The Determinants Of Employees’s Financial Literacy

Abstract

Financial literacy is the education and understanding of how money is made, spent, and saved, as well as the skills and ability to use financial resources to make decisions. These decisions include how to generate, invest, spend, and save money. The concept can be applied to individuals and organizations. Good financial management is about long-term financial goals and to achive that, it is necessary to have an adequate knowledge in financial management. The aims of this study is to examine the extent of financial literacy among employees at all level of management in National Defence University of Malaysia (NDUM). The determinants that involved in this study are differences in ages, level of financial literacy, marriage status, type of job and level of education. The study employed a quantitative analysis  for  150 employees of the National Defence University of Malaysia. The level of financial literacy is divided into savings, debts, investments and monthly expenses. The discoveries of the investigation demonstrates that the degree of financial literacy are connected with the level of education. Neither age nor marital status  are associated with financial literacy among employees. This study contributes the body of knowledge of financial literature on financial literacy among employee  and revisit the determinants of financial literacy that are useful for policy maker to develope effective approaches in providing financial knowledge among the employees or targeted group.