Financial literacy is one of the sustainable development goals of huge concern of governments. Governments explore solutions addressing policies to improve financial literacy. Nevertheless, financial management has such a broad scope and is not just limited to knowledge. As human nature, individuals are born with different confidence levels that include various financial abilities. This study aims to investigate the household-financial efficacy through the application of psychometric instruments, risk preference, and demographic characteristics toward consumption decision behavior. The research is based on a survey 479 households in the peninsular Malaysia, and utilizes the structural equation model, cluster proportional and systematic random sampling, and two measurements – composite reliability and average variance extracted. Results show that households’ financial efficacy is one of the critical factors that explain the households’ consumption decision behavior. Also, risk preference, gender and area location (rural or urban) of the household determined the consumption decision behavior of the household. The effectiveness of consumption decision is not only determined by financial literacy, but also financial efficacy. The implications of this paper may help to design policies in narrowing the broad gap between the rural and urban level of financial efficacy. The government needs to take appropriate actions to fix it.

Abstract
1. Introduction
2. Literature Review
3. Methodology
    3.1. Research - Conceptual Framework
    3.2. Structural Equation Model Specification
    3.3. Operationalization Variables
    3.4. Sampling and Data Collection Technique
4. Results and Discussion
    4.1. Descriptive Statistics Analysis of Households
    4.2. Reliability and Validity of Test Analysis
    4.3. Linkages of Financial Efficacy, Demographics,Risk Preference and Consumption Behavior
5. Conclusion
References

• Suhal KUSAIRI(Department of Economics, Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu) Corresponding Author
• Nur Azura SANUSI(Department of Economics, Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu)
• Suriyani MUHAMAD(Department of Economics, Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu)
• Madihah SHUKRI(Department of Psychology and Counselling, Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu)
• Nadia ZAMRI(Department of Economics, Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu)