Income satisfaction among Millennials during COVID-19: the interplay among cognitive, noncognitive and financial factors

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Malvika Chhatwani
Keyword(s):  
Personality Traits ◽  
Financial Literacy ◽  
Financial Services ◽  
Positive Impact ◽  
Financial Education ◽  
High Income ◽  
Content Type ◽  
Noncognitive Factors ◽  
The Impact ◽  
Income Satisfaction

PurposeThe purpose of this study is to examine income satisfaction among Millennials during COVID-19. The authors explore the roles of cognitive factors: financial literacy and noncognitive factors: personality traits. Further, the authors also determine if financial status moderates the linkage between consumers' financial literacy and income satisfaction.Design/methodology/approachThe sample size of the study is 1754, and the data were collected from April to December 2020. The authors employ ordered logistic regression analysis in the study.FindingsThe authors find that financially literate Millennials report high-income satisfaction during the pandemic. However, the impact of the cognitive factor gets nullified after considering the role of noncognitive factors. Further, income moderates the linkage between financial literacy and income satisfaction such that financially literate consumers in the high-income category derived more income satisfaction.Practical implicationsConsumer financial education should become more pervasive, and the focus should be placed on high-income consumers as, without financial literacy, they may not report high-income satisfaction. Further, the marketers should also keep in mind that personality traits play an important role in consumers' overall satisfaction, so financial services and products should be designed considering consumer personality traits.Originality/valueThe primary contribution of the paper is to show the positive impact of cognitive and noncognitive factors on income satisfaction. Moreover, personality traits are stronger predictors of income satisfaction such that extroverted individuals have high satisfaction, whereas openness to experience and neuroticism is negatively related to income satisfaction among Millennials.

Are business students more financially literate? Evidence of differences in financial literacy amongst Portuguese college students

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Paulo Duarte ◽  
Susana Silva ◽  
Wilian Ramalho Feitosa ◽  
Rui Sebastião
Keyword(s):  
Higher Education ◽  
College Students ◽  
Financial Literacy ◽  
Positive Impact ◽  
Business Students ◽  
Financial Education ◽  
Educational Interventions ◽  
Online Questionnaire ◽  
Content Type ◽  
The Impact

Purpose Considering the importance of financial literacy (FL) in people’s lives the goal of this study aims to assess the level of FL of young Portuguese students, addressing the impact of the level of education on the FL of college students. Design/methodology/approach Data from a non-probabilistic sample of 185 students attending higher education bachelor’s and master’s degrees courses in Economics, Management and Marketing was collected between February 25 and March 23, 2019, using an online questionnaire. Descriptive and inferential statistics were computed using IBM SPSS 25 to analyze the data. Findings The findings show that the level of the degree (bachelor’s or master’s degree) and the academic background of the individual’s parents have a positive impact on FL. Moreover, among individuals with a high level of FL, gender and professional situation are additional predictors. Furthermore, the authors observed that the level of FL of Portuguese students attending higher education is overall low, especially in terms of their knowledge of the main financial concepts, which may call for public policies to be implemented so that to reduce this vulnerability. Research limitations/implications Among limitations is the limited sample collected, restricted to a particular target, Portuguese students attending business-related courses such as Economics, Management and Marketing, either studying for a master’s or bachelor’s degree. This issue restricts the generalization of the overall findings to other students studying different fields. Future studies can collect a random and representative sample. Practical implications This study test can be replicated to generate a diagnosis in any region or country, identifying how financially literate the region under analysis is. Also, this can be done to verify the evolution of FL after educational interventions. Social implications FL is an important competence. In fact, youngsters in the whole world have been suffering from a lack of financial knowledge (FK), and some characteristics of them can push them into indebtedness, and, even bankruptcy, such as a higher level of status consumption, the tendency to have an attitude of self-appraisal, to be self-centered, to seek instant gratification. This study helps to lead to a better understanding of this phenomenon. Originality/value Addressing college students attending different levels is an add-on to the existing body of literature. This paper contributes to study differences in FL between college and master students, enlightening and evaluating the role of scholarship maturity on financial education. Furthermore, some of the findings challenge the extant knowledge regarding the influence of professional experience, gender and age on the level of FK that students have. Finally, the current approach is innovative as it addresses FK, FL and numeracy in the same study.

scholarly journals Critical Analysis of Pensions Taking into Account Selected Aspects of Financial Literacy

2020 ◽  
Vol 6 (3) ◽  
pp. 29-35
Author(s):  
Alexander Zureck ◽  
Viktoria Daus ◽  
Philippe Krahnhof
Keyword(s):  
Financial Literacy ◽  
Critical Analysis ◽  
Positive Impact ◽  
Financial Education ◽  
Scientific Paper ◽  
Net Income ◽  
Academic Degree ◽  
Federal States ◽  
The Impact ◽  
Positive Effect

In this study we investigate the impact of government debt on the economic growth of General financial education, so-called financial literacy, which plays an essential role in private retirement provisions. A study by the Organization for Economic Co-operation and Development (OECD) in 2015 shows that financial literacy is not prevalent in Germany (OECD, 2015). The aim of this scientific paper is to underline the importance of financial literacy for private retirement provisions. Due to the falling level of pensions in Germany, investments in a private pension are essential. Therefore, a regression analysis is carried out. An academic goal is to analyze if gender, net income and academic degree have a positive impact on financial literacy. In summary, it can be said that there is a significant influence of gender. With regard to the significant imbalance in the gender distribution (three quarters are male), the data should be expanded in the future. While net income as well as academic degree both have positive effect, correlation was only shown for net income. An ideal level of private retirement provisions was not determined in the empirical study. Based on these empirical insights, it is recommended that the federal states should invest in the financial education of their citizens to counteract poverty in age.

Formal credit usage and gender income gap: the case of farmers in Cambodia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vichet Sam
Keyword(s):  
Gender Equity ◽  
Gender Gap ◽  
Financial Literacy ◽  
Financial Services ◽  
Causal Effect ◽  
Financial Education ◽  
Least Square ◽  
Content Type ◽  
Income Gap ◽  
Female Farmers

PurposeThe purpose of this article is to analyze the factors that drive gender income differences among farmers in Cambodia with a focus on the role of formal credit.Design/methodology/approachTo decompose the gender income gap, this article employs the Blinder–Oaxaca decomposition technique, while a two-stage least square (2SLS) regression is also employed to check the causal effect of formal credit usage on earnings.FindingsResults show a positive effect of formal credit on farmers' earnings and the gender gap in formal credit usage is not found. Despite that, formal credit still contributes to the gender earnings gap with a higher return to credit usage for male farmers. This can be due to the difference in the level of education, financial literacy and other dimensions in favor of men, allowing them to use credit more effectively than women.Research limitations/implicationsThe findings underline the importance of boosting general and financial education among female farmers in Cambodia. Meanwhile, the expansion of access to financial services for women must be accompanied by policies addressing gender gaps in other economic and social dimensions, so that women are able to reap the potential benefit of using those financial services.Originality/valueLack of research focuses on the link between the gender gap in the use of financial services and the gender income gap. The significant gender gap in returns to formal credit usage found in this study demonstrates that the benefits of gender equity in access to and usage of financial services also depend on the effects of other indicators that policymakers must be aware of.

Customer perception of adoption and use of digital financial services and mobile money services in Uganda

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tapiwanashe James Museba ◽  
Edmore Ranganai ◽  
Gianfranco Gianfrate
Keyword(s):  
Qualitative Research ◽  
Financial Services ◽  
Social Impact ◽  
Positive Impact ◽  
Financial Inclusion ◽  
Bottom Of The Pyramid ◽  
Content Type ◽  
Customer Perception ◽  
Mobile Money ◽  
The Impact

Purpose This paper aims to investigate the impact of fintech, mobile money and digital financial services in Uganda and factors impacting adoption of the services. The study will also determine their social impact through financial inclusion in the Ugandan market. Design/methodology/approach This study covers the adoption and use of fintech, mobile money and digital financial services in Uganda. A case study approach was used through a survey questionnaire for 400 randomly selected participants within the Kampala region. Questionnaire was designed to measure customer perception of digital financial services and adoption including mobile money and agency banking. Findings The adoption of mobile money services is driven by mobile devices penetration and the need for access to financial products and services for the unbanked. Results support CGAP (2013) that observed that mobile money adoption was based on two key variables: social network and social interactions of the customer and a segment of customers who can be described as mobile technology leaders (early adopters). There has been positive impact on person to person transfers, grocery payments and mobile money providers have to continue to simplify the access to financial services and bring convenience to the bottom of the pyramid. And mobile money positively impacts sustainable developmental goals covering Gender Equality (SDG5), SDG 8 – Decent Work and Economic Growth; expanding financial inclusion through mobile money and SDG 10 – Reduce Inequalities. Research limitations/implications This study has limitations commonly prevalent with qualitative research, including the small size limited to Kampala and challenges of making generalisations beyond this context. Practical implications The paper might serve as a valuable source of information for government and fintech companies in developing the digital financial services ecosystem as well as for students and academics for further case studies in this area. Originality/value This paper serves as one of the first qualitative research papers concerning mobile money and digital financial services adoption, solely focused on Uganda. Its value is in its showcasing of the importance of mobile money among customers in emerging markets.

scholarly journals Mentoring in international assignments: a personality traits perspective

2017 ◽  
Vol 39 (7) ◽  
pp. 1100-1130 ◽  
Author(s):  
Tassilo Schuster ◽  
Judith Ambrosius ◽  
Benjamin Bader
Keyword(s):  
Personality Traits ◽  
Multinational Corporations ◽  
Host Country ◽  
Positive Impact ◽  
Well Being ◽  
Organizational Studies ◽  
Psychological Well Being ◽  
Content Type ◽  
Positive Effects ◽  
The Impact

Purpose The purpose of this paper is to analyze the impact of personality and mentorship on expatriates’ psychological well-being. The authors argue that certain personality traits (extraversion, agreeableness, conscientiousness, emotional stability, and openness to experience) have positive effects on expatriates’ psychological well-being and that these personality traits enable them to derive a greater benefit from mentorship. By doing so, this study identifies for which personality traits which type of mentoring (home or host country mentor) is most beneficial. Design/methodology/approach Based on socioanalytic theory, the authors develop theory-driven hypotheses and test them against data of 334 expatriates. Findings The study shows that several personality traits as well as home country mentorship have a significant positive impact on psychological well-being, whereas host country mentorship shows no significant positive effects. Moreover, the study indicates that home and host country mentorship partially moderates the relationship between personality traits and psychological well-being. Originality/value Since the authors derive important implications for the selection process of expatriates as well as for the implementation of mentoring in multinational corporations, this study is of value for researchers and practitioners in the areas of human resource management and organizational studies.

Entrepreneurial intentions: the role of family factors, personality traits and self-efficacy

2017 ◽  
Vol 13 (4) ◽  
pp. 303-317 ◽  
Author(s):  
Muhammad Farrukh ◽  
Azeem Ahmad Khan ◽  
Muhammad Shahid Khan ◽  
Sara Ravan Ramzani ◽  
Bakare Soladoye Akeem Soladoye
Keyword(s):  
Personality Traits ◽  
Self Efficacy ◽  
Structural Equation ◽  
Positive Impact ◽  
Family Background ◽  
Business Students ◽  
Entrepreneurial Intentions ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of family background, big five personality traits and self-efficacy on entrepreneurial intentions (EIs) of business students in private universities in Pakistan. Design/methodology/approach Data were collected with the help of structured questionnaires, 500 questionnaires were distributed among the students and 306 useable questionnaires were received and analyzed. Structural equation modeling was used to investigate the relationship among the study variables. SmartPLS was utilized to run the analysis. Findings The findings revealed a strong relationship between the exogenous and endogenous variables. The variance accounted by the independent variables was 74.3 percent in the EIs of the students. Family background was found to have a positive impact on the EIs of students. The findings also showed a positive relationship between self-efficacy and EIs. Consciousness, extroversion and openness to experience are positively linked with EIs while neuroticism and agreeableness did not show any relationship. Originality/value The study’s findings attract the attention of the academicians to take note of the factors examined while training the students the art of entrepreneurship. This is because this study has revealed that if these factors are not present the intention of the students to start a business venture may prove to be weak. Entrepreneurial activities are one of the biggest ways to reduce unemployment, thus, it is suggested that academicians should develop psychological plans and training to motivate the students to convert their intentions into actions.

Evaluating the effects of sociodemographic characteristics and financial education on saving behavior

2020 ◽  
Vol 40 (11/12) ◽  
pp. 1423-1438 ◽  
Author(s):  
Mouna Amari ◽  
Bassem Salhi ◽  
Anis Jarboui
Keyword(s):  
Risk Aversion ◽  
Financial Literacy ◽  
Financial Education ◽  
Well Being ◽  
Mediating Effect ◽  
Content Type ◽  
Saving Behavior ◽  
Literacy Level ◽  
Education Training ◽  
The Impact

PurposeThe objective of this study is to explore the effects of financial literacy level and risk aversion on the saving behavior. The literature review showed dialectical results. Therefore, this study attempts to clarify the debatable of these results by studying the mediating effect of risk aversion on the relationships between demographics determinants and saving behavior moderated by the effect of the financial literacy level.Design/methodology/approachThe data were collected from the University of Normandy; the study sample included 516 respondents representing different segments of French households. The structural equation analysis was utilized to control the impact of financial literacy as a moderate variable and the risk aversion as a mediator variable among the link between sociodemographic factors and saving behavior.FindingsThe results demonstrated that there were significant effects of demographics factors on risk aversion. Moreover, financial literacy moderates the relationships between risk aversion and saving behavior.Research limitations/implicationsThe major limitation of this research is the small size of the study sample. This paper is restricted to French households. Future financial education training should cover the European context.Practical implicationsThis study provides further evidence that financial literacy should be considered an important factor for improving household well-being. The paper encourages governments and financial institutions to create a national financial education program.Originality/valueThis paper is the first attempt to employ a sample of low-income households after financial education training in the French context.

Is financial education an effective means to improve financial literacy? Evidence from rural China

2019 ◽  
Vol 80 (3) ◽  
pp. 305-320
Author(s):  
Huanhuan ZHang ◽  
Xueping Xiong
Keyword(s):  
Financial Literacy ◽  
Financial Education ◽  
Education Level ◽  
Evaluation Index System ◽  
Risk Level ◽  
Rural Residents ◽  
Content Type ◽  
Self Selection ◽  
Literacy Level ◽  
The Impact

Purpose Using survey data from Shandong, Henan and Guizhou provinces of China, the purpose of this paper is to accurately measure the impact of rural residents’ financial education on financial literacy. Design/methodology/approach This paper chooses one province from the Eastern, Central and Western Regions of China, namely, Shandong, Henan and Guizhou, respectively, and 1,565 samples are obtained through a questionnaire survey. First, the paper constructs a financial literacy assessment framework and, then, scores the financial literacy of the respondents. Second, using ordinary least squares, feasible generalized least squares method and forward search method, the paper estimates the impact factors of financial literacy level. To avoid sample selection errors and endogeneity problems, the authors divide the respondents into treatment group (participated in financial education) and control group (non-participating in financial education) and, then, adopt propensity score matching (PSM) to analyze the impact of rural residents’ financial education on financial literacy. Findings The results show that education level and risk level have significant impact on rural residents’ participation in financial education, and some unobservable abilities and qualities also affect their participation. Therefore, the process of rural residents’ participation in financial education exists, which gives rise to self-selection and endogeneity problems; financial education is promoting rural residents’ financial literacy, but the effect of promotion becomes smaller after taking into account sample self-selection and endogenous problems. Rural residents of female, higher age, single, higher education level, higher parental education level, agricultural type, higher family annual per capita income and lower risk level show stronger effects on their financial literacy level, if they participate in financial education. Research limitations/implications The survey sample was drawn from three provinces randomly but the site selection was not random. The implication is in rural China, financial education has positive effect on residents’ financial literacy level but considering the sample self- selection and endogenous nature, its impact becomes smaller. Practical implications The government should encourage rural residents to participate fully in financial education activities, especially those with a low educational level, low risk preference and mainly engaged in agricultural production. Originality/value The effect of financial education on financial literacy has not reached a consistent conclusion, and there is fewer quantitative discussion about this issue. The originality of this paper is based on the Organization for Economic Co-operation and Development evaluation index system; this paper constructs the evaluation index system of rural residents’ financial literacy in China and uses the PSM method to accurately measure the effect of financial education on financial literacy.

scholarly journals The Role of Knowledge Brokers in Improving Financial Literacy

2021 ◽  
pp. 75-103
Author(s):  
Chaouki Mouelhi ◽  
Hajer Hammami
Keyword(s):  
Structural Equation Modeling ◽  
Financial Literacy ◽  
Structural Equation ◽  
Positive Impact ◽  
Financial Education ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Knowledge Brokers ◽  
The Impact

Several governments around the world have tried strategies based primarily on financial education programs to improve the financial literacy of their citizens. In this study, we discuss a new strategy that involves using knowledge transfer activities carried out by intermediary agents, called financial knowledge brokers, to achieve significant improvement in financial literacy. Thus, the aim of this paper is to test the impact of the five activities of financial knowledge brokers (i.e., financial knowledge acquisition, financial knowledge integration, financial knowledge adaptation, financial knowledge dissemination, and creation of links) on financial literacy. For this, we built a database from a questionnaire carried out to nearly 103 financial advisers during the period June 2015 to June 2017. Overall, the results of Structural equation Modeling (SEM) technique showed that the financial knowledge brokerage activities (four of the five activities) have a positive impact on improving financial literacy as well as on its four dimensions, namely financial attitude, financial behavior, basic financial knowledge, and advanced financial knowledge. JEL classification numbers: D80, F65, G20, I20. Keywords: Financial literacy, Knowledge brokers, Structural equation modeling.

SFC’s new guidance note redefines cooperation in disciplinary, civil court and market misconduct tribunal proceedings

2018 ◽  
Vol 19 (3) ◽  
pp. 45-47
Author(s):  
Cynthia Tang ◽  
Bryan Ng ◽  
Gloria Ng
Keyword(s):  
Financial Services ◽  
Positive Impact ◽  
Early Stage ◽  
Active Role ◽  
Current Approach ◽  
Senior Management ◽  
Content Type ◽  
Civil Court ◽  
Guidance Note ◽  
The Impact

Purpose The purpose of this paper is to discuss the new “Guidance Note on Cooperation with the SFC” released by the Hong Kong Securities and Futures Commission (“SFC”) on 12 December 2017, which updates the SFC’s previous guidance note issued in 2006. Design/methodology/approach This paper explains key features to the guidance note, the SFC’s current approach in investigations and enforcement and the impact on regulated parties and senior management. In particular, the authors discuss what cooperation means in disciplinary, civil court and market misconduct tribunal proceedings. Findings The new guidance note confirms that the SFC will play an increasingly active role in investigations and that taking proactive steps at an early stage, including involving senior management, will have a positive impact on the outcome of the investigation. Originality/value Commentary and practical guidance from experienced securities enforcement and financial services regulatory enforcement lawyers.

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