Running head: FINANCIAL LITERACY AMONG YOUTHS IN KLANG VALLEY 1 FINANCIAL LITERACY AMONG YOUTHS IN KLANG VALLEY 17 Importance of Financial Literacy Among Youths in Klang Valley Student’s Name Institutional Affiliation Introduction Money is an essential element in everyday life. Learning how to earn, manage and grow finances is thus crucial for achieving success, freedom and independence in life. Yet, a big percentage of the youths do not have financial education by the time they leave school and start working. According to the MonsterTrak, 57% of the college students are planning to move back in with their parents due to financial difficulties. Similarly, The Student Monitor has indicated 62% of the graduates leave school with an average $27,236 in student debt due to lack of financial literacy. Another study by the National Foundation for Credit Counseling has indicated 39% of the adults living in America have zero non-retirement savings. The shocking statistics indicate the lack of financial literacy among youths. Globally, financial literacy has remained a huge problem. A S&P Global FinLit Survey only 71% of the people living in Norway, Denmark and Sweden. At the bottom of the rank is Yemen, which has only 13% of its citizens as financially literate. In Malaysia, the World Bank survey found only 36% of its citizens are financially literate. Therefore, the statistics indicate a big gap in the society since a huge number of people have little knowledge on financial literacy. A huge percent of the youths, lack formal or informal guidance on financial matters. According to a global study, less than 18% of the youths at the age of 15 receive financial skills. The fundamental financial skills the youths do not receive include making a budget, comparing prices when shopping and understanding or making an invoice. A report on the performance of the youths who were subjected to financial literacy exam indicate 48% were correct. Another study was carried in 2008 by the National Longitudinal Survey of Youth shows less than 27% of the youths understand concepts such as inflation. Another set of less than 27% can calculate interest rate. The statistics indicate the youths are in dire need of financial knowledge. When they are in school, they rarely receive the fundamental skills on money. Moreover, back at home, the parents care less on teaching their children how to understand finances. The children tend to grow up thinking an age will come when they will understand all the financial concepts. Since they continue handling money or start earning at a young age, youths express lack of financial skills due to the mismanagement of money. In Malaysia, financial illiteracy is severe among the low-income individuals. The people who earn less money rarely invest in getting the right financial information. The youths in Malaysia who have little income thus end up as victims of increasing debt, high-interest loans and scams. If the pe ...

1. Running head: FINANCIAL LITERACY AMONG YOUTHS IN
KLANG VALLEY 1
FINANCIAL LITERACY AMONG YOUTHS IN KLANG
VALLEY 17
Importance of Financial Literacy Among Youths in Klang
Valley
Student’s Name
Institutional Affiliation
Introduction
Money is an essential element in everyday life. Learning how to

2. earn, manage and grow finances is thus crucial for achieving
success, freedom and independence in life. Yet, a big
percentage of the youths do not have financial education by the
time they leave school and start working. According to the
MonsterTrak, 57% of the college students are planning to move
back in with their parents due to financial difficulties.
Similarly, The Student Monitor has indicated 62% of the
graduates leave school with an average $27,236 in student debt
due to lack of financial literacy. Another study by the National
Foundation for Credit Counseling has indicated 39% of the
adults living in America have zero non-retirement savings. The
shocking statistics indicate the lack of financial literacy among
youths.
Globally, financial literacy has remained a huge problem. A
S&P Global FinLit Survey only 71% of the people living in
Norway, Denmark and Sweden. At the bottom of the rank is
Yemen, which has only 13% of its citizens as financially
literate. In Malaysia, the World Bank survey found only 36% of
its citizens are financially literate. Therefore, the statistics
indicate a big gap in the society since a huge number of people
have little knowledge on financial literacy. A huge percent of
the youths, lack formal or informal guidance on financial
matters. According to a global study, less than 18% of the
youths at the age of 15 receive financial skills. The fundamental
financial skills the youths do not receive include making a
budget, comparing prices when shopping and understanding or
making an invoice.
A report on the performance of the youths who were subjected
to financial literacy exam indicate 48% were correct. Another
study was carried in 2008 by the National Longitudinal Survey
of Youth shows less than 27% of the youths understand
concepts such as inflation. Another set of less than 27% can
calculate interest rate. The statistics indicate the youths are in
dire need of financial knowledge. When they are in school, they
rarely receive the fundamental skills on money. Moreover, back

3. at home, the parents care less on teaching their children how to
understand finances. The children tend to grow up thinking an
age will come when they will understand all the financial
concepts. Since they continue handling money or start earning
at a young age, youths express lack of financial skills due to the
mismanagement of money.
In Malaysia, financial illiteracy is severe among the low-income
individuals. The people who earn less money rarely invest in
getting the right financial information. The youths in Malaysia
who have little income thus end up as victims of increasing
debt, high-interest loans and scams. If the people who are low-
income earners are given the right training, they would improve
their knowledge and perform better in terms of managing their
skills. The different areas youths would require to be trained on
include savings and investment strategies, credit use and
interest rates and banking practices. Other areas they would
require training on include predatory lending practices and loan
repayment strategies.
Young people in Malaysia earn their money through informal
and formal employment opportunities. The employment
opportunities are not sufficient to make them financially stable
since they receive no information on how to handle finances. If
they receive any information on financial skills, the information
is distorted or insufficient. Most of the youths in Malaysia
receive information on financial skills from their influential
adults, caregivers and peers. The informal methods of receiving
financial skills are not sufficient to ensure the young people
become financially literate. Youths are not consistently given
skills on how to handle finances in classroom curriculum or
formal training. The skills they require on finances include
saving money, buying assets, long-term and short-term financial
goals and balancing between income and expenditure.
Most of the programs on financial literacy among the youths
have not been sufficient since they do not address the specific
issues youths are troubled about. Youths have diverse needs on

4. the skills they would like to learn about money. When the
financial literacy programs are carried out in Malaysia, there is
little impact on the youths. A survey in Malaysia indicated what
the adults believe the youths should learn about financial skills
is different from what the youths want to learn. The problem
has not only been with the adults since the youths expect
specific ways on how they should earn financial freedom and
independence. The wake of technological revolution, the youths
want to learn how to make money in an easy and fast way using
technology.
A S&P Global FinLit Survey, shows only 71% of the citizens in
America are financially literate. In Malaysia, only 36% of the
people are financially literate. The huge difference indicates the
world requires more financial skills. Most of the people are
affected by the lack of skills since they fail to understand about
loans, interest rate, debts and wise borrowing. Most of the
people around the globe who are financially crippled indicate
they once had a chance to be financially successfully. A global
survey shows 56% of the youths who had a good income and a
promising future end up financially crippled when they make
mistakes concerning their money. Most of them start spending
more than they earn and finally end up in debt.
Youths, who are considered Millennials are different from other
generations. They have been born in the age of technological
revolution and the internet has influenced them to think life
should be easy, fast and simple. However, earlier generations
have learned how to patient and thus end up saving a lot of
money in the bank while sacrificing many luxurious items. The
current generations want to buy expensive cars, live in
luxurious homes and spend their money in expensive hotels.
When the expenditure does not match with the income, the
financial problems starts crippling in. The financial problems
start small and when they are not managed properly they
become huge problems, which are hard to overcome.
According to a report by Malaysia Department of Insolvency
people who went bankrupt were between the age of 20 and 30.

5. The report shows most of the people who are in a financial
crisis are young people. The financial problems are because of
the lack of financial skills. When the young people leave high
school or college, they have big dreams of being successful, but
they fail to understand how to handle money to achieve their
dreams. Moreover, the education system has not prioritized need
for financial skills. It is rare for students to be taught on how to
become financially stable in class. The concepts taught in class
are on the common subjects relating to biology, history and
mathematics.
Youth's Financial Literacy in Malaysia
The National Youth Development Policy of Malaysia considers
youths to be the people between 15 and 40 years. The education
system in Malaysia has been reformed to ensure the people
living in Malaysia acquire better financial skills by 2020. The
national education policy is formulated to achieve highly
motivated professional workforce. The youths in Malaysia and
other parts of the world would contribute to the development
and growth of the economy if they are given the right skills.
There are different changes in the market in Malaysia include
changes in technology, product innovation, deregulation and
increased competition. This kind of environment in the market
has prompted the dire need for financial knowledge. The youths
require financial literacy to make sound financial decisions,
enhance efficiency and financial performance.
Bank Negara Malaysia has already noted a gap in the financial
capability of the clients. The bank has invested massively to
promote better financial decisions and easy access to financial
information. The youths are part of the program and the focus is
to equip them with skills on financial management. The focus of
the youths who form a large percentage of the customers. The
youths will be the future customers who will propel the bank
into the future. The bank has tailored the training program to
include financial planning on how to save and budget and
spending regarding buying and comparative shopping. Another
item in the financial training program include financial products

6. such as banking, risks, liabilities and the rights and
responsibilities of a financial consumer.
The youths in Malaysia require skills on credit and debt skills
regarding debt management, rights and responsibilities of
borrowers. Other skills include risk management since most of
the young people fail to become financially successful since
they do not manage risks appropriately. The young people do
not have market information on the trends in the market. Failure
to be up to date with what is happening in the financial world
possess a huge risk. The youths who do not know what will
happen if they default loan find they are black listed by the
credit bureau. Other types of financial information is how they
can start business and repay their loan comfortably. The big
problem with most of the youths is the desire to get rich quickly
without struggling much.
According to a 2007 report by the Bank Negara Malaysia on the
National Service Program, students aged 17 were engaged in a
compulsory financial training program. The focus of the bank is
to raise people who can manage finances. The various skills
include budgeting, smart financial choices and market
information. The purpose of the program is to help the young
people to start saving and grow their financial muscle at a
young age. According to a report by the bank in 2008, already
120,000 students had been involved. The program will enhance
better financial information among the students. It is only of
late the banks have realized the importance of running such
programs. The emergence of such programs is a clear indicator
the current curriculum has some gaps.
The Bank Negara Malaysia in collaboration with the Debt
Management Agency and the Credit Counseling agency have
partnered with public universities to enhance the financial skills
of the students. The three stakeholders have focused on the
subject of ‘Personal Finance’. The end goal is to make the
subject a mandatory as part of their learning. The program
targets young people between 20 and 24 years. Many graduates
have shown lack of financial skills when they graduate since

7. they start making mistakes from the first time they are paid.
Offering financial skills to the students before they can start
building their career will give them a good start. When they
graduate and start earning, they will learn how to save, budget
and spend their money wisely.
The government of Malaysia is working to upgrade from a
middle-income society to a high-level income society. One of
the strategies of getting to the high-level income society is by
improving the financial literacy of the citizens. All the citizens
require the financial education including the young people who
form part of the highly productive percentage of the working
class. If the young people can learn different skills, they will be
in a better position since they have high potential. When
financial literacy of the young people is improved, the financial
health of the nation will improve and impact the future
generations. Youths require to learn the financial skills to take
up the emerging job opportunities and build their career. With
the emerging innovations, youths can tap into the many business
opportunities is they prepare by learning the financial skills.
The Bank Negara Malaysia has been at the forefront to enhance
financial literacy among young people. The bank has
collaborated with the ministry of education to create an
enhanced financial literacy education program. The program has
been enhanced using technology since it is contained in a
website with the domain name as Duitsaku.com. The website
contains financial games, quizzes, financial calculations,
financial content and financial management information. Using
the information technology platform to disseminate the
information will increase financial literacy and improve
financial management in the future.
Expenditure has increased more than the income among the
youths in Malaysia. The expenditure has increased over the
years due to rise in technology revolution. Many youths today
have added income due to the need to buy data packages,
technological devices and cable television which are considered
non-essential goods. According to the Malaysian

8. Communication & Multimedia Commission, the number of
young people who are using internet in Malaysia has increased
greatly over the last decade. Most of the people spend many
hours on the internet and buy huge data to finance the lifestyle.
A report in Malaysia indicates The Consumer Price Index (CPI)
has increased to 102.2% in 2011. The youths in Malaysia have
increased their expenditure in food and non-alcoholic
beverages. The increase, however, does not show an equal
increase in the income. In the future, the young people will fall
into a trouble since they will have less income and more
expenditure.
Credit cards loan is another issue affected by the financial
literacy of the youths in Malaysia. The credit card loans were
introduced in 1970. When they were first introduced, they were
issued to professionals who were regarded as successful
business people. According to a credit card report, there were
only 20,000 cards issued by 1970. However, the eligibility has
been relaxed on the years to increase the number of people who
can access a credit card loan. The result of the increased
issuance of the cards is compulsive buying behavior. The
compulsive buying behavior has led to shopping addiction and
excessive debt for people who still want to shop but they do not
have the money. The credit cards have contributed to the
financial crisis. Although the cards were introduced to enhance
shopping, they have been used by people who have no financial
skills. The bottom thus remains to assess and enhance financial
literacy.
Problem Statement
Financial education in Malaysia is still below the required
standards. The financial education programs carried out before
did not address the specific issues since there are still high
credit card debts. If the programs have been rolled out, they did
not focus on the young consumers who are between the 15-40
years. According to various studies, a high percentage of the
high school students are not prepared to handle finances when
they finally graduate. The skills offered in high schools and

9. colleges is to obtain a good grade or find a lucrative job. The
skills do not help the students to manage their finances in the
best way when they finally start earning. High school
curriculum does not address how to effectively use income
regarding savings in the bank account, how to manage credit
cards, mortgages, mutual funds, social security, loans, insurance
and taxes.
A student is exposed to topics dealing with finances and how to
manage money daily is they have covered topics such as
finances, accounts, consumerism and economics. Failure to
address the specific skills needed daily by the students when
they finally graduate creates a problem since they will start
earning money without the skills on how to manage it well. The
rapid technological change makes it possible to spend money
through online buying. The compulsive buying behavior is
rampant among the youths since they have not acquired the right
skills on financial management. If the youths knew how to
manage finances, thy would grow their savings, spend wisely
and start acquiring assets at a young age. It will be important
for the youths to learn about budgeting, savings, spending, debt
management, investment and spending behavior.
Klang Valley is an area in Malaysia in the state of Selangor.
The area has a population of 7,254,000 and the fast growth of
the population has prompted fast business growth. The young
people form a large percentage of the people living in Malaysia
and they make a huge contribution to the growth of the
economy. When they lack the necessary financial skills, they
will make a minimal effect on the economy. Youths who have
acquired the financial skills will take advantage of the
opportunities in Klang Valley while those who do not will miss
out on the opportunities. Business opportunities require
financial skills such as handling loans, buying assets, savings
and budgeting.
Therefore, the current study seeks to investigate the importance
of financial literacy among youths in Klang Valley.
Research Objective

10. The objective of the study is to examine the importance of
financial literacy among youths in Klang Valley.
Research Questions
What is the importance of financial literacy among youths in
Klang Valley?
Value of the Study
The study findings will inform the policy makers on the need to
train the youths on financial literacy. The policy makers will
learn of the existing gaps in the education curriculum. They will
make appropriate policies in line with the recommendations of
the study. The government bodies including ministry of
education may allocate more funds for further research in the
field of financial literacy.
The findings of the study will inform the schools heads, bank
managers and heads of other institutions dealing with the youths
on the need to train them on financial skills. The managers will
realize the need to train the young people in their workforce on
the best financial skills.
Academicians will have an in-depth understanding of the topic.
Students in the field of finance, accounting and economics will
use the study as a resourceful material in the course of their
learning. The scholars will use the study as a resource while
carrying out further research.
Limitation of the study
The study will focus on youths in Malaysia between the age of
15-40 years.
Literature Review
2.1 Introduction
This chapter presents a review of the related literature on the
importance of financial literacy among youths as presented by
various researchers, scholars, analysts and authors. The chapter
also provides the theories underpinning the study.
2.2 Theoretical Foundation

11. This section examines the various theories that will be used to
inform the study on the importance of financial literacy among
youths. The study will be guided by the following theories;
theory of planned behavior and resource dependence theory.
2.2.1 Resource dependence theory
2.2.2 Resource based theory
2.3 Research Gap
2.4 Conceptual Framework
The conceptual framework is a diagrammatical presentation of
the variables under investigation in a study. The framework
presents the relationship between the two variables; independent
and dependent variables. In this study, the independent
variables are making sound financial decisions, setting financial
goals, making predictions about the future, measuring and
reassessing progress,while the dependent variable is financial
literacy.
Making sound financial decisions
H1
Resource dependence theory

12. Setting financial goals
Financial Literacy
Resource based theory
H2
Resource dependence theory
Making predictions about the future
H3
Resource dependence theory
Measuring and reassessing progress
H4
Independent Variables Dependent
Variables
Source: Author
2.5 Importance of financial literacy

13. 2.5 1 Making sound financial decisions
Financial decisions are critical from a young age. People who
learn how to manage their money at a young age find it easy to
save, budget and overcome risks. One of the major financial
decisions is budgeting. It entails coming up with a list of items
a person wants to buy alongside their cost. When budgeting is
done, chances of impulsive buying reduces. While budgeting is
a crucial element of financial literacy, only a small percentage
of the people budget on how they will spend their money.
According to a study by Financial Literacy Foundation (FLF,
2007), only 47% of people budget for their daily expenses. The
survey shows more than half of the people who earn money do
not budget. Another study shows 27% of the people find it hard
to keep some money aside for purchasing assets for their houses
or businesses. Another survey carried out by Financial Literacy
Foundation shows 17% of the people who are employed could
survive in case they had a financial emergency. The statistics
indicate the need for people to realize the need to make
financial decisions.
The youths are in need of financial skills since they are
vulnerable to financial mistakes. A survey by Australian
Securities and Investments Commission (ASIC) shows youths
between the age of 16-25 have a high risk of making financial
mistakes. According to the study, there is a clear indication
young people are vulnerable and thus they need the financial
skills. At the age between 16-25, the young people are finding
their first job, moving out of their parent’s house and starting to
pay bills. To some, they are moving from their first job to the
second one. As such, providing critical financial skills is
necessary. The young people find themselves in a trap when
they start paying more bills than what they can earn.
When young people graduate, they either get employed or start
their own businesses. In both cases, a person will require the
right information to make appropriate decisions. A high
percentage of the young people who start business, end up broke
and close down their business due to lack of information on how

14. to handle the finances. Most of the young people do not know
how to cope with loan repayment and they end up with interest
due to defaulting. When the business does not pick up as they
would have wished, only a few know how to make find
alternatives of raising money to repay the loan and keep the
business going. The financial skills will be critical since most
of the youths are at a critical age of starting their own business.
A survey indicates few people would retire on their own
savings. The problem does not start when people age, but it
starts when they are young. When youths get their first job, few
remember to develop and grow their savings. However, they use
all the money on luxurious living to an extent they don’t have
money to survive if they fall sick or get sacked. If they had
financial skills, they would start saving money to ensure they
have a retirement plan from a young age.
Financial decisions entails using the money a person has to keep
their life financially stable or start a small business. The rate of
unemployment continues to rise since of the people have no
finances to start their own initiatives. The problem of having no
savings start with the poor decisions people make when they get
paid their salary. The decisions people make when they get their
money determines if they will be successful or not. The small
percentage of the people who succeed utilize their money well.
However, those who have no skills end up broke again even
after they are paid high salaries.
2.5.2 Set financial goals
Financial planning is a prerequisite to financial freedom and
success. A person who has a clear plan on how they will
organize their income, expenditure and savings, have an
opportunity to enjoy financial success. It helps create short term
and long-term goals. Setting the financial goals involves
planning, which attracts several benefits. Setting financial goals
is not restricted to specific people since everyone needs to
acquire the benefits. The process of setting the goals will be

15. accompanied by a strategy on how to accompany the goals. A
plan will stipulate what is important and what is not important.
While setting the objectives, people at different stages of life
will have different goals they would like to accomplish.
Most of the youths do not have the strategy on achieving their
financial goals. They buy expensive items and spend more than
their income can allow. However, the problem is due to lack of
financial goals. When a person has set out a goal, they will save
and finally finance the goal. Sadly, most of the youths do not
have the financial goals and some don’t know how to set them.
They just spend money without a clear plan on what needs to be
achieved. As a result, they do not grow ability to overcome
poverty and dependency on loans. A person who is setting out
for a trip during the holidays should have included the trip in
the savings. This is because the savings will help reach the
goal. When such an expenditure is made without proper
planning, a person is likely to fall into a trap of financial crisis.
2.5.3 Make predictions about the future
Financial literacy helps people to determine what they want to
do in the future. people who are interested in a certain industry
will organize themselves financially, make the savings and start
their journey towards financial freedom. It is important for the
youths to know what they need to achieve their financial goals.
In most cases, the youths give up thinking they do not have
what it takes, yet they all nee the knowledge on how they can
achieve their goals. When people think about the successful
people in various industries, they wonder how they can get
there. However, it is through financial skills that they can
discover how people can grow their financial strength and
become successful.
When young people who have made mistakes want to become
successful again, the need to consult a financial expert. The

16. expert will train them on how to overcome the challenges they
have experienced before. In most cases, youths who have failed
before fear to try again since they do not have the strength or
the confidence to move on. They just need to be trained on how
to overcome various pitfalls and eventually become successful.
This makes it easy for them to attain financial freedom and live
the live they have always admired plus contribute to economic
growth of the country.
2.5.4 To measure and reassess progress
2.6 Financial Literacy
2.2.7 Empirical Review
RESEARCH METHODOLOGY
The chapter presents a discussion of the research methodology
to be use in the current study. The chapter focuses on research
design, the target population, data collection, sample design,
data analysis used in the current study.
3.2 Research Design
The research design entails the roadmap of how the research
will be carried out regarding data collection to be used to
address the research questions of the study. The research design
outlines the collection, measurement and data analysis. The
focus of the research design is to address the research problem
outlined. It outlines how the research will be carried out, the
hypothesis and how the final analysis of the data will be carried
out (Creswell, 2013).
The current study will employ a descriptive research design.
The descriptive research design enables a researcher to describe
the variables. The research is about the importance of financial
literacy among youth in Klang Valley. Surveys will be used
since they are effective tools while dealing with a large
population. According to Creswell (2013), surveys involve
collecting information from a group of a representative sample.
The data collection can be carried out through interviews or

17. questionnaires.
3.3 Target Population
Population refers to an entire group of events, things or people
a researcher is interested in for investigation. In research,
population refers to a collection of units a researcher intends to
collect data and draw conclusions from. The target population is
a core element of research design.
The research will focus on 100 youths in Klang Valley.
3.4 Sample Design
A sample design is referred as the architectural strategy used to
identify specific participants among the respondents (Cooper &
Schindler, 2011). The sample is used to represent the larger
population of the target group. The sampling is a systematic
selection of a limited number of respondents. The basis of using
a sample population is to draw conclusions from the specific
group.
The sample size in the study will comprise of youths from
Klang Valley. The sample population will be 100 youths in
Klang Valley.
3.5 Data Collection
The current study will use primary data. The research will
design and distribute structured questionnaires to be filled by
the respondents. The questionnaires will be distributed to the
100 youths in Klang Valley. Research assistants will be
involved in data collection, and they will help clarify any
question respondents may ask about the questionnaire. If the
respondents are unable to fill the questionnaires immediately,
the research assistants will pick them later using a strategy
called drop and pick later method.
The questions will be structured, and respondents will be
required to tick appropriately. A five-point Likert scale will be
used, and respondents will indicate their views on a scale of 1
to 5. The respondents will be served with a transmittal letter
from the university to prove the data is being collected only for
academic purposes.
3.6 Data Analysis

18. The data will be analyzed using descriptive statistics, which
involves the measures of central tendency and dispersion.
Factor analysis will be used for effective data analysis. Mean
scores will be used to find out the importance of financial
literacy among youths in Klang Valley.
Multiple regressions will be used to determine the importance
of financial literacy among youths in Klang Valley. The
regression model to be used is illustrated below;
Y= Financial literacy
β0= Make sound financial decisions
X1= Set financial goals
X2= Make predictions about the future
X3= To measure and reassess progress
β1 -β4 are the regression co-efficient or change introduced in Y
by each independent variable
ε is the random error term accounting for all other variables on
importance of financial literacy but not captured in the model.
ANOVA test will be conducted to determine the level of
significance of the variance by the use of a one-Way ANOVA in
order to determine the existence of significant variations
between the variables.
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Solantaus, T., Ojala, T., Kampman, M., & Santalahti, P. (2016).
Together at school intervention programme. A pilot study on the
feasibility and perceived benefits of a programme focusing on
improving socio-emotional skills among schoolchildren in
Finland. International Journal of Mental Health
Promotion, 18(3), 127-143.
Gaines, A., Robb, C. A., Knol, L. L., & Sickler, S. (2014).
Examining the role of financial factors, resources and skills in
predicting food security status among college
students. International journal of consumer studies, 38(4), 374-
384.
Drexler, A., Fischer, G., & Schoar, A. (2014). Keeping it
simple: Financial literacy and rules of thumb. American
Economic Journal: Applied Economics, 6(2), 1-31.

20. ASSIGNMENT OUTLINE for Research Proposal Presentation
(15%) -COMPLETE ALREADY (This is the ppt attached)
Each student is required to present a proposal in class for 8
minutes, to include the following:
1. What is your research title?
2. Introduction: Overview of your research
area/scope/theoretical foundation/broad issues that inspire you
to research on the topic
3. Research Background: Industry/context
4. What is your Research Problem? Theoretical and Industry
problems you like to address
5. What are your research objectives?
6. What are your Research Significances? Theoretical and
practical significance
7. What are the main variables in your research? What are the
definitions of each variable?
8. What are your hypotheses? What are the theoretical and
empirical evidences for each hypothesis?
9. How do you measure each variable? Whose questionnaire
items or measurement scale you use?
10. Who are your respondents? Why them?
11. What are the analysis tools you will use to test the
hypotheses?
ASSIGNMENT OUTLINE for Research Proposal Report (15%)
- DUE TODAY

21. The Proposal should include:
· Chapter 1 Introduction
· Chapter 2 Literature Review and hypothesis development
· Chapter 3 Methodology
· a Sample Questionnaire/ Interview Guide/ Secondary Data
Extraction
Participation (20%)
· Research Topic and Problem Statement Presentation
7%

22. · Socrates Session
7%
· Class Participation (Summarize what has been learnt from
earlier class or videos - 1% per chip) 6%
Research Proposal Presentation Assessment Form (15%)
Name :
Matric
Date/Time:
Title:
1. Introduction
/1
2. Problem Statement:
/2

23. 3. Research Question:
/1
4. Significance of study:
/1
5. Main Variable definition:
/1
6. Hypotheses/propositions/literature review justifying
investigation of the said research questions:
/1
7. Measurements:
/1
8. Analysis Tools:
/1
9. Data Collection – Respondents, location, date
/1
10. Language
/2
11. Story line/overall presentation flow/clarity
/3

24. TOTAL
/15
Overall comments:
_____________________________________________________
___________________
_____________________________________________________
___________________
Research Proposal Report Assessment Form (15%)
Student Name :
_________________________________________
Matric No :
_________________________________________
Research Title :
_________________________________________
No

25. Assessment Criteria
Percent
Score
Comment
1
Introduction
1 %
2
Problem Statement
2 %
3
Research Objectives and Hypothesis
2 %
4
Literature Review
5 %
5
Methodology
3%
6

26. Delivery (format, storyline, flow, grammar, spelling)
2 %
Total
15%
1
Importance of Financial Literacy Among Youths in Klang
Valley
By
Kumar Subramaniam
Introduction
Financial education in Malaysia has not been addressed well
especially among youth between ages of 21 – 24 years ( Ibrahim
et al. 2009)
The financial education programs carried out before did not
address the specific issues since there are still high credit card
debts and university students lack positive cash management
practices by the time they start employment ( Ibrahim et al.
2009).
High school curriculum does not address how to effectively use
income regarding savings in the bank account, how to manage
credit cards, mortgages, mutual funds, social security, loans,

27. insurance and taxes
The young people form a large percentage of the people living
in Malaysia given that the median age of the population as of
2016 was 28 years (Dosm, 2016).
Cont’d
Youths who have acquired the financial skills will take
advantage of the opportunities in Klang Valley while those who
do not will miss out on the opportunities.
Money is an essential element in everyday life. Learning how to
earn, manage and grow finances is thus crucial for achieving
success, freedom and independence in life.
According to the MonsterTrak, 57% of the college students are
planning to move back in with their parents due to financial
difficulties
Another study by the National Foundation for Credit Counseling
has indicated 39% of the adults living in America have zero
non-retirement savings.
The shocking statistics indicate the lack of financial literacy
among youths.
Problem Statement
(Industry Gap)
According to the MonsterTrak, 57% of the college students are
planning to move back in with their parents due to financial
difficulties.
According to various studies, a high percentage of the high
school students are not prepared to handle finances when they
finally graduate.
The Student Monitor has indicated 62% of the graduates leave
school with an average $27,236 in student debt due to lack of
financial literacy.
In Malaysia, the World Bank survey found only 36% of its

28. citizens are financially literate.
Problem Statement
(Theoretical Gap)
Failure to address the specific skills needed daily by the
students when they finally graduate creates a problem since they
will start earning money without the skills on how to manage it
well.
If the youths knew how to manage finances, thy would grow
their savings, spend wisely and start acquiring assets at a young
age.
It will be important for the youths to learn about budgeting,
savings, spending, debt management, investment and spending
behavior.
This study will examine the importance of financial literacy
among youths in Klang valley.
Research Question
Objectives of the Study
To investigate the effect of financial literacy in making sound
financial decisions?
To investigate the impact of financial literacy in setting
financial goals?
To examine how financial literacy helps in making predictions
about the future?
To investigate how financial literacy helps in measuring and
reassessing financial progress?
Research Questions
How does financial literacy help in making sound financial
decisions?

29. How does financial literacy help in setting financial goals?
How does financial literacy help in making predictions about
the future?
How does financial literacy help in measuring and reassessing
financial progress?
Significance of the Study
(Theoretical Contribution)
The study findings will inform the policy makers on the need to
train the youths on financial literacy. The policy makers will
learn of the existing gaps in the education curriculum.
The findings of the study will inform the schools heads, bank
managers and heads of other institutions dealing with the youths
on the need to train them on financial skills
Academicians will have an in-depth understanding of the topic.
Students in the field of finance, accounting and economics will
use the study as a resourceful material in the course of their
learning.
Significance of the Study(Practical Contribution)
Malaysia plans to be one of the leading economies in the world.
There are different efforts put to achieve the goal.
The youths remain critical in the economic progress of Klang
Valley in Malaysia. The study will thus inform the policy
makers on the need to train the youths on financial literacy. The
policy makers will learn of the existing gaps in the education
curriculum.
The study will encourage other researchers to research more on
financial literacy among the youths. Academicians will have an
in-depth understanding of the topic. Students in the field of
finance, accounting and economics will use the study as a

30. resourceful material in the course of their learning.
The study will increase the engagement among policy makers,
the government and researchers and raise awareness on financial
literacy.
Variables Making sound financial decisions
Setting financial goalsMaking predictions about the future
Measuring and assessing financial progress
According to a study by Financial Literacy Foundation (FLF,
2007), only 47% of people budget for their daily
expensesAustralian Securities and Investments Commission
(ASIC) shows youths between the age of 16-25 have a high risk
of making financial mistakesA survey indicates few people
would retire on their own savingsNational Longitudinal Survey
of Youth shows less than 27% of the youths understand
concepts such as inflation.by Financial Literacy Foundation
shows 17% of the people who are employed could survive in
case they had a financial emergency. 27% of the people find it
hard to keep some money aside for purchasing assetsAccording
to a report by Malaysia Department of Insolvency people who
went bankrupt were between the age of 20 and 30. Bank Negara
Malaysia has already noted a gap in the financial capability of
the clients
Conceptual Framework
Making sound financial decisions
Setting financial goals
Financial Literacy
Making predictions about the future
Measuring and reassessing progress
H1
H3
H2

31. H4
Resource dependence theory
Resource dependence theory
Resource based theory
Resource dependence theory
Hypothesis
Financial literacy helps in making sound financial decisions
Financial literacy help in setting financial goals
Financial literacy help in making predictions about the future
Financial literacy help in measuring and assessing financial
progress
Youths gain skills on how to make financial skills regarding
loans, savings and budgeting
Youths set clear goals on retirement plans, buying assets and
funding businesses
Youths can forecast the future trends regarding inflation and
fluctuation of prices
Youths can assess their financial growth when they have the
financial skills
Methodology
1. Research design
Quantitative research design
2. Population of the study
Targeting to interview 100 youths from Klang Valley
The 100 youths will comprise of 50 youths who are in school
and 50 who are working.
3. Sample size
Should the results of the interview be homogenous, the sample
size will be 48 (n=48) otherwise it will be expanded to 60
(n=60)

32. Cont.…
4. Sampling technique
Non-probability sampling technique will be used
5. Data collection
In-depth interviews using semi-structured questions will be used
It will take three weeks.
Measurement TableVariableQuestionsTarget
groupJustificationReferencesMaking sound financial decisions
What financial decisions do you make?
How effective are you in making the decisions?Youths who are
workingYouths who are earning make financial dailyBabiarz &
Robb (2014)Measuring and assessing financial progress
Have you seen any progress in your finances?
Do you plan to improve your financial skills?Youths who are
working
Youths who are employed can assess their financial
progressIdris et al., (2017)
Measurement TableVariableQuestionsTarget
groupJustificationReferencesMaking predictions about the
future
How do you plan to manage finances in future?Youths who are
in school
The youths in high school have predictions on how they will
manage money once they get employedBoisclair et al.,
(2017)Setting financial goals
What are your financial goals?

33. 2. How do you plan to achieve the goals?Youths who are in
school
The youths in school have goals on what they would like to
achieve in futureIdris et al., (2017)