Exploring financial well-being among emerging adults in the Malaysian workforce: A family resource management perspective
DOI:
https://doi.org/10.24200/jonus.vol10iss2pp273-299Abstract
Background and Purpose: This study explores the determinants of the financial well-being (FWB) of emerging adults in the Malaysian workforce, as derived from the Family Resource Management Model framework. Financial well-being is a multidimensional concept encompassing financial behaviour, knowledge, and socialisation influences. Drawing on the literature review, the study identifies global trends and local challenges impacting financial health, emphasising the critical role of financial knowledge and responsible financial behaviour. Key factors such as self-control, parental influence, and financial knowledge are examined to understand their implications on the financial well-being of young adults aged 19-29 in the Malaysian workforce.
Methodology: This research employed a purposeful, cross-sectional survey aimed at emerging adults aged 19 to 29 from specific states across five regions of Malaysia. Respondents were screened based on specific criteria and completed an online questionnaire. The validation instruments measured financial well-being, self-control, financial knowledge, and parental financial socialisation. The data were analysed using partial least squares structural equation modelling (PLS-SEM), enabling the researchers to assess measurement reliability, validity, and the strength of hypothesised relationships.
Findings: Specifically, self-control and financial knowledge are significantly correlated with FWB. Financial behaviour is shown to mediate the relationships between financial knowledge, family financial socialisation, and FWB. Self-control, however, exerts a direct but insignificant influence on FWB when tested indirectly through financial behaviour.
Contributions: The study contributes by proposing interventions to improve financial education and support systems, offering policymakers a framework to enhance financial behavior and ultimately improve financial well-being in the targeted demographic.
Keywords: Financial well-being, family resource management model, emerging adults workers, financial behaviour, Malaysia.
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