The Effect of a Smart Money Kit on the Financial Interest, Financial Management Behavior, and Prosocial Level of Preschoolers

Abstract

Financial literacy is among the most significant components of daily life. Due to the current economic problems, the need and use for financial literacy and planning become more prevalent as one grows older. Children grow up in an infinitely uncertain world, where they are forced to take responsibility for their financial future. Since the financial intellect can be cultivated, increasing the proclivity of financial management and fostering money-related knowledge at a young age has a significant impact on promoting future financial behavior. This study was conducted in response to the need to broaden the current understanding of financial socialization among the young generation. This research aimed to ascertain whether a Smart Money Kit (SMK) can be utilized as an alternative financial education tool to increase preschoolers’ financial interest, management behavior, and prosocial levels. The sample of the research included 50 preschoolers from Selangor, Malaysia. They were randomized into an experimental or control group with 25 preschoolers. A one-way MANOVA was used. The findings of within-subject multivariate tests demonstrated statistically significant differences between the control and experimental groups. In addition, the results showed a significant effect on the experimental group’s level of interest score, a significant effect on the experimental group’s level of financial management behavior, and a statistically significant difference in the experimental group’s level of prosocial score. The study showed that SMK effectively improves children’s interests in financial education, management, and prosocial behavior.