Determinants of Malaysian Financial Literacy: A Financial Socialization Perspective

Abstract

Objective - The study aims to examine the financial literacy level of Malaysian households and the role of financial socialization in improving an individual’s financial literacy level. Methodology/Technique – Convenience sampling was used to select respondents in Malaysian households through questionnaires distributed between August and December of 2021 with a total of 132 retrieved responses. Findings - The results indicated that the Malaysian financial literacy level is above average. Financial education and financial socialization significantly enhanced an individual's financial literacy level. Novelty - The study is based on the Social Learning Theory and demonstrated the importance of financial socialization in improving an individual’s financial literacy level. Hence, measures should be taken to enhance the role of social agents (family or friends) in informal financial education. Type of Paper: Empirical. JEL Classification: I22, M29 Keywords: Financial literacy, financial socialization, financial education, drivers of financial literacy, social agents Reference to this paper should be referred to as follows: Rahim, N.M; Ali, N. (2022). Determinants of Malaysian Financial Literacy: A Financial Socialization Perspective, Acc. Fin. Review, 7(1), 51 – 61. https://doi.org/10.35609/afr.2022.7.1(2)