IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-666-6_17.html

Modelling Financial Preparedness of Low-Income Households Towards Social and Economic Well Being

In: Proceedings of the 12th International Conference on Business, Accounting, Finance and Economics (BAFE 2024)

Author

Listed:
  • Nur Sofea Syafiqah Zunaedi

    (Universiti Teknologi Mara)

  • Nurul Syifaa Mohd Shakil

    (Universiti Teknologi Mara Cawangan Selangor Kampus Puncak Alam Bandar Puncak Alam)

Abstract

Financial preparedness refers to managing the cost of living to sustain standard of living and act as an aid during downtime. To achieve financial preparedness, the process of planning and controlling the expenditure needs to be systematic to balance with income earning. In Malaysia more than 50% of households do not meet proper financial preparedness. Low-income earners or B40 is the crucial individual that need to have their financial preparedness as their backup during retirement and emergencies. The ability to manage finances will lead to better life and prevent fall into poverty. B40 groups are encouraged to prepare their own finances instead of relaying on government assistance solely because government assistance might be late and possibly once in a blue moon. Every household, especially the B40 group needs to prepare their finances at least 6 months ahead as their protection. However, B40 groups are unable to afford and prepare for it. They are not ready for outbreak shock or economic downturn. Low-income households are struggling with their survivability in daily necessity and basic needs but at the same time they are not preparing financially for the future. Every household, especially those in the B40 group, needs to be financially prepared in order to afford their daily expenses, particularly for health, retirement and emergencies. The life-cycle model and permanent income hypothesis have similar predictions that stated consumptions can affect a household’s income. Thus, the purpose of this study is to examine relationship financial preparedness among B40 population households in Selangor.

Suggested Citation

  • Nur Sofea Syafiqah Zunaedi & Nurul Syifaa Mohd Shakil, 2025. "Modelling Financial Preparedness of Low-Income Households Towards Social and Economic Well Being," Advances in Economics, Business and Management Research, in: Abdelhak Senadjki & Fanyu Chen & William Keng Soon Choo & Voon Hsien Lee & Chooi Yi Wei (ed.), Proceedings of the 12th International Conference on Business, Accounting, Finance and Economics (BAFE 2024), pages 285-293, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-666-6_17
    DOI: 10.2991/978-94-6463-666-6_17
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:advbcp:978-94-6463-666-6_17. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.