IDEAS home Printed from https://ideas.repec.org/a/rnd/arimbr/v15y2023i3p462-469.html
   My bibliography  Save this article

Nexus between Government Assistance and Savings: Preliminary Analysis of Households in Malaysia

Author

Listed:
  • Nurul Syifaa Mohd Shakil
  • Nur Azirah Zahida Mohamad Azhar
  • Norashida Othman
  • Ahmad Zuhairi Zainuddin
  • Lucky Rachmawati
  • Tony Seno Aji
  • Hendry Cahyono

Abstract

This preliminary study investigates the relationship between government assistance and household savings. The study aimed to shed light on whether government assistance programs directly influence households' savings habits. Data were collected from 25 representative sample households, including their income, expenses, savings, and participation in government assistance programs. The study examined how much money households could save regularly. The study suggested a significant correlation, between government assistance and household savings. Families that received some form of government support demonstrated a lower propensity to save than those who did not receive assistance. This trend was consistent across different income brackets and demographic groups. The researchers proposed several potential reasons for this relationship. There can be several reasons for this negative relationship. First, increased government assistance may alleviate financial strain and provide immediate relief for individuals or households, reducing the urgency or perceived need to save for future expenses or emergencies. Second, some government assistance programs may have income limits or asset tests that discourage or restrict saving behavior. It is important to note that this study was preliminary, and further research is necessary to establish a more robust understanding of the relationship between government assistance and household savings. Future studies could delve into the long-term effects of government support on savings behavior and investigate the specific mechanisms through which assistance programs influence savings habits. The preliminary findings suggest a negative association between government assistance and household savings. It emphasizes the importance of further exploring this relationship to understand household financial well-being comprehensively.

Suggested Citation

  • Nurul Syifaa Mohd Shakil & Nur Azirah Zahida Mohamad Azhar & Norashida Othman & Ahmad Zuhairi Zainuddin & Lucky Rachmawati & Tony Seno Aji & Hendry Cahyono, 2023. "Nexus between Government Assistance and Savings: Preliminary Analysis of Households in Malaysia," Information Management and Business Review, AMH International, vol. 15(3), pages 462-469.
    • Handle: RePEc:rnd:arimbr:v:15:y:2023:i:3:p:462-469
    DOI: 10.22610/imbr.v15i3(SI).3502
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/3502/2238
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/3502
    Download Restriction: no
    File URL: https://libkey.io/10.22610/imbr.v15i3(SI).3502?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kyoung Tae Kim & Melissa J. Wilmarth, 2016. "Government Subsidies and Household Debt Burden After the Great Recession," Journal of Family and Economic Issues, Springer, vol. 37(3), pages 349-358, September.
    2. Yoshie Sano & Sheila Mammen & Myah Houghten, 2021. "Well-Being and Stability among Low-income Families: A 10-Year Review of Research," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 107-117, July.
    3. Bendig, Mirko & Giesbert, Lena & Steiner, Susan, 2009. "Savings, Credit and Insurance: Household Demand for Formal Financial Services in Rural Ghana," GIGA Working Papers 94, GIGA German Institute of Global and Area Studies.
    4. Sarah Miller & Luojia Hu & Robert Kaestner & Bhashkar Mazumder & Ashley Wong, 2021. "The ACA Medicaid Expansion in Michigan and Financial Health," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 40(2), pages 348-375, March.
    5. Yoon G. Lee & Emily Hales & Heather H. Kelley, 2023. "Financial Behaviors, Government Assistance, and Financial Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 166(1), pages 85-103, February.
    6. Jing Xiao & Cheng Chen & Fuzhong Chen, 2014. "Consumer Financial Capability and Financial Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(1), pages 415-432, August.
    7. Indervir Singh & Jagdeep Singh & Ashapurna Baruah, 2020. "Income and Employment Changes Under COVID-19 Lockdown: A Study of Urban Punjab," Millennial Asia, , vol. 11(3), pages 391-412, December.
    8. Steven Stillman, 2001. "The Response of Consumption in Russian Households to Economic Shocks," William Davidson Institute Working Papers Series 412, William Davidson Institute at the University of Michigan.
    9. Thérèse Lind & Ali Ahmed & Kenny Skagerlund & Camilla Strömbäck & Daniel Västfjäll & Gustav Tinghög, 2020. "Competence, Confidence, and Gender: The Role of Objective and Subjective Financial Knowledge in Household Finance," Journal of Family and Economic Issues, Springer, vol. 41(4), pages 626-638, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yoon G. Lee & Emily Hales & Heather H. Kelley, 2023. "Financial Behaviors, Government Assistance, and Financial Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 166(1), pages 85-103, February.
    2. Jibin Antony & Binu Mathew Job & Antony Thomas, 2024. "Direct and Indirect Effects of Self-Esteem on Financial Satisfaction," International Journal of Economics and Financial Issues, Econjournals, vol. 14(5), pages 251-261, September.
    3. Sajid, Muhammad & Mushtaq, Rizwan & Murtaza, Ghulam & Yahiaoui, Dorra & Pereira, Vijay, 2024. "Financial literacy, confidence and well-being: The mediating role of financial behavior," Journal of Business Research, Elsevier, vol. 182(C).
    4. Fan, Lu & Chatterjee, Swarn & Kim, Jinhee, 2022. "Young adults’ personality traits and subjective well-being: The role of perceived money management capability," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    5. Jiří Pospíšil & Nataša Matulayová & Pavla Macháčková & Pavlína Jurníčková & Ivana Olecká & Helena Pospíšilová, 2021. "Value-Based Financial Risk Prediction Model," Risks, MDPI, vol. 9(11), pages 1-24, November.
    6. Joan Costa-Font & Nilesh Raut & Courtney H. Van Houtven, 2024. "Medicaid Expansion and the Mental Health of Spousal Caregivers," Review of Economics of the Household, Springer, vol. 22(3), pages 1047-1084, September.
    7. Thomas A. Hanson, 2022. "Family Communication, Privacy Orientation, & Financial Literacy: A Survey of U.S. College Students," JRFM, MDPI, vol. 15(11), pages 1-13, November.
    8. Castro, Damaris & Bleys, Brent, 2023. "Do people think they have enough? A subjective income sufficiency assessment," Ecological Economics, Elsevier, vol. 205(C).
    9. Chen, Fuzhong & Hsu, Chien-Lung & Lin, Arthur J. & Li, Haifeng, 2020. "Holding risky financial assets and subjective wellbeing: Empirical evidence from China," The North American Journal of Economics and Finance, Elsevier, vol. 54(C).
    10. Arun, Thankom Gopinath & Bendig, Mirko, 2010. "Risk Management among the Poor: The Case of Microfinancial Services," IZA Discussion Papers 5174, Institute of Labor Economics (IZA).
    11. Dang,Hai-Anh H. & Lokshin,Michael M. & Abanokova,Ksenia & Bussolo,Maurizio, 2018. "Inequality and Welfare Dynamics in the Russian Federation during 1994-2015," Policy Research Working Paper Series 8629, The World Bank.
    12. Talwar, Manish & Talwar, Shalini & Kaur, Puneet & Tripathy, Naliniprava & Dhir, Amandeep, 2021. "Has financial attitude impacted the trading activity of retail investors during the COVID-19 pandemic?," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    13. Margaret Gough Courtney, 2023. "Did the Affordable Care Act’s Medicaid Expansion Change Cohabitation Trends?," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(3), pages 1-26, June.
    14. Naseem Al Rahahleh, 2023. "Determinants of the Financial Capability: The Mediating role of Financial Self-efficacy and Financial Inclusion," International Journal of Economics and Financial Issues, Econjournals, vol. 13(6), pages 15-29, November.
    15. Jae Min Lee & Jonghee Lee & Kyoung Tae Kim, 2020. "Consumer Financial Well-Being: Knowledge is Not Enough," Journal of Family and Economic Issues, Springer, vol. 41(2), pages 218-228, June.
    16. Mukhopadhyay, Sankar, 2022. "The Effects of Medicaid Expansion on Job Loss Induced Mental Distress during the COVID-19 Pandemic in the US," IZA Discussion Papers 15150, Institute of Labor Economics (IZA).
    17. Sara Fernández‐López & Marcos Álvarez‐Espiño & Lucía Rey‐Ares & Sandra Castro‐González, 2024. "Consumer financial vulnerability: Review, synthesis, and future research agenda," Journal of Economic Surveys, Wiley Blackwell, vol. 38(4), pages 1045-1084, September.
    18. Samuel Dodini, 2023. "Insurance Subsidies, the Affordable Care Act, and Financial Stability," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(1), pages 97-136, January.
    19. Steven Stillman & Duncan Thomas, 2008. "Nutritional Status During an Economic Crisis: Evidence from Russia," Economic Journal, Royal Economic Society, vol. 118(531), pages 1385-1417, August.
    20. Shaifali Chauhan & Richa Banerjee & Vishal Dagar, 2023. "Analysis of Impulse Buying Behaviour of Consumer During COVID-19: An Empirical Study," Millennial Asia, , vol. 14(2), pages 278-299, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arimbr:v:15:y:2023:i:3:p:462-469. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/imbr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.