Relationship Between Financial Literacy and Financial Practices on Financial Satisfaction: Exploring Gender Differences

Abstract

The current economic conditions have affected financial situation of individuals, particularly younger generation. This paper aims to investigate the relationship between financial literacy, financial practices and financial satisfaction; and also to explore gender differences to all variables study. For this purpose, a questionnaire was designed and distributed using random sampling among 161 respondents aged below 30 years who are working in Putrajaya as a government servant. This paper consists three variables which is financial literacy and financial practices as an independent variable, where financial satisfaction as dependent variable. From multiple regression result, it shows that financial literacy and financial practices have a positive relationship with financial satisfaction. However, it is found that financial practices are more influential on financial satisfaction than the effects of financial literacy. From the Independent T-Test, the results show a significant different in financial literacy and financial satisfaction which suggest that males are more financially literate and satisfied with their financial condition than females. As a result, this finding gives the implication to the concern parties such as Credit Counselling and Debt Management Agency (AKPK) that financial literacy and financial practices as an important factor that will increase the financial satisfaction. This information is useful in designing the financial program that can enhance the financial satisfaction.