An investigation of financial literacy, money ethics and time preferences among college students

2019 ◽  
Vol 37 (3) ◽  
pp. 880-900 ◽  
Author(s):  
Asli Elif Aydin ◽  
Elif Akben Selcuk
Keyword(s):  
College Students ◽  
University Students ◽  
Financial Literacy ◽  
Time Preferences ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Content Type ◽  
Financial Attitudes ◽  
The Relationship ◽  
Money Ethic

Purpose Financial literacy has a strong influence on financial well-being, and it is a concept especially important for college students who start to develop their financial habits. The purpose of this paper is to examine the relationship between financial literacy, money attitudes and time preferences among Turkish university students. Design/methodology/approach Data were collected from 1,443 university students from 14 campuses in Turkey. Structural equation modeling methodology is employed to test the hypotheses. Findings The results suggest that students with higher financial knowledge scores have more favorable financial attitudes and exhibit more desirable financial behaviors. It is also demonstrated that financial attitude is positively related to financial behavior. Furthermore, a significant and negative relationship between the affective dimension of the money ethic construct and financial behavior is found. In contrast, the relationship between the behavioral dimension of money ethic and financial behavior is positive. It is further demonstrated that a present orientation leads to more negative financial attitudes. Originality/value This study will reveal the interrelationships among dimensions of financial literacy, money ethics and time preferences in an emerging economy with a relatively little experience with formal financial systems and unstable macroeconomic conditions.

scholarly journals Investigating the level of financial literacy of university students

2017 ◽  
Vol 16 (3) ◽  
pp. 845-866 ◽  
Author(s):  
Israel José dos Santos Felipe ◽  
Harrison Bachion Ceribeli ◽  
Túlio Queiroz Lana
Keyword(s):  
Structural Equation Modeling ◽  
University Students ◽  
Financial Literacy ◽  
Structural Equation ◽  
Financial Education ◽  
Well Being ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Financial Attitudes

AbstractConsidering that the quality of financial decisions taken by individuals depends on their financial knowledge, abilities and attitudes, it is possible to state that the well-being of a population depends on how financially literate it is. In this context, the aim of this study was to measure the financial literacy level of university students in north of Mexico. The research method used was the survey and the data collected were analyzed using the structural equation modeling technique. As results, it was possible to confirm that financial attitudes of university students of north of Mexico influence their financial behavior. However, it was not confirmed that financial knowledge of these students impacts their financial behavior. As a high relationship between financial attitudes, financial behavior and financial knowledge of analyzed individuals was not found, it is concluded that the level of financial literacy of university students in the north of Mexico is low. It implies in the necessity to invest in financial literacy programs that could help this population to better manage their resources, what would certainly impact on its savings and consumption decisions, and retirement planning.Keywords: Financial Literacy. Financial Education. Structural Equation Modeling. Mexican Students. Investigando o nível de alfabetização financeira de estudantes universitários ResumoConsiderando que a qualidade das decisões financeiras tomadas pelos indivíduos depende de seus conhecimentos, habilidades e atitudes financeiras, é possível afirmar que o bem-estar de uma população depende do quão financeiramente alfabetizada ela é. Neste contexto, o objetivo deste estudo foi mensurar o grau de alfabetização financeira dos estudantes universitários do norte do México. O método de pesquisa utilizado foi a survey e os dados coletados foram analisados por meio da técnica de modelagem de equações estruturais. Como resultados, foi possível confirmar que as atitudes financeiras dos universitários do norte do México influenciam seu comportamento financeiro. Todavia, não se confirmou que o conhecimento financeiro desses estudantes impacta seu comportamento financeiro. Como não se encontrou uma forte relação entre os conhecimentos, atitudes e comportamentos financeiros dos indivíduos analisados, conclui-se que o nível de alfabetização financeira dos estudantes universitários do norte do México é baixo. Isso implica na necessidade de investir em programas de alfabetização financeira para auxiliar essa população a melhor gerir seus recursos, o que certamente irá impactar em suas decisões de poupança e consumo, assim como em seu planejamento de aposentadoria.Palavras-chave: Alfabetização financeira. Educação financeira. Modelagem de equações Estruturais. Estudantes mexicanos.

Development of a financial literacy model for university students

2016 ◽  
Vol 39 (3) ◽  
pp. 356-376 ◽  
Author(s):  
Ani Caroline Grigion Potrich ◽  
Kelmara Mendes Vieira ◽  
Wesley Mendes-Da-Silva
Keyword(s):  
University Students ◽  
Financial Literacy ◽  
Structural Equation ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Public And Private ◽  
Content Type ◽  
Adjusted Model

Purpose – The purpose of this paper is to build and compare models that assess university students’ financial literacy. Financial literacy, understood as the mastery of a set of knowledge, attitudes and behaviors, has assumed a fundamental role in allowing and enabling people to make responsible decisions as they strive to attain financial wellbeing. To this end, models that integrate financial knowledge, behavior and attitude are integrated. The models are subsequently estimated, and many comparative tests are performed. Design/methodology/approach – The study investigated a random sample of 534 university students attending public and private universities in southern Brazil. The choice of scale was based on consideration of the best adjustment for the Brazilian context, appropriate translation and content validation. For an analysis of the collected data, structural equation modeling was employed using two strategies. Findings – The findings indicate that, in the model estimation stage, the scales for behavior and attitude have been reduced. Among all of the models estimated, the best adjusted model indicates that financial knowledge and financial attitude have positive impacts on financial behavior. Research limitations/implications – The results are not generalizable to the wider population; to enable such generalization, different profiles should be researched using a larger sample. In practical terms, the financial behavior of Brazilian university students expresses the ability to establish long-term aims and saving aimed at future acquisitions and unexpected spending. This behavior is directly influenced by basic and advanced questions of financial knowledge and also by the importance attributed to attitude by establishing aims, control of spending and financial reserves. Originality/value – This paper describes a pioneer study with respect to modeling financial literacy in Brazil. This topic can be improved as the need for rigorous evaluation of financial literacy grows at the same speed as the creation of more complex financial products.

scholarly journals Some Insights Into Financial Literacy Among Undergraduate Students: A Case of Bosnia and Herzegovina

2021 ◽  
Vol 12 (3) ◽  
pp. 103
Author(s):  
Jasmina Okicic ◽  
Meldina Kokorovic Jukan ◽  
Mensur Heric
Keyword(s):  
Undergraduate Students ◽  
Financial Literacy ◽  
Sampling Technique ◽  
Financial Education ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Financial Attitudes ◽  
Significant Difference ◽  
Financial Behaviour ◽  
The Relationship

The purpose of this research is to provide some insights into financial literacy among undergraduate students focusing primarily on the relationship between financial knowledge, financial attitudes and financial behavior and on possible gender and financial education gap in financial literacy. Using the purposive sampling technique, data collection was carried out from April to June 2020, yielding a sample of 1,046 valid responses. To gain a better understanding of the relationship between financial behaviour, financial attitudes and financial knowledge, we, primarily, use exploratory factor analysis and multiple regression model. The research findings have revealed several important issues. First, findings have suggested that financial knowledge, financial attitudes and gender may be considered as an antecedent of the financial behaviour of undergraduate students. Second, findings have also suggested a statistically - significant difference between the financial literacy of undergraduate students concerning their exposure to formal financial education.

Pathways toward entrepreneurial intention among Malaysian universities’ students

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hanieh Alipour Bazkiaei ◽  
Noor Ullah Khan ◽  
Ateeq-ur-Rehman Irshad ◽  
Adeel Ahmed
Keyword(s):  
University Students ◽  
Personality Traits ◽  
Psychological Factors ◽  
Structural Equation ◽  
Entrepreneurial Intention ◽  
Primary Data ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

PurposeEntrepreneurship is a vital source of job creation and a key driver in promoting economic growth. The Malaysian government encourages higher educational institutions (HEIs) to develop more competitive and innovative graduates for the economy so that Malaysia achieves high-income nation status by 2025. This study aims to investigate the mediating role of attitude toward entrepreneurship (ATE) in the relationship between key psychological factors, that is, subjective norm (SN), perceived behavior control (PBC), big-five (BF) personality traits, entrepreneurial motivation (EM) and educational factors (EFs) with entrepreneurial intention (EI) among Malaysian university students.Design/methodology/approachThis study used a quantitative design based on a positivist approach. The adopted questionnaire was used as the survey instrument. The primary data were collected from a sample of 251 final-year students in the management field who were enrolled in research-intensive Malaysian universities. Data were analyzed through the structural equation modeling (SEM) technique using AMOS 24 software.FindingsFindings confirmed that the BF personality traits, EM, PBC, SN, ATE and EFs were positively related to EI. Furthermore, ATE mediated the relationship between BF personality traits, EM, PBC, SN, EF, and EI among Malaysian university students.Research limitations/implicationsThis research provides critical insights into the key antecedents, for example, psychological and EFs, in explaining the EI of university students and future graduates. However, results can only be generalized to research-intensive Malaysian universities.Originality/valueThis study investigated the relationship between psychological factors, that is, BF personality traits, EM, PBC, SN and EFs in predicting EI of Malaysian university students. ATE mediated the relationship between BF personality traits, EM, PBC, SN, EF and EI among these students.

The performance generating limitations of the relationship-banking model in the digital era – effects of customers' trust, satisfaction, and loyalty on client-level performance

2020 ◽  
Vol 38 (4) ◽  
pp. 889-916
Author(s):  
Kent Eriksson ◽  
Cecilia Hermansson ◽  
Sara Jonsson
Keyword(s):  
Survey Data ◽  
Financial Literacy ◽  
Risk Tolerance ◽  
Equation Modeling ◽  
Relationship Banking ◽  
Actual Performance ◽  
Content Type ◽  
Positive Direct ◽  
The Relationship ◽  
Level Performance

PurposeThis paper investigates the viability of the relationship-oriented business model. Specifically, it examines the effects of bank customers' satisfaction, loyalty, and trust in bank advisors on two client-level performance measures; client-level non-interest revenue, and client-level revenue on net interest spread. It further investigates how effects are moderated by differences in clients' risk tolerance and financial literacy.Design/methodology/approachThe findings are based on analyses of a data set that combines survey data (collected from 13,525 bank clients in 2013) with bank record data from each respondent. The cross sectional data is analyzed using OLS-regression and structural equation modeling.FindingsOverall, the findings are that the relationship banking model generates non-interest revenue, but not revenue on net interest spread. In more detail, findings show that trust has a positive direct effect on client-level non-interest revenue. Furthermore, trust mediates the entire effect of satisfaction and loyalty on client-level non-interest revenue. Customer satisfaction and loyalty do not lead to enhanced client-level non-interest revenue if there is little trust in bank advisors. Findings further show that the relevance of trust for non-interest revenue is higher for clients with high risk tolerance and high financial literacy. Satisfaction, loyalty, and trust have no effect, however, on client-level revenue on net interest spread.Originality/valueWhile previous literature mainly has used subjective intentions (e.g., repurchase behavior) as operationalization of performance, this paper combines subjective survey data and objective performance data, allowing the investigation of how the customer relationship model affects actual performance. Furthermore, the paper investigates the relational banking model's effect on non-interest and net interest spread revenue, and we show that the relational banking model generates only non-interest revenue, and not net interest spread revenue. The fine-grained client-level data also allows the investigation on how the effect of trust on client-level performance differs among client groups with different cognitive characteristics (i.e., risk tolerance and financial literacy).

Impact of religiosity and branding on SMEs performance: does financial literacy play a role?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raed Khamis Alharbi ◽  
Sofri Bin Yahya ◽  
Salina Kassim
Keyword(s):  
Saudi Arabia ◽  
Structural Equation Modeling ◽  
Financial Literacy ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
Financial Awareness ◽  
The Relationship

Purpose This study aims to examine the relationship between religiosity and branding on small- and medium-scale enterprises (SMEs’) performance in Saudi Arabia. It also examines the mediating role of financial literacy on the relationship among Islamic religiosity, branding and SMEs’ performance. Design/methodology/approach This study adopts the purposive sampling technique in three major commercial cities, namely, Riyadh, Jeddah and Al-Qassim to sample 100 SMEs each, resulting in a total sampling of 300 SMEs in Saudi Arabia. Structural equation modeling is used to analyze the hypotheses formulated in this study. The structural equation modeling is aided with the help of Smart-PLS software. Findings This study finds that Islamic branding (on customer, compliance and origin) significantly affect financial attitude, while Islamic religiosity affects financial awareness among the SMEs. Findings reveal that there is a mediating role of financial awareness on the relationship between Islamic branding and Islamic religiosity with the SMEs’ performance. No mediation effect was recorded for financial attitude and financial knowledge. Further investigation reveals that financial attitude, financial awareness, Islamic branding (compliance and origin) and Islamic religiosity were the most significant determinants of SMEs’ performance in the context of Saudi Arabia. Research limitations/implications This study is conducted on SMEs in Saudi Arabia only. Further studies are required to examine SMEs in other Islamic countries and regions to improve the explanatory power of financial literacy on Islamic religiosity and Islamic branding for improved SMEs performance. Originality/value This study establishes that Islamic religiosity and branding could further increase the predictive power of financial literacy on SMEs’ performance. This study concludes that efforts to improve financial literacy should be religion-based as well as culture-based depending on where the SMEs are located so that specific strategies can be implemented, to enable the conducive growth of the SMEs and maximize the contribution of the SMEs to economic growth.

Can gamification improve financial behavior? The moderating role of app expertise

2019 ◽  
Vol 37 (4) ◽  
pp. 951-975 ◽  
Author(s):  
Julia Bayuk ◽  
Suzanne Aurora Altobello
Keyword(s):  
College Students ◽  
Financial Literacy ◽  
Financial Services ◽  
Well Being ◽  
Financial Behavior ◽  
Content Type ◽  
Financial Measures ◽  
Subjective Knowledge ◽  
Financial Applications ◽  
Social Features

Purpose The purpose of this paper is to explore potential benefits of gamification (application of game-playing elements) for financial well-being and motivation to save. Design/methodology/approach A preliminary survey of college students explored how gamification principles incorporated into money-savings/personal finance smartphone apps could improve financial well-being. The main study utilized Mechanical Turk participants, exposing them to financial game app descriptions that emphasized social features (e.g. leaderboards and ability to share achievements) or economic features (e.g. ability to earn real money or a higher interest rate). Objective and subjective financial measures including expertise with financial apps, perceived benefits of financial apps and behavioral intentions were examined. Findings Financial worry, financial literacy, subjective knowledge and expertise with money-savings/financial applications predicted financial well-being. Additionally, consumers varied in their preferences for certain financial game app features based on past financial app experience. Those who already used a financial app tend to exhibit higher subjective (though not objective) knowledge, and want both “social” and “economic” features of financial applications, whereas those with no experience are more motivated by economic features. Practical implications These results could be used to guide game designers regarding which features may be more attractive to consumers depending on their prior expertise with financial smartphone applications. Financial services marketing would benefit from further research into whether smartphone financial applications that emphasize social features have benefits for consumers’ motivation and financial well-being. Originality/value Examining college students about to enter the real world and the general population, this project contributes to research to improve understanding of financial well-being by examining how already having a financial gamification application impacts perceptions of knowledge and expertise, as well as intentions to save given a more socially focused vs economically focused savings app. Additional research needs to further explore gamification as an experimental intervention to ultimately improve both subjective financial well-being and objective financial behaviors, especially for consumers with lower expertise and high risk of financial vulnerability.

Talking money at home: the value of family financial socialization

2020 ◽  
Vol 38 (7) ◽  
pp. 1617-1634
Author(s):  
Haidong Zhao ◽  
Lini Zhang
Keyword(s):  
Financial Literacy ◽  
Well Being ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Financial Socialization ◽  
Content Type ◽  
Financial Outcomes ◽  
The Family ◽  
Parental Financial Socialization ◽  
At Home

PurposeThe objective of this study was to empirically examine how family financial socialization affects individuals' financial outcomes, including financial literacy, financial behavior and financial well-being, based on the family financial socialization theory (FFST).Design/methodology/approachUsing a national representative sample of 6,311 US respondents from the 2016 National Financial Well-Being Survey, structural equation modeling (SEM) was conducted to test the hypotheses in this study. Sampling weights were incorporated into the structural model using the maximum likelihood estimation with robust standard errors and a Satorra-Bentler scaled test statistic (MLM estimation).FindingsThis study concludes the effectiveness of family financial socialization by showing that parental financial socialization has significant positive impacts on financial literacy, financial behavior and financial well-being. In addition, parents' education can significantly influence the quality of parental financial socialization.Practical implicationsThe result underscores the importance of financial socialization in the family context and encourages parents to discuss financial matters with their children at home. Detailed implications have been provided to financial educators, practitioners and policymakers to incorporate parental involvement in the design of financial education programs, as well as financial services providers to improve marketing strategies for their banking services.Originality/valueThis research is amongst the first to empirically explore the relationships among parental financial socialization, financial literacy, financial behavior and financial well-being based on the FFST. The study also contributes to the literature by confirming the effects of parental socialization received in childhood on adults' later financial outcomes.

Gamification of financial applications and financial behavior of young investors

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abhinav Pal ◽  
Kavita Indapurkar ◽  
Kriti Priya Gupta
Keyword(s):  
Financial Management ◽  
Structural Equation ◽  
Structural Model ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Content Type ◽  
The Past ◽  
The Relationship ◽  
Moderating Role

Purpose This study aims to investigate the moderating role of gamification on the relationship of financial attitude (FA), financial self-efficacy (FSE) and financial planning activity (FPA) of individuals on the financial behavior of individuals and also provides a conceptual background on financial management behavior (FMB), FA, FSE and FPA of individuals. Design/methodology/approach A preliminary study with the help of a structured questionnaire was conducted by administering the questionnaire to individuals who are exposed to financial apps on their smart phones or personal computers for various money-saving and investment activities. Help of various financial planners and financial consultants led to successful circulation of the questionnaire to respondents. The research model was tested through structural equation modeling using AMOS-21 software. Firstly, a measurement model was evaluated that comprised five latent constructs, i.e. gamifying features (GF), FA, FSE, FPA and FMB. Subsequently, the structural model consisting of the hypothesized relationships was evaluated. Findings The role of GF in financial apps and applications in moderating the influence of FA, FSE and FPA on FMB has not been thoroughly studied in the past literature, and the results of this study show that GF significantly moderate the influence of FA and FPA on the FMB of individuals. However, according to the results GF in financial apps do not have a significant moderating role on the influence of FSE on FMB of individuals. Originality/value The studies in the past have not investigated the role of gamification in the area of personal finance of individual investors, specifically their financial behavior in both developed and developing countries. This study addresses this gap by examining the role of gamification in moderating the relationship that exists between FA, FSE, FPA and financial behavior.

Determinants of Financial Well-Being Among Young Workers in Jakarta During the Covid-19 Pandemic

2021 ◽  
Vol 26 (2) ◽  
pp. 295
Author(s):  
Pamela Lavonda, Ignatius Roni Setyawan, Margarita Ekadjadja
Keyword(s):  
Financial Literacy ◽  
Structural Equation ◽  
Sampling Technique ◽  
Well Being ◽  
Positive Influence ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Financial Risks ◽  
Financial Attitudes ◽  
Financial Decisions

This study aims to analyze the effect of financial attitudes, financial behavior, and financial literacy on financial welfare. This research model uses convenience sampling technique through distributing questionnaires and collected as many as 163 respondents. The data was processed using the Structural Equation Modeling (SEM) method with smartPLS 3 software. The results indicate that financial attitudes have a positive influence on financial welfare. A good financial attitude can increase awareness to manage finances so as to improve financial well-being. Financial behavior has a positive influence on financial well-being. Good financial behavior encourages people to make long-term plans to cover unforeseen costs which can ultimately improve financial well-being. Financial literacy has a positive influence on financial well-being. Financial literacy not only affects the way individuals manage finances and solve financial problems, but also has implications for the individual's ability to make financial decisions related to investments, savings, and other financial risks. Thus financial prosperity can be achieved.

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