The Relationship of Financial Literacy on Individual Savings: A Study of Universiti Malaysia Sarawak (Unimas) Staff

Lack of financial literacy can cause significant stress due to poor money management, leading to insufficient savings for future needs and no emergency funds, which can worsen financial crises and hinder one's ability to cope with unexpected expenses. This study aims to examine the impact of financial literacy on the personal savings behaviour of UNIMAS staff. It also examines the relationship between financial education, work experience, financial literacy, risk tolerance, and health insurance and UNIMAS staff's personal savings. According to the Theory of Planned Behaviour, individuals are more likely to engage in financially literate behaviours if they have a positive attitude towards financial management, perceive social support for these behaviours, and believe they have the ability and resources to manage their finances effectively. The research uses a self-administered questionnaire and a quantitative cross-sectional design to collect data on financial literacy, personal savings behaviour, and relevant demographic characteristics of university staff. Employees of Unimas comprise the population of interest. The study analyzed 30 usable responses and interpreted the findings cautiously due to the small exploratory sample and its potential limitations in statistical power and generalisability. This research found no statistically significant relationship between financial literacy, risk tolerance, educational attainment, professional experience, and insurance awareness and personal savings among UNIMAS academic staff. The results underscore the importance of financial literacy and strategic financial planning, while future studies should use a broader sample and include additional variables, such as income, financial obligations, and spending patterns.