The Role Of Financial Literacy And Financial Planning Towards Financial Satisfaction And Investment Decision Perception Among Malaysian Working Adults

Abstract

Achieving financial satisfaction in life is definitely a goal of many individuals. Many reported insolvency cases among working individuals are linked to poor financial management and literacy that lead to financial dissatisfaction. The present study identified and tested several determinants of financial planning and model it as a mediator towards financial satisfaction for Malaysian working adults. The data collected for this study were obtained from 1957 respondents who attended Seminar Pelaburan 360 Hari (Investment Seminar) from April 2012 to February 2013 organized by Permodalan Nasional Berhad (PNB) across 14 states in Malaysia. The respondents were working adults in various occupation sectors and professions. In reaching the aim of the study, the research model was validated through the Partial Least Squares (PLS) technique. Apart from reporting the determinants of financial satisfaction, this study also reported the level of financial literacy and investment literacy of the participants.