The Influence of Financial Education Sources on Emergency Savings: The Role of Financial Literacy

2021 ◽  
Vol 49 (4) ◽  
pp. 344-361
Author(s):  
Lu Fan ◽  
Lini Zhang
Keyword(s):  
Financial Literacy ◽  
Financial Education ◽  
Emergency Savings

The Role of Financial Education in the Path Towards Sustainable Development

2021 ◽  
pp. 1-19
Author(s):  
Raquel González Castro ◽  
Joaquín Enríquez-Diaz ◽  
Begoña Alvarez García
Keyword(s):  
High School Students ◽  
Financial Literacy ◽  
Financial Education ◽  
Practical Experience ◽  
School Students ◽  
Financial Decisions ◽  
Level Of Satisfaction ◽  
Level Of Knowledge ◽  
High Level

Financial decisions are present in everyone's daily life. However, citizens do not always have sufficient knowledge to understand the consequences of their decisions and the risks taken. The lack of financial literacy can contribute, along with other factors, to making wrong financial decisions. This is why financial education becomes a key element to achieve a more sustainable and egalitarian future. This research presents a practical experience intended to foster financial education among high school students. The experience consisted in providing training workshops about financial topics, specifically adapted to the students' needs. The students' level of financial knowledge was evaluated and also their level of satisfaction with the experience. Results showed a high level of satisfaction and a significant improvement in their level of knowledge. The research also helped to identify the students' socio-demographic characteristics that explain the differences in their level of financial culture and their capacity for improvement.

scholarly journals Household’s Overindebtedness during the COVID-19 Crisis: The Role of Debt and Financial Literacy

Risks ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 62
Author(s):  
Łukasz Kurowski
Keyword(s):  
Financial Literacy ◽  
Multinomial Logistic Regression ◽  
Financial Education ◽  
Management Skills ◽  
Budget Management ◽  
Mortgage Loans ◽  
Consumer Loans ◽  
Personal Finances ◽  
The Face

The COVID-19 pandemic has shown how important it is to prepare one’s own financial budget for the unexpected loss of income. In this dimension, the financial education of the society plays an invaluable role. It allows us to account for events that may adversely affect personal finances in our budget management decisions. Therefore, the aim of the article is to check whether households with a higher level of financial and debt literacy have better management skills from the perspective of a household’s budget, which in the face of a crisis reduces the risk of individuals not paying their liabilities. Thus, at the turn of June and July 2020, we conducted surveys among 1300 Polish citizens. Using the multinomial logistic regression, we show that people with a higher financial and debt literacy are less affected by overindebtedness. During the crisis, people who have a higher debt literacy are better prepared to manage credit liabilities; in this situation, financial literacy is less important. In addition, the type of credit experience turned out to be significant. Respondents who have experience with consumer loans (potentially high-margin products) are more likely to have debt repayment problems than those with mortgage loans experiences.

The Role of Financial Inclusion

2020 ◽  
pp. 248-279
Author(s):  
Ulkem Basdas
Keyword(s):  
Decision Making ◽  
Financial Literacy ◽  
Financial Education ◽  
Financial Inclusion ◽  
Decision Making Process ◽  
Standard Definition ◽  
Financial Decision Making ◽  
Financial Decision ◽  
Different Levels

This chapter highlights the importance of financial education, its link with financial decision-making process, comparative status of different countries, and efforts to improve current situation. Unfortunately, there is no standard definition for neither financial education nor measures to quantify it. Therefore, this chapter first aims to provide a comprehensive definition in order to explain how financial knowledge affects the decision-making process. Then, financial literacy measures from previous studies over different countries would be discussed to show financial illiteracy problem is global. Lastly, solutions and recommendations would be discussed at three different levels: younger people, individuals, and national strategies.

scholarly journals Economic Function and Financial Literacy of Modern Family

2019 ◽  
Vol 5 (2) ◽  
pp. 57
Author(s):  
Jovan Pejkovski ◽  
Artur Ribaj
Keyword(s):  
Financial Literacy ◽  
Family Income ◽  
Family Members ◽  
Financial Education ◽  
Social Changes ◽  
Economic Role ◽  
The Family ◽  
Modern Family ◽  
Economic Function

The economic function of the family is expressed in the provision of material subsistence for its members, in the provision and consumption of subsistence. The paper looks at the post-modern urban family's placement in terms of means of production and its consumption role.How are the functions of the modern family related to providing and meeting the needs of members? Is there a model for economic insurance of family income that builds its stability and sustainability? How to realize the family's desire to raise their standard of living? What are the forms of economic cooperation within the family? These and other issues related to fulfilling the economic role of the family is the subject of an analysis in the paper on the basis of several elements and issues that are constantly relevant.The paper particularly recognizes the importance of financial literacy for family members. How to develop and on what grounds to base people's financial cognition? What is the knowledge to create and manage a family budget as a detailed overview of finances? The formation of economic and financial education is perceived as the basis for improving personal and family finances. At what level and by what methods can the financial knowledge of family members be improved? Financial literacy limits the opportunities for growth, development, and satisfaction of the needs of the family and its members.The paper analyzes the role of the educational institutions in raising the economic and financial literacy of the members of the modern family that is of interest to any society. The economic function of the family is also considered in the context of constant social changes and external influences that limit the possibilities of family members. Only educated and skilled individuals can manage social processes and influence standard-raising.

Australian women with good financial knowledge fare better in divorce

2021 ◽  
pp. 031289622110220
Author(s):  
Tracey West ◽  
Elizabeth Mitchell
Keyword(s):  
Financial Literacy ◽  
Positive Impact ◽  
Financial Education ◽  
Jel Classification ◽  
Financial Knowledge ◽  
Financial Decisions ◽  
Financial Decision Making ◽  
Financial Decision

Divorce dissolves couple households, who likely specialised in household financial decision-making tasks, into singles who need to learn new skills. Financial decisions will be particularly challenging for those newly separated people that are lacking knowledge and confidence. Given the substantive literature supporting the lack of financial knowledge of women in comparison to men, women are likely to be more disadvantaged by this aspect of divorce. We employ the HILDA Survey and find support for the role of financial literacy in improving wealth outcomes in divorce, particularly for women. We find that the positive impact is significant over the long term. This research contributes to knowledge of the role of financial education in building resilience to endure financial shocks. JEL classification: D14; G53; G50; J12; J16

Learning by doing: the role of financial experience in financial literacy

2013 ◽  
Vol 34 (1) ◽  
pp. 123-154 ◽  
Author(s):  
Bart Frijns ◽  
Aaron Gilbert ◽  
Alireza Tourani-Rad
Keyword(s):  
Financial Literacy ◽  
Student Loans ◽  
Causal Effect ◽  
Business Students ◽  
Financial Education ◽  
Learning By Doing ◽  
Domestic Students ◽  
The Impact ◽  
Instrumental Variables Approach

AbstractIn this paper, we examine the impact of financial experience on financial literacy. Exploiting a unique feature of New Zealand, whereby domestic students can obtain interest-free student loans and can fully participate in the national retirement scheme while international students cannot, we employ an instrumental variables approach to identify the causal effect of financial experience on financial literacy. We conduct surveys on a sample of 338 business students and find that there is a positive and causal effect of financial experience on financial literacy. Our results have important implications for financial education programmes and may explain why many of these programmes to date have had limited success.

The Role of Financial Inclusion

2021 ◽  
pp. 374-398
Author(s):  
Ulkem Basdas
Keyword(s):  
Decision Making ◽  
Financial Literacy ◽  
Financial Education ◽  
Financial Inclusion ◽  
Decision Making Process ◽  
Standard Definition ◽  
Financial Decision Making ◽  
Financial Decision ◽  
Different Levels

This chapter highlights the importance of financial education, its link with financial decision-making process, comparative status of different countries, and efforts to improve current situation. Unfortunately, there is no standard definition for neither financial education nor measures to quantify it. Therefore, this chapter first aims to provide a comprehensive definition in order to explain how financial knowledge affects the decision-making process. Then, financial literacy measures from previous studies over different countries would be discussed to show financial illiteracy problem is global. Lastly, solutions and recommendations would be discussed at three different levels: younger people, individuals, and national strategies.

scholarly journals Financial literacy among Finnish adolescents in PISA 2018: the role of financial learning and dispositional factors

2021 ◽  
Vol 9 (1) ◽  
Author(s):  
Gintautas Silinskas ◽  
Arto K. Ahonen ◽  
Terhi-Anna Wilska
Keyword(s):  
Learning Strategies ◽  
Financial Literacy ◽  
Source Credibility ◽  
Financial Education ◽  
Literacy Skills ◽  
Effective Strategies ◽  
Dispositional Characteristics ◽  
Dispositional Factors ◽  
Literacy Scores

AbstractThe aim or the present study was to examine the relative importance of financial education in school and families and dispositional factors (competitiveness, work mastery, meta-cognition) in predicting financial literacy among Finnish adolescents. The data on the 4328 Finnish 15-year-olds was drawn from the PISA 2018 assessment. Financial literacy was measured by tests, and financial education and dispositional factors were assessed by adolescent questionnaires. First, the results showed that financial education in school was positively associated with adolescents’ financial literacy skills, whereas parental involvement in financial matters did not relate or related negatively to financial literacy scores. Second, dispositional factors, such as competitiveness, work mastery, and meta-cognition (effective strategies to understand/remember information, to summarize information, and to evaluate source credibility) were the strongest positive predictors of the financial literacy scores. Overall, the present study emphasizes that certain social factors (schools and families) and especially dispositional characteristics (personality/motivation and critical thinking/learning strategies) may shape the development of the financial skills of adolescents.

Financial Literacy Types and Financial Behaviors Among Adolescents: Role of Financial Education

2020 ◽  
pp. JFCP-19-00051
Author(s):  
Alex Yue Feng Zhu
Keyword(s):  
Financial Literacy ◽  
Financial Education ◽  
The Other ◽  
Financial Behavior ◽  
Financial Behaviors ◽  
Subjective Knowledge ◽  
Financial Autonomy ◽  
Adolescents And Adults ◽  
Literacy Scores

The mismatch between financial objective and subjective knowledge that occurs in youth and adolescents has been understudied in the literature. Based on objective and subjective financial literacy scores, this study categorizes financial literacy into four types: financial literacy overconfidence, underconfidence, competence, and naïvete in a sample of adolescents. Data were collected from 330 students aged around 15 years old in six middle schools in Hong Kong. The results indicate that adolescents who are overconfident about their financial literacy are more likely to engage in risky financial behavior and report higher levels of financial autonomy. A randomized experimental trial was conducted to assess whether financial education could change the mismatch between financial objective and subjective knowledge. The results show a significant increase in underconfidence after the financial education intervention, but no significant change in the other three categories. The findings highlight the same type of financial literacy overconfidence in both adolescents and adults and has implications for financial counselors and educators who would improve the financial engagement of adolescents.

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