Financial Literacy and Financial Behaviour in Four Different Age Groups in Malaysia

Abstract

The goal of this research was to look at the association between financial literacy and financial behaviour in different age groups. Financial literacy was judged by the number of accurate answers from questions that required the respondent to calculate and also was based on the respondents' responses on a scale of 1 to 5. The age groupings were as follows: 13–19, 20–39, 40–59, and 60 and over. Long-term financial behaviour included retirement saving and investment, whereas short-term financial behaviour included expenditure and emergency savings. The data was gathered from a sample of 300 respondents through a survey method. It was analysed using Ordered Logistic Regression. The findings are broadly similar with those of other investigations. However, some of the results may differ due to its geographical boundaries, sample size, and research design. This research demonstrates policymakers and financial practitioners with a detailed financial assessment of various age groups, along with valuable insights.