Financial Literacy and Financial Behaviour in Four Different Age Groups in Malaysia
DOI:
https://doi.org/10.33736/uraf.5248.2022Keywords:
Financial literacy, financial behaviour, age groups, MalaysiaAbstract
The goal of this research was to look at the association between financial literacy and financial behaviour in different age groups. Financial literacy was judged by the number of accurate answers from questions that required the respondent to calculate and also was based on the respondents' responses on a scale of 1 to 5. The age groupings were as follows: 13–19, 20–39, 40–59, and 60 and over. Long-term financial behaviour included retirement saving and investment, whereas short-term financial behaviour included expenditure and emergency savings. The data was gathered from a sample of 300 respondents through a survey method. It was analysed using Ordered Logistic Regression. The findings are broadly similar with those of other investigations. However, some of the results may differ due to its geographical boundaries, sample size, and research design. This research demonstrates policymakers and financial practitioners with a detailed financial assessment of various age groups, along with valuable insights.
References
Adzis, A. A., Bakar, J. A., & Shahar, H. K. (2017). Factors influencing young adults’ debt in Malaysia. Journal of Business & Retail Management Research, 12(01). https://doi.org/10.24052/jbrmr/v12is01/fiyadim
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-t
Athirah, M. (2020, October 13). Financial literacy among youth alarmingly low. New Straits Times. https://www.nst.com.my/opinion/letters/2020/10/631937/financial-literacy-among-youth-alarmingly-low
Chen, H. (1998). An analysis of personal financial literacy among college students. Financial Services Review, 7(2), 107–128. https://doi.org/10.1016/s1057-0810(99)80006-7
Choudhary, K., & Kamboj, S. (2017). A Study of Financial Literacy and Its Determinants: Evidence from India. Asian Journal of Accounting Perspectives, 10(1), 52–72. https://doi.org/10.22452/ajap.vol10no1.4
Cunningham, G. B., & Kwon, H. (2003). The theory of planned behaviour and intentions to attend a sport event. Sport Management Review, 6(2), 127–145. https://doi.org/10.1016/s1441-3523(03)70056-4
de Bassa Scheresberg, C. (2013). Financial Literacy and Financial Behavior among Young Adults: Evidence and Implications. Numeracy, 6(2). https://doi.org/10.5038/1936-4660.6.2.5
Dewi, V. I., Febrian, E., Effendi, N., Anwar, M., & Nidar, S. R. (2020). Financial literacy and its variables: The evidence from Indonesia. Economics & Sociology, 13(3), 133–154. https://doi.org/10.14254/2071-789x.2020/13-3/9
Emily, M. (2020). Young Adult Financial Literacy and Its Underlying Factors. Honors Theses, 64.
Fernandes, D., Lynch, J. G., & Netemeyer, R. G. (2014). Financial Literacy, Financial Education, and Downstream Financial Behaviors. Management Science, 60(8), 1861–1883. https://doi.org/10.1287/mnsc.2013.1849
Fong, J. H., Koh, B. S., Mitchell, O. S., & Rohwedder, S. (2021). Financial literacy and financial decision-making at older ages. Pacific-Basin Finance Journal, 65, 101481. https://doi.org/10.1016/j.pacfin.2020.101481
Hasibuan, B. K., Lubis, Y. M., & HR, W. A. (2018). Financial Literacy and Financial Behavior as a Measure of Financial Satisfaction. Proceedings of the 1st Economics and Business International Conference 2017 (EBIC 2017). https://doi.org/10.2991/ebic-17.2018.79
Henager, R., & Cude, B. J. (2016). Financial Literacy and Long- and Short-Term Financial Behavior in Different Age Groups. Journal of Financial Counseling and Planning, 27(1), 3–19. https://doi.org/10.1891/1052-3073.27.1.3
Henager, R., & Cude, B. J. (2019). Financial Literacy of High School Graduates: Long- and Short-Term Financial Behavior by Age Group. Journal of Family and Economic Issues, 40(3), 564–575. https://doi.org/10.1007/s10834-019-09626-2
Herawati, N. T., Candiasa, I. M., Yadnyana, I. K., & Suharsono, N. (2018). Factors That Influence Financial Behavior Among Accounting Students in Bali. International Journal of Business Administration, 9(3), 30. https://doi.org/10.5430/ijba.v9n3p30
Jariah, M., Husna, S., Tengku Aizan, T. A. H., & Rahimah, I. (2012). Financial Practices and Problems amongst Elderly in Malaysia. SOCIAL SCIENCES & HUMANITIES, 20(4), 1065–1084.
Kim, H. H., Maurer, R., & Mitchell, O. S. (2018). Cognitive Ability, Financial Literacy, and the Demand for Financial Advice at Older Ages: Findings from the Health and Retirement Study. TIAA Institute Research Dialogue.
Kumar, S., Watung, C., Eunike, J., & Liunata, L. (2017). The Influence of Financial Literacy Towards Financial Behavior and its Implication on Financial Decisions: A survey of President University Students in Cikarang - Bekasi. Semantic Scholar.
Lewis, M. (2008). THE FINANCIAL LITERACY OF YOUNG AMERICAN ADULTS. 2008 JumpStart Financial Literacy Survey.
Lusardi, A., Mitchell, O. S., & Oggero, N. (2020). Understanding Debt in the Older Population. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3537858
Mokhtar, N., Sabri, M. F., & Ho, C. S. F. (2020). Financial Capability and Differences in Age and Ethnicity. The Journal of Asian Finance, Economics and Business, 7(10), 1081–1091. https://doi.org/10.13106/jafeb.2020.vol7.no10.1081
OECD. (2012). Pisa 2012 Financial Literacy Assessment Framework. Australian Council for Educational Research. https://www.oecd.org/pisa/pisaproducts/46962580.pdf
Pratkanis, A. R., Breckler, S. J., & Greenwald, A. G. (1989). Attitude Structure and Function (1st ed.) [E-book]. Psychology Press.
Rahman, M., Isa, C. R., Masud, M. M., Sarker, M., & Chowdhury, N. T. (2021). The role of financial behaviour, financial literacy, and financial stress in explaining the financial well-being of B40 group in Malaysia. Future Business Journal, 7(1). https://doi.org/10.1186/s43093-021-00099-0
Satsios, N., & Hadjidakis, S. (2018). Applying the Theory of Planned Behaviour (TPB) in Saving Behaviour of Pomak Households. International Journal of Financial Research, 9(2), 122. https://doi.org/10.5430/ijfr.v9n2p122
Sekaran, R. (2021, November 24). Over half a million PTPTN borrowers yet to repay loans. The Star. https://www.thestar.com.my/news/nation/2021/11/24/over-half-a-million-ptptn-borrowers-yet-to-repay-loans
Selvadurai, V., Kenayathulla, H. B., & Siraj, S. (2018). Financial Literacy Education And Retirement Planning In Malaysia. Malaysian Online Journal of Educational Management, 6(2), 41–66. https://doi.org/10.22452/mojem.vol6no2.3
Shim, S., Serido, J., Bosch, L., & Tang, C. (2013). Financial Identity-Processing Styles Among Young Adults: A Longitudinal Study of Socialization Factors and Consequences for Financial Capabilities. Journal of Consumer Affairs, 47(1), 128–152. https://doi.org/10.1111/joca.12002
Szumilas, M. (2010). Explaining Odds Ratio. National Library of Medicine. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2938757/
Wilson, J. M. (2021). Financial Literacy, Experience, and Age Differences in Monetary Sequence Preferences. Graduate Theses, Dissertations, and Problem Reports. https://doi.org/10.33915/etd.3864
Xiao, J. J., Chen, C., & Sun, L. (2015). Age differences in consumer financial capability. International Journal of Consumer Studies, 39(4), 387–395. https://doi.org/10.1111/ijcs.12205
Zulaihati, S., Susanti, S., & Widyastuti, U. (2020). Teachers’ financial literacy: Does it impact on financial behaviour? Management Science Letters, 653–658. https://doi.org/10.5267/j.msl.2019.9.014
Downloads
Published
How to Cite
Issue
Section
License
Copyright Transfer Statement for Journal
1) In signing this statement, the author(s) grant UNIMAS Publisher an exclusive license to publish their original research papers. The author(s) also grant UNIMAS Publisher permission to reproduce, recreate, translate, extract or summarize, and to distribute and display in any forms, formats, and media. The author(s) can reuse their papers in their future printed work without first requiring permission from UNIMAS Publisher, provided that the author(s) acknowledge and reference publication in the Journal.
2) For open access articles, the author(s) agree that their articles published under UNIMAS Publisher are distributed under the terms of the CC-BY-NC-SA (Creative Commons Attribution-Non Commercial-Share Alike 4.0 International License) which permits unrestricted use, distribution, and reproduction in any medium, for non-commercial purposes, provided the original work of the author(s) is properly cited.
3) For subscription articles, the author(s) agree that UNIMAS Publisher holds copyright, or an exclusive license to publish. Readers or users may view, download, print, and copy the content, for academic purposes, subject to the following conditions of use: (a) any reuse of materials is subject to permission from UNIMAS Publisher; (b) archived materials may only be used for academic research; (c) archived materials may not be used for commercial purposes, which include but not limited to monetary compensation by means of sale, resale, license, transfer of copyright, loan, etc.; and (d) archived materials may not be re-published in any part, either in print or online.
4) The author(s) is/are responsible to ensure his or her or their submitted work is original and does not infringe any existing copyright, trademark, patent, statutory right, or propriety right of others. Corresponding author(s) has (have) obtained permission from all co-authors prior to submission to the journal. Upon submission of the manuscript, the author(s) agree that no similar work has been or will be submitted or published elsewhere in any language. If submitted manuscript includes materials from others, the authors have obtained the permission from the copyright owners.
5) In signing this statement, the author(s) declare(s) that the researches in which they have conducted are in compliance with the current laws of the respective country and UNIMAS Journal Publication Ethics Policy. Any experimentation or research involving human or the use of animal samples must obtain approval from Human or Animal Ethics Committee in their respective institutions. The author(s) agree and understand that UNIMAS Publisher is not responsible for any compensational claims or failure caused by the author(s) in fulfilling the above-mentioned requirements. The author(s) must accept the responsibility for releasing their materials upon request by Chief Editor or UNIMAS Publisher.
6) The author(s) should have participated sufficiently in the work and ensured the appropriateness of the content of the article. The author(s) should also agree that he or she has no commercial attachments (e.g. patent or license arrangement, equity interest, consultancies, etc.) that might pose any conflict of interest with the submitted manuscript. The author(s) also agree to make any relevant materials and data available upon request by the editor or UNIMAS Publisher.
