The Influence of Digital Financial Literacy, Financial Socialization and Financial Practices towards Household Financial Well-Being among B40

Abstract

This study investigates the influence of digital financial literacy, financial socialization, and financial practices towards household financial well-being among the B40 community in Masjid Tanah, Melaka. Using a quantitative research design, data were collected from 294 respondents through structured questionnaires and analyzed using multiple regression analysis. The results revealed a strong positive relationship between the independent variables and household financial well-being (R = 0.822; R² = 0.675; p < 0.001), indicating that 67.5% of the variance in financial well-being is explained by these predictors. Among the variables, financial practices (β = 0.588, p < 0.001) and digital financial literacy (β = 0.457, p < 0.001) had significant positive effects, while financial socialization (β = 0.020, p > 0.05) showed a weak, insignificant influence. These findings demonstrate that behavioral and cognitive dimensions particularly financial literacy and prudent financial management are central determinants of household financial well-being within low-income contexts. The study highlights the need for targeted digital financial education and family-based financial socialization programs to enhance financial inclusion and promote sustainable financial well-being among Malaysia’s B40 households