Self Efficacy and Financial Literacy Shape Future Financial Behavior Among Private Sectors

Abstract

Financial literacy can enable individuals in making good financial decisions and changing financial behavior, where it can have a huge impact on individuals' financial wellbeing. This may depend on the time horizon regardless of whether financial education is effective in achieving the desired objectives. Financial literacy is most concern now during this Covid-19 pandemic to avoid financial stress on individuals. A smart financial literacy is essential to help individual manage and plan ahead their financial properly without any difficulties. However all age groups do not even have financial education at all, but much less than a third of young adults have those basic knowledges. The main objective of this research is to explores self efficacy and financial literacy that will affect financial behavior among employees in Malaysia. A multi-staged sampling method was chosen to such a sample of 202 public sector employees from Kota Bharu Kelantan. The self-administered survey was designed to collect data. The data was analyzed using Statistics is a powerful statistical software (SPSS). Therefore, researcher using regression and correlation analysis data. The finding of the analysis shown that self efficacy factor affects the most financial behavior the results indicate a significant positive relationship between financial self efficacy and financial behavior among working individuals. The contribution of the variables to the model was 46 percent, according to the regression analysis. From the study it will provide policy maker what kind of strategy should take in order to provide and ensure financial education is effective for Malaysian.