The role of financial behaviour, financial literacy, and financial stress in explaining the financial well-being of B40 group in Malaysia
Document Type
Article
Publication Date
11-1-2021
Abstract
Understanding the financial well-being of lower-income group is a critical concern of any government as this group struggles most to meet up with their necessities. Despite the significance, little is known about financial well-being of low-income group. This study attempts to investigate the relationship between financial literacy, financial behaviour, financial stress, and financial well-being of B40 group in Malaysia. A total of 412 usable responses was derived from a survey in Klang Valley and analysed the data following partial least squares structural equation modelling (PLS-SEM) techniques. The results demonstrate that financial behaviour is the key antecedent followed by financial stress and financial literacy in predicting financial well-being. Hence, balancing between income and expenditure, managing financial stress, and increasing financial literacy would be necessary to assure financial well-being of lower-income group people. Governmental and institutional interventions are essential to equip the low-income group people with employment opportunities and financial knowledge to manage their basic living standards.
Keywords
Financial well-being, Financial behaviour, Financial literacy, Financial stress, Malaysian B40 income group
Divisions
accounting,developmentstudies,finance
Funders
Fundamental Research Grant Scheme (FRGS) [FP058-2017A]
Publication Title
Future Business Journal
Volume
7
Issue
1
Publisher
Springer