Top Research Papers on Financial Literacy

This article examines the financial education needed to achieve responsible finance. Responsibility here is considered in the broadest sense, i.e. towards company stakeholders, but also towards society and future generations. Given that finance is not only a social science and that it also includes a moral dimension, we first argue for a minimum financial education for all citizens, a condition for inclusive finance. We then outline some major changes that are intended to structure responsible financial education. The conclusions drawn concern academics and researchers working in financeas wel...

The study attempts to report the influence of demographics on financial literacy and to assess the impact of the latter on different personal finance decisions. Using cross-sectional research design, a survey through interview-schedule comprising of 50 questions have used to collect data from randomly chosen 120 sample respondents of Dharmanagar, a town of North Eastern Indian state of Tripura. The data have tested for its reliability and validity by a pilot study before the final execution. Different parametric tests have applied to test the null hypotheses. The empirical results have documen...

. In an era marked by heightened environmental awareness and concerns about the long-term health of our planet, sustainable finance has gained significant traction as a means to align financial activities with environmental, social, and governance (ESG) principles. At the heart of this transformation lies the pivotal role of financial literacy, empowering individuals and institutions to make responsible, ethical, and sustainable financial decisions. Drawing on a comprehensive review of existing literature and empirical evidence, we dissect the various ways in which financial literacy influence...

Financial literacy is usually interpreted as a set of knowledge which is necessary to have for being able to make proper and correct decisions concerning personal investments, debts and other ones related to personal finance. Such type of education has become an important part of every educational system, since its importance has increased within previous years. As a consequence of this, financial literacy needs to be measured and regularly tested. The goal of the study is to measure if there is a difference between objective level of financial literacy and between subjective self-assessment. ...

Financial Literacy is "the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being." This guide will help you find authoritative resources to build financial literacy knowledge and skills. Financial literacy resources for consumers, educators and resarch

The results of this study indicate that partially the use of digital finance has a insignificant effect on financial behaviour, but financial literacy and lifestyle has a positive significant effect on financial behaviour.

This study aims to determine the effect of financial literacy and financial behavior on financial distress students of the Faculty of Economics, State Islamic University of Malang. The type of research used is quantitative research. The research location appointed by the researcher is at the State Islamic University (UIN) Maulana Malik Ibrahim Malang. The number of samples in this study were 130 respondents. The sample in this study was Generation Z who were born in 1996 – 2004 or who are 18-26 years old and actively hold the status of students of the Faculty of Economics, State Islamic Univer...

The ability of consumers to make informed financial decisions improves their ability to develop sound personal finance. This paper uses a panel data set from Russia, an economy in which household debt has grown at an astounding rate, to examine the importance of financial literacy and its effects on behavior. The paper studies both the financial and real consequences of financial illiteracy. Even though consumer borrowing increased very rapidly in Russia, only 41% of respondents demonstrate an understanding of interest compounding and only 46% can answer a simple question about inflation. Fina...

Digitalization and the emerging fintech industry offer a large variety of new products and ways to save, and the process of matching savers with investors will become more direct and the share of wealth invested through other channels than the traditional bank lending channel will increase further.

Abstract There is concern about lack of financial literacy and need for financial literacy education, but little or no attempt to understand their nature. Three questions were asked: 'What is financial literacy?', 'What is financial literacy education?' and 'What might be the components of an effective financial literacy curriculum?'. Adopting an inductive grounded theory approach and a pragmatist philosophy, in association with real-world organisations such as the National Institute of Adult Continuing Education (NIACE), the Financial Services Authority (FSA), and the National Research and De...

Purpose The purpose of this paper is to examine the relationship between financial literacy, access to finance and growth among small- and medium-sized enterprises (SMEs) within the Midlands region of the UK. It assesses whether financial literacy assists SMEs to overcome information asymmetry, mitigates the need for collateral, optimizes capital structure and improves access to finance. Design/methodology/approach To gain a deeper insight into the complex relationship between financial literacy, access to finance and growth, a qualitative research is carried out among SMEs that have operat...

Financial Literacy (Personal Finance) is taught in the Finance Department. However, every college student needs to take care of their own life.

Financial literacy played an important role for everyone in managing personal finances. This research aimed to determine how the level of financial literacy in students S1 Faculty of Economics and Business, Universitas Pasundan and investigate what factors are influencing it. The observed respondents were students from the Faculty of Economics and business, Universitas Pasundan. The research data was collected through questionnaires, descriptive analysis, and test multinomial logit. Based on the results of the research showed that the level of financial literacy from undergraduate students Uni...

Does the digital transformation of financial services make the financial system more inclusive? Utilizing the China Household Finance Survey (CHFS) data, this study explores the impact of financial literacy and the degree of Internet dependency on household financial asset allocation. The study finds that Internet finance mainly attracts investors with a lower financial sophistication, a stark contrast to my finding concerning participation in the traditional financial market. This result suggests that Internet finance can fill the funding gaps where investors traditionally face high participa...

The aim of this PhD dissertation is to examine both the supply and demand sideof financial inclusion. This research presents a comprehensive set of evidence regarding financial access at macro and micro levels. This thesis blends three essays where the third chapter provides insights on the crucial linkages between new technologies, financial inclusion and poverty. Findings have shown poverty and inequality reducing effects of financial inclusion based on cross country data. Moreover, it shows beneficial effects of new technologies in expansion of financial inclusion and poverty reduction. Fou...

Financial Literacy (Personal Finance) is taught in the Finance Department. However, every college student needs to take care of their own life.

This guide provides a general overview of financial literacy, including reading materials, videos and personal finance workshops at Ryerson University.

Portuguese Abstract: A literacia financeira e preponderante e decisiva para a tomada de decisoes assertivas e informadas. A carencia de conhecimentos financeiros podera ter implicacoes significativas no futuro do consumidor. O sobreendividamento e as burlas financeiras sao o resultado da falta de educacao financeira. De acordo com o Banco de Portugal (2015) os Portugueses continuam aapresentar lacunas de conhecimento relacionado com numeracia e produtos financeiros. A maioria das pessoas adquire os seus conhecimentos financeiros ao acaso, por tentativa e erro. Varios estudos divulgam que a g...

Teachers, administrators, parents, business owners, and community members need to know the importance and value of a Personal Finance class. In this study, a two page survey was given to teachers, administrators, parents, business owners, and community members to determine the importance they placed on financial literacy curriculum and what content they think should be included in a financial literacy curriculum at Bozeman High School. The results of this survey showed that most participants of the survey thought financial literacy was important and that financial literacy curriculum was also ...

Objective - This study aims to assess students' financial literacy levels using digital financial literacy (DFL), the most recent element. Methodology – Students who are based in Selangor, Malaysia, were chosen for this study as they recorded a high rate of youth bankruptcy. Convenience sampling was used to distribute the questionnaires among the students between March and August of 2021, where a total of 184 responses were retrieved. Findings and Novelty – The results indicated that students possessed advanced financial knowledge and confidence. Despite the extensive experience in completin...

Financial instability and a lack of financial literacy are commonly blamed for the growth in bankruptcy and social concerns among the younger generation. Between 2017 and October 2021, 36,173 Malaysians aged 18 to 44 were declared bankrupt, according to the latest numbers from the Malaysian Department of Insolvency. Furthermore, Selangor had the highest number of instances (25 per cent) (MdI, 2021). This problem offers a substantial obstacle to achieving the Sustainable Development Goals (SDGs), which aim to reduce inequality and promote social and economic inclusion for all citizens. Addition...

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This study was designed to assess knowledge and awareness of students of Polish economic universities in terms of forms of enterprise financing. Particular attention was focused on innovative forms of capital raising as crowdfunding due to its dynamic development in the world, but also crowdfunding seems to correspond to the needs of Generation Y as future entrepreneurs. The research hypothesis is that Polish Generation Y has only a theoretical knowledge of the sources of funding enterprises. Polish students, although they are proficient in new technologies, they do not know innovative capital...

According to the Worldbank, the rate of financial exclusion due to religious reasons, which is 7% in the world, is 9.7% in the group of D-8 countries. Islamic banks or participation banks in Turkey appear to be the most important interface for increasing the tendency of individuals with religious sensitivity for financial inclusion by rendering services like deposit banks in accordance with religious principles for such persons. It's very important that we know the Islamic financial literacy level of individuals with religious sensitivity for the purpose of increasing their financial inclusion...

This study aims to determine the effect of financial socialization and financial technology literacy on financial behavior moderated by financial education in students of the Faculty of Teacher Training and Education UNS. This study used a quantitative research type with a population of Faculty of Teacher Training and Education UNS students. The sample was determined as many as 160 samples were taken using a non-sampling technique. The data collection technique uses a five-point Likert scale of 1-5 points distributed via Google Forms. Test the validity of the instrument using Confirmatory Fact...

Financial literacy is a combination of financial knowledge, attitudes and behaviors, key for making informed decisions and for solving financial problems. This descriptive study explored the applied, conceptual and procedural financial knowledge of 243 Mexican students via three financial knowledge tests. In addition, these students were surveyed about their financial behavior, their attitudes towards money, and their experience with money using a self-report questionnaire. The study aims to identify financial-education needs and gaps between school levels and systems. Therefore, the analysis ...

. The presented work describes the urgency and necessity of the formation of financial literacy among the population of Ukraine. The importance of financial literacy formation among the youth of the country is substantiated, especially it is necessary for higher education seekers, which are potential carriers and future transmitters of knowledge and skills to the next generation. The essence and significance of financial literacy of a person are analyzed, and its main characteristics and features are described. The analysis of statistical information on the main components of the Financial Lit...

In the textbook for universities on the course "Financial literacy", the issues of formation and development of financial literacy of the population are disclosed, the main characteristics of finance are considered and practical recommendations on financial planning of personal and family budgets, tips on avoiding financial fraud are given. Much attention is paid to the methods of investing money, the basics of creating your own business. At the end of each chapter, tasks, tests and a glossary are offered to consolidate the theoretical material. Meets the requirements of the federal state edu...

In the United States student loan debt has reached one trillion dollars. The increase in student loan debt correlates with an increase in the number of student loans in default. This study was conducted to determine the financial literacy of college students enrolled in a pre-professional setting. The information obtained was analyzed to uncover trends in student loan debt and default rates regarding student loans and repayment. A convenience sample of Touro College’s School of Health Sciences students were given a survey containing questions relating to demographics, and current habits such a...

The present paper explores various approaches to the development of cognitive process dimensions in financial literacy. Applying the regression model, the study has examined the strength of the relationship between the actual financial competence of 413 Brazilian’s students aged 18-21, studying economic disciplines, and their school performance. The research has produced the following conclusions: (a) a weak dependence of actual skills on school performance; (b) inherently associated consequence of school performance is not corresponding to the actual financial skills; (c) a low level of finan...

The CFA Society Pittsburgh launched a high school financial literacy campaign resulting in sig- nificant improvements in financial behavior, subjective and objective financial knowledge, and self- esteem. Before the campaign, male students and students with higher grade point averages (GPAs) show better objective knowledge. In addition, we find disconnect between actual and perceived fi- nancial knowledge. Students exhibited gains in all aspects after completing the program. The subca- tegories with the lowest pre-survey scores or female students show the greatest improvements in the post-surv...

The study investigates the critical factors affecting financial behavior in Micro, Small, and Medium Enterprises (MSMEs). It analyzes the role of financial literacy, attitudes, and financial technology (Fintech) on financial management behavior among 1.1 million DKI Jakarta MSME stakeholders in 2020 through random sampling. The study reveals that heightened financial literacy positively influences financial management behavior. A solid foundation in financial knowledge, encompassing personal and corporate finance, leads to improved financial practices. This validates theories about cognitive b...

Among the range of policy options available to improve personal financial decision making are personal finance financial education interventions. Notwithstanding calls to expand delivery of such courses at university level, there is relatively limited evidence of their effectiveness. We provide such evidence through assessment of objective and subjective financial literacy measures, financial behaviours and financial attitudes for a sample of students completing a course relative to a control group of their peers. We isolate a positive role for course delivery and estimate a better outcome for...

The study employed the Probit regression on the National Bureau of Statistics general households survey data to appraise the effect of financial literacy on financial inclusion in Niger State. The estimation result shows that financial literacy positively and statistically influences financial inclusion options (account ownership, bank access, and credit access) in Niger state. Similarly, education status, age, and gender are determinants of financial inclusion. The study concluded that financial literacy is necessary for achieving financial inclusion. To encourage financial inclusion among yo...

Understanding the basics of managing money is vital for the well being of people and empowering them financially India’s flagship financial inclusion programme, Pradhan Mantri Jan Dhan Yojana (PMJDY), has been able make universal access to a bank account a near reality, but the level of usage of accounts remains quite low. India has now 180 billion accounts. But 48 per cent of the bank accounts have seen no transactions in the last one year, according to the World Bank’s Global Findex database. We must remember that the right measure of financial inclusion is not access, but regular usage.For ...

The ability of consumers to make informed financial decisions improves their chances of having sound personal finance. This paper uses a panel dataset from Russia, where consumer loans grew at an astounding rate -- from about US$10 billion in 2003 to over US$170 billion in 2008 -- to examine the importance of financial literacy and its relationship with behavior. The survey asked questions on financial literacy, consumer borrowing (formal and informal), and spending behavior. The paper studies the consequences of greater financial literacy on the use of financial products and financial plannin...

This article explores how financial literacy, comprised of both actual financial knowledge and perceived financial confidence, affect financial decisions. Using national survey data from the United States, results indicate that financial confidence is a critical component of financial literacy and is important across all knowledge levels. However, overconfident individuals, or those with high confidence (or self-assessed) knowledge but low actual knowledge, have a higher propensity to engage in risky (costly) financial behaviors. Together, results suggest that financial literacy initiatives sh...

Financial Inclusion is a lofty ideal but Financial Literacy is the first step towards achieving Financial Inclusion. Financial Literacy can be seen as the demand side of Financial Inclusion. It is considered an important adjunct for promoting financial inclusion, financial development and ultimately financial stability. It has assumed greater importance in recent years especially from 2002 as financial markets have become increasingly complex and the common man finds it very difficult to make informed decisions.Financial Inclusion comes with potential dangers. Recent experiences in the microfi...

Extracted from text ... Financial literacy or financial expert? By Jayne Mammatt | Ernest & Young In terms of the second King Report (King II), the majority of the audit committee should be financially literate, but the Sarbanes-Oxley Act in the US introduced the requirement for an audit committee to have a financial expert. But what did King mean by financial literacy, how does this differ from the US requirements, and what are the latest developments in the area in terms of our proposed new Companies Act? King II simply called for someone with a basic financial background and/or experience a...

The study “Financial Literacy of Women in Kottayam District, Kerala is conducted with the objectives such as to identify the factors affecting Financial Literacy of women, to measure the practical knowledge of women in financial matters and to analyze whether financial literacy enable women in taking independent financial decisions in their family matters. In order to make deep analysis on the financial literacy of women from different sectors of the society such as from the rural and urban area, samples are taken from rural women especially from SC/ST and urban women specially ladies from min...

Using purpose-built original 2018 Japanese survey data, we estimate the financial behaviors and attitudes of households. We find that financial literacy plays an important and consistent role in financial decision-making. However, the actual behaviors are counter-intuitive: People with high financial literacy tend to take too many risks, overborrow, and hold naive financial attitudes; that is, financial literacy makes people daring and reckless in some financial aspects. By contrast, financially literate people are good at retirement planning and are indifferent to gambling. Preferences such a...

Financial management is key in the performance of MSMEs where if business owners cannot manage their finances, it is certain that their business performance will not run well. In order for MSME businesses to run well, it is very necessary for business actors to understand financial literacy, financial technology and financial inclusion that can improve the performance of MSMEs. Finance to get welfare for MSME actors. This study aims to determine the effect of financial literacy, fintech and financial inclusion on the performance of MSMEs in Yogyakarta City. The research method uses quantitativ...

The findings suggest that external forces such as demonetisation infact affect digital financial literacy and government and fintech companies need to take take measured steps to induce the people into using digital facilities and explain the added advantage of ensuring user friendly technology and provision of rewards.

There have many been studies on women’s economic empowerment (WEE), most related to financial literacy (FL). However, in this digital era marked by the emergence of Fintech, FL needs to be expanded into digital financial literacy (DFL), in making good financial decisions, especially regarding Fintech products. Hence, the study aims to investigate the influence of DFL and FL on WEE. In this study, 259 female respondents participated. Using the PLS Structural Equation Modelling, the study found that both DFL and FL had a positive and significant effect on WEE. However, further analysis found tha...

Prvni cast meho přispěvku se zaměři na popis zakladnich pojmů a shrnuti teoretických poznatků o nich, kdy se studenti pravě zapsali do kurzu a výzkumna otazka je.

The objective of this study is to examine potential effects of overconfidence on financial advice usage. We define financial literacy overconfidence as the gap between consumers‘ subjective and objective financial knowledge. Using data from the 2012 National Financial Capability Study, we find that roughly ten percent of respondents display financial literacy overconfidence: they score themselves higher than the sample average on perceived financial knowledge but are unable to answer three or more financial literacy questions correctly. These overconfident consumers are less likely to seek the types of fina...

This study analysed the impact of the sector (being Jewish or Arab) and the region on financial literacy in Israel. First, the goal was to map the factors affecting financial literacy in Israel. Using data from the “Financial Literacy Survey in Israel”, some of the variables that affect financial literacy in Israel were identified; Gender, occupation, education, number of household dependents, age, sector and region. After mapping the factors affecting financial literacy in Israel, it was found that the effect on financial literacy of each of the variables region and sector, was not significan...

Objective: This study aims to determine the effect of financial literacy and fintech literacy on capital market participation. It also examines the effects of individual characteristics (i.e., gender, age, student's allowances and income, parent's education, and parent's income) on financial and fintech literacy. Design/Methods/Approach: This study obtained 349 data from email and field surveys using purposive sampling. Data analysis was performed using OLS and path analysis. Findings: Results show that the level of student financial literacy is sufficiently literate, with a moderate level of ...

Financial development puts forward higher financial literacy requirements. Many countries have realized the importance of financial literacy, conducted research practices and the popularity of the theory of financial education. Through the interpretation of financial development on financial education requirements, combined with the experience to carry out foreign financial literacy education, put forward suggestions for universal financial literacy education.

Financial literacy encourages individuals and society to improve their financial well-being. Hence, increase their capabilities to take part in economic life. This paper aims to investigate the impact of financial literacy on finance and economy. An extensive review of financial literacy literature is carried out, with a specific attention on its correlation with financial and economic aspects. This study unveils that financial literacy gives impacts on personal financial decisions, behaviour, saving and retirement, investment, financial risk tolerance, business, and national economy. This pap...