DETERMINANTS OF FINANCIAL WELL-BEING FOR GENERATION Y IN MALAYSIA

Abstract

The purpose of this study is to identify the determinants that influence the state of financial well-being of Gen-Y in Malaysia. This study is done in response to a recent study by Asia Institute of Finance (2015) that discovers Gen-Y Malaysians have a mediocre financial literacy score. This study begins by understanding what the Asia Institute of Finance (2015) study discovers and who the Gen-Ys are. As there has not been a defining approach to determine financial well-being, this study adopts the measure of financial satisfaction as a proxy to it. Once the independent variable financial satisfaction and its independent variables; financial knowledge, financial management, financial planning, financial situation and financial status are being put into context, a survey consisting of Likert scale question on the aforementioned independent and dependent variables are sent to 206 Gen-Ys across Malaysia. The regression result concludes that financial knowledge and financial planning are two determinants that influence the financial satisfaction of Gen-Y Malaysians. There is no significant influence of financial management, financial situation and financial status on financial satisfaction. This study contributes to the bodies of research which have determined financial literacy, which both financial knowledge and financial planning is part of, to have an impact on an individual's financial satisfaction.