What matters most to M’sian families when managing their money?

Malaysian families often face difficult decisions when managing their finances, as they must balance essential expenses with unexpected costs and the desire to save. A study conducted by Rakuten Insight and Supermom surveyed 306 Malaysian and 309 Singaporean parents, alongside an analysis of over 2,100 finance-related conversations in private parenting communities.

The research revealed that as living costs remain high, families are more inclined to cut back on discretionary purchases like entertainment and dining out, while prioritizing necessities such as groceries and bills. Financial security is now seen as a higher priority than spending on extras, leading to a cautious approach where households try to manage their budgets more closely.

Emergency savings emerged as another key priority, with respondents focusing on protecting themselves against unexpected financial setbacks rather than chasing investment returns. For families with children, building an emergency fund provides reassurance during unforeseen bills or income disruptions. This practical approach reflects a preference for reliable, accessible savings over wealth-generating opportunities.

Digital banking is increasingly popular among Malaysian consumers, with around 60% of respondents holding digital-only accounts. However, concerns about scams, account security, and data protection remain significant barriers, and straightforward information about fees is more appealing to most respondents than promotional rewards.

The study also found that personal recommendations from family and friends are the most trusted source of information about financial products, with online influencers playing a lesser role, especially in Malaysia (43% consider endorsements crucial, compared to 34% in Singapore). Overall, the findings highlight a household money management strategy driven by caution, practical priorities, and a search for dependable information to maintain financial security.