Good financial management requires strengthening of not only financial literacy skills but also financial skills, financial planning, and financial capability. Prior research has demonstrated that the financial situation of today's millennials is quite daunting, since they confront different financial challenges compared to previous generations. To understand this, the significance of having strong financial literacy and awareness is a point that is frequently underlined. However, the capability for these generations to act financially sound should also be investigated, particularly in the light of COVID-19 pandemic. Thus, the main objective of the study is to determine the factors influencing the financial capability of the millennial generation. The survey method using a random sampling technique was applied in this study. The study sample is the millennial generation who serve as civil servants in the Public Service Department (JPA), Putrajaya. Questionnaires were used as data collection instruments. As a result, a total of 270 respondents were involved in this study. Multi-level regression analysis was used to elucidate the objectives of the study. Preliminary results of the study indicate that the financial capability of the millennial generation is high. Subsequent findings indicate that financial knowledge, financial behavior, motivation, and opportunity have a significant relationship with financial capability. However, the financial knowledge factor has only a small influence on the financial capability of the millennial generation. These findings imply that factors such as financial behavior, motivation, and opportunity need to be considered in order to improve an individual’s financial capability. In addition, increasing the opportunities and accessibility of the millennial generation to financial facilities also needs to be given attention. Future studies related to financial capability of the millennial generation could compare between generations based on location of residence (urban and rural areas) and type of occupation (skilled and unskilled).
Abdullah, N. H. L., Shafii, H., & Wee, S. T. (2013). Pengetahuan dan tingkah laku murid terhadap alam sekitar: Satu kajian awal. Retrieved from https://www.researchgate.net/publication/ 319207972_PENGETAHUAN_DAN_TINGKAH_LAKU_MURID_TERHADAP_ALAM_SEKITAR_SATU_KAJIAN_AWAL
Aiyar, S., & Ebeke, C. (2019). Inequality of opportunity, inequality of income and economic growth. https://doi: 10.1016/j.worlddev.2020.105115
Arellano, A., Camara, N., & Tuesta, D. (2017). Explaining the gender gap in financial literacy: The role of non-cognitive skills. Economic Notes 47(2-3), 495-518. https://doi.org/10.1111/ecno.12113
Atkinson, A., McKay, S., Collard, S., & Kempson, E. (2007). Levels of financial capability in the UK. Public Money and Management, 27(1), 29-36.
Beal, D. J., & Delpachitra, S. B. (2003). Financial literacy among Australian university students. Economic Papers: a journal of applied economics and policy, 22(1), 65-78. https://doi: 10.1111/j.1759-3441.2003.tb00337.x
Berita Harian. (2017). Generasi Y Gemar Berbelanja Lebih daripada Kemampuan. https://www.bharian.com.my/bisnes/pasaran/2017/10/333113/generasi-y-gemar-berbelanja-lebih-daripada-kemampuan
Bradbury, K., & Triest, R. K. (2016). Inequality of opportunity and aggregate economic performance. Journal of the Social Sciences, 2(2), 178-201.
Brunori, P., Peragine, V., & Ferreira, F. H. G. (2013). Inequality of opportunity, income inequality and economic mobility: Some international comparisons. Society for the studies of Economic, Equality (pp. 85-115). Palgrave McMillan. https://doi: 10.1057/9781137333117_5
Clarke, M. C., Heaton, M. B., Israelsen, C. L., & Eggett, D. L. (2005). The acquisition of family financial roles and responsibilities. Family and Consumer Sciences Research Journal, 33, 321-340.
Debard, R. D. (2004). Millennials coming to college: Serving the millennial generation-new directions for student services. Jossey-Bass.
DeVaney, S. A. (2015). Understanding the millennial generation. Journal of Financial Service Professionals, 69(6), 11-14.
Dimock, M. (2018). Defining generations: where millennials and post-millennials begin. Pew Research Center. http://www.pewresearch.org/fact-tank/2018/03/01/defining-generations-where-millennials-end-and-post-millennials-begin/
Friese, S., & Koenig, H. (1993). Shopping for trouble. Advancing the Consumer Interest, 5(1), 24-29.
Fry, R., Igielnik, R., & Patten, E. (2018). How millennials today compare with their grandparents 50 years ago. http://www.pewresearch.org/facttank/2018/03/16/how-millennials-compare-with-their-grandparents/
George, D., & Mallery, P. (2003). SPSS for Windows Step by Step: A Simple Guide and Reference (4th ed.). Allyn & Bacon.
Hilgert, M., Hogarth, J., & Beverly, S. (2003). Household financial management: The connection between knowledge and behavior. Federal Reserve Bulletin, 89, 309-322.
iMoney. (2019). Golongan milenial malaysia didapati melakukan kesalahan kewangan ini. https://www.imoney.my/articles/golongan-milenial-malaysia-didapati-melakukan-kesilapan-wang-ini [5 Oktober 2019]
Institut Kewangan Asia. (2019). Finance matters: Understanding Gen Y: Bridging the knowledge gap of Malaysia’s millennials. Kuala Lumpur.
Jabatan Insolvensi Malaysia. (2019). Statistik kebankrapan di Malaysia. http://www.mdi.gov.my/ images/documents/Statistics/Bankrupcy/StatistikKebankrapandisember2019.pdf
Masud, J. A. R., Husniyah, P. L., & Britt, S. (2004). Financial behavior and problems among university students: Need for financial education. Journal of Personal Finance, 3(1), 82-96.
Xiao, J. J., Chen, C., & Chen, F. (2014). Consumer financial capability and financial satisfaction. Social Indicators Research, 118, 415-432.
Xiao, J. J., Chen, C., & Sun, L. (2014). Age and financial capability: Implications for lifespan financial education. Consumer Interests Annual, 60, 1-10.
Jusoh, J. (2013). Corak perbelanjaan dalam kalangan pelajar Sijil Modular Kebangsaan (SMK) hiasan pakaian Kolej Komuniti Temerloh. Retrieved from http://digilib.mercubuana.ac.id/ manager/t!@file_artikel_abstrak/Isi_Artikel_409815824800.pdf
Lusardi, A. (2011). Americans’ financial capability. National Bureau of Economic Research, Amerika Syarikat.
Lusardi, A., & Mitchell, O. S. (2011). Financial literacy and retirement planning in the United States. Journal of Pensions Economics and Finance, 10(4), 509-525.
Lusardi, A., Mitchell, O. S., & Curto, V. (2010). Financial literacy among the young. Journal of Consumer Affairs, 44, 358-380.
Malaysian Financial Planning Council. (2018). Report of national finding: Financial capability & utilization of financial advisory services in Malaysia. Malaysia.
Okech, D., Mimura, Y., Mauldin, T., & Kim, J. (2013). The influence of financial factors on motivation to save among poor individuals. Journal of Policy Practice, 12, 107–124. https://doi: 10.1080/15588742.2013.766917
Perez-Arce, F., Amaral, E. F. L., Huang, H., & Price, C. C. (2016). Inequality and opportunity: The relationship between income inequality and intergenerational transmission of income. Retrieved from https://www.rand.org/pubs/research_reports/RR1509.html
Pew Research Center. (2018). Comparing millennials to other generations. http://www.pewresearch.org/interactives/how-generations-compare/ [6 Julai 2018]
Power, M. L., Hobbs, J. M., & Ober, A. (2011). An empirical analysis of the effect of financial education on graduating business students’ perceptions of their retirement planning familiarity, motivation and preparedness. Risk Management and Insurance Review, 14(1), 89-105. https://doi.org/10.1111/j.1540-6296.2011.01194.x
Ramana, D. V., & Muduli, S. (2018). Measuring financial capability of the street vendors http://dx.doi.org/10.2139/ssrn.3433606
Ramli, Z. (2011). Pengaruh pengetahuan, tingkahlaku dan pembuatan keputusan kewangan ke atas kesejahteraan kewangan pekerja sektor awam yang berkahwin. Retrieved from http://psasir.upm.edu.my/id/eprint/26466/
Ramli, Z., Awang, A. H., Sum, S. M., Masud, J., Haron, S. A., & Othman, M. (2014). Faktor-faktor penentu kesejahteraan kewangan pekerja sektor awam berkahwin di Malaysia. Retrieved from https://www.ukm.my/fep/perkem/pdf/perkem2014/PERKEM_2014_5C1.pdf
Reyers, M. (2019). Financial capability and emergency savings among South Africans living above and below the poverty line. International Journal of Consumer Studies, 43(4), 335-347.
Schober, P., Boer, C., & Schwarte, L.A. (2018). Correlation coefficients: Appropriate use and interpretation. Anesthesia & Analgesia, 126(5), 1763-1768. https://doi: 10.1213/ANE.0000000000002864
Taylor, M. (2011a). Measuring financial capability and its determinants using survey data. Social Indicators Research, 102, 297-314.
Taylor, M. (2011b). The long-term impacts of financial capability: Evidence from the BHPS. Retrieved from https://moneyandpensionsservice.org.uk/wp-content/uploads/2021/03/the-long-term-impacts-of-financial-capability-evidence-from-the-bhps.pdf
Peng, T. C., Bartholomae, S., & Fox, J. (2007). The impact of personal finance education delivered in high school and college courses. Journal of Family and Economic Issues, 28(2), 265-284. https://doi:10.1007/s10834-007-9058-7
Utusan Malaysia. (2019). Milenial sengsara kos sara hidup tinggi. Retrieved from https://www.utusan.com.my/bisnes/ekonomi/milenial-sengsara-kos-sara-hidup-tinggi-1.397427
Vlaev, I., & Elliot, A. (2018). Economic psychology: Defining and influencing financial capability. John Wiley & Son Ltd.
Xiao, J. J., & O’Neill, B. (2016). Consumer financial education and financial capability. International Journal of Consumer Studies, 40(6), 712-721.
Yamane, T. (1967). Statistics: An Introductory Analysis (2nd ed.). Harper and Row.
In-Text Citation: (Zaimah et al., 2022)
To Cite this Article: Zaimah, R., Ibrahim, N. M., Sarmila, M. S., & Awang, A. Hair. (2022). The Financial Capability of the Millennial Generation during the Pandemic of Covid-19. International Journal of Academic Research in Business and Social Sciences, 12(11), 2020– 2041.
Copyright: © 2022 The Author(s)
Published by Knowledge Words Publications (www.kwpublications.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
