The Relationship between Subjective Financial Knowledge and Financial Well-Being among Emerging Adults in Malaysia: Mediating Effect of Financial Behaviour

Ghazali, Mohd Samsuri; Alwi, Sharifah Faigah Syed; Othman, Ismah; Sabri, Mohamad Fazli; Aziz, Nurul Nadia Abd

doi:10.6007/ijarbss/v12-i4/12969

Cited by 8 publications

(13 citation statements)

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“…Grohmann et al (2015) concluded that financial literacy and school-related variables have a direct effect on financial behavior, emphasizing the importance of education in shaping financial decision-making. In addition, cognitive resources, including awareness of the positives and negatives of one's financial situation and the ability to use knowledge and technology to improve financial well-being, were found to be crucial factors influencing financial behavior (Ghazali et al, 2022;Gudmunson & Danes, 2011;Sabri et al, 2012). Having a higher level of education provides individuals with a more realistic understanding of the consequences of their financial decisions, enabling them to make healthier financial choices.…”

Section: Moderation Effect Of Level Of Educationmentioning

confidence: 99%

The Behavioral Dynamics of Financial Vulnerability

Ahmad Suhaimi,

Fazli Sabri,

Nazuri

2023

IJARBSS

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The rising costs of raw materials and logistics, as well as the persistent unpredictability surrounding pandemic, continue to constitute a substantial threat to the Malaysian economy. The uncertain nature of the labour market results in job loss, leaving individuals financially vulnerable. According to data from the Department of Insolvency, more than 50% of bankruptcies in Malaysia involved young adults. Therefore, this study was carried out among young adults in Malaysia to identify the predictors of financial vulnerability, through financial socialization and locus of control with the moderation of education level. Multi-stage sampling and self-administrative survey were employed to choose respondents from public sectors and private sectors. 1002 data were collected and the researcher employed the Structural Equation Modeling using Partial Least Square (PLS-SEM) to take into account the relationships between multiple variables. The result generated from the current study shows a significant relationship between Financial Socialization as well as Locus of Control towards Financial Behaviour. Through the analysis, there is also an evidence of Financial Behaviour significantly associated with Financial Vulnerability. In conclusion, the findings provide insight and make aware the young individuals in Malaysia to possess healthy financial behaviour to practice equitable financial management and avoid being vulnerable.

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Section: Moderation Effect Of Level Of Educationmentioning

confidence: 99%

The Behavioral Dynamics of Financial Vulnerability

Ahmad Suhaimi,

Fazli Sabri,

Nazuri

2023

IJARBSS

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“…between financial behavior, financial knowledge, and financial well-being. For instance, research [86,87] showed that subjective knowledge had stronger relationships with both financial behavior and financial well-being than objective knowledge. Further, it was established that money attitudes and financial knowledge significantly influenced financial behavior.…”

Section: Plos Onementioning

confidence: 99%

Impact of financial literacy, mental budgeting and self control on financial wellbeing: Mediating impact of investment decision making

Bai

2023

PLoS ONE

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The topic of financial wellbeing is a current concern within the realm of personal and household finance. This study aims to examine the influence of cognitive factors, specifically financial literacy, mental budgeting, and self-control, on subjective financial wellbeing. While there exist multiple determinants of financial wellbeing, this research focuses on these particular cognitive factors. The present study aims to examine the mediating role of investment decision-making behavior in the association between cognitive factors and financial well-being. The study employed Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze the data collected from a sample of 449 Chinese university students, with the aim of assessing the empirical associations. The results indicate that financial literacy, mental budgeting, and self-control exert a favorable and noteworthy influence on an individual’s financial well-being. The results indicate that individuals with a greater degree of financial literacy are more prone to achieving superior financial well-being. Moreover, individuals who practice mental budgeting, a technique that entails mentally classifying and monitoring their expenditures, demonstrate elevated levels of financial well-being. Likewise, the exercise of self-regulation is identified as a pivotal element that impacts an individual’s financial wellbeing. The findings indicate that there is evidence to support the mediator, investment decision-making behavior. This mediator partially mediates the association between the independent variables, namely financial literacy, mental budgeting, and self-control, and financial well-being. The results suggest that individuals with elevated levels of financial literacy, proficient mental budgeting skills, and self-regulatory abilities are inclined towards demonstrating favorable investment decision-making conduct. Consequently, this contributes to their general financial welfare. In general, the study’s theoretical implications augment the current knowledge repository, while its practical implications provide feasible perspectives for policymakers, financial institutions, and individuals to foster financial wellness and enhance financial results.

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“…Consequently, research shows that factors or constructs measured through selfperceived (subjective) response items better relate to or predict financial behaviour and/or well-being (Allgood & Walstad, 2013;Anderson, Baker, & Robinsonc, 2017;Ghazali, Alwi, Othman, Sabri, & Aziz, 2022;Lind et al, 2020;Strömbäck , Skagerlund , Västfjäll, & Tinghög, 2020). For example, Strömbäck et al (2020) found that reported (subjective) selfcontrol has a stronger relationship with financial behaviour and well-being than assessed (objective) self-control.…”

Section: Variablesmentioning

confidence: 99%

Knowledge and acceptance of the Crowdfunding Platform

Décaro-Santiago,

Soriano-Hernández,

Soriano-Hernánde

2023

EJRP

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Bringing together the efforts of large amounts of individuals to collect funds and transfer them to their claimants is an activation key of the Fintech Crowdfunding Platforms (FCP). Consequently, the business model presence inside the potential investment mind is essential for its growth and consolidation. In this way, the concern to investigate the level of knowledge on the subject in Potential Retail Investors (PRI), is born. In addition to detecting whether this knowledge is related to the perception of the model as an investment option, as well as, intending to invest in the future. Thus, a quantitative investigation is carried out through the application of a self-perception response instrument, this in a sample of 384 PRI. The results showed that the participants recognized themselves with a low level of knowledge about: the existence of the model, the difference between authorized and unauthorized platforms, and its operation, among others. These results are accentuated in Biological and Health Sciences professionals, women, and people with no investment background. A positive but weak correlation is also detected between knowledge about PFCF and perception, as well as, the intention to invest. In contrast, a medium correlation was obtained between perception and the investment intent in the modality.

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The Relationship between Subjective Financial Knowledge and Financial Well-Being among Emerging Adults in Malaysia: Mediating Effect of Financial Behaviour

Cited by 8 publications

References 0 publications

The Behavioral Dynamics of Financial Vulnerability

The Behavioral Dynamics of Financial Vulnerability

Impact of financial literacy, mental budgeting and self control on financial wellbeing: Mediating impact of investment decision making

Knowledge and acceptance of the Crowdfunding Platform

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