Empowering financial well-being through life skills: enhancing the economic resilience of B40 households in Malaysia

In 2020, the B40 group in Malaysia, comprising around 2.7 million households earning less than RM 4,850 (US$1,045) per month, faced significant economic and social challenges. Key issues include limited access to education, healthcare, affordable housing, and rising living costs. Financial managemen...

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Main Authors: Sabri, Mohamad Fazli, Ahmad Suhaimi, Siti Shazwani, Nazuri, Nur Shuhamin, Law, Siong Hook, Magli, Amirah Shazana
Format: Article
Language:English
Published: Universiti Putra Malaysia 2025
Online Access:http://psasir.upm.edu.my/id/eprint/121017/
http://psasir.upm.edu.my/id/eprint/121017/1/121017.pdf
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author Sabri, Mohamad Fazli
Ahmad Suhaimi, Siti Shazwani
Nazuri, Nur Shuhamin
Law, Siong Hook
Magli, Amirah Shazana
author_facet Sabri, Mohamad Fazli
Ahmad Suhaimi, Siti Shazwani
Nazuri, Nur Shuhamin
Law, Siong Hook
Magli, Amirah Shazana
author_sort Sabri, Mohamad Fazli
building UPM Institutional Repository
collection Online Access
description In 2020, the B40 group in Malaysia, comprising around 2.7 million households earning less than RM 4,850 (US$1,045) per month, faced significant economic and social challenges. Key issues include limited access to education, healthcare, affordable housing, and rising living costs. Financial management is crucial for this group to achieve stability and well-being. This study explores the relationship between financial knowledge, locus of control, financial behaviour, life skills, and the financial well-being of B40 households. Data was collected through a cross-sectional study from 1,948 B40 households in five states across Peninsular Malaysia, Sabah, and Sarawak using cluster sampling. SEM-PLS analysis revealed a strong positive relationship between financial knowledge, locus of control, and financial well-being. Additionally, financial behaviour was found to mediate the link between financial knowledge, locus of control, and financial well-being. Life skills further moderated these relationships, emphasizing their importance in improving financial outcomes. The findings contribute to the theoretical understanding of financial well-being and provide actionable insights for policymakers and organizations to design programs aimed at enhancing the financial resilience of B40 households in Malaysia.
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spelling upm-1210172025-10-22T03:09:21Z http://psasir.upm.edu.my/id/eprint/121017/ Empowering financial well-being through life skills: enhancing the economic resilience of B40 households in Malaysia Sabri, Mohamad Fazli Ahmad Suhaimi, Siti Shazwani Nazuri, Nur Shuhamin Law, Siong Hook Magli, Amirah Shazana In 2020, the B40 group in Malaysia, comprising around 2.7 million households earning less than RM 4,850 (US$1,045) per month, faced significant economic and social challenges. Key issues include limited access to education, healthcare, affordable housing, and rising living costs. Financial management is crucial for this group to achieve stability and well-being. This study explores the relationship between financial knowledge, locus of control, financial behaviour, life skills, and the financial well-being of B40 households. Data was collected through a cross-sectional study from 1,948 B40 households in five states across Peninsular Malaysia, Sabah, and Sarawak using cluster sampling. SEM-PLS analysis revealed a strong positive relationship between financial knowledge, locus of control, and financial well-being. Additionally, financial behaviour was found to mediate the link between financial knowledge, locus of control, and financial well-being. Life skills further moderated these relationships, emphasizing their importance in improving financial outcomes. The findings contribute to the theoretical understanding of financial well-being and provide actionable insights for policymakers and organizations to design programs aimed at enhancing the financial resilience of B40 households in Malaysia. Universiti Putra Malaysia 2025 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/121017/1/121017.pdf Sabri, Mohamad Fazli and Ahmad Suhaimi, Siti Shazwani and Nazuri, Nur Shuhamin and Law, Siong Hook and Magli, Amirah Shazana (2025) Empowering financial well-being through life skills: enhancing the economic resilience of B40 households in Malaysia. International Journal of Economics and Management, 19 (1). pp. 1-19. ISSN 1823-836X; eISSN: 2600-9390 http://www.ijem.upm.edu.my/vol19no1/1)%20Empowering%20Financial%20Well-Being.pdf 10.47836/ijeam.19.1.01
spellingShingle Sabri, Mohamad Fazli
Ahmad Suhaimi, Siti Shazwani
Nazuri, Nur Shuhamin
Law, Siong Hook
Magli, Amirah Shazana
Empowering financial well-being through life skills: enhancing the economic resilience of B40 households in Malaysia
title Empowering financial well-being through life skills: enhancing the economic resilience of B40 households in Malaysia
title_full Empowering financial well-being through life skills: enhancing the economic resilience of B40 households in Malaysia
title_fullStr Empowering financial well-being through life skills: enhancing the economic resilience of B40 households in Malaysia
title_full_unstemmed Empowering financial well-being through life skills: enhancing the economic resilience of B40 households in Malaysia
title_short Empowering financial well-being through life skills: enhancing the economic resilience of B40 households in Malaysia
title_sort empowering financial well-being through life skills: enhancing the economic resilience of b40 households in malaysia
url http://psasir.upm.edu.my/id/eprint/121017/
http://psasir.upm.edu.my/id/eprint/121017/
http://psasir.upm.edu.my/id/eprint/121017/
http://psasir.upm.edu.my/id/eprint/121017/1/121017.pdf