The Empirical Study on the Relationship between Digital Financial Literacy, Financial Socialization and Financial Practices with Household Financial Well-Being among B40

Abstract

This study investigates the relationship between digital financial literacy, financial socialization, and saving and investment practices with 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 Pearson correlation analysis. The findings reveal that all independent variables have a positive and significant relationship with household financial well-being. Digital financial literacy shows a weak but significant relationship (r = 0.207, p < 0.001), while financial socialization demonstrates a moderate positive relationship (r = 0.302, p = 0.001). Saving and investment practices exhibit the strongest and most significant relationship (r = 0.658, p < 0.001), indicating that consistent saving and investment behaviors are key determinants of financial well-being among low-income households. The study contributes to the theoretical understanding of household financial well-being by highlighting the crucial role of practical financial behavior, social influences, and digital financial competencies.