The Mediating Effect of Money Attitude on Association Between Financial Literacy, Financial Behaviour, and Financial Vulnerability

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Many countries are establishing national programs to increase their citizens' family economic well-being. However, the concept of family economic well-being is still in its infancy, with only a few models established for developing countries. Thus, to create and implement effective policies, it is necessary to comprehend the concept family economic well-being from a multidisciplinary and multi-dimensional perspective, especially for a developing country like Sri Lanka. In the current study, path analysis was performed to examine the drivers that affect family economic well-being of coconut growers in Sri Lanka. Data from 400 respondents were analyzed empirically to validate the hypothesized relationships using the PLS-SEM approach. The findings provide support for the relationships between money attitude, technology adoption, financial behavior, financial knowledge, and family economic well-being which explained 91.2% of variance in family economic well-being. Understanding the paths that lead to better individual economic well-being has the potential to aid in successful policymaking, and curriculum design to assist individuals' efforts to achieve greater family economic wellbeing.

Section: Financial Behaviormentioning

confidence: 99%

Understanding the Path Toward Family Economic Well-Being of Coconut Growers

Wijekoon¹,

Sabri²,

Ahmad³

et al. 2021

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“…Financial behavior is also considered as one of the elements prompting high financial satisfaction and financial well-being (Coşkuner, 2016;Sabri et al, 2020a). Further, Fei et al (2020) and Sabri et al (2020b) detected financial behavior as one of the significant negative determinants among the Malaysian young employees. In a study by Hayes and Finney (2013) have measured the influence of financial behavior on the household financial vulnerability in measuring individual general financial position such as, an experience of financial difficulties, and projection of future financial position.…”

Section: Financial Behaviormentioning

confidence: 99%

The Influence of Financial Socialization, Financial Behavior, Locus of Control and Financial Stress on Young Adults’ Financial Vulnerability

Anthony¹,

Sabri²,

Wijekoon³

et al. 2021

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The degree of Malaysian household debt remains high, at present among the highest in Asia, raising concerns about its sustainability. Based on that existing issue and results of the several studies the question is arisen regarding what needs to be done to address the high levels of financial vulnerability experienced by the Malaysians, especially the young adults. Therefore, major objective of the current study was to examine the major determinants that affect financial vulnerability, and allow policymakers to address the above issue. A multi stage random sampling method was performed to draw a representative sample of Malaysian young adults, and 651 duly filled responses were received through the self-administered questionnaire. As stated by the multiple regression results, 53.1% of the total variance of financial vulnerability was explained by the model. Determinants of financial vulnerability examined by this study comprise financial socialization, financial behavior, locus of control, and financial stress; all of them were significantly related with the financial vulnerability and except financial stress, all other three determinants were shown negative relationships. Therefore, current study has both the theoretical and practical contributions, and offers experts with actionable insights regarding the determinants of young adults' financial vulnerability when designing policies to prevent them from moving from a state of lower to higher financial vulnerability overtime.

Section: Financial Well-beingmentioning

confidence: 99%

“…Fei et al (2020); Sabri et al (2020c) revealed that financial behaviour was a noteworthy negative association with the financial vulnerability of the young employees in Malaysia. Further, Sabri et al (2020c) also revealed a negative association between financial literacy and financial vulnerability. Moreover, financial vulnerability was negatively affected for financial satisfaction, and financial well-being of the female headed households in Malaysia , and therefore both the financial behaviour and financial literacy have positive correlations with financial well-being.…”

Section: Financial Well-beingmentioning

confidence: 99%

“…As for financial socialization, Grohman et al (2015) classified parents as socialization agents who stimulate young adults saving attitudes, credit attitudes, gathering financial information and cultivating good financial behaviours which play a significant role for shaping their future financial well-being. As for financial behaviour, prior recent local studies (Mahdzan et al, 2019;Sabri et al, 2020c) found that being financially healthy and happy are required to exhibit positive financial behaviours, such as regular savings, and proper credit management, and achieve higher financial well-being levels. Given the potential role of financial strain as a significant determinant of young adults' financial well-being, the AIF (Asian Institute of Finance, 2015) concluded that many millennials who are spending money impulsively, were experienced financial strain which hinders them in attaining financial well-being.…”

Section: Financial Strainmentioning

confidence: 99%

See 1 more Smart Citation

The Influence of Financial Knowledge, Financial Socialization, Financial Behaviour, and Financial Strain on Young Adults’ Financial Well-Being

Sabri¹,

Anthony²,

Wijekoon³

et al. 2021

Self Cite

Financial well-being refers to one's overall satisfaction with their current financial condition, and it plays a significant part in young adults' overall success as well as their ability to overcome psychological health concerns. It has become a crucial concern for individuals, households, societies, and countries in recent years, yet research on the subject is sparse and dispersed among fields. As a result, the current research assessed an empirical financial wellbeing model based on Malaysian young adults' financial knowledge, financial socialization, financial behavior and financial strain. A multi stage random sampling method was performed to draw a representative sample of Malaysian young adults, and 651 duly filled responses were received through the self-administered questionnaire. As stated by the multiple regression results, 16.1% of the total variance of financial well-being was clarified by the model. All four financial well-being determinants examined (financial knowledge, financial socialization, financial behavior, financial strain) were revealed significant, and only financial strain had a negative relationship with financial well-being. Therefore, current study has both the theoretical and practical contributions, and offers experts with actionable insights regarding the determinants of young adults' financial well-being when designing policies to uplift their financial well-being over time.