Building Financial Knowledge Is Not Enough: Financial Self-Efficacy as a Mediator in the Financial Capability of Low-Income Families

2018 ◽  
pp. 12-32
Author(s):  
David W. Rothwell ◽  
Mohammad N. Khan ◽  
Katrina Cherney
Keyword(s):  
Low Income ◽  
Self Efficacy ◽  
Financial Knowledge ◽  
Financial Capability ◽  
Low Income Families

scholarly journals Psychological Difficulties Mediate and Self-Efficacy Moderates the Relationship Between Family Cumulative Risk and Hope Among Chinese Children From Low-Income Families

2021 ◽  
Vol 12 ◽  
Author(s):  
Xiayun Yin ◽  
Dongfang Wang ◽  
Zhihua Li ◽  
Yuesheng Huang
Keyword(s):  
Low Income ◽  
Self Efficacy ◽  
Risk Index ◽  
Cumulative Risk ◽  
Chinese Children ◽  
Mediating Role ◽  
Ocean Effect ◽  
Psychological Difficulties ◽  
Low Income Families ◽  
The Relationship

This longitudinal study investigated the role of psychological difficulties and self-efficacy in the relationship between family cumulative risk and hope among children from low-income families. The participants were 392 Chinese children from low-income families; the study extended for 2 years, and participants completed data that were collected with the following questionnaires: the Family Cumulative Risk Index, Children's Hope Scale, Strengths and Difficulties Questionnaire-Difficulties subscale, and General Self-efficacy Scale. The results demonstrated that psychological difficulties played a mediating role in the relationship between family cumulative risk and hope; specifically, family cumulative risk predicted hope of children via psychological difficulties. Self-efficacy moderated the relationship between psychological difficulties and hope. This moderation supported “a drop in the ocean effect”; the protective effect of high self-efficacy worked only when psychological difficulties were at low levels. When psychological difficulties were at high levels, the buffering effect of self-efficacy on family cumulative risk was gradually weakened and eventually lost.

Financial Capability and Economic Security among Low-Income Older Asian Immigrants: Lessons from Qualitative Interviews

Social Work ◽  
2019 ◽  
Vol 64 (3) ◽  
pp. 224-232 ◽  
Author(s):  
Yunju Nam ◽  
Margaret S Sherraden ◽  
Jin Huang ◽  
Eun Jeong Lee ◽  
Mary Keovisai
Keyword(s):  
Los Angeles ◽  
Low Income ◽  
Financial Services ◽  
Financial Management ◽  
Economic Security ◽  
Asian Immigrants ◽  
Financial Knowledge ◽  
Management Skills ◽  
Financial Capability ◽  
Financial Barriers

Abstract This article examines financial capability among low-income older Asian immigrants, using data from in-depth interviews with 13 participants in a subsidized employment program in Los Angeles. Overall, respondents present a portrait of economic insecurity. Qualitative analyses indicate that respondents perceived little need to improve their financial knowledge and management skills because they had “no money to manage.” Most respondents lacked either financial knowledge or financial management skills, which resulted in substantial financial losses among some respondents. Mistrust of financial institutions (“Banks are always vampires”) and other financial barriers (for example, lack of credit history) blocked respondents’ access to formal financial services. In some cases, ethnic financial resources (for example, ethnic banks) reduced the effects of such barriers. There is evidence that respondent financial knowledge and management skills may improve after opening a bank account, suggesting a potential role for financial access in expanding financial capability. Findings demonstrate the importance of financial capability–building interventions for low-income older Asian immigrants. Social workers should be equipped with financial literacy and in-depth understanding of financial needs, perceptions, values, behaviors, and resources of this population.

scholarly journals The Impact of Financial Education Participation on Financial Knowledge and Efficacy: Evidence from the Canadian Financial Capability Survey

2017 ◽  
Author(s):  
David W. Rothwell ◽  
Shiyou Wu
Keyword(s):  
Self Efficacy ◽  
Age Groups ◽  
Financial Education ◽  
Cognitive Outcomes ◽  
Financial Knowledge ◽  
Future Research ◽  
Financial Capability ◽  
Education Participation ◽  
Nationally Representative ◽  
The Impact

Very little is known about how participation in financial education affects cognitive outcomes such as financial knowledge and self-efficacy. We used two waves of the nationally representative Canadian Financial Capability Survey along with propensity score matching to compare outcomes between persons who had taken a financial education course to those who had not. After matching and adjusting for demographic and economic factors, financial education participants exhibited significantly higher financial knowledge and financial self-efficacy scores. Post-estimation analysis showed that higher overall financial knowledge scores of participants were at least partially driven by higher scores of men. There was no difference in knowledge scores for women across all age groups. Financial education participants had higher efficacy scores for both genders and across age. Future research into the impact of financial education ought to consider cognitive dimensions in addition to strictly behavioral and financial outcomes.

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