scholarly journals THE LINKAGES BETWEEN FINANCIAL LITERACY AND ITS APPLICATION IN FINANCIAL DECISION-MAKING AMONG ACADEMICIANS IN INDONESIA

2019 ◽  
Vol 7 (5) ◽  
pp. 1280-1292
Author(s):  
Nevi Danila ◽  
Yousef Shahwan ◽  
Zaiton Ali ◽  
Ahmad Djalaluddin
Keyword(s):  
Decision Making ◽  
Financial Literacy ◽  
Demographic Characteristics ◽  
Survey Method ◽  
Financial Decision Making ◽  
Cash Flow Management ◽  
Financial Products ◽  
Financial Decision ◽  
The Impact ◽  
Financial Practices

Purpose of the study: Financial literacy has become one of the important policies of the Indonesia government. The improvement of financial literacy is crucial for a more stable financial system and reduces financial fragility. Our research is to examine levels of financial literacy, to identify determinants of financial literacy and to investigate whether knowledge is followed by financial practices. Methodology: This study employs the survey method, which includes questionnaires sent to academicians in Indonesia. Multiple regression analysis (MRA)is used to empirically analyze the relationship between financial literacy and its application in financial decision-making.   Main findings: The respondents are financially literate with the same level of financial literacy. Socio-demographic characteristics influence significantly the financial literacy and the capability in cash flow management of the respondents. Further, there is a linkage between the knowledge of financial products (financial literacy) and its application in financial decision-making. Application: It implies that the knowledge about the financial product is very important for creating a high financial literacy society. The Indonesia government needs to run more seriously one of the pillars in the National Strategy for Financial Inclusion through the Ministry of Education. Novelty: Most of the previous studies focused on conventional products, while this study includes both conventional and Islamic financial products. Further, we also consider the application of Islamic (shari’ah) financial practices. We investigate the impact of financial literacy with socio-demographic characteristics on its application in financial decision-making.

scholarly journals THE ASSOCIATION OF OBJECTIVE FINANCIAL DECISION MAKING WITH FINANCIAL LITERACY, EDUCATION, AND MATH SKILLS

2019 ◽  
Vol 3 (Supplement_1) ◽  
pp. S653-S654
Author(s):  
Preeti Sunderaraman ◽  
Sarah Ho ◽  
Yaakov Stern ◽  
Stephanie Cosentino
Keyword(s):  
Decision Making ◽  
Multiple Regression ◽  
Financial Literacy ◽  
Adult Life ◽  
Stepwise Multiple Regression ◽  
Math Skills ◽  
Financial Decision Making ◽  
Fluid Ability ◽  
Financial Decision ◽  
The Impact

Abstract Rationale: Financial decision-making (FDM) is a critical ability with implications across the adult life-span. In healthy adults, demographic and cognitive factors impact FDM. However, the impact of these factors on FDM has yet to be fully investigated. The aim of the current study was to understand the extent to which demographics (age, education, sex), financial literacy (crystallized ability), and mathematical ability (fluid ability) influence FDM. Participants and Methods: The sample, recruited from a larger ongoing study, consisted of 73 adults; mean age=61.31 (13.76) years, mean education=15.68 (2.61) years, 59.5% female, 58% Caucasian. FDM was measured using the Financial Competence Assessment Inventory, financial literacy using a standard set of 23 questions, and math skills using WAIS-III Arithmetic, WRAT-IV Math and Cognitive Reflection Test. Results: Only variables that were significantly associated with FDM in bivariate analysis were selected for the multiple regression analysis. After adjusting for multicollinearity, stepwise multiple regression analyses revealed that the overall model with 3 predictors (education, financial literacy, WAIS-III Arithmetic) was significant (F =23.64, p < .001) and explained 50.7% of the variance in FDM. Education and WAIS-III Arithmetic predicted FDM to a higher extent than financial literacy. Conclusions: The finding that education and fluid ability has a relatively higher impact on FDM as compared to crystallized ability is important. As one ages, fluid abilities decline more rapidly than crystallized abilities. This may be one explanation for why FDM ability worsens with age. To increase confidence in these findings, future research should test these models using age-stratified analyses.

Social and economic empowerment of women through financial inclusion: empirical evidence from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mukesh Pal ◽  
Hemant Gupta ◽  
Yogesh C. Joshi
Keyword(s):  
Decision Making ◽  
Social Welfare ◽  
Financial Inclusion ◽  
Rural India ◽  
Women Empowerment ◽  
Bank Account ◽  
Content Type ◽  
Financial Decision Making ◽  
Financial Decision ◽  
The Impact

PurposeWomen empowerment becomes an important policy discussion in development economics and modernization theory. The empowerment of women can lead to an increase in the quality viz-a-viz the capacity of human resources accessible for economic development. The purpose of this study is to evidence the impact of social and economic dimensions on women empowerment through financial inclusion in rural India.Design/methodology/approachTo reveal the research objective, the study has utilized a primary survey of women respondents from the Gujarat state of India by a simple random sampling method and applied a logistic regression approach to identify the relationship between the need of a bank account (determinant of financial inclusion) as a dependent variable and social and economic dimensions of women empowerment such as earning status, participation in financial decision-making, recipient of social welfare schemes and perception towards the safety of saving as independent variables.FindingsThe results of this study show that earning status, participation in financial decision-making at household level and recipient of social welfare schemes by women have a significant impact on women empowerment through financial inclusion; however, safety of their savings is observed as an insignificant variable, yet the odd value is very high (2.437) in the present study.Originality/valueThe present study is the first of its kind to examine the social and economic status of women and its impact on their requirement of a formal bank account for the overall empowerment of women in rural India.

scholarly journals Gender Differences in Financial Decisions

2018 ◽  
Vol 11 (1) ◽  
pp. 21-27
Author(s):  
Jeetendra Dangol
Keyword(s):  
Gender Differences ◽  
Decision Making ◽  
Financial Literacy ◽  
Sampling Technique ◽  
Financial Decisions ◽  
Financial Decision Making ◽  
Financial Decision ◽  
Convenience Sampling ◽  
Risk Taker ◽  
Survey Questionnaires

This paper examines the gender differences in financial decision-making of university students who are young, single, childless individuals that have at least average financial literacy and very small or no income. This paper is based on the survey questionnaires developed by Grable and Lytton (2003), distributed and collected from 100 students (50 men and 50 women) by using convenience sampling technique. The study finds that men and women differ in their financial decision. Women are less risk taker than men in financial decision-making; it indicates that women prefer to safer investment.

Modelling the Effects of Financial Services Advertising on Financial Product Purchase: An Empirical Validation

2019 ◽  
Vol 23 (4) ◽  
pp. 418-431
Author(s):  
Pallavi Dogra ◽  
Rishi Raj Sharma
Keyword(s):  
Decision Making ◽  
Factor Analysis ◽  
Financial Literacy ◽  
Financial Services ◽  
Service Providers ◽  
Decision Making Process ◽  
Celebrity Endorsement ◽  
Financial Decision Making ◽  
Perceived Reality ◽  
Financial Decision

The main aim of the study is to find the effect of the financial advertisement on the respondent’s information selection, processing and analysing it while making the financial purchase decisions. The study identified the important factors that affect the investment decision-making process and explored them by using the exploratory factor analysis. The conceptual model has been tested using the AMOS SEM software. The factor analysis identified the four important factors that are affecting the financial decision-making, that is, financial literacy, celebrity endorsement, perceived reality and entertainment. The hypothesis testing reveals that advertisement, perceived reality and entertainment are affecting the information processing and financial decision-making process, whereas financial literacy and celebrity endorsement do not have significant effects on the financial product purchase. The results are useful for the advertisers, policy makers and the financial service providers so as to increase the sale of financial products by focusing on the variables extracted by the research.

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