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Financial literacy and risk tolerance towards saving and investment: a case study in Malaysia

Innovation in the financial market has provided more flexible choices of financial products and services to the consumers. Financial products and services are becoming more complex and not easily comprehendible by many consumers. Due to this, consumers with low financial literacy (FL) may face diffi...

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Main Authors: Zakaria, Zukarnain, Mohamad Nor, Siti Maisarah, Ismail, Mohd. Roslan
Format: Article
Language:English
Published: EconJournal 2017
Subjects:
HG Finance
Online Access:http://eprints.utm.my/id/eprint/80596/1/ZukarnainZakaria2017_FinancialLiteracyandRiskTolerance.pdf
http://eprints.utm.my/id/eprint/80596/
https://www.econjournals.com/index.php/ijefi/article/view/5113
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id my.utm.80596
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spelling my.utm.805962019-06-27T06:10:02Z http://eprints.utm.my/id/eprint/80596/ Financial literacy and risk tolerance towards saving and investment: a case study in Malaysia Zakaria, Zukarnain Mohamad Nor, Siti Maisarah Ismail, Mohd. Roslan HG Finance Innovation in the financial market has provided more flexible choices of financial products and services to the consumers. Financial products and services are becoming more complex and not easily comprehendible by many consumers. Due to this, consumers with low financial literacy (FL) may face difficulties to make informed decisions on their savings and investments. Therefore, the purpose of this study is to identify the level of financial literary and its relationship with risk tolerance (RT) towards savings and investments in the context of Malaysia. A total of 172 respondents have been selected using convenience sampling method through online and manual survey. Data were analysed descriptively and statistically using nonparametric techniques, which include Chi-square and Spearman’s Rank Correlation to examine the relationship between variables studied. The results suggest that the overall FL in Malaysia is at moderate level. The study also found that overall FL has a positive significant relationship with the level of RT towards saving and investment. More specific analysis, however, found that only advance FL has a relationship with RT levels. Meanwhile, basic FL was not correlated with the level of respondents’ RT. EconJournal 2017 Article PeerReviewed application/pdf en http://eprints.utm.my/id/eprint/80596/1/ZukarnainZakaria2017_FinancialLiteracyandRiskTolerance.pdf Zakaria, Zukarnain and Mohamad Nor, Siti Maisarah and Ismail, Mohd. Roslan (2017) Financial literacy and risk tolerance towards saving and investment: a case study in Malaysia. International Journal of Economics and Financial Issues, 7 (4). pp. 507-514. ISSN 2146-4138 https://www.econjournals.com/index.php/ijefi/article/view/5113
institution Universiti Teknologi Malaysia
building UTM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Malaysia
content_source UTM Institutional Repository
url_provider http://eprints.utm.my/
language English
topic HG Finance
spellingShingle HG Finance
Zakaria, Zukarnain
Mohamad Nor, Siti Maisarah
Ismail, Mohd. Roslan
Financial literacy and risk tolerance towards saving and investment: a case study in Malaysia
description Innovation in the financial market has provided more flexible choices of financial products and services to the consumers. Financial products and services are becoming more complex and not easily comprehendible by many consumers. Due to this, consumers with low financial literacy (FL) may face difficulties to make informed decisions on their savings and investments. Therefore, the purpose of this study is to identify the level of financial literary and its relationship with risk tolerance (RT) towards savings and investments in the context of Malaysia. A total of 172 respondents have been selected using convenience sampling method through online and manual survey. Data were analysed descriptively and statistically using nonparametric techniques, which include Chi-square and Spearman’s Rank Correlation to examine the relationship between variables studied. The results suggest that the overall FL in Malaysia is at moderate level. The study also found that overall FL has a positive significant relationship with the level of RT towards saving and investment. More specific analysis, however, found that only advance FL has a relationship with RT levels. Meanwhile, basic FL was not correlated with the level of respondents’ RT.
format Article
author Zakaria, Zukarnain
Mohamad Nor, Siti Maisarah
Ismail, Mohd. Roslan
author_facet Zakaria, Zukarnain
Mohamad Nor, Siti Maisarah
Ismail, Mohd. Roslan
author_sort Zakaria, Zukarnain
title Financial literacy and risk tolerance towards saving and investment: a case study in Malaysia
title_short Financial literacy and risk tolerance towards saving and investment: a case study in Malaysia
title_full Financial literacy and risk tolerance towards saving and investment: a case study in Malaysia
title_fullStr Financial literacy and risk tolerance towards saving and investment: a case study in Malaysia
title_full_unstemmed Financial literacy and risk tolerance towards saving and investment: a case study in Malaysia
title_sort financial literacy and risk tolerance towards saving and investment: a case study in malaysia
publisher EconJournal
publishDate 2017
url http://eprints.utm.my/id/eprint/80596/1/ZukarnainZakaria2017_FinancialLiteracyandRiskTolerance.pdf
http://eprints.utm.my/id/eprint/80596/
https://www.econjournals.com/index.php/ijefi/article/view/5113
_version_ 1643658459657273344
score 13.211869

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