Mediating Effect of Financial Behaviour 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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Bibliographic Details
Published in:	Frontiers in psychology Vol. 13; p. 858630
Main Authors:	Sabri, Mohamad Fazli, Wahab, Rozita, Mahdzan, Nurul Shahnaz, Magli, Amirah Shazana, Rahim, Husniyah Abd
Format:	Journal Article
Language:	English
Published:	Switzerland Frontiers Media S.A 19-05-2022
Subjects:	financial behaviour financial knowledge financial wellbeing locus of control mediating effect Psychology young adults financial behaviour mediating effect locus of control young adults financial knowledge financial wellbeing
Online Access:	Get full text
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Summary:	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.
Bibliography:	ObjectType-Article-1 SourceType-Scholarly Journals-1 ObjectType-Feature-2 content type line 23 Reviewed by: Rajennd Muniady, New Era University College, Malaysia; Fakhrul Anwar Zainol, Sultan Zainal Abidin University, Malaysia; Saif Ullah, Jiangsu University, China This article was submitted to Developmental Psychology, a section of the journal Frontiers in Psychology Edited by: Asyraf Afthanorhan, Sultan Zainal Abidin University, Malaysia
ISSN:	1664-1078 1664-1078
DOI:	10.3389/fpsyg.2022.858630