INTERPLAY OF FINANCIAL RISK TOLERANCE IN RELATION TO FINANCIAL BEHAVIOUR AND FINANCIAL WELL-BEING AMONG YOUTH IN SABAH, MALAYSIA

Abstract

Interest in financial well-being has grown rapidly in recent years. However, the impact of financial risk tolerance on financial well-being, particularly regarding money management stress and future financial security, remains underexplored. This study assessed the relationship between these two variables among youth in Sabah, Malaysia. Additionally, it examined financial behaviour as a potential mediator in this relationship. A Partial Least Squares Structural Equation Modelling (PLS-SEM) approach was employed for data analysis using SmartPLS 4.0. Data were collected from 300 respondents aged 15 to 30, representing Sabahan youth. The findings provide valuable insights for government agencies addressing financial wellbeing, serve as a foundation for future research in this area, and highlight the need for youth to enhance their financial literacy and improve their personal financial practices.