The role of financial behaviour, financial literacy, and financial stress in explaining the financial well-being of B40 group in Malaysia
Thoughts
Grounding itself on previous authors (Prawitz et al., 2006; Davis et al., 2004), explains financial stress could be defined as complexity engagement, general financial responsibilities due to lack of money. It is also one’s unpleasing feeling that an individual is incapable of fulfilling financial needs, managing the living requirements and having adequate finances to make ends meet. Stress involves the impressions of frightening, distress and scare, but may also anger and dissatisfaction. It is a point to note that the concept of financial stress and financial distress are not similar. Financial stress is related to the major financial inadequacies to meet up individual financial needs, whereas financial distress is an opposite viewpoint of financial well-being. Financial stress primarily derives from the inadequacy of fund due to personal, family, and shocks in financial situations. The increase of financial stress, such as debt increase or financial shortages, would reasonably intensify the state of financial distress, which lowers the level of financial well-being. One of the key concerns of marginalized community is having a lack of enough finance which put them into financial constrain and economic hardship.
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Annotations
rahman2021 - p. 2
Precisely, this study aims at(1) investigating the key factors affecting financial wellbeing and (2) exploring which demographic variables account for the significant difference within the study variables among the low-income group in Malaysia.
rahman2021 - p. 2
Most commonly, financial well-being implies the financial circumstance as well as enough money to meet one’s needs with security and freedom of choice. Various educational disciplines have been studied in financial well-being including economics, financial advising and organisations, developmental psychology, consumer decision-making and services marketing.
rahman2021 - p. 3
Financial behaviour can perform a central role where individuals’ well-being including household, society, nation as well as around the world can be influenced by financial behaviour.
rahman2021 - p. 3
Financial literacy implies the capacity to understand and examine options for funding, preparing for the future, and responding adequately to the situations. Financial literacy also provides individual’s successful experience to involve in economic activities via increased deposits, appropriate buying decision, correct investing, land management, employing security, debt as well as enhancing the financial well-being.
rahman2021 - p. 4
Financial stress could be defined as complexity engagement, general financial responsibilities due to lack of money. It is also one’s unpleasing feeling that an individual is incapable of fulfilling financial needs, managing the living requirements and having adequate finances to make ends meet.
rahman2021 - p. 5
An eight-item scale of Prawitz et al. [69] was adapted for measuring financial well-being (FWB) and measured by 5-point Likert-scale ranging from 1 = very unhappy to 5 = very happy. Likewise, financial behaviour (FB) was measured using a ten-item scale adapted from Garman et al. [27] and financial stress (FS) was measured by six items adapted from Grable et al. [28]. Responses of these two scales were anchored using a 5-point Likert scale ranging from 1 = strongly disagree to 5 = strongly agree, whereas a total of ten-items scale by Sabri et al.