The influence of the COVID 19 pandemic on financial education

2021 ◽  
Vol 66 (3) ◽  
pp. 77-90
Author(s):  
Nicoleta Gianina Bostan Motoaşcă
Keyword(s):  
Financial Education ◽  
Jel Classification ◽  
Financial Behavior ◽  
Banking Services ◽  
Personal Finances ◽  
Travel Agencies ◽  
Saving Behavior ◽  
Rich Countries ◽  
The Impact ◽  
The International Monetary Fund

"ABSTRACT. Pandemic situation has changed the way we work, learn and shop. Digital finance has helped individuals and companies to meet challenges. The forecasts for the impact of COVID 19 on the world economy are pessimistic. The latest revision of the International Monetary Fund shows a deeper recession than the initial estimates for 2020 and a slower recovery in 2021. Some industries were completely blocked, others were significantly declining. The impact of the restrictions imposed by the epidemiological situation were negative in industries like the automotive industry, airlines, travel agencies, tour operators, hotels, restaurants, entertainment and construction. There were also industries whose activity had an increase due to the pandemic like courier, transport and health services. The need to maintain social distance has pushed forward digital solutions for payments and banking services. People have been taken out of their comfort zone when it comes to managing personal finances. The discrepancies between poor and rich countries became more evident during this pandemic. Lack of activity, limited opportunities to spend money and uncertainty have increased saving behavior. According to Eurostat, the saving rate of households in the euro area increased by 16.6% in the second quarter of 2020 compared to the first, but the investment rate decreased by one percent. Speaking of the crisis in general and the financial crisis in particular, it has been shown that it has significantly changed the financial behavior of individuals. This paper aims to analyze how financial education led to different financial behavior during the crisis and the exclusions circumstances that may occur. Keywords: Covid-19, financial education, personal finances. JEL classification: I15, A29, D14. "

The Financial Education

2021 ◽  
pp. 101-125
Keyword(s):  
Technological Innovation ◽  
Financial Market ◽  
Financial Education ◽  
Financial Behavior ◽  
Financial Fragility ◽  
Education Programs ◽  
Economic Resilience ◽  
Health Crisis ◽  
Knowledge And Skills ◽  
The Impact

Financial education is a process that must take place throughout the life of consumers, given the intensification of the process of financial and technological innovation materialized in the emergence of new financial products and ways of accessing them. The financial education programs must focus on capitalizing on and use of financial knowledge and skills by children, young people, and women. The education can create responsible financial behavior within consumers to efficiently manage resources throughout life, including periods of the current health crisis. COVID has demonstrated the importance of economic resilience and the ability of consumers to adapt to the turbulence specific to this period. The financial fragility faced by certain categories of consumers during this period demonstrates the need to implement financial education programs. There is a need to adopt radical changes that are taking place in the financial market under the impact of fintech.

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

2020 ◽  
Vol 40 (11/12) ◽  
pp. 1423-1438 ◽  
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.

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 Faktor Yang Mempengaruhi Financial Management Behavior Pada Mahasiswa Fokus Keilmuan Ekonomi Dan Bisnis Kabupaten Gresik

MANAJERIAL ◽  
2020 ◽  
Vol 7 (2) ◽  
pp. 110
Author(s):  
Yanuar Trisnowati ◽  
Marisya Mahdia Khoirina ◽  
Firda Alvina Putri
Keyword(s):  
College Students ◽  
Locus Of Control ◽  
Financial Management ◽  
Student Behavior ◽  
Good Control ◽  
Financial Education ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Management Behavior ◽  
Personal Finances

Background – College students are one component of society that plays an important role for the change of the nation (agent of change). At this moment they are in a situation where they face financial independence and start making responsible decisions. Financial education can be done by providing understanding to the public, especially the younger generation about finances and their management that is good and wise, that is why, financial knowledge is needed. Today's society tends to buy things as they wish, so, financial knowledge requires skills and tools for individuals to be able to provide financial decisions and with confidence can manage individual welfare efficiently. Good personal financial management must have at least knowledge so that individuals can apply their knowledge based on their financial attitudes. Purpose - Determine and analyze the factors that influence the behavior of financial management of college students, focusing on Economics and Business, in Gresik Regency. Design / methodology / approach – This research methodology uses a descriptive quantitative approach. Chosen population was 2,636 college students and the sample used was 347 students. Data collection taken by questionnaires and analysis was using multiple linear regression. Finding - Three research variables (1) Financial Attitude, (2) Financial Knowledge, and (3) Locus of Control have an influence on the Financial Management Behavior. College students who tend to have a good financial attitude then they have good financial behavior in managing personal finances. College students with financial knowledge will better understand financial problems and be better in terms of financial behavior. College students who have a good locus of control will be able to measure the risks that occur so that they can easily make a decision and their finances tend to have a level of trust, confidence and good control over their financial management. Research Implication – This research has implications for assessing student behavior in managing personal finances in an effort to meet the needs of education and daily life. Limitation – In assessing financial management behavior (Financial Management Behavior), this research student only uses 3 variables, namely Financial Attitude, Financial Knowledge, and Locus of Control.

scholarly journals Impact of Financial Literacy and Parental Socialization on the Saving Behavior of University Level Students

2018 ◽  
Vol 4 (2) ◽  
pp. 133-140
Author(s):  
Junaid Afsar ◽  
Ghulam Mujtaba Chaudhary ◽  
Zafar Iqbal ◽  
Muhammad Aamir
Keyword(s):  
Financial Literacy ◽  
Pearson Correlation ◽  
Financial Education ◽  
Financial Knowledge ◽  
Primary Data ◽  
Parental Socialization ◽  
Collection Method ◽  
Saving Behavior ◽  
University Level ◽  
The Impact

This is an explanatory study on the impact of financial literacy and parental socialization on the saving behavior of university level students. Using primary data collection method, 400 questionnaires were distributed to the students of universities across Pakistan. Pearson correlation and multiple regression analysis are employed by using SPSS. Our results demonstrate that financial literacy and parental socialization positively influence the saving behavior of students. Our result revealed that the students who have financial literacy exhibit more saving behavior as compared to others who do not have financial knowledge. It is also concluded that the student willingness to save increased due to receiving financial education from their parents.

scholarly journals Investigating Attitudes towards Financial Literacy in Schools: An Impact Study

2012 ◽  
Vol 3 (7) ◽  
pp. 204-215
Author(s):  
Noi Keng KOH
Keyword(s):  
Financial Literacy ◽  
Modern Society ◽  
Financial Education ◽  
Financial Behavior ◽  
Economic Downturn ◽  
Sustainable Society ◽  
Socially Responsible ◽  
Pedagogical Skills ◽  
Responsible Attitude ◽  
The Impact

The global economic downturn has highlighted the damaging impact of financial illiteracy on individuals, families, communities and entire nations. The need to teach people how to spend, save, invest, borrow and manage money wisely has become more important than ever. It has also raised questions about what it takes to effectively engage people and change their financial behavior. This study is part of a larger study in Singapore schools to study the impact of an initiative to equip teacher’s with pedagogical skills and knowledge to integrate financial literacy messages in day-to-day lessons and foster a socially responsible attitude towards managing money to create a financially sustainable society. This study provides insights into how financial education can be integrated into classroom lessons in schools to deal with challenges that living in modern society presents.

scholarly journals The impact of COVID-19 on consumer behavior in retail banking. Evidence from Romania

2020 ◽  
Vol 15 (s1) ◽  
pp. 534-556
Author(s):  
Claudia Gabriela Baicu ◽  
Iuliana Petronela Gârdan ◽  
Daniel Adrian Gârdan ◽  
Gheorghe Epuran
Keyword(s):  
Consumer Behavior ◽  
Global Economy ◽  
Banking Sector ◽  
Financial Education ◽  
Positive Influence ◽  
Retail Banking ◽  
Special Focus ◽  
Mobile Banking ◽  
Banking Services ◽  
The Impact

AbstractThe pandemic COVID-19 has severely affected the global economy. The strict lockdown measures have also changed the daily live, including consumer behavior in retail banking. In this context, the purpose of this paper is to investigate the impact of the COVID-19 crisis on consumer behavior in retail banking, with a special focus on the Romanian banking sector. To achieve our goal, we performed a survey among the Romanian consumers in retail banking, using as research method the field survey based on questionnaire. The final sample comprised 738 valid responses from the metropolitan area retail banking consumers. The research brings a fresh insight on retail banking services consumption during the pandemic and validates a conceptual model regarding the internet and mobile banking services acceptance. The research’ results highlighted, among others, that the variable concerning the perception of the COVID-19 pandemic effect on consumers’ lifestyle has a direct and positive influence on the variable regarding the attitude toward internet and mobile banking services, mediated by other variables like safety of internet and mobile banking use and trust in banks. Several social and managerial implications are also discussed, because it is possible that the tendency to use internet and mobile banking services will prevail even after the post pandemic stage, as new consumption behavior models are developing. Banks in Romania should increase their initiatives to offer financial education courses and online tutorials to familiarize customers with the use of digital channels. Banks should also improve communication with clients and design new products and services to increase the attractiveness of saving process. They should demonstrate flexibility in negotiating lending and refinancing conditions as well.

scholarly journals Percepções de jovens estudantes sobre a educação financeira: um estudo em Barra do Garças-MT Perceptions of young students on the financial education: a study in Barra do Garças-MT

2017 ◽  
Vol 19 (1) ◽  
Author(s):  
Felipe Deodato da Silva e Silva ◽  
Natália Valadão Escorisa
Keyword(s):  
Financial Education ◽  
Financial Behavior ◽  
Mato Grosso ◽  
Personal Finances ◽  
Short Course ◽  
The Family ◽  
Fundamental Education ◽  
Young Students ◽  
Student's Perceptions

Vários estudos tem mostrado como a educação financeira é importante para o bem-estar dos indivíduos e, por isso, deve ser inserida nas escolas. O objetivo desse trabalho foi registrar a percepção dos alunos sobre a educação financeira nas escolas. Para isso, foi realizado um minicurso com assuntos básicos de gestão de finanças pessoais com alunos do Ensino Fundamental. Em seguida, foi aplicado um questionário para coletar informações sobre a percepção dos alunos em relação ao minicurso. O formato e o tempo do minicurso foram considerados adequados para o conteúdo ensinado. Em relação à temática, ela foi importante para a reflexão do comportamento financeiro e serviu para iniciar o debate de finanças com a família. Por fim, os alunos fizeram diversas sugestões para aprimorar as intervenções de educação financeira na escola. The financial education at school has been considered relevant to the formation of individuals and their welfare. The goal of this paper was to register the student’s perceptions about financial education at school. Thereunto, it was accomplished a short course with basic topics of personal finances with young students of Fundamental Education at three schools in Barra do Garças, Mato Grosso. Then, it was gathered information upon students perceptions related to short course. The format and the course time load were considered adequate to topics taught. In relation to financial education, this topic was important to financial behavior reflection and was useful to initiate the family financial debate. Lastly, the students made several suggestions to improve the interventions of financial education at school. 

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