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.

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.

“When I get older, I wanna be an entrepreneur”: the impact of disability and dyslexia on entrepreneurial self-efficacy perception

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benjamin Powers ◽  
Séverine Le Loarne-Lemaire ◽  
Adnane Maalaoui ◽  
Sascha Kraus
Keyword(s):  
Self Efficacy ◽  
Negative Impact ◽  
Research Question ◽  
Entrepreneurial Intention ◽  
Economic Life ◽  
Entrepreneurial Intentions ◽  
Data Set ◽  
Content Type ◽  
The Usa ◽  
The Impact

PurposeThis article contributes to the literature on entrepreneurship for people with disabilities through a better understanding of the impact of entrepreneurial self-efficacy perceptions on entrepreneurial intentions in populations with lower levels of self-esteem. It investigates the entrepreneurial intention and self-efficacy of a population of students suffering from dyslexia, which is a learning disability.Design/methodology/approachThe paper is based on the study of a data set of 796 male and female adolescents in the USA, aged 13–19 years, both with and without dyslexia. The sample is a convenient one. The whole sample replied to the questionnaire on their self-efficacy perception and their intention to create, one day, their own venture. They also self-declare their dyslexia. Regressions have been conducted to answer the research question.FindingsResults show that having dyslexia has a negative impact on entrepreneurial self-efficacy perceptions. They also reveal that self-efficacy perceptions mediate the relationship between dyslexia and entrepreneurial intentions and their three antecedents (social norms, control behavior and perceived ability).Research limitations/implicationsThe sample is composed of students from private schools and might socially be biased.Practical implicationsOur findings relaunch the debate on the necessity to develop education programs that consider the personal-level variables of students, specifically the development of entrepreneurial self-efficacy among adolescents with disabilitiesSocial implicationsSuch findings should help to better understand students who are suffering from dyslexia and help them find a place in society and economic life.Originality/valueThis is so far the first study that has been conducted on dyslexic adolescents.

Readability of Korean-Language advertising disclosures moderates knowledge effects

2020 ◽  
Vol 38 (7) ◽  
pp. 1421-1440
Author(s):  
Taejun (David) Lee ◽  
Bruce A. Huhmann ◽  
TaiWoong Yun
Keyword(s):  
Service Providers ◽  
East Asian ◽  
Financial Education ◽  
Product Evaluation ◽  
Personal Finance ◽  
Financial Knowledge ◽  
Korean Language ◽  
Content Type ◽  
Decision Satisfaction ◽  
Financial Communications

PurposeGovernment policy mandates information disclosure in financial communications to protect consumer welfare. Unfortunately, low readability can hamper information disclosures’ meaningful benefits to financial decision making. Thus, this experiment tests the product evaluation and decision satisfaction of Korean consumers with less or more subjective knowledge and with or without personal finance education.Design/methodology/approachA between-subjects experiment examined responses of a nationally representative sample of 400 Korean consumers toward a Korean-language credit card advertisement.FindingsFinancial knowledge improves financial product evaluation and decision satisfaction. More readable disclosures improved evaluation and satisfaction among less knowledgeable consumers. Less readable disclosures did not. Consumers without financial education exhibited lower evaluations and decision satisfaction regardless of readability. More knowledgeable consumers and those with financial education performed equally well regardless of disclosure readability.Practical implicationsFinancial service providers seeking more accurate evaluations and better decision satisfaction among their customers should use easier-to-read disclosures when targeting consumers with less prior financial knowledge.Social implicationsOne-size-fits-all financial communications are unlikely to achieve public policy or consumer well-being goals. Government-mandated information should be complemented by augmenting financial knowledge and providing personal finance training.Originality/valueAlthough almost a quarter of the world’s population lives in East Asia, this is the first examination of readability in disclosures written in East Asian characters rather than a Western alphabet. Previous readability research on Asian-originating financial disclosures has been conducted on English-language texts. This study extends knowledge of readability effects to growing East Asian markets.

The impact of Zika on local businesses

2017 ◽  
Vol 26 (4) ◽  
pp. 452-457 ◽  
Author(s):  
Timothy F. Page ◽  
Mark L. Williams ◽  
Graziana Cassella ◽  
Jessica L. Adler ◽  
Benjamin C. Amick, III
Keyword(s):  
Local Governments ◽  
Design Methodology ◽  
Well Being ◽  
Content Type ◽  
Business Impact ◽  
Outbreak Areas ◽  
The Usa ◽  
State And Local ◽  
The Government ◽  
The Impact

Purpose In June 2016, the first cases of Zika were reported in the USA in the Wynwood neighborhood of Miami, Florida. The purpose of this paper is to present the results of a survey of Wynwood businesses about their perceptions of their financial well-being and the government and media’s responses to the Zika outbreak. Design/methodology/approach A survey instrument was developed, and 44 owners/managers of Wynwood businesses were interviewed by telephone or in-person during the period when the outbreak was being managed. Findings Businesses reported downturns in revenues, profits, and customer traffic following the Zika outbreak. Believing that the downturn would be temporary, few businesses laid off workers or reduced prices. All businesses reported dissatisfaction with the government’s response to the outbreak. Originality/value This is the first study to document the impact of Zika on businesses located in outbreak areas. The findings highlight the business impact of Zika outbreaks and suggest a need for improved communication and response from state and local governments to business concerns when future outbreaks occur.

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.

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.

Understanding influences on consumers’ dietary stress in healthy food buying

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Torben Hansen ◽  
Thyra Uth Thomsen
Keyword(s):  
Self Efficacy ◽  
Structural Equation ◽  
Negative Impact ◽  
Personal Values ◽  
Well Being ◽  
Healthy Food ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact

Purpose This study aims to investigate relationships among body mass index (BMI), socioeconomic variables, dietary self-efficacy and consumer dietary stress in healthy food buying and explore whether different levels of personal values influence these relationships. Design/methodology/approach The study is based on an online representative cross-sectional study with 380 food consumers. Structural equation modeling served to estimate direct, mediating and moderating effects between the studied constructs and variables. Findings Examples of moderating and moderated mediating effects include a negative impact of BMI on dietary stress for consumers with low levels of enjoyment value but no significant effect for consumers with high levels of enjoyment. BMI also had a greater negative impact on dietary self-efficacy when the level of respect/achievement was high (vs low), and respect/achievement positively moderated the mediating effect of BMI on dietary stress through dietary self-efficacy. Research limitations/implications This study focuses on analyzing healthy food buying in a particular cultural setting and may suffer from a lack of generalizability to other cultures. The results suggest that research should take into account personal values when investigating stress. Practical implications Food managers and health authorities can improve their ability to reduce dietary stress when addressing consumers by understanding the role of personal values in healthy food choice and the impact on mental well-being. Originality/value This study offers a novel, more fine-grained conceptual model of how consumers develop dietary stress when buying healthy food.

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 Financial Education Participation on Financial Knowledge and Efficacy: Evidence from the Canadian Financial Capability Survey

2017 ◽  
Author(s):  
David W. Rothwell ◽  
Shiyou Wu
Keyword(s):  
Self Efficacy ◽  
Age Groups ◽  
Financial Education ◽  
Cognitive Outcomes ◽  
Financial Knowledge ◽  
Future Research ◽  
Financial Capability ◽  
Education Participation ◽  
Nationally Representative ◽  
The Impact

Very little is known about how participation in financial education affects cognitive outcomes such as financial knowledge and self-efficacy. We used two waves of the nationally representative Canadian Financial Capability Survey along with propensity score matching to compare outcomes between persons who had taken a financial education course to those who had not. After matching and adjusting for demographic and economic factors, financial education participants exhibited significantly higher financial knowledge and financial self-efficacy scores. Post-estimation analysis showed that higher overall financial knowledge scores of participants were at least partially driven by higher scores of men. There was no difference in knowledge scores for women across all age groups. Financial education participants had higher efficacy scores for both genders and across age. Future research into the impact of financial education ought to consider cognitive dimensions in addition to strictly behavioral and financial outcomes.

scholarly journals The Effect of Personal Finance Education on The Financial Knowledge, Attitudes and Behaviour of University Students in Indonesia

2020 ◽  
Author(s):  
Irni Johan ◽  
Karen Rowlingson ◽  
Lindsey Appleyard
Keyword(s):  
Undergraduate Students ◽  
Work Experience ◽  
Financial Education ◽  
Personal Finance ◽  
Financial Knowledge ◽  
The United Kingdom ◽  
Personal Finance Education ◽  
Changing Attitudes ◽  
The Impact ◽  
Finance Education

AbstractThere is much debate about the impact of personal finance education on financial knowledge, attitudes and behaviour, particularly based on studies in the United Kingdom (UK) and United States of America (US). This paper makes a contribution to this debate, drawing on analysis of a survey of 521 undergraduate students at Bogor Agricultural University (IPB) in Indonesia in 2015. As part of that study, we measured the impact of a 14-week personal finance education course on financial knowledge, attitudes and behaviour. Our findings show that, when controlling for other factors, the personal finance course did, indeed, have a positive and statistically significant impact on financial knowledge. However, there was no statistically significant impact of the course on financial attitudes or behaviour. Our analysis also shows that family financial socialisation was an important driver of financial knowledge, attitudes and behaviour while other drivers of financial behaviour included income, work experience, year/field of study and discussing money with friends. We do not argue here that formal financial education is unimportant but that its role in changing attitudes and behaviour should be considered carefully if this is, indeed, its aim.

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