Financial Literacy in Improving Financial Well-Being Among Female Civil Servants: A Study in Putrajaya

Abstract

Studies show that the amount of accumulated debt among civil servants has increased to RM236 billion in 2018. This situation reflects that their level of understanding of financial literacy is still at a low level and if this issue is ignored, it can lead them to poverty. The study aims to explore the causes of women civil servants’ understanding of low financial literacy. A total of 17 women civil servants working in various ministries in Putrajaya was successfully interviewed intensively. Intensive interviews using semi-structured questions were then interpreted using thematic analysis techniques. The findings of the research through the adaptation of the framework of the Organization for Economic Co-operation and Development (OECD) and a combination of financial frameworks have unravelled five main causes that lead to difficulties in understanding financial literacy, namely the extravagant spending of women, low trust in conventional financial institutions, stiff government initiatives, young age, and limited exposure and knowledge. This study also presents two main strategies to improve women’s understanding of financial literacy, namely through effective financial education and the formation of women’s financial support communities. The main implication of this study is to prioritize the role of responsible agencies and institutions in intensifying the initiatives to upgrade the knowledge and skills of the community, especially women civil servants, regarding financial literacy. Encouragement through the formation of women’s financial support groups should also be given priority to raise the position of women at an economic level that can lead them towards financial wellbeing.