Determinants of the Financial Literacy among College Students in Malaysia

Abstract

Objective: The purpose of this study is to investigate the factors influencing the financial literacy among university students in Malaysia.Methods: Data for this study was collected through self-administered questionnaire and distributed through convenient sampling method. A total of 105 completed and usable questionnaires have been collected. Pearson Correlation analysis and multiple regression tables were used to determine the interrelation of different variables in financial literacy.Results: Empirical results show that there is a significant relationship between independent variables of education, and money attitude towards the dependent variable of financial literacy, while there found no relationship between financial socialization agents and financial literacy. Conclusions:This study is important so as to understand how these independent variables affect the literacy rate of young adults. Efforts may be put to strengthen those variables in order increase the literacy rates of those university students.

Determinants of Financial Well-Being for Generation Y in Malaysia

“…This study concurs that general money management attitudes drives financial management (Albeerdy & Ghareghi, 2015). There is a moderately positive correlation between the participants' response that they do consider the affordability of items or services prior purchasing (FMgt01) (Accenture, 2013) with their desire to save (FMgt03, 0.633) (Albeerdy & Ghareghi, 2015). There is also a correlation between participants' savings and spending habit (FMgt07) with their saving for retirement (FMgt11, 0.478) as observed by Lusardi & Mitchell's (2005) and Wiener & Doescher (2008).…”

“…All the variables that construct the financial management determinant are also positively correlated. This study concurs that general money management attitudes drives financial management (Albeerdy & Ghareghi, 2015). There is a moderately positive correlation between the participants' response that they do consider the affordability of items or services prior purchasing (FMgt01) (Accenture, 2013) with their desire to save (FMgt03, 0.633) (Albeerdy & Ghareghi, 2015).…”

“…Strong financial knowledge is the precursor to good financial management as it influences an individual's financial attitude and behaviour (Perry & Morris, 2005;Britt, et al, 2013;Lusardi & Mitchell, 2014). Good financial management is the prerequisite towards a good financial planning as observed by extant literature (O'Neill, et al, 2000;Albeerdy & Ghareghi, 2015;Rooij, et al, 2011a;Ali, et al, 2015).…”

“…Page 16 Past studies have posited financial management contribute positively to financial satisfaction (O'Neill, et al, 2000;Albeerdy & Ghareghi, 2015). This study will set to explore this positive correlation.…”

Financial literacy among university students: A study in eight European countries

“…They concluded that mandating personal finance education course may be effective in increasing student knowledge but only if the mandate requires significant exposure to personal finance concepts. Albeerdy and Gharleghi (2015) found that there was a strong and positive relationship between university education and financial literacy. This result indicates that although majority of the students gets financial information from social media, newspapers and TVs, the most effective way to improve students' financial literacy is university education.…”