Determinants of Personal Financial Literacy among Young Adults in Malaysian Accounting Firms

2019 ◽  
Vol 7 (1) ◽  
pp. 8-19
Author(s):  
Aik Myin Loh ◽  
Kwee Kim Peong ◽  
Kwee Peng Peong
Keyword(s):  
Young Adults ◽  
Financial Literacy ◽  
Pearson Correlation ◽  
Geographical Location ◽  
Financial Education ◽  
Well Being ◽  
Jel Classification ◽  
Family Characteristics ◽  
Financial Knowledge ◽  
Accounting Firms

Objective - In the twenty-first century, financial competencies are an essential tool in understanding the connection between financial behaviour and knowledge of individual financial problems. High financial knowledge may encourage young adults to carry less debt, increase their wealth and have a better financial retirement plan. According to Wolla (2017), less than one-third of youths have basic financial knowledge. This will have an impact to their lifelong financial well-being. Hence, this research intends to explore the personal financial literacy of young adults in Malaysian accounting firms. Methodology/Technique – The study examines 150 young working adults between the ages of 18-35 years old, working in accounting firms in Malacca, Malaysia. Stratified sampling and convenience sampling techniques were used to distribute questionnaires. Descriptive statistics, Pearson correlation coefficient and multiple regression analyses were also employed. Findings - The empirical findings show that geographical locations and family characteristics are significantly related to the personal financial literacy of young adults in accounting firms in Malacca. However, financial education and financial experience do not influence young adults in their financial decision making. Novelty – The results of this study suggest that the relevant authority should take an appropriate action to improve the financial well-being of young adults in Malacca, Malaysia. Type of Paper: Empirical. JEL Classification: M40, M41, M49 Keywords: Financial Literacy; Financial Education; Financial Experience; Family Characteristics; Geographical Location.

Subjective financial knowledge, prudent behaviour and income

2019 ◽  
Vol 37 (4) ◽  
pp. 934-950 ◽  
Author(s):  
Leonore Riitsalu ◽  
Rein Murakas
Keyword(s):  
Financial Literacy ◽  
Financial Education ◽  
Well Being ◽  
Financial Knowledge ◽  
Future Research ◽  
Objective Knowledge ◽  
Content Type ◽  
Subjective Knowledge ◽  
Subjective Financial Knowledge ◽  
Behaviour Score

Purpose The purpose of this paper is to study how subjective and objective knowledge of finance, behaviour in managing personal finances and socio-economic status affect financial well-being. Design/methodology/approach The financial well-being score is constructed in quantitative financial literacy survey data from Estonia as the arithmetic mean of four statements on a five-point scale. Four hypotheses are tested in multiple regression analysis. Findings Subjective knowledge has a stronger relation with financial well-being than objective knowledge. Financial behaviour score and income level correlate with financial well-being. Research limitations/implications The paper contributes to literature on financial literacy, subjective financial knowledge and financial well-being. In future research, psychological factors and future orientated financial well-being should be included, and their relationship to subjective well-being could be analysed further. Practical implications The results highlight the importance of subjective knowledge and sound behaviour for improving financial well-being. Providers of financial services should address these more in the design of their services and communication. Social implications Policymakers developing national strategies for financial education need to address subjective financial knowledge for increasing financial well-being in society. Originality/value Knowledge, behaviour and subjective knowledge have not been used simultaneously in the analysis of financial well-being in Europe before.

scholarly journals Multinomial Logistic Regression to Estimate the Financial Education and Financial Knowledge of University Students in Chile

Information ◽  
2021 ◽  
Vol 12 (9) ◽  
pp. 379
Author(s):  
Hanns de la Fuente-Mella ◽  
Benito Umaña-Hermosilla ◽  
Marisela Fonseca-Fuentes ◽  
Claudio Elórtegui-Gómez
Keyword(s):  
Financial Literacy ◽  
Multinomial Logistic Regression ◽  
Financial Education ◽  
Well Being ◽  
Economic Resources ◽  
Financial Knowledge ◽  
Degree Programs ◽  
Main Challenge ◽  
Level Of Knowledge ◽  
Criterion Development

All individuals face decisions during their lifetime that directly influence the economic well-being of their families. Therefore, financial education can be a fundamental tool to maximize our economic resources and use them wisely. A virtual survey was administered to 410 volunteer students belonging to a public university in southern Chile. The objective was to determine the level of financial knowledge and appreciation of financial education of future professionals. The most important results demonstrate a reality in which young people said they had the habit of saving and budgeting at home and were responsible for paying their bills on time. However, only a very small number of participants claimed having a superior level of knowledge regarding financial literacy. The main challenge for universities is to include this topic in the elective curriculum of all degree programs to promote financial criterion development that contributes to the comprehensive training and professional competencies of future graduates.

scholarly journals Investigating the level of financial literacy of university students

2017 ◽  
Vol 16 (3) ◽  
pp. 845-866 ◽  
Author(s):  
Israel José dos Santos Felipe ◽  
Harrison Bachion Ceribeli ◽  
Túlio Queiroz Lana
Keyword(s):  
Structural Equation Modeling ◽  
University Students ◽  
Financial Literacy ◽  
Structural Equation ◽  
Financial Education ◽  
Well Being ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Financial Attitudes

AbstractConsidering that the quality of financial decisions taken by individuals depends on their financial knowledge, abilities and attitudes, it is possible to state that the well-being of a population depends on how financially literate it is. In this context, the aim of this study was to measure the financial literacy level of university students in north of Mexico. The research method used was the survey and the data collected were analyzed using the structural equation modeling technique. As results, it was possible to confirm that financial attitudes of university students of north of Mexico influence their financial behavior. However, it was not confirmed that financial knowledge of these students impacts their financial behavior. As a high relationship between financial attitudes, financial behavior and financial knowledge of analyzed individuals was not found, it is concluded that the level of financial literacy of university students in the north of Mexico is low. It implies in the necessity to invest in financial literacy programs that could help this population to better manage their resources, what would certainly impact on its savings and consumption decisions, and retirement planning.Keywords: Financial Literacy. Financial Education. Structural Equation Modeling. Mexican Students. Investigando o nível de alfabetização financeira de estudantes universitários ResumoConsiderando que a qualidade das decisões financeiras tomadas pelos indivíduos depende de seus conhecimentos, habilidades e atitudes financeiras, é possível afirmar que o bem-estar de uma população depende do quão financeiramente alfabetizada ela é. Neste contexto, o objetivo deste estudo foi mensurar o grau de alfabetização financeira dos estudantes universitários do norte do México. O método de pesquisa utilizado foi a survey e os dados coletados foram analisados por meio da técnica de modelagem de equações estruturais. Como resultados, foi possível confirmar que as atitudes financeiras dos universitários do norte do México influenciam seu comportamento financeiro. Todavia, não se confirmou que o conhecimento financeiro desses estudantes impacta seu comportamento financeiro. Como não se encontrou uma forte relação entre os conhecimentos, atitudes e comportamentos financeiros dos indivíduos analisados, conclui-se que o nível de alfabetização financeira dos estudantes universitários do norte do México é baixo. Isso implica na necessidade de investir em programas de alfabetização financeira para auxiliar essa população a melhor gerir seus recursos, o que certamente irá impactar em suas decisões de poupança e consumo, assim como em seu planejamento de aposentadoria.Palavras-chave: Alfabetização financeira. Educação financeira. Modelagem de equações Estruturais. Estudantes mexicanos.

scholarly journals Relationship between Financial Literacy and Its Component: A Research on Working Women

2019 ◽  
pp. 1-6 ◽  
Author(s):  
Nur Najihah Binti Ashaari ◽  
Zahayu Binti Md. Yusof
Keyword(s):  
Correlation Coefficient ◽  
Significant Relationship ◽  
Financial Literacy ◽  
Pearson Correlation ◽  
Working Women ◽  
Financial Education ◽  
Debt Management ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Pearson Correlation Coefficient

Developing countries, such as Malaysia, are in need of working women to help to improve the country's economy. Thus, it is of immense need for our economy to take into consideration the fact that where and how working women are spending or investing their funds. For appropriate utilization of funds, working women need to be financially literate. Financial literacy is the convergence of financial, credit and debt management and the knowledge that is necessary to make financially responsible decisions. This paper is conducted to assess the correlation between financial literacy and its component namely financial education, financial attitude, financial behavior and financial knowledge. Data processing of this study using a Pearson correlation coefficient and the sample size of 35 respondents which is working women in Universiti Utara Malaysia. A part from Pearson correlation coefficient, include descriptive statistics of frequency counts and percentages as a methid of data analysis employed in this study. The data are quantitatively analyzed through statistical software namely, Statistical Packages for Social Science (SPSS) version 25.0. The result indicates that financial literacy does not have a significant relationship with financial knowledge. However financial education, financial attitude and financial behavior together have a significant relationship with financial literacy.

scholarly journals Financial Education of Russians: Classification of Target Groups

2020 ◽  
Vol 16 (2) ◽  
pp. 42-50
Author(s):  
Natal’ya V. Alikperova
Keyword(s):  
Financial Market ◽  
Russian Federation ◽  
Low Income ◽  
Financial Literacy ◽  
Financial Education ◽  
Well Being ◽  
Financial Knowledge ◽  
Target Groups ◽  
The Russian Federation

The Object of the Study. The population of the Russian Federation divided into target groups. The Subject of the Study. Financial education of Russians, taking into account the characteristics of various target groups. The Purpose of the Study. Clarification of target groups of Russian citizens for the implementation of the financial education strategy. The Main Provisions of the Article. In today's reality, financial literacy is becoming a necessary skill for personal and social well-being. In the conditions of active development of the financial market, increasing financial literacy of the population provides citizens with the opportunity not only to effectively use various financial products and services, make profitable economic decisions, but also to be full participants in the entire socioeconomic system of the state. However, currently there is a fairly low level of financial literacy of Russians, and this trend is observed from year to year, due to the complexity of the financial market as a whole, an erroneous idea of the essence of certain concepts, and as a result, the construction of financial strategies in accordance with this understanding, and this may indirectly indicate the inefficiency of the current system for improving financial literacy of Russian citizens. To implement the strategy of improving financial literacy of the population, first of all, it is necessary to clearly understand who will receive the training. It is a well-thought-out classification of target groups that is the basis for building a system of financial education, forming a methodological basis, training specialists to broadcast financial knowledge and creating educational channels. According to the author, it is recommended to clarify and supplement the existing classification of target groups, approved by the current strategy for improving financial literacy in the Russian Federation for 2017-2023, by including such categories of citizens as preschoolers, citizens with disabilities, vulnerable segments of the population (orphans, children in orphanages and boarding schools), as well as to clarify the current structure of the "adult population" group, dividing it into low-income citizens and families, and citizens with medium and high incomes (including families). In addition, it is recommended to divide each target group by the level of available financial knowledge and skills, which will allow you to create a targeted, personalized, thoughtful training system that promotes financial literacy, awareness as well as evaluate the results of such training.

scholarly journals Impact of Financial Literacy and Parental Socialization on the Saving Behavior of University Level Students

2018 ◽  
Vol 4 (2) ◽  
pp. 133-140
Author(s):  
Junaid Afsar ◽  
Ghulam Mujtaba Chaudhary ◽  
Zafar Iqbal ◽  
Muhammad Aamir
Keyword(s):  
Financial Literacy ◽  
Pearson Correlation ◽  
Financial Education ◽  
Financial Knowledge ◽  
Primary Data ◽  
Parental Socialization ◽  
Collection Method ◽  
Saving Behavior ◽  
University Level ◽  
The Impact

This is an explanatory study on the impact of financial literacy and parental socialization on the saving behavior of university level students. Using primary data collection method, 400 questionnaires were distributed to the students of universities across Pakistan. Pearson correlation and multiple regression analysis are employed by using SPSS. Our results demonstrate that financial literacy and parental socialization positively influence the saving behavior of students. Our result revealed that the students who have financial literacy exhibit more saving behavior as compared to others who do not have financial knowledge. It is also concluded that the student willingness to save increased due to receiving financial education from their parents.

Australian women with good financial knowledge fare better in divorce

2021 ◽  
pp. 031289622110220
Author(s):  
Tracey West ◽  
Elizabeth Mitchell
Keyword(s):  
Financial Literacy ◽  
Positive Impact ◽  
Financial Education ◽  
Jel Classification ◽  
Financial Knowledge ◽  
Financial Decisions ◽  
Financial Decision Making ◽  
Financial Decision

Divorce dissolves couple households, who likely specialised in household financial decision-making tasks, into singles who need to learn new skills. Financial decisions will be particularly challenging for those newly separated people that are lacking knowledge and confidence. Given the substantive literature supporting the lack of financial knowledge of women in comparison to men, women are likely to be more disadvantaged by this aspect of divorce. We employ the HILDA Survey and find support for the role of financial literacy in improving wealth outcomes in divorce, particularly for women. We find that the positive impact is significant over the long term. This research contributes to knowledge of the role of financial education in building resilience to endure financial shocks. JEL classification: D14; G53; G50; J12; J16

scholarly journals Personal Financial Management Behaviors during the Covid-19 Pandemic: Evidence from Vietnam.

2021 ◽  
Vol 7 (04) ◽  
Author(s):  
LE Thanh Tam ◽  
Nguyen Thi Ha Trang ◽  
Ngo Thi Ngoc Anh ◽  
Ngo Thi Thu Mai
Keyword(s):  
Financial Management ◽  
Pearson Correlation ◽  
Financial Education ◽  
Well Being ◽  
Financial Knowledge ◽  
Management Behavior ◽  
Factors Affecting ◽  
Management Capability ◽  
Management Capacity ◽  
Management Behaviors

This paper is aimed at investigating the factors affecting personal financial management behaviors in Vietnam during the Covid-19 pandemic. With data of interviewing online 477 individuals, the research team used the reliability test with Cronbach’s Alpha, exploratory factor analysis (EFA), Pearson correlation analysis’s results, and linear OLS model. The key findings are: First, four factors have strong impacts on personal financial management behavior are: (i) Covid-19 pandemic; (ii) Financial habits from parents; (iii) Financial education from parents; (iv) Financial well-being. Of which, the factor of socialization has been separated in to “financial habits from parents”, and “financial education from parents”. Second, differently from previous studies, two variables of financial knowledge and financial attitude have no impact on personal financial management behavior. These differences come from the special characteristics of Vietnam culture: First, parents are the main financial sources for the youth, and also the model of financial management for children. Second, as financial management capacity building courses are not much available in Vietnam, people depend on family own’s experiences to build up their financial management behaviors. Basing on the results, the recommendations are focusing on improving financial management capability of parents in order to improve individual financial management capacity.

Living beyond one’s means: evidence from Malaysia

2015 ◽  
Vol 43 (1) ◽  
pp. 2-18 ◽  
Author(s):  
Yiing Jia Loke
Keyword(s):  
Low Income ◽  
Financial Literacy ◽  
Financial Distress ◽  
Financial Management ◽  
Practical Knowledge ◽  
Financial Education ◽  
Financial Knowledge ◽  
Content Type ◽  
Explanatory Variables ◽  
Financial Behaviour

Purpose – The purpose of the paper is to identify the determinants of the probability of living beyond one’s means. The paper also explores the coping mechanisms of those financially distressed as well as the debt taking behaviour of consumers. Design/methodology/approach – The study uses data obtained from the OECD International Network on Financial Education pilot study on Measuring Financial Literacy in 2010 for the case of Malaysia. A logistic regression model is used to identify the main determinants of the probability that a consumer will live beyond his/her means. The analysis is carried out by using a set of socio-economic factors and the individual’s financial behaviour and attitudinal characteristics as explanatory variables. Findings – The findings indicate that low income and seasonal income earners are more vulnerable to financial distress. Furthermore, having a higher education, higher financial knowledge and prudent financial behaviour and attitude do not necessarily translate into better financial management. Family and friends provide the main source of financial assistance in times of need. Research limitations/implications – The assessment of financial knowledge should go beyond individual’s knowledge on financial concepts and theories. Practical knowledge on financial and cash flow management should be assessed. Practical implications – The study reiterates the importance of financial education. It is imperative to include financial education as part of the schools’ curriculum and also to be incorporated as part of the Continuous Professional Development modules for working adults. Originality/value – The study is based on the first nationwide study of consumer finances in Malaysia. It contributes to the literature by integrating financial behaviour and attitudinal factors into the analysis of the ability of individuals to live within their means. The findings also show the limitations of the existing self-assessment of financial behaviour and attitude and the assessment of financial knowledge.

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