Financial Preparedness of households: A Review

Abstract

Since COVID-19 will hit the world in early 2020, households have been hit with unanticipated risks that lower their income, cause them to lose their jobs, or cause them to lose family members. This situation got worse when the Movement Control Order (MCO), which is slowing down the economy, was kept in place for longer. Businesses aren't running as usual, people are afraid to be in crowded places, and the virus's sudden change makes things worse. Malaysia was recently hit by a flash flood in December 2021. Selangor is an important part of Malaysia's economy, so the flash floods there have affected many economic activities. This flash flood was also written down as one of the worst flash floods ever, and it forced about 4,000 people to leave their homes. But most households in Malaysia aren't financially ready, so they depend a lot on government help. Financial preparedness is one of the important expect in having financial stability, especially during the occurrences of unexpected risk. The study on financial preparedness usually involving old age and retirement process. However, new study on financial preparedness based on health and unexpected event had emerged. This study review on the financial preparedness of households. SCOPUS database were used on identify the journals used for this study. This study identifies the types of financial preparedness and the factors contributing to the financial preparedness of households.

Research paper

Keywords: Financial Preparedness, Households, Covid-19

Reference to this paper should be made as follows: Azhar, N. A. Z. M., & Shakil, N. S. M. (2022). Financial Preparedness of households: A Review. Journal of Entrepreneurship, Business and Economics, 10(2S2), 154–164.