From Scarcity to Prosperity: Nurturing Financial Well-Being in Community Affected by Poverty

Abstract

Due to vulnerability faced by households, many households have shifted into lower category due to pandemic covid-19. Thus, this study aimed to investigate financial behaviour practices based on experience that are related to financial knowledge towards households’ financial well-being. By forming a depth understanding of financial management experience, this study would identify the fragility and shortcomings to be intensified over time. Hence, this study intends in to uplift households in Malaysia and create a more inclusive and prosperous society. Using the Nominal Group Technique (NGT), three study groups with ten participants each were used. This began with a calmed generation of thoughts about the beneficial aspects and disadvantages of financial practices. After that, round-robin voting, and a group debate continued until no more ideas were offered. Then, informants would vote on their grievances about the behaviour of financial management until a consensus was reached. Therefore, this study found that low-income households have low financial knowledge and are influenced by impulsive financial attitudes and behaviors. Thus, this article highlights the need for tailored financial education programs that cover budgeting, saving, debt management, and investment. It emphasizes the importance of financial literacy, access to financial services, entrepreneurship, and community engagement in fostering financial well-being.