Nelson Lajuni, Imbarine Bujang, Abd. Aziz Karia, Yusman Yacob


This study attempts to examine the personal financial distress among Malaysians millennial generation by scrutinizing religiosity, financial knowledge, and financial behavior as the influencing antecedents. The study adopted social learning theory (SLT) to underpin and explain the conceptual framework. The data were collected from millennial generations in Malaysia and analysed using Partial Least Squares Structural Equation Modelling. The findings suggest that all claimed hypotheses were partially supported. Implication and contribution of the study were later discussed to justify the significance of this research. The findings revealed that behavioral traits to have a stronger impact on the incidence of personal financial distress than religiosity or financial knowledge. The results suggested the government should implement policy that could be oriented towards improving the financial habits and mitigating the impact of behavioral characteristics on personal finances


Social learning theory, religiosity, financial knowledge, financial behavior, financial distress

Full Text:



American Express Financial Services. (2004, April 1). 2nd American Express national survey finds worker financial stress lingering into 2004. Press release.

Asaad, C. T. (2015). Financial literacy and financial behavior: Assessing knowledge and confidence. Financial Services Review, 24, 101–117.

Bandura, A. (1969). Principles of behaviour modifi-cation. New York: Holt, Rinehart, and Winston.

Bagwell, D. C., & Kim, J. (2003). Financial stress, health status, and absenteeism in credit counse-ling clients. Journal of Consumer Education, 21, 50–58.

Beckmann, E. (2013), Financial literacy and house-hold savings in Romania. Numeracy, 6(2), Article 9.

Bernama (September 12, 2017). Malaysians are world's largest whatsapp users. Retrieved September 21, 2017, from https://www.nst. rlds-largest-whatsapp-users.

Brown, K. M., & Laschever, R. A. (2012). When they're sixty-four: Peer effects and the timing of retirement. American Economic Journal: Applied Economics, 4(3), 90–115. doi:10.1257/app.4.3.90.

Brown, S., & Taylor, K. (2014). Household finances and the “big five” personality traits. Journal of Economic Psychology, 45, 197–212. doi:10. 1016/j.joep.2014.10.006.

Bursztyn, L., Ederer, F., Ferman, B., & Yuchtman, N. (2012). Understanding peer effects in financial decisions: Evidence from a field experiment (No. w18241). National Bureau of Economic Research.

Cohen, J. (1989). Statistical power analysis for the behavioral sciences (2nd ed.). Hillsdale, NJ: Lawrence Earlbaum Associates.

Cole, S., Sampson, T., & Zia, B. (2011). Prices or knowledge? What drives demand for financial services in emerging markets? Journal of Finance Finance, 66(6), 1963–1967.

Cude, B. J., Lawrence, F., Lyons, A., Metzger, K., LeJeune, E., Marks, L., & Machtmes, K. (2006). College students and financial literacy: What they know and what we need to learn. Proceedings of the Eastern Family Economics and Resource Management Association, 102–109.

Danes, S. M., & Haberman, H. R. (2007). Teen financial knowledge, self-efficacy, and behavior: A gendered view. Financial Counseling and Planning, 18(2), 48–60.

Diamantopoulos, A., & Siguaw, J. A. (2006). Forma-tive versus reflective indicators in organizational measure development: A comparison and empi-rical illustration. British Journal of Management, 17(4), 263–282.

Drentea, P. (2000). Age, debt and anxiety. Journal of Health and Social Behavior, 41(4), 437–450.

Drentea, P., & Lavrakas, P. J. (2000). Over the limit: The association among health status, race and debt. Social Science & Medicine, 50, 517–529.

Eccles, D. W., Ward, P., Goldsmith, E., & Arsal, G. (2013). The Relationship between retirement wealth and householders' lifetime personal finan-cial and investing behaviors. Journal of Consumer Affairs, 47(3), 432–464. doi:10.1111/ joca.12022.

Faul, F., Erdfelder, E., Lang, A.-G., & Buchner, A. (2007). G*Power 3: A flexible statistical power analysis program for the social, behavioral, and biomedical sciences. Behavior Research Me-thods, 39, 175–191.

Garman, E. T., & Sorhaindo, B. (2005). Delphi study of experts’ rankings of personal finance concepts important in the development of the Incharge financial distress/financial wellbeing scale. Consumer Interests Annual, 51, 184–194.

Gathergood, J. (2012). Self-control, financial literacy and consumer over-indebtedness. Journal of Economic Psychology, 33(3), 590–602.

Gul, F., & Pesendorfer, W. (2004). Self-control and the theory of consumption. Econometrica, 72(1), 119–158.

Gutter, M. S., Garrison, S., & Copur, Z. (2010). Social learning opportunities and the financial behaviors of college students. Family and Consumer Sci-ences Research Journal, 38(4), 387–404.

Hadar, L., Sood, S., & Fox, C. R. (2013). Subjective knowledge in consumer financial decisions. Journal of Marketing Research, 50(3), 303–316.

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM). (2nd ed.). Thousand Oaks, California: Sage Publica-tions.

Hastings, J., & Tejeda-Ashton, L. (2008). Financial literacy, information, and demand elasticity: Survey and experimental evidence from Mexico. NBER Working Paper No. 14538.

Hayduk, L. A., & Littvay, L. (2012). Should resear-chers use single indicators, best indicators, or multiple indicators in structural equation models? BMC Medical Research Methodology, 12(159).

Hira, T. K. (1997). Financial attitudes, beliefs and behaviors: Differences by age. Journal of Con-sumer Studies and Home Economics, 21, 271–290.

Internet Word Stats (2017). Malaysia Internet Users. Retrieved September 21, 2017, from http://www. internet live

Jacobson, B. H., Aldana, S. G., Goetzel, R. Z., Vardell, K. D., Adams, T. B., & Pietras, R. J. (1996). The relationship between perceived stress and self-re-ported illness-related absenteeism. American Journal of Health Promotion, 54–61.

John, D. R. (1999). Consumer socialization of chil-dren: A retrospective look at twenty-five years of research. Journal of Consumer Research, 26, 183–213.

Kernis, M. H., Grannemann, B. D., & Mathis, L. C. (1991). Stability of self -esteem as a moderator of the relation between level of self-esteem and depression. Journal of Personality and Social Psychology, 61, 80–84.

Klapper, L., Lusardi, A., & Panos, G. A. (2013), Financial literacy and its consequences: Evidence from Russia during the financial crisis. Journal of Banking and Finance, 37, 3904–3923.

Klapper, L., & Panos, G. A. (2011), Financial literacy and retirement planning: The Russian case. Journal of Pension Economics and Finance, 10, 599–618.

Laily, N. (2014). Pengaruh literasi keuangan terhadap perilaku mahasiswa dalam mengelola keuangan. JPA UM Malang, 1(4), 277–285.

Landerretche, O. M., & Martinez, C. (2013). Voluntary savings, financial behavior, and pension finance literacy: Evidence from Chile, Journal of Pension Economics and Finance, 12, 251–297.

Lusardi, A., Mitchell, O. S., & Curto, V. (2009). Financial literacy among the young: evidence and implication for consumer policy. National Bureau of Economic Research, 34. Retrieved from ardi/Papers/ Financial_literacy_young.pdf.

Martin, C. A., & Bush, A. J. (2000). Do role model influence teenagers’ purchase intentions and behavior. Journal of Consumer Marketing, 17(5), 441–454.

MetLife Insurance Company. (2003, November). The MetLife study of employee benefits trends: Findings from the 2003 national survey of employers and employees. New York: MetLife Insurance Company.

McCarthy, Y. (2011). Behavioral characteristics and financial distress. Working Paper Series, 1303, European Central Bank.

Mokhlis, S. (2009). Relevancy and measurement of religiosity in consumer behavior research. International Business Research, 2(3), 75–84.

Németh, E., & Zsótér, B. (2017). Personality, attitude and behavioral components of financial literacy: A comparative analysis. Journal of Economics and Behavioral Studies, 9(2), 46–57. https://doi. org/10.22610/jebs.v9i2.1649.

O’Neill, B. (2004, December). Small steps to health and wealth. The forum for family and consumer Issues. Retrieved December 29, 2004, from www.

O’Neill, B., Sorhaindo, B., Xiao, J. J., & Garman, E. T. (2005a). Financially distressed consumers: Their financial practices, financial well-being, and health. Financial Counseling and Planning, 16(1), 73–87.

--------- (2005b). Health, financial well-being, and financial practices of financially distressed consumers. Consumer Interests Annual, 51, 80–82.

--------- (2005c). Negative health effects of financial stress. Consumer Interests Annual, 51, 260–262.

Parker, A. M., De Bruin, W. B., Yoong, J., & Willis, R. (2012) Inappropriate confidence and retirement planning: Four studies with a national sample. Journal of Behavioral Decision Making, 25, 382–389.

Prawitz, A. D., & Garman, T. E. (2009). It’s time to create a financially literate workforce to improve the bottom line. Benefits Compensation Digest, 46(4), 1–6.

Ringle, C., Wende, S., & Will, A. (2015). SmartPLS 3.0. Retrieved from http://

Roldán, J. L., & Sánchez-Franco, M. J. (2012). Variance-based structural equation modeling: Guidelines for using partial least squares. In M. Mora, O. Gelman, A. L. Steenkamp, & M. Raisinghani (Eds.), Research methodologies, innovations and philosophies in software systems engineering and information systems (pp. 193–221). Hershey, PA: IGI Global.

Sabri, M. F., & Falahati, L. (2014). Toward a frame-work of financial wellness determinants: Inves-tigating the moderating effect of religion. Austra-lian Journal of Basic and Applied Sciences, 8(9), 275–281.

Scott, R. H., III. (2010). Credit card ownership among American high school seniors: 1997–2008. Journal of Family and Economic Issues, 31(2), 151 –160.

Shweder, R. A. (1991). Thinking through cultures: Expeditions in cultural psychology. Cambridge, MA: Harvard University Press.

Socyberty (December 5, 2006). Why do people think work is so important. Cited October 6, 2016 from http://socyber think-w ork-is-soimportant/.

Sundarasen, S. D. D., & Rahman, M. S. (2017). Attitude towards money: Mediation to money management. Academy of Accounting and Financial Studies Journal, 21(1), 1–17.

Thaler, R. H., & Shefrin, H. M. (1981). An economic theory of self-control. Journal of Political Economy, 89(2), 392–406.

The Malaysian Insider. (2014). Rising trend in youths going bankrupt worrying says minister. Retriev-ed from http:// malaysia/article/rising-trend-in-youths-going-bankrupt-worrying-says-minister -bernama.

Valence, G., d’Astous, A., & Fourtier, L. (1988). Compulsive buying: Concept and measurement. Journal of Consumer Policy, 11, 419–433.

Yew, S. Y., Yong, C. C., Cheong, K. C., & Tey, N. P. (2017). Does Financial Education Matter? Edu-cation Literacy among Undergraduates in Malaysia. Institutions and Economies, 9(1), 43–60.

Yao, R., & Xu, Y. (2015). Chinese urban households’ security market participation: Does investment knowledge and having a long-term plan help? Journal of Family and Economic Issues, 36, 328–339.

Zsótér, B. (2017). Apple from the tree. Intergene-rational effects in young adults’ financial sociali-zation in family. Doctoral Dissertation. Corvinus University of Budapest, Hungary.


The Journal is published by Faculty of Economics, Department of Management - Petra Christian University. It available online supported by Directorate General of Higher Education - Ministry of Research, Technology and Higher Education of the Republic of Indonesia.

©All right reserved 2016.Jurnal Manajemen dan Kewirausahaan, ISSN: 1411-1438, e-ISSN: 2338-8234

web stats
View My Stats