Resilience and Insights: Bumiputera Parental Investment in Education Amidst Challenges

Abstract

Higher education plays a vital role in human capital development and a nation's economic growth. Nonetheless, parents' awareness of saving is still low. This paper explores the factors that influence Bumiputeras' financial investment in their children's education. A survey was conducted in the Klang Valley with 311 respondents. The findings show that Bumiputera parents' intention to save for their children's education is high, but financial constraints remain as the main challenge. An Exploratory Factor Analysis identified financial ability, source of knowledge and financial behaviour, financial stress, credit card usage, and financial responsibility as factors with a significant influence on Bumiputeras' financial wellbeing. These findings highlight a few policy implications to encourage parental investment. Financial education about the need to save for children's education raises parents' early awareness. In addition, an insurance system combined with education savings may stimulate parental investment. Education is crucial to enabling Bumiputera to escape poverty.