Modelling Financial Preparedness of Low-Income Households Towards Social and Economic Well Being

DOI

10.2991/978-94-6463-666-6_17How to use a DOI?

Keywords

Financial Preparedness; B40 households; Low-income; Literacy and Retirement

Abstract

Financial preparedness refers to managing the cost of living to sustain standard of living and act as an aid during downtime. To achieve financial preparedness, the process of planning and controlling the expenditure needs to be systematic to balance with income earning. In Malaysia more than 50% of households do not meet proper financial preparedness. Low-income earners or B40 is the crucial individual that need to have their financial preparedness as their backup during retirement and emergencies. The ability to manage finances will lead to better life and prevent fall into poverty. B40 groups are encouraged to prepare their own finances instead of relaying on government assistance solely because government assistance might be late and possibly once in a blue moon. Every household, especially the B40 group needs to prepare their finances at least 6 months ahead as their protection. However, B40 groups are unable to afford and prepare for it. They are not ready for outbreak shock or economic downturn. Low-income households are struggling with their survivability in daily necessity and basic needs but at the same time they are not preparing financially for the future. Every household, especially those in the B40 group, needs to be financially prepared in order to afford their daily expenses, particularly for health, retirement and emergencies. The life-cycle model and permanent income hypothesis have similar predictions that stated consumptions can affect a household’s income. Thus, the purpose of this study is to examine relationship financial preparedness among B40 population households in Selangor.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Nur Sofea Syafiqah Zunaedi
AU  - Nurul Syifaa Mohd Shakil
PY  - 2025
DA  - 2025/03/17
TI  - Modelling Financial Preparedness of Low-Income Households Towards Social and Economic Well Being
BT  - Proceedings of the 12th International Conference on Business, Accounting, Finance and Economics (BAFE 2024)
PB  - Atlantis Press
SP  - 285
EP  - 293
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-666-6_17
DO  - 10.2991/978-94-6463-666-6_17
ID  - Zunaedi2025
ER  -