Factors influencing the awareness of personal financial planning in Malaysia

Chai, Qiao Ping and Chia, Pei Wen and Tan, Ke Xuan and Tan, Zi Ee and Teo, Yi Xuan (2024) Factors influencing the awareness of personal financial planning in Malaysia. Final Year Project, UTAR.

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Abstract

Personal financial planning is crucial for achieving life goals and managing financial risks, many individuals, particularly among Generation Z, struggle with it due to a lack of awareness and financial literacy. The study centers on Generation Z which includes individuals born between 1995 and 2010, typically ranging in age from 14 to 29 years old (Mahapatra et al., 2022). In this study, we discussed the relationship between personal knowledge, attitude, social influence, financial satisfaction, and self-efficacy between awareness of personal financial planning. To collect the data in this study, questionnaires were distributed to 424 Generation Z in Perak. This study aims to enhance understanding of personal financial planning among Generation Z in Perak using two theories which are Metacognition Theory and Self-Determination Theory (SDT). In this study, we discussed the relationship between personal knowledge, attitude, social influence, financial satisfaction, and self-efficacy between awareness of personal financial planning. The results of the analysis indicate that personal knowledge and social influence have significant influence on the awareness of personal financial planning. However, attitude, financial satisfaction, and self-efficacy have insignificant influence on personal financial planning. Therefore, it is recommended that financial advisory firms, Malaysian education and Generation Z should focus on these key factors when they attempt to improve the awareness of personal financial planning.

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