The Impact of Financial Literacy Workshops on the Financial Decisions of Consumers in Rural Areas of Armenia

2017 ◽  
Author(s):  
Arthur Pokrikyan
Keyword(s):  
Rural Areas ◽  
Financial Literacy ◽  
Financial Decisions ◽  
The Impact

scholarly journals Keeping It Simple: Financial Literacy and Rules of Thumb

2014 ◽  
Vol 6 (2) ◽  
pp. 1-31 ◽  
Author(s):  
Alejandro Drexler ◽  
Greg Fischer ◽  
Antoinette Schoar
Keyword(s):  
Dominican Republic ◽  
Financial Literacy ◽  
Training Programs ◽  
Reporting Quality ◽  
Financial Decisions ◽  
Rule Of Thumb ◽  
Randomized Evaluation ◽  
Rules Of Thumb ◽  
The Impact ◽  
Financial Practices

Micro-entrepreneurs often lack the financial literacy required to make important financial decisions. We conducted a randomized evaluation with a bank in the Dominican Republic to compare the impact of two distinct programs: standard accounting training versus a simplified, rule-of-thumb training that taught basic financial heuristics. The rule-of-thumb training significantly improved firms' financial practices, objective reporting quality, and revenues. For micro-entrepreneurs with lower skills or poor initial financial practices, the impact of the rule-of-thumb training was significantly larger than that of the standard accounting training, suggesting that simplifying training programs might improve their effectiveness for less sophisticated individuals. (JEL D4, G21, J24, L25, L26, M41, O16)

scholarly journals Performance implications of financial capital availability on the financial literacy – performance nexus in South Africa

2016 ◽  
Vol 13 (2) ◽  
pp. 354-362 ◽  
Author(s):  
Neneh Brownhilder Ngek
Keyword(s):  
South Africa ◽  
Financial Literacy ◽  
Small And Medium Enterprises ◽  
Literacy Skills ◽  
Financial Capital ◽  
Financial Decisions ◽  
Literacy Performance ◽  
Entrepreneurial Activities ◽  
Medium Enterprises ◽  
The Impact

The need for making optimal financial decisions is very important in small and medium enterprises (SMEs) especially as most SMEs are always financially constrained. Consequently, there has been an increasing interest from researchers to determine how well financial literacy skills can enable entrepreneurs to make decisions that result in optimal financial outcomes and possible enhance the performance and growth of their businesses. This study had as objectives to find out the impact of financial literacy on firm performance, as well as to examine the moderating effect of financial capital availability on the financial literacy – performance relationship, amongst SME in the Free State province of South Africa. The results showed that on average SME have low levels of financial literacy and financial capital availability. It was also observed that financial literacy positively influenced SME performance, and that the relationship is positively moderated by financial capital availability. It is, therefore, necessary for SME owners to develop financial literacy skills as an essential part of entrepreneurial activities. Likewise, since businesses rely on financial capital to invest, develop and grow, policy makers should put in place measures on how to bridge the access to finance gap, and, thus, ensure that entrepreneurs are relieved from financing constraints

Patterns of people's financial and consumer behavior due to the COVID-19 pandemic as a trigger of the macroeconomic destabilization

2021 ◽  
Vol 27 (2) ◽  
pp. 417-429
Author(s):  
Denis Yu. RAZUMOVSKII
Keyword(s):  
Consumer Behavior ◽  
Financial Literacy ◽  
Task Force ◽  
Behavioral Pattern ◽  
Behavior Modeling ◽  
Stress Factors ◽  
Financial Behavior ◽  
State University ◽  
Financial Decisions ◽  
The Impact

Subject. The article discusses the financial behavior of households, and financial decisions. Objectives. I model patterns of households' financial behavior, referring the impact of stress factors on financial decisions. Methods. The financial behavior was analyzed through approaches proposed by D. Kahneman, A. Tversky and R. Thaler. However, instead of experiments, I rely upon surveys evaluating the financial literacy and behavior of people in the Sverdlovsk Oblast via social networks and conduct my research as a member of the task force of the Regions Center for Financial Literacy at the Ural State University of Economics. I took part in the preparation of questionnaires. Results. I proposed model patterns of financial behavior and substantiate what determines the behavioral pattern of people in distress. I also conclude that the impact of the COVID-19 on the financial and consumer behavior of people triggers destabilizing effects for the macroeconomic situation. Conclusions. Financial behavior modeling will help forecast financial and consumer shocks when the macroeconomic situation is destabilized, thus transforming the social policy.

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 A Conceptual Study on The Impact of Parental Influence in Improving Financial Literacy of University Students

2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Gianina Putri ◽  
Raden Aswin Rahadi ◽  
Adhya Rare Tiara
Keyword(s):  
Financial Literacy ◽  
Parental Influence ◽  
Parental Socialization ◽  
Financial Socialization ◽  
Financial Decisions ◽  
Financial Communication ◽  
Parental Financial Socialization ◽  
Conceptual Study ◽  
Financial Monitoring ◽  
The Impact

Financial independence usually begins when someone starts attending university because at that time parents usually give authority to their children to manage their own finances. Financial literacy is one of the competences which people really need in current times to make various financial decisions. Parents become very critical agents in the development of children's financial literacy level and it is proven that there is a relationship between financial literacy and parental financial socialization. According to this study the factors that influence the success of parental socialization in increasing children's financial literacy are parents' experience, role modeling, financial communication, money allowance, and financial monitoring.  

scholarly journals A DETERMINANTS OF FINANCIAL BEHAVIOR ON ACCOUNTING STUDENT

2020 ◽  
Vol 5 (37) ◽  
pp. 44-55
Author(s):  
Wirawan ED Radianto ◽  
Tommy C. Effrata ◽  
Liliana Dewi
Keyword(s):  
Locus Of Control ◽  
Financial Literacy ◽  
Self Efficacy ◽  
Positive Impact ◽  
Mental Accounting ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Financial Decisions ◽  
The Impact ◽  
Accounting Student

This study examines the impact of financial literacy, financial knowledge, locus of control, financial attitude, financial self-efficacy, and mental accounting on financial behavior. The study sample is an accounting student. There are 159 questionnaires that can be processed in total out of 250 distributed to the accounting selected at random. Hypothesis testing was conducted using multiple regression analysis. The result of the study shows that locus of control, financial attitude, financial self-efficacy, and mental accounting has a positive impact on financial behavior. However, this study found that financial literacy and financial knowledge do not affect financial behavior. This study also found that mental accounting has the most influence on financial behavior. This research contributes that mental accounting enables students to manage finances and make financial decisions.

scholarly journals Agent Banking And Poverty Reduction In Benue State, Nigeria

2020 ◽  
Vol 7 (5) ◽  
pp. 213-229
Author(s):  
David Terfa Akighir ◽  
T. Jacob Tyagher ◽  
Aaron Ateata
Keyword(s):  
Local Government ◽  
Rural Areas ◽  
Financial Literacy ◽  
Rural Population ◽  
Poverty Reduction ◽  
The State ◽  
Financial Inclusion ◽  
Economic Activities ◽  
Logit Regression Model ◽  
The Impact

The study investigated the impact of agent banking on poverty reduction in Benue State, Nigeria. The study is hinged on the agency theory, risk management theory, the regulatory dialectic theory and the basic needs theory. Focusing on the agent banking activities of the First bank PLC, the study used the Taro Yammene’s formula to select 199 agents for investigation. Questionnaire was used for data collection but only 185 copies of the questionnaire were retrieved for analysis. The study employed descriptive tools such as tables and percentages and paired t-test as well as Foster, Greer and Thornbecke (FGT) index. Also, a logit regression model was employed to ascertain whether or not agent bank has the probability of reducing poverty in Benue State. The study found that engaging in agent banking has the probability of reducing poverty in Benue State which is typically an agrarian state with high poverty incidence among highly unbanked population. Agent banking in this unbanked State where only 11 local government areas out of 23 local government areas have the presence of banks has the potential of increasing financial inclusion and enhancing financial literacy. With the presence of agent banking in the state, it will enhance business sustainability and facilitate financial transactions. These will increase economic activities and increase employments and reduce poverty. Given the potentials of agent banking for socio-economic development in the state, it is recommended that financial literacy awareness should be created so that rural population who have long lived unbanked to accept banking services via the agent banking. Also, banks operating in the state should leverage on the opportunity of agent banking to penetrate the rural population with a view to achieving financial inclusion in line with the CBN’s revived National Financial Inclusion Strategy (NFIS) which places implementation focus on women, rural areas, youth, Northern Nigeria and MSMEs to achieve 95% financial inclusion rate by 2024.

scholarly journals Financial Literacy, Health Engagement and Residents’ Health: Evidence from China

2021 ◽  
Vol 18 (8) ◽  
pp. 4202
Author(s):  
Qilong Zheng ◽  
Zhen Peng ◽  
Shun Ding
Keyword(s):  
Rural Areas ◽  
Financial Literacy ◽  
Health Expenditure ◽  
Positive Impact ◽  
Urban Residents ◽  
Economic Perspective ◽  
Long Term Effects ◽  
Urban And Rural Areas ◽  
The Impact

This study took residents’ health level as the research object, adopted the perspective of financial literacy, and used the 2014–2018 China Family Panel Studies data to analyze the impact of financial literacy on the residents’ health. The study found that financial literacy could have a significant positive impact on the residents’ health, with long-term effects. Furthermore, it promoted the residents’ health engagement and improved their health through the intermediary effects of income and health expenditure. In addition, the impact of financial literacy on the residents’ health was heterogeneous between urban and rural areas. Compared with the case for rural residents, the improvement of financial literacy significantly improved the health of the urban residents. The outcomes of this research were the exploration of means to improve residents’ health from a new economic perspective, promote residents’ health engagement, and improve residents’ health.

The impact of entrepreneurs’s financial literacy on innovation within small and medium-sized enterprises

2020 ◽  
pp. 026624262095907
Author(s):  
Baohua Liu ◽  
Jiancheng Wang ◽  
Kam C Chan ◽  
Anna Fung
Keyword(s):  
Financial Literacy ◽  
Risk Tolerance ◽  
Transmission Mechanism ◽  
Policy Implications ◽  
Capital Theory ◽  
Financial Decisions ◽  
Risky Investment ◽  
Large Survey ◽  
The Impact ◽  
Innovation Metrics

This article analyses the impact of an entrepreneur’s financial literacy upon innovation within small- and medium-sized enterprises (SMEs) and, in so doing, extends human capital theory to consider the effect of financial literacy on risky investment decisions. Using a large survey dataset of Chinese SMEs in 2015 and 2017, our findings suggest that financial literacy is positively associated with innovation; positive relationships are robust to different innovation metrics. In addition, we find that gender matters, as male owners appear to promote more innovations, while firm size is positively associated with innovation. Additional analysis suggests that risk tolerance is a transmission mechanism for the impact of financial literacy on innovation. Our results corroborate previous studies showing that individuals with greater financial literacy make sound personal financial decisions and so have important public policy implications.

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