Determinants of Financial Well-Being Among Malaysian University Students

Abstract

The global issue of Financial Well-Being (FWB) among university students remains a contentious topic of discussion and growing concern. However, inconclusive findings necessitate a comprehensive understanding of potential antecedents to address this pressing issue. This study utilises psychological theories to examine the factors influencing FWB among university students, offering current insights and directions for future research. Data were collected from 299 Malaysian university students through an online survey and analysed using Partial Least Square-Structural Equation Modelling (PLS-SEM) via SmartPLS 4.0. The findings reveal that Digital Financial Literacy (DFL), financial confidence, and financial attitude significantly influence financial behaviour. In contrast, FWB is influenced by financial confidence and financial behaviour but not by DFL and financial attitude. Furthermore, financial behaviour successfully mediates the relationships between (i) DFL and FWB, (ii) financial confidence and FWB, and (iii) financial attitude and FWB. This study contributes to the growing literature on psychological theories and FWB, providing valuable insights for  government, its agencies, regulators, and educational institutions. It highlights the need to enhance financial education curricula and awareness campaigns to foster positive financial habits and improve students’ FWB.