scholarly journals Financial Literacy among SMEs’ Owners in Sumatera, Indonesia: The Role of Parents’ Motivation and Experience

2020 ◽  
Vol 6 (3) ◽  
pp. 1131-1139
Author(s):  
Rika Desiyanti ◽  
Aza Azlina Md Kassim
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Financial Decisions ◽  
Parental Motivation ◽  
Role Of Parents ◽  
Literacy Research

Financial literacy is the skill to conduct personal and also business finance. Financial literacy shows information and reasoned both for the economy and finance.  Financial literacy is able to apply and regulate financial literacy that affects wellbeing. In 2013, the financial services authority (OJK) has conducted a financial survey and the result indicated that only 21.8% of people understand finance and in 2016, the percentage has increased from about 8% to 29.66. Lacking strength of financial literacy gives low effect on financial decisions, including less saving,  opting for more leverage, and involved in unprofitable investments. This paper a particular goal to analyze the influence of parental motivation and experience on financial literacy. Research sample is SMEs' Owners in Sumatra, Indonesia, have been sent questionnaires.  Based on a sample of 60 respondents it can be concluded that parents' motivation affected their financial literacy. Nevertheless, financial experience by the parents does not affect financial literacy.

scholarly journals Financial Literacy among SMEs Owners in Sumatera, Indonesia: The Role of Parents’ Motivation and Experience

2020 ◽  
Vol 6 (3) ◽  
pp. 821-829
Author(s):  
Rika Desiyanti ◽  
Aza Azlina Md Kassim
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Questionnaire Survey ◽  
Financial Information ◽  
Financial Problems ◽  
Financial Decisions ◽  
Low Level ◽  
Role Of Parents

Financial literacy is the ability of an individual to obtain financial information and take effective actions or decisions to manage any financial matters. The owners of SMEs should  manage their financial business effectively to avoid financial problems. In 2013, the financial services authority (OJK) has conducted a financial survey and the result indicated that only 21.8% of people understand finance and in 2016, the percentage has increased from about 8% to 29.66%.  Low level of financial literacy gives bad effect on financial decisions, including less saving,  opting for more leverage, and involved in unprofitable investments. This paper aims to analyze the influence of parents’ motivation and parents’ experience on financial literacy. A questionnaire survey has been distributed among SME owners in Sumatera, Indonesia.  Based on a sample of 60 respondents, the result shows that parents’ motivation does affect financial literacy. Nevertheless, financial experience by the parents does not affect financial literacy.

scholarly journals ASSET: A new measure of Economic and Financial Literacy (Accepted at the European Journal of Psychological Assesment)

2019 ◽  
Author(s):  
Tomas Folke ◽  
Jovana Gjorgjiovska ◽  
Alessandro Paul ◽  
Lea Jakob ◽  
Kai Ruggeri
Keyword(s):  
Socioeconomic Status ◽  
Young Adults ◽  
Young People ◽  
Psychometric Properties ◽  
Financial Literacy ◽  
Predictive Power ◽  
Mathematical Ability ◽  
Financial Decisions ◽  
High Level ◽  
Literacy Research

Young adults increasingly require good financial literacy to make the most of the opportunities provided to them. Unfortunately, existing financial literacy measures that may assist with targeting interventions show low reliability, ceiling effects, and a high level of abstraction. To address this, we designed and assessed the psychometric properties of a new measure specifically targeting young people, the Assessment of Economic and Financial Literacy (ASSET). We find it has better overall validity, reliability, and predictive power than existing measures. Using ASSET, we find that mathematical ability, calculator use (an example of deliberative thinking), gender, and socioeconomic status are key predictors of financial literacy. We recommend this more robust tool for use in financial literacy research to assess implications for guiding major financial decisions amongst young people.

scholarly journals Financial Technology (Fin-Tech): Revolutionizing the Indian Agrarian Sector

2020 ◽  
Vol 8 (12s3) ◽  
pp. 1-8
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Risk Sharing ◽  
Financial Inclusion ◽  
Indian Government ◽  
Agricultural Finance ◽  
Agricultural Growth ◽  
Two Factors ◽  
Financial Technology

Agriculture is the largest employer of India which constitutes 50% of its workforce and also a contributor to 17-18% in its GDP. Still, it is one of the most disorganized and disjointed sector.Somewhere this sector has not been given due attention and itcan be proven with the fact that the GDP contribution of this sector has fallen from 43% to 18% (1970- 2018).Though the Indian Government is digitally driving to provide financial inclusion to more than 145 million households that are not having access to banking services but still the farmers aremajorlyusing traditional credit for their basic and main two factors; Production & Consumption (Distribution). The financial segment has an important role to make agriculture aprime contributorto the economic growth of the country and also in reducing poverty. A fast-evolving technological landscape is bringing up new potential to focus&provide credit, risk-sharing, and to explore technology to enhance agricultural productivity. Our paper firstly examines agricultural finance in the Indian context and then discusses how financial technology (Fin-Tech) can drive new products in credit and risk markets in India. We evaluate the role of mobile banking, financial literacy, digital financial services, digital financial technology, and block-chain technology. The paper is concluded with a discussion of policy takeaways for Fin-Tech in agriculture to promote agricultural growth, enhance financial inclusion, and improve regional economic integration through agriculture.

scholarly journals The Assessment of Financial Literacy: New Evidence from Europe

2019 ◽  
Vol 7 (3) ◽  
pp. 54 ◽  
Author(s):  
Nicolini ◽  
Haupt
Keyword(s):  
Financial Literacy ◽  
Selection Process ◽  
Financial Education ◽  
Assessment Tools ◽  
Financial Behaviors ◽  
Financial Decisions ◽  
The Uk ◽  
New Evidence ◽  
The Relationship ◽  
Literacy Research

The hypothesis that people with more financial literacy make better financial decisions and show positive financial behaviors is crucial for more than one stakeholder. A weak connection between financial literacy and financial behaviors jeopardizes the opportunity to invest in financial education and to develop a consumer protection framework based on the chance to develop aware and responsible financial consumers. This study uses data from different countries (Germany, France, Italy, Sweden, the UK), using surveys devised and fielded specifically to measure financial literacy and in order to assess if the availability of a broad set of items on financial literacy allows to develop new measures of financial literacy to better understand the relationship between financial literacy and financial behaviors. The well-established Lusardi–Mitchell questions are compared with measures that differ in terms of number of items (the “50-items” index), range of topics (the “5-specific” index), or selection process of the items (the “unbiased” index). Results support the hypothesis that the Lusardi–Mitchell questions remain a good measure in a first-step analysis, but a deeper understanding of the connection between financial literacy and financial behaviors benefits from the measures proposed in the study, that should be considered as additional assessment tools in financial literacy research.

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 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 literacy and financial well-being of Australian consumers: a moderated mediation model of impulsivity and financial capability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad S. Tahir ◽  
Abdullahi D. Ahmed ◽  
Daniel W. Richards
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Well Being ◽  
Moderated Mediation ◽  
Mediation Model ◽  
Financial Capability ◽  
Moderator Variable ◽  
Content Type ◽  
Moderated Mediation Model

PurposeThis study aims to test a moderated mediation model for a twofold purpose. First, to examine the mediating role of financial capability (FC) in the association between financial literacy (FL) and financial well-being (FW). Second, to analyze if non-impulsive future-oriented behavior (NIB) moderates the associations of FL with FC and FL with FW.Design/methodology/approachThe authors use the PROCESS macros in IBM SPSS Statistics to test the moderated mediation model and analyze the 2016 wave of the Household, Income and Labor Dynamics in Australia Survey.FindingsThe empirical analysis shows that FC partially mediates the association between FL and FW. Furthermore, the moderated mediation analysis shows that NIB strengthens the associations of FL with FC and FL with FW. Specifically, the positive associations of FL with FC and FL with FW significantly increase for those consumers who score high on NIB.Practical implicationsThe findings have implications for the financial services industry. Professional financial planners can positively improve the ability of consumers to deal with their financial matters by highlighting the importance of FL and NIB.Social implicationsThe study findings suggest educating consumers to discourage impulsive behavior and encourage them to create financial plans as it will enhance their ability to conduct financial tasks efficiently, improving their FW.Originality/valueTo the authors’ knowledge, this is the first study to assess a moderated mediation model, which examines the role of FC as a mediator variable and NIB as a moderator variable in the association between FL and FW.

The Role of Financial Education in the Path Towards Sustainable Development

2021 ◽  
pp. 1-19
Author(s):  
Raquel González Castro ◽  
Joaquín Enríquez-Diaz ◽  
Begoña Alvarez García
Keyword(s):  
High School Students ◽  
Financial Literacy ◽  
Financial Education ◽  
Practical Experience ◽  
School Students ◽  
Financial Decisions ◽  
Level Of Satisfaction ◽  
Level Of Knowledge ◽  
High Level

Financial decisions are present in everyone's daily life. However, citizens do not always have sufficient knowledge to understand the consequences of their decisions and the risks taken. The lack of financial literacy can contribute, along with other factors, to making wrong financial decisions. This is why financial education becomes a key element to achieve a more sustainable and egalitarian future. This research presents a practical experience intended to foster financial education among high school students. The experience consisted in providing training workshops about financial topics, specifically adapted to the students' needs. The students' level of financial knowledge was evaluated and also their level of satisfaction with the experience. Results showed a high level of satisfaction and a significant improvement in their level of knowledge. The research also helped to identify the students' socio-demographic characteristics that explain the differences in their level of financial culture and their capacity for improvement.

Financial literacy training programs and financial behaviour: Why people do not become “financially literate”?

2020 ◽  
pp. 80-93
Author(s):  
D. V. Kislitsyn
Keyword(s):  
Financial Literacy ◽  
Financial Behavior ◽  
Literacy Programs ◽  
Financial Decisions ◽  
Financial Decision ◽  
Improvement Programs ◽  
The Government ◽  
Low Efficiency ◽  
Economic Understanding

The paper takes a critical view on the prevalent approaches to developing financial literacy programs. It has been shown that meta-analytical and review studies indicate low efficiency of financial literacy improvement programs: their effect on financial behavior is either statistically insignificant or statistically significant, but practically negligible. Among potential reasons of financial literacy programs low efficiency the role of behavioral factors in financial decision making and the impossibility of determining “financially literate” behavior from the perspective of an outside observer are considered. It is concluded that the currently dominant criteria for assessing financially competent behavior can be characterized either as procedural, within which not the consequences of financial decisions are considered, but how consciously they are taken, or as normative, within which the government differentiates the consumers attitudes into wrong and right. Both groups of criteria are based on a non-economic understanding of rationality.

scholarly journals Measuring and profiling financial literacy in South Africa

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Elizabeth L. Nanziri ◽  
Murray Leibbrandt
Keyword(s):  
South Africa ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Education ◽  
Multivariate Regression Analysis ◽  
Policy Makers ◽  
Financial Decisions ◽  
South Africans ◽  
Financial Behaviour ◽  
Using Data

Background: Microeconomic theories of financial behaviour tend to assume that consumers possess financial skills necessary to undertake related financial decisions. Aim and setting: We investigated this assumption by exploring the distribution of financial literacy among South Africans. Method: In the absence of a standard measure, a financial literacy index was constructed for the country using data collected on attitudes (towards), access to and use of financial services over the period 2005–2009. In a multivariate regression analysis, we used the index to examine the extent to which differences in financial literacy correlate with demographic and economic characteristics. Results: The index revealed substantial variation in financial literacy by age, education, province and race. Overall, demographic characteristics contributed up to 10% of the financial literacy differences among individuals in South Africa. Conclusion: These results can be used to guide policy makers where to place more emphasis in terms of financial education for South Africans.

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