The relationship between financial management, youth, and mental health in Malaysia is a topic of growing importance. The financial challenges faced by young individuals can have a significant impact on their mental well-being. This article aims to shed light on the current scenario by providing statistical insights into the interplay between financial management, youth, and mental health in Malaysia. By understanding the statistics, policymakers and stakeholders can develop targeted interventions to support the financial and mental well-being of Malaysian youth.

Financial Stress and Mental Health:

According to a study conducted by Omar et al. (2019), financial stress has a profound impact on the mental health of Malaysian youth. The research revealed that 48% of university students experienced moderate to high financial stress levels, which were significantly associated with symptoms of anxiety and depression.

Debt Burden and Psychological Distress:

The burden of debt among Malaysian youth is another significant factor affecting their mental health. A survey conducted by the Malaysian Department of Statistics in 2020 found that 52.4% of individuals aged 15 to 29 had outstanding loans. Among these individuals, 30.6% reported experiencing psychological distress due to their financial obligations.

Low Levels of Financial Literacy:

The lack of financial literacy among Malaysian youth further exacerbates the relationship between financial management and mental health. According to the Financial Capability and Inclusion Survey conducted by Bank Negara Malaysia in 2019, only 33% of individuals aged 15 to 29 demonstrated a satisfactory level of financial literacy. Insufficient financial knowledge hinders effective financial management and contributes to higher levels of financial stress and mental health problems.

Impact on Academic Performance:

Financial management issues also impact the academic performance of Malaysian youth. The same study by Omar et al. (2019) found that financial stress negatively affected students’ academic achievements. Those with higher financial stress levels reported lower grade point averages and higher rates of academic probation.

Gender Disparities:

Statistics indicate that gender disparities exist concerning financial management and mental health among Malaysian youth. The Malaysian Department of Statistics reported that female youth were more likely to experience psychological distress related to debt compared to their male counterparts. This underscores the need for gender-specific interventions to address the unique challenges faced by young women in managing their finances and maintaining mental well-being.

Enhancing Financial Literacy:

Improving financial literacy among Malaysian youth is crucial for mitigating the impact of financial stress on mental health. Initiatives such as the National Strategy for Financial Literacy 2019-2023, implemented by the Securities Commission Malaysia, aim to enhance financial literacy among youth through targeted educational programs and campaigns. By equipping young individuals with the necessary financial knowledge and skills, they can better manage their finances and experience improved mental well-being.

The statistics highlight the pressing need to address the relationship between financial management, youth, and mental health in Malaysia. The high prevalence of financial stress, debt burden, and low levels of financial literacy among youth necessitate targeted interventions to support their financial and mental well-being. By implementing comprehensive financial literacy programs, promoting responsible financial management, and providing mental health support, stakeholders can empower Malaysian youth to navigate their financial futures with confidence and safeguard their mental well-being.

References:

Bank Negara Malaysia. (2019). Financial Capability and Inclusion Survey 2019. Retrieved from https://www.bnm.gov.my/-/financial-capability-and-inclusion-survey-2019

Malaysian Department of Statistics. (2020). Malaysian Economic Indicators: Household Income & Basic Amenities Survey Report 2019. Retrieved from https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=117&bul_id