A study of financial awareness among youths

• Published in: Young consumers Vol. 11; no. 4; pp. 277 - 290
• Main Authors: Nga, Joyce K.H, Yong, Lisa H.L, Sellappan, Rathakrishnan D
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Group Publishing Limited 23.11.2010
• Subjects: Baby boomers; Banking; Brain research; Brand loyalty; College students; Consumer behavior; Consumers; Credit cards; Decision making; Education; Financial institutions; Financial literacy; Financial management; Financial planning; International finance; Knowledge; Malaysia; Marketing; Perceptions; Personal finance; Self esteem; Studies; Teenagers; Trust; Unit trusts; Youth; Financial management; Youth; Credit cards; Unit trusts; Malaysia; Banking
• ISSN: 1747-3616; 1758-7212
• DOI: 10.1108/17473611011093916

Purpose - Credit card bankruptcies in Malaysia trebled from 2006 to 2007 and study loan defaults increased by 103 percent in the same period. In response to this, the paper aims to investigate the level of general financial and product awareness among young adults. The two research questions addressed are: how do demographic factors (age, gender and education level) influence the general financial awareness, and whether undertaking a business degree promotes greater financial and product awareness amongst youth today.Design methodology approach - A survey method was employed using a sample of 280 students at a private higher education institution in Subang Jaya, Malaysia. The study also develops valid and reliable scales for general financial awareness and financial product awareness. Hypothesis testing was conducted using multivariate analysis of covariance.Findings - The findings of the study revealed that the level of education and majors influence general and financial product awareness among youths. Also, males were found to have higher levels of financial awareness compared to females.Research limitations implications - Future research is required to investigate whether family background has an impact on personal finance knowledge.Practical implications - By identifying the specific areas where financial product awareness may be lacking, the paper may assist educators, regulators and financial institutions to design financial planning courses in helping youths to achieve greater financial freedom and be better equipped for retirement.Originality value - This paper also develops reliable and valid measurement scales for both general and financial product awareness which were not evident in previous studies. The paper's findings may prompt the educational institution and government authorities to be concerted in promoting financial planning awareness nationwide.