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.

Balancing benefits: evidence-based guidelines for school-banking programmes

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Michaela Jackson ◽  
Lukas Parker ◽  
Linda Brennan ◽  
Jenny Robinson
Keyword(s):  
Financial Literacy ◽  
Financial Education ◽  
Well Being ◽  
Evidence Based ◽  
Negative Consequences ◽  
Quality Appraisal ◽  
Content Type ◽  
Financial Outcomes ◽  
Evidence Based Guidelines ◽  
The Impact

PurposeAfter comprehensive review of discourse surrounding school-banking programmes and marketing to children, the authors develop evidence-based guidelines for such programmes. Guidance for organisations is provided to ensure they understand these products' impact on children and other vulnerable consumers.Design/methodology/approachA comprehensive, systematised review of literature related to school-banking programmes was undertaken during 2019, 22 Boolean searches were collated, appraised using a five-step quality appraisal framework and analysed against selection criteria. To accommodate literature across disciplines, quality appraisal combined two existing hierarchies of evidence and peer-review status.FindingsSearches returned over 375,000 articles; 149 were relevant and met quality thresholds. Evidence supports the role of financial education in producing positive financial outcomes. However, education should involve communities and families to enhance consumer socialisation and limit negative consequences. From this, guidelines are presented accounting for students' and parents' ability to understand marketing messages and the impact of in-school marketing on students – including on longer-term perceptions, attitudes and behaviours.Practical implicationsGuidelines are to assist financial institutions, policymakers and schools balance the benefits of financial literacy and education with potentially negative consequences of school-banking programmes. Classifying programmes as marketing rather than CSR also benefits organisations contributing corporate resources and voluntarily engaging practices underpinned by commitment to community well-being.Originality/valueAvoiding moral panic, the authors instead outline evidence-based guidelines on school-banking programmes. The quality appraisal process used in this review offers a new approach to synthesising inter-disciplinary evidence.

scholarly journals The Impact of Behavioral Finance Factors and the Mediating Effect of Investment Behavior on Individual’s Financial Well-being: Empirical Evidence from Pakistan

2021 ◽  
Vol 7 (2) ◽  
Author(s):  
Muhammad Arsalan Ali ◽  
Khalil ur Rehman ◽  
Adnan Maqbool ◽  
Shahid Hussain
Keyword(s):  
Risk Perception ◽  
Financial Literacy ◽  
Financial Education ◽  
Well Being ◽  
Risk Tolerance ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Future Research ◽  
Investment Behavior ◽  
The Impact

Individual financial well-being is recognized as a major concern for the general welfare and social welfare of society. In this context, it is very important to understand how people can ensure good financial well-being. This article aims to explore the effects of financial literacy, risk tolerance, and risk perception on the financial well-being of individuals, with an emphasis on behavioral investment interventions. Quantitative research methods are used to measure the factors that affect financial well-being. A questionnaire was developed on Google Forms to collect data from people who have bank accounts. The sample of 318 Pakistanis supports the proposed hypothesis. Structural equation modeling (SEM) was used to evaluate the results. The results show that risk tolerance, risk perception and financial literacy influence people's investment behavior and ultimately their financial well-being. Individual financial behavior needs to be improved. In this context, there is an urgent need for financial education programs in the education system and centers of employment, behavioral development and financial literacy. Future research on this topic could benefit from collecting longitudinal data which could provide more relevant information for Pakistanis seeking to achieve better financial well-being. All measures used are reported separately and individually, measuring the risk that respondents will misinterpret questions and even interpret their behavior.

Subjective financial knowledge, prudent behaviour and income

2019 ◽  
Vol 37 (4) ◽  
pp. 934-950 ◽  
Author(s):  
Leonore Riitsalu ◽  
Rein Murakas
Keyword(s):  
Financial Literacy ◽  
Financial Education ◽  
Well Being ◽  
Financial Knowledge ◽  
Future Research ◽  
Objective Knowledge ◽  
Content Type ◽  
Subjective Knowledge ◽  
Subjective Financial Knowledge ◽  
Behaviour Score

Purpose The purpose of this paper is to study how subjective and objective knowledge of finance, behaviour in managing personal finances and socio-economic status affect financial well-being. Design/methodology/approach The financial well-being score is constructed in quantitative financial literacy survey data from Estonia as the arithmetic mean of four statements on a five-point scale. Four hypotheses are tested in multiple regression analysis. Findings Subjective knowledge has a stronger relation with financial well-being than objective knowledge. Financial behaviour score and income level correlate with financial well-being. Research limitations/implications The paper contributes to literature on financial literacy, subjective financial knowledge and financial well-being. In future research, psychological factors and future orientated financial well-being should be included, and their relationship to subjective well-being could be analysed further. Practical implications The results highlight the importance of subjective knowledge and sound behaviour for improving financial well-being. Providers of financial services should address these more in the design of their services and communication. Social implications Policymakers developing national strategies for financial education need to address subjective financial knowledge for increasing financial well-being in society. Originality/value Knowledge, behaviour and subjective knowledge have not been used simultaneously in the analysis of financial well-being in Europe before.

Investigating the financial overconfidence of student-athletes

2019 ◽  
Vol 9 (4) ◽  
pp. 381-398
Author(s):  
Megan Ann McCoy ◽  
Kenneth J. White ◽  
Kim Love
Keyword(s):  
Self Efficacy ◽  
Student Athletes ◽  
Financial Stress ◽  
Financial Education ◽  
Well Being ◽  
Personal Finance ◽  
Financial Knowledge ◽  
Content Type ◽  
The Usa ◽  
The Impact

Purpose There is a paucity of empirical research that explores the financial well-being of collegiate student-athletes. The purpose of this paper is to investigate the key aspects of financial well-being (e.g. financial knowledge, financial self-efficacy and finance-related stress levels) of varsity athletes at US colleges and universities. Design/methodology/approach The authors used data from the National Student Financial Wellness Study. The data were analyzed using general linear regression models. Findings The findings suggest student-athletes have lower financial knowledge than students who are non-athletes. Despite their lower levels of financial knowledge, these student-athletes report higher levels of financial self-efficacy. Furthermore, even when controlling for scholarship funding, student-athletes reported lower levels of financial stress than their counterparts. One could interpret this as student-athletes having a false sense of confidence in their money management behaviors. This overconfidence can impact many areas of their overall financial well-being. Alternatively, non-athletes may not be as financially confident as they should be. Research limitations/implications This study could be replicated with stronger measures (e.g. Financial Self-Efficacy Scale), with the inclusion of subjective financial knowledge measures, comparing the impact of demographic variables. As, most financial constructs have gender differences (Farrell et al., 2016) and race differences (Amatucci and Crawley, 2011) and depend upon college major (Fosnacht and Calderone, 2017). Another limitation of this study is the small percentage of student-athletes, a common problem with research in this area. Further research is also needed to unpack the finding that self-efficacy decreases at higher levels of financial knowledge. Practical implications It is evident that college students (athletes/non-athletes) need financial education. For universities and college coaches, this study could be used as a rationale for providing financial education for their athletes. The addition of financial courses could be used as a recruiting tool for collegiate coaches and benefit the university. Requiring financial education could also benefit universities long term as it may potentially increase the donor possibilities by alumni. As a final note, it is important that financial courses figure out ways to improve financial self-efficacy alongside financial knowledge, as findings suggest both are integral to decreasing financial stress. Social implications Less than 4 percent of universities in the USA require students to take a personal finance course (Bledsoe et al., 2016). If more universities included personal finance as a graduation requirement and did more to engage student-athletes (and non-athletes) in financial planning, then the average level of financial knowledge would likely improve on campuses across the USA. In addition, increasing young adults financial self-efficacy could improve financial stress which is linked to mental health and physical health. Originality/value This study provides the first empirical look into the financial well-being of collegiate student-athletes across the USA. Although there are many benefits to participation in college sports, student-athletes face additional time pressures and a predisposition to clustering around certain majors. Findings suggest that collegiate athletes need additional support around their financial literacy and non-athletes may need support developing financial self-efficacy. These two findings should be used by academic institutions and athletic departments to determine how to encourage financial health in their student-athletes and general student body.

Promoting safety participation through diversity and inclusion climates

2016 ◽  
Vol 9 (3) ◽  
pp. 308-327 ◽  
Author(s):  
Anna Paolillo ◽  
Silvia A. Silva ◽  
Margherita Pasini
Keyword(s):  
Structural Equation ◽  
Well Being ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Main Concern ◽  
Diversity Climate ◽  
Content Type ◽  
Diversity And Inclusion ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the impact of diversity climate and inclusion climate on safety participation behaviors through the mediating effect of the motivation to actively promote safety at work. Design/methodology/approach Participants were 491 workers employed in four Italian metal-mechanical companies. They completed a paper questionnaire containing measures of psychological diversity climate, psychological inclusion climate, safety motivation participation and safety participation behaviors. Data were analyzed with structural equation modeling. Findings Results showed that safety participation motivation fully mediates the relationship between diversity climate and safety participation behaviors, whereas it partially mediates the relationship between climate for inclusion and safety participation behaviors. Practical implications The present findings can help managers to motivate employees in pursuing safety goals independently of compensation or obligation by creating an organization in which the main concern is caring for each other’s well-being. Originality/value This is the first study which has empirically tested the relationships between diversity climate, inclusion climate and safety behaviors. It has extended previous research which simply tested the effects of objective types of diversity on safety performance.

Financial education and financial satisfaction

2017 ◽  
Vol 35 (5) ◽  
pp. 805-817 ◽  
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.

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.

HRM reforms and job-related well-being of academics

2019 ◽  
Vol 49 (2) ◽  
pp. 597-619
Author(s):  
Jie Xia ◽  
Mingqiong Mike Zhang ◽  
Jiuhua Cherrie Zhu ◽  
Di Fan ◽  
Ramanie Samaratunge
Keyword(s):  
Structural Equation ◽  
Time Lag ◽  
Well Being ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Chinese Universities ◽  
Content Type ◽  
Analytical Technique ◽  
Hrm Practices ◽  
The Impact

Purpose The purpose of this paper is to examine the influence of human resource management (HRM) reforms on job-related well-being of academics in Chinese universities. It also tests the mediating effect of work intensification (WI) and affective commitment (AC), and the moderating effect of perceived organizational justice (OJ) on the HRM‒well-being relationship to understand the influence mechanisms and boundary conditions. Design/methodology/approach A questionnaire survey was conducted in 25 Chinese universities, obtaining 638 usable questionnaires. Structural equation modeling (SEM) was used as the analytical technique to examine the model fit and test hypotheses. Findings The findings reveal that the relationship of HRM and well-being is neither direct nor unconditional, and a win‒win scenario for both management and employee well-being is possible when organizations pursue HRM innovations. Research limitations/implications The limitations of this study are that data were collected at once and at a defined time, with no time lag being involved. In addition, all variables were self-reported. Practical implications Commitment-oriented HRM practices can create a win‒win scenario; when control-oriented HRM practices are necessary, managers should ensure OJ to offset their negative influence on employees. Originality/value This study is among the first to examine the impact of HRM on employee well-being in the context of Chinese higher education, contributing to the limited studies on HRM in Chinese public sector and the on-going debate on the nature of HRM in China.

Personal factors as antecedents of perceived financial well-being: evidence from Brazil

2019 ◽  
Vol 37 (4) ◽  
pp. 1004-1024 ◽  
Author(s):  
Mateus Canniatti Ponchio ◽  
Rafaela Almeida Cordeiro ◽  
Virginia Nicolau Gonçalves
Keyword(s):  
Financial Education ◽  
Well Being ◽  
Two Dimensions ◽  
Future Research ◽  
Money Management ◽  
Financial Security ◽  
Personal Factors ◽  
Content Type ◽  
Personal Saving ◽  
The Impact

Purpose The purpose of this paper is to explore the impact of consumer spending self-control (CSSC), personal saving orientation (PSO), materialism, financial knowledge (FK) and time perspective (TP) on Brazilian consumers’ perceived financial well-being. Design/methodology/approach A conceptual framework is provided to support the research hypotheses. A survey with 1,027 respondents allowed the research hypotheses to be tested by means of regression-based models. Findings The findings show that the two dimensions of financial well-being – current money management stress and future financial security – are predicted by CSSC, materialism and TP; PSO also predicts future financial security. TP moderates the effect of materialism on current money management stress, and CSSC mediates this relationship. Research limitations/implications The role of FK in predicting financial well-being is weakened in the presence of the psychological variables investigated, which has important implications for financial education efforts. The use of survey data alone limits the research findings, as the advocated causal relationships are based solely on theory; gathering experimental data to further support the findings is a possibility for future research. Practical implications Banks and other financial institutions can create tools to stimulate control of their customers’ day-to-day spending and try to show assertive projections to evidence the impact of their present actions on their financial future, enhancing personal awareness and promoting overall well-being. Originality/value The authors advance knowledge on the antecedents of financial well-being and offer two explanations involving moderating and mediating relationships that enhance the understanding of the individual differences that shape current money management stress.

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