Financial literacy and financial education in Australia and New Zealand

2021 ◽  
pp. 454-469
Author(s):  
Andrew C. Worthington ◽  
Tracey West
Keyword(s):  
New Zealand ◽  
Financial Literacy ◽  
Financial Education

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 How effective is financial education?

2007 ◽  
Vol 3 (3) ◽  
Author(s):  
Alison O'Connell
Keyword(s):  
Public Policy ◽  
New Zealand ◽  
Financial Literacy ◽  
Financial Education ◽  
International Reputation ◽  
Low Levels

New Zealand has an international reputation for its early promotion of financial education and information. Governments in many other countries are now sponsoring financial education programmes in efforts to improve apparently low levels of financial literacy. But despite it being such a hot public policy topic, there has been little evaluation of the effectiveness of financial education.

Financial literacy and retirement planning in New Zealand

2011 ◽  
Vol 10 (4) ◽  
pp. 619-635 ◽  
Author(s):  
DIANA CROSSAN ◽  
DAVID FESLIER ◽  
ROGER HURNARD
Keyword(s):  
New Zealand ◽  
Financial Literacy ◽  
Pension System ◽  
Dominant Role ◽  
Adult Population ◽  
Financial Education ◽  
Financial Knowledge ◽  
Public Pension System ◽  
The People ◽  
General Adult Population

AbstractWe compare levels of financial literacy between the general adult population of New Zealand, people of Māori ethnicity, and people of Ngāi Tahu, a Māori tribe that is providing financial education to its members. While the level of financial knowledge of Māori people is generally lower than for non-Māori (controlling for demographic and economic factors), there is little difference between the financial knowledge of the people of Ngāi Tahu and other New Zealanders. Moreover, we find that financial literacy is not significantly associated with planning for retirement. This could reflect the dominant role of New Zealand's universal public pension system in providing retirement income security.

Financial literacy and its determinants: the case of rural farm households in Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Martinson Ankrah Twumasi ◽  
Yuansheng Jiang ◽  
Salina Adhikari ◽  
Caven Adu Gyamfi ◽  
Isaac Asare
Keyword(s):  
Developing Countries ◽  
Financial Literacy ◽  
Financial Education ◽  
Policy Implications ◽  
Farm Households ◽  
Community Group ◽  
Data Set ◽  
Content Type ◽  
Wide Range ◽  
Rural Dwellers

PurposeThis paper aims to examine the determinants of rural dwellers financial literacy in Ghana.Design/methodology/approachA cross-sectional primary data set was used to estimate the factors influencing rural farm households' financial literacy using the IV-Tobit model.FindingsThe findings reveal that most rural residents are financially illiterate. The econometrics model results depicted that respondents' socioeconomic and demographic characteristics such as gender, income, age and education significantly affect financial literacy. Again, respondents who are risk seekers and listen or watch education programs are more likely to be financially literate.Research limitations/implicationsThe paper examined the determinants of rural dwellers financial literacy in four regions in Ghana. Future research should consider all or many regions for an informed generalization of findings.Practical implicationsThis paper provides evidence that rural dwellers are financially illiterate and it would require the policymakers or non-governmental organizations (NGOs) to establish a village or community group that comprises a wide range of bankers and government officials to help rural dwellers acquire some financial skills. Also, the positive relationship between media (whether respondent watches or listens to educational programs) and financial literacy implies that policymakers should focus on improving individuals' financial knowledge through training programs and utilize the media as a channel to propagate financial education to the public.Originality/valueAlthough previous studies have examined the determinants of financial literacy, little is known in developing countries and, in particular, rural communities. The authors fill this gap by contributing to the scanty existing literature in developing countries in several ways. First, this is the first study to examine the financial literacy level of rural dwellers in Ghana. Second, to not undermine the credibility of the estimation results, this study addresses the potential endogeneity issue, which other researchers have not adequately recognized. Finally, the study expands the scant literature on the subject and provides critical policy implications that will help policymakers formulate financial market policies that will contribute to rural dwellers financial literacy enhancement.

Living beyond one’s means: evidence from Malaysia

2015 ◽  
Vol 43 (1) ◽  
pp. 2-18 ◽  
Author(s):  
Yiing Jia Loke
Keyword(s):  
Low Income ◽  
Financial Literacy ◽  
Financial Distress ◽  
Financial Management ◽  
Practical Knowledge ◽  
Financial Education ◽  
Financial Knowledge ◽  
Content Type ◽  
Explanatory Variables ◽  
Financial Behaviour

Purpose – The purpose of the paper is to identify the determinants of the probability of living beyond one’s means. The paper also explores the coping mechanisms of those financially distressed as well as the debt taking behaviour of consumers. Design/methodology/approach – The study uses data obtained from the OECD International Network on Financial Education pilot study on Measuring Financial Literacy in 2010 for the case of Malaysia. A logistic regression model is used to identify the main determinants of the probability that a consumer will live beyond his/her means. The analysis is carried out by using a set of socio-economic factors and the individual’s financial behaviour and attitudinal characteristics as explanatory variables. Findings – The findings indicate that low income and seasonal income earners are more vulnerable to financial distress. Furthermore, having a higher education, higher financial knowledge and prudent financial behaviour and attitude do not necessarily translate into better financial management. Family and friends provide the main source of financial assistance in times of need. Research limitations/implications – The assessment of financial knowledge should go beyond individual’s knowledge on financial concepts and theories. Practical knowledge on financial and cash flow management should be assessed. Practical implications – The study reiterates the importance of financial education. It is imperative to include financial education as part of the schools’ curriculum and also to be incorporated as part of the Continuous Professional Development modules for working adults. Originality/value – The study is based on the first nationwide study of consumer finances in Malaysia. It contributes to the literature by integrating financial behaviour and attitudinal factors into the analysis of the ability of individuals to live within their means. The findings also show the limitations of the existing self-assessment of financial behaviour and attitude and the assessment of financial knowledge.

scholarly journals Some Insights Into Financial Literacy Among Undergraduate Students: A Case of Bosnia and Herzegovina

2021 ◽  
Vol 12 (3) ◽  
pp. 103
Author(s):  
Jasmina Okicic ◽  
Meldina Kokorovic Jukan ◽  
Mensur Heric
Keyword(s):  
Undergraduate Students ◽  
Financial Literacy ◽  
Sampling Technique ◽  
Financial Education ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Financial Attitudes ◽  
Significant Difference ◽  
Financial Behaviour ◽  
The Relationship

The purpose of this research is to provide some insights into financial literacy among undergraduate students focusing primarily on the relationship between financial knowledge, financial attitudes and financial behavior and on possible gender and financial education gap in financial literacy. Using the purposive sampling technique, data collection was carried out from April to June 2020, yielding a sample of 1,046 valid responses. To gain a better understanding of the relationship between financial behaviour, financial attitudes and financial knowledge, we, primarily, use exploratory factor analysis and multiple regression model. The research findings have revealed several important issues. First, findings have suggested that financial knowledge, financial attitudes and gender may be considered as an antecedent of the financial behaviour of undergraduate students. Second, findings have also suggested a statistically - significant difference between the financial literacy of undergraduate students concerning their exposure to formal financial education.

scholarly journals "FINANCIAL EDUCATION IN EASTERN EUROPEAN COUNTRIES"

2020 ◽  
Vol 13(62) (2) ◽  
pp. 125-132
Author(s):  
Nicoleta Geanina Bostan
Keyword(s):  
Financial Literacy ◽  
Population Policy ◽  
Financial Education ◽  
European Countries ◽  
Eastern European ◽  
The European Union ◽  
Non Profit ◽  
East European ◽  
The Status ◽  
Eastern European Countries

"In the context of economic disparities among the countries of the European Union, the paper analyses the status of financial literacy for people living in East European countries, the way to increase financial knowledge through financial education and finally leading to a higher and more effective financial inclusion. Economic gaps are a major challenge for Eastern European countries. Their recovery can be done through efficient public policies harmonized with actions to increase the degree of financial education of the population. Policy makers, public institutions and non-profit organisation involved in financial education matters can benefit from this analysis and conclusion just as much as researchers. "

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