Exploring the underlying factors influencing the financial capability and financial wellness of young adults in Malaysia

Young adults, today, are faced with making difficult financial decisions that have considerable long-term economic and societal effects. There is ample evidence that young Malaysian adults are particularly vulnerable to make poor financial decisions as they lack the financial capability to do so, he...

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Main Author:	Dang Siew Ping, Selina
Format:	Thesis
Language:	eng eng eng
Published:	2021
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/10438/1/permission%20to%20deposit-not%20allow-900088.pdf https://etd.uum.edu.my/10438/2/s900088_01.pdf https://etd.uum.edu.my/10438/3/s900088_02.pdf
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id	my-uum-etd.10438
record_format	uketd_dc
spelling	my-uum-etd.104382023-03-29T01:30:38Z Exploring the underlying factors influencing the financial capability and financial wellness of young adults in Malaysia 2021 Dang Siew Ping, Selina Ahmad Zaluki, Nurwati Ashikkin Ramayah, T. Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance Young adults, today, are faced with making difficult financial decisions that have considerable long-term economic and societal effects. There is ample evidence that young Malaysian adults are particularly vulnerable to make poor financial decisions as they lack the financial capability to do so, hence compromising their overall sense of financial wellness. However, young adults’ financial capability and financial wellness have been a relatively under-researched area in Malaysia. Using a hierarchical reflective-formative component model, this study tested an augmented financial capability model underpinned by the Theory of Consumer Socialization, the Theory of Planned Behaviour, the Social Cognitive Theory and the Developmental Model of Financial Capability to explore the underlying factors influencing the financial capability and financial wellness of young Malaysian adults. 787 questionnaires were distributed in public and private universities in Malaysia. 645 were returned, giving a response rate of 82%. After the data screening and cleaning process in SPSS version 22, 530 data sets were exported into SmartPLS v.3.3.2 to assess the measurement and structural model using the extended repeated indicator approach. Four hypotheses were tested. All twelve structural model paths were positive and statistically significant. Higher levels of parental financial socialization were found to result in higher levels of financial knowledge, more favourable financial attitudes and financially capable behaviours in young Malaysian adults. Higher levels of financial knowledge had a significant relationship with the financial self-beliefs of young adults in Malaysia such that it predicted more favourable financial attitudes, along with higher values of perceived behavioural control, higher measures of financial self-efficacy, and financially capable behaviour. The results show that more positive financial attitudes, higher values of parental subjective norms, higher degrees of perceived behavioural control and financial self-efficacy predicted a higher instance of financially capable behaviour. The prevalence of a financially capable behaviour predicts better levels of the financial wellness of young adults in Malaysia. 2021 Thesis https://etd.uum.edu.my/10438/ https://etd.uum.edu.my/10438/1/permission%20to%20deposit-not%20allow-900088.pdf text eng staffonly https://etd.uum.edu.my/10438/2/s900088_01.pdf text eng staffonly https://etd.uum.edu.my/10438/3/s900088_02.pdf text eng staffonly other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Ahmad Zaluki, Nurwati Ashikkin Ramayah, T.
topic	HG Finance
spellingShingle	HG Finance Dang Siew Ping, Selina Exploring the underlying factors influencing the financial capability and financial wellness of young adults in Malaysia
description	Young adults, today, are faced with making difficult financial decisions that have considerable long-term economic and societal effects. There is ample evidence that young Malaysian adults are particularly vulnerable to make poor financial decisions as they lack the financial capability to do so, hence compromising their overall sense of financial wellness. However, young adults’ financial capability and financial wellness have been a relatively under-researched area in Malaysia. Using a hierarchical reflective-formative component model, this study tested an augmented financial capability model underpinned by the Theory of Consumer Socialization, the Theory of Planned Behaviour, the Social Cognitive Theory and the Developmental Model of Financial Capability to explore the underlying factors influencing the financial capability and financial wellness of young Malaysian adults. 787 questionnaires were distributed in public and private universities in Malaysia. 645 were returned, giving a response rate of 82%. After the data screening and cleaning process in SPSS version 22, 530 data sets were exported into SmartPLS v.3.3.2 to assess the measurement and structural model using the extended repeated indicator approach. Four hypotheses were tested. All twelve structural model paths were positive and statistically significant. Higher levels of parental financial socialization were found to result in higher levels of financial knowledge, more favourable financial attitudes and financially capable behaviours in young Malaysian adults. Higher levels of financial knowledge had a significant relationship with the financial self-beliefs of young adults in Malaysia such that it predicted more favourable financial attitudes, along with higher values of perceived behavioural control, higher measures of financial self-efficacy, and financially capable behaviour. The results show that more positive financial attitudes, higher values of parental subjective norms, higher degrees of perceived behavioural control and financial self-efficacy predicted a higher instance of financially capable behaviour. The prevalence of a financially capable behaviour predicts better levels of the financial wellness of young adults in Malaysia.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Dang Siew Ping, Selina
author_facet	Dang Siew Ping, Selina
author_sort	Dang Siew Ping, Selina
title	Exploring the underlying factors influencing the financial capability and financial wellness of young adults in Malaysia
title_short	Exploring the underlying factors influencing the financial capability and financial wellness of young adults in Malaysia
title_full	Exploring the underlying factors influencing the financial capability and financial wellness of young adults in Malaysia
title_fullStr	Exploring the underlying factors influencing the financial capability and financial wellness of young adults in Malaysia
title_full_unstemmed	Exploring the underlying factors influencing the financial capability and financial wellness of young adults in Malaysia
title_sort	exploring the underlying factors influencing the financial capability and financial wellness of young adults in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2021
url	https://etd.uum.edu.my/10438/1/permission%20to%20deposit-not%20allow-900088.pdf https://etd.uum.edu.my/10438/2/s900088_01.pdf https://etd.uum.edu.my/10438/3/s900088_02.pdf
_version_	1776103816947564544

Exploring the underlying factors influencing the financial capability and financial wellness of young adults in Malaysia

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