The role of financial behaviour, financial literacy, and financial stress in explaining the financial well-being of B40 group in Malaysia | Future Business Journal | Full Text
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.
Introduction Financial well-being is an essential concern for individuals, societies as well as for countries. Generally, well-being encompasses the broad aspect of overall living quality which includes the level of income, job security, housing facilities, quality of living standard, healthcare access, education facilities, environment and social bonding, etc. [39]. Financial well-being is one of the critical aspects of overall well-being [10]. Malaysia is doing good concerning the UN Sustainable Development Goals (SDGs), as there is remarkably a low level of unemployment rate,…
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