Intention to engage in financial planning: does motivation matter?

Financial planning, as a life-long process of managing wealth and debt (Allen, 2007; Gladstone and Hundtofte, 2023), contributes to both tangible (consumption) and intangible (feelings of security and peace of mind about the future) life outcomes (Newton et al., 2015; Grable and Joo, 2022). Since individual goals and needs vary across different phases of life, financial planning is regarded as a dynamic process (Gitman and Joehnk, 2005) that helps to secure well-being. The importance of financial planning arises due to unexpected situations (e.g. the COVID-19 pandemic), retirement, or periods of hardship when consumers face greater medical expenses and lower income.

Financial planning is utilized across various disciplines and traces its roots to Modigliani and Brumberg’s Life-Cycle Hypothesis, encompassing both economic and financial domains (Altfest, 2004; Lamas, 2024). This hypothesis posits that utility is a function of consumption, dependent on both current and future (projected lifetime) resources. It also accounts for future resources by discounting anticipated income and wealth to their present value. The Life-Cycle Hypothesis thus represents financial planning for the “future,” as opposed to living solely for “today.” The concept of balancing today versus the future, known as intertemporal choice, is fundamental to financial planning. This core focus emphasizes the future and reduces the impatience and present bias commonly observed among youth (Becker and Mulligan, 1997; Li et al., 2023).

While this classical model provides a robust foundation for understanding financial planning behaviour, real-world trends increasingly challenge its assumptions. Modern influences, such as the rapid expansion of credit markets and the increasing accessibility of consumer debt, have introduced significant shifts in household financial decision-making (Feng et al., 2019; Gomes et al., 2021). These developments often encourage a “consume today” mentality, diverging from the forward-looking perspective emphasized in the Life-Cycle Hypothesis. Consequently, household debt levels have increased significantly across various countries, reducing future consumption capacity (Dynan and Edelberg, 2013; Kukk, 2019; Shostya and Banai, 2023). Beyond the adverse impacts on future utility, the rise in current consumption and indebtedness potentially exposes households to higher financial risks (Yunchao et al., 2020).

Moreover, the COVID-19 crisis—an eye-opener for families and governments—has shown that long-term financial planning is not a luxury but a necessity. It has prompted a shift in government policies from cheap financing toward greater household awareness of long-term financial needs and resources. Financial planning is increasingly considered a cognitive-behavioural ability (Zhu, 2018; Sobkow et al., 2020), requiring both objective and subjective financial knowledge, defined as an individual’s perception of their understanding of financial matters as well as the practical application of this knowledge (Allgood and Walstad, 2016; Dawson, 2023).

The importance of financial planning is particularly evident among youth, as poor financial decisions can impact their future independence in adulthood (Akben-Selcuk, 2015; Shim et al., 2015). For example, high consumption debt or excessive borrowing may lead to financial instability and delay the achievement of adult independence. Research has shown that family social background and authoritative parenting style influence youth saving behaviour (Ashby et al., 2011; Almeida and Santos, 2024), ultimately affecting their attitudes toward financial planning. Parents are recognized as the primary and most influential financial socialization agents for youth (Albeerdy and Gharleghi, 2015; Shim et al., 2015; Agnew and Sotardi, 2024), contributing significantly to the development of financial attitudes during adolescence (Van Campenhout, 2015). Parents not only directly teach objective financial knowledge but also consciously and unconsciously transmit financial norms (Moschis, 1985). Children are more likely to internalize financial lessons and values from parents when they receive allowances (not as wages in exchange for labour).

In this work, we examine how psychological theories explain the intention to engage in financial planning. We argue that these theories offer new avenues for households to invest psychologically in their children from a young age. Researchers have increasingly integrated constructs and processes from multiple theories (Chan et al., 2015a, b, 2020), which provides a more comprehensive explanation of intentional behaviour. Among various behavioural approaches linking action to motivation, the integration of two theories—Self-Determination Theory (SDT) (Deci and Ryan, 1985a, b) and the Theory of Planned Behavior (TPB) (Ajzen, 1991)—has been widely used across contexts such as education (e.g. Zhou, 2016; Hollett et al., 2020; Lung-Guang, 2019); sport, exercise, and diet (e.g. Chan et al., 2020; Hagger and Chatzisarantis, 2014; Chan et al., 2015a, b; Caso et al., 2024); social networking (e.g. Luqman et al., 2018); eco-friendly house construction (e.g. Jose and Sia, 2022); and entrepreneurship (e.g. Tadi et al., 2023). While TPB is a prototypical framework to explain the processes leading to specific behaviours, SDT stands out among motivational theories for its emphasis on different types and sources of motivation.

According to SDT, motivation exists on a continuum between fully volitional and wholly external drivers. Volitional motivations stem from an individual’s beliefs and values, while external motivations reflect coercive pressures from culture, society, or significant others (Villalobos-Zúñiga and Cherubini, 2020; Quatrin et al., 2024). Theoretically, various motivational orientations in SDT are proposed as determinants of TPB constructs (Hagger and Chatzisarantis, 2009, 2014; Hagger et al., 2002a; Caso et al., 2024). Specifically, SDT’s distinction between autonomous motivation (engaging in behaviour out of interest or personal value) and controlled motivation (driven by external pressure) may influence TPB variables such as attitude and intention. For example, autonomous motivation can foster more favourable attitudes and stronger intentions toward a behaviour, while controlled motivation may lead to compliance without long-term commitment. This aligns with the propositions of Deci and Ryan (2000) and Ajzen (1991), who suggest that TPB components serve as belief-based mediators of the effects of distal influences such as motivation.

The literature reveals that young adults respond strongly to parental financial role modelling (Bandura, 1986; Moschis and Churchill, 1978; Shim et al., 2010; Sirsch et al., 2020a, b). This role becomes more pronounced considering that financial habits developed during adolescence are likely to persist into adulthood (Shim et al., 2010). Therefore, the current study goes a step further by exploring socialization practices (e.g. by parents) as key components in the development of financial motivation among young adults. While SDT proposes that individuals naturally engage in behaviour aligned with their values and interests, it also highlights the role of social agents—particularly through “autonomy support”—in promoting self-regulated behaviour (Soenens and Vansteenkiste, 2005; Selvamani et al., 2024). An autonomy-supportive environment strengthens both the individual’s sense of connectedness with social agents (such as parents) and their personal agency. In such environments, parents demonstrate empathy for their children’s perspectives, encourage personal interests and values, and thus contribute to the formation of autonomous motivation. This, in turn, reinforces the development of positive attitudes and intentions, as outlined in TPB.

This study was conducted in the context of Malaysia where despite a well-developed financial infrastructure, a significant portion of the population faces financial challenges (Financial Stability and Payment Systems Report [FSPS], 2017). According to the RinggitPlus (2023) Malaysian Financial Literacy Survey 2023, 44% of Malaysian adults have not started financially planning for their retirement, and 48% do not have a life insurance policy.

This study was conducted in the Malaysian context, where, despite a well-developed financial infrastructure, a significant portion of the population faces financial challenges. According to the RinggitPlus Malaysian Financial Literacy Survey 2023, 44% of Malaysian adults have not started planning for retirement, and 48% do not hold a life insurance policy. Additionally, a survey by UCSI in January 2023 reported that 73% of Malaysians aged 18 to 40 are in debt, primarily due to financial constraints, inflation, and pursuit of a luxurious lifestyle (Malay Mail, 2023). Furthermore, the Malaysian Consumer and Borrower Settlement Association (4PM) reported that, as of August 2024, the highest number of bankrupt individuals fell within the 35–44 age group, totalling 13,757 cases (WargaBiz, 2023). The increasing trend of borrowing among individuals under 40 highlights poor financial planning as a key driver of the nation’s low financial well-being (AFBES’18, 2018).

This study makes a novel contribution by integrating Self-Determination Theory (SDT) and the Theory of Planned Behavior (TPB) to examine financial planning intentions among Malaysian youth, a demographic facing rising debt and financial literacy challenges (Malay Mail, 2025; The Malaysian Insight, 2024). While TPB has been widely used in financial behaviour research (Ajzen, 1991; Shim et al., 2010) and SDT has been extensively applied in motivation studies (Deci and Ryan, 2000; Park, 2021), this study uniquely combines these frameworks to explore the mediating role of motivational quality in financial decision-making. While TPB has been widely used in financial behaviour research (Ajzen, 1991; Shim et al., 2010) and SDT has been extensively applied in motivation studies (Deci and Ryan, 2000; Park, 2021), this study uniquely combines these frameworks to explore the mediating role of motivational quality in financial decision-making.

By introducing perceived autonomy support as an antecedent to intrinsic and extrinsic motivations, this study offers a culturally contextualized exploration of how familial and social influences shape financial decision-making (Van Campenhout, 2015; Kim and Torquati, 2019). By examining the determinants of financial planning attitudes in a collectivist society where family influence is strong, this study highlights key factors that shape adolescents' financial preparedness, offering insights distinct from those in Western contexts where financial independence is emphasized.

Financial planning is the process of meeting individuals’ life goals through the proper management of finances. These goals can vary from buying a home or car to saving for children’s future education or one’s retirement. Personal financial planning can be rooted in one of the most venerable economic frameworks known as the “life-cycle framework,” introduced by Ramsey (1928) and Fisher (1930). In its simplest form, the life-cycle model purports that if income follows a hump-shaped trajectory (declining at retirement), consumers will save during their younger years to support future consumption in later life when they begin to dissave (Attanasio and Weber, 2010). The evolution of the life-cycle or permanent income model has shaped it into a new standard for modern macroeconomics, in which intertemporal allocation of time, effort, and money is considered (Brounen et al., 2016). The life-cycle framework provides a lens through which to observe how well households smooth consumption over different life stages. Smoothing does not mean keeping consumption and expenditure constant; rather, it refers to maintaining the marginal utility of money at a stable level over time. In an era with an increasing variety of financial products and services (Lusardi and Mitchell, 2014), individuals must be equipped with sufficient financial knowledge and an understanding of personal finance to smooth lifelong consumption effectively.

Currently, financial planning has moved beyond the domain of policymakers and has attracted growing attention from researchers seeking to understand the factors and mechanisms that explain individuals’ intention to engage in financial planning (Antoni and Matchaba-Hove, 2016; Othman and Fisol, 2018; Sadiq and Khan, 2019). Among the theories proposed to explain behavioural intention, Self-Determination Theory (SDT) is a comprehensive framework that provides a theoretical basis for understanding human motivation—either facilitating or forestalling growth-oriented processes (Niemiec and Ryan, 2009). Moreover, SDT is regarded as providing the foundation for the belief-based Theory of Planned Behavior (TPB) (Ajzen, 1991). TPB posits that belief-based factors determine the intention to perform a specific behaviour. Therefore, in the extant literature, need-based motives are often considered antecedents of belief-based TPB constructs (Chen et al., 2021; Hagger and Chatzisarantis, 2009, 2014; Hagger et al., 2002a; Hamilton et al., 2017). The integration of these two key behavioural theories—SDT and TPB—explains how individuals strategically form the intention to pursue behaviour consistent with their internal motives (Chan et al., 2020; Deci and Ryan, 1985a, b).

SDT, as a predictor of the intention to perform a behaviour, aims to address some of the shortcomings of TPB. Although numerous studies have affirmed the validity of TPB, the theory does not adequately capture social influences (Chatzisarantis et al., 2008). Furthermore, the TPB framework is limited in its ability to discern whether a motivation is derived from an autonomous or controlled source (Armitage and Conner, 2001; Hagger et al., 2002b). Therefore, to understand the full influence of social factors, non-pressuring forms of social influence—such as motivation—must be considered. For this reason, the current study utilises SDT to explain behavioural intention, incorporating motivation as an antecedent within the TPB framework.

Although the integration of these two prominent theories and the relationship between SDT and TPB has been explored in domains such as health (Chung et al., 2018; Hagger and Chatzisarantis, 2009) and work (Stenius et al., 2017), it has rarely been applied to financial planning. This study takes a step further by extending the integrated theoretical model to include the role of parents (i.e. autonomy support) as an antecedent to SDT in this process. In other words, this study first proposes that parents’ autonomy support explains young adults’ intention to engage in financial planning by influencing their motivation, which in turn determines their financial planning attitude.

According to SDT, the continuum of motivational drivers influences varying degrees of self-determination. The quality of motivation is conceptualized through the “Perceived Locus of Causality (PLOC)” spectrum, which ranges from completely self-selected (autonomous) causes on one end to completely extrinsically motivated (controlled) causes on the other. Intrinsic motivation, the most autonomous form, is referred to as internal PLOC (DeCharms, 2013; Deci and Ryan, 1985a, b), where individuals engage in an activity because it is inherently interesting or enjoyable (Guay et al., 2013; Ryan and Deci, 2000). At the other extreme, impersonal locus of control reflects amotivation—a lack of desire or reason to perform a behaviour (Deci and Ryan, 2000). In this state, individuals not only find the behaviour uninteresting but also fail to perceive a link between the behaviour and its consequences. The middle of the continuum refers to situations in which extrinsic motivation drives behaviour in pursuit of desirable outcomes. SDT further distinguishes between various types of extrinsic motivation based on their degree of autonomy (Guay et al., 2013; Villalobos-Zúñiga and Cherubini, 2020). Identified regulation is a more autonomous form of extrinsic motivation, where actions are taken because the outcomes are personally valued. In contrast, external regulation is the most controlled form, driven by external rewards, constraints, or punishments (Guay et al., 2013). It is also described as motivation to satisfy an external demand (Wilson and Rodgers, 2004).

SDT postulates that the fulfilment of basic human needs, such as autonomy, enhances motivation and promotes psychological well-being (Deci and Ryan, 2000). The need for autonomy is not merely about acting independently, but rather about acting with a sense of choice and volition—even when conforming to others' expectations. In this regard, an autonomy-supportive environment is characterized by offering choices and explaining the rationale behind any imposed rules (Soenens et al., 2015). Previous research has shown that people may process instructions more effectively and feel more motivated when the message is delivered in a way that respects their need for autonomy (Altendorf et al., 2020).

Perceived autonomy support has been introduced as an effective construct in improving the prediction of intention (Chatzisarantis et al., 2007, 2008). Given its role in enhancing the predictive ability of the TPB model (Kor and Mullan, 2011), this study hypothesizes a positive relationship between perceived autonomy support and the intention to engage in financial planning. Thus, the first hypothesis is:

By avoiding controlling behaviour, an autonomy-supportive environment contributes to individuals’ inner motivations and interests by offering meaningful choices within a clear structure (Stone et al., 2009). As postulated by SDT, contexts perceived as autonomy-supportive are associated with higher levels of intrinsic motivation and identified regulation. In contrast, such environments are less conducive to external regulation driven by social coercion (Deci and Ryan, 1985a, b; Ryan, 1995; Ryan and Deci, 2000). Research has consistently shown that higher levels of perceived autonomy support foster positive motivational outcomes (Black and Deci, 2000; Guay et al., 2013; Guay and Vallerand, 1996; Vallerand et al., 1997). In settings such as exercise and health (Allison et al., 2021; Wilson and Rodgers, 2004) and education (Black and Deci, 2000; Cronin et al., 2019; Hornstra et al., 2021; Zhou et al., 2019), the relationship between the perceived interpersonal context and the motivational continuum has been well established. Since social agents—such as parents, friends, and teachers—serve as important role models in guiding youth to adopt various behaviours (Jia and Yu, 2021), perceiving these agents as supportive of autonomy underpins motivation to engage in behaviour. Therefore, perceived autonomy support is included as an independent predictor of self-determined motivation, and the following hypotheses are proposed:

While TPB, as a belief-based theory, provides an account of the determinants of intention to perform a behaviour, it fails to identify the antecedents of these determinants. Individuals form beliefs based on internal interests or coercive motivations (Ajzen, 1991), which are defined as motivational quality in SDT. As a need-based theory, SDT links motivational quality to behaviour (Phipps et al., 2020). Recent studies, such as Quatrin et al. (2024) and Caso et al. (2024), demonstrate the practical relevance of integrating these two theories in contexts like financial planning, where motivations shape decision-making.

Therefore, our conceptual model integrates these two theories by delineating the relationships between different types of motivation (autonomous and controlled, as explicated by SDT) and the belief systems (notably, attitudes, as identified by TPB) that directly influence behavioural intentions.

Committing to a behaviour out of choice allows individuals to persist with the behaviour and experience satisfaction, as it aligns with their authentic self. Research has shown that autonomous motivations cause individuals to seek information about the behaviour of interest, which ultimately forms beliefs and intentions toward the behaviour (Stone et al., 2009; Selvamani et al., 2024; Holding et al., 2022). For instance, individuals with intrinsic or identified motivation are more likely to develop a positive attitude toward financial planning, as their engagement reflects personal value rather than external coercion. Research suggests that autonomous motives are more adaptive than controlled motives (e.g. rewards, punishments, or perceived obligation) in forming positive attitudes toward an action (Shannon et al., 2019). It can be argued that both autonomous and controlled motivations serve as antecedents to attitude, which is one of the components of the belief-based theory of TPB. Financial planning and personal finance can be intimidating unless individuals have autonomous motivation toward activities that affect their future financial health.

An example of intrinsic motivation in financial planning can be seen when individuals take pleasure in budgeting or saving for retirement. For instance, young professionals might enjoy tracking expenses through mobile apps and optimizing their financial health because they find the process intellectually stimulating or personally rewarding. Such individuals are more likely to exhibit positive attitudes toward financial planning because their engagement is driven by personal satisfaction and interest (Stone et al., 2009; Shannon et al., 2019). Research has shown that intrinsic motivation enhances persistence in complex behaviours like long-term saving (Holding et al., 2022).

Identified regulation occurs when individuals perceive financial planning as aligned with their personal goals, such as achieving homeownership or financial independence. For example, young adults in their late twenties might commit to saving for a house deposit because they value stability and security for their future families. Their recognition of the importance of these goals drives positive attitudes toward financial planning (Selvamani et al., 2024; Dawson, 2023). Studies suggest that identifying financial goals increases proactive engagement in behaviours like investment or retirement savings (Shostya and Banai, 2023).

External regulation manifests when individuals engage in financial planning due to external pressures, such as meeting societal expectations or avoiding penalties. For instance, employees may start participating in workplace retirement plans because of employer mandates or tax incentives. Although less adaptive than intrinsic or identified motivations, external regulation still contributes to forming attitudes, particularly in highly structured environments like corporate financial education programs (Altendorf et al., 2020; Dawson, 2023).

Conversely, amotivation in financial planning is evident when individuals perceive financial management as irrelevant or too overwhelming, leading to disengagement. For example, recent graduates burdened by student debt may feel incapable of creating a financial plan, resulting in negative attitudes toward budgeting or saving. Such individuals are less likely to engage in meaningful financial planning, highlighting the detrimental impact of amotivation (Shannon et al., 2019; Dawson, 2023).

Therefore, the hypotheses below are developed:

According to TPB, the primary driver of behaviour is an individual’s decision to perform that behaviour, referred to as “behavioural intention”. Behavioural intention, in turn, is a function of three factors: attitude, subjective norms, and perceived behavioural control (PBC). In other words, TPB explains that behavioural intention stems from a combination of volitional factors (i.e. the individual’s attitude) and non-volitional factors (i.e. social influences, resources, or opportunities) (Teng et al., 2013).

However, one of the most recent criticisms of TPB refers to the weak (or sometimes non-existent) relationship between subjective norms and intention (see Ham et al., 2015; Krueger et al., 2000). When forming intentional behaviour, subjective norms and PBC have been found to be weaker antecedents compared to attitude (Krueger et al., 2000). A meta-analysis by Armitage and Conner (2001) provided insights showing that attitudes often hold stronger predictive power than both PBC and subjective norms.

Moreover, a recent study by La Barbera and Ajzen (2020) aimed to explain the frequently observed weak relationship between subjective norms and intention in TPB studies. They argued that, theoretically, PBC moderates the effects of both attitude and subjective norms on intention. Given this, and consistent with the extensive literature on the attitude–intentional behaviour relationship (Jung et al., 2020), attitude is considered the most significant factor in forming behavioural intention.

Furthermore, within the scope of our study, which explores financial planning intentions among youth, the emphasis on attitude—rather than on PBC or subjective norms—is justified by the distinct nature of financial planning behaviour. Particularly for young individuals, financial planning is more strongly influenced by personal values, beliefs, and attitudes than by external pressures or perceived control (Lusardi and Mitchell, 2023). Therefore, our study highlights attitude as the primary component of TPB that serves as the proximal antecedent of behavioural intention and hypothesizes that:

Although TPB largely predicts human behavioural intention across many domains, it has shown limited ability to account for an individual’s desires. This limitation has led to a growing body of studies proposing SDT as a more effective predictor of behaviour (Leung and Matanda, 2013; Webb et al., 2013; Weinstein and Ryan, 2010). In our study, we explore how SDT complements TPB by addressing its limitations in explaining the underlying social influences on behaviour. While TPB effectively outlines how beliefs form the basis of behavioural intentions, it does not sufficiently explain the origins of these beliefs. In contrast, SDT offers a nuanced understanding of how internal and external motivational forces shape such beliefs. Specifically, SDT posits that the quality of motivation (autonomous vs controlled) significantly impacts behaviour, offering deeper insights into the antecedents of the belief systems central to TPB.

The majority of prior studies have used SDT to elucidate motives that drive behaviour (Osei-Frimpong, 2019; Shin et al., 2019). However, this study proposes SDT as an antecedent to TPB—the focal framework in behavioural intention research. The integration of these theories provides greater insight into the motivational and social-cognitive determinants of financial behaviour and the processes involved.

Moreover, the current study delves deeper by proposing perceived autonomy support as the antecedent to various forms of motivation. Existing literature suggests that satisfaction of the psychological needs for autonomy and competence enhances an individual’s sense of autonomous motivation (Vandercammen et al., 2014). An interpersonal relationship is perceived as autonomy-supportive when others provide a rationale for a requested behaviour, offer meaningful choices, and acknowledge one’s feelings (Kor and Mullan, 2011; Stone et al., 2009). An extensive body of research has suggested that autonomy-supportive environments promote intrinsic motivation, while controlling climates tend to undermine it (Farivar and Esmaeelinezhad, 2021; Ryan and Deci, 2020). This relationship is especially evident among young adults who often struggle to achieve a sense of autonomy. When young adults' basic psychological need for autonomy is supported, they are more likely to internalise actions and engage more actively out of choice (Niemiec and Ryan, 2009).

As discussed earlier, the influence of motivation as defined in SDT on intentional behaviour is indirect and mediated by the social-cognitive constructs of TPB (Lee et al., 2020). Hence, individuals align their beliefs with their motives to pursue a behaviour (Hagger and Chatzisarantis, 2009, 2014). Therefore, integrated theories offer a complementary explanation of motivational quality as a precursor to beliefs, which in turn lead to action.

In our model, attitudes serve as the proximal antecedent of behavioural intention—a link we examine through Hypothesis 10 (H10). Conversely, perceived autonomy support and the various components of SDT (intrinsic motivation, identified regulation, external regulation, and amotivation) are considered distal antecedents. Their influence on financial planning intentions is investigated through a series of serial mediation hypotheses (H11, H12, H13, and H14), which explain the indirect paths linking these distal antecedents to the proximal antecedent (attitude) and, subsequently, to the intention to engage in financial planning.

In the context of this study, youth are more likely to internalise the value of financial planning when an autonomy-supportive environment encourages them to plan for their future. In such cases, a high level of intrinsic motivation fosters a positive attitude toward financial planning, which in turn leads to action. The above discussion sets the stage for the development of the following serial mediation hypotheses:

Figure 1 provides a visual depiction of the proposed hypotheses, incorporating an illustration of the mediational hypotheses H11 to H14. This depiction elucidates the relationships among the variables, emphasizing the role of the mediation variables in clarifying these relationships.

A cross-sectional design, questionnaire-based survey was used to collect data. Using convenient sampling, 488 samples were collected from young adults in Malaysia. A statistical power analysis using G.Power 3.1.7 which indicated that a minimum sample size of 437 was required to achieve a two-tailed alpha of ≤0.05 and statistical power of ≥0.80. Our final sample size of 488 participants exceeds this threshold, ensuring sufficient power for the analyses conducted.

We distributed a total of 596 questionnaires in various locations, including shopping malls, food courts, gyms, and sports centres within the Klang Valley area of Malaysia. We targeted these venues because these locations are popular among young people, who were the primary focus of our study. Employing a convenience sampling method, we achieved an 82% response rate, yielding 488 completed questionnaires.

The questionnaires were administered in English, and during the distribution phase, the individuals responsible for data collection verbally confirmed with all potential respondents their proficiency in the English language. It was assured that all participants were comfortable with English and reported no difficulties in understanding or responding to the questionnaire items. The participants were Malaysian youths with a mean age of 23.65 years (Range = 18 to 35). Of these, 192 were male (39.3%) and 296 females (60.7%). Regarding educational level, 5.94% reported having completed secondary/high school. About 28.48% of the respondents had a diploma, 61.6% held a bachelor’s degree, and 3.98% had a postgraduate’s degree.

This study used the autonomy support scale from the Perceptions of Parents Scale (POPS) by Grolnick et al. (1991) to measure perceived autonomy support (e.g. “My mother/father, whenever possible, allows me to choose what to do”). The 5 items on the scale were measured using a 7-point Likert scale, ranging from 1 (“not true at all”) to 7 (“very true”).

Attitude towards personal finance was measured using the attitude dimension of the Personal Involvement Inventory by Zaichkowsky (1985), which was validated in a study by Kemp and Kopp (2010). Using a 7-point semantic differential scale, respondents indicated the degree to which they felt that personal finance is: useless/useful, beneficial/not beneficial, undesirable/desirable, wanted/unwanted, and valuable/worthless.

Respondents’ situational motivation was measured using the Situational Motivation Scale (SIMS) developed by Guay et al. (2000). It included 16 items, with 4 items per subscale (intrinsic motivation, identified regulation, external regulation, and amotivation). The statements described different reasons why a person would engage in personal financial behaviour (e.g. “Because I believe that personal finance is important for me”). Respondents indicated their level of agreement on a 7-point Likert scale ranging from 1 (strongly disagree) to 7 (strongly agree).

Intention to engage in financial planning was assessed using 2 items adapted from Kemp and Kopp (2010). Responses were recorded on a 7-point Likert-type scale, ranging from 1 (strongly disagree) to 7 (strongly agree).

To measure financial education, respondents were asked to estimate the extent to which their education covered economics and finance, using a scale from 0 (not at all) to 10 (a lot). To evaluate financial literacy, they were asked to rate their personal financial knowledge on a scale from 0 (knowing nothing) to 100 (knowing everything I could possibly know about personal finance).

The measurement model and structural model were assessed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS 2.0 software. PLS-SEM, a variance-based structural equation modelling technique, is suitable for analysing complex conditional effect models involving both observed and latent constructs (Pahlevan Sharif and Sharif Nia, 2018).

The data were tested for normality and found not to follow a normal distribution. However, this issue was mitigated by employing PLS-SEM, a non-parametric method recommended by Hair et al. (2016) for analysing data without assuming normality.

Table 1 presents the results of the measurement model assessment, with item-level details provided in  Appendix. To address common method bias, the questionnaire was developed and administered following the guidelines of Podsakoff et al. (2003). Additionally, Harman’s one-factor test was employed to assess common method bias, and the results indicated that common method variance was not a pervasive issue in this study (Chang et al., 2010).

To assess construct reliability, as well as convergent and discriminant validity, the following were computed: Cronbach’s alpha, factor loadings, composite reliability (CR), average variance extracted (AVE), maximum shared variance (MSV), and the Heterotrait-Monotrait Ratio (HTMT) (Pahlevan Sharif and Sharif Nia, 2018). Confirmatory factor analysis indicated a good fit for the proposed model. All factor loadings exceeded the 0.7 threshold. Both Cronbach’s alpha and composite reliability values for all constructs were above 0.7, indicating good internal consistency and construct reliability. The AVE for all constructs exceeded 0.5, fulfilling the criteria for convergent validity (Sharif et al., 2019). For discriminant validity, the AVE of each construct was greater than its respective MSV and Average Shared Variance (ASV), satisfying Fornell and Larcker’s (1981) criteria. HTMT values were also below the recommended threshold of 0.85, confirming discriminant validity (Henseler et al., 2015). Variance Inflation Factor (VIF) values were computed to assess multicollinearity among independent variables, with all values below the threshold of 5 (Hair et al., 2010).

To test the hypotheses, the total effects without mediators were first evaluated. Next, the mediators were included in the model, and both the direct and indirect effects were assessed. The bootstrapping technique with 2,000 replications was used to estimate indirect relationships, as it is considered more accurate and powerful than alternative methods (Pahlevan Sharif and Sharif Nia, 2018).

The results of the measurement model assessment are reported in Table 1. Cronbach’s alpha of all constructs was greater than 0.7 indicating good internal consistency among the items (ranged from 0.893 to 0.977). Composite reliability of greater than 0.7 (ranged from 0.920 to 0.983) fulfilled the requirements for good construct reliability. Average variance extracted of each construct was greater than 0.5 (ranged from 0.697 to 0.935) and also greater than its respective maximum shared variance (ranged from 0.151 to 0.598) which established convergent validity and discriminant validity of the constructs respectively. Factor loading of all items was greater than 0.7 (ranged from 0.717 to 0.971) and statistically significant at 0.001. The HTMT matrix (Table 2) provides an assessment of discriminant validity among the constructs. All HTMT values are below the commonly accepted threshold of 0.85, indicating strong discriminant validity (Henseler et al., 2015).

Table 3 reports the results of conducting Pearson correlation analysis on the latent variable score of all constructs. Perceived autonomy support, attitudes toward personal finance, and behavioural intention while were positively related to intrinsic motivation, identified regulation, and external regulation, they were negatively associated to amotivation. Significant positive correlations between perceived autonomy support, attitude, and behavioural intention were found.

The results of structural model assessment after controlling for the effects of financial literacy, gender, and financial education are reported in Table 4. The VIF values for all independent constructs were below the commonly accepted threshold of 5, ranging from 1.020 to 3.763, confirming that multicollinearity is not a concern in the model. Testing the total effect model indicated that there is a significant positive relationship between perceived autonomy support and intentional behaviour (β = 0.444, p < 0.001) that supported H1. The results of testing the mediation model indicated that perceived autonomy support was positively related to: (1) intrinsic motivation (β = 0.724, p < 0.001), (2) identified regulation (β = 0.697, p < 0.001), and (3) external regulation (β = 0.685, p < 0.001) and inversely related to amotivation (β = −0.673, p < 0.001) providing support for H2, H3, H4, and H5 respectively. There was a significant positive relationship between intrinsic motivation (β = 0.214, p < 0.01) and identified regulation (β = 0.136, p < 0.05) with attitudes toward personal finance that supported H6 and H7 respectively. However, this study could not support H8 and H9 as the results failed to find any significant relationship between external regulation (β = 0.069, p = 0.189) and amotivation (β = 0.141, p = 0.097) with attitude respectively. The results supported H10 on the positive relationship between attitudes toward personal finance and intentional behaviour (β = 0.170, p < 0.001). Further, the significant positive indirect relationship between perceived autonomy support and intentional behaviour through intrinsic motivation and attitudes toward personal finance (β = 0.026, p < 0.05) provided support for H11 on the mediating role of intrinsic motivation and attitudes toward personal finance. Also, the indirect relationship between perceived autonomy support and intentional behaviour through identified regulation and attitudes toward personal finance was quasi-significant (β = 0.016, p = 0.051) which almost supported H12. However, due to the non-significant relationships between external regulation and amotivation with attitudes toward personal finance, this study could not support H13 and H14 on the mediating role of these variables with attitudes toward personal finance in the relationship between perceived autonomy support and behavioural intention. The model had moderate explanatory strength as it explained around half of the variance of the motivational factors (intrinsic motivation = 52.4%, identified regulation = 48.6%, external regulation = 46.9%, and amotivation = 45.3%), 18.4% of the variance of attitudes toward personal finance and 35.1% of the variance of behavioural intention. Figure 2 shows the results of testing the mediation model.

Understanding the motivational mechanisms that promote personal finance activities among the younger generation is crucial for families, academicians, policymakers, and society as a whole. The current study investigated the process that drives behavioural intention to engage in financial planning among young adults. As discussed in the preceding sections, this study examined how perceived autonomy support predicts young adults’ intention to engage in financial planning. By investigating the motivational sequence from SDT to TPB, the study positions perceived autonomy support as a foundational antecedent in initiating the behavioural process.

The findings indicate that young adults who perceived a sense of autonomy from social agents (e.g. parents) were more likely to engage in financial planning (H1). This result aligns with Sicilia Camacho et al. (2020), whose study in Spain demonstrated that autonomy support from peers and parents positively influences adolescents’ intention to enact behaviours. Autonomy support refers to interpersonal interactions in which individuals perceive a sense of choice and are relatively free from social pressure (Chatzisarantis et al., 2008). The reduced presence of external pressure may explain its predictive power in relation to financial planning. When the psychological climate within a family supports the autonomy of younger members, it provides a stimulus for cultivating new behaviours.

Perceived autonomy support also predicted young adults’ motivational quality toward financial planning. The results showed that perceived autonomy support was a positive predictor of intrinsic motivation, identified regulation, and external regulation (H2, H3, and H4). The findings on the beneficial role of perceived autonomy support in promoting internalized motivation (i.e. intrinsic motivation and identified regulation) are consistent with past studies (Martinek et al., 2020; Nie et al., 2015; Parker et al., 2021). However, since external regulation is characterized by low autonomy and is initiated by external contingencies, a negative association with perceived autonomy support is more commonly reported in the literature. Nonetheless, the positive association in this study indicates that when individuals perceive greater autonomy support, they may still be motivated to perform a task for rewards or to avoid punishments.

In a collectivist culture like Malaysia (Hofstede, 2001), where conformity is the norm and punishment is likely to be imposed for deviant behaviour, extrinsic motivation may be regarded as a cultural norm. When the family environment values children’s autonomy, younger members may feel more obliged to follow cultural expectations, aligning controlled motivation with parental guidance. However, it is important to recognize that within any culture, there exists a spectrum of individualistic and collectivist values. In the Malaysian context, while there is a strong emphasis on community and family, individual actions and motivations are also shaped by personal beliefs and values. This duality suggests that, while extrinsic motivation is significant, it operates alongside intrinsic motivations, particularly in environments that support autonomy.

Research indicates that in collectivist societies, individuals often internalize societal and familial expectations, which in turn influence their motivations and behaviours (Markus and Kitayama, 1991). Moreover, in a study of Malaysian adolescents, Kagitcibasi (2005) found that the family model of “relatedness” does not negate autonomy but rather incorporates it, highlighting a complex interplay between external regulation and autonomy support. Hence, in collectivist settings like Malaysia, although conformity to social norms may arise from external motivations, an autonomy-supportive environment—such as that provided within the family—can still foster a sense of volition, even when actions align with external expectations. This nuanced perspective helps explain the positive relationship observed in H4, where perceived autonomy support enhances motivation to comply with cultural norms not solely due to external pressure, but as part of a harmonious integration of individual and collective values.

The study also showed an inverse association between perceived autonomy support and amotivation (H5). Amotivation is the most maladaptive form of motivation, defined by the absence of intention to act. It is often higher in authoritative family climates, where individuals feel life is beyond their control (Gilal et al., 2018). Our findings revealed that when the family environment supports autonomy, the perceived lack of control among family members tends to decrease. This conclusion is consistent with extensive studies (Güntert, 2015; Nie et al., 2015; Smith et al., 2016), which confirm that higher perceived autonomy is a negative predictor of amotivation.

This study investigated the motivational mechanism shaping intentional behaviour toward financial planning. The results indicated a positive relationship between autonomous motivations (intrinsic motivation, identified regulation) and attitudes toward personal finance (H6, H7). Therefore, the theoretical linkage between motivation and intention (Hagger and Chatzisarantis, 2009) in influencing financial planning behaviours is affirmed in this study. Autonomous motivation, as defined by SDT, enhances positive beliefs about personal finance. Individuals who exhibit autonomous motivation feel free to make decisions, such as those concerning personal finance, that can shape a more secure future during uncertainty. However, the findings did not show any significant relationship between extrinsic motivation (external regulation and amotivation) and attitudes toward personal finance (H8, H9). Thus, motivations driven by external contingencies or a lack of intention failed to influence individuals’ attitudes toward personal finance.

Individuals who are not convinced of the positive outcomes of financial planning are unlikely to develop a favourable attitude toward it. Extrinsic motivation, which leads individuals to engage in financial planning to avoid guilt or shame, fails to build a positive outlook. This finding supports the idea that controlled motivation—such as external regulation—leads to less favourable outcomes, and that attitudes are only weakly or negatively associated with controlled motives (Hagger and Armitage, 2004).

Despite some claims regarding the irrelevance of autonomy in Asian cultures (Nie et al., 2015), autonomy support was both directly and indirectly associated with intentional behaviour related to financial planning. The present study examined different types of motivational quality as conceptualized by SDT and tested them as mediators of the effect of an autonomy-supportive environment on attitudes toward financial planning. The integration of TPB and SDT offered valuable insights into how autonomy-supportive environments influence intentions to engage in financial planning.

The results supported H11 and H12, showing that autonomous motivations (intrinsic motivation and identified regulation) and attitudes toward financial planning serially mediate the relationship. It is worth noting that intrinsic motivation, as the most autonomous form of motivation, had a stronger mediating effect than identified regulation, which represents a lower degree of autonomy. When interpersonal relationships support autonomy—such as by offering choice and rationale in financial planning—this fosters internalization of financial behaviours and ensures that attitudes are consistent with the behaviour (Chatzisarantis et al., 2007; Soos et al., 2019). These findings align with previous studies on the benefits of autonomy support in promoting internalized motivation and attitude, which subsequently encourage intentional behaviour (Girelli et al., 2016; Williams et al., 2006).

However, extrinsic motivation (external regulation and amotivation) and attitudes toward personal finance did not mediate the relationship between perceived autonomy support and intentions to engage in financial planning (H13, H14). In other words, in autonomy-supportive families where young people’s choices are respected, controlled motivations fail to significantly influence their attitudes and intentions regarding financial planning.

The present results underscore the importance of understanding how perceived autonomy support from parents contributes to the intention to engage in financial planning. The integration of SDT and TPB enriches our understanding of the role parental support plays in shaping adolescents’ attitudes and intentions toward personal finance. This is particularly valuable for professionals seeking to promote constructive parental involvement in adolescent financial planning. The study also extends prior research by demonstrating that autonomous motivation mediates the relationship between perceived parental support and adolescents' attitudes.

The implications of this study can be discussed from two different perspectives: parental guidance, and policy development.

Parental Guidance: The findings underscore the role of parents as essential influencers on adolescents’ financial planning motivation. While this research confirms that perceived autonomy support influences situational motivation, our findings highlight that only individuals with strong self-regulation, those with high levels of intrinsic and identified motivation, develop a positive attitude toward financial planning. To support the development of adolescents' self-regulation skills, parents can take proactive steps such as fostering open discussions about financial matters (Shim et al., 2010; Moreno-Herrero et al., 2018), modelling responsible financial behaviours (Bandura, 1986; Moschis and Churchill, 1978; Gudmunson and Danes, 2011), and encouraging goal-setting and financial planning habits (Sirsch et al., 2020a, b; Xiong et al., 2021).

While perceived autonomy support generally enhances self-regulation, it is important to recognize that not all autonomy-supportive behaviours lead to positive financial outcomes. For instance, excessive financial support without reinforcing financial responsibility may inadvertently promote a sense of entitlement rather than intrinsic motivation (Kagitcibasi, 2005). Parents should not only encourage open financial discussions but also ensure that financial lessons instill accountability, goal-setting, and realistic expectations. Furthermore, autonomy support is not limited to parents, teachers and peers also play a crucial role in shaping financial attitudes (Van Campenhout, 2015). Future research should investigate how multiple sources of autonomy support, such as educational institutions and mentorship programs, interact to influence financial planning decisions.

Policy Development: While motivational foundations begin within the family unit, institutions such as Financial Education Network (FEN) and Agensi Kaunseling dan Pengurusan Kredit (AKPK) can play a complementary role by embedding autonomy-supportive principles into their programs, enhancing what is nurtured at home. The findings of this study provide actionable insights for enhancing existing financial literacy initiatives in Malaysia, such as those spearheaded by the FEN and AKPK. While FEN and AKPK primarily focus on financial literacy and debt management, they can enhance their impact by incorporating autonomy-supportive learning strategies that encourage youth to take ownership of their financial decisions rather than passively receiving information (Chatzisarantis et al., 2008; Niemiec and Ryan, 2009). Experiential learning methods, such as budgeting simulations, real-world savings challenges, and structured decision-making exercises, can help reinforce financial responsibility and goal-setting behaviours (Lusardi and Mitchell, 2014).

This study also highlights the critical role of perceived autonomy support in financial motivation. While parents are primary financial socialization agents, they may lack the knowledge or tools to effectively nurture responsible financial behaviours, particularly in collectivist cultures where financial dependency is common (Van Campenhout, 2015; Agnew and Sotardi, 2024). To mitigate this, family-based financial education policies should incorporate:

1. Parental financial literacy workshops to educate parents on autonomy-supportive financial guidance.

2. Community mentorship programs where youth engage with financial professionals.

3. Youth-focused financial planning modules in secondary and tertiary education, integrating financial autonomy into formal curricula (Shim et al., 2010).

Beyond formal education, financial interventions should address both structural barriers and motivational dimensions. Programs should incorporate goal-setting frameworks grounded in SDT, such as self-determined financial milestones, to help bridge the intention-behaviour gap described in the TPB (Sheeran, 2002; Hagger and Chatzisarantis, 2009).

Future research should examine how multiple social agents, including teachers, peers, and financial institutions, contribute to autonomy support in financial decision-making. Understanding these interactions can inform more holistic financial policies, ensuring that financial literacy initiatives not only provide knowledge but also cultivate intrinsic motivation and sustainable financial behaviours among Malaysian youth (Grolnick et al., 1991; Kagitcibasi, 2005).

Despite the contributions, the study is not without limitations:

Firstly, the use of cross-sectional data limits the ability to establish causal relationships. Future research should adopt longitudinal studies to assess the long-term effects of parental support on financial motivation and planning behaviour.

Secondly, the findings are specific to Malaysia, where cultural and economic contexts shape financial behaviours. Future studies should consider cross-cultural comparisons to examine how autonomy support and motivation influence financial planning in diverse cultural settings.

Thirdly, while TPB posits that intention predicts behaviour, prior research highlights the gap between intention and action (Sheeran, 2002). This is particularly relevant in financial planning, where external factors such as economic constraints, financial accessibility, and social influences may prevent individuals from acting on their intentions. Future research should integrate behavioural tracking methods (e.g. savings patterns, investment decisions, debt repayment records) to provide real-world insights into financial behaviours.

Last but not least, while this study focuses on parental influence, future research should investigate the role of friends, educators, and financial institutions in shaping financial autonomy. Understanding the interplay between multiple sources of financial socialization could enhance the design of financial education programs.