Multiple Linear Regression Analysis on Factors Affecting Financial Literacy among Undergraduate Students

Abstract

Financial literacy can be defined as the ability to read, analyse, manage, and communicate the personal financial conditions that affect material well-being. It includes the ability to discern financial choices and discuss money and financial issues. Most university students are facing financial crisis because they do not have the knowledge of how to manage their money. This study aims to determine financial literacy among UiTM Kota Bharu students. Thus, four factors had been examined, which were financial behaviour, financial knowledge, financial attitude, and family influences. The data was collected through an online questionnaire via the WhatsApp application to distribute to students at UiTM Kota Bharu. The research revealed that all factors had a significant effect on financial literacy, with Financial Attitude being the most significant influence, followed by Financial Knowledge, Family Influences and Financial Behaviour. Besides, the results of the study indicate that Grade Point Average (GPA) and Allowance factors have significant effects on students’ financial literacy. In contrast, the Gender factor did not have a significant effect on students’ financial literacy. The study helps to improve the knowledge and behaviour of young people to act on financial management.