Making Ends Meet and Competing Financial Priorities During COVID-19 Pandemic: A Study in A Malaysian Public University

This study analysed the financial behaviours of UiTM Melaka academicians before and during the movement control orders (MCOs) as imposed by the Malaysian Government due to COVID-19 pandemic. We examined the effect of financial risk tolerance (FRT), financial priority before and during MCO (FPBMCO and FPDMCO, respectively) on savings readiness behaviour (SR). Primary data were collected using non-probability judgmental sampling technique. 113 academicians from UiTM Melaka participated in a questionnaire through email. We employed structural equation modelling (SEM) to evaluate the relationship between FRT, FPBMCO, FPDMCO and SR. Only FRT has significant and positive effect towards SR. Thus, FRT is a better predictor of savings readiness as compared to FPDMCO and FPBMCO. However, we identified a substantial change in financial priorities during the MCO. This study imparts the importance of a sound financial planning and creates awareness on coping with volatile, uncertain, complex, and ambiguous (VUCA) environment such as COVID-19 pandemic. A better understanding of the factors influencing SR can help working individuals, financial advisors, financial institutions, and policymakers strengthen their understanding and increase initiatives towards financial preparedness. This study provides meaningful insights on how individuals can manage their risk tolerance level and key financial priorities to maintain their financial security. Malaysian working adults can utilise the findings to disentangle their financial vulnerabilities and improve their financial decision-making skills, for short- and long-run. The findings will also contribute to the body of knowledge in the area of financial preparedness research.