What is it about?
Financial literacy is an essential skill, and it is even more critical during economic crises. The COVID-19 pandemic affected the global and domestic economies. While some of its aspects are beyond individual control, financial knowledge can help mitigate the economic crisis, manage income, and help people manage their respective finances. In the past decade, Malaysia experienced a volatile financial environment domestically, but the reverberations were also felt regionally and globally.
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Why is it important?
Youth unemployment tripled (11.7%). Cash-flow imbalances occurred due to payroll, business loans, utilities, and other fixed costs that business owners were obligated to meet. The COVID-19 pandemic was a severe test on individual financial resilience and a challenge for small businesses. Businesses' temporary closure had a strong negative impact on their well-being (OECD, 2020), which is felt in many countries, some more substantial than others. The impact was more severe in countries that reported vulnerabilities in their financial management.
Perspectives
It seems sensible that low financial literacy in Malaysia is perceived as the key that will weaken the participation and reasonable action by society, leading to a negative outcome that would affect the path towards achieving personal financial goals, Vision 2020, and the aged nation 2030. The Malaysian deputy finance minister announced that it is the government’s responsibility to increase financial literacy among the community and empower people with financial knowledge and skills (Shahar, 2020). The government initiated various financial education programs, including webinars, talks, quizzes, competitions, discussions, and exhibitions online to educate the community to make sound financial decisions (Shahar, 2020).
Dr Sedigheh Moghavvemi
University of Malaya
Read the Original
This page is a summary of: The Effect of Early Age Involvement to Individuals' Financial Literacy and Financial Well-Being, January 2021, IGI Global,
DOI: 10.4018/978-1-7998-6926-9.ch010.
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