Exploratory factor analysis of factors influencing financial behaviour of B40 women
List of Authors
  • Mas Aida Izzaidah Mas Kamarulzaman , Normala Zulkifli

Keyword
  • Financial Behaviour, B40 Women, Exploratory Factor Analysis

Abstract
  • The financial well-being of an individual and his/her family, including B40 women, is influenced by his/her financial behaviour. Financial behaviour is characterised by how well a person manages his/her finances in terms of the budget management, insurance and financial savings. One’s financial behaviour is evident in the way he or she handles cash, debts, investments and other spending. An individual’s inability to manage financial issues may result in the person making inappropriate financial decisions and will cause a burden in the future. The purpose of this study is to explore the factors which influence the financial behaviour of B40 women. This pilot study was conducted using random sampling on a population in Hilir Perak. A total of 100 B40 women were chosen as the respondents in this pilot study. The data was collected in a period of 4 weeks. The IBM-SPSS 25.0 software was used to analyse the data. The instrument was divided into 4 components, which were financial literacy, social influence, locus of control and financial technology. The results from the exploratory factor analysis found that all the 20 items were accepted due to the factor loading value of more than the minimum of 0.6. However, items numbered 2 and 4 from the financial literacy were deleted due to the factor loading values of 0.520 and 0.507, respectively. As such, before starting the data collection in the field study, the components which measured the structure in each component were rearranged for the local context.

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