Time Perspective and Financial Health: To Improve Financial Health, Traditional Financial Literacy Skills Are Not Sufficient. Understanding Your Time Perspective Is Critical

2017 ◽  
pp. 9-40 ◽  
Author(s):  
Philip Zimbardo ◽  
Nick Clements ◽  
Umbelina Rego Leite
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lisa K. Meneau ◽  
Janakiraman Moorthy

PurposeThe purpose of the study is to examine the following two research objectives. The first was to examine the predictive relationships that consumer characteristics of financial literacy, thinking styles and self-control have with a consumer's financial behaviors. The second goal was to ascertain financial management products' ability to aid those consumers who need it the most by weakening the predictive effects of consumer traits on financial behaviors.Design/methodology/approachThe study employed a web-based survey to gather information. The measurement and structural models were analyzed using generalized structured component analysis (GSCA), a component-based structural equation model. The mediation effect of self-control is assessed using the GSCA. The conditional mediation of demographic variables and use of personal financial management products are evaluated using multi-group analysis (MGA) in GSCA.FindingsAntecedents, financial literacy, thinking styles and self-control consumer characteristics are predictors of financial behaviors. However, self-control plays a more prominent role as a mediator between the other variables, strengthening the overall relationship. Also, financial products can have a beneficial moderation effect assisting those consumers who need them the most.Practical implicationsThese insights help in creating target specific financial literacy strategies to influence consumers' financial behaviors. Also, there is a need to develop mechanisms to influence a consumer's self-control and thinking styles to improve financial behavior. In conjunction with other initiatives, the impact of financial literacy has a greater effect on financial behaviors. Further, the insights assist financial institutions and financial technology firms in offering and creating products to help customers make better financial decisions and improve their financial behaviors.Social implicationsThe research addressed a significant global issue – consumer financial health. The Great Recession and the COVID-19 recession highlight the need to focus on the consumer and efforts to improve their financial health.Originality/valueThis research highlighted the mediating role of self-control and suggested that existing and future financial products can positively influence consumer behavior drivers.


2019 ◽  
Vol 3 (1) ◽  
pp. 137-154
Author(s):  
Agung Dharmawan Buchdadi ◽  
Solikha Solikha ◽  
Agung A. W. S Waspodo ◽  
Destria Kurnianti

The aim of this study is to improve knowledge and skill about financial literacy, especially for woman who take the most responsibilities to manage finance in her household. Attended by 13 housewives, the method used in this activity is; first, explanation using power point slides and LCD projector; second, experience sharing and discussion; distributing quetionaire to measure their level of financial literacy, discussed about their characteristics on investment and what kind of product which is suit to their ability to accept risk. Held on May 7, 2017, the community service is funded by DIPA BLU Faculty of Economics, Universitas Negeri Jakarta. The result shows that only few participants understand how to measure their financial health and what kind of investment products that suit to their characteristics as an investor.


2020 ◽  
Vol 31 (1) ◽  
pp. 55-68
Author(s):  
Sue L. T. McGregor

This position article proposes that bankruptcy counseling and education should be tailored so that bankrupts and consumer debtors can attain solvency literacy, a new construct developed for this initiative. They need to (a) handle their financial affairs during the insolvency process while (b) concurrently striving for a fresh start, rehabilitation (financial health), and reduced recidivism after discharge. Each of the Canadian and American insolvency education and counseling curricula is described with attendant discussions of financial education (literacy), consumer education (literacy), and credit education (literacy). Intending to keep bankruptcy insolvency education relevant and effective, a specially tailored curriculum is tendered for consideration. The curriculum represents a hybrid of consumer, financial, and credit education. It is relevant to immediate, situation-specific financial needs anticipating that people can strive for more generic consumer and financial literacy after they have attained solvency literacy.


2021 ◽  
Author(s):  
Jedidiah Andres ◽  
Arsal Wahab ◽  
Doug Furchner ◽  
Nazia Sheikh ◽  
Sonny Banerjee

Money and other financial assets are essential elements of everyday life. It is important for students to understand how to manage their money in order to avoid financial stress. Students must have a strong foundation in financial literacy, which illustrates basic financial concepts and asset management techniques. This knowledge is vital for students seeking to establish successful careers and personal lives. Financial literacy programs are used as tools to analyze and provide knowledge to individuals in allocating their financial resources. It also aids in better educating and preparing students to manage these financial resources during and after their time at school. It is especially important given the current state of the economy, which has impacted Canada’s economic growth and students’ ability to obtain meaningful employment after graduation. To help students succeed in money management and enhance financial literacy Ryerson University Financial Services and the Ryerson University Library developed a financial literacy workshop series geared towards students. The workshop will allow students to gain a strong foundation in financial literacy; more specifically the financial components of budgeting, banking, credit, paying for school and life after school. In this handbook you will find information about managing your money during and after school. We know that money is important and it takes strong skill sets and discipline to manage your money. Like most skills it requires practice. Without applying financial literacy skills it is likely that you will at some point in your life experience financial distress. This workshop series will help you mitigate that risk.


2016 ◽  
Vol 13 (2) ◽  
pp. 354-362 ◽  
Author(s):  
Neneh Brownhilder Ngek

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


Author(s):  
Margaret Echelbarger

Money (usually interpreted as currency) is a cultural tool that helps organize ways in which we engage with one another. Learning what it is and how to use it are important developmental milestones. The study of children and money reflects the efforts and contributions of many researchers across several disciplines including psychology, sociology, social work, marketing, and anthropology—thus understanding how children develop their ideas about money, how these ideas change over time, and how children emerge as autonomous economic agents is an interdisciplinary endeavor. The work included in this bibliography covers topics ranging from when children come to know what money is and how to use it, to when and how children come to break into the market and recognize and follow its rules, to understanding the robustness of developmental trends across different populations of children. In this way, the work referenced below reflects both basic and applied efforts. This bibliography is organized into seven sections. The first, General Overviews on Children and Money, highlights key books on this topic that serve as good starting points when first approaching this research area. The second, Foundations of Money Understanding, centers on work examining the development of children’s basic understanding of money (e.g., what money is and how to use it). The third, Using Money: Spending and Saving, presents work examining how children come to use money in the real world and play economies (i.e., small markets created for laboratory studies). The fourth, Economic Socialization and Financial Literacy, highlights work examining the influence of early experiences on later financial health outcomes and behaviors. The fifth, Understanding Market Forces, centers on children’s understanding of economic causation (i.e., the effect market forces have on each other—for example, as demand increases, supply decreases, and price increases). The sixth, Money Cues and Decision Making, presents work documenting ways in which the presence of money influences behaviors. The seventh, Money and Culture, reports on the developmental trends across different populations of children. The purpose of this bibliography is to introduce the topic of children and money and set the stage for a deeper line of inquiry; it is in no way exhaustive. Related topics, such as children’s understanding of poverty and economic equality, are not included; these require their own bibliographies. Additionally, with few exceptions, the work included focuses on studies and experiments involving children. For that reason, exclusive examinations of parents’ ideas about children and money are largely not included. In short, use this bibliography as a starting point to a much richer exploration of this topic.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Linda Evelina Larisa ◽  
Anastasia Njo ◽  
Serli Wijaya

PurposeThe purpose of this study is to examine the effects of demographical factors (age, education and income); psychological factors which are future time perspective (FTP) and financial risk tolerance (FRT); along with financial literacy on retirement planning among female workers in Indonesia.Design/methodology/approachThis study applies a quantitative approach, where primary data was acquired through online surveys to 529 workers in various locations in Indonesia. After data cleaning, the final sample size was 304. The PLS-SEM technique was utilised to assess the structural model in the study.FindingsThe results of this study show that income affects an individual's perspective towards the future. Financial literacy is confirmed to have a direct effect on retirement planning activity. Furthermore, financial literacy appears to be a significant mediator between demographical factors and FTP in affecting retirement planning. An individual's acceptance towards risk is also affected by financial literacy.Practical implicationsThe general public, especially female workers group who have no retirement funds, need to be educated on financial literacy. The government might need to encourage other parties and work together to financially educate the public, specifically regarding investments for retirement planning.Originality/valueMost previous studies on retirement planning focused on demographical factors in general, and not specifically on a certain group. Filling the gap of existing studies, this study specifically discusses retirement planning done by female workers in Indonesia. Women's role as a workforce, with their psychological conditions and financial literacy, makes for an interesting topic to be studied further in terms of retirement planning.


2019 ◽  
Vol 30 (1) ◽  
pp. 18-26
Author(s):  
Victoria M. Shelton ◽  
Thomas E. Smith ◽  
Lisa S. Panisch

Financial therapy is used to address the psychological, emotional, and behavioral components involved in the process of learning and utilizing new financial literacy skills. This study describes the use of a manualized financial therapy financial therapy intervention, the Five-Step Model, as it is piloted in a group setting. Current economic theories support the use of an intervention model that differs from traditional financial literacy teachings. Behavioral economics and the Transtheoretical Model of Behavior Change is used as a foundation for the Five-Step Model. A case study illustrates the key principles and effectiveness of the intervention model. Reflections and feedback from the members of the group are provided, along with a discussion of implications and directions for further inquiry.


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