Defining the Area of Knowledge for Financial Literacy: The Influence of Financial Courses on Materialism

Abstract

Numerous studies have foundthatfinancial literacy may assist in averting irresponsible spending that linked to materialistic values. However, the area of knowledge that delivers financial literacy varies among studies. The study determines whether credit hours of financial courses,namely, economics, finance and accounting, affect materialism. Consequently, three moderator variables namely gender, year of study and financial sponsorship, were added into the analysis. A survey was conducted on 1022 business undergraduates in Universiti Pendidikan Sultan Idris using money attitude scales as a proxy to measure materialism. Findings indicate that there werenodirectcorrelations between credithoursof financial courses cumulatively or individually, with materialism scores. However, when the year of studyvariable,specifically fourth-year students category, wasinserted as a moderating effect, all three financial courses credit hours were found to be negatively correlatedwith materialism score. The findings demonstrate that accounting courses credit hours affect all materialism dimensions. Meanwhile, three and two materialism dimensions negatively correlated with economic and finance courses, respectively. It indicates that final year students materialistic values lessen as particular financial courses credit hours increased. The findings may provide input to financial literacy modules to mitigateyoung-executive debt crises.