The Influence of Financial Knowledge, Financial Socialization, Financial Behaviour, and Financial Strain on Young Adults’ Financial Well-Being

Abstract

Financial well-being refers to one's overall satisfaction with their current financial condition, and it plays a significant part in young adults' overall success as well as their ability to overcome psychological health concerns. It has become a crucial concern for individuals, households, societies, and countries in recent years, yet research on the subject is sparse and dispersed among fields. As a result, the current research assessed an empirical financial wellbeing model based on Malaysian young adults' financial knowledge, financial socialization, financial behavior and financial strain. A multi stage random sampling method was performed to draw a representative sample of Malaysian young adults, and 651 duly filled responses were received through the self-administered questionnaire. As stated by the multiple regression results, 16.1% of the total variance of financial well-being was clarified by the model. All four financial well-being determinants examined (financial knowledge, financial socialization, financial behavior, financial strain) were revealed significant, and only financial strain had a negative relationship with financial well-being. Therefore, current study has both the theoretical and practical contributions, and offers experts with actionable insights regarding the determinants of young adults' financial well-being when designing policies to uplift their financial well-being over time.

Digital financial services usage and subjective financial well-being: evidence from low-income households in Malaysia

“…FS was negatively related to SFWB, confirming the past literature (Boss, 2001; Delafrooz and Paim, 2011; Mahdzan et al ., 2019; Sabri et al ., 2021). This means that those who face economic hardships and feel depressed thinking about their finances would be less confident and less satisfied with his or her financial situation.…”

“…Past studies have found that FS relates negatively to FWB (e.g. Boss, 2001;Delafrooz and Paim, 2011;Mahdzan et al, 2019;Sabri et al, 2021). Hence, the second hypothesis to be tested is as follows:…”

Financial Literacy, Financial Behavior, Self-Efficacy, and Financial Health among Malaysian Households: The Mediating Role of Money Attitudes

“…Demographic and socioeconomic characteristics, for example, age, ethnicity, gender, education, income, and marital status are the most frequently known factors (Hira & Mugenda, 1999). In addition to the demographics, other factors are also revealed as influential determinants of financial health for the context of Malaysia, for example, money attitude financial practices, emotion coping, and self-efficacy (Sabri et al, 2020a), financial behaviour, financial strain, financial socialization, and financial knowledge (Sabri et al, 2021a), financial capability, and financial literacy (Sabri & Zakaria, 2015), debt management (Abdullah et al, 2019).…”

Studi Komparatif Dampak Financial Management Knowledge terhadap Financial Management Behavior Masyarakat Muslim pada Wilayah Urban dan Rural

“…Masyarakat yang tinggal pada daerah perkotaan cenderung memiliki akses terhadap pendidikan yang baik sehingga memiliki pengetahuan tentang pengelolaan keuangan yang baik. Hal ini senada dengan Sabri et al, (2021) yang mengatakan bahwa urban community cenderung memiliki financial management knowledge yang baik jika dibandingkan dengan rural community. Namun, hal ini tidak sejalan dengan pepatah lama yang berkembang dalam masyarakat, dimana masyarakat memiliki kepercayaan bahwa rural community meskipun tidak memiliki financial management knowledge yang baik, namun mereka memiliki personal financial management behavior yang lebih baik daripada urban community.…”

“…Beberapa penelitian terdahulu telah menunjukkan hasil bahwa financial knowledge merupakan salah satu faktor penentu financial management behavior seseorang (A. Robb & S. Woodyard, 2011;Pathirannahalage & Abeyrathna, 2020;Rai et al, 2019;Sabri et al, 2021). Seseorang yang memiliki financial management knowledge yang baik cenderung juga memiliki financial management behavior yang baik pula.…”