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The Influence on Financial Literacy on Personal Financial Decision-Making Among Teenagers

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  • Norzitah Abdul Karim

    (Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Puncak Alam, Malaysia)

  • Zainora Ab Wahid

    (Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Puncak Alam, Malaysia)

  • Sharifah Heryati Syed

    (Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Puncak Alam, Malaysia)

  • Siti Aminah Mainal

    (Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Puncak Alam, Malaysia)

Abstract

This study aims to investigate the influence of financial literacy on the personal financial decisions among teenagers in East Malaysia. This study employed financial literacy module which constitutes the financial education provided to teenagers in East Malaysia. Before and after the deployment of this financial literacy module, this study distributed two sets of questionnaires to gauge the level of financial literacy among these teenagers prior and post implementation of the module. These questionnaires were physically distributed and collected to a total of 140 respondents in East Malaysia. The findings revealed that there is a significant difference in the level of financial decision among these teenagers after deployment of financial literacy module. These teenagers reported increased in understanding, confidence and satisfaction upon making financial decisions. The results suggested that financial literacy module is beneficial in impacting good financial behavior among these teenagers. The results implied that good financial behavior which will affect the financial decisions could be instill at the earliest age. Additionally, the implication for more module or subjects to be taught at the secondary level on the financial literacy, However, the level of knowledge should match the capacity of these teenagers making a simple yet important financial decision. With the increasing awareness of financial literacy, it is hoped that when these teenagers grow up, they can be more informed adults on financial decisions. It is also hoped that the level of savings, investment and other financial decisions could be improved at the national level. This study differs from previous research in that it is enriched by offering a more rigorous study which looks at the respondents before and after deploying the financial literacy module.

Suggested Citation

  • Norzitah Abdul Karim & Zainora Ab Wahid & Sharifah Heryati Syed & Siti Aminah Mainal, 2024. "The Influence on Financial Literacy on Personal Financial Decision-Making Among Teenagers," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3s), pages 6267-6274, December.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:3s:p:6267-6274
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    References listed on IDEAS

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    1. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    2. Daniel Fernandes & John G. Lynch & Richard G. Netemeyer, 2014. "Financial Literacy, Financial Education, and Downstream Financial Behaviors," Management Science, INFORMS, vol. 60(8), pages 1861-1883, August.
    3. Justine S. Hastings & Brigitte C. Madrian & William L. Skimmyhorn, 2013. "Financial Literacy, Financial Education, and Economic Outcomes," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 347-373, May.
    4. Brounen, Dirk & Koedijk, Kees G. & Pownall, Rachel A.J., 2016. "Household financial planning and savings behavior," Journal of International Money and Finance, Elsevier, vol. 69(C), pages 95-107.
    5. Annamaria Lusardi, 2019. "Financial literacy and the need for financial education: evidence and implications," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 155(1), pages 1-8, December.
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