ASSET

2020 ◽  
pp. 1-16
Author(s):  
Tomas Folke ◽  
Jovana Gjorgjiovska ◽  
Alessandro Paul ◽  
Lea Jakob ◽  
Kai Ruggeri
Keyword(s):  
Socioeconomic Status ◽  
Young Adults ◽  
Young People ◽  
Psychometric Properties ◽  
Financial Literacy ◽  
Predictive Power ◽  
Mathematical Ability ◽  
Financial Decisions ◽  
High Level ◽  
Literacy Research

Abstract. Young adults increasingly require good financial literacy to make the most of the opportunities provided to them. Unfortunately, existing financial literacy measures that may assist with targeting interventions show low reliability, ceiling effects, and a high level of abstraction. To address this, we designed and assessed the psychometric properties of a new measure specifically targeting young people, the Assessment of Economic and Financial Literacy (ASSET). We find it has better overall validity, reliability, and predictive power than existing measures. Using ASSET, we find that mathematical ability, calculator use (an example of deliberative thinking), gender, and socioeconomic status are key predictors of financial literacy. We recommend this more robust tool for use in financial literacy research to assess implications for guiding major financial decisions among young people.

scholarly journals ASSET: A new measure of Economic and Financial Literacy (Accepted at the European Journal of Psychological Assesment)

2019 ◽  
Author(s):  
Tomas Folke ◽  
Jovana Gjorgjiovska ◽  
Alessandro Paul ◽  
Lea Jakob ◽  
Kai Ruggeri
Keyword(s):  
Socioeconomic Status ◽  
Young Adults ◽  
Young People ◽  
Psychometric Properties ◽  
Financial Literacy ◽  
Predictive Power ◽  
Mathematical Ability ◽  
Financial Decisions ◽  
High Level ◽  
Literacy Research

Young adults increasingly require good financial literacy to make the most of the opportunities provided to them. Unfortunately, existing financial literacy measures that may assist with targeting interventions show low reliability, ceiling effects, and a high level of abstraction. To address this, we designed and assessed the psychometric properties of a new measure specifically targeting young people, the Assessment of Economic and Financial Literacy (ASSET). We find it has better overall validity, reliability, and predictive power than existing measures. Using ASSET, we find that mathematical ability, calculator use (an example of deliberative thinking), gender, and socioeconomic status are key predictors of financial literacy. We recommend this more robust tool for use in financial literacy research to assess implications for guiding major financial decisions amongst young people.

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.

scholarly journals Financial Literacy in the Czech Republic

2015 ◽  
Vol 2 (4) ◽  
pp. 25-35
Author(s):  
Liběna Kantnerová
Keyword(s):  
Young Adults ◽  
Czech Republic ◽  
High Schools ◽  
Young People ◽  
Financial Literacy ◽  
Financial Knowledge ◽  
The Czech Republic ◽  
Youth And Young Adults ◽  
The University ◽  
South Bohemia

This paper analyses the need to deal with the issue of financial literacy and financial knowledge not only by adults, but also by youth and young adults. This paper is focused on research into the knowledge and understanding of the financial literacy of young people, mostly between the ages of 16 to 33 years, via a questionnaire. The survey, undertaken in the Czech Republic, is based on a sample of 329 students from high schools and 329 students from the University of South Bohemia in České Budějovice [658].

scholarly journals P2P Lending platforms in Malaysia: the awareness among young adults

F1000Research ◽  
2021 ◽  
Vol 10 ◽  
pp. 1096
Author(s):  
Lan Thi Phuong Nguyen ◽  
Saravanan Muthaiyah ◽  
Malick Ousmane Sy
Keyword(s):  
Young Adults ◽  
Pilot Study ◽  
Undergraduate Students ◽  
Financial Literacy ◽  
Online Questionnaire ◽  
Loan Default ◽  
Default Rates ◽  
P2p Lending ◽  
High Level ◽  
Shed Light

Background - Since 2016, the Securities Commission (SC) in Malaysia has given licenses to only eleven P2P lending platforms. Such lending platforms are expected to disrupt the lending services of traditional lenders in the coming years. However, being still in their infant stages, it is essential to know the extent to which such platforms are made known to potential investors out there. This study examines the extent to which young adults are aware of Malaysia's eleven P2P lending platforms.    Methods - A sample of 65 undergraduate students majoring in finance and accounting was used for this pilot study. An online questionnaire was designed with three main parts: demographic, financial literacy, and P2P lending awareness.   Results - Findings show that more than half of respondents in the sample are not aware of P2P lending platforms in Malaysia.  Most of the respondents are financially literate to certain degrees. Those aware of their presence underestimated the potentially high level of their default rates and misunderstood that investor would be fully protected by such platforms when a loan default.   Conclusions -The study's findings have shed light on the current awareness of P2P lending platforms among Malaysian young adults, potential investors of such platforms in the coming years.

scholarly journals Financial Literacy among SMEs’ Owners in Sumatera, Indonesia: The Role of Parents’ Motivation and Experience

2020 ◽  
Vol 6 (3) ◽  
pp. 1131-1139
Author(s):  
Rika Desiyanti ◽  
Aza Azlina Md Kassim
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Financial Decisions ◽  
Parental Motivation ◽  
Role Of Parents ◽  
Literacy Research

Financial literacy is the skill to conduct personal and also business finance. Financial literacy shows information and reasoned both for the economy and finance.  Financial literacy is able to apply and regulate financial literacy that affects wellbeing. In 2013, the financial services authority (OJK) has conducted a financial survey and the result indicated that only 21.8% of people understand finance and in 2016, the percentage has increased from about 8% to 29.66. Lacking strength of financial literacy gives low effect on financial decisions, including less saving,  opting for more leverage, and involved in unprofitable investments. This paper a particular goal to analyze the influence of parental motivation and experience on financial literacy. Research sample is SMEs' Owners in Sumatra, Indonesia, have been sent questionnaires.  Based on a sample of 60 respondents it can be concluded that parents' motivation affected their financial literacy. Nevertheless, financial experience by the parents does not affect financial literacy.

scholarly journals Financial Literacy: The Case of Poland

2020 ◽  
Vol 12 (2) ◽  
pp. 700 ◽  
Author(s):  
Beata Swiecka ◽  
Eser Yeşildağ ◽  
Ercan Özen ◽  
Simon Grima
Keyword(s):  
High School ◽  
High School Students ◽  
Young People ◽  
Financial Literacy ◽  
Financial Management ◽  
Financial Knowledge ◽  
Economic Indicators ◽  
School Students ◽  
High Level ◽  
National Economies

Financial literacy is a path to sustainability and has an important role in ensuring the financial sustainability of individuals, families, enterprises and national economies. The level of these economic indicators such as debt, payment discipline, savings and financial management all translate into prosperity or insolvency and bankruptcy and result partially from financial literacy. The higher the level of financial literacy, especially of young people, the more favourable the level of economic indicators, which translates into the economy and sustainable development. With this study we aim to determine the level of financial literacy of high school students in Poland and to determine whether financial literacy changes according to gender. The most important element that distinguishes our study from the others is that or study was carried out with a large sample of high school students with an average age of 15–16 years. In addition, the effect of gender on financial literacy at an early age was investigated, also comparing the wider themes to the so-called narrow themes. The results of the research demonstrated a good and partially very good, level of financial knowledge of the young people in Poland. 45.3% obtained an average level score and 43.8% achieved a high-level score in financial knowledge. This result shows that they can be rational in their financial decision making. However although, it is understood that gender makes a difference on financial behaviour and use of financial instruments, gender does not make any difference on the level of financial knowledge. Moreover, the financial literacy level of males is found to be higher than females.

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 FINANCIAL LITERACY AND RISK PROFILE: AN EXTENSIVE OBSERVATION ON BANK EMPLOYEES

2021 ◽  
Vol 19 (1) ◽  
pp. 175-186
Author(s):  
Sylviana Maya Damayanti ◽  
◽  
Pramudya Wicaksana ◽  
Keyword(s):  
Financial Literacy ◽  
Financial Management ◽  
Demographic Factors ◽  
Sampling Technique ◽  
Well Being ◽  
Risk Profile ◽  
Financial Decisions ◽  
Bank Employees ◽  
And Gender ◽  
High Level

People with a high level of financial literacy tend to have better financial management skills to realize their financial well-being through effective financial decisions including investing according to their risk profile. The banking industry is an industry that has the highest inclusive level selected because it can represent financial literacy conditions. On the other hand, the gap between financial inclusion and financial literacy leads to a large number of investment (illegal) cases and complaints to regulators. The purpose of this research is to find out the level of financial literacy and type of risk profile, factors that affect it with bank employees in Bandung as research objects. The sampling technique used is a non-probability sampling technique that is purposive sampling with a total of 408 respondents. Data collection is through online questionnaires. There are three sections questionnaire, demographic factors, financial literacy, and risk profile. The data processing techniques used are descriptive statistical analysis and multiple regressions. The results showed that bank employees in Bandung had financial literacy indexes categorized as “medium” or “sufficient” (66.7%) with a risk profile index of “moderate” type (60%). Demographic factors that affect financial literacy are age, education level, and organizational position. While the factor that affects the risk profile is age and gender. Research has also revealed a strong correlation between financial literacy and risk profile.

scholarly journals Finanzwissen und Finanzbildung in Deutschland – Was wissen wir eigentlich?

2021 ◽  
Vol 90 (1) ◽  
pp. 11-32
Author(s):  
Tabea Bucher-Koenen ◽  
Caroline Knebel
Keyword(s):  
Low Income ◽  
Financial Literacy ◽  
Financial Stability ◽  
Financial Education ◽  
Financial Knowledge ◽  
Older Individuals ◽  
Financial Decisions ◽  
Financial Decision ◽  
High Level ◽  
And Behavior

Zusammenfassung: Im internationalen Vergleich verfügen die Deutschen über ein relativ hohes Finanzwissen. Allerdings bedeutet dies nicht, dass Finanzwissen universell verbreitet ist. Der Anteil der Befragten, der drei grundlegende Fragen zu Zins, Inflation und Risikodiversifikation richtig beantworten kann, liegt zwischen 53 % und 62 %. Dieser Anteil liegt bei Frauen, älteren Menschen, Personen mit geringem Einkommen und geringer Bildung deutlich niedriger. Wissenschaftliche Untersuchungen zeigen, dass sich Finanzwissen positiv auf Finanzentscheidungen auswirkt. Zudem können Finanzbildungsprogramme Finanzwissen und Finanzverhalten verbessern. In Deutschland gibt es bisher keine breit angelegte Financial Literacy-Strategie und damit auch keine gezielten Evaluationen und Qualitätssicherungsmaßnahmen für die angebotenen Programme. Eine solche Strategie könnte sowohl dazu beitragen Finanzentscheidungen Einzelner als auch die gesamtwirtschaftliche Stabilität zu verbessern. Summary: In an international comparison, Germans have a relatively high level of financial knowledge. However, this does not imply that financial knowledge is universally distributed. The share of respondents, who are able to answer three basic questions about interest rate, inflation, and risk diversification correctly, lies between 53 % and 62 %. Among women, older individuals, and people with low income or low education, this share is substantially lower. Research has shown that financial knowledge positively affects financial decision-making. Furthermore, financial education programs can enhance financial knowledge and behavior. In Germany, no broad financial literacy strategy exists and, therefore, no targeted evaluations and quality assurance measures for programs are in place. Such a strategy could improve people’s financial decisions as well as the overall financial stability.

scholarly journals NEW RISKS TO THE YOUNG PEOPLE AS A RESULT OF DIGITAL FINANCE DEVELOPMENT IN THE RUSSIAN FEDERATION

2020 ◽  
pp. 35-40
Author(s):  
Олег Владимирович Масленников ◽  
Наталия Владимировна Масленникова
Keyword(s):  
Young People ◽  
Russian Federation ◽  
Financial Literacy ◽  
Age Groups ◽  
Digital Economy ◽  
State Regulation ◽  
Social Commerce ◽  
National Agency ◽  
Economic Relations ◽  
High Level

The article presents an analysis of new risks for Russian youth associated with the development of digital finance. The goals of the article are: 1) to determine the existence of the problem of the formation of new risks for young people in the context of the development of digital finance; 2) to identify new risks; 3) to analyze the scale of existing risks associated with low digital and financial literacy of young people; 4) to create recommendations to minimize these risks. The study is based on statistical materials and reports of the Central Bank of Russian Federation and the National Agency for Financial Research. The foreign experience of state regulation of certain new economic relations resulting from the development of the digital economy was analyzed. The article proves the existence of threats to young people from fraudsters in the field of electronic payment systems, social commerce, new type of financial pyramids and unregulated gambling on the Internet. Young people belong to a social group with a fairly high level of risks in the field of financial technology and the digital economy. The main factors of such situation are:1) their high involvement in socio-economic relations in the digital environment; 2) lack of significant financial products and services experience; 3) perilous online behavior. The article reveals that the scale of the problem of the implementation of these risks among young Russians is quite large. In comparison with the risks, associated with fraud with bank cards, which are a problem for all age groups of the population, the risks of the development of illegal services for gambling and the use of methods of monetizing gaming applications based on loot boxes are problems inherent in young people 

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