Financial Literacy and Long- and Short-Term Financial Behavior in Different Age Groups

2016 ◽  
Vol 27 (1) ◽  
pp. 3-19 ◽  
Author(s):  
Robin Henager ◽  
Brenda J. Cude
Keyword(s):  
Financial Literacy ◽  
Financial Management ◽  
Age Groups ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Short Term ◽  
Financial Behaviors ◽  
Management Ability ◽  
Objective Financial Knowledge ◽  
Subjective Financial Knowledge

The purpose of this study was to examine the relationship between financial literacy and financial behaviors among various age groups. Financial literacy was measured in three ways: objective financial knowledge, subjective financial knowledge or confidence, and subjective financial management ability. The age groups were 18–24, 25–34, 35–44, 45–54, 55–64, and 65 and older. Long-term financial behavior referred to retirement saving and investing behavior, whereas short-term financial behavior referred to spending and emergency saving behavior. In the full sample, both objective and subjective financial literacy variables were positively associated with long- and short-term financial behaviors. In the age subsamples, subjective financial knowledge or confidence was more strongly related to long- and short-term financial behavior than either objective financial knowledge or subjective financial management ability in the younger age groups. In the older age groups, objective financial knowledge was more strongly related to long-term financial behavior than either of the other two measures of financial literacy.

scholarly journals Competence, Confidence, and Gender: The Role of Objective and Subjective Financial Knowledge in Household Finance

2020 ◽  
Vol 41 (4) ◽  
pp. 626-638 ◽  
Author(s):  
Thérèse Lind ◽  
Ali Ahmed ◽  
Kenny Skagerlund ◽  
Camilla Strömbäck ◽  
Daniel Västfjäll ◽  
...  
Keyword(s):  
Cognitive Abilities ◽  
Financial Education ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Swedish Population ◽  
Financial Behaviors ◽  
Cognitive Reflection ◽  
And Gender ◽  
Objective Financial Knowledge ◽  
Subjective Financial Knowledge

AbstractWe studied the association of individual differences in objective financial knowledge (i.e. competence), subjective financial knowledge (i.e. confidence), numeric ability, and cognitive reflection on a broad set of financial behaviors and feelings towards financial matters. We used a large diverse sample (N = 2063) of the adult Swedish population. We found that both objective and subjective financial knowledge predicted frequent engagement in sound financial practices, while numeric ability and cognitive reflection could not be linked to the considered financial behaviors when controlling for other relevant cognitive abilities. In addition, both objective and subjective financial knowledge served as a buffer against financial anxiety, while we did not detect similar buffering effects of numeric ability and cognitive reflection. Subjective financial knowledge was found to be a stronger predictor of sound financial behavior and subjective wellbeing than objective financial knowledge. Women reported a lower level of subjective financial wellbeing even though they reported a more prudent financial behavior than men, when controlling for sociodemographics and cognitive abilities. Our findings help to understand heterogeneity in people’s propensity to engage in sound financial behaviors and have implications for important policy issues related to financial education.

scholarly journals THE INFLUENCE OF FINANCIAL INFORMATION, FINANCIAL SELF EFFICACY, AND EMOTIONAL INTELLIGENCE TO FINANCIAL MANAGEMENT BEHAVIOR OF FEMALE LECTURER

2020 ◽  
Vol 7 (6) ◽  
pp. 1112-1124
Author(s):  
Nadia Asandimitra ◽  
Achmad Kautsar
Keyword(s):  
Emotional Intelligence ◽  
Financial Literacy ◽  
Financial Management ◽  
Self Efficacy ◽  
Psychological Factors ◽  
Private Universities ◽  
Financial Information ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Management Behavior

Purpose of the study: The purpose of the study was to compare the financial information, financial self-efficacy and emotional intelligence on the financial management of women lecturer in state and private university. Methodology: This study was designed as a conclusive causality study. The study population was female lectures of state and private universities in Indonesia. From the population, there are two hundred (200) female lectures from a state university and private universities have selected as a sample of study by quota sampling method. The data collection techniques used in this research are interviews and surveys. Multiple regressions was chosen to get results with the SPSS tools. Main Findings: There is an influence of financial knowledge, financial self-efficacy, financial literacy, and emotional intelligence to the financial management behavior of female lecturers at state universities while there is no influence of financial attitude, financial literacy, and emotional intelligence to the financial management [behavior] of female university lecturers in private universities. Applications of this study: The results of this study will be beneficial for financial institutions and governments that usually hold education and training programs for their customers to increase financial knowledge so as to increase the confidence of their customers (including lecturers) in their ability to manage finance. Furthermore, this knowledge will be conveyed back to the students of the lecturer in the learning process about finance, so that it will indirectly increase the financial literacy of their students and society at large. Novelty/Originality of this study: Many researches about financial behavior topics have analyzed financial information factors’ influence on financial management behavior, but few of them have included psychological factors such as financial self-efficacy and emotional intelligence. This distinguishes this research compared to other studies of financial behavior as it analyzes the two effects of psychological factors on financial management behavior. Another novelty of this study is the selection of female lecturer as research object as their characteristic as well-informed and well-educated about financial management that has not observed by previous studies.

scholarly journals Financial Knowledge, Confidence, and Sustainable Financial Behavior

2021 ◽  
Vol 13 (19) ◽  
pp. 10926
Author(s):  
David Aristei ◽  
Manuela Gallo
Keyword(s):  
Causal Effect ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Financial Behaviors ◽  
Environmentally Responsible ◽  
Financial Investments ◽  
Information And Communication ◽  
Financial Market Participation ◽  
Objective Financial Knowledge ◽  
Investment Choices

This paper analyzes the effect of financial knowledge and confidence in shaping individual investment choices, sustainable debt behavior, and preferences for socially and environmentally responsible financial companies. Exploiting data from the “Italian Literacy and Financial Competence Survey” (IACOFI) carried out by the Bank of Italy in early 2020, we address potential endogeneity concerns in order to investigate the causal effect of objective financial knowledge on individual financial behaviors. To this aim, we perform endogenous probit regressions, using the respondent’s long-term planning attitude, the use of information and communication technology devices, and the financial knowledge of peers as additional instrumental variables. Our main empirical findings show that objective financial knowledge exerts a positive and significant effect on financial market participation and preferences for ethical financial companies. Moreover, we provide strong empirical evidence about the role of confidence biases on individual financial behaviors. In particular, overconfident individuals display a higher probability of making financial investments, experiencing losses due to investment fraud, and being over-indebted. Conversely, underconfident individuals exhibit suboptimal investment choices, but are less likely to engage in risky financial behaviors.

scholarly journals KARAKTERISTIK SOSIAL EKONOMI YANG MEMPENGARUHI LITERASI KEUANGAN SERTA DAMPAKNYA TERHADAP MANAJEMEN KEUANGAN PERSONAL (Survei Pada Pegawai Negeri Sipil Daerah di Kabupaten Kuningan)

2017 ◽  
Vol 1 (02) ◽  
Author(s):  
Herma Wiharno
Keyword(s):  
Financial Literacy ◽  
Financial Management ◽  
Financial Education ◽  
Civil Servants ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Sample Collection ◽  
Socioeconomic Characteristics ◽  
Units Of Analysis ◽  
Education Levels

The purpose of this study was to assess the socioeconomic characteristics that influence financial literacy and the influence of financial literacy towards personal financial management. The financial literacy in this study was divided into dimensions of financial literacy, financial behavior, and financial attitudes.The method used is descriptive and verificative methods. This research was conducted in the Kuningan Regency, and the Regional Civil Servants were the units of analysis. The samples used in this study were 390 Regional Civil Servants with the sample collection technique of proportional stratified cluster random sampling.The results of the verificative analysis revealed that only education levels significantly affect the financial knowledge, while having a significant effect on the behavior and attitudes in addition to the level of financial education is also a place to stay. Financial knowledge, financial behaviors, and financial attitudes significantly influence towards the personal financial management. In relation between socioeconomic characteristics with personal financial management, education level only that significant effect on personal financial management.

scholarly journals Financial Literacy among the Millennial Generation: Relationships between Knowledge, Skills, Attitude, and Behavior

2020 ◽  
Vol 14 (4) ◽  
pp. 24-37
Author(s):  
Vera Dewi ◽  
Erie Febrian ◽  
Nury Effendi ◽  
Mokhamad Anwar
Keyword(s):  
Financial Literacy ◽  
Financial Management ◽  
Millennial Generation ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Multiple Choice Questions ◽  
Management Behavior ◽  
Significant Relationships ◽  
Chi Squared ◽  
And Behavior

This study aims to determine the level of financial literacy among the millennial generation and to examine the correlation of their financial knowledge, financial attitude, and financial skills with their financial behavior. Multiple choice questions were used to measure financial knowledge with results grouped into three categories: low, moderate, and high. Financial attitude, financial skills, and financial behavior were also grouped using the quartile method into three categories: poor, fair, and good. Chi-squared analysis was used to test the hypotheses, with correspondence analysis conducted to identify the characteristics of the millennial generation and to graphically illustrate the gap. Regarding financial attitude, financial skills, and financial behavior, the proportions of respondents in the 'fair' category, were 70.6%, 66.5%, and 72.2%, respectively. Significant relationships were found not only between financial attitude and financial management behavior, but also between financial skills and financial management behavior. However, the relationship was not significant between financial knowledge and financial behavior.

scholarly journals The Effect of Financial Knowledge on Financial Literacy with Mediated by Financial Behavior in Society of Palembang City South Sumatera

2019 ◽  
Vol 9 (3) ◽  
pp. 421
Author(s):  
YULIANI YULIANI
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Financial Management ◽  
Structural Equation ◽  
Measurement Data ◽  
Well Being ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Indirect Influence

The Indonesian financial literacy index is still very low. This low index makes the government through the Financial Services Authority (OJK) make a strategy contained in the Indonesian National Financial Literacy Strategy or SNLKI (Revisit 2017). The strategy is expected that the Indonesian people have the knowledge and skills and beliefs that are reflected in attitudes and behaviors regarding financial management and are able to take quality financial decisions for Financial Well Being. The research objective is to analyze the direct effect of financial knowledge on financial literacy. Analyzing the indirect influence of financial behavior as a mediator of the effect of financial knowledge on financial literacy. Non-probability of purposive sampling technique as many as 105 respondents. Data collection conducted in May-June 2019. The data used is primary using the research instrument in the form of a questionnaire with a 5-point Likert scale measurement. Data was collected by distributing questionnaires both directly and online questionnaires through a Google questionnaire. Data analysis techniques are descriptive and inferential. Inferential testing using Structural Equation Modeling (SEM). The research findings are that there is a direct influence of financial knowledge on financial literacy. The indirect influence of financial behavior on financial literacy is not significant so financial behavior is not mediation.

PENGARUH LITERASI KEUANGAN TERHADAP PROFITABILITAS USAHA MIKRO KECIL DAN MENENGAH DI KOTA TANGERANG

2020 ◽  
Vol 12 (2) ◽  
pp. 270-293
Author(s):  
Eko Agus Prasetyo Endarto ◽  
Aloysius Alfando Tirtana
Keyword(s):  
Financial Literacy ◽  
Financial Management ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Positive Influence ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Statistical Tool ◽  
Equation Modelling ◽  
Medium Enterprises

Financial literacy is important to improve personal and business financial management skill, especially for small and medium enterprises. Several previous studies have shown an influence between financial literacy and their profits. This research wants to examine whether there is an influence between financial literacy which consists of financial knowledge, behavior and attitude towards SME profits in Tangerang City. Structural Equation Modelling is used as a statistical tool to prove the specified hypothesis. By processing the data, it was found that there was a positive influence between financial literacy and profit.   Keywords: Financial Literacy, Financial Knowledge, Financial Behavior, Financial Attitude, Small Medium Enteprise

scholarly journals The Influence of Financial Attitude, Financial Literacy, and Locus of Control on Financial Management Behavior (Study Case Working-Age of Semarang)

2021 ◽  
Vol 5 (1) ◽  
Author(s):  
Stella Maris Juhar Baptista
Keyword(s):  
Locus Of Control ◽  
Financial Literacy ◽  
Financial Management ◽  
Behavior Management ◽  
Age Groups ◽  
Financial Behavior ◽  
Management Behavior ◽  
Financial Attitudes ◽  
Working Age ◽  
The Individual

The financial attitude possessed by individuals can be realized because of literacy or knowledge. Meanwhile, the current level of working-age literacy in Semarang City needs to be improved. This background can be seen in the widespread use of credit cards, excessive consumption activities, and the low level of public knowledge about financial institutions and financial products and services. To inhibit this desire, a high locus of control is needed in the individual. This study aims to determine the influence and relationship between financial attitudes, financial literacy, and locus of control on financial management behavior at working-age in Semarang City. The research method used is the quantitative method with multiple regression analysis. The data collection technique was by distributing questionnaires to four hundred productive age groups in the city of Semarang. The results of this study showed that there was an influence between financial attitudes and financial literacy on partial financial behavior management based on hypothesis testing (t-test), but there is no influence between the locus of control on financial management behavior partially.

scholarly journals Study of Financial Behaviors Micro Small Medium Enterprise in Bandung, Indonesia

2021 ◽  
Vol 12 (1) ◽  
pp. 21-25
Author(s):  
Maya Malinda ◽  
◽  
Asni Harianti ◽  
Miki Tjandra ◽  
Yolla Margaretha ◽  
...  
Keyword(s):  
Financial Literacy ◽  
Financial Planning ◽  
Financial Management ◽  
Financial Behavior ◽  
Estate Planning ◽  
Financial Behaviors ◽  
Medium Enterprise ◽  
Personal Financial Planning

This study has purpose to reveal financial literacy from micro small medium enterprise (MSME) entrepreneurs in Bandung, Indonesia. Divided by three locations, Bojongsoang, Sukajadi and other location in Bandung city. The purpose of this research is to convey MSME behavior of financial literate. Criteria of financial literate are person can understand and practice for financial management, saving/investing, insurance & estate planning, credit, shopping. The method for testing used in this paper build by O’Neill is through Financial Fitness Quiz (FFQ)The result from 276 participants Bojong Soang, Sukajadi and other locations In Bandung, have different results degree. The result for saving/investment, insurance and estate planning, credit, shopping dimension showed low score below 20 points. It has been proven that MSME entrepreneurs need personal financial planning training. This research has purpose for to increase financial literate and to improve positive financial behavior with education and apps program peSak Abdi.

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