Financial Education as Moderating Influence in Prudent Financial Management Practices among Malaysian Youth

Abstract

Studies have indicated that the key contributors to heavy financial debt among youth are global economic situation with uncertainty of economic growth, wide access of financial product, and sophistication financial environment. Additionally, the market regards youth as primary lucrative market and this has led the youth to fall into poor financial practices and widely exposed to bankruptcy. The inability for youth to become financially sustainable in manoeuvring their expenditure and savings further cemented the notion that youth are lacking in financial knowledge which lead to indecisive financial decision. The study aims to investigate the influence of financial education (FE) as a moderator to financial attitudes (FA), parental financial socialisation (PFS), and financial literacy (FL) to ensure the successfulness of Prudent Financial Management Practices (PFMP) among Malaysian youth. This study employed self-administered questionnaires which were adopted from previous studies and distributed to 140 youth in Malaysia which were later analysed using SPSS to address the research objectives. The result indicated that FE is not significant moderator to FA, PFS, and FL in determining the PFMP among youth in Malaysia. The finding further highlighted that PFMP among youth are the result of shared accountability from various stakeholders such as parents, policy makers, and financial institution.

The position of financial prudence, social influence, and environmental satisfaction in the sustainable consumption behavioural model: Cross‐market intergenerational investigation during the Covid‐19 pandemic

“…However, our research compares SC across four generations during the COVID‐19 pandemic and reveals that all these generations, with exception of baby boomers, moderate the two‐way interaction between social influence and FIN. The pandemic has triggered many intergenerational consumer studies to explore the impact of COVID‐19 on general consumer behaviour (Anuar et al, 2020 ; Chebli & Said, 2020 ) and on specific financial behaviour (Bakar et al, 2020 ; Zhang, 2019 ), but the impact of FIN on sustainable consumer behaviour has not been taken into account. Thus, the conceptual model in this study identifies a significant impact of FIN across several generations in China and in Europe on the social influence with respect to SC but an insignificant impact of FIN on the relationship between social influence and environmental satisfaction and on the relationship between environmental satisfaction and SC behaviour.…”

“…Our results further show that, among European consumers, FIN does not affect SC behaviour in the presence of high environmental satisfaction. By introducing variables for FIN and environmental satisfaction into the relationship between social influence and SC behaviour, we contribute to a better understanding of the relationship between social influence and SC behaviour (Bakar et al, 2020; Alekam, 2018; Ivan & Dickson, 2008).…”

“…Third, prior research introduced many factors to explain SC behaviour (Farooq Baqal & Abdulkhaleq, 2018), including social influence (Salazar et al, 2013; Vassallo et al, 2016), FIN (Bakar et al, 2020; Alekam, 2018), and environmental satisfaction (Brun & Karaosman, 2020; Cornelissen et al, 2008). But these studies did not integrate these three factors and thus did not identify the eventual mediator and moderator that promote SC behaviour.…”

“…Because of the inconsistency in results based on a single financial indicator, this paper draws on the concept of FIN (Bakar et al, 2020; Hibbert et al, 2004; Voydanoff, 1990; Yuesti et al, 2020). FIN is one of many ways to manage and reduce financial strain (Hibbert et al, 2004).…”

“…Second, this study makes another contribution to the existing literature by proposing a model of SC in which FIN (Bakar et al, 2020;Hibbert et al, 2004;Yuesti et al, 2020) plays a moderating role by influencing the relation between social influence (Goldsmith & Goldsmith, 2011;Lazaric et al, 2019;Rashotte, 2007) and environmental satisfaction (Chen et al, 2019) and between social influence and sustainable consumer behaviour.…”