Impact of Financial Education on Adolescent Financial Capability: Evidence from a Pilot Randomized Experiment

This concluding chapter reflects on some of the things that critics of financial inclusion might learn from its supporters. As many critics of financial inclusion are already engaging with policy topics at some level, they might benefit from a deeper engagement with policy detail. This might pave the way for more detailed criticisms. The chapter then uses the example of the financial education of young people to highlight the varying nature of policy, which might also inform theoretical discussions of the everyday life of finance. Indeed, financial education is important in building financial capability. Finally, the chapter suggests some possible further areas of research that build upon some of the arguments contained in this book.

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Financial education and financial satisfaction

International Journal of Bank Marketing ◽

10.1108/ijbm-01-2016-0009 ◽

2017 ◽

Vol 35 (5) ◽

pp. 805-817 ◽

Cited By ~ 41

Author(s):

Jing Jian Xiao ◽

Nilton Porto

Keyword(s):

Financial Literacy ◽

Financial Education ◽

Well Being ◽

Financial Behavior ◽

Future Research ◽

Financial Satisfaction ◽

Financial Capability ◽

Data Set ◽

Content Type ◽

Mediating Factors

Purpose The purpose of this paper is to investigate roles of financial literacy, financial behavior, and financial capability as mediating factors between financial education and financial satisfaction. Design/methodology/approach Data are from the 2012 National Financial Capability Study, a large national data set with detailed information on financial satisfaction, education, literacy, behavior, capability, and related variables. Mediation analyses are used to answer research questions. Findings Financial education may affect financial satisfaction, a subjective measure of financial well-being, through financial literacy, financial behavior, and financial capability variables. Results show that subjective financial literacy, desirable financial behavior and a financial capability index (a sum of Z-scores of objective financial literacy, subjective financial literacy, desirable financial behavior, and perceived financial capability) are strong mediators between financial education and financial satisfaction. Research limitations/implications The study has used cross sectional data that can only document associations between financial education and satisfaction and the mediators between them. Future research could use relevant longitudinal data to verify multiple benefits of financial education. Practical implications The findings have implications for financial service professionals to take advantages of multiple benefits of financial education in content acquisition, confidence in knowledge and ability, and action taking when they communicate with their clients. Social implications Policy makers on consumer financial education may use the information to advocate and promote effective education programs to improve consumer financial well-being. Originality/value This study is the first of this kind to examine the association between financial education and financial satisfaction and several financial capability variables as mediating factors.

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Education, Financial Knowledge and Consumer Confidence in Financial Goals: Evidence from the 2018 US National Financial Capability Study

Asian Journal of Education and Social Studies ◽

10.9734/ajess/2020/v13i430337 ◽

2020 ◽

pp. 9-21

Author(s):

Fuzhong Chen ◽

Ziteng Han ◽

Qingyang Ma

Keyword(s):

Higher Education ◽

Financial Support ◽

Financial Education ◽

Financial Knowledge ◽

Consumer Confidence ◽

Education Programs ◽

Financial Capability ◽

Ordered Logistic Regression ◽

Education Levels ◽

Robustness Check

Consumer confidence in financial goals is the degree of trust expressed by consumers through the activities of setting financial goals and subsequent realization. Utilizing data from the 2018 US National Financial Capability Study, in terms of the data characteristics of the dependent variable, this study utilizes the method of ordered logistic regression to explore the roles of education and financial knowledge in consumer confidence in financial goals. Moreover, this study also performs a robustness check, which suggests unchanged results. The results indicate that both education and financial knowledge positively contribute to consumer confidence in financial goals and consumers both with higher education levels and financial knowledge will be more confident in financial goals. Thus, policymakers are recommended to provide financial support for education and focus on mechanisms of improving financial knowledge through financial education programs and financial related courses.

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Consumer Financial Knowledge and Retirement Planning Behaviors

Asian Journal of Economics Business and Accounting ◽

10.9734/ajeba/2021/v21i830417 ◽

2021 ◽

pp. 109-123

Author(s):

Fuzhong Chen ◽

Zijun Sun

Keyword(s):

Population Aging ◽

Financial Education ◽

The Elderly ◽

Retirement Planning ◽

Financial Knowledge ◽

Education Programs ◽

Financial Capability ◽

Retirement Accounts ◽

The World ◽

High Level

With the increasingly serious problem of population aging around the world, the issue of consumer retirement planning behaviors has been highlighted in recent years. The purpose of this study is to investigate the effect of consumer financial knowledge on retirement planning behaviors. Utilizing the data from the National Financial Capability Study in 2009, 2012, 2015, and 2018, this study measures consumer retirement planning behavior through the variables of whether consumers have retirement accounts and whether they regularly contribute to their retirement account. To verify the robustness, a series of additional regressions are conducted by replacing the estimation approach and dropping income outliers. The results imply that consumers with a high level of financial knowledge tend to perform desirable retirement behaviors. Based on the results, we recommend that financial education programs should be widely introduced and targeted at those who lack financial knowledge, such as the elderly and the under-educated, to stimulate consumers to improve their retirement planning behaviors.

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