Antecedents of the Youngster’s Awareness About Financial Literacy: A Structure Equation Modelling Approach

2021 ◽  
pp. 097226292199656
Author(s):  
Pallavi Dogra ◽  
Arun Kaushal ◽  
Rishi Raj Sharma
Keyword(s):  
Factor Analysis ◽  
Financial Literacy ◽  
Structural Equation ◽  
Demographic Variables ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Primary Data ◽  
Equation Modeling ◽  
Financial Products ◽  
The Impact

Financial literacy has been identified as an important functional area that attains a special concern in the Indian government policies and plans specially designed for the financial market. SEBI has issued various guidelines and awareness programs towards investment financial products, digital payment systems, consumer protection and so on. Therefore, the purpose of the present article is to analyze the level of financial literacy among youngsters in India. The study examined the relationship between the antecedents of financial literacy, that is, financial attitude, financial knowledge and financial behavior. The theoretical purposed model was tested with the help of primary data that was collected with the help of the self-structured questionnaire. A total of 647 responses were obtained from the respondents belonging to the holy city Mathura, Uttar Pradesh, India. To identify the financial literacy antecedents and their inter-relationship, exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and structural equation modeling were applied to the collected data. The findings indicated that in the case of the Indian population, financial attitude and financial behavior were significantly associated with financial literacy. The moderation analysis reveals that males are more particular about financial knowledge and financial behavior in comparison to females. Respondents belonging to the age group of 26–30 years have better financial knowledge. Respondents who have income more than ₹800 thousand and below two years have more financial knowledge. This article contributes to the theoretical body of knowledge by providing insights about the interesting topic of financial literacy by identifying its antecedents. The study also highlights the impact of the demographic variables as moderators on the antecedents of financial literacy. The outcomes of the study are vital for the government in the designing of public policies. The findings are helpful for the educational program designers for the outlining of the programs and syllabus for the subjects taught in the schools and colleges. The findings are useful for the bank managers to understand the psychological behavior as well as demographic variables for the effective marketing and communication of their financial products.

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.

scholarly journals Financial Literacy: Pengetahuan, Kepercayaan Diri dan Perilaku Keuangan Mahasiswa Akuntansi

Owner ◽  
2019 ◽  
Vol 3 (2) ◽  
pp. 117
Author(s):  
Gilang Puspita ◽  
Isnalita Isnalita
Keyword(s):  
Financial Literacy ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Primary Data ◽  
Equation Modeling ◽  
Self Confidence ◽  
Relationship Of

The aims of this research is to examine the effect of financial knowledge and self confidence on  financial behavior, the effect of self confidence on  financial behavior, and the role of mediating self confidence on the relationship of financial knowledge to financial behavior. This research processed primary data using a questionnaire distributed to the student of Airlangga University. The research sample was selected using the Slovin formula at the  level of confidence 5%. The sample analyzed were 328 questionnaire. The analytical tool used is Structural Equation Modeling with the Partial Least Square approach. The results showed that financial knowledge had an effect on self-confidence, self-confidence had an effect on financial behavior, self-confidence mediated the effect of financial knowledge on financial behavior. In addition, financial knowledge does not affect financial behavior.

scholarly journals SME Managers and Financial Literacy; Does Financial Literacy Really Matter?

2018 ◽  
Vol 8 (3) ◽  
pp. 353
Author(s):  
Shamim Akhtar ◽  
Yanping Liu
Keyword(s):  
Financial Literacy ◽  
Structural Equation ◽  
Service Providers ◽  
Business Owners ◽  
Financial Knowledge ◽  
Equation Modeling ◽  
Financial Awareness ◽  
Performance Results ◽  
The Impact ◽  
Firm Owners

The purpose of this study is to examine the level of small and medium (SMEs) business owners-managers’ financial literacy and its effect on the firm’s performance. The study applied random sample and structural equation modeling approaches in measuring the impact of SME firm owners-managers’ level of financial literacy in the context of Pakistan. The findings reveal the complete influence of firm owners- manager’s financial attitude, financial knowledge and financial awareness in adapting financial literacy to upsurge in firm performance. Results indicate that financial awareness and financial knowledge of SME managers are evidently not a precondition to SMEs performance, yet entrepreneur tactics in making decisions and association to financial attitude have a contrast with financial literacy. Findings would be valuable for the SME owners, investors and service providers.

scholarly journals THE ROLE OF WOMEN EMPOWERMENT TOWARDS HOUSEHOLD POVERTY REDUCTION: EVIDENCE FROM PUNJAB, PAKISTAN

2021 ◽  
Vol 9 (3) ◽  
pp. 384-397
Author(s):  
Ambreen Sarwar ◽  
Mumtaz Anwar Chaudhry
Keyword(s):  
Factor Analysis ◽  
Structural Equation ◽  
Poverty Reduction ◽  
Primary Data ◽  
Equation Modeling ◽  
Published Data ◽  
Women Empowerment ◽  
The Past ◽  
Household Poverty ◽  
The Impact

Purpose of the study: This study intends to examine the impact of various dimensions of women empowerment on multiple constituents of household poverty in the three cities (Lahore, Multan and, Rawalpindi) of province Punjab, Pakistan. Methodology: The primary data was gathered from a sample of 2400 married and employed females belonging to the three cities of Punjab, Pakistan. For analysis, the study develops its own all-embracing Women Empowerment and Household Poverty variables using exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) and examines the relationship between the empowerment of women and household poverty using structural equation modeling (SEM). Main Findings: The results show that women empowerment positively and significantly contributes towards household poverty reduction. Applications of this study: Since poverty is one of the greatest challenges that Pakistan is facing today, the need to change poor standards of living and inspiring women to contribute effectively to society through their active participation in the development process is the dire need of time. The results of the study suggest that in addition to targeting poverty directly, policies should be devised that eradicate poverty through the empowerment of women. Novelty/Originality of this study: The majority of the past studies have limited generalizability because they use already available surveys/published data, having limited dimensions/indicators of women empowerment and household poverty. Moreover, the past studies that have examined the phenomenon of women empowerment ignore its psychological dimensions. Therefore, because of minimal comprehensive investigation, the examination of the effect of the empowerment of women on household poverty remains a topic of interest for the researchers.

scholarly journals Faktor-faktor yang Mempengaruhi Financial Behavior

2021 ◽  
Vol 5 (5) ◽  
pp. 494
Author(s):  
Paula Elicia ◽  
Indra Widjaja
Keyword(s):  
Structural Equation Modeling ◽  
Structural Equation ◽  
Parental Influence ◽  
Total Sample ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Convenience Sampling ◽  
Processing Techniques ◽  
The Impact

There are many factors that can affect individual life sustainability, both in short term and long term. One of the factors is decision to manage finance. The ability to manage the finance is not only to get sufficient income, but also the ability to manage finances more wisely and appropriately. The purpose of this research is to analyze the impact of Parental Influence, Financial Knowledge, Financial Attitude and Income on Financial Behavior. The population of this research is the clients of Bank BCA in Jakarta; who have earned income and have graduated with at least an S1 degree. The total sample is 298 respondents, were selected using convenience sampling method and data processing techniques used are taken from Structural Equation Modeling (SEM), that is supported by SmartPLS.3.3.2 program. The result of this study reveals that Parental Influence and Income has no significance influence on Financial Behavior; while Financial Knowledge and Financial Attitude do have a significance influence on Financial Behavior. Terdapat banyak faktor yang dapat mempengaruhi kelangsungan hidup individu, baik dalam jangka pendek maupun jangka panjang. Salah satu faktor diantaranya adalah keputusan dalam mengatur keuangan. Kemampuan dalam mengatur keuangan bukan hanya pada kemampuan untuk mendapatkan pendapatan yang cukup, melainkan juga kemampuan untuk mengelola keuangan secara bijak dan tepat. Tujuan penelitian ini adalah untuk menganalisa pengaruh Parental Influence, Financial Knowledge, Financial Attitude dan Income terhadap Financial Behavior. Populasi penelitian ini adalah nasabah dari Bank BCA di Jakarta yang sudah mempunyai penghasilan dan mempunyai tingkat pendidikan minimal S1. Sampel yang mencapai jumlah total 298 responden dipilih menggunakan metode convenience sampling. Teknik pengolahan data menggunakan Structural Equation Modeling (SEM) yang didukung oleh program SmartPLS.3.3.2. Hasil penelitian ini mengungkapkan bahwa Parental Influence dan Income tidak berpengaruh terhadap Financial Behavior; sedangkan Financial Knowledge dan Financial Attitude berpengaruh terhadap Financial Behavior. 

scholarly journals Factors Affecting Financial Literacy and Financial Behaviour of Investors in Pakistan

2020 ◽  
Vol 1 (3) ◽  
pp. 80-90
Author(s):  
Muhammad Junaid Khan ◽  
Dr. Faheem Aslam ◽  
Syed Nisar-Ul-Mulk
Keyword(s):  
Cognitive Ability ◽  
Financial Literacy ◽  
Self Efficacy ◽  
Structural Equation ◽  
Research Study ◽  
Positive Impact ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Financial Socialization ◽  
The Impact

The main purpose of our study is to find out the impact of financial socialization, cognitive ability, and self-efficacy on financial literacy and financial behavior of investors in Pakistan. This study has used a non-probability convenience-based sampling technique for collecting the data. A total of 429 individual investors were analyzed with the help of structural equation modeling (SEM) through Smart PLS. The results of our research study suggested that the participation of female investors as compare to male investors is very low. The main results of the study showed that cognitive ability and self-efficacy have a significantly positive impact on financial literacy, but an insignificant impact of these two variables on financial behavior was found. Findings also suggested that the influence of financial socialization on financial literacy is insignificant, while financial behavior is positively influenced by financial socialization and financial literacy. In mediating analysis cognitive ability and self-efficacy have positively affected financial behavior, while financial socialization has an insignificant effect on financial behavior through financial literacy. This research study provides important implications for researchers and other policymakers. Policymakers can formulate policies regarding trainings to improve the financial literacy of investors. Researcher can further investigate these variables for other segments of the society.

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 Islamic Financial Literacy and Financial Behavior: The case of Muhammadiyah Community in Medan City

2021 ◽  
Vol 22 (3) ◽  
pp. 500-516
Author(s):  
Ade Gunawan ◽  
Asmuni Asmuni ◽  
Saparuddin Siregar
Keyword(s):  
Financial Literacy ◽  
Structural Equation ◽  
Measurement Instrument ◽  
Financial Behavior ◽  
Primary Data ◽  
Equation Modeling ◽  
The People ◽  
Analysis Technique ◽  
Confirmatory Factor ◽  
Systematic Program

Research aims: This study aims to determine and analyze the level of financial behavior, the level of Muhammadiyah community’s Islamic financial literacy in Medan City, and the effect of Islamic financial literacy on financial behavior.Design/Methodology/Approach: This research is descriptive quantitative using primary data through questionnaire. The research sample was 200 members of the Muhammadiyah organization in Medan City. The data analysis technique employed confirmatory factor analysis and structural equation modeling utilizing AMOS.Research findings: The research confirmed that the level of Islamic financial knowledge among the Muhammadiyah community in Medan City was low, 60.56%. In contrast to Islamic finance knowledge, the financial behavior of the Muhammadiyah community in Medan City was classified as good; 69.01% of the Muhammadiyah community showed relatively good financial behavior. These two things make the level of Islamic financial literacy among Muhammadiyah residents in Medan City classified as less literate. This shows that in everyday life, Muhammadiyah community in Medan City had good financial behavior but was more influenced by habits or finance. Meanwhile, as far as Sharia finance was concerned, the Muhammadiyah community in Medan City still did not understand it.Theoretical contribution/Originality: This study provides information about the level of financial literacy and financial behavior of the Muhammadiyah community in Medan. This information becomes the basis for subsequent research to develop strategies to increase financial literacy and financial behavior of Muhammadiyah communities in Medan.Practitioner/Policy implication: Since Muhammadiyah aims to improve the welfare of the people and various studies have shown a link between the level of financial literacy and one's welfare, Muhammadiyah organizers need to pay attention to this, such as organizing a more structured and systematic program to increase Muhammadiyah citizens' knowledge of Islamic finance.Research limitation/Implication: This study still used a limited sample, namely Muhammadiyah communities. A broader sample will further confirm the validity of the literacy measurement instrument in the future.

scholarly journals Saudi Aramco’s IPO: The motivational factors involved in the purchase of Saudi Aramco shares

2020 ◽  
Vol 15 (01) ◽  
Author(s):  
Khadija Mehrez ◽  
◽  
Lubna Hamid ◽  
Ali Medabesh ◽  
Ghousia Nesreen ◽  
...  
Keyword(s):  
Financial Literacy ◽  
Structural Equation ◽  
Corporate Identity ◽  
Financial Behavior ◽  
Primary Data ◽  
Equation Modeling ◽  
Environmental Concerns ◽  
Financial Variables ◽  
Financial Organization ◽  
Environment Sustainability

This study investigates the main reasons behind the purchase of Aramco shares. It examines whether the following financial variables: financial literacy, financial self-efficacy, financial behavior and financial perceived value influence the attitude towards Saudi Aramco's IPO. Other variables dealing with environmental concerns and patriotism perception were added to this analysis, making it one of the pioneer studies in this field. A primary data collection through a survey questionnaire and structural equation modeling (SPSS-AMOS-26) were followed to study our research hypotheses. Our findings highlight a significant relationship between patriotism level, environmental concerns and attitude towards Saudi Aramco's IPO, which may encourage financial institutions to slot this investors’ psychosocial side in their marketing strategy, making environment sustainability a part of their corporate identity. Our study will also open the way for further investigation on the role played by these variables on financial decision making and to what extend a financial organization can use them to enhance its performance and gain investors’ attention.

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