scholarly journals Household’s Overindebtedness during the COVID-19 Crisis: The Role of Debt and Financial Literacy

Risks ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 62
Author(s):  
Łukasz Kurowski
Keyword(s):  
Financial Literacy ◽  
Multinomial Logistic Regression ◽  
Financial Education ◽  
Management Skills ◽  
Budget Management ◽  
Mortgage Loans ◽  
Consumer Loans ◽  
Personal Finances ◽  
The Face

The COVID-19 pandemic has shown how important it is to prepare one’s own financial budget for the unexpected loss of income. In this dimension, the financial education of the society plays an invaluable role. It allows us to account for events that may adversely affect personal finances in our budget management decisions. Therefore, the aim of the article is to check whether households with a higher level of financial and debt literacy have better management skills from the perspective of a household’s budget, which in the face of a crisis reduces the risk of individuals not paying their liabilities. Thus, at the turn of June and July 2020, we conducted surveys among 1300 Polish citizens. Using the multinomial logistic regression, we show that people with a higher financial and debt literacy are less affected by overindebtedness. During the crisis, people who have a higher debt literacy are better prepared to manage credit liabilities; in this situation, financial literacy is less important. In addition, the type of credit experience turned out to be significant. Respondents who have experience with consumer loans (potentially high-margin products) are more likely to have debt repayment problems than those with mortgage loans experiences.

Formation of financial literacy in training of informatics teachers on the basis of the 1С:Enterprise system

2020 ◽  
Vol 1 (1) ◽  
pp. 11-18
Author(s):  
M. A. Rodionov ◽  
I. V. Akimova
Keyword(s):  
Financial Literacy ◽  
Basic Knowledge ◽  
State University ◽  
Science And Literature ◽  
Successful Development ◽  
Mathematics History ◽  
School Subjects ◽  
Personal Finances ◽  
The Right

In the submitted study the problem of the formation of financial literacy of students at informatics lessons and relevant training of future informatics teachers is considered. Financial literacy is understood as a set of basic knowledge in the field of finance, banking, insurance, as well as budgeting for personal finances that allow a person to choose the right financial product or service, soberly assess and take risks that may arise during the use of these products, correctly accumulate savings and identify doubtful (fraudulent) investment schemes. The authors conclude that successful development of meaningful lines of the course of financial literacy requires integration of a few school subjects, such as mathematics, history, informatics, social science and literature. The role of modern informatics teacher in the formation of financial literacy of students is great. Therefore, in the training of a future informatics teacher, it should be paid the attention to issues related to the study of elements of financial literacy in informatics lessons. In order to solve the problem, the authors propose to use the special course “Basics of work in 1С:Enterprise”, which is implemented at Penza State University. The article contains a program of the course and the methodological recommendations for its implementation.

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.

Combining Adult Education and Professional Development Best Practice to Improve Financial Education Teacher Training

2017 ◽  
Vol 28 (1) ◽  
pp. 33-48 ◽  
Author(s):  
Billy J. Hensley ◽  
Jesse B. Jurgenson ◽  
Lisa-Anne Ferris
Keyword(s):  
Professional Development ◽  
Adult Education ◽  
Financial Literacy ◽  
Best Practice ◽  
Development Program ◽  
Financial Education ◽  
Financial Behaviors ◽  
Personal Finances ◽  
Teacher Professional ◽  
Financial Decision

Financial education is an important area of study due in part to the need for improved understanding of how to navigate an ever more complex financial decision-making environment, thus the need for effective classroom instruction. The purpose of this study is to examine a “teacher-as-learner” professional development program that is rooted in both professional development and adult education fields of study as means of providing financial education. This program educates teachers on their own personal finance, ultimately better preparing educators to teach financial literacy education. Results showed significant improvements in self-reported financial behaviors between pre- and posttests. Results suggest using contextual learning for teacher professional development because it benefits personal finances and successful teaching practices.

scholarly journals Developing financial competence about mortgage loans by informal learning using banks’ online calculators

2019 ◽  
Vol 11 (1) ◽  
Author(s):  
Bärbel Fürstenau ◽  
Mandy Hommel
Keyword(s):  
Informal Learning ◽  
Prior Knowledge ◽  
Financial Literacy ◽  
Formal Education ◽  
Self Regulation ◽  
Financial Education ◽  
Mortgage Loan ◽  
The Internet ◽  
Control Group ◽  
Mortgage Loans

Abstract Background and aim Financial literacy (or financial competence) has become an internationally relevant and highly regarded topic. Since people often lack sufficient financial competence, in many countries efforts have been made to foster formal financial education. Less attention, however, has been paid to whether informal learning using information available on the Internet can also support the development of financial competence. However, this seems to be an important question because the Internet has expanded the opportunities for informal learning. In addition, people need to acquire financial competence on their own because not every financial topic relevant in one’s lifetime is covered in formal education syllabi. Against this background, in this study we tested whether people are able to develop financial competence by learning informally using information available on the Internet. We focused on mortgage loans, as they are comparatively complex financial products. Mortgage loans have the potential to significantly influence an individual’s financial situation. In addition, society might carry the burdens of risky and uninformed decisions about mortgage loans—as the financial and real estate crisis has shown. Method 45 students of economics and business studies in their final undergraduate year participated. They were randomly assigned to an experimental or a control group. The experimental group explored information about mortgage loans using the loan calculator of a German bank. The control group did not explore webpages. Before the intervention, students from both groups completed knowledge tests and self-assessed their financial knowledge and behaviour. After the intervention, students had to work on a case and to decide whether a small family should take out a mortgage loan for financing a house. The decision had to be justified. In addition, students were administered an immediate and delayed knowledge test. Results and conclusions Students of both groups did not differ in knowledge acquisition, decision making about taking a mortgage loan and argumentation quality. However, prior knowledge can be referred to in order to explain the results. Therefore, informal learning using the Internet did not seem to be effective if people did not have sufficient prior knowledge. This result underlines, on the one hand, the necessity of financial education—be it prior to informal learning or in the course of informal learning. On the other hand, the results can be interpreted as a hint to consider how to improve informal learning activities, e.g. by supporting self-regulation or by improving information material.

scholarly journals Multinomial Logistic Regression to Estimate the Financial Education and Financial Knowledge of University Students in Chile

Information ◽  
2021 ◽  
Vol 12 (9) ◽  
pp. 379
Author(s):  
Hanns de la Fuente-Mella ◽  
Benito Umaña-Hermosilla ◽  
Marisela Fonseca-Fuentes ◽  
Claudio Elórtegui-Gómez
Keyword(s):  
Financial Literacy ◽  
Multinomial Logistic Regression ◽  
Financial Education ◽  
Well Being ◽  
Economic Resources ◽  
Financial Knowledge ◽  
Degree Programs ◽  
Main Challenge ◽  
Level Of Knowledge ◽  
Criterion Development

All individuals face decisions during their lifetime that directly influence the economic well-being of their families. Therefore, financial education can be a fundamental tool to maximize our economic resources and use them wisely. A virtual survey was administered to 410 volunteer students belonging to a public university in southern Chile. The objective was to determine the level of financial knowledge and appreciation of financial education of future professionals. The most important results demonstrate a reality in which young people said they had the habit of saving and budgeting at home and were responsible for paying their bills on time. However, only a very small number of participants claimed having a superior level of knowledge regarding financial literacy. The main challenge for universities is to include this topic in the elective curriculum of all degree programs to promote financial criterion development that contributes to the comprehensive training and professional competencies of future graduates.

The Role of Financial Inclusion

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.

scholarly journals Economic Function and Financial Literacy of Modern Family

2019 ◽  
Vol 5 (2) ◽  
pp. 57
Author(s):  
Jovan Pejkovski ◽  
Artur Ribaj
Keyword(s):  
Financial Literacy ◽  
Family Income ◽  
Family Members ◽  
Financial Education ◽  
Social Changes ◽  
Economic Role ◽  
The Family ◽  
Modern Family ◽  
Economic Function

The economic function of the family is expressed in the provision of material subsistence for its members, in the provision and consumption of subsistence. The paper looks at the post-modern urban family's placement in terms of means of production and its consumption role.How are the functions of the modern family related to providing and meeting the needs of members? Is there a model for economic insurance of family income that builds its stability and sustainability? How to realize the family's desire to raise their standard of living? What are the forms of economic cooperation within the family? These and other issues related to fulfilling the economic role of the family is the subject of an analysis in the paper on the basis of several elements and issues that are constantly relevant.The paper particularly recognizes the importance of financial literacy for family members. How to develop and on what grounds to base people's financial cognition? What is the knowledge to create and manage a family budget as a detailed overview of finances? The formation of economic and financial education is perceived as the basis for improving personal and family finances. At what level and by what methods can the financial knowledge of family members be improved? Financial literacy limits the opportunities for growth, development, and satisfaction of the needs of the family and its members.The paper analyzes the role of the educational institutions in raising the economic and financial literacy of the members of the modern family that is of interest to any society. The economic function of the family is also considered in the context of constant social changes and external influences that limit the possibilities of family members. Only educated and skilled individuals can manage social processes and influence standard-raising.

Australian women with good financial knowledge fare better in divorce

2021 ◽  
pp. 031289622110220
Author(s):  
Tracey West ◽  
Elizabeth Mitchell
Keyword(s):  
Financial Literacy ◽  
Positive Impact ◽  
Financial Education ◽  
Jel Classification ◽  
Financial Knowledge ◽  
Financial Decisions ◽  
Financial Decision Making ◽  
Financial Decision

Divorce dissolves couple households, who likely specialised in household financial decision-making tasks, into singles who need to learn new skills. Financial decisions will be particularly challenging for those newly separated people that are lacking knowledge and confidence. Given the substantive literature supporting the lack of financial knowledge of women in comparison to men, women are likely to be more disadvantaged by this aspect of divorce. We employ the HILDA Survey and find support for the role of financial literacy in improving wealth outcomes in divorce, particularly for women. We find that the positive impact is significant over the long term. This research contributes to knowledge of the role of financial education in building resilience to endure financial shocks. JEL classification: D14; G53; G50; J12; J16

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