FINANCIAL LITERACY ON PERSONAL FINANCE STABILITY AMONG LOW-INCOME COMMUNITIES

Abstract

This study explores an essential the intersection between personal financial security and financial literacy within low-income households and its relationship in establishing and maintaining personal financial stability. The tendency of households for neglecting personal financial planning eventually subjecting themself to unforeseen catastrophe such as financial shocks and economics uncertainty. According to the Malaysian Department of Insolvency, during pandemic crisis in 2019 and 2020 there is 20,402 individuals being declared bankrupt in Malaysia. Therefore, a qualitative study was conducted to gain a deeper understanding of financial planning behaviour among working adults in low-income communities. The study included the participation of ten informants focusing on state Kelantan, Malaysia. However, the informants been purposively selected using ‘snow-ball’ sampling technique due to data population incompleteness. The outcomes of this study been expected to offer significant insights for policymakers, financial institutions and community leader to initiate robust initiative that empowers households financial literacy and foster long-term financial stability.