by a budget to achieve financial wellness



Here are some suggestions on what you should do specifically:



(a)     Sign up for a retirement plan;



(b)     Automate your savings;



(c)     Establish a „freedom fund‰;



(d)     Pay off your debts;



(e)     Put your goals in writing;



(f)     Track your own credit score (keep old credit card open; pay your bills on

        time,   every   time;   avoid   full   utilisation   of   credit   card   eligibility;   and   keep

       below 30% of your available line of credit);



(g)     Understand your taxes; and



(h)    Manage your finances closely.



Table 7.5 gives you some dos and donÊts to improve your credit scores.



Table 7.5: Dos and DonÊts to Improve Your Credit Scores



                        Dos                                                    DonÊts



?   Pay your bills on time.                              ?  Do   not  be   afraid   of   credit.   Using   credit

                                                            wisely      is    important      to    becoming

?   Keep your credit card balance low.

                                                            financially successful.

?   Be patient.

                                                         ?  Avoid   extravagance.   Keep   to   the   basic

                                                            as    this  will  help    you   lay   a  stronger

                                                            overall     financial    foundation.      Go   for

                                                            luxury   when   you   are   more   financially

                                                            secure.



                                                         ?  Do    not   let  borrowings     get  you   down.

                                                            Some   critics   question   whether   a   study

                                                            loan    is  worth    it.  The   answer    is  yes.

                                                            Research   has   shown   that   an   education

                                                            loan will pay off over the course of your

                                                            career.



                                                         ?  Do not let jom jalan-jalan  interfere with

                                                            your   budget.   Be   sure   to   have   a   written

                                                            budget   to   help   keep   track   of   spending

                                                            and what you can afford to spend on.



                                                         ?  Be sensitive of your credit rating.



Source: PR Newswire (2015); DiGangi (2015)



SELF-CHECK 7.2



Explain what the elements of financial wellness are.



         



ACTIVITY 7.4



       Share   with   your   course   mates  whether   you   possess   the   elements   of

       financial wellness or not. Justify your answers.



 7.4          FINANCIAL FITNESS



Before we end this topic as well as this module, let us look at financial fitness.

Hopefully by the end of this subtopic, you will be able to evaluate your financial

fitness.   Let   us   begin   by   looking   at  the   findings   from   PriceWaterhouseCoopers

(2015).



 Over     the   years   employers     have    learned    that  improving      the  health    and

 wellness of their workforce yields benefits for both employers and employees

 alike.   Employers   enjoy   a   healthier   workforce      that   is   more   productive,   has

 fewer   absences   and   makes   fewer   demands   upon   employer-sponsored   health

 insurance.     Employees      benefit   from   improved      health   and    well-being,    and

 reduced medical expenses.



From these statements, we can conclude that financial wellness programmes can

educate     employees     about    the  financial   risks  they   face  and    provide    tools  to

manage those risks.



Therefore, workplace financial wellness must meet the following criteria in order

to be marketed as a financial wellness benefit (not to be confused with financial

education or financial advice) (Financial Finesse, 2014):



(a)    Unbiased  Free of sales pitches or conflict of interests;



(b)    Designed and delivered by qualified experts who have extensive financial

       planning experience;



(c)     Delivered as an ongoing process  Provide the support and accountability

        that   employees   need   to   make,   sustain   and   build   upon   positive   financial

        habit and behaviours;



(d)     Holistic     and   comprehensive         in   nature     Covers       all  aspect    of  financial

        planning from debt management to more advanced estate planning;



(e)     Personalised to the employee based on their specific needs;



(f)     Integrate   all   employee   benefits   With   guidance   on   how   employees   can

        most     effectively    manage      their   benefits    as  part   of  their   overall   financial

        plans; and



(g)    Offered as a benefit available to all employees.



Last   but   not   least,   below   are   five   elements   you   need   to   heed   in   your   financial

budget (see Figure 7.9).



Figure 7.9: Five elements of financial budget



That   marks   the   end   of   this   topic.   Hopefully,   you   have   gained   some   insightful

knowledge on health and wellness, and is now able to come up with a plan to

stay healthy and well (physically and financially). Remember, health is wealth!


ACTIVITY 7.5



1.      Evaluate    your    financial   wellness    by   answering     the   questions

       given.   Award   yourself   1   for   Yes   and   0   for   No.   Tally  your   score.

       Then, ponder over your result with your friends.



       (a)  Do you pay yourself first? Set aside a certain amount for                ?

            savings, retirement or investing before you do anything

            else.



       (b)  Do you save at least 10% of your income? Meaning that                    ?

            at   the   end   of   each   year,   you   must   have   set   aside   more

            than one month of your salary for the future.



       (c)  Have you set aside an emergency fund to cover at least                   ?

            three   monthsÊ   worth   of   expenses?   This   is   to   soften   the

            blow if any unpredictable event occurred.



       (d)   Do   you   know   the   exact   amount   of   your   debt   and   the   ?

            payables?



       (e)  Do      you    accelerate    the    payments      of   your    debt?     ?

            Remember,        debts    can   snowball     as   a  result   of  the

            compounding process.



       (f)  Do you have financial goals? Short, medium as well as                    ?

            long-term goals?



       (g)  Do you have a record keeping system?                                     ?



       (h)   Do you live within a budget?                                            ?



       (i)  Do you know your net worth?                                              ?



2.      Construct your budget for the current month. Make sure to list out

       all the items in your financial health evaluation.





?    Financial health is a term used to denote „the state of oneÊs personal financial

     situation.‰ There are many dimensions of financial health such as disposable

     income, savings and loan repayments.



?    Financial   fitness   is   just   like   physical   fitness;   one   has   to   do   things   in   certain

     ways   to   be   physically   fit.   Similarly,   in   order   to   be   financially   fit,   one   must

     handle     oneÊs    finances    in  a  proper     balanced     manner      managing         oneÊs

     expenses, savings, debts and others in a befitting manner.



?    The impact of a poor financial state can be compounded by widespread job

     losses, declining asset values, great drops in value of savings. These adverse

     phenomena can leave many in a state of financial distress.



?    Financial   distress   is   a   term   in   corporate   finance   which   describes   a   situation

     where a company fails to honour its promises to pay its creditors according to

     the agreed term of credit. If financial distress cannot be relieved, it may lead

     to bankruptcy.



?    Markers of adulthood refer to acquisition of social roles and responsibilities

     that   traditionally    mark    the   process    of   becoming    an   adult.   These   markers

     include the following:



         Leaving home;



         Entering the labour force market;



         Marrying or becoming a parent for the first time; and



         Assuming financial independence.



?    Challenges      confronting      the   emerging    adults     in  their   quest    for  financial

     wellness     can    be  categorised      into  economy       challenges.     Generation      Y  or

     Millennials (born after 1980) face more economic challenges than Generation

     X and Generation Y.



?    Emerging   adulthood   is   a   phase   in   oneÊs   life   span   between   adolescence   and

     full-fledged adulthood which is considered to be developmental in nature. It

     is   a   distinct   period   between   18   and  25   years   of   age   wherein   one   struggles

     with identity exploration, instability, self-focus and feeling in-between.



?   There are four elements of financial wellness:



        Having control over day-to-day, month-to-month finances;



        Having the capacity to absorb a financial shock;



        Being on track to meet financial goals; and



        Having the financial freedom to make choices to enjoy life.



?   Financial   wellness   programmes   can   educate   employees   about   the   financial

    risks they face and provide tools to manage those risks. This can help them to

    develop their financial fitness plan.



Adulthood                                      Financial shock



Baby boomers                                   Financial wellness



Emerging adulthood                             Generation X



Financial distress                             Generation Y



Financial fitness plan                         Make choices



Financial freedom                              Markers of adulthood



Financial goal                                 Millennials



Financial health                               Pecking order



Financial independence





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