Modelling Financial Behaviour and Mobility Aspirations in Youth

Abstract

This study examines how family financial socialisation shapes travel norms and mobility aspirations among Malaysian young adults through the lens of Prospect Theory. In the context of rising youth travel trends and increasing financial pressures, understanding how early financial experiences influence mobility decisions is increasingly important. The significance of this study lies in its integration of behavioural finance into tourism research, providing insights into how financial upbringing influences sustainable travel behaviour. The aim of this study is to investigate the influence of family financial socialisation on mobility aspirations among Malaysian young adults. Specifically, the objectives are to identify the overall level of key financial constructs, to analyse the relationships between financial socialisation, financial literacy, and mobility aspirations, and to determine the mediating role of financial behaviour. A quantitative cross-sectional design was employed, incorporating data from 393 respondents and analysed using Structural Equation Modelling (SEM) with AMOS. Descriptive findings indicate moderate levels of financial socialisation, financial literacy, and financial behaviour, alongside relatively high mobility aspirations. Confirmatory Factor Analysis demonstrated satisfactory measurement properties, with factor loadings above 0.50, composite reliability between 0.70 and 0.85, and average variance extracted exceeding recommended thresholds. The structural model showed acceptable fit indices (χ²/df = 2.30, CFI = 0.915, TLI = 0.900, RMSEA = 0.058, SRMR = 0.054). Results reveal that financial socialisation significantly predicts financial literacy (β = 0.36, p < 0.001), which subsequently influences financial behaviour (β = 0.41, p < 0.001). Financial behaviour significantly affects mobility aspirations (β = 0.38, p < 0.001), with partial mediation observed. However, this study is limited by its cross-sectional design and reliance on self-reported data, which may affect causal interpretation. Consistent with Prospect Theory, individuals with stronger financial capability are more likely to perceive travel as a gain rather than a loss. The findings underscore the importance of early financial socialisation in promoting responsible financial behaviour and sustainable travel decision-making among youth.