Research Article Published 31 July 2025

Understanding Financial Literacy and Financial Well-Being Among Young Malaysians

How to Cite

How to Cite

Wan Nawang, W. R. (2025). Understanding Financial Literacy and Financial Well-Being Among Young Malaysians. Journal of Business Management and Accounting, 15(2), 145-165. https://doi.org/10.32890/jbma2025.15.2.4
Wan Rasyidah Wan Nawang
Universiti Sains Islam Malaysia, Malaysia
Full text
PDF View full text 717 KB · 21 pages XML JATS full text 125 KB · machine readable HTML Read online 77 KB
DOI 10.32890/jbma2025.15.2.4 Cite this article
Share this article
Citations
0
No citations recorded yet
Reads
341 +6
Abstract + full text
Downloads
240 +4
PDF and XML

Article

Abstract

While financial well-being among Malaysians is improving due to coordinated efforts by the government and various stakeholders, notable gaps remain, such as poor money management habits and high debt levels, especially among the younger generation. These challenges are largely attributed to limited financial literacy, especially concerning financial awareness. This study seeks to shed light on the financial insights of young Malaysians by exploring the relationships between financial awareness, knowledge, attitudes, behaviors, and financial well-being. An online survey was carried out to gather data. The study utilized partial least squares structural equation modeling (PLS-SEM) to test its hypotheses, engaging 197 respondents. The findings revealed that individuals with strong financial knowledge, shaped by their financial awareness, possess significantly positive financial attitudes and behaviors, ultimately leading to enhanced financial well-being. The study provides meaningful perspectives that can enrich theoretical frameworks surrounding financial literacy, emphasizing the need for a multifaceted approach to promoting financial well-being. The study also offers invaluable information for the government, government agencies, educational institutions, and other stakeholders, to further advance efforts in raising financial awareness. Empowering young adults with financial literacy, encompassing financial awareness, knowledge, attitude, and behavior, is essential for improving the overall financial well-being of Malaysians and addressing the persistent knowledge gap in the country. However, the primary focus should be on continuously reinforcing awareness within this demographic to bridge the knowledge gap.

Keywords
Financial awareness financial knowledge financial attitude financial behavior financial well-being young adults

Metrics & impact

Citations by source

Harvested 08-09-2026

Counts differ by index because each source crawls a different corpus. Crossref counts only registered reference lists; Google Scholar includes theses, preprints and grey literature.

OpenAlex
0
Open corpus, updated daily View →
OpenCitations
0
Open references only View →
Crossref
0
Deposited reference lists only View →
Scopus
0 Not indexed
Indexed titles only View →
Google Scholar
Publishes no citation count that can be read automatically.
Includes theses and preprints Search →
Dimensions
Publishes no citation count that can be read automatically.
Includes policy documents Search →

Reads & downloads

Abstract views 341
PDF downloads 240
XML downloads 0
Full-text HTML 0
Counted under COUNTER Release 5 rules; known robots excluded.

Attention beyond citation

Field-weighted citation impact 0.00

From OpenAlex. A field-weighted impact of 1.00 is the world average for work of the same field, type and year. No Altmetric key is configured, so news, policy and social attention are not shown.

Identifiers
DOI · 10.32890/jbma2025.15.2.4
OpenAlex · W6908483609

References

References 87
Deposited to Crossref with the article DOI
  1. Abdullah, N., Fazli, S. M., & Muhammad Arif, A. M. (2019). The relationship between attitude towards money, financial literacy and debt management with young worker's financial well-being. Pertanika Journal of Social Sciences & Humanities, 27(1), 361-378.
  2. Adiputra, I. G., Suprastha, N., & Tania, L. (2021). The influence of financial knowledge, financial attitude dan locus of control on financial behavior of e-wallet users in Jakarta. The Journal of Contemporary Issues in Business and Government, 27(1), 3318-3332.
  3. Agensi Kaunseling Dan Pengurusan Kredit. (2024, April 24). AKPK: Over 50,000 youths in debt due to credit cards, loans worth close to RM2b in total. https://www.akpk.org.my/akpk-over-50000-youths-debt-due-credit-cards-loans-worth-close-rm2b-total?fbclid=IwZXh0bgNhZW0CMTEAAR0kw5zHIhQZJMET11TVkharzd6bnrkpBg778-GStCNNTou-Erj8ftp2LYM_aem_C6xCCJKkKBD42Tz5eqdRfQ&sfnsn=wa
  4. Astuti, P., Rini, P. L., & Fikri, M. A. (2022). Relationship between financial knowledge, financial attitude and financial skills and millennial investment decisions. Journal of Management and Business Environment (JMBE), 4(1), 55-70. https://doi.org/10.24167/jmbe.v4i1.4762
  5. Atkinson, A., & Messy, F. A. (2012). Measuring financial literacy: Results of the OECD/International Network on Financial Education (INFE) pilot study. OECD Working Papers on Finance, Insurance and Private Pensions, No. 15, OECD Publishing, Paris, https://doi.org/10.1787/20797117
  6. Atkinson, A., & Messy, F. A. (2013). Promoting financial inclusion through financial education: OECD/INFE evidence, policies and practice. https://www.oecd-ilibrary.org/docserver/5k3xz6m88smp-en.pdf?expires=1730265723&id=id&accname=guest&checksum=2510E6B5962F23BC5BA5 60E7E15D44BB
  7. Atmadja, A. T., Saputra, K. A. K., Tama, G. M., & Paranoan, S. (2021). Influence of human resources, financial attitudes, and coordination on cooperative financial management. The Journal of Asian Finance, Economics and Business, 8(2), 563-570. https://doi.org/10.13106/jafeb.2021.vol8.no2.0563
  8. Aubrey, M., Morin, A. J., Fernet, C., & Carbonneau, N. (2022). Financial well-being: Capturing an elusive construct with an optimized measure. Frontiers in Psychology, 13, 935284. https://doi.org/10.3389/fpsyg.2022.935284
  9. Baderol Sham, A. S. (2024, 1 September). Literasi kewangan masyarakat Malaysia membimbangkan. https://dewanekonomi.jendeladbp.my/2024/09/01/8718/
  10. Bai, R. (2023). Impact of financial literacy, mental budgeting and self control on financial wellbeing: Mediating impact of investment decision making. Plos one, 18(11), e0294466. https://doi.org/10.1371/journal.pone.0294466
  11. Bhatia, S., & Singh, S. (2024). Exploring financial well-being of working professionals in the Indian context. Journal of Financial Services Marketing, 29, 474-487. https://doi.org/10.1057/s41264-023-00215-x
  12. Bhushan, P. (2014). Insights into awareness level and investment behaviour of salaried individuals towards financial products. International Journal of Engineering, Business and Enterprise Applications, 8(1), 53-57.
  13. Bhushan, P., & Medury, Y. (2014). An empirical analysis of inter linkages between financial attitudes, financial behaviour and financial knowledge of salaried individuals. Indian Journal of Commerce and Management Studies, 5(3), 58-64.
  14. Blake, S. (2024, 9 February). Gen Z has a serious debt problem. Newsweek. https://www.newsweek.com/gen-z-struggling-pay-debt-student-loans-1868611
  15. Bowen, C. F. (2002). Financial knowledge of teens and their parents. Financial Counseling and Planning, 13(2), 93-102.
  16. Brüggen, E. C., Hogreve, J., Holmlund, M., Kabadayi, S., & Löfgren, M. (2017). Financial well-being: A conceptualization and research agenda. Journal of business research, 79, 228-237. https://doi.org/10.1016/j.jbusres.2017.03.013
  17. Carpena, F., & Zia, B. (2020). The causal mechanism of financial education: Evidence from mediation analysis. Journal of Economic Behavior & Organization, 177, 143-184. https://doi.org/10.1016/j.jebo.2020.05.001
  18. Cohen, J. (1992). Quantitative methods in psychology: A power primer. Psychological Bulletin, 112(1), 155-159.
  19. Cohen, J. (2013). Statistical power analysis for the behavioral sciences. Routledge.
  20. Consumer Financial Protection Bureau (CFPB). (2015). Financial well-being: The goal of financial education. https://www.consumerfinance.gov/data-research/research-reports/financial-well-being/
  21. Dube, V. S., & Asthana, P. K. (2023). Financial knowledge, attitude and behaviour components of financial literacy: A study of Indian higher education students. International Journal of Indian Culture and Business Management, 28(1), 124-143. https://doi.org/10.1504/IJICBM.2023.128488
  22. Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of convenience sampling and purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1-4. https://doi.org/10.11648/j.ajtas.20160501.11
  23. Faturohman, T., Megananda, T. B., & Ginting, H. (2024). Improving financial wellbeing in Indonesia: The role of social media as a mediating factor in financial behavior. Cogent Social Sciences, 10(1), 2319374. https://doi.org/10.1080/23311886.2024.2319374
  24. Federation of Investment Managers Malaysia. (2021). FIMM 2021 investors’ financial literacy survey on UTS, PRS and retirement planning. https://www.fimm.com.my/wp-content/uploads/2023/10/FIMM-Investors-Financial-Literacy-Survey-2021-v2.pdf
  25. Financial Industry Collective Outreach. (2023). https://www.finco.my/finco-survey-highlights-stu dents-lack-of-financial-preparedness-for-transition-to-adulthood/
  26. George-Jackson, C., & Gast, M. J. (2015). Addressing information gaps: Disparities in financial awareness and preparedness on the road to college. Journal of Student Financial Aid, 44(3), 3. https://doi.org/10.55504/0884-9153.1540
  27. Garai-Fodor, M. (2023). Analysis of financially aware consumer segments from the perspective of conscious consumer behaviour. Acta Polytechnica Hungarica, 20(3), 83-100.
  28. Ghazali, M. S., Alwi, S. F. S., Idris, N. H., Sabri, M. F., & Abd Aziz, N. N. (2023). Financial well-being for sustainable development goals (SDGS): Family as the foundation. Journal of Sustainability Science and Management, 18(10), 81-97. http://doi.org/10.46754/jssm.2023.10.006
  29. Ghimire, B., & Dahal, R. (2024). Examining the role of financial awareness, attitude, and knowledge in personal financial planning: A study in the Kathmandu Valley. The International Research Journal of Management Science, 9(1), 85-102. https://doi.org/10.3126/irjms.v9i1.72717
  30. Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014a). A primer on partial least squares structural equation modelling (PLS-SEM). Los Angeles: SAGE Publications.
  31. Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM). 3rd ed. CA, USA: SAGE Publications.
  32. Hair, J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: Updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107-123. https://doi.org/10.1504/IJMDA.2017.087624
  33. Haupt, M. (2021). Measuring financial literacy: The role of knowledge, skills, and attitudes. In The Routledge handbook of financial literacy (pp. 79-95). Routledge.
  34. Henseler, J. F., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43, 115-135. https://doi.org/10.1007/s11747-014-0403-8
  35. Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203
  36. Hair Jr, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014b). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106-121.
  37. Huang, J., Nam, Y., & Sherraden, M. S. (2013). Financial knowledge and child development account policy: A test of financial capability. Journal of Consumer Affairs, 47(1), 1-26. https://doi.org/10.1111/joca.12000
  38. Huston, S. J. (2010). Measuring financial literacy. Journal of Consumer Affairs, 44(2), 296-316. https://doi.org/10.1111/j.1745-6606.2010.01170.x
  39. Jayanthi, M., & Rau, S. S. (2019). Determinants of rural household financial literacy: Evidence from South India. Statistical Journal of the IAOS, 35(2), 299-304. https://doi.org/10.3233/SJI-180438
  40. Katini, K., & Amalanathan, S. (2022). Exploring relationships between financial literacy and environmental sustainability among the tribals through structural equation modelling. Journal of Positive School Psychology, 6(8), 5940-5959.
  41. Kefela, G. (2011). Implications of financial literacy in developing countries. African Journal of Business Management, 5(9), 3699.
  42. Khairi, M. L. (2024, September 21). PTPTN to take action against 430,000 defaulters [WATCH]. New Straits Times. https://www.nst.com.my/news/nation/2024/09/1108779/ptptn-take-action-against-430000-defaulters-watch Khazanah Research Institute. (March 2024). The financialization of our lives: Values and trade-offs. https://www.krinstitute.org/assets/contentMS/img/template/editor/KRI%20Report_The%20Fi nancialization%20of%20our%20Lives.pdf
  43. Kock, N. (2017). Common method bias: a full collinearity assessment method for PLS-SEM. Partial least squares path modeling: Basic concepts, methodological issues and applications, 245-257. https://doi.org/10.1007/978-3-319-64069-3_11
  44. Kock, N. (2020). Harman’s single factor test in PLS-SEM: Checking for common method bias. Data Analysis Perspectives Journal, 2(2), 1-6.
  45. Lavonda, P., Setyawan, I. R., & Ekadjadja, M. (2021). Determinants of financial well-being among young workers in Jakarta during the Covid-19 pandemic. Jurnal Ekonomi, 26(2), 305-320. https://doi.org/10.24912/je.v26i2.752
  46. Loza, R., Romaní, G., Castañeda, W., & Arias, G. (2024). Influence of skills and knowledge on the financial attitude of university students. Tec Empresarial, 18(1), 65-83. http://dx.doi.org/10.18845/te.v18i1.7002
  47. Lusardi, A., & Streeter, J. L. (2023). Financial literacy and financial well-being: Evidence from the US. Journal of Financial Literacy and Wellbeing, 1(2), 169-198. https://doi.org/10.1017/flw.2023.13
  48. Malaysian Department of Insolvency. (2024). Bankruptcy statistic 2024. https://www.mdi.gov.my/index.php/legislation/statistics/75-bankruptcy/2401-bankruptcy-statistic-2024
  49. Marini, M., Yusmaniarti, Y., Faradilla, I., & Setiorini, H. (2024). Measuring the financial performance of MSMEs from the perspective of financial literacy, financial inclusion and financial technology. EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi dan Bisnis, 12(1), 285-296. https://doi.org/10.37676/ekombis.v12i1.5323
  50. Mashizha, M., & Sibanda, M. (2017). The link between financial knowledge, financial product awareness and utilization: A study among small and medium enterprises in Zimbabwe. International Journal of Economics and Financial Issues, 7(6), 97-103.
  51. Mohajan, H. K. (2020). Quantitative research: A successful investigation in natural and social sciences. Journal of Economic Development, Environment and People, 9(4), 50-79.
  52. Muñoz-Céspedes, E., Ibar-Alonso, R., & Cuerdo-Mir, M. (2024). Individual entrepreneurial behavior and financial literacy. International Entrepreneurship and Management Journal, 20(3), 2263-2285. https://doi.org/10.1007/s11365-023-00936-4
  53. Murugiah, L., Ismail, R., Taib, H. M., Applanaidu, S. D., & Long, M. N. H. B. H. (2023). Children's understanding of financial literacy and parents' choice of financial knowledge learning methods in Malaysia. MethodsX, 11, 102383. https://doi.org/10.1016/j.mex.2023.102383
  54. Nga, J. K., Yong, L. H., & Sellappan, R. D. (2010). A study of financial awareness among youths. Young Consumers, 11(4), 277-290. https://doi.org/10.1108/17473611011093916
  55. OECD. (2013). Financial literacy and inclusion: Results of OECD/INFE survey across countries and by gender. Paris: OECD Centre.
  56. Osborne, H. (2024, 18 March). Record 6.7m people in Britain are in financial difficulty, warns debt charity. The Guardian. https://www.theguardian.com/money/2024/mar/18/record-numbers-of-uk-people-in-debt-warns-charity
  57. Pankow, D. (2012). Financial values, attitudes, and goals. Family Economic Specialist. NDSU.
  58. Pham, T. H., Yap, K., & Dowling, N. A. (2012). The impact of financial management practices and financial attitudes on the relationship between materialism and compulsive buying. Journal of Economic Psychology, 33(3), 461-470. https://doi.org/10.1016/j.joep.2011.12.007
  59. Philippas, N. D., & Avdoulas, C. (2021). Financial literacy and financial well-being among generation-Z university students: Evidence from Greece. In Financial Literacy and Responsible Finance in the FinTech Era (pp. 64-85). Routledge.
  60. Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879-903. https://psycnet.apa.org/doi/10.1037/0021-9010.88.5.879
  61. Prakash, N., & Hawaldar, A. (2024). Investigating the determinants of financial well-being: A SEM approach. Business Perspectives and Research, 12(1), 11-25. https://doi.org/10.1177/22785337221148253
  62. Prempeh, A., Osei, B., & Osei, F. (2024). Financial Literacy and Saving behaviour among tertiary students. Journal of Business Management and Accounting, 14(1), 115-142. https://doi.org/10.32890/jbma2024.14.1.5
  63. Rai, K., Dua, S., & Yadav, M. (2019). Association of financial attitude, financial behaviour and financial knowledge towards financial literacy: A structural equation modeling approach. FIIB Business Review, 8(1), 51-60. https://doi.org/10.1177/2319714519826651
  64. Renaldo, N., Sudarno, S., & Marice, H. B. (2020). The improvement of generation Z financial well-being in Pekanbaru. Jurnal Manajemen Dan Kewirausahaan, 22(2), 142-151. https://doi.org/10.9744/jmk.22.2.142-
  65. RinggitPlus. (2023). Ringgit Plus Malaysian financial literacy survey 2023. https://ringgitplus.com/en/blog/wp-content/uploads/2023/10/RMFLS-2023-Survey-Report-FINAL.pdf
  66. Riitsalu, L., Sulg, R., Lindal, H., Remmik, M., & Vain, K. (2024). From security to Freedom—The meaning of financial well-being changes with age. Journal of Family and Economic Issues, 45(1), 56-69. https://doi.org/10.1007/s10834-023-09886-z
  67. Rufino, H., Wage, M. F., Saludez, K., Anunciacion, J. A., Imperial Jr, A., & Castillo, L. (2024). Financial behavior and financial well-being of working students in a State University: Financial literacy as moderating factor. This paper is published at Review of Integrative Business and Economics Research. https://ssrn.com/abstract=4906363
  68. Sabri, M. F., Anthony, M., Law, S. H., Rahim, H. A., Burhan, N. A. S., & Ithnin, M. (2024). Impact of financial behaviour on financial well-being: evidence among young adults in Malaysia. Journal of Financial Services Marketing, 29(3), 788-807. https://doi.org/10.1057/s41264-023-00234-8
  69. Sconti, A. (2024). Having trouble making ends meet? Financial literacy makes the difference. Italian Economic Journal, 10(1), 377-408. https://doi.org/10.1007/s40797-022-00212-4
  70. Securities Commission Malaysia. (2022). Youth capital market survey a Malaysian perspective. https://www.sc.com.my/api/documentms/download.ashx?id=9f1ac661-f250-4b0d-8706-c45cbac9906e
  71. Setiyani, R., & Solichatun, I. (2019). Financial well-being of college students: An empirical study on mediation effect of financial behavior. KnE Social Sciences, 451-474. https://doi.org/10.18502/kss.v3i11.4026
  72. Shah, B., & Tiwari, U. K. (2021). Consumers' attitude towards online shopping in Janakpurdham. Journal of Management, 4(1), 31-50. https://doi.org/10.3126/jom.v4i1.38660
  73. Sharmila, & Mittal, I. (2023). Examine the influence of financial knowledge, attitude, and capability on financial behaviour. International Journal of Research in Finance and Management, 6(1), 426-434. https://doi.org/10.33545/26175754.2023.v6.i1d.256
  74. She, L., Waheed, H., Lim, W. M., & E-Vahdati, S. (2023), Young adults’ financial well-being: Current insights and future directions. International Journal of Bank Marketing, 41(2), 333-368. https://doi.org/10.1108/IJBM-04-2022-0147
  75. Sumaiah, M. S., & Jayaprada, N. (2019). Impact of financial awareness and knowledge on financial behaviour and empowerment in women. International Journal of Management, Technology and Engineering, 9(1), 470-480. https://doi.org/16.10089.IJMTE.2019.V9I01.18.27457
  76. Susanto, Y. B., Setiawan, J., & Ariyanto, S. (2022). Financial planning for millennials and gen-z (study of millennials and gen-z financial behavior). Ultima Management: Jurnal Ilmu Manajemen, 14(1), 156-168. https://doi.org/10.31937/manajemen.v14i1.2533
  77. Tang, N. (2024). Financial awareness and its role in financial behavior. https://gflec.org/wp-content/uploads/2024/05/Tang-paper.pdf
  78. Taft, M. K., Hosein, Z. Z., Mehrizi, S. M. T., & Roshan, A. (2013). The relation between financial literacy, financial wellbeing and financial concerns. International Journal of Business and Management, 8(11), 63-75. https://doi.org/10.5539/IJBM.V8N11P63
  79. The World Bank (2013). Financial capability surveys around the world - Why financial capability is important and how surveys can help. https://documents1.worldbank.org/curated/fr/693871468340173654/pdf/807670WP0P14400 Box0379820B00PUBLIC0.pdf
  80. Utkarsh, Pandey, A., Ashta, A., Spiegelman, E., & Sutan, A. (2020). Catch them young: Impact of financial socialization, financial literacy and attitude towards money on financial well‐being of young adults. International Journal of Consumer Studies, 44(6), 531-541. https://doi.org/10.1111/ijcs.12583
  81. Xiao, J. J. (2008). Applying behavior theories to financial behavior. In Handbook of consumer finance research (pp. 69-81). New York, NY: Springer New York. https://doi.org/10.1007/978-0-387-75734-6_5
  82. Xiao, J. J., Sorhaindo, B., & Garman, E. T. (2006). Financial behaviours of consumers in credit counselling. International Journal of Consumer Studies, 30(2), 108-121. https://doi.org/10.1111/j.1470-6431.2005.00455.x
  83. Xiao, J. J., Tang, C., & Shim, S. (2009). Acting for happiness: Financial behavior and life satisfaction of college students. Social indicators Research, 92, 53-68. https://doi.org/10.1007/s11205-008-9288-6
  84. Yahaya, R., Zainol, Z., Osman, J. H., Abidin, Z., & Ismail, R. (2019). The effect of financial knowledge and financial attitudes on financial behavior among university students. International Journal of Academic Research in Business and Social Sciences, 9(8), 22-32. http://dx.doi.org/10.6007/IJARBSS/v9-i8/6205
  85. Ying, L. S., & Jamal, A. A. A. (2023). A Study on financial product knowledge, attitudes and behaviours among Malaysian young working adults. Malaysian Journal of Social Sciences and Humanities (MJSSH), 8(1), e002079-e002079. https://doi.org/10.47405/mjssh.v8i1.2079
  86. Yong, C. C., Yew, S. Y., & Wee, C. K. (2018). Financial knowledge, attitude and behaviour of young working adults in Malaysia. Institutions and Economies, 10(4).
  87. Varatharaja, M. (2024, 1 October). BNPL prevalence among young adults, low level of financial literacy worrying - Amir Hamzah. https://theedgemalaysia.com/node/728605