scholarly journals Understanding the Path Toward Financial Well-Being: Evidence From India

2021 ◽  
Vol 12 ◽  
Author(s):  
Kanchan Sehrawat ◽  
Madhu Vij ◽  
Gaurav Talan
Keyword(s):  
Financial Literacy ◽  
Structural Equation ◽  
Well Being ◽  
Developed Countries ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Dimensional Approach ◽  
Indian Context ◽  
Effective Policy ◽  
Survey Responses

Many countries are taking steps to establish national strategies to improve the financial well-being (FWB) of their people. However, FWB as a term is still in the infancy stage with a handful of models developed in the context of developed countries. Thus, there is a need to understand FWB from a multi-disciplinary and multi-dimensional approach to draft and implement efficient strategies, especially in the context of developing countries like India. In this study, we have performed path analysis to identify the specific constituents of financial literacy, financial behavior (FinB), and personality traits that affect the FWB (perceived and objective) of an individual in Indian context. Survey responses of 349 respondents are analyzed to empirically validate the proposed relationships using the partial least squares structural equation modeling (PLS-SEM) approach. The analysis mostly provides support to existing literature and challenges some. The findings provide support to 12 out of 17 tested effects with eight hypotheses. The understanding of pathways that lead to increased FWB of individuals has the potential to facilitate effective policy-making and designing of curriculum to support efforts of individuals toward higher FWB and responsible FinBs.

scholarly journals Investigating the level of financial literacy of university students

2017 ◽  
Vol 16 (3) ◽  
pp. 845-866 ◽  
Author(s):  
Israel José dos Santos Felipe ◽  
Harrison Bachion Ceribeli ◽  
Túlio Queiroz Lana
Keyword(s):  
Structural Equation Modeling ◽  
University Students ◽  
Financial Literacy ◽  
Structural Equation ◽  
Financial Education ◽  
Well Being ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Financial Attitudes

AbstractConsidering that the quality of financial decisions taken by individuals depends on their financial knowledge, abilities and attitudes, it is possible to state that the well-being of a population depends on how financially literate it is. In this context, the aim of this study was to measure the financial literacy level of university students in north of Mexico. The research method used was the survey and the data collected were analyzed using the structural equation modeling technique. As results, it was possible to confirm that financial attitudes of university students of north of Mexico influence their financial behavior. However, it was not confirmed that financial knowledge of these students impacts their financial behavior. As a high relationship between financial attitudes, financial behavior and financial knowledge of analyzed individuals was not found, it is concluded that the level of financial literacy of university students in the north of Mexico is low. It implies in the necessity to invest in financial literacy programs that could help this population to better manage their resources, what would certainly impact on its savings and consumption decisions, and retirement planning.Keywords: Financial Literacy. Financial Education. Structural Equation Modeling. Mexican Students. Investigando o nível de alfabetização financeira de estudantes universitários ResumoConsiderando que a qualidade das decisões financeiras tomadas pelos indivíduos depende de seus conhecimentos, habilidades e atitudes financeiras, é possível afirmar que o bem-estar de uma população depende do quão financeiramente alfabetizada ela é. Neste contexto, o objetivo deste estudo foi mensurar o grau de alfabetização financeira dos estudantes universitários do norte do México. O método de pesquisa utilizado foi a survey e os dados coletados foram analisados por meio da técnica de modelagem de equações estruturais. Como resultados, foi possível confirmar que as atitudes financeiras dos universitários do norte do México influenciam seu comportamento financeiro. Todavia, não se confirmou que o conhecimento financeiro desses estudantes impacta seu comportamento financeiro. Como não se encontrou uma forte relação entre os conhecimentos, atitudes e comportamentos financeiros dos indivíduos analisados, conclui-se que o nível de alfabetização financeira dos estudantes universitários do norte do México é baixo. Isso implica na necessidade de investir em programas de alfabetização financeira para auxiliar essa população a melhor gerir seus recursos, o que certamente irá impactar em suas decisões de poupança e consumo, assim como em seu planejamento de aposentadoria.Palavras-chave: Alfabetização financeira. Educação financeira. Modelagem de equações Estruturais. Estudantes mexicanos.

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.

Determinants of Financial Well-Being Among Young Workers in Jakarta During the Covid-19 Pandemic

2021 ◽  
Vol 26 (2) ◽  
pp. 295
Author(s):  
Pamela Lavonda, Ignatius Roni Setyawan, Margarita Ekadjadja
Keyword(s):  
Financial Literacy ◽  
Structural Equation ◽  
Sampling Technique ◽  
Well Being ◽  
Positive Influence ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Financial Risks ◽  
Financial Attitudes ◽  
Financial Decisions

This study aims to analyze the effect of financial attitudes, financial behavior, and financial literacy on financial welfare. This research model uses convenience sampling technique through distributing questionnaires and collected as many as 163 respondents. The data was processed using the Structural Equation Modeling (SEM) method with smartPLS 3 software. The results indicate that financial attitudes have a positive influence on financial welfare. A good financial attitude can increase awareness to manage finances so as to improve financial well-being. Financial behavior has a positive influence on financial well-being. Good financial behavior encourages people to make long-term plans to cover unforeseen costs which can ultimately improve financial well-being. Financial literacy has a positive influence on financial well-being. Financial literacy not only affects the way individuals manage finances and solve financial problems, but also has implications for the individual's ability to make financial decisions related to investments, savings, and other financial risks. Thus financial prosperity can be achieved.

scholarly journals Impact of corporate social responsibility intensity on corporate reputation and financial performance of Indian firms

2016 ◽  
Vol 17 (4) ◽  
pp. 371-380 ◽  
Author(s):  
Sudeepta Pradhan
Keyword(s):  
Significant Role ◽  
Corporate Reputation ◽  
Structural Equation ◽  
Corporate Strategy ◽  
Developed Countries ◽  
Equation Modeling ◽  
Indian Context ◽  
The Developed Countries ◽  
Corporate Social

The rising importance of CSR over the last few decades has stirred the interest of academia and corporate on the subject. CSR attracted attention in the Indian context with the implementation of the Companies Bill, 2013, which mandated firms to invest 2 per cent of their net profits in social activities. The linkages between CSR and profitability using factors such as corporate reputation, competition intensity, and advertising have been tested in the developed countries. These linkages have sparsely been tested in emerging economies such as India, which motivated me to conduct this study. Neville et al. (2005) proposed a theoretical model integrating stakeholders, and internal and external factors influencing the CSR-FP relationship. This study modified and used Neville’s et al. (2005) model to test the proposed linkage in the Indian context. Structural Equation Modeling revealed a significant relationship between CSR Intensity and corporate reputation; significant role of social initiative and corporate strategy fit in enhancing the corporate reputation of a firm; and a significant role of advertising and promotion in enhancing corporate reputation. Other variables such as competitive intensity, supplier power, customer power and employee power were found to have no significant role on the proposed relationships.

scholarly journals Factors Affecting Financial Literacy and Financial Behaviour of Investors in Pakistan

2020 ◽  
Vol 1 (3) ◽  
pp. 80-90
Author(s):  
Muhammad Junaid Khan ◽  
Dr. Faheem Aslam ◽  
Syed Nisar-Ul-Mulk
Keyword(s):  
Cognitive Ability ◽  
Financial Literacy ◽  
Self Efficacy ◽  
Structural Equation ◽  
Research Study ◽  
Positive Impact ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Financial Socialization ◽  
The Impact

The main purpose of our study is to find out the impact of financial socialization, cognitive ability, and self-efficacy on financial literacy and financial behavior of investors in Pakistan. This study has used a non-probability convenience-based sampling technique for collecting the data. A total of 429 individual investors were analyzed with the help of structural equation modeling (SEM) through Smart PLS. The results of our research study suggested that the participation of female investors as compare to male investors is very low. The main results of the study showed that cognitive ability and self-efficacy have a significantly positive impact on financial literacy, but an insignificant impact of these two variables on financial behavior was found. Findings also suggested that the influence of financial socialization on financial literacy is insignificant, while financial behavior is positively influenced by financial socialization and financial literacy. In mediating analysis cognitive ability and self-efficacy have positively affected financial behavior, while financial socialization has an insignificant effect on financial behavior through financial literacy. This research study provides important implications for researchers and other policymakers. Policymakers can formulate policies regarding trainings to improve the financial literacy of investors. Researcher can further investigate these variables for other segments of the society.

scholarly journals Welfare and Wealth in Iran: Rural and Urban Dichotomies

2019 ◽  
Author(s):  
Sediqe Shafiei ◽  
Shahram Yazdani ◽  
A Hamid Zafarmand ◽  
Mohammad-Pooyan Jadidfard ◽  
sareh Shakerian
Keyword(s):  
Latent Variables ◽  
Structural Equation ◽  
Structural Model ◽  
Well Being ◽  
Equation Modeling ◽  
Comprehensive Model ◽  
Contributing Factors ◽  
Rural And Urban ◽  
Effective Policy ◽  
Relationship Of

Abstract Objective : Increasing social welfare and reducing poverty are to ensure the well-being of all classes of a society. Cities and villages are distinguished by cultural and economic disparities. The purpose of this study was to develop and present a comprehensive model on welfare and wealth components and their relationship with each other , as well as determining the contributing factors and variables affecting them by presenting a comprehensive model. Results : The Structural Equation Modeling ( SEM ) method was used to analyze the data and investigate the causal relationship of latent variables. Observed variables and latent variables of the model were analyzed and tested by using AMOS and SPSS (version 21) statistical methods, in two exploratory and confirmatory steps. Wealth and welfare were identified as two separate subjects in the conceptual model and in the final structural model for rural households. Unlike, in the urban community, they were recognized as a single category in the final structural model. The results of this study can provide the clear hints for effective policy making to break the cycle of deprivation and poverty in Iranian rural and urban population.

scholarly journals PERMODELAN POLA PERENCANAAN KEUANGAN BERDASARKAN STATUS PERNIKAHAN

2021 ◽  
Vol 15 (4) ◽  
pp. 773-784
Author(s):  
Lukmanul Hakim ◽  
Sri Andriani ◽  
Nenny Noor Umami
Keyword(s):  
Structural Equation Modeling ◽  
Marital Status ◽  
Financial Literacy ◽  
Financial Planning ◽  
Financial Management ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Financial Behavior ◽  
Equation Modeling

A Marital status at community can make an impact on financial management. The purpose of this study was to analyze financial planning based on marital status with the variables of financial attitude, financial behavior, and financial literacy towards people who live in Sumbawa. The data were analyzed using Structural Equation Modeling Partial Least Square (SEM-PLS) through smartPLS version 3.0 software. The results of the analysis in this study indicate that (1) financial attitude has a significant effect on financial behavior both based on married and unmarried status, (2) financial attitude has a significant effect on financial literacy both based on married and unmarried status, (3) financial attitude has an effect significant on financial planning based on both married and unmarried status, (4) financial behavior has no significant effect on financial literacy both based on married and unmarried status, (5) financial behavior has no significant effect on financial planning both based on married and unmarried status, (6) financial literacy has no significant effect on financial planning based on both married and unmarried status, and (7) There is no difference in financial planning based on marital status

scholarly journals Financial literacy among working women: A Study on university staff in Kedah

2020 ◽  
Vol 8 (2) ◽  
pp. 100-108
Author(s):  
Nur Najihah Ashaari ◽  
Zahayu Md Yusof ◽  
Masnita Misiran ◽  
Hasimah Sapiri
Keyword(s):  
Financial Literacy ◽  
Financial Management ◽  
Structural Equation ◽  
Financial Risk ◽  
Working Women ◽  
Financial Education ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Employment Sector ◽  
Five Factors

The involvement of women in the employment sector has helped boost the Malaysian economy. Therefore, it is imperative for our economy to consider the fact that where and how women work to spend or invest their funds. In this case, for the proper use of funds, working women need to be financially literate. This study to determine the relationship between the factors towards financial literacy among working women and to investigate the risk of financial literacy among working women. Sample data were gathered using self-administered questionnaire among working women in government university in Kedah and later analyzed using statistical software namely, Statistical Package for Social Science (SPSS) version 25.0 and Analysis of Moment Structure (AMOS) version 25.0. Confirmatory Factor Analysis (CFA) together with Structural Equation Modeling (SEM) approach was used both to access the model fit and identify the significant direct influence financial literacy among working women. As a result, five factors that influence financial management have been highlighted which are financial attitude, financial knowledge, financial education, financial behavior and financial literacy. The result indicates that only financial attitudes significant towards financial literacy among working women as supported by the previous study. However, other factors are also important in assessing the level of financial literacy of an individual because each of these factors plays a role in ensuring an individual's financial management and avoid yourself from financial risk.

scholarly journals An integrated model of financial well-being: The role of financial behavior

Accounting ◽  
2021 ◽  
pp. 691-700 ◽  
Author(s):  
Rr. Iramani ◽  
Lutfi Lutfi
Keyword(s):  
Marital Status ◽  
Financial Literacy ◽  
Structural Equation ◽  
Online Survey ◽  
Well Being ◽  
Equation Model ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Financial Status ◽  
The Government

One of the main goals of every individual or household is to achieve financial well-being. Previous research has shown that various factors influence financial well-being. This research aims to develop an integrated family financial welfare model by examining various factors that affect it. This study uses data of 1,158 households taken using an online survey. The data is analyzed using a structural equation model. The results show that financial experience, financial knowledge, financial status, and marital status directly affect financial well-being. Financial behavior significantly mediates the influence of financial behavior, financial knowledge, and locus of control on financial well-being. Furthermore, marital status strengthens the effect of financial knowledge on financial well-being, but it does not strengthen the effect of financial experience on financial well-being. This study suggests that the Government and financial authorities need to improve further the effectiveness of financial literacy and financial inclusion programs and campaign for a more frugal life among households to avoid financial difficulties.

scholarly journals Decision Making in Personal Insurance: Impact of Insurance Literacy

2019 ◽  
Vol 11 (23) ◽  
pp. 6795 ◽  
Author(s):  
Weedige ◽  
Ouyang ◽  
Gao ◽  
Liu
Keyword(s):  
Financial Literacy ◽  
Purchase Intention ◽  
Structural Equation ◽  
Well Being ◽  
Equation Modeling ◽  
Significant Difference ◽  
Critical Issues ◽  
Specialized Education ◽  
The Impact ◽  
Personal Insurance

Financial illiteracy and underinsurance have been revealed to be critical issues in the financial sustainability and well-being of families. However, studies show that financial literacy does not necessarily translate to insurance literacy, and more specialized education can improve insurance literacy. Little is known about the impact of insurance illiteracy on the inclination to seek and retain insurance. Considering this gap, our study aimed to investigate the direct and indirect effect of consumers’ insurance literacy on purchasing decisions of personal insurance. The study sample consists of middle-class consumers in Sri Lanka. A total of 300 valid questionnaires were collected and analyzed using a variance-based structural equation modeling. The results revealed that insurance literacy directly, and through its mediators of trust, perceived benefits, and favorable attitudes towards insurance, impacts the behavioral intention, significantly and positively. The cognition-based trust affected the purchase intention only through its mediators. Additionally, there is a significant difference between those who are having and not having insurance in terms of insurance literacy, trustfulness, and perceived value of insurance. This study is relatively a pioneer study, and findings will be of great interest to academicians and policymakers to encourage personal insurance as a tool in achieving financial security and well-being

Sign in / Sign up

Export Citation Format

Share Document