A comparison on financial literacy between welfare recipients and non-welfare recipients in Brunei

Abstract

Purpose

The purpose of this paper is to provide insights onto the level of financial literacy in Brunei, notably focussing on the findings of welfare recipient’s vis-à-vis non-welfare recipients.

Design/methodology/approach

Findings are based on structured interviews with 431 heads of households (215 welfare recipients and 216 non-welfare recipients), within the realm of money management, emergency planning and investing for goals. To analyze the data, Pearson’s χ2 test and logistic regressions are undertaken.

Findings

The findings underline the importance of enhancing the level of financial literacy, notably for low-income households and those in poverty, as the analysis highlighted their level of financial literacy was significantly lower than non-welfare recipients.

Research limitations/implications

Future researches may want to consider a random sampling approach and/or using other districts in the country, to ascertain a representative set of findings.

Practical implications

The implication of the findzings highlights the need for welfare programs to consider incorporating financial literacy programs, designed specifically for welfare recipients, distinct from non-welfare recipients.

Originality/value

There is currently no known research on financial literacy related to Brunei. Further, the paper also focusses on financial literacy, as a means to assist those in welfare or poverty, in order to enhance their financial well-being.

Citation

Pg Md Salleh, A.M.H.A. (2015), "A comparison on financial literacy between welfare recipients and non-welfare recipients in Brunei", International Journal of Social Economics, Vol. 42 No. 7, pp. 598-613. https://doi.org/10.1108/IJSE-09-2013-0210