Financial Literacy: The Influencing Factors Among Youth
DOI:
https://doi.org/10.31098/ijcbm.v1i2.5415Keywords:
Financial Literacy, Financial Knowledge, Financial Behaviour, Family Influence, YouthAbstract
Malaysia, like all other countries throughout the world, became a victim of the COVID 19 epidemic. Based on the Malaysia's Insolvency Department 2021 statistical data, the alarming increase of individual bankruptcy cases were caused by failure to pay personal loans, instalment purchases, and credit card debt especially amongst youth. This is concerning because it implies that young Malaysians are still oblivious to their financial circumstances. Hence, the goal of this research is to investigate the level of financial literacy among youth, as well as the relationship between financial knowledge, financial behaviour, financial attitude, and familial influences on financial literacy. A non-probability convenience sampling method was used to gather information from 181 respondents. The findings of the study show that financial knowledge (p=0.000), financial behaviour (p=0.000), and family influence (p=0.000), are significantly associated to financial literacy, the dependent variable in this study, with the exception of financial attitude (p=0.418). Time constraints, insufficient independent variables covered, questionnaire development, respondents' honesty, and respondents' inequity were some of the challenges encountered while conducting this study. The most significant limitation is the sample size, which does not represent the population of Malaysian youth. The findings of this study have broad implications for a wide range of stakeholders, including university students, curriculum developer, parents of students, and future researchers. In this study, the factors that influence financial literacy among youth were examined, and it was concluded that the youth literacy level was moderate. The findings of the study will also help to support the National Strategy for Financial Literacy, which runs from 2019 to 2023.
References
Ahmad, Z., Simun, M., & Masuod, M. S. (2014). Determinants of financial behaviours among Malaysians. Indonesian Capital Market Review.
Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision processes,
(2), 179-211.
Albeerdy, M. I., and Gharleghi, B. (2015). Determinants of the Financial Literacy among College Students
in Malaysia. International Journal of Business Administration, 6(3), 15-24.
Álvarez, A. B. V., & González, J. R. V. (2017). Financial Literacy: Gaps Found Between Mexican Public
and Private, Middle, and High-School Students. In Handbook of Research on Driving STEM Learning With Educational Technologies (pp. 80-106). IGI Global.
Bandura, A., & Walters, R. H. (1977). Social learning theory (Vol. 1). Englewood Cliffs, NJ: Prentice-hall.
Bhushan, P., & Medury, Y. (2014). "An Empirical Analysis of Inter Linkages between Financial Attitudes,
Financial Behaviour and Financial Knowledge of Salaried Individuals," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 5(3), pages 58-64, September.
Ibrahim, D. I. D., Harun, R., & Isa, Z. M. (2010). A study on financial literacy of Malaysian degree students.
Cross-cultural communication, 5(4), 51-59.
Jerry, C. (2020, Jun 24). Survey shows Covid-19 af ecting nine in every 10 Malaysian workers. Retrieved
from Malay mail: https://www.malaymail.com/news/malaysia/2020/06/24/survey-shows-covid-19-affecting-nine-in-every-1 0-malaysian-workers/1878383
Jorgensen, B. L. (2007). Financial literacy of college students: Parental and peer influences (Doctoral
dissertation, Virginia Tech
Juan, W. (2013). Saving behaviour among Chinese students. Center for Online Writing Resources.
Kadoya, Y., & Khan, M. (2017). Explaining financial literacy in Japan: New evidence using financial
knowledge, behavior, and attitude. Behavior, and Attitude (November 8, 2017).
Kasman, M., Heuberger, B., & Hammond, R. A. (2018). Recommendations for improving youth financial
literacy education. Retrieved from: https://www.brookings.edu/wp-content/uploads/2018/10/ES_20181001_FinancialLiteracy-Reco mmendati ons.pdf
Lusardi, A., & Mitchell, O. S. (2013). Older adult debt and financial frailty. Michigan Retirement Research
Center Research Paper, (2013-291).
Marsh, B. A. (2006). Examining the personal finance attitudes, behaviors, and knowledge levels of first-
year and senior students at Baptist universities in the state of Texas (Doctoral dissertation, Bowling
Green State University).
Modigliani, Franco, 1975, “The life-cycle hypothesis of saving twenty years later,” in Michael Parkin, ed.,
Contemporary Issues in Economics, Manchester. Manchester University Press. Pp 2–35
Morgan, P. J., & Trinh, L. Q. (2019). Determinants and impacts of financial literacy in Cambodia and Viet
Nam. Journal of Risk and Financial Management, 12(1), 19.
Nga, J., Yong, L.H., & Sellappan, R. (2010). A study of financial awareness among youths. Young
Consumers: Insight and Ideas for Responsible Marketers, 11, 277-290.
OECD (2014), “PISA 2012 technical background”, in OECD (Ed.), PISA 2012 Results: Students and
Money: Financial Literacy Skills for the 21st Century, Vol. VI, OECD Publishing, Paris, pp. 123-145.
OECD. (2016). PISA 2015 Assessment and Analytical Framework: Science, Reading, Mathematics and
Financial Literacy. Paris: PISA.
Ramachandran, V. S. (2012). Encyclopedia of human behavior. Academic Press
Rajna, A., Ezat, W. S., Al Junid, S., & Moshiri, H. (2011). Financial management attitude and practice
among the medical practitioners in public and private medical service in Malaysia. International
Journal of Business and Management, 6(8), 105.
RinggitPlus. (2020). RinggitPlus Malaysian Financial Literacy Survey 2020 Report. Retrieved from:
Sabri, M.F. (2011), "Pathways to financial success: Determinants of financial literacy and
financial well-being among young adults". Graduate Theses and Dissertations. 11205.
Soroshian, S., &Teck, T. (2014). Spending behaviour of a case of Asian university students. Asian Social
Science, 10(2), 345.
Tezel, Z. (2015). Financial education for children and youth. In Handbook of research on behavioral
finance and investment strategies: Decision making in the financial industry (pp. 69-92). IGI Global.
The Edge markets. (2020, May 24). 60% of Malaysian workers will struggle to survive beyond a week of
unemployment, says MTEM senior fellow. Retrieved from: https://www.theedgemarkets.com/article/60-malaysian-workers-will-struggle-survive-beyond-w eek-unem
Thomas, B., & Subhashree, P. (2020). Factors that Influence the Financial Literacy among Engineering
Students. Procedia Computer Science, 172, 480-487.
Downloads
Published
Issue
Section
License
Content Licensing, Copyright, and Permissions
1. License
International Journal of Creative Business and Management has CC-BY NC or an equivalent license as the optimal license for the publication, distribution, use, and reuse of scholarly work for non-commercial purpose. The non-commercial use of the article will be governed by the Creative Commons Attribution license as currently displayed on Creative Commons Attribution-NonCommercial 4.0 International License
Creative Commons License
2. Author’s Warranties
The author warrants that the article is original, written by stated author(s), has not been published before, contains no unlawful statements, does not infringe the rights of others, is subject to copyright that is vested exclusively in the author and free of any third party rights, and that any necessary written permissions to quote from other sources have been obtained by the author(s).
3. User Rights
International Journal of Creative Business and Management objective is to disseminate articles published are as free as possible. Under the Creative Commons license, this journal permits users to copy, distribute, display, and perform the work for non-commercial purposes only. Users will also need to attribute authors and this journal on distributing works in the journal.
4. Rights of Authors
Authors retain the following rights:
Copyright, and proprietary rights relating to the article, such as patent rights,
The right to use the substance of the article in future own works, including lectures and books,
The right to reproduce the article for own purposes, provided the copies are not offered for sale,
The right to self-archive the article,
the right to enter into separate, additional contractual arrangements for the non-exclusive distribution of the article's published version (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal (International Journal of Creative Business and Management).
The author has a non-exclusive publishing contract with a publisher and the work is published with a more restrictive license, the author retains all the rights to publish the work elsewhere, including commercially, because she/he is not subject to the conditions of her / his own license, regardless of the type of CC license chosen.
5. Co-Authorship
If the article was jointly prepared by other authors, the signatory of this form warrants that he/she has been authorized by all co-authors to sign this agreement on their behalf, and agrees to inform his/her co-authors of the terms of this agreement.
6. Termination
This agreement can be terminated by the author or International Journal of Creative Business and Management upon two months’ notice where the other party has materially breached this agreement and failed to remedy such breach within a month of being given the terminating party’s notice requesting such breach to be remedied. No breach or violation of this agreement will cause this agreement or any license granted in it to terminate automatically or affect the definition of International Journal of Creative Business and Management.
7. Royalties
This agreement entitles the author to no royalties or other fees. To such extent as legally permissible, the author waives his or her right to collect royalties relative to the article in respect of any use of the article by This agreement can be terminated by the author or International Journal of Creative Business and Management upon two months’ notice where the other party has materially breached this agreement and failed to remedy such breach within a month of being given the terminating party’s notice requesting such breach to be remedied. No breach or violation of this agreement will cause this agreement or any license granted in it to terminate automatically or affect the definition of International Journal of Creative Business and Management or its sublicensee.
8. Miscellaneous
International Journal of Creative Business and Management will publish the article (or have it published) in the journal if the article’s editorial process is successfully completed and International Journal of Creative Business and Management or its sublicensee has become obligated to have the article published. International Journal of Creative Business and Management may conform the article to a style of punctuation, spelling, capitalization, referencing and usage that it deems appropriate. The author acknowledges that the article may be published so that it will be publicly accessible and such access will be free of charge for the readers.
