LETTERS: The financial literacy among our youth is alarmingly low, according to the headline of one article in this newspaper last year.
The Insolvency Department said 84,805 Malaysians were declared bankrupt between 2015 and 2019, with people below 34 making up 26 per cent of the cases.
Even more worrying, Bank Negara Malaysia stated that 47 per cent of Malaysian youth had high credit card debt.
The Covid-19 pandemic has brought about further challenges that has impacted society.
The Malaysian Financial Literacy Survey 2020 further highlights the worrying levels of financial literacy in the nation. The survey found that personal finance habits of Malaysians have not improved since 2019.
Also, 53 per cent of respondents could not survive more than three months with their savings, if they lose their job. Malaysians are also found to be spending what they earn or more than what they earn.
Another major concern is the lack of retirement planning.
A global survey by Standard Chartered Bank in 2020 showed that 74 per cent of millennials found managing money more difficult since the start of the pandemic.
Nevertheless, there have been efforts by agencies and organisations to elevate financial literacy among Malaysians.
Bank Negara has devised initiatives and programmes to help those in dire need of financial assistance.
The Financial Education Network (FEN), established in 2016, strives to increase the impact of financial education initiatives and identify new opportunities to elevate financial literacy among Malaysians.
During the Financial Literacy Month held last month, webinars, competitions, virtual information booths for children, students, youth, adults, retirees and Micro, Small- and Medium-Scale Enterprises were organised.
It is hoped that through these programmes, FEN can raise financial awareness, provide financial education and advice, as well as improve the people's financial wellbeing.
Being a university that focuses on education, Universiti Pendidikan Sultan Idris (UPSI) is well positioned, by collaborating with Bank Negara and FEN, to elevate the financial wellbeing of Malaysians through education.
The Faculty of Management and Economics has been involved in preparing students with knowledge and skills.
In collaboration with the Malaysian Financial Planning Council (MFPC), the faculty has included courses in its academic programmes to equip students with the technical know-how and professional certification that allows them to become certified financial planners, in line with the National Strategy for Financial Literacy 2019-2023.
To provide knowledge and skills about how to make money work, the faculty launched a Bursa Malaysia Simulation Lab in 2019.
This exposes students to financial analysis, trading and investments. This helps them master basic financial principles and understand trade-offs between risks and returns.
An area that is not much emphasised hitherto is the financial literacy needed among athletes.
There have been cases where retired athletes were found to be struggling financially.
This is a global issue that affects not only our athletes.
Hence, UPSI believes that there needs to be a concerted effort from ministries, sports bodies, Bank Negara and education institutions, specifically the Faculty of Sports Science and Coaching, to devise a better and structured programme to educate and raise the awareness of athletes in managing their finance and preparing for their future.
By setting up its own Financial Literacy Centre at the Faculty of Management and Economics, and collaborating with agencies, it is hoped that UPSI can raise people's financial literacy.
Professor Datuk Dr Md Amin Md Taff
Vice-chancellor, Universiti Pendidikan Sultan Idris (UPSI)
Associate Professor Dr Mohd Asri Mohd Noor
Dean, Faculty of Management and Economics, UPSI
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times