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| Abstract : Perpustakaan Tuanku Bainun |
| The main objective of this study is to examine the direct and indirect effects of parental influence, peer influence, financial awareness through spending behavior, and saving behavior on reaction to indebtedness, and future orientation among tertiary students in Peninsular Malaysia. The underlying theories used in this study were the Theory of Reasoned Action, Self-Awareness Theory, and Consumer Involvement Theory. The snowball sampling technique was used to collect data for this study. All the collected data were analyzed using Statistical Package for the Social Science (SPSS) software version 16 and Smart PLS 3.0. This study utilized Partial Least Squares Structural Equation Modelling (PLS-SEM) to examine the relationship between variables with a sample of 1,800. This study indicated that most respondents reported low financial knowledge but moderate financial awareness. Furthermore, the PLS-SEM bootstrapping results revealed a significant negative relationship between financial awareness and reaction to indebtedness, suggesting that individuals with higher financial awareness have a negative impact on debt management. Meanwhile, a positive indirect relationship existed between financial awareness and reaction to indebtedness through spending and saving behaviors. This suggests that individuals with higher financial awareness and good spending and saving behavior manage debt better. Overall, the findings of this study indicated that the direct and indirect effects of financial awareness, parental influence toward reaction to indebtedness, and future orientation through spending and saving behavior were significant (p < 0.05). Therefore, spending and saving behavior partially mediate the relationship between financial awareness, parental influence toward reaction to indebtedness, and future orientation. In conclusion, it is recommended that personal financial management be included as a mandatory course in all tertiary-level education programs to assist tertiary students in making wise financial decisions. |
| References |
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