Psychological Determinants of Household Financial Sustainability: The Perspective of Employees in Manufacturing Sector of Malaysia

Abstract

Financial sustainability is a hot topic these days. Previous studies have explored the effects of socioeconomic characteristics on financial sustainability. However, this stream of research has paid little attention to psychological factors that may be related to financial sustainability of household. Therefore, the aim of the present study is to fill the research gap by examining the effects of financial attitudes, financial behavior and financial self-efficacy on financial sustainability. To meet the study objectives, data were collected from 284 employees working in Malaysian manufacturing sector. The collected data was then analyzed using the PLS-SEM approach. The results of this study show that financial attitudes, financial behavior and financial self-efficacy have a significant impact on the financial sustainability of employees affiliated with manufacturing sector of Malaysia.