Amer Azlan


Recent consistent upsurge of household debts to disposable income in Malaysia has raised concern on the ability of its households to save for their future. With regard to this, financial literacy has been acknowledged as the best tool in assisting households managing their financials. However several economic psychologists argued that there are complicating factors in the marketplace which call into questions the viability of financial literacy as the best tool in educating households. The traditional Life Cycle Hypothesis (Modigliani and Brumberg,1954) is considered inadequate as it failed to incorporate some important behavioural elements which could give detrimental effects on one's life. In line to this, the overall intention of this research is to increase understanding on factors that influence savings behaviour and financial wellness among young working adults in Malaysia. It aims to incorporate several behavioural aspects and role of financial literacy in bridging these factors with savings behaviour. Analysis on socio-demographic and cultural differences will also be carried out given that Malaysia is a multi racial country with a multicultural society. 

The research is expected to contribute to the body of knowledge within the personal financial planning context, better hindsight on the role of financial literacy and behavioural interventions in household financial planning decision, and assist on designing more reliable financial planning programs that could benefit the Malaysians, in particular, the young adults.