Mediating effect of financial behavior on the relationship between perceived financial wellbeing and its factors among low-income young adults in Malaysia

The main objective of this study is to investigate the associations between financial knowledge, locus of control (LOC) and perceived financial wellbeing (FWB) with financial behaviour as a mediator among young adults from low-income households in Malaysia, controlling for education and income. The...

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Main Authors: Sabri, Mohamad Fazli, Wahab, Rozita, Mahdzan, Nurul Shahnaz, Magli, Amirah Shazana, Abd Rahim, Husniyah
Format: Article
Published: Frontiers Research Foundation 2022
Online Access:http://psasir.upm.edu.my/id/eprint/102163/
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author Sabri, Mohamad Fazli
Wahab, Rozita
Mahdzan, Nurul Shahnaz
Magli, Amirah Shazana
Abd Rahim, Husniyah
author_facet Sabri, Mohamad Fazli
Wahab, Rozita
Mahdzan, Nurul Shahnaz
Magli, Amirah Shazana
Abd Rahim, Husniyah
author_sort Sabri, Mohamad Fazli
building UPM Institutional Repository
collection Online Access
description The main objective of this study is to investigate the associations between financial knowledge, locus of control (LOC) and perceived financial wellbeing (FWB) with financial behaviour as a mediator among young adults from low-income households in Malaysia, controlling for education and income. The sample of this study consisted of 482 young adults from five different zones in Peninsular and East Malaysia, which were selected using a multi-stage sampling technique. Data were collected using a set of questionnaire-based surveys. The data were then analysed using Covariance Based Structural Equation Modelling (SEM). The study found that financial knowledge and external LOC as well as financial behaviour were significantly correlated with the perceived FWB of low-income young adults in Malaysia. The results also revealed that financial behaviour mediates the influence by financial knowledge and internal LOC on perceived FWB controlling for education and income. The findings of this study provide insights into the factors of perceived FWB of low-income young adults in Peninsular and East Malaysia. Policymakers, government and non-government organisations may utilise this study to develop new policies, financial programmes or campaigns to enhance the FWB of low-income young adults in Malaysia.
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institution Universiti Putra Malaysia
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spelling upm-1021632023-06-19T08:15:46Z http://psasir.upm.edu.my/id/eprint/102163/ Mediating effect of financial behavior on the relationship between perceived financial wellbeing and its factors among low-income young adults in Malaysia Sabri, Mohamad Fazli Wahab, Rozita Mahdzan, Nurul Shahnaz Magli, Amirah Shazana Abd Rahim, Husniyah The main objective of this study is to investigate the associations between financial knowledge, locus of control (LOC) and perceived financial wellbeing (FWB) with financial behaviour as a mediator among young adults from low-income households in Malaysia, controlling for education and income. The sample of this study consisted of 482 young adults from five different zones in Peninsular and East Malaysia, which were selected using a multi-stage sampling technique. Data were collected using a set of questionnaire-based surveys. The data were then analysed using Covariance Based Structural Equation Modelling (SEM). The study found that financial knowledge and external LOC as well as financial behaviour were significantly correlated with the perceived FWB of low-income young adults in Malaysia. The results also revealed that financial behaviour mediates the influence by financial knowledge and internal LOC on perceived FWB controlling for education and income. The findings of this study provide insights into the factors of perceived FWB of low-income young adults in Peninsular and East Malaysia. Policymakers, government and non-government organisations may utilise this study to develop new policies, financial programmes or campaigns to enhance the FWB of low-income young adults in Malaysia. Frontiers Research Foundation 2022-05-19 Article PeerReviewed Sabri, Mohamad Fazli and Wahab, Rozita and Mahdzan, Nurul Shahnaz and Magli, Amirah Shazana and Abd Rahim, Husniyah (2022) Mediating effect of financial behavior on the relationship between perceived financial wellbeing and its factors among low-income young adults in Malaysia. Frontiers in Psychology, 13. pp. 1-16. ISSN 1664-1078 https://www.frontiersin.org/articles/10.3389/fpsyg.2022.858630/full 10.3389/fpsyg.2022.858630
spellingShingle Sabri, Mohamad Fazli
Wahab, Rozita
Mahdzan, Nurul Shahnaz
Magli, Amirah Shazana
Abd Rahim, Husniyah
Mediating effect of financial behavior on the relationship between perceived financial wellbeing and its factors among low-income young adults in Malaysia
title Mediating effect of financial behavior on the relationship between perceived financial wellbeing and its factors among low-income young adults in Malaysia
title_full Mediating effect of financial behavior on the relationship between perceived financial wellbeing and its factors among low-income young adults in Malaysia
title_fullStr Mediating effect of financial behavior on the relationship between perceived financial wellbeing and its factors among low-income young adults in Malaysia
title_full_unstemmed Mediating effect of financial behavior on the relationship between perceived financial wellbeing and its factors among low-income young adults in Malaysia
title_short Mediating effect of financial behavior on the relationship between perceived financial wellbeing and its factors among low-income young adults in Malaysia
title_sort mediating effect of financial behavior on the relationship between perceived financial wellbeing and its factors among low-income young adults in malaysia
url http://psasir.upm.edu.my/id/eprint/102163/
http://psasir.upm.edu.my/id/eprint/102163/
http://psasir.upm.edu.my/id/eprint/102163/