A study of financial awareness among youths

Abstract

Purpose -Credit card bankruptcies in Malaysia trebled from 2006 to 2007 and study loan defaults increased by 103 percent in the same period. In response to this, the paper aims to investigate the level of general financial and product awareness among young adults. The two research questions addressed are: how do demographic factors (age, gender and education level) influence the general financial awareness, and whether undertaking a business degree promotes greater financial and product awareness amongst youth today. Design/methodology/approach -A survey method was employed using a sample of 280 students at a private higher education institution in Subang Jaya, Malaysia. The study also develops valid and reliable scales for general financial awareness and financial product awareness. Hypothesis testing was conducted using multivariate analysis of covariance.Findings -The findings of the study revealed that the level of education and majors influence general and financial product awareness among youths. Also, males were found to have higher levels of financial awareness compared to females.Research limitations/implications -Future research is required to investigate whether family background has an impact on personal finance knowledge.Practical implications -By identifying the specific areas where financial product awareness may be lacking, the paper may assist educators, regulators and financial institutions to design financial planning courses in helping youths to achieve greater financial freedom and be better equipped for retirement.Originality/value -This paper also develops reliable and valid measurement scales for both general and financial product awareness which were not evident in previous studies. The paper's findings may prompt the educational institution and government authorities to be concerted in promoting financial planning awareness nationwide.

Comparative Analysis on EPF Investors’ Knowledge, Experience and Behaviour Towards Investing in Islamic and Conventional Unit Trusts : The Case of Malaysia

“…Thus, it can be said that EPF investors in Malaysia are really concerned about Islamic and conventional unit trusts. Similar with the previous study done by Nga, Yong and Sellappan (2010) and Jonubi and Abad (2013), knowledge, financial literacy, and financial product consciousness are found important to influence people to make financial decision. Therefore, this research recommends that it is significant to increase financial knowledge among the public towards future financial preparation as well as to increase their standard of living.…”

Financial literacy and its variables: The evidence from Indonesia

“…Financial awareness is part of financial literacy and is an important factor that influences perceived knowledge which ultimately influences decision-making (Khan, 2015;Mason and Wilson, 2000;Priyadharshini, 2017). Nga et al (2010) provided evidence that financial awareness, that is, both general awareness and product awareness are affected by demographic factors. Khan (2015) indicated that financial awareness of financial products influences the financial decision.…”

How trust in financial supplier information impacts young adults' financial information involvement: The moderating roles of product savings risk and social norm

“…While several studies suggest that gender may be related to young adults' financial behaviour, previous research results are mixed concerning the direction of the influence of gender on the quality of young adults' financial behaviour. While some research suggests that young males are more likely than young females to save a proportion of their income (Weekes, ) and that young males also have higher levels of financial awareness compared with young females (Nga et al ., ), other results indicate that women tend to be more risk adverse in financial choices than men (Dellande and Saporoschenko, ; Schurer, ), which may be positively related to information involvement (Chaudhuri, ).…”