scholarly journals Financial citizenship as a broader democratic context of financial literacy

2020 ◽  
pp. 204717342094841
Author(s):  
Medhat Khalil
Keyword(s):  
Financial Literacy ◽  
Global Education ◽  
Well Being ◽  
Financial Knowledge ◽  
Future Generations ◽  
Modern World ◽  
World Population ◽  
Financial Socialization ◽  
Political Systems ◽  
Financial Decisions

Financial citizenship is crucial in our modern world. Financial citizenship is underpinned by the education of future generations so that they can understand both their local and global economies to make the best financial decisions concerning their lives. This paper discusses financial literacy, how it relates to individual citizens, and how it correlates with social, political and business spheres. According to current financial capability models, every individual’s financial well-being can be boosted by developing their financial knowledge and competency, which will improve their motivations and confidence. Societal constructs significantly create financial socialization, which increases our accessibility and engagements with institutions, businesses, political systems and society as a whole. Being educated about the details required for financial literacy is every human being’s right. Citizens have been characterized as being personally responsible, participatory or justice oriented; each person’s specific perspective can impact their financial lives, which supports the importance of the current concept of financial citizenship. Boosting global education about economic citizenship will help to reduce poverty, create more sustainable economic environments, and improve social outcomes and the life satisfaction of the world population. These concepts will be explored and discussed in this paper.

scholarly journals Financial Literacy in Japan: New Evidence Using Financial Knowledge, Behavior, and Attitude

2020 ◽  
Vol 12 (9) ◽  
pp. 3683 ◽  
Author(s):  
Yoshihiko Kadoya ◽  
Mostafa Saidur Rahim Khan
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Well Being ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Economic Factors ◽  
Financial Decisions ◽  
Aged People ◽  
And Behavior ◽  
Socio Economic Factors

Success in the current complex and sophisticated financial marketplaces depends on the ability of people to make sustainable financial decisions to improve their future well-being, for which financial literacy is a pathway. This study examines the relationship between the demographic and socio-economic factors and financial literacy in Japan by segregating financial literacy into financial knowledge, attitude, and behavior, and providing a deeper understanding of the relationships. The methodology included using data from the Financial Literacy Survey 2016 by the Central Council for Financial Services Information of Japan. We used a linear regression model to explain how demographic and socio-economic factors relate to financial knowledge, attitude, and behavior. Results show that education, the balance of financial assets, and the use of financial information are positively related, while the experience of financial trouble is negatively related to financial knowledge, attitude, and behavior. We show that males are more financially knowledgeable than females, but females are more positive than males with regard to financial behavior and financial attitude. Age is positively related to financial knowledge but negatively related to financial attitude, thus suggesting that middle-aged people in Japan are more financially knowledgeable, but younger and older people are more positive with regard to financial behavior and attitude. The findings have implications for policymakers.

scholarly journals Contribution of Financial Literacy to Behavior

2015 ◽  
Vol 7 (6(J)) ◽  
pp. 61-71
Author(s):  
Ramesh Prasad Chaulagain
Keyword(s):  
Financial Literacy ◽  
Evaluation Criteria ◽  
Well Being ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Daily Lives ◽  
Financial Decisions ◽  
The People ◽  
Almost All ◽  
Two Sides

Almost all the people around the world behave with money in daily lives whereas understanding how they behave is important. It is obvious that the education, which can not affect behavior of people, is worthless. Financial literacy also is believed to change financial behavior of individuals. Financial literacy implies two sides, i.e. concept and application of personal finance. The concept consists financial knowledge and basic skill of numeracy and financial decisions; the application consists the financial behavior. The focus of the article is to discuss how the financial literacy contributes financial behavior and thereby financial wellbeing of individuals. For this, the article presents a transmission mechanism of financial knowledge and skill to the financial behavior through a framework. However, there are some contexts, conditions and criterions to transmit the financial knowledge and skill into financial behavior and well-being. Moreover, categorizing the financial behavior of individuals is a significant issue in study of financial literacy. Particularly for the survey research, a new categorization and degree of the financial behavior is presented, which is ranked as good, moderate and weak financial behavior in comparative ways. The study establishes the relevancy of the evaluation criteria of financial behavior and also presents a framework on how the financial educations work contribute in financial behavior.

scholarly journals Analysis of Factors Affecting Financial Well Being Millennial Generation in Batam

2020 ◽  
Vol 2 (1) ◽  
pp. 33
Author(s):  
Yandi Suprapto
Keyword(s):  
Financial Literacy ◽  
Millennial Generation ◽  
Negative Relationship ◽  
Financial Stress ◽  
Well Being ◽  
Financial Behavior ◽  
Financial Socialization ◽  
Factors Affecting ◽  
The People ◽  
Socialization Agents

The purpose of this study is to determine whether financial behavior, financial socialization agents, financial attitude,  financial stress, and financial literacy can influence financial well being in millennial generation in Batam City. Financial well being is described when a person is able to prosper in the field of financial finance. Welfare is reflected in the ability to meet and manage all needs and desires. While millennial is the most current generation so that it can be a hope and reflection of a country. This research method begins with the distribution of questionnaires to the people of Batam city aged 15-19 years. Data were collected as many as 300 respondents then processed with multiple regression research models using SPSS. Variable financial literacy, financial attitude and financial socialization agents provide a significant positive relationship to financial well being. Meanwhile financial stress has a significant negative relationship with financial well being. Then for financial behavior variables show no significant relationship to financial well being.

Financial Inclusion through Financial Literacy

2022 ◽  
Vol 13 (1) ◽  
pp. 0-0
Keyword(s):  
Financial Literacy ◽  
Uttar Pradesh ◽  
Secondary Data ◽  
Financial Education ◽  
Well Being ◽  
Financial Inclusion ◽  
Financial Decisions ◽  
College Curriculum ◽  
Financial Exclusion ◽  
The Government

Financial literacy is a means to tackle the problem of financial exclusion. It is a combination of awareness, skills, knowledge, attitude and behaviors necessary to make sound financial decisions and achieve financial well being. Objective of this study is to analyze current policy, practices and evidences on financial literacy. The study has been carried out on the basis of review of literature and secondary data collected from a range of sources. It is found that the government of India, RBI and other regulatory bodies are running financial literacy campaigns through diverse mediums. Financial literacy centers (FLCs) are contributing for enhancement of financial literacy. However, they need to be strengthened by enhancing resources. Inclusion of financial education in school and college curriculum has also been recommended. Scope of the study is limited to Ghaziabad district of Uttar Pradesh in India. The study might be valuable for policymakers in enhancing financial inclusion.

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.

The Argument for Teaching Financial Literacy at Higher-Education Institutions

2016 ◽  
Vol 43 (3) ◽  
pp. 349-365 ◽  
Author(s):  
SHERI GEDDES ◽  
TODD STEEN
Keyword(s):  
Higher Education ◽  
Postsecondary Education ◽  
Financial Literacy ◽  
Higher Education Institutions ◽  
Financial Education ◽  
Well Being ◽  
Academic Programs ◽  
Human Flourishing ◽  
Substantial Impact ◽  
Financial Decisions

ABSTRACT Evidence suggests that financial decisions have a substantial impact on human flourishing. This paper examines the arguments for higher-education institutions to take a role in the provision of financial education for their students, families and alumni, who often incur substantial debt and make other sacrifices to obtain a postsecondary education. It also analyzes the current state of financial education at 322 higher-education institutions. While many postsecondary institutions have embraced some aspects of financial education, other higher-education institutions appear reluctant to infuse this multidisciplinary topic into their academic programs. Colleges and universities should consider developing robust programs that boost financial literacy and improve lifelong economic well-being.

Childhood Financial Socialization and Debt-Related Financial Well-Being Indicators in Adulthood

2019 ◽  
Vol 30 (2) ◽  
pp. 213-230
Author(s):  
David Allen Ammerman ◽  
Cherie Stueve
Keyword(s):  
Positive Association ◽  
Household Survey ◽  
Well Being ◽  
Financial Knowledge ◽  
Financial Socialization ◽  
Potential Influence ◽  
Short Term ◽  
Current Ratio ◽  
Liquid Asset ◽  
A Current

The purpose of this study was to explore the potential influence of childhood financial socialization on financial well-being in adulthood. Using a sample (N = 2,213) from De Nederlandsche Bank Household Survey (DHS) we modeled the likelihood of household debt/asset ratio less than or equal to 40%, and the likelihood of a household reporting a current ratio (liquid asset /short-term debt ratio) greater than or equal to 100%. Consistent with predictions of social learning theory, being encouraged to save during childhood had a positive association with meeting the financial planning industry benchmarks for these financial ratios in adulthood. The key implication is that the path to financial well-being does not begin with financial knowledge attained in adulthood, but instead begins with experiential learning and socialization during childhood.

scholarly journals Pelaksanaan Pendidikan Literasi Finansial pada Siswa Sekolah Dasar

2019 ◽  
Vol 4 (11) ◽  
pp. 1491
Author(s):  
Viving Laila ◽  
Syamsul Hadi ◽  
Subanji Subanji
Keyword(s):  
Financial Literacy ◽  
Well Being ◽  
Literacy Education ◽  
School Students ◽  
Financial Decisions ◽  
Positive Attitudes ◽  
The People ◽  
Basic Competencies ◽  
Teachers And Students

<div align="center"><table width="645" border="1" cellspacing="0" cellpadding="0"><tbody><tr><td valign="top" width="439"><p><strong>Abstract:</strong> This study discusses how to implement financial literacy education in elementary school students. Financial literacy education is a person's activity in applying, understanding and managing information to make financial decisions. Financial literacy education can be taught early to provide knowledge and skills in improving financial well-being. This study uses a descriptive qualitative approach to describe the activities of teachers and students in the implementation of financial literacy education in elementary schools. This study shows that the implementation of financial literacy education can provide positive attitudes for students to participate in production activities and motivate students to save. Teachers can teach financial literacy education in accordance with the basic competencies that already exist in subjects such as mathematics and social studies. Teachers can teach the material the role of the economy in an effort to improve the lives of the people by introducing the type of business and doing activities to make a work and sell it.</p><p class="Abstract"><strong>Abstrak:</strong><em> </em>Penelitian ini membahas tentang bagaimana melaksanakan pendidikan literasi finansial pada siswa sekolah dasar. Pendidikan literasi finansial merupakan aktivitas seseorang dalam mengaplikasikan, memahami, dan mengelola informasi untuk membuat suatu keputusan finansialnya. Pendidikan literasi finansial dapat diajarkan sejak dini untuk memberikan pengetahuan dan keterampilan dalam meningkatkan kesejahteraan finansialnya. Penelitian ini menggunakan pendekatan kualitatif jenis deskriptif, untuk mendeskripsikan aktivitas guru dan siswa dalam pelaksanaan pendidikan literasi finansial di sekolah dasar. Penelitian ini menunjukkan bahwa pelaksanaan pendidikan literasi finansial dapat memberikan sikap positif siswa untuk berpartisipasi dalam kegiatan produksi dan memotivasi siswa untuk menabung. Guru dapat mengajarkan pendidikan literasi finansial sesuai dengan kompetensi dasar yang sudah ada pada mata pelajaran, seperti Matematika dan IPS. Guru dapat mengajarkan materi peran ekonomi dalam upaya menyejahterakan kehidupan masyarakat dengan mengenalkan jenis usaha serta melakukan kegiatan membuat sebuah karya dan menjualnya.</p></td></tr></tbody></table></div>

scholarly journals Financial Knowledge as Youth Preneur Success Factor

2019 ◽  
Vol 10 (2(S)) ◽  
pp. 26-32
Author(s):  
Achmad Kautsar ◽  
Nadia Asandimitra
Keyword(s):  
Financial Literacy ◽  
Sampling Technique ◽  
Financial Knowledge ◽  
Test Reliability ◽  
Financial Behavior ◽  
Cluster Sampling ◽  
Success Factor ◽  
Entrepreneurial Success ◽  
Financial Decisions ◽  
Entrepreneurial Skills

Indonesia currently has developed entrepreneurship both conceptually and practically and has developed very rapidly. Knowledge that must be possessed by an entrepreneur is financial knowledge. Adequate financial knowledge is needed to provide entrepreneurial skills to make sound financial decisions. Other variables of financial behavior that are important to be measured along with financial knowledge on the success of young entrepreneurial business are the level of financial behavior and financial literacy. This research was designed as explanatory research to explain the subject of the influence of financial knowledge, financial literacy, and financial attitude towards young entrepreneurial success. The research was conducted in the city of Surabaya. The population of this study is young entrepreneurs who have micro businesses. The sampling technique is done in a way cluster sampling. The analytical method used in this study is to use multiple linear regressions with validity test, reliability test, classic assumption test, and hypothesis testing.

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