Financial Literacy of Undergraduate Students in Selected Malaysian Higher Education Institutions: A Way Forward to Policy Recommendation

Abstract

Financial literacy is an important but often ignored skill that is vital for the young. Lack of knowledge and understanding of financial literacy will directly affect the well-being of the individual. Research indicates that due to low financial literacy, individuals experience a variety of problems that are related to personal finances such as savings, investments, or old plans, credit and so on. Previous research indicates that socioeconomic factors are important determinants of financial literacy. Most youths from lower income groups are less likely to be exposed in terms of financial literacy. Thus, there is an urgent need to provide exposure and basic knowledge of financial literacy to the youth to avoid persistence of this problem. This study identifies the level of financial literacy among undergraduate students in selected public and private higher institutions and whether there are differences in financial literacy by socioeconomic status and also by gender. The questionnaires were distributed to 44 respondents using online survey. Samples included students who are recipients of Alms and also from higher income group. Data were analysed using both descriptive and inferential statistics such as Ttest. The findings reveal that these undergraduates' students have high level of financial knowledge and behaviour. However, their financial attitude is still at moderate level. Results also indicate that students do not differ in financial literacy by gender or socioeconomic status. This study provides insights to policy makers and relevant agencies on the appropriate interventions that need to be made to ensure financial well-being of our future generations.

A Quantitative Study on Expenditure Behavior among Public and Private University Students in Malaysia

“…As the results indicate, all hypotheses were accepted as the t-value was greater than 1.96. Therefore, when examined by (Kenayathulla, Nair, Rahman, & Radzi, 2020) it was demonstrated that the monetary illiterateness level among undergraduates was higher than their financial attitudes, which remained at a moderate level. This study has created a new perspective on looking at financial literacy through the branches of knowledge, behavior, and attitude.…”

“…It has been discovered that financial literacy is positively connected with people's propensity to save money. Knowledge of both fundamental and complex financial concepts, such as how to calculate interest rates, inflation rates, percentages, stock prices, and unit trusts, is referred to as financial literacy (Kenayathulla, Nair, Rahman, & Radzi, 2020). It is now globally recognized as an essential life skill as consumers must be able to differentiate between various products, services, and providers of financial products to manage their finances successfully.…”

Financially Sustainable Future, Are Tertiary Students Ready?

“…Kimiyaghalam and Yap (2017) as well as Ibrahim et al (2009) documented no significant differences in the level of financial literacy between men and women. Kenayathulla et al (2020) studied the level of financial literacy among undergraduate students in selected public and private institutions, in the areas of financial knowledge, behaviour, and attitudes. The research also analysed whether there were differences in terms of financial literacy by socioeconomic status or by gender.…”

Financial Literacy And Financial Behaviour: An Overview of Key Drivers

“…The second approach used subjective measures to measure financial literacy. Respondents are required to self-rate their financial knowledge (Kenayathulla et al, 2020;Mien & Thao, 2015;Perry & Morris, 2005). Among the questions asked are whether the respondents agree with statements related to borrowing or investment.…”