FINANCIAL LITERACY OF UNDERGRADUATE STUDENTS IN SELECTED MALAYSIAN HIGHER EDUCATION INSTITUTIONS: A WAY FORWARD TO POLICY RECOMMENDATION

Abstract

Financial literacy is an important but often ignored skill that is vital for the young. Lack of knowledge and understanding of financial literacy will directly affect the well-being of the individual. Research indicates that due to low financial literacy, individuals experience a variety of problems that are related to personal finances such as savings, investments, or old plans, credit and so on. Previous research indicates that socio-economic factors are important determinants of financial literacy. Most youths from lower income groups are less likely to be exposed in terms of financial literacy. Thus, there is an urgent need to provide exposure and basic knowledge of financial literacy to the youth to avoid persistence of this problem. This study identifies the level of financial literacy among undergraduate students in selected public and private higher institutions and whether there are differences in financial literacy by socio-economic status and also by gender.  The questionnaires were distributed to 44 respondents using online survey. Samples included students who are recipients of Alms and also from higher income group. Data were analysed using both descriptive and inferential statistics such as Ttest. The findings reveal that these undergraduates’ students have high level of financial knowledge and behaviour. However, their financial attitude is still at moderate level. Results also indicate that students do not differ in financial literacy by gender or socio-economic status. This study provides insights to policy makers and relevant agencies on the appropriate interventions that need to be made to ensure financial well-being of our future generations.