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 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 Credit Culture of Students as the Object of Sociological Analysis

2019 ◽  
pp. 75-90 ◽  
Author(s):  
Nadezhda Dulina ◽  
Dar'ja Moiseeva ◽  
Eugeniya Anufrieva ◽  
Vera Paramonova
Keyword(s):  
Financial Literacy ◽  
Point Of View ◽  
Financial Behavior ◽  
Full Time ◽  
Difficult Situation ◽  
Demographic Groups ◽  
Working Hypothesis ◽  
Sample Representation ◽  
The Impact ◽  
Credit Culture

Growth of volume in crediting to individuals in the Russian Federation during 2008-2018 and problems of debt maintenance have actualized the need of studying changes in the sphere of Russian crediting culture. The aim of the paper is to study credit attitude of modern student youth. At the first stage of the study the authors analyzed the correlation between key options: "credit culture", "credit attitude", "credit behavior", "financial culture", "financial attitude", "financial behavior". The investigators carried out the review of foreign and Russian research works aimed at studying the credit culture and credit behavior of students. They revealed features of foreign studies of credit culture / behavior, on this basis they conclude that this subject is poorly developed in Russia not only by individual socio-demographic groups, but also by the population generally. The working hypothesis of the research has been put forward: it is the change in the credit attitude of young people who do not have their own credit experience, which is the evidence of serious changes in the credit culture. At the second stage, the pilot study "Credit behavior of the population" (December 2017 -January 2018, Volgograd, accidental sampling (n = 404), the sample representation task was not set, the method of collecting information: on-line questioning) has been implemented. The results of the study let the authors to describe the credit culture of Volgograd Universities' students. The strong savings orientation among students has been defined. They are prone to saving money in a difficult situation and are ready to provide financial assistance, but they would not like to resort to it themselves in case of difficulties. Students realize the need of improving their level of financial literacy for building their own effective financial strategies. In the minds of students there is a necessity to correlate risk and result, but not all of them are ready to risk. Analysis of differences in the responses of full-time and extra-mural students has confirmed the working hypothesis. Credit attitude of students, in our point of view, testify the rootedness of the youth credit culture. The correlation between the results of estimating the impact of credit practice on credit culture and the modern scale of crediting to Russians makes it possible to hypothesize that there will be a strong transformation of the credit culture of Russians in the next 20 years. The authors plan to test this hypothesis in their further studies.

scholarly journals Financial Literacy in Japan: New Evidence Using Financial Knowledge, Behavior, and Attitude

2020 ◽  
Vol 12 (9) ◽  
pp. 3683 ◽  
Author(s):  
Yoshihiko Kadoya ◽  
Mostafa Saidur Rahim Khan
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Well Being ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Economic Factors ◽  
Financial Decisions ◽  
Aged People ◽  
And Behavior ◽  
Socio Economic Factors

Success in the current complex and sophisticated financial marketplaces depends on the ability of people to make sustainable financial decisions to improve their future well-being, for which financial literacy is a pathway. This study examines the relationship between the demographic and socio-economic factors and financial literacy in Japan by segregating financial literacy into financial knowledge, attitude, and behavior, and providing a deeper understanding of the relationships. The methodology included using data from the Financial Literacy Survey 2016 by the Central Council for Financial Services Information of Japan. We used a linear regression model to explain how demographic and socio-economic factors relate to financial knowledge, attitude, and behavior. Results show that education, the balance of financial assets, and the use of financial information are positively related, while the experience of financial trouble is negatively related to financial knowledge, attitude, and behavior. We show that males are more financially knowledgeable than females, but females are more positive than males with regard to financial behavior and financial attitude. Age is positively related to financial knowledge but negatively related to financial attitude, thus suggesting that middle-aged people in Japan are more financially knowledgeable, but younger and older people are more positive with regard to financial behavior and attitude. The findings have implications for policymakers.

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 Financial Knowledge as Youth Preneur Success Factor

2019 ◽  
Vol 10 (2(S)) ◽  
pp. 26-32
Author(s):  
Achmad Kautsar ◽  
Nadia Asandimitra
Keyword(s):  
Financial Literacy ◽  
Sampling Technique ◽  
Financial Knowledge ◽  
Test Reliability ◽  
Financial Behavior ◽  
Cluster Sampling ◽  
Success Factor ◽  
Entrepreneurial Success ◽  
Financial Decisions ◽  
Entrepreneurial Skills

Indonesia currently has developed entrepreneurship both conceptually and practically and has developed very rapidly. Knowledge that must be possessed by an entrepreneur is financial knowledge. Adequate financial knowledge is needed to provide entrepreneurial skills to make sound financial decisions. Other variables of financial behavior that are important to be measured along with financial knowledge on the success of young entrepreneurial business are the level of financial behavior and financial literacy. This research was designed as explanatory research to explain the subject of the influence of financial knowledge, financial literacy, and financial attitude towards young entrepreneurial success. The research was conducted in the city of Surabaya. The population of this study is young entrepreneurs who have micro businesses. The sampling technique is done in a way cluster sampling. The analytical method used in this study is to use multiple linear regressions with validity test, reliability test, classic assumption test, and hypothesis testing.

scholarly journals Economic culture as a factor in the financial behavior of Russians: the role of archetypes and modern context

POPULATION ◽  
2021 ◽  
Vol 24 (2) ◽  
pp. 29-40
Author(s):  
Olga Aleksandrova
Keyword(s):  
Interpersonal Relationships ◽  
Financial Literacy ◽  
The State ◽  
Economic Life ◽  
Individual Responsibility ◽  
Financial Behavior ◽  
Modern World ◽  
Economic Culture ◽  
Patterns Of Behavior ◽  
The Impact

In Russia, as in many countries, the state is showing increased attention to the topic of financial literacy of the population, which is connected, on the one hand, with the expansion of the financial market inherent in the modern world economy, involving ordinary people in its orbit, and, on the other hand, with the curtail of the welfare state, and the reorientation of citizens to self-financing their needs for pensions, medical care, education, etc. In the process of such pushing up people to become investors, borrowers, participants of funded pension schemes, the specific character of the economic culture of the population is not taken into account, while many observed phenomena, such as low level of financial literacy and massive distrust of financial institutions, are due exactly to it. The article presents analysis of the cultural archetypes and patterns of behavior characteristic of the Russians that make up the economic culture; they were correlated with the models of behavior of the population of interest to the state; the impact on the existing economic culture of the current socio-economic context is considered. It is shown that the natural-climatic, geographic, geopolitical and religious factors have shaped Russians' specific attitude towards savings, their own and other people's property, planning horizons, contractual obligations, separation of common and individual responsibility, financial discipline, work ethics, state and commercial institutions, interpersonal relationships, etc., which is far from that sought by the state. Meanwhile, the problem is that it is the socio-economic policy pursued by the state, the events of the economic life of the past thirty years that act as the factors of reproduction and consolidation of the formed cultural archetypes and patterns of behavior, but not their productive transformation.

scholarly journals Factors Affecting Financial Literacy and Financial Behaviour of Investors in Pakistan

2020 ◽  
Vol 1 (3) ◽  
pp. 80-90
Author(s):  
Muhammad Junaid Khan ◽  
Dr. Faheem Aslam ◽  
Syed Nisar-Ul-Mulk
Keyword(s):  
Cognitive Ability ◽  
Financial Literacy ◽  
Self Efficacy ◽  
Structural Equation ◽  
Research Study ◽  
Positive Impact ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Financial Socialization ◽  
The Impact

The main purpose of our study is to find out the impact of financial socialization, cognitive ability, and self-efficacy on financial literacy and financial behavior of investors in Pakistan. This study has used a non-probability convenience-based sampling technique for collecting the data. A total of 429 individual investors were analyzed with the help of structural equation modeling (SEM) through Smart PLS. The results of our research study suggested that the participation of female investors as compare to male investors is very low. The main results of the study showed that cognitive ability and self-efficacy have a significantly positive impact on financial literacy, but an insignificant impact of these two variables on financial behavior was found. Findings also suggested that the influence of financial socialization on financial literacy is insignificant, while financial behavior is positively influenced by financial socialization and financial literacy. In mediating analysis cognitive ability and self-efficacy have positively affected financial behavior, while financial socialization has an insignificant effect on financial behavior through financial literacy. This research study provides important implications for researchers and other policymakers. Policymakers can formulate policies regarding trainings to improve the financial literacy of investors. Researcher can further investigate these variables for other segments of the society.

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

Financial literacy training programs and financial behaviour: Why people do not become “financially literate”?

2020 ◽  
pp. 80-93
Author(s):  
D. V. Kislitsyn
Keyword(s):  
Financial Literacy ◽  
Financial Behavior ◽  
Literacy Programs ◽  
Financial Decisions ◽  
Financial Decision ◽  
Improvement Programs ◽  
The Government ◽  
Low Efficiency ◽  
Economic Understanding

The paper takes a critical view on the prevalent approaches to developing financial literacy programs. It has been shown that meta-analytical and review studies indicate low efficiency of financial literacy improvement programs: their effect on financial behavior is either statistically insignificant or statistically significant, but practically negligible. Among potential reasons of financial literacy programs low efficiency the role of behavioral factors in financial decision making and the impossibility of determining “financially literate” behavior from the perspective of an outside observer are considered. It is concluded that the currently dominant criteria for assessing financially competent behavior can be characterized either as procedural, within which not the consequences of financial decisions are considered, but how consciously they are taken, or as normative, within which the government differentiates the consumers attitudes into wrong and right. Both groups of criteria are based on a non-economic understanding of rationality.

scholarly journals The Impact of Founder’s Financial Behavior Traits and Literacy on SMEs Performance: Empirical Evidence from SMEs in Indonesia

2021 ◽  
Vol 25 (3) ◽  
pp. 671-687
Author(s):  
Nakita Gusman ◽  
Subiakto Soekarno ◽  
Isti Raafaldini Mirzanti
Keyword(s):  
Financial Literacy ◽  
Multivariate Regression Analysis ◽  
Financial Behavior ◽  
Behavioral Characteristics ◽  
Self Awareness ◽  
Behavioral Traits ◽  
Self Knowledge ◽  
Development Evaluation ◽  
Rate Of Failure ◽  
The Impact

This research focuses on the SMEs development evaluation of the impact of founder’s financial behavior, measured by behavioral characteristics of CEOs capacity for self-awareness, planning, and patience, also their knowledge about financial understanding which affect the ability to manage their performance of SMEs. The purpose of this research is to analyze and reduce the rate of failure of SMEs in Indonesia by pursuing the defined determinants from their behavioral traits and self-knowledge on financial understanding in decision making. This study uses a survey conducted across Indonesia, mainly on Java island, with the sample size of 482 SMEs. This research uses multivariate regression analysis as a tool for measuring the impact of founder’s financial behavior variables and financial literacy variable for SMEs performance as a dependent variable. DOI: 10.26905/jkdp.v25i3.5142

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