Children's understanding of financial literacy and parents' choice of financial knowledge learning methods in Malaysia

Abstract

Financial literacy is an essential lifelong skill that should be taught to children at any age. It holds the key to develop a generation of adults who are knowledgeable about money and the economy. Additionally, OECD (2018) suggests that using digital tools could significantly enhance financial literacy and well-being. Therefore, this paper aims to:(i)assess the financial literacy level of primary school children in the northern region of Malaysia and(ii)explore interactive and engaging methods for teaching financial literacy.The sample size was determined using Krejcie and Morgan's (1970) approach, resulting in 419 primary school students aged 7 to 12 and their parents. An online questionnaire was employed, and multi-regression analysis was conducted.The findings highlighted those primary students displayed a high level of financial literacy, scoring above 80 % on the questionnaire. Furthermore, parents expressed a preference for their children to enroll in personal finance subjects offered by schools, have financial assignments or activities at school, and engage in online financial games. The study emphasized the crucial roles of schools, teachers, and active parental involvements to enhance financial literacy. This study recommends incorporating interactive and attractive teaching methods through in-class and online activities at the school level.