Top Research Papers on Financial Literacy

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...

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 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...

Financial planning for retirement is essential to ensure that people have enough money to live the lifestyle they desire when they retire. Self-employed business owners in developed countries widely do financial retirement planning. However, in Malaysia, the percentage of self-employed individuals concerned about financial retirement planning is lower than in other countries. This study aims to identify the relationship between the financial attitude, financial literacy and health literacy of self-employed individuals toward sustainable financial retirement planning in Malaysia and find out th...

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...

Purpose This study aims to develop a valid and reliable Islamic financial literacy (IFL) scale that can capture all the segments of the Islamic financial sectors and which could be considered applicable for all jurisdictions across the globe. Design/methodology/approach To build the measure, this study followed a scale development process by collecting 698 a priori items from 81 respondents. Later, it generated an item pool through the analysis of the items with experts and gave the last form (40 items) to 287 respondents in Turkey with another IFL scale that is frequently used in the liter...

: This article provides a concise narrative overview of the rapidly growing empirical literature on financial literacy and financial education. We first discuss stylized facts on the demographic correlates of financial literacy. We next cover the evidence on the effects of financial literacy on financial behaviors and outcomes. Finally, we review the evidence on the causal effects of financial education programs focusing on randomized controlled trial evaluations. The article concludes with perspectives on future research priorities for both financial literacy and financial education.

This study presents literature showing the relevance of FL and DL to financial behavior (FB) and financial decisions in the digital economy era and the determinants and determinants of the three are basically the same according to context, interpretation and practice.

Abstract In this paper, we are motivated by the growing complexity of financial service products amidst an unending wave of Ponzi schemes as well as the low levels of financial literacy reported by prior studies. Particularly, while the extant literature has focused on various determinants of financial literacy, limited insights exist on the implications of financial literacy on financial behaviour. Consequently, we focus our empirical test on identifying the link between financial literacy and financial behaviour. We formulated our hypotheses from the family resource management theory which p...

The role of financial literacy in the use of digital financial products for financial inclusion is investigated and financial literacy has become a significant policy tool for improving people's financial well-being because it is relatively simple to implement.

The research objective was to analyze the effect of financial literacy and digital literacy on financial inclusion, financial decisions, and financial resilience of MSME's. The design of this research is explanatory quantitative research. The research is a cross-sectional study in which all research variables are measured and observed at one point in time. The sampling technique used is area purposive sampling. The reachable population in this study was 98,567 MSMEs in the Province of Bali, and the research sample was 385. The research instrument used was a questionnaire with a Likert scale. T...

The goal is to guide educators and others on how foundational knowledge on digital technologies in relation to financial literacy education can prepare adult learners for the use of fintech.

In this editorial, we provided an overview of the papers in the inaugural issue of the Journal of Financial Literacy and Wellbeing. They cover topics that are at the center of academic research, from the effects of financial education in school and the workplace to the importance of financial literacy for the macro-economy. They also cover financial inclusion and how financial literacy can promote the use of basic financial instruments, such as bank accounts. Moreover, they cover financial decision making in the context of complex instruments, such as mortgages, reverse mortgages, and crypto a...

Abstract Recent research documents that people are increasingly entering old age with more debt than ever before and with little or no retirement planning. This paper examines some reasons why older people’s financial behaviors depart from the predictions of the life-cycle model, where the latter predicts that older persons would be at the peak of their wealth accumulation process and manage their money so as not to run out of savings in retirement. Drawing on the rapidly growing literature on financial literacy and financial behavior at older ages, we highlight findings on financial literacy ...

The findings underscore a positive and statistically significant impact of financial literacy, digital literacy, and financial self-efficacy on the adoption of FinTech services in Bangladesh.

There is no substantial evidence that exists in the literature to establish the link between financial advice and financial capability fully establishes, even though ‘getting help’ is identified as an important aspect of financial capability. This study sets out to fulfil a couple of objectives. Its primary goal is to investigate the effects that a combination of financial literacy elements (financial attitude, financial knowledge, and financial behaviour), financial advice as well as financial satisfaction have on individuals’ financial capability, and secondly, to test and prescribe the impr...

The aim of the research is to explore the financial knowledge, attitudes, confidence, behaviour and motivations of teachers (N=752) teaching different subjects. The survey is particularly important because their knowledge, attitudes, and behaviours affect the financial awareness of the students they teach. The results indicate a higher level of financial literacy than assumed, revealing that teachers have a higher level of financial literacy than students in higher education. 86% of those surveyed have savings in addition to bank deposits, such as government bonds and other, more complex forms...

PurposeThe recent financial crises and the economic problems caused by the pandemic highlight the importance of financial literacy (FL). Libraries have an essential role in developing informational literacy and promoting access to information. In this study the authors seek to identify, based on the published literature, in which areas and in what roles libraries engage in the development of FL, and what options are available for those who intend to set out in this direction in the near future.Design/methodology/approachThe basis of the research is a review of the literature, as comprehensive ...

Household financial behavior is a crucial topic to study because it determines the family's economic well-being. This study examines the effect of financial literacy, financial attitudes, financial experience, and income on household financial behavior. The object of this research is the family finance manager in Sidoarjo City, East Java. The data collection technique is using an online survey. Sample selection was done by using the purposive sampling technique. The sample of this research is 153 financial managers. The data analysis technique used the Partial Least Square Structural Equation ...

This study aims to investigate the influence of financial literacy and Sharia financial literacy on financial attitude and behavior. The population in the study were students of Khairun University and IAIN Ternate. A total of 188 respondents were involved and purposively selected as the samples. The study used validity and reliability tests as part of the instrument test. For hypothesis testing, a simple regression analysis was used. The results showed that all hypotheses were supported. The final part of the study discusses findings, conclusions, and suggestions for future research.

The goal of this research is to determine how financial literacy and financial attitude influence financial management behavior in Culinary MSMEs in Rawamangun, East Jakarta City. The type of research used is explanatory research. The sampling method is probability with area sampling. Samples were collected from 50 Culinary MSMEs actors in East Jakarta's Rawamangun Urban Village. The primary data used are questionnaire responses on a five-point Likert scale. Multiple Regression Analysis was used to analyze the data, aided by SPSS version 25.0. Based on the testing results, the two hypotheses s...

This work summarizes the arguments and counterarguments in the framework of the scientific debate on the issue of financial literacy. The main purpose of the research is to identify the key factors and behavioral patterns inherent in managing personal finances. Systematization of literary sources and approaches to solving the problem of insufficient level of financial literacy among different segments of the population indicates that it is necessary to promote financial education of the population, especially vulnerable segments. This concerns the issues of financial inclusion, improvement of ...

Low levels of financial literacy continue to persist around the world with women, the poor, lowly educated groups and the youth possessing the least levels of financial literacy. Research has shown that both financial education and financial experience can help boost levels of financial literacy. Despite this, there remains no conceptual framework that shows how financial education and financial experience can be used to boost levels of financial literacy. The purpose of this study is to propose a conceptual framework that links financial literacy, financial education, and financial experience...

This research aims to determine the influence of financial literacy on students' financial management behavior. This research is quantitative research, with samples taken using purposive sampling techniques. The population of this study were PGRI Indraprasta University students and the sample in this study was 30 students. The data collection method uses a questionnaire to measure each variable. Data were analyzed using descriptive statistics and inferential statistics. The results of descriptive analysis show an average financial literacy of 37.10 and student financial management behavior of ...

The textbook is developed in accordance with the working program of the discipline "Fundamentals of financial literacy". At the present level, the questions devoted to the basics of financial literacy are revealed. The given theoretical material, test and practical tasks contribute to the study of the educational material during independent work, which ensures effective assimilation and practical application of the acquired knowledge. Meets the requirements of the federal state educational standards of secondary vocational education of the latest generation. For full-time and distance learni...

Abstract Willingness to participate in financial markets is important for financial well-being, including the accumulation of retirement savings through self-directed pension programs. We consider the roles of two key factors, trust and financial literacy in financial market participation. We find both are strongly related to participation. Although trust is more uniformly correlated with increases in financial market participation, the relationship between financial literacy and engagement is u-shaped, with increases in financial literacy first associated with reductions and subsequently with...

This study aims to examine the effect of financial literacy, attitudes, and lifestyle on financial behavior in Management students of the Faculty of Economics, class of employees at the University of Semarang, class of 2019/2020. The population in this study were active students majoring in employee class management in the odd semester class of 2019/2020. The sample in this study was purposive sampling method. Purposive sampling is a data sampling technique based on certain considerations. The sample in this study collected 123 respondents. This research uses quantitative data type and the dat...

The main aim of this study is to examine the nature of the term financial literacy and link it to opportunities for financial inclusion. The author uses experience of some Hungarian programmes. Financial literacy is the focus of some of them, while in other cases it is just a part of a more complex initiative. After the literature review, the study offers answers for the following research questions: • What are the main characteristics of existing financial literacy programmes in Hungary? • How financial exclusion and the lack of financial literacy are connected in practice? • What are the str...

Financial literacy is one of the key abilities and skills MSME business actors require to manage their finances and achieve successful business performance. This study's purpose was to analyze the impact of financial and technological literacy on improving MSME performance in Medan City and the mediation of this relationship by financial inclusion. The research had a quantitative descriptive methodology with an explanatory research approach. Data were collected from a sample of 100 business actors in Medan City. The data analysis technique used was Structural Equation Modelling - Partial Least...

Abstract The paper examines the impact of underestimation in financial literacy on financial market participation in the largest emerging market, China. Using 3496 China Family Panel Studies (CFPS) 2014 nationally representative data, we find that underestimation in financial literacy negatively influences respondents’ financial market participation, while overestimation has no significant effect on it. The result is robust when alternative measures of underestimation or CFPS 2016 data are used. Moreover, we also find that the impact of underestimation is heterogeneous. It has a greater impact...

Financial inclusion is increasingly seen as a key enabler of various development objectives. While not explicitly one of the UN Sustainable Development Goals (SDGs), financial inclusion is recognized as an important enabler for them. The Philippine central bank—the Bangko Sentral ng Pilipinas (BSP)—has even identified financial inclusion as a “national development agenda” that requires a conscious effort by various sectors to accelerate and enable its societal benefits. This paper studies the relationship between financial literacy and financial inclusion in the Philippines using data gathered...

The knowledge and skills required for personal finance management are becoming more important due to a number of trends. At the same time, research of student’s financial literacy either completely lacks or shows that financial knowledge and skills are insufficient. The present first-of-its-kind study in Bulgaria addresses this discrepancy. The purpose of the article is to present the results from an empirical study on the financial literacy of students at Bulgarian universities. From a methodological perspective the article is based on a quantitative empirical research. The research has found...

This research aims to determine the influence of Financial Literacy on the performance of MSMEs in Bengkulu City, the influence of Financial Inclusion on the performance of MSMEs in Bengkulu City, the influence of Financial Technology on the performance of MSMEs in Bengkulu City and the influence of Financial Literacy, Financial Inclusion and Financial Technology on the performance of MSMEs. This research includes associative research. The population in this research is all MSMEs in Bengkulu City, totaling 9 sub-districts. This research uses instrument testing, this research is taken from with...

Teachers, as compared to the majority of the employed sectors in the country, are receiving salaries above the minimum wage set by law. This above the minimum salary, supposedly, places the average teacher above the poverty line as this is paramount to the demand of the job. But as can be observed around, many teachers experience financial struggles. With an end-view of improving financial literacy, this study was conducted to determine the level of financial literacy of the faculty of Isabela State University City of Ilagan Campus. A survey questionnaire was used to obtain the data needed to ...

Students who are financially dependent on parents and financial-independent students are affected by Covid-19. Preventing financial problems can be carried out by good financial literacy. Based on precedent studies, financial literacy in Telkom University students was good; however, in reality, a protest emerged regarding tuition fees, generating a gap between the theory and reality. This study aimed to test a financial literacy argument of Telkom University students and the reality during pandemic. The study employed a quantitative method, verificative description, and purposive non-probabili...

This study explores the impact of financial technology (Fintech) on the sustainable performance of Micro and Small Enterprises (MSEs) within a university ecosystem, focusing on the mediating roles of financial literacy and financial inclusion. A purposive sampling technique yielded 250 MSE owners in Tangerang. Data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). Findings indicate that Fintech enhances MSE performance, with financial literacy significantly amplifying this effect. Non-linear relationships reveal initial declines before positive growth, underscor...

The article highlights the essence and relationship of two categories that are most important for the country’s economy in modern realities: financial literacy of the population and financial security. All countries of the world are trying to maximize the financial literacy of the population; this problem is especially acute in developing countries, the situation in which is sometimes terrifying. The work determines the level of financial literacy of citizens of the Russian Federation, identifies the problems that exist in this area, and suggests ways and methods to solve them. Only by increas...

This paper examines the role of financial stress in explaining the relationship between financial literacy and financial well-being among individuals in the United States. The 2018 FINRA National Financial Capability Study dataset is used for the empirical analyses of this study. The results found that financial literacy was positively associated with financial well-being. The study also found that the association between financial literacy and financial well-being was mediated by perceived financial stress experienced by individuals. Additionally, the results from the moderated mediation mode...

PurposeThis study examines the gender gap in financial literacy in Ghana.Design/methodology/approachThis study employs primary data and probit models together with the Oaxaca-Blinder decomposition strategy.FindingsThe authors found that males are generally more financially literate than females are. The results also show that much of the gender gap in financial literacy is explained by differences in coefficients or how literacy is produced and not by differences in the demographic and socio-economic characteristics of men and women. Thus, the gap may be attributable to unobserved behavioural ...

Few retirees use reverse mortgages. In this paper, we investigate how financial literacy and prior knowledge of the product influence take-up by conducting a stated-preference experiment. We exogenously manipulate characteristics of reverse mortgages to tease out how consumers value them and investigate differences by financial literacy and prior knowledge of reverse mortgages. We find that those with higher financial knowledge are more likely to know about reverse mortgages, not more likely to purchase them at any cost but are more sensitive to the interest rate and the insurance value of the...

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...

The years-long academic discussion on financial literacy confirms that it promotes sound financial behaviors and increases financial inclusion. In this research work, I check if the latter still holds true during times of financial crises. I take the case of Lebanon, a country going through multiscale crises. By running two sets of surveys and using previous research data to answer my three research questions by using different statistical techniques, I find that regardless of people’s claims, only males acquire financial knowledge from the crises. I also find that people’s behaviors change th...

Article Info The purpose of this research is to examine how MSMEs' financial success is affected by the presence or absence of financial inclusion and financial literacy. Purposive sampling was used to choose 100 SMEs from the Bekasi Regency for this study. Multiple linear regression was used to evaluate the data gathered from the surveys. The study's findings demonstrate that MSMEs can benefit from both financial inclusion and financial literacy. For micro, small, and medium-sized enterprises (MSMEs), financial inclusion means having greater access to financing and other financial services in...

In this paper, we examine financial literacy and financial resilience in Italy. We show that financial literacy is particularly low among the young, women, and the less educated. We also highlight regional differences in financial knowledge, with individuals in Southern Italy performing worse. We find that the lack of financial literacy increases the probability of being unable to face financial shocks and leads to an overaccumulation of debt. Hence, our results support the hypothesis that financial literacy can be considered an enabling factor for financial resilience.

Financial literacy is an important thing that is needed by everyone. This literacy is very necessary when an individual is about to make his personal financial decisions. Where an understanding of financial literacy will help in considering and making financial decisions, according to the conditions of each individual. Limited financial literacy will result in inaccurate financial decision making and lack of financial planning for the future. Limited financial literacy in a person will also lead to undirected spending and can make wrong financial decisions. Which will have an impact on his per...

Financial behavior is a means by which a person treats, manages, and uses available financial resources. This research aims to determine the effect of financial literacy and the use of financial technology on financial satisfaction through financial behavior as an intervening factor. Data were collected from 112 economics teachers using purposive proportional random sampling technique. Structural Equation Modeling (SEM) with AMOS 26 software was used to analyze the data. The results of this research indicate that financial literacy has no effect on financial behavior, but the use of financial ...

The literature suggests that financial literacy depends on factors such as socioeconomic status/sociodemographic status, psychosocial and psychological factors, experience, and access to financial education, language skills, mathematical literacy and other factors. The aim of this study was to identify the factors that influence the financial literacy achievements of students from Latvia, focusing on the possibility to improve these achievements. The data analysis was performed with PISA 2018 Latvian data, which there were selected 25% of the participating students whose financial literacy per...

Abstract Using an international sample of IPO firms and two country-level measures of financial literacy, we find strong evidence that financial literacy is negatively associated with IPO underpricing. In cross-sectional analyses, we find that the effect of financial literacy in reducing IPO underpricing is more pronounced when the information environment is less transparent. Employing path analysis, we document that information friction, firm transparency, and stock market participation are mechanisms that mediate this relationship. Our study contributes to and extends the literature by provi...

Objective: This study examines the effect of financial literacy and interest on financial risk tolerance. This research is to find out investors' knowledge in investment and also to find out whether investors keep up with news about investment so that it affects the purchase of financial products.   Theoretical framework: Every decision that investors make involves financial risk. The amount of tolerance that develops is a critical factor influencing investment decisions and the usage of funds in the capital market. Financial literacy plays a role in demonstrating investor behavior while makin...

Financial literacy seems to be more important and focused than ever. Several recent studies have found that Portugal is at bottom of the table compared to the Eurozone countries regarding financial literacy. As it’s a key factor in the development of a country, it appears to be crucial to understand what people know about financial matters when they complete compulsory schooling. With a sample of 296 Portuguese students who enrolled in the polytechnic higher education system for the first time, we studied if they understand simple concepts related to financial issues (such as loans), as well a...