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Financial Knowledge and Behaviour of Working Adults in Malaysia

Author

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  • Yiing Jia Loke

    (The author is at the Universiti Sains Malaysia, Ph: 604-653 4615, email: yjloke@usm.my)

Abstract

Financial education is a key intervention strategy in improving consumers’ financial knowledge, but exogenous factors such as cultural differences and socio-economic factors can also affect the levels of financial knowledge. On using an ordered probit model on primary data comprising working adults in Malaysia, this study found that financial illiteracy cuts across gender and age but education, ethnicity, type of profession and the availability of government pension have significant effects on levels of financial knowledge. Furthermore, while most financial behaviour such as budgeting, investments and preparing for financial emergencies is significantly affected by levels of financial knowledge, being in financial distress is not affected by financial knowledge. JEL Classification: D14, D91

Suggested Citation

  • Yiing Jia Loke, 2015. "Financial Knowledge and Behaviour of Working Adults in Malaysia," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 9(1), pages 18-38, February.
    • Handle: RePEc:sae:mareco:v:9:y:2015:i:1:p:18-38
    DOI: 10.1177/0973801014557392
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    References listed on IDEAS

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    Cited by:

    1. Long She & Ratneswary Rasiah & Marc Arul Weissmann & Harpaljit Kaur, 2024. "Using the Theory of Planned Behaviour to Explore Predictors of Financial Behaviour Among Working Adults in Malaysia," FIIB Business Review, , vol. 13(1), pages 118-135, January.
    2. Nur Hafidzah Idris* & Melissa Faisal Wee & Shafinar Ismail & Khairunnisa Abd Samad, 2018. "Financial Knowledge, Debt Literacy and Over-Indebtedness," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 22-29:3.
    3. Adam Ndou, 2023. "Parental Financial Socialisation and Financial Knowledge: A Structural Equation Modelling Analysis," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 16(1), pages 27-39, October.
    4. Mohamad Fazli Sabri & Mas Ayu Said & Amirah Shazana Magli & Tan Maw Pin & Hussein Rizal & Nithiah Thangiah & Muslimah Ithnin & Hazreen Abdul Majid & Rozmi Ismail & Tin Tin Su & Abdul Rahim Husniyah, 2022. "Exploring the Relationships of Financial Literacy and Financial Behaviour with Health-Related Quality of Life (HRQOL) among the Low-Income Working Population in Malaysia during the COVID-19 Pandemic," IJERPH, MDPI, vol. 19(19), pages 1-15, September.
    5. Mohammad Tariqul Islam Khan & Siow-Hooi Tan & Gerald Goh Guan Gan, 2019. "Advanced Financial Literacy of Malaysian Gen Y Investors and Its Consequences," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 13(1), pages 83-108, February.
    6. Cesar Leandro, Julio & Botelho, Delane, 2022. "Consumer over-indebtedness: A review and future research agenda," Journal of Business Research, Elsevier, vol. 145(C), pages 535-551.
    7. Saeed Pahlevan Sharif & Ashraf Sadat Ahadzadeh & Jason James Turner, 2020. "Gender Differences in Financial Literacy and Financial Behaviour Among Young Adults: The Role of Parents and Information Seeking," Journal of Family and Economic Issues, Springer, vol. 41(4), pages 672-690, December.

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    More about this item

    Keywords

    Personal Finance; Financial Knowledge; Financial Literacy; Financial Education; Socio-economic Factors;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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