Financial literacy and awareness of investment scams among university students

Published date12 May 2021
Date12 May 2021
Subject MatterAccounting & finance,Financial risk/company failure,Financial crime
AuthorHazlina Mohd Padil,Eley Suzana Kasim,Salwa Muda,Norhidayah Ismail,Norlaila Md Zin
Financial literacy and awareness
of investment scams among
university students
Hazlina Mohd Padil
Faculty of Law, Universiti Teknologi MARA Cawangan Negeri Sembilan,
Kampus Seremban, Seremban, Malaysia
Eley Suzana Kasim
Accounting Research Institute, Universiti Teknologi MARA,
Shah Alam, Malaysia, and
Salwa Muda,Norhidayah Ismail and Norlaila Md Zin
Faculty of Accountancy, Universiti Teknologi MARA Cawangan Negeri Sembilan,
Kampus Seremban, Seremban, Malaysia
Purpose This study aims to examine the relationship between budgeting skillsand f‌inancial goals and
the level of awarenessof investment scams among university students.
Design/methodology/approach An online survey was administered to university students in
Malaysia. A total of 211 responseswere received. The data was analysed using partial leastsquare method
based on structuralequation modelling technique by using SmartPLS-3.0and SPSS-20 statistical software.
Findings Findings indicated thathaving adequate budgeting skills can signif‌icantly affectawareness of
investment scam among students. This implies that early f‌inancialmanagement education among students
should focus on instillingdisciplined budgeting habit to prevent them from becomingvictims of investment
scams. Nevertheless,when examining f‌inancial goals among the respondents, the study found that havinga
clear f‌inancial goal does notsignif‌icantly contribute to their awareness in identifyinginvestment scams. As
such, students need to be properly guided in setting their f‌inancial objectives such as avoiding unrealistic
goals to lead a luxuriouslifestyle using fast and easymoney.
Social implications This study recommends that higher educationinstitutions need to work together
with relevant regulatorsand law enforcers in providing necessary f‌inancial literacyeducation as part of the
investmentscam prevention measures.
Originality/value This study contributes to the literaturegap on the need to focus on f‌inancial literacy
in creatingawareness towards investment scams amonguniversity students.
Keywords Budgeting, Awareness, University students, Financial literacy, Financial goals,
Investment scam
Paper type Research paper
1. Introduction
Financial literacy has been widely recognisedas vital indicator of an individuals ability to
make personal f‌inancial decisions (Gui et al., 2020;Lusardi, 2019;Huang, 2016;Tan et al.,
2011). Personal f‌inance can be def‌ined as the management of money, savings and
investment. It encompasses elements of budgeting, saving, insurance and mortgages (Mao,
2017) as well as investments (Gedmintiene and Visockaite, 2016), retirement planning, tax
and estate planning (Tan et al., 2011). An individuals level of understanding on the
scams among
Journalof Financial Crime
Vol.29 No. 1, 2022
pp. 355-367
© Emerald Publishing Limited
DOI 10.1108/JFC-01-2021-0012
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