scholarly journals Financial Literacy of Rural Population as a Determinant of Saving Behavior in Kazakhstan

2017 ◽  
Vol 38 (333) ◽  
pp. 32-42
Author(s):  
Sholpan Gaisina ◽  
Lyazzat Kaidarova
Keyword(s):  
Rural Areas ◽  
Financial Literacy ◽  
Rural Population ◽  
Formal Education ◽  
Financial Education ◽  
Rural People ◽  
Economic Determinants ◽  
Financial Decisions ◽  
Financial Products ◽  
Saving Rates

Abstract In rural Kazakhstan, the credit and insurance services are limited and the state support is weak. Therefore, households’ saving is crucial to provide an insurance against the economic and social shocks. The main goal of this study is to contribute to the literature on financial literacy in emerging economies, namely, the effect of financial literacy on saving rates of rural population. Being well educated not always means to be financial literate and make efficient decisions regarding one’s own finance. People with a lower formal education level but with better experience in consuming financial products could be better prepared for making financial decisions including those related to savings. In this paper other socio-economic determinants of saving rates were taken into account, such as an income level, family size and an employment status. This research was carried out in Pavlodar region of Kazakhstan, and the data collection took place in spring 2014. In total, 405 households were surveyed. Results of the analysis show that if a respondent gives at least one correct answer, it positively affects the saving rates as well as one can observe that the higher the financial literacy level, the higher are the saving rates. Availability of state supported financial education programs for rural people will significantly contribute to the financial literacy improvement. At the same time, providing various and appropriate financial products in rural areas will motivate rural people to search for new knowledge and require authorities to intensify activities in this field.

scholarly journals Rural-Urban Financial Literacy Divide in India: A Comparative Study of Kerala and Uttar Pradesh

2021 ◽  
pp. 14-24
Author(s):  
N. P. Abdul Azeez ◽  
M. Nasira Banu
Keyword(s):  
Rural Areas ◽  
Financial Literacy ◽  
Financial Services ◽  
Formal Education ◽  
Uttar Pradesh ◽  
Sampling Technique ◽  
Primary Data ◽  
Rural People ◽  
Multi Stage ◽  
Financial Decision

One of the significant competencies required in the contemporary scenario is an awareness or knowledge of varied financial affairs and the skill to handle matters apropos of finance. The dearth of financial literacy precludes rural people from the country's formal financial system and created a rural-urban financial divide, especially in the digitalized era. Effective incorporation of financial literacy in formal education will lead to greater access to financial services. This paper tries to find the rural-urban financial literacy divide based on the primary data collected from two states of India, namely Kerala and Uttar Pradesh. A total of 400 samples respondents were taken by using the multi-stage sampling technique. A comprehensive approach for measuring financial literacy is developed by constructing the Financial Literacy Index (FLI), which comprises financial knowledge, financial behaviour, and financial attitude. The results concluded with the rural-urban financial literacy divide findings as the financial literacy in rural areas is consistently lower than in urban. The results expose the need for a persistent and prolonged intervention from all the stakeholders, including policymakers, to enhance and sustain financial literacy to accomplish a bright financial decision making by the rural people.

scholarly journals Financial literacy and the use of financial services in Serbia

2021 ◽  
pp. 105-114
Author(s):  
Slađana Barjaktarović-Rakočević ◽  
Nela Rakić ◽  
Marina Ignjatović ◽  
Milica Stevanović
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Financial Education ◽  
Middle Income ◽  
Financial Decisions ◽  
Financial Decision Making ◽  
Financial Products ◽  
Decision Making Processes ◽  
Financial Decision ◽  
The Government

Financial services industry has always drawn a lot of attention, from possible investors, those who need financing, the government and general public. Globally, financial opportunities are becoming more attractive, but also more complex. The goal of this study is to analyze the use of financial services in Serbia. We argue that financial education and literacy are preconditions for the use of financial opportunities. Research has shown that people in Serbia are not well informed about how to make sound financial decisions. The reasons why people in Serbia do not use financial products requires to a greater extent and services special attention. In order to test the differences between people in terms of how well informed they are and which services they use and why, we conducted a survey. Our results show that people with salaries higher than 100,000 RSD are well informed but not motivated to invest. Individuals with middle income do not have enough trust and think that they are not well informed about different opportunities. Additionally, we found that men are better informed than women. This paper aims to provide an overview of the use of financial services in Serbia in order to improve financial decision-making processes and understand the different financial opportunities.

scholarly journals LITERASI KEUANGAN SERTA PENGGUNAAN PRODUK DAN JASA LEMBAGA KEUANGAN

1970 ◽  
Vol 14 (2) ◽  
Author(s):  
Sri Lestari
Keyword(s):  
Financial Institutions ◽  
Financial Literacy ◽  
Financial Services ◽  
Formal Education ◽  
Deep Understanding ◽  
Financial Education ◽  
Business Faculty ◽  
Financial Products ◽  
Utility Index ◽  
Qualitative Descriptive

This study entitled: "Financial Literacy and Utility Products and Services Financial Institutions". The purpose of this research are: 1) Knowing and analyzing the financial literacy index of financial products and services to the students of the faculty of Economics and Business jenderal Soedirman University 2) Knowing and analyzing the utility index products and financial services to the students of Economics and Business Faculty; ; 3) Knowing and analyzing the causes and the high barriers to low index Financial Literacy and utility products and financial services among the students of the Faculty of Economics and Business Faculty; 4) Determine and analyze whether the effort made by Fiancial Service Autority, Financial Institutions and the Program to improve the financial literacy of students; 5) Provide input to the Financial Services Authority and the Program in preparing the financial literacy materials needed to improve students understanding of financial products and services. This research is a qualitative descriptive method analysis using informants population and students of the Faculty of Economics and Business UNSOED, the Financial Services Authority officials, managers of Studies, and Financial Institutions Officer. The results showed that financial literacy index of financial institutions that exist in Indonesia at the FEB students Unsoed still low at only $ 4.76 for students who are well literate and amounted to 95.24% in banking products and services. Causes and high barriers to low index of Literacy Financial and utility products and financial services among the students of the Faculty of Economics and Business UNSOED is: do not get the financial education of the family as a child (80%), not taught in formal education as a child (77%), not to get the material and a deep understanding of the subjects were obtained during the study (70%), and the limited funds received from parents and therefore can not be used to invest in products and services of financial institutions (93%). Therefore, the financial services authority need to be more intensive in propagating financial literacy program for students with conduct socialization activities continuously. While the Program need to improve financial learning with learning innovation, identifying subjects that are relevant to the Financial Literacy material, determine appropriate teaching methods and reviewing the curriculum back.

scholarly journals Confirmatory factor modeling on consumer buying behavior of rural credits in rural karnataka: theory of planned behavior as a reference

2018 ◽  
Vol 8 (3) ◽  
pp. 253-279
Author(s):  
Sanjeev S Ingalgi
Keyword(s):  
Theory Of Planned Behavior ◽  
Planned Behavior ◽  
Financial Institutions ◽  
Rural Areas ◽  
Financial Literacy ◽  
Formal Education ◽  
Measurement Model ◽  
Financial Products ◽  
Confirmatory Factor ◽  
Factor Modeling

Many financial institutions including government institutions are grappling up to meet financial/banking demands. One of the hurdles could be lack of understanding consumer’s financial requirements by financial institutions. On the consumer side, many do not have sufficient financial literacy or formal education and lack experience in handling financial products. The result of this gap is leading to slower adaptation of financial products even though higher demand for financial products is a reality. The purpose of the research to explore various items of measurement pertaining to theory of planned behavior. Data was collected from target rural areas for this purpose. EFA was carried to on 27 indicator variables obtained from literature review. Three items were dropped, and six factors were extracted through EFA. Further reliability was established for six factors during EFA. In the next stage, confirmatory factor analysis (CFA) was carried out to establish measurement model fit. Path analysis between item variables and factors was carried out to check for critical ratios. During CFA, reliability test was carried out again using cronbach’s alpha and maximum reliability (H). Followed by convergent and discriminate validity check. The researcher has found that banks need to focus on small borrowers as some of them have good capacity to repay loan with interest. It was observed that regional rural banks have excessive documentation work and also It was observed that rural borrowers still rely heavily on informal loan distributors. The researcher felt that problem of recovery can be resolved through adopting systematic loan applications screening .The researcher suggested based on observation that banks should not be required to furnish any security except personal security

Financial Literacy among Rural Women in Darbhanga District:An Empirical Evidence.

2018 ◽  
Vol 5 (1) ◽  
Author(s):  
Prof. F.B. SINGH ◽  
POOJA JHA
Keyword(s):  
Empirical Evidence ◽  
Rural Women ◽  
Financial Literacy ◽  
Rural Population ◽  
Current Status ◽  
Financial Decisions ◽  
The World ◽  
Current Scenario

Financial Literacy is defined as the possession of knowledge and understanding of elementary financial concepts which results in developing the ability to make conversant, poised and effective financial decisions. In current scenario, the concern to increase the level of financial literacy among common masses has been witnessed by many countries of the world through various Financial Literacy center, programme and initiatives but all these programmes and policies are crafted and implemented taking into consideration the male as ultimate receiver and so women who constitute half of the rural population are lagging behind in terms of a making informed financial decisions and financial wellbeing. Hence Strategies should be formulated taking into consideration the women as the main spectators. This paper is an attempt to analyze the current status of the financial literacy among the rural women of the Darbhanga district.

scholarly journals Micro Finance in Manipur

2017 ◽  
Vol 4 (1) ◽  
pp. 8-17
Author(s):  
Robita S
Keyword(s):  
Quality Of Life ◽  
Rural Development ◽  
Financial Institutions ◽  
Rural Areas ◽  
Rural Population ◽  
Total Population ◽  
Development Planning ◽  
Rural People ◽  
Self Reliance

Manipur lives in villages. The rural population contributes to about 76.12% of the total population. Enhancement in the quality of life of the economically weaker section of the society has been one of the basic objectives of development planning of the State. Rural development, by empowering the rural masses through economic self-reliance, is one of the priority areas of the Central and State Govts. To bring about development in rural areas, the govts. and banks/financial institutions have formulated various programmes and schemes. Micro Finance is one such scheme adopted for the development of rural people.

Financial Inclusion through Financial Literacy

2022 ◽  
Vol 13 (1) ◽  
pp. 0-0
Keyword(s):  
Financial Literacy ◽  
Uttar Pradesh ◽  
Secondary Data ◽  
Financial Education ◽  
Well Being ◽  
Financial Inclusion ◽  
Financial Decisions ◽  
College Curriculum ◽  
Financial Exclusion ◽  
The Government

Financial literacy is a means to tackle the problem of financial exclusion. It is a combination of awareness, skills, knowledge, attitude and behaviors necessary to make sound financial decisions and achieve financial well being. Objective of this study is to analyze current policy, practices and evidences on financial literacy. The study has been carried out on the basis of review of literature and secondary data collected from a range of sources. It is found that the government of India, RBI and other regulatory bodies are running financial literacy campaigns through diverse mediums. Financial literacy centers (FLCs) are contributing for enhancement of financial literacy. However, they need to be strengthened by enhancing resources. Inclusion of financial education in school and college curriculum has also been recommended. Scope of the study is limited to Ghaziabad district of Uttar Pradesh in India. The study might be valuable for policymakers in enhancing financial inclusion.

scholarly journals The Assessment of Financial Literacy: New Evidence from Europe

2019 ◽  
Vol 7 (3) ◽  
pp. 54 ◽  
Author(s):  
Nicolini ◽  
Haupt
Keyword(s):  
Financial Literacy ◽  
Selection Process ◽  
Financial Education ◽  
Assessment Tools ◽  
Financial Behaviors ◽  
Financial Decisions ◽  
The Uk ◽  
New Evidence ◽  
The Relationship ◽  
Literacy Research

The hypothesis that people with more financial literacy make better financial decisions and show positive financial behaviors is crucial for more than one stakeholder. A weak connection between financial literacy and financial behaviors jeopardizes the opportunity to invest in financial education and to develop a consumer protection framework based on the chance to develop aware and responsible financial consumers. This study uses data from different countries (Germany, France, Italy, Sweden, the UK), using surveys devised and fielded specifically to measure financial literacy and in order to assess if the availability of a broad set of items on financial literacy allows to develop new measures of financial literacy to better understand the relationship between financial literacy and financial behaviors. The well-established Lusardi–Mitchell questions are compared with measures that differ in terms of number of items (the “50-items” index), range of topics (the “5-specific” index), or selection process of the items (the “unbiased” index). Results support the hypothesis that the Lusardi–Mitchell questions remain a good measure in a first-step analysis, but a deeper understanding of the connection between financial literacy and financial behaviors benefits from the measures proposed in the study, that should be considered as additional assessment tools in financial literacy research.

The Argument for Teaching Financial Literacy at Higher-Education Institutions

2016 ◽  
Vol 43 (3) ◽  
pp. 349-365 ◽  
Author(s):  
SHERI GEDDES ◽  
TODD STEEN
Keyword(s):  
Higher Education ◽  
Postsecondary Education ◽  
Financial Literacy ◽  
Higher Education Institutions ◽  
Financial Education ◽  
Well Being ◽  
Academic Programs ◽  
Human Flourishing ◽  
Substantial Impact ◽  
Financial Decisions

ABSTRACT Evidence suggests that financial decisions have a substantial impact on human flourishing. This paper examines the arguments for higher-education institutions to take a role in the provision of financial education for their students, families and alumni, who often incur substantial debt and make other sacrifices to obtain a postsecondary education. It also analyzes the current state of financial education at 322 higher-education institutions. While many postsecondary institutions have embraced some aspects of financial education, other higher-education institutions appear reluctant to infuse this multidisciplinary topic into their academic programs. Colleges and universities should consider developing robust programs that boost financial literacy and improve lifelong economic well-being.

scholarly journals RELATIONSHIP BETWEEN FINANCIAL LITERACY AND INDEBTEDNESS: A CASE OF UNIVERSITY OF NAIROBI STUDENTS

2021 ◽  
Vol 8 (65) ◽  
pp. 14993-15007
Author(s):  
Morris Irungu Kariuki
Keyword(s):  
Financial Literacy ◽  
Financial Planning ◽  
Financial Education ◽  
Money Management ◽  
Study Objective ◽  
Financial Decisions ◽  
Descriptive Research ◽  
Study Population ◽  
Level Of Significance ◽  
The University

The study objective was to determine the relationship between financial literacy and indebtedness a case of University of Nairobi Students. The study used a descriptive research design. The study was based at the University of Nairobi, Mombasa Campus. The study population was 2101. The sample size was 336 students. A questionnaire was used to collect the data. SPSS was used to analyze the data. The study attained 83% response rate. Money management, financial planning and financial planning were found to correlate strongly and positively with indebtedness and also significant at 5% level of significance. Therefore, they were found to be major contributors to student indebtedness. The study therefore found that money management, financial planning and financial decisions, affect indebtedness of the students at University of Nairobi. The study concluded that financial literacy affected indebtedness of the students at University of Nairobi. The study recommended that the University of Nairobi should roll out financial education, training, advice and counseling programs targeted at its students.

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