FINANCIAL LITERACY AND THE NEED FOR FINANCIAL EDUCATION

2020 ◽  
Author(s):  
Патимат Султановна Батаева ◽  
Ахмед Магомедович Гачаев
Keyword(s):  
Financial Literacy ◽  
Financial Education ◽  
Financial Decisions ◽  
Financial Awareness

В статье рассматривается вопрос повышающейся актуальности осведомленности людей в финансовом отношении, степени знаний в области финансов при принятии финансовых решений The article discusses the issue of the increasing relevance of financial awareness of people, the degree of knowledge in the field of finance when making financial decisions.

Financial Inclusion through Financial Literacy

2022 ◽  
Vol 13 (1) ◽  
pp. 0-0
Keyword(s):  
Financial Literacy ◽  
Uttar Pradesh ◽  
Secondary Data ◽  
Financial Education ◽  
Well Being ◽  
Financial Inclusion ◽  
Financial Decisions ◽  
College Curriculum ◽  
Financial Exclusion ◽  
The Government

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.

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.

The Argument for Teaching Financial Literacy at Higher-Education Institutions

2016 ◽  
Vol 43 (3) ◽  
pp. 349-365 ◽  
Author(s):  
SHERI GEDDES ◽  
TODD STEEN
Keyword(s):  
Higher Education ◽  
Postsecondary Education ◽  
Financial Literacy ◽  
Higher Education Institutions ◽  
Financial Education ◽  
Well Being ◽  
Academic Programs ◽  
Human Flourishing ◽  
Substantial Impact ◽  
Financial Decisions

ABSTRACT Evidence suggests that financial decisions have a substantial impact on human flourishing. This paper examines the arguments for higher-education institutions to take a role in the provision of financial education for their students, families and alumni, who often incur substantial debt and make other sacrifices to obtain a postsecondary education. It also analyzes the current state of financial education at 322 higher-education institutions. While many postsecondary institutions have embraced some aspects of financial education, other higher-education institutions appear reluctant to infuse this multidisciplinary topic into their academic programs. Colleges and universities should consider developing robust programs that boost financial literacy and improve lifelong economic well-being.

scholarly journals RELATIONSHIP BETWEEN FINANCIAL LITERACY AND INDEBTEDNESS: A CASE OF UNIVERSITY OF NAIROBI STUDENTS

2021 ◽  
Vol 8 (65) ◽  
pp. 14993-15007
Author(s):  
Morris Irungu Kariuki
Keyword(s):  
Financial Literacy ◽  
Financial Planning ◽  
Financial Education ◽  
Money Management ◽  
Study Objective ◽  
Financial Decisions ◽  
Descriptive Research ◽  
Study Population ◽  
Level Of Significance ◽  
The University

The study objective was to determine the relationship between financial literacy and indebtedness a case of University of Nairobi Students. The study used a descriptive research design. The study was based at the University of Nairobi, Mombasa Campus. The study population was 2101. The sample size was 336 students. A questionnaire was used to collect the data. SPSS was used to analyze the data. The study attained 83% response rate. Money management, financial planning and financial planning were found to correlate strongly and positively with indebtedness and also significant at 5% level of significance. Therefore, they were found to be major contributors to student indebtedness. The study therefore found that money management, financial planning and financial decisions, affect indebtedness of the students at University of Nairobi. The study concluded that financial literacy affected indebtedness of the students at University of Nairobi. The study recommended that the University of Nairobi should roll out financial education, training, advice and counseling programs targeted at its students.

Financial Literacy and Defined Contribution Pensions

2012 ◽  
Vol 44 (5) ◽  
pp. 280-290 ◽  
Author(s):  
John A. Turner ◽  
Dana M. Muir
Keyword(s):  
Financial Literacy ◽  
Conflicts Of Interest ◽  
Financial Education ◽  
Defined Contribution ◽  
Financial Advice ◽  
Financial Decisions ◽  
Defined Contribution Plans ◽  
Individual Accounts

The increasing importance of defined contribution plans, both as employer-provided plans and as mandatory individual accounts, has increased the responsibility placed on workers for making financial decisions. While early on it was assumed that workers would be capable of managing these accounts, studies have documented that many workers make financial mistakes. Financial education has been used as a remedy, but experience has shown that many workers are not interested and others do not follow up on changes they indicate they intend to make. The use of defaults for investments and increased transparency concerning fees are two further developments that have addressed this problem. Now, attention is turning increasingly to financial advice. However, often financial advisers have conflicts of interest that affect the quality and cost of the advice they provide. Some countries are enacting laws that address this issue.

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.

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.

scholarly journals Foreword for Applied Finance Letters: March 2013

2013 ◽  
Vol 2 (1) ◽  
pp. 3
Author(s):  
Diana Crossan ◽  
Malcolm Menzies
Keyword(s):  
New Zealand ◽  
Financial Literacy ◽  
Financial Education ◽  
School Curriculum ◽  
Tertiary Sector ◽  
Financial Decisions ◽  
Wide Range ◽  
Working Together ◽  
Financial Research ◽  
First Time

In my ten years as Retirement Commissioner (2003 to 2013) I saw the field of financial literacy blossom. During that time there was a growing appreciation of the importance of financial education and financial literacy, though at first they struggled to gain traction. Now they are well on the radar and the OECD coordinates an international network on financial education, encompassing 220 public institutions from over 100 countries. I was delighted to be part of this network as it grew over the years. New Zealand led the way with the Sorted website and development of a National Strategy for Financial Literacy. The strategy’s mission is to ensure that New Zealanders are financially well-educated and can make informed financial decisions throughout their lives. There are four separate areas of focus: to develop quality, extend coverage, work together and share what works.Quality has improved through the development of a competency framework and programmes to upskill teachers and trainers in financial education. The coverage of financial education has grown, for example through its introduction to the New Zealand school curriculum and to workplaces and the tertiary sector. Working together and sharing have been fostered through initiatives such as a community of practice and the inaugural Money Week in September 2012. In July 2013 the biennial financial literacy summit will for the first time take place in Auckland.But our knowledge of “what works” is far from complete and frankly it has taken research and evaluation a while to catch up. I’m thrilled to see this special issue of “Applied Financial Letters” on financial literacy. Much of the existing research base is derived from the northern hemisphere and it’s good to see more work being done in our own Australasian context.Of course financial literacy is just one of the factors that contribute to overall financial wellbeing (another concept crying out for better definition and research). There also needs to be an efficient and effective regulatory environment, a thriving economy (from which individuals derive sufficient income), a diversified market for financial products and services, a trustworthy financial sector, consumer protection and market power, and a welfare “net” for those who fall through the cracks. I commend AUT’s Auckland Centre for Financial Research for its initiative in producing “Applied Financial Letters” and we look forward to future issues on a wide range of topics relating to financial education, financial literacy and financial wellbeing.

scholarly journals Financial literacy and the use of financial services in Serbia

2021 ◽  
pp. 105-114
Author(s):  
Slađana Barjaktarović-Rakočević ◽  
Nela Rakić ◽  
Marina Ignjatović ◽  
Milica Stevanović
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Financial Education ◽  
Middle Income ◽  
Financial Decisions ◽  
Financial Decision Making ◽  
Financial Products ◽  
Decision Making Processes ◽  
Financial Decision ◽  
The Government

Financial services industry has always drawn a lot of attention, from possible investors, those who need financing, the government and general public. Globally, financial opportunities are becoming more attractive, but also more complex. The goal of this study is to analyze the use of financial services in Serbia. We argue that financial education and literacy are preconditions for the use of financial opportunities. Research has shown that people in Serbia are not well informed about how to make sound financial decisions. The reasons why people in Serbia do not use financial products requires to a greater extent and services special attention. In order to test the differences between people in terms of how well informed they are and which services they use and why, we conducted a survey. Our results show that people with salaries higher than 100,000 RSD are well informed but not motivated to invest. Individuals with middle income do not have enough trust and think that they are not well informed about different opportunities. Additionally, we found that men are better informed than women. This paper aims to provide an overview of the use of financial services in Serbia in order to improve financial decision-making processes and understand the different financial opportunities.

scholarly journals Proposal of public policy regarding the integration of financial education classes in Romania

2020 ◽  
Vol 3 (2) ◽  
pp. 7-11
Author(s):  
Baia Olimpia Georgiana
Keyword(s):  
Public Policy ◽  
European Union ◽  
Financial Literacy ◽  
Financial Education ◽  
Digital Age ◽  
Money Management ◽  
The European Union ◽  
Financial Decisions ◽  
Economic Climate ◽  
Per Capita

This policy highlights the importance of financial literacy, the ability to make healthy financial decisions in regards to debt, credit and other expenses, serious matters in this Digital Age. Being financially literate in today’s economic climate is more important than ever. Understanding finances can help individuals make better money management decisions, budget money properly, adequately save for college, and be financially prepared for retirement. Romania has the lowest number of companies per capita, most of the existent companies are not financially active and rarely do make a profit, which is a concerning statistic for a state member of the European Union. The general objective of this public policy is to integrate financial literacy classes into the Romanian educational curriculum.

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