Assessment of Financial Literacy: The Case of Hawkers in Sarawak, Malaysia

Abstract

The purpose of the study is to assess the financial literacy of hawkers, describe the level of financial behaviour and attitude as well as to assess the level of financial awareness of hawkers in Pasar Tamu Bintulu, Sarawak, Malaysia. The study involves a sample size of 60 participants, who were randomly selected using simple random sampling. Data was collected through a survey questionnaire, which was analyzed using the Statistical Package for Social Sciences (SPSS), with descriptive statistics and crosstabulation are used to interpret the results. The survey results reveal that the financial literacy of hawkers in Pasar Tamu, Bintulu, Sarawak is deficient, with the elderly hawkers displaying lower financial knowledge. The research also observed that individuals with lower educational levels exhibited adverse financial practices. Furthermore, most of the hawkers were unfamiliar with various investment products and failed to utilize them effectively. The study revealed that most of the hawkers lacked financial awareness and had limited knowledge of how to use financial products and services offered in the market. The study's results indicate a requirement to enhance the financial literacy and education of both the surveyed participants and the general population, enabling them to make informed financial choices. The research emphasizes the significance of individuals acquiring adequate knowledge on personal finance, investments, and other financial matters to secure their financial future and avoid making costly errors. The study highlights the necessity for financial institutions, governments, and non-profit organizations to provide easily accessible and effective financial education programs and resources, such as workshops, online courses, and other educational initiatives. By implementing these measures, individuals can develop the skills and knowledge required to manage their finances and achieve their financial objectives. This study may be the first to evaluate the financial literacy of hawkers, as most prior research has focused on the financial literacy of SMEs.