scholarly journals DOES FINANCIAL LITERACY REALLY MATTER FOR MALAYSIANS? A REVIEW.

2020 ◽  
Vol 2 (2) ◽  
pp. 13-20
Author(s):  
Nor Izzati Mohd Aziz ◽  
Salina Kassim
Keyword(s):  
Financial Literacy ◽  
Financial Management ◽  
Ad Hoc ◽  
National Level ◽  
Financial Education ◽  
Debt Management ◽  
Financial Knowledge ◽  
Management Research ◽  
Current Scenario ◽  
Education Network

Malaysians lack financial literacy but are generally unaware of the fact. The national level of financial literacy measured in terms of financial knowledge is still low among Malaysians. A survey by the Credit Counselling and Debt Management Agency (AKPK) found that 1 out of 3 Malaysians rated themselves as having a low level of confidence about financial management. Research on the issue has made some attempt to examine the cause of lower financial literacy and its effects on decision making, but studies have been limited. This paper examines studies on the topic compiled between the years 2017 and 2019 and some surveys made by organizations in Malaysia to see the current scenario of financial literacy in Malaysia. Up to the present, it is clear that current approaches and strategies toward financial literacy have been ad-hoc. The latest initiative from the Financial Education Network concerned with empowering financial literacy is the National Strategy for Financial Literacy 2019-2023. Each of the organizations involved is committed to improving financial literacy among Malaysian by organizing financial education initiatives such as carnivals, clubs, and seminars. The present study will benefit other researchers and maybe a reference for any organizations that will benefit from the updated statistics and information.

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.

scholarly journals Personal financial literacy and personal debt management: The potential relationship with new venture creation

2008 ◽  
Vol 1 (1) ◽  
pp. 35 ◽  
Author(s):  
Liezel Kotzé ◽  
Prof A.v.A Smit
Keyword(s):  
Financial Literacy ◽  
Financial Education ◽  
Debt Management ◽  
Financial Knowledge ◽  
New Venture ◽  
Entrepreneurial Activity ◽  
New Venture Creation ◽  
Key Words And Phrases ◽  
Venture Creation ◽  
Personal Savings

<p>Prior research shows that personal savings are one of the most important financial sources for start-ups of entrepreneurial firms. The lack of personal savings and seeming shortage of financial knowledge could contribute to the low incidence of new venture creation, and the high failure rate amongst South African entrepreneurs. This paper investigates the perceptions of 286 Business Management students with a minimum of three years’ working and management experience, regarding both their financial literacy and their need and desire for financial education. The outcomes of the study show the necessity for financial education and financial literacy in South Africa. The respondents showed a lack of confidence in their money management skills and expressed a desire for more financial knowledge. It is possible that an increased level of financial literacy could lead to more entrepreneurial activity and a decrease in new venture failures.</p><p> </p><p><strong>Key words and phrases:</strong> personal financial literacy, personal debt, personal savings, personal financial management, new venture creation</p>

scholarly journals THE INFLUENCE OF SOCIO-DEMOGRAPHIC AND FINANCIAL KNOWLEDGE FACTORS ON FINANCIAL MANAGEMENT PRACTICES OF MALAYSIANS

2017 ◽  
Vol 18 (1) ◽  
Author(s):  
Yiing-Jia Loke
Keyword(s):  
Financial Literacy ◽  
Financial Management ◽  
Management Practices ◽  
Financial Education ◽  
Financial Knowledge ◽  
Insurance Policy ◽  
Management Behaviour ◽  
Income Shock ◽  
The Individual ◽  
Socio Economic Factors

Using the pilot survey data on "Measuring financial literacy" in 2010 from OECD (International Network for Financial Education, INFE), this paper aims to investigate the influence of sociodemographic and financial knowledge factors on four selected financial management practices of Malaysians. The four types of financial management practices are: whether the individual plans a budget, lives within their means, is prepared for income shock and owns an insurance policy. These four financial management practices are used to measure individuals' overall financial management behaviour. The measurement of financial management behaviour is divided into three levels depending on the type of financial management practices carried out by individuals. Ordered probit is used to determine socio-economic factors that are significant in explaining the varying differences in the financial management behaviours among Malaysians. The paper also identifies the financial knowledge gaps and investigates the levels of financial knowledge of Malaysians. While the majority of Malaysians show an average level of financial knowledge and plan their budget, many are financially unprepared for income shock and unexpected circumstances. The findings show that ethnicity, income, gender, regularity of income, education, age and financial knowledge have significant effect on individuals’ financial management behaviour. The findings have implications for regulators, financial educators and consumer groups in their efforts to enhance individuals’ financial management behaviour. Keywords: Emergency Saving; Financial Capability; Financial Knowledge; Living within One's Means; Personal Finance.

Some Aspects about Financial Knowledge of Undergraduate Students

2013 ◽  
Vol 2 (4) ◽  
pp. 40-62
Author(s):  
Elena Moreno-García ◽  
Arturo García-Santillán ◽  
Juan Pablo Munguía-Tiburcio
Keyword(s):  
Learning Styles ◽  
Undergraduate Students ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Management ◽  
Principal Component ◽  
Financial Education ◽  
Financial Knowledge ◽  
Important Indicator ◽  
Financial Issues

The purpose of study is to measure the level of financial literacy of accounting students at the Universidad Veracruzana; campus Mocambo, considering that financial education is the knowledge that people have on financial issues in order to solve everyday problems regarding financial management. The variables analyzed include age, gender, race, socioeconomic status, learning styles and student’s perceptions on financial services, the way they take care of their money and their knowledge of five key financial issues. Three hypotheses were raised, therefore, in order to test H1 we performed a factorial analysis with an extracted principal component; to H1.a the statistical procedure of linear correlation of Pearson r and t test are applied, and to H2 a Z test is performed. Although the theory suggests that the level of higher education gives the student a better understanding of the financial issues, this research however, proves otherwise. In fact, the range of “excellent money management” is below 50%. The findings suggest that there is no a good level of financial literacy in the population studied. This fact is contrary to expectations, because the student who studies public accountant is expected to have financial knowledge in these subjects, all this, in considering the subjects which integrates the curriculum related to the field of finance. Therefore this finding should be an important indicator for the academic authorities of the Universidad Veracruzana for corrective actions in this respect.

scholarly journals KARAKTERISTIK SOSIAL EKONOMI YANG MEMPENGARUHI LITERASI KEUANGAN SERTA DAMPAKNYA TERHADAP MANAJEMEN KEUANGAN PERSONAL (Survei Pada Pegawai Negeri Sipil Daerah di Kabupaten Kuningan)

2017 ◽  
Vol 1 (02) ◽  
Author(s):  
Herma Wiharno
Keyword(s):  
Financial Literacy ◽  
Financial Management ◽  
Financial Education ◽  
Civil Servants ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Sample Collection ◽  
Socioeconomic Characteristics ◽  
Units Of Analysis ◽  
Education Levels

The purpose of this study was to assess the socioeconomic characteristics that influence financial literacy and the influence of financial literacy towards personal financial management. The financial literacy in this study was divided into dimensions of financial literacy, financial behavior, and financial attitudes.The method used is descriptive and verificative methods. This research was conducted in the Kuningan Regency, and the Regional Civil Servants were the units of analysis. The samples used in this study were 390 Regional Civil Servants with the sample collection technique of proportional stratified cluster random sampling.The results of the verificative analysis revealed that only education levels significantly affect the financial knowledge, while having a significant effect on the behavior and attitudes in addition to the level of financial education is also a place to stay. Financial knowledge, financial behaviors, and financial attitudes significantly influence towards the personal financial management. In relation between socioeconomic characteristics with personal financial management, education level only that significant effect on personal financial management.

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 Malaysian Undergraduates Financial Literacy and Financial Education: a Study in Universiti Utara Malaysia

2018 ◽  
Vol 7 (3.30) ◽  
pp. 325
Author(s):  
Logasvathi Murugiah ◽  
. . ◽  
. .
Keyword(s):  
Social Media ◽  
Social Network ◽  
Financial Literacy ◽  
Financial Education ◽  
Debt Management ◽  
Financial Knowledge ◽  
First Year ◽  
Budget Planning ◽  
Literacy Knowledge ◽  
Universiti Utara Malaysia

Financial literacy is becoming increasingly important not only for investors but also for individual in planning his or her day to day budget. Hence, recent development in financial education has highlighted the increasingly important to be financial healthy. Hence, the objectives of this study are (i) to investigate the level of UUM undergraduates’ in financial literacy and (ii) to assess UUM undergraduates’ preferable method in learning financial education. Questionnaires were distributed to 400 undergraduate in UUM, age ranging 20 to 28 years old in 2017. The finding of this study revealed that female have a better saving knowledge compare to male respondents. Furthermore, this study concluded that first year undergraduate’s saving knowledge is slightly better. Meanwhile, final year undergraduates are better in spending and budgeting knowledge. Besides, business programme undergraduate showcase a good financial literacy knowledge. This study also find that preference method in learning financial knowledge are website / internet / online followed by workshop / seminar / talks / conferences and finally social network / social media. Meanwhile, preferable personal financial topic that undergraduate would like to enroll and learn are budget planning or expenses management, followed by debt management and lastly about insurance.  

scholarly journals Some Insights Into Financial Literacy Among Undergraduate Students: A Case of Bosnia and Herzegovina

2021 ◽  
Vol 12 (3) ◽  
pp. 103
Author(s):  
Jasmina Okicic ◽  
Meldina Kokorovic Jukan ◽  
Mensur Heric
Keyword(s):  
Undergraduate Students ◽  
Financial Literacy ◽  
Sampling Technique ◽  
Financial Education ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Financial Attitudes ◽  
Significant Difference ◽  
Financial Behaviour ◽  
The Relationship

The purpose of this research is to provide some insights into financial literacy among undergraduate students focusing primarily on the relationship between financial knowledge, financial attitudes and financial behavior and on possible gender and financial education gap in financial literacy. Using the purposive sampling technique, data collection was carried out from April to June 2020, yielding a sample of 1,046 valid responses. To gain a better understanding of the relationship between financial behaviour, financial attitudes and financial knowledge, we, primarily, use exploratory factor analysis and multiple regression model. The research findings have revealed several important issues. First, findings have suggested that financial knowledge, financial attitudes and gender may be considered as an antecedent of the financial behaviour of undergraduate students. Second, findings have also suggested a statistically - significant difference between the financial literacy of undergraduate students concerning their exposure to formal financial education.

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 Financial Attitudes and Behaviors of Internal Medicine and Internal Medicine–Pediatrics Residents

2018 ◽  
Vol 10 (6) ◽  
pp. 639-645 ◽  
Author(s):  
Rachel Wong ◽  
Patricia Ng ◽  
John Bonino ◽  
Alda Maria Gonzaga ◽  
Alexandra E. Mieczkowski
Keyword(s):  
Internal Medicine ◽  
Financial Planning ◽  
Financial Management ◽  
Financial Education ◽  
Personal Finance ◽  
Financial Knowledge ◽  
Financial Industry ◽  
Financial Attitudes ◽  
Attitudes And Practices ◽  
Educational Debt

ABSTRACT Background Residents graduate from medical school with increasing levels of debt and also may possess poor financial knowledge and practices. Prior studies have assessed resident financial knowledge and interest in financial education, yet additional information regarding their attitudes about personal finance and financial planning could be essential for the development of relevant curricula. Objective We assessed baseline financial attitudes and planning behaviors of internal medicine and internal medicine–pediatrics residents in 3 geographically diverse academic programs. Methods A modified version of the Financial Industry Regulatory Authority National Financial Capability survey was administered anonymously to residents in 3 programs in spring 2017. Outcomes included levels of educational debt, positive financial planning behaviors, perception of finances and debt, and education about personal finance. Results Response rate was 62% (184 of 298). Rates of educational debt were high, with 81% (149 of 184) of respondents reporting educational debt, and the majority owing more than $100,000. Residents' financial practices were variable, and residents could be grouped into 1 of 3 categories—concerned-engaged, concerned-unengaged, and unconcerned-unengaged—based on their engagement with debt and financial management. Residents with high debt (&gt; $250,000) had a bimodal distribution of respondents who strongly agreed and those who strongly disagreed they were concerned about debt. Conclusions Resident financial attitudes and practices are variable, ranging from highly engaged residents actively managing their financial wellness to unengaged residents who have low concern, despite high educational debt.

Sign in / Sign up

Export Citation Format

Share Document