Financial decision making among the dual-income families in Malaysia

Abstract

This paper is part of the Financial Well-Being Research among the Public Sector Workers in Malaysia, carried out in 2008. The paper seeks to identify the husbands' and wives' financial decision making in a dual-income families. The unit of analysis is the individual, either the husband or the wife. A total of 415 respondents was included in this analysis. Financial decision making is measured using a five scale, i.e. 1=husband; 2=wife; 3=child; 4=together; and 5=individuals. Three major financial decision making patterns obtained in the findings are similar to the findings obtained in the previous studies, namely decision-making by the husband, decision making by the wife, and financial decision making were made by both the husband and the wife. The financial decision making by the husband involved big expenditure with high commitment. Decision making by the wife was more focused on the needs of the family related expenses. While decision making by the husband and wife tends to relate to the children's needs. In addition, the findings also showed that the larger income contribution of the family provides greater opportunities in the decision making. However, decision-making in a dual-income family is also influenced by the religion and culture.