EXAMINING THE IMPACT OF FINANCIAL BEHAVIORS AND CONCERNS ON FINANCIAL HEALTH: A STUDY AMONG IPMA ALUMNI

Abstract

This study examines the relationship between financial behaviours, financial concerns, and personal financial health among alumni of Institut Pendidikan MARA (IPMA). A structured questionnaire was developed based on initial qualitative insights from focus group interviews and distributed to 401 respondents. Data were analysed using Structural Equation Modeling (SEM) with SmartPLS to explore key financial behaviours’ direct and mediating effects on financial health, including financial knowledge, budgeting, saving, spending, and impulse control. The findings reveal that budgeting, saving, and impulse control significantly enhance financial health, while financial concerns partially mediate the relationship between saving and financial health. On the contrary, financial knowledge and spending did not show a significant direct impact. The results underscore the importance of targeted financial education and behavioural interventions that address financial management skills and psychological aspects to improve financial well-being among young adults. The study contributes to the literature by highlighting critical pathways influencing financial health and providing practical recommendations for financial education programs.