Simultaneous Use of The Financial Literacy Level and The Financial Inclusion Degree as A Result of Financial Education Efficiencyon Visegrad Group Countries

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.

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Poverty Alleviation Fund in Financial Inclusions of Nepal

Research Nepal Journal of Development Studies ◽

10.3126/rnjds.v2i2.29281 ◽

2019 ◽

Vol 2 (2) ◽

pp. 90-98

Author(s):

Nahakul K.C.

Keyword(s):

New Product Development ◽

Financial Literacy ◽

Financial Services ◽

Poverty Alleviation ◽

Secondary Data ◽

Holistic Approach ◽

Financial Education ◽

Financial Inclusion ◽

Services Research ◽

Government Organizations

This research was an attempt to take a deeper look at people’s experience of existing financial services and their providers. In addition, it aimed to identify definitive indicators that would help to create a roadmap for the delivery of effective financial services in Nepal. The study emphasized that ensuring financial inclusion is an arduous task and requires a holistic approach encompassing strategies for awareness raising, financial education, technical advice on different dimensions of money management, debt counseling, saving mobilization, provision of affordable credit services, research and development. In order to promote financial inclusion, there is a need to develop and apply specific strategies to expand the outreach of their services using combinations of lending methodologies, market led approaches to new product development, fostering linkages with local communities and promoting the use of technologies. This paper is basically descriptive and analytical in nature and based on a number of policy models and provisions formulated in recent years for promoting financial inclusion in Nepal. Secondary data is used, drawn primarily from, Poverty Alleviation Fund, Department of Co-operatives and different departments. Micro finance institutions should give equal priority for non-financial services such as financial literacy and provision of entrepreneurship skills through government and non-government organizations that ultimately helps to utilize micro-credit into productive sectors.

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FINANCIAL LITERACY AND FINANCIAL INCLUSION EFFECTS ON STABILITY AND COMPETITIVENESS INDICATORS IN THE BANKING SECTOR: CROSS COUNTRY EVIDENCE FOR AFRICA AND THE WORLD

Global Economy Journal ◽

10.1142/s2194565921500093 ◽

2021 ◽

pp. 2150009

Author(s):

JOÃO JUNGO ◽

MARA MADALENO ◽

ANABELA BOTELHO

Keyword(s):

Credit Risk ◽

Interest Rates ◽

Financial Institutions ◽

Financial Literacy ◽

Financial Stability ◽

Banking Sector ◽

Financial Education ◽

Financial Inclusion ◽

The Stability ◽

The Impact

Financial inclusion has allowed financial products with very high-interest rates and complex conditions to become increasingly affordable. Financial inclusion programs, which aim to reach all social strata, strongly expose financial institutions to risk and particularly credit risk. That said, additional interventions such as financial education of those included are needed. We aim to examine the impact of financial literacy and financial inclusion of households on bank performance. Specifically, we want to examine the impact of financial literacy on credit risk, competitiveness among banks and financial stability. The FGLS estimation results suggest that financial literacy and financial inclusion reduce credit risk and enhance the stability of banks, and regarding competitiveness, our results were inconclusive as they show different effects for each competitiveness indicator, although they point to improved competitiveness in some cases. This research allows policymakers to understand that individual financial attitudes can be reflected in the general welfare of financial institutions and encourages the intensification of programs aimed at improving household financial literacy.

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THE DEVELOPMENT OF A FINANCIAL LITERACY SYSTEM IN RUSSIA

CBU International Conference Proceedings ◽

10.12955/cbup.v6.1175 ◽

2018 ◽

Vol 6 ◽

pp. 314-318

Author(s):

Svetlana A. Litvinova

Keyword(s):

Financial Literacy ◽

Financial Services ◽

Literacy Development ◽

Financial Inclusion ◽

Research Findings ◽

Literacy Level ◽

The Government

The article touches upon the issues of financial literacy development in Russia. The author considers financial literacy as a set of procedures that build up the system of financial literacy institution development including financial inclusion, an increase in financial literacy and a strengthening of the protection of consumers’ rights in regard to financial services. The author presents research findings that indicate a poor financial literacy level in Russia. The key conclusion reflects the goal of the paper: the development of the financial literacy system depends on the demand for innovative financial services and the measures taken by the government to develop the financial literacy system.

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Issues and Challenges of Financial Inclusion Among Low-Income Earners In Rural Areas of Malaysia

TURKISH JOURNAL OF ISLAMIC ECONOMICS ◽

10.26414/a2376 ◽

2021 ◽

Vol 8 (Special Issue) ◽

pp. 277-299

Author(s):

Salihah Sharizan ◽

Nur Harena Redzuan ◽

Romzie Rosman

Keyword(s):

Financial Institutions ◽

Low Income ◽

Rural Areas ◽

Financial Literacy ◽

Financial Services ◽

Financial Education ◽

Financial Inclusion ◽

Primary Data ◽

Structured Interviews ◽

Finance Industry

Financial inclusion (FI) appears to be one of the main global agendas as it is an essential way of reducing poverty and increasing the economic growth of a country. FI is the provision of financial services to all segments of society in a more convenient, quality, and affordable way. In this study, the authors analyzed the issues and challenges faced from the two perspectives of the Financial Institutions (FIs) and the rural B40 group concerning the way of pursuing the exclusive of FI. Primary data was collected by conducting semi-structured interviews with four expert bankers from the Financial Institutions (FIs) in Kuala Rompin, Pahang, and two representatives from the B40 customers in the rural areas of Pekan, Pahang, Malaysia. Based on the findings, barriers faced by the supply sides of the FIs include 1) high risk of cost and security, 2) barriers in communication and lack of financial education, and 3) lack of proof documents. The other challenges are 1) competition with the conventional institutions, 2) default risk due to non-payment, and 3) internet connection problem. On the demand side, the issues and challenges found include 1) lack of confidence, 2) lack of proof documents, 3) misuse of capital, and 4) lack of financial literacy. Henceforth, the findings have significant implications for the Islamic banking and finance industry in exploring the current barriers faced in delivering financial inclusion to the lower segment of the society in Malaysia.

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The Role of Financial Inclusion

Emerging Tools and Strategies for Financial Management - Advances in Finance, Accounting, and Economics ◽

10.4018/978-1-7998-2440-4.ch011 ◽

2020 ◽

pp. 248-279

Author(s):

Ulkem Basdas

Keyword(s):

Decision Making ◽

Financial Literacy ◽

Financial Education ◽

Financial Inclusion ◽

Decision Making Process ◽

Standard Definition ◽

Financial Decision Making ◽

Financial Decision ◽

Different Levels

This chapter highlights the importance of financial education, its link with financial decision-making process, comparative status of different countries, and efforts to improve current situation. Unfortunately, there is no standard definition for neither financial education nor measures to quantify it. Therefore, this chapter first aims to provide a comprehensive definition in order to explain how financial knowledge affects the decision-making process. Then, financial literacy measures from previous studies over different countries would be discussed to show financial illiteracy problem is global. Lastly, solutions and recommendations would be discussed at three different levels: younger people, individuals, and national strategies.

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Evaluating the effects of sociodemographic characteristics and financial education on saving behavior

International Journal of Sociology and Social Policy ◽

10.1108/ijssp-03-2020-0048 ◽

2020 ◽

Vol 40 (11/12) ◽

pp. 1423-1438 ◽

Cited By ~ 1

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.

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Is financial education an effective means to improve financial literacy? Evidence from rural China

Agricultural Finance Review ◽

10.1108/afr-03-2019-0027 ◽

2019 ◽

Vol 80 (3) ◽

pp. 305-320

Author(s):

Huanhuan ZHang ◽

Xueping Xiong

Keyword(s):

Financial Literacy ◽

Financial Education ◽

Education Level ◽

Evaluation Index System ◽

Risk Level ◽

Rural Residents ◽

Content Type ◽

Self Selection ◽

Literacy Level ◽

The Impact

Purpose Using survey data from Shandong, Henan and Guizhou provinces of China, the purpose of this paper is to accurately measure the impact of rural residents’ financial education on financial literacy. Design/methodology/approach This paper chooses one province from the Eastern, Central and Western Regions of China, namely, Shandong, Henan and Guizhou, respectively, and 1,565 samples are obtained through a questionnaire survey. First, the paper constructs a financial literacy assessment framework and, then, scores the financial literacy of the respondents. Second, using ordinary least squares, feasible generalized least squares method and forward search method, the paper estimates the impact factors of financial literacy level. To avoid sample selection errors and endogeneity problems, the authors divide the respondents into treatment group (participated in financial education) and control group (non-participating in financial education) and, then, adopt propensity score matching (PSM) to analyze the impact of rural residents’ financial education on financial literacy. Findings The results show that education level and risk level have significant impact on rural residents’ participation in financial education, and some unobservable abilities and qualities also affect their participation. Therefore, the process of rural residents’ participation in financial education exists, which gives rise to self-selection and endogeneity problems; financial education is promoting rural residents’ financial literacy, but the effect of promotion becomes smaller after taking into account sample self-selection and endogenous problems. Rural residents of female, higher age, single, higher education level, higher parental education level, agricultural type, higher family annual per capita income and lower risk level show stronger effects on their financial literacy level, if they participate in financial education. Research limitations/implications The survey sample was drawn from three provinces randomly but the site selection was not random. The implication is in rural China, financial education has positive effect on residents’ financial literacy level but considering the sample self- selection and endogenous nature, its impact becomes smaller. Practical implications The government should encourage rural residents to participate fully in financial education activities, especially those with a low educational level, low risk preference and mainly engaged in agricultural production. Originality/value The effect of financial education on financial literacy has not reached a consistent conclusion, and there is fewer quantitative discussion about this issue. The originality of this paper is based on the Organization for Economic Co-operation and Development evaluation index system; this paper constructs the evaluation index system of rural residents’ financial literacy in China and uses the PSM method to accurately measure the effect of financial education on financial literacy.

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Impact of Economic and Financial Literacy on the Spending Behaviour of Selected Public Servants in Lagos State Nigeria

WSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS ◽

10.37394/23207.2021.18.11 ◽

2021 ◽

Vol 18 ◽

pp. 95-105

Author(s):

Alexander Ehimare Omakhanlen ◽

Paulinus Ikechukwu Iyika ◽

Peace Onyedikachi Chimezie ◽

Olusegun Osho

Keyword(s):

Financial Literacy ◽

Financial Management ◽

Financial Inclusion ◽

Descriptive Statistics ◽

Portfolio Diversification ◽

Retirement Savings ◽

Public Servants ◽

Public Sector Organizations ◽

Literacy Level ◽

Structured Questionnaire

:Low level of financial literacy among the young workforce has remained a lingering problem,especially in developing countries. This has been pointed out as one of the causes of poor personal financialmanagement practice. This problem has hampered the efforts of various governments and institutions inthis region geared towards financial inclusion and the overall economic wellbeing of the citizens. Moststudies in this area focused on the financial literacy level of people rather than the effect on their behaviour.This study is an attempt examine the effect of financial literacy level on spending behaviour of 30 youngadults from public sector organizations. The study employed the standard questions for assessing theknowledge level of respondents. The questions test their understanding of simple and compoundinterest,inflation and portfolio diversification. For the spending behaviour, thePlanned Behaviour Theory(PBT) proposed by Icek Ajzen (1985) as a theoretical framework for measuring spending behaviour usingthe respondents preparation of budget and personal pre-retirement savings account as proxies. Data wascollected using a structured questionnaire . Descriptive statistics and multiple regression was used toanalyze thedata. The result showed that there is a positive correlation between the level of financial literacyand the spending behaviour of therespondents. The less the knowledge of financial management the peoplehave, the higher the risk of poor spendingbehaviour. The conclusion was drawn to say that more work isneeded to equip the youth especially on the art of financial management.

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Investigating financial literacy to improve financial behaviour among Black consumers

Journal of Economic and Financial Sciences ◽

10.4102/jef.v8i2.104 ◽

2015 ◽

Vol 8 (2) ◽

pp. 474-494

Author(s):

Chantal Rootman ◽

Xolile Antoni

Keyword(s):

South African ◽

Financial Literacy ◽

Empirical Investigation ◽

Financial Education ◽

Financial Inclusion ◽

Financial Benefit ◽

Nelson Mandela ◽

High Unemployment Rate ◽

Financial Behaviour ◽

Black Consumers

Due to South Africa’s high unemployment rate and large uneducated population, consumers’ low savings levels and high debt levels are of concern. Previous South African research in the domain of financial behaviour focused only on the population’s debt and savings behaviour and the statistics thereof. There is little research on identifying solutions to poor debt and savings behaviour, as well as improvements in financial literacy and behaviour. As it is essential to improve consumers’ financial literacy, increase their financial inclusion and change their financial behaviour to their financial benefit, it is important to investigate the relationships between these financial aspects. This exploratory study investigates aspects relating to financial literacy, financial inclusion and financial behaviour, specifically among black consumers in Nelson Mandela Bay. A total of 335 black consumers were respondents in an empirical investigation. The main results showed that saving and responsible spending behaviours can be improved as consumers’ financial knowledge and inclusion increase. Based on the results, the article presents conclusions and recommendations regarding the financial education necessary to improve aspects relating to financial literacy, financial inclusion and financial behaviour.

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