Title: Financial management behaviour among youth: is financial literacy a panacea?

Authors: Chong-Yang Sim; Chee-Hua Chin; Ek-Tee Ngian; Jackson Jung-Wei Wong

Addresses: School of Business and Management, University of Technology Sarawak (UTS), 96000 Sibu, Sarawak, Malaysia; Centre on Technological Readiness and Innovation in Business Technopreneurship (CONTRIBUTE), UTS, Malaysia ' School of Business and Management, University of Technology Sarawak (UTS), 96000 Sibu, Sarawak, Malaysia; Centre on Technological Readiness and Innovation in Business Technopreneurship (CONTRIBUTE), UTS, Malaysia ' School of Business and Management, University of Technology Sarawak (UTS), 96000 Sibu, Sarawak, Malaysia; Centre on Technological Readiness and Innovation in Business Technopreneurship (CONTRIBUTE), UTS, Malaysia ' School of Business and Management, University of Technology Sarawak (UTS), 96000 Sibu, Sarawak, Malaysia

Abstract: The COVID-19 pandemic's impact on young Malaysians' financial situation has led to repercussions in their financial management behaviour, affecting their lives. Financial literacy is seen as the panacea to addressing the challenges of youths' financial management. Using partial least squares structural equation modelling (PLS-SEM) technique, this study aims to investigate the influence of money attitude, financial prudence, self-efficacy, financial avoidance, and financial literacy on the financial management behaviour of limited income youth in Sarawak, Malaysia. The study also examines how financial literacy moderates the relationship between these predictors and financial management behaviour. The findings revealed positive associations between financial avoidance, financial prudence, and financial literacy with financial management behaviour. Although financial literacy did not act as a moderator, it directly influenced financial management behaviour. Policymakers should prioritise financial literacy programs to enhance financial prudence and mitigate the risks associated with poor financial management behaviour among Malaysian youth, particularly those from limited income backgrounds.

Keywords: financial literacy; financial management behaviour; low-income Malaysian; youth.

DOI: 10.1504/IJMFA.2025.145293

International Journal of Managerial and Financial Accounting, 2025 Vol.17 No.2, pp.175 - 204

Received: 14 Jul 2023
Accepted: 20 Nov 2023
Published online: 31 Mar 2025 *

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