Determinants of financial well-being among emerging adults workers in Malaysia: the mediating effect of financial behavior / Mohd Samsuri Ghazali

Low national savings, high volumes of household debt, and increased bankruptcy rates are red flags signalling a poor financial well-being level. As the key building blocks to overall well-being, the aforementioned issues have become a major concern worldwide. Many countries, including Malaysia, have established national strategies to improve people's financial well-being (FWB). However, research on this topic remains scarce and scattered across disciplines. Although most of the studies had been conducted on different groups and populations, the focus on emerging adults aged 19 to 29, especially among non-students, is under-researched. In response to this gap, this thesis examines the effects of subjective determinants, namely self-contentment, self control, subjective financial knowledge, family financial socialization, and financial behaviour, on the financial well-being of emerging adult workers in Malaysia by utilising the family resource management theory. This thesis also assesses the mediating effect of financial behaviour in the relationships between self-contentment, self-control, subjective financial knowledge, and family financial socialization with financial well-being. A quantitative approach was utilised using a set of questionnaires distributed to emerging adult workers based on the purposive technique in five states in Malaysia, namely Pahang, Perak, Selangor, Melaka, and Sabah. The research model was further analysed using the Partial Least Square-Structural Equation Modelling (PLS-SEM) technique. Seven out of the nine developed hypotheses were supported based on the analysis. In particular, self-contentment, self-control, subjective financial knowledge, and financial behaviour significantly correlated with financial well-being. As a mediating variable, financial behaviour was found to mediate the relationships between self-contentment, subjective financial knowledge, and family financial socialization with financial well-being. In contrast, self-control demonstrated an insignificant influence when tested indirectly through financial behaviour as a mediating variable; it was concluded to be a standalone influence on financial well being. This thesis contributes relevant empirical evidence that subjective determinants significantly influence the financial well-being of emerging adult workers in Malaysia. This study also provides a predictive framework explaining financial well-being among Malaysian emerging adults. Policymakers or governments are encouraged to adopt this research framework in developing a model that offers a comprehensive guideline to improve emerging adults' financial behaviour, which is crucial in enhancing their financial well-being.