Concerns regarding the retirement experience of pre-retirees are growing globally. Numerous discussions on factors affecting retirement confidence can be found in academia. The present study employed structural equation modelling in the attempt to examine the mediating role of financial management practices on the relation between financial literacy and retirement confidence. A mediation model was tested on a sample of 626 Malaysian women working in government agencies. Significant relations were found between financial literacy, financial management practices, and retirement confidence. Earlier analysis revealed that the relation between financial literacy and retirement confidence is spurious, as the relation is fully mediated by financial management practices. The result supports the Family Resource Management Theory introduced by Deacon and Firebaugh (1988). Implications of the findings and suggestions for future studies are offered.
This paper aims to analyse factors affecting financial stress among the Bottom 40 Percent (B40) group of Malaysian households, reflecting overall financial well-being. Data were collected through questionnaires from 1008 respondents across five major regions in Malaysia. The data were analysed using Exploratory Factor Analysis (EFA) and Partial Least Squares-Structural Equation Modelling (PLS-SEM). This study provides evidence that financial behaviour, financial vulnerability (debt and income), and locus of control (luck and self-confidence) significantly affect financial stress among B40 households. The results show a significantly positive relationship between financial stress with financial vulnerability (debt and income) and locus of control (self-confidence). On the contrary, financial behaviour and locus of control (luck) show a significant negative relationship with financial stress. The result also indicates that financial stress affects financial well-being. Overall, the findings indicate that policy-makers should invent more effective and substantial stimulus packages or other measures to reduce the financial burden on B40 households. The findings could eventually provide insights for future research to delve into the social impact of financial stress. This study also has established a valid and reliable instrument to measure financial stress involving B40 households in Malaysia that eventually reflects the financial well-being of this group of people.
Financial health of young adults (18-29 years old) could be best achieved with the usage of financial technology (fintech) applications. Troubled by the high cost of living, the effects of Covid-19 pandemic, the jobless rate among young adults, and the years of lockdowns and masks young adults in Malaysia's financial health has become more perilous. This study aims to understand the financial health of young adults and the usage of financial technology. Rapid developments of fintech in Malaysia are expected to contribute to improvement of young adult's financial health. This paper uses a dataset collected through smart partnership with Malaysian Youth Council and the Malaysian Ministry of Youth and Sports. Multi-stage random sampling was used to sample a total of 651 respondents in which the data collected was analysed descriptively and inferentially using SPSS. Descriptive analysis was conducted in order to summarize the empirical analysis results with numerical representation. This study found a single young adult requiring RM871 for their monthly expenses and married young adult requiring RM3161 per month. A total of one third of respondents had sufficient income for basic needs only.In terms of financial technology, only 2.6% of respondents do not use fintech applications.One implication for policy makers is to ensure that young adults are made aware of methods they could undertake to improve their financial health through the usage of financial technology.
Economic disadvantage disproportionately affects B40 households with income shocks. This paper aims to analyse the effects of financial well-being on 428 respondents from B40 households in Selangor districts using non-probability sampling (purposive stratified sample). SPSS Version 26 was used to perform regression analyses to determine factors influencing financial behaviour, financial stress, and locus of control. The fitness of the financial wellbeing model indicated an R-square value of 0.386. The model explained 38.6 per cent of the variances in financial well-being. Financial well-being was explained by the model's factors comprising financial behaviour, financial stress, internal and external locus of control. Model indicated (F = 65.70; p = .000) were valid models based on the ANOVA output. Financial behaviour and internal locus of control were shown to positively impact financial well-being; whereby financial stress was negatively influencing financial well-being. Financial stress occurs when a person's financial resources are insufficient to meet basic financial needs. Henceforth, those under a lot of financial stress must engage in proper financial activities to be more financially independent. In conclusion, ensuring responsible practices, including excellent financial behaviour practices, strong financial stress management, and high internal locus of control strengthened would assist households in completing their financial management.
The degree of Malaysian household debt remains high, at present among the highest in Asia, raising concerns about its sustainability. Based on that existing issue and results of the several studies the question is arisen regarding what needs to be done to address the high levels of financial vulnerability experienced by the Malaysians, especially the young adults. Therefore, major objective of the current study was to examine the major determinants that affect financial vulnerability, and allow policymakers to address the above issue. 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, 53.1% of the total variance of financial vulnerability was explained by the model. Determinants of financial vulnerability examined by this study comprise financial socialization, financial behavior, locus of control, and financial stress; all of them were significantly related with the financial vulnerability and except financial stress, all other three determinants were shown negative relationships. Therefore, current study has both the theoretical and practical contributions, and offers experts with actionable insights regarding the determinants of young adults' financial vulnerability when designing policies to prevent them from moving from a state of lower to higher financial vulnerability overtime.
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