Determinants of Financial Literacy Among Working Local Professionals in the Region of Mecca, Saudi Arabia

Hamdino Hamdan; Salem Mohammed Alammari

doi:10.7187/GJATSI2020-4

Authors

Hamdino Hamdan International Islamic University Malaysia, P.O. Box 10, 50728 Kuala Lumpur, Malaysia
Salem Mohammed Alammari International Islamic University Malaysia, P.O. Box 10, 50728 Kuala Lumpur, Malaysia

DOI:

https://doi.org/10.7187/GJATSI2020-4

Keywords:

Financial literacy, Financial attitude, Financial knowledge, Financial behaviour

Abstract

Due to the new economic reforms in Saudi Arabia and the introduction of the value-added tax, there is an increased need to enhance the public workers’ financial literacy. Based on previous studies, financial literacy among the Saudis is generally poor. The objective of this study is to examine the degree of financial literacy among the civil servants in the Meccan region of Saudi Arabia, identifying the determinants of financial literacy among them. This study used descriptive analysis, ANOVA, and multiple linear regression analysis to analyse the primary data collected from 162 public sector workers. The study results reveal above-average financial literacy among public sector workers. ANOVA test indicates that there is a difference between the monthly income of public sector workers and level of education groups. Nevertheless, the multiple regression analysis shows that financial behaviour and financial attitude are positively affecting financial literacy among public sector workers. This study also recommends some possible ways to enhance, improve, and increase awareness, importance, and the need for financial literacy among public sector workers.

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