Analysing the Predictors of Financial Stress and Financial Well-Being among the Bottom 40 Percent (B40) Households in Malaysia

Mansor, Maslina; Sabri, Mohamad Fazli; Mansur, Mustazar; Ithnin, Muslimah; Magli, Amirah Shazana; Rahim, Husniyah Abd; Mahdzan, Nurul Shahnaz; Othman, Mohd Amim; Zakaria, Roza Hazli; Satar, Nurulhuda Mohd; Janor, Hawati

doi:10.3390/ijerph191912490

Cited by 7 publications

(8 citation statements)

References 67 publications

(82 reference statements)

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“…The theory explains how families manage their finances which involves financial behavior (as input), financial resources, and financial knowledge toward achieving their goals or well-being. In addition, Sabri et al (2022) found that financial behavior mediates the influence of financial knowledge and internal locus of control on perceived financial well-being among lowincome young adults in Malaysia. Thus, we posit related hypotheses as follows:…”

Section: Literature Review and Hypothesesmentioning

confidence: 96%

“…Thus, based on these arguments, this study postulated that: due to low savings may need more funds in the event of an income shock. Mansor et al (2022) have presented evidence that financial stress impacts the financial well-being of the Bottom 40 Percent (B40) group, where the results show a significantly positive relationship between financial stress and financial vulnerability. Furthermore, unplanned spending behavior may result in an inability to meet basic needs and debt payments as scheduled, which are related to financial vulnerability.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

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Financial Behavior, Social Relations, Stress and Financial Vulnerability Among Youth in Malaysia

Mohd Daud,

Ismail,

Samsudin

et al. 2023

MAJCAFE

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The COVID-19 pandemic, the subsequent implementation of the Movement Control Order (MCO), and financial resilience issues during the pre-pandemic period have initiated a study of the extent of financial vulnerability conditions and their link with financial behavior, social relations, and stress conditions among youth in Malaysia. Using data from the Malaysian Youth Index 2020 to include 21,126 respondents, the hypotheses are tested and analyzed through partial least square structural equation modeling (PLS-SEM) techniques. The findings reveal that social relations are the critical antecedent, followed by financial behavior and stress conditions in predicting financial vulnerability, which implies that financial vulnerability can be solved by improving financial behavior, strengthening social relations, and reducing stress conditions. Furthermore, financial behavior has been found to mediate the relationship between social relations and financial vulnerability, as well as stress and financial vulnerability. The nature of interactions between financial behavior, social relations, stress condition, and financial vulnerability would be helpful information for policymakers in encouraging and improving social building programs in society to equip them with cutting-edge financial decision-making tools.

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Section: Literature Review and Hypothesesmentioning

confidence: 96%

Section: Literature Review and Hypothesesmentioning

confidence: 99%

Financial Behavior, Social Relations, Stress and Financial Vulnerability Among Youth in Malaysia

Mohd Daud,

Ismail,

Samsudin

et al. 2023

MAJCAFE

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“…As previously mentioned, there were abundant numbers of research looking at FWB and the financial behaviours of young people or emerging adults. [ 18 , 62 ], for instance used university or college students as their sample, while other studies surveyed working young adults between a particular age scope [ 8 , 63 ]. Extant studies have their spotlight on youths and young adults since this population group has an significant responsibility, as the potential ‘captain’ who will steer the world into even more difficult circumstances, they deserve special attention.…”

Section: Literature Reviewmentioning

confidence: 99%

An enigma of Malaysia’s low-income young adults: Mediation of financial behaviour on financial well-being and locus of control cohesion

et al. 2023

Self Cite

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Young adults face many significant challenges to their financial well-being. The rising cost of living and unstable economies have impacted how they consume, manage, and save monthly income to maintain their standard of living. Hence, exploring the financial well-being of young adults in Malaysia is an intriguing and relevant research topic that deserves examination from multiple perspectives. This study aims to investigate how these three factors, namely financial knowledge and locus of control with financial behaviour as a mediator, are correlated with the financial well-being of low-income young adults in Malaysia. A total of 520 young adults from North, Central, South, East zones in Peninsular Malaysia and East Malaysia were randomly chosen using a multi-stage sampling technique as the sample of this study. Data in this study were obtained using a set of questionnaire-based survey through cross-sectional study and then scrutinized using IBM SPSS (Statistical Package of Social Science). This study discovered that financial knowledge, internal and external locus of control, and financial behaviour were significantly correlated with the financial well-being of low-income young adults. The findings also demonstrate that financial behaviour mediates the correlation between financial knowledge, both internal and external locus of control, and financial well-being. This study is one of the very few important studies that explore the link between financial literacy, locus of control, financial behaviour, and financial well-being among low-income young adults. This study also found an interesting and noteworthy fact regarding the impact of the minimum monthly wage policy on highly educated young adults in Malaysia, which is worth discussing and needs to be alerted to the policymakers and leaders of the country. Therefore, the findings of this study can be utilized as a starting point by policymakers, government organizations, and non-governmental organizations to create new initiatives aimed at raising financial well-being among the younger generation.

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“…Several works related to household income and expenditure, nancial literacy, and spending behavior, speci cally in Malaysia, have employed statistical and mathematical modeling methods. Previous studies employed multiple regression methods to identify factors in uencing household spending on sustainable consumption [3], OLS and Tobit estimation methods to determine the effects of these factors on B40 household consumption pattern [4], Exploratory Factor Analysis (EFA) and Partial Least Squares-Structural Equation Modelling (PLS-SEM) to analyze factors affecting nancial stress among the Bottom 40 Percent (B40) group of Malaysian households [5] and investigate the relationship between nancial literacy, nancial behavior, nancial stress, and nancial well-being of B40 group in Malaysia [6]. Their ndings suggested that the government as policymakers and stakeholders focus on factors that could sustain B40 households' consumption level, be aware that the in uence of socioeconomic and demographic factors that play a signi cant role in B40 household consumption; identify the vulnerable groups of households in order to gauge their diminishing ability to sustain spending; and invent more effective and substantial stimulus packages or other measures to reduce the nancial burden on B40 households Machine Learning (ML) on socio-economic data that used Malaysia household income and expenditure data with various results can be seen in [7][8][9][10].…”

Section: Introductionmentioning

confidence: 99%

Title Mining Association Rules to Determine the Over-spending Behavior Among Low Income Households in Malaysia

Azmi,

Bakar,

Othman

et al. 2024

Preprint

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Overspending behavior in a household can significantly affect the financial burden, debt accumulation, stress, and economic problems. Spending behavior is one of the financial literacy indicators that empowers individuals to make informed financial decisions, budget effectively, and plan for the future. This study proposes an association rules mining approach to investigate the spending behavior among households with income below 40% (B40) in Malaysia. For this purpose, we employ the Apriori algorithm on 2016 and 2019 Malaysia households' income and expenditure survey data obtained from the Department of Statistics Malaysia to discover over-spending items that occurred in household expenditure. The results showed that up to three associated overspending items were discovered based on several support and confidence settings. There are significant changes in spending behavior in the 2016 and 2019 data. Besides food as the main overspending item in 2016 data, other items such as miscellaneous items, restaurants and hotels, and services were overspent in 2019 data. Moreover, three associated items were found only in the 2019 data. This finding benefits the government in improving financial literacy or implementing effective initiatives to improve the nation's living standards.

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Analysing the Predictors of Financial Stress and Financial Well-Being among the Bottom 40 Percent (B40) Households in Malaysia

Cited by 7 publications

References 67 publications

Financial Behavior, Social Relations, Stress and Financial Vulnerability Among Youth in Malaysia

Financial Behavior, Social Relations, Stress and Financial Vulnerability Among Youth in Malaysia

An enigma of Malaysia’s low-income young adults: Mediation of financial behaviour on financial well-being and locus of control cohesion

Title Mining Association Rules to Determine the Over-spending Behavior Among Low Income Households in Malaysia

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