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Financial Anxiety, Family Support & Financial Literacy: Factors Influencing the Academic Performance of Malaysian University Students

Year: 2026

Type: article

Abstract: This study investigates the relationship between financial stress and academic performance among Malaysian university students, focusing on financial anxiety, family financial support, and financial literacy as primary independent variables. A quantitative cross-sectional survey was conducted using an online structured questionnaire, primarily targeting undergraduate students at Universiti Teknologi MARA (UiTM) Seremban 3 campus, with additional responses from the Seri Iskandar and Puncak Alam campuses. The final dataset comprised 193 usable responses, which were analyzed using descriptive statistics and Pearson correlation analysis in SPSS. The demographic analysis indicates a highly vulnerable student population, with 62.2% from Bottom 40% (B40) low-income households and 40.9% primarily dependent on educational loans. The results demonstrate a statistically significant, moderate-to-strong positive correlation between financial anxiety and academic performance (r = .595, p < .001), implying that financial anxiety may serve as a stress-induced motivator associated with high stakes and economic responsibility. In contrast, family financial support (r = -.069, p = .338) and financial literacy (r = .022, p = .766) show no significant association with academic performance. These findings suggest that psychological and emotional responses to financial strain have a more substantial effect on academic achievement than parental financial support or self-reported financial literacy. Therefore, it is recommended that universities and policy stakeholders adopt comprehensive student support frameworks, including targeted mental health counseling, conditional financial aid, and practical resource management modules, to alleviate anxiety and promote long-term academic resilience.

Source: International Journal of Education Psychology and Counseling

DOI: 10.35631/ijepc.1164104

Authors: Noorliana Safian, Khairiyah Md Shahid, Shawal Sahid Hamid@ Hussain, Nor Syamaliah Ngah, Norazlin Abd Aziz, Saidatul Akma Hamik

Institutions: Universiti Teknologi MARA System, Universiti Teknologi MARA

Language: English

Topic: Student Stress and Coping

Subfield: Developmental and Educational Psychology

Field: Psychology

Domain: Social Sciences

SDG: Quality education

Open Access status: diamond

Funder: Universiti Teknologi MARA