scholarly journals Financial Literacy Level of Individuals and Its Relationships to Demographic Variables

2017 ◽  
Vol 8 (3) ◽  
pp. 19-26 ◽  
Author(s):  
Murat Yıldırım ◽  
Fatih Bayram ◽  
Ahmet Oğuz ◽  
Gülay Günay
Keyword(s):  
Financial Literacy ◽  
Demographic Variables ◽  
Economic Conditions ◽  
Financing System ◽  
Strong Basis ◽  
Iron And Steel ◽  
Financial Behaviors ◽  
Financial Decisions ◽  
Standards Of Living ◽  
Literacy Level

Abstract Families act in an environment of financing system which includes the pressure of the economic powers. Under these economic conditions, standards of living of individuals who fail to take optimal financial decisions and to exhibit due financial behaviors undergo some change. Individuals’ self-consciousness on financial issues will not only prepare them for prospective hard economic conditions that may emerge in the future but also supports the development of the country on strong basis. In this perspective, the awareness of financial literacy will help to use the limited sources more affectively. Recently in this economic pressure financial literacy has become an increasingly important topic. The main purpose of this study is examining individual’s financial literacy level and determining the relationship between demographic variables and financial literacy. Participants in the study consist of individual who are employees in iron and steel industry and dwelling in Karabuk, Turkey. A total of 304 employees are participated in the study on a voluntary basis. Data were collected through a demographic information form, Financial Literacy Index developed by Van Rooji et al. (2011). Financial Literacy Index includes two sections: basic financial literacy (5 items) and advantage financial literacy (11 items). Results indicated that only 8.9% of the participants have correctly answered the five basic financial literacy items. The proportion of the correct answered in advantage financial literacy section (11 items) was too low (0.3%). The statistical analyses displayed that from demographic variables only education and monthly income was important determinant, both of basic and advantage financial literacy (p<0.05). The results of this research have significant implications for individuals, policymakers and educators in their search of strategies for improving individuals’ financial literacy level.

Factors Affecting Financial Literacy of Vietnamese Adults: A Case Study for Hanoi and Nghe An

2017 ◽  
Vol 33 (2) ◽  
Author(s):  
Tue Nguyen Dang
Keyword(s):  
Higher Education ◽  
Multiple Regression ◽  
Financial Literacy ◽  
Urban Areas ◽  
Logistic Models ◽  
Factors Affecting ◽  
Financial Behaviors ◽  
Financial Decisions ◽  
Literacy Level

This research examines the factors affecting the financial literacy of Vietnamese adults. Using a sample of 266 observations of adults in 2 big cities in Vietnam (Hanoi and Vinh in Nghe An Province), the author evaluates the literacy level of adults in these urban areas. The financial literacy of the interviewed people is low. The multiple regression results show that lower financial literacy levels associate with higher age and married status and higher financial literacy levels associate with higher education, more family members, the person making financial decisions and the person attending a useful financial course. This research also explores the association between financial literacy and financial behaviors of individuals employing logistic models. It is found that higher financial literacy associates with less probability of overspending and higher probability of saving money and careful spending. Higher financial literacy is also found to associate with higher probability of opening a savings account and making various investments. 

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.

scholarly journals Trends of standard of living preferences of economics university students as a result of the economic crisis

2021 ◽  
Vol 190 (5-6(2)) ◽  
pp. 181-195
Author(s):  
Zoltán Zéman ◽  
◽  
Botond Kálmán ◽  
Judit Bárczi ◽  
◽  
...  
Keyword(s):  
University Students ◽  
Economic Crisis ◽  
Financial Literacy ◽  
Important Variable ◽  
Demographic Variables ◽  
Standard Of Living ◽  
Financial Decisions ◽  
Economics Students ◽  
Questionnaire Research ◽  
Short Time

One of today’s central subject ranges is the theme of personal financial decisions. Standard of living preferences are also closely related to these. The generation that will soon enter the labor market still has these questions in front of them. This is the reason why we focused on university students in our study. We asked Hungarian, Austrian, and Slovak economics students in our questionnaire research. We conducted the study in 2 successive years, in the autumn of 2019 and the autumn of 2020. The first phase of the coronavirus pandemic happened between the two occasions. We examined the received responses along the lines of demographic variables, with the application of linear modelling and decision trees. The year was proven to be the most important variable, which indicates that the crisis caused by the coronavirus had a significant effect on the ideas of students regarding a better standard of living. Our results not only highlight the importance of financial literacy, but also show that personal opinions transform in a crisis regarding the criteria that embody a higher standard of living. It appears that a severe economic crisis increases the sense of responsibility and the importance of future security. Of course, because of the short time that passed, the practical verification of our findings will have to wait.

scholarly journals DETERMINANTS OF THE LEVEL OF FINANCIAL LITERACY IN TURKEY

2021 ◽  
Vol 10 (1) ◽  
pp. 9-30
Author(s):  
Hatice Düzakın ◽  
Süreyya Yılmaz
Keyword(s):  
Financial Literacy ◽  
Household Income ◽  
Logit Model ◽  
Demographic Variables ◽  
Financial Knowledge ◽  
Explanatory Variables ◽  
Status Number ◽  
Literacy Level ◽  
Financial Behaviour ◽  
And Gender

The main objective of this study was to explain individuals’ financial literacy levels through socioeconomic and demographic variables. A random sample of 1000 participants was recruited from Turkey. As an indicator of the financial literacy level, a measure with three constructs was adopted: financial attitude, financial behaviour and financial knowledge. Logit model was estimated from these explanatory variables: gender, age, marital status, number of family members, education, income, number of persons with income, household income and working conditions. In the logit model results, the effect of gender, age and education was statistically significant and positive. The results emphasized that there is a relationship between financial literacy level and gender, age and education. Additionally, the results of this study indicated that the level of financial literacy is 52.9% in Turkey.

scholarly journals Financial Well-being of State and Local Government Retirees in North Carolina

2020 ◽  
pp. 184-206
Author(s):  
Robert L. Clark ◽  
Siyan Liu
Keyword(s):  
North Carolina ◽  
Financial Literacy ◽  
Financial Management ◽  
Well Being ◽  
Retirement Savings ◽  
Management Skills ◽  
Financial Decisions ◽  
Standards Of Living ◽  
State And Local Government ◽  
State And Local

This chapter analyzes how low- and moderate-income retirees utilize retirement savings, and how financially fragile they are, relying on survey data on public employees in North Carolina. We investigate whether retirees make systematic errors when they manage their assets so as to maintain their standards of living, and whether there are notable differences in financial management skills across subgroups. We also ask whether financial literacy is positively associated with lower rates of committing such errors and, and whether low-income households have lower levels of financial literacy leaving them likely to make poor financial decisions. We show that many retirees have no emergency cash, and one quarter maintain high-interest debt while leaving low-return funds in retirement saving plans. Suboptimal debt holding is associated with lower household income and lower financial literacy.

Financial Literacy among Rural Women in Darbhanga District:An Empirical Evidence.

2018 ◽  
Vol 5 (1) ◽  
Author(s):  
Prof. F.B. SINGH ◽  
POOJA JHA
Keyword(s):  
Empirical Evidence ◽  
Rural Women ◽  
Financial Literacy ◽  
Rural Population ◽  
Current Status ◽  
Financial Decisions ◽  
The World ◽  
Current Scenario

Financial Literacy is defined as the possession of knowledge and understanding of elementary financial concepts which results in developing the ability to make conversant, poised and effective financial decisions. In current scenario, the concern to increase the level of financial literacy among common masses has been witnessed by many countries of the world through various Financial Literacy center, programme and initiatives but all these programmes and policies are crafted and implemented taking into consideration the male as ultimate receiver and so women who constitute half of the rural population are lagging behind in terms of a making informed financial decisions and financial wellbeing. Hence Strategies should be formulated taking into consideration the women as the main spectators. This paper is an attempt to analyze the current status of the financial literacy among the rural women of the Darbhanga district.

Using financial board games in teaching financial literacy at general secondary education institutions

2021 ◽  
pp. 146-157
Author(s):  
Vitalii Pysmennyi
Keyword(s):  
Secondary Education ◽  
Financial Literacy ◽  
Educational Games ◽  
Educational Process ◽  
Conservation Of Resources ◽  
Board Game ◽  
Environmentally Conscious ◽  
Financial Decisions ◽  
Clear Explanation ◽  
Active Observation

The article substantiates the ways of using educational games to teach financial literacy at level of secondary school in Ukraine. The methodology of conducting original financial games is described in brief and the influence of the latter on shaping a financially literate next generation is proved. The article presents an overview of the «Ponzi Scheme» board game, which was created to provide children with a clear explanation of Ponzi schemes and risks of monetary losses inherent to such illegal means of moneymaking. It is established that in addition to important educational aspects, the children develop a habit of making informed financial decisions in the course of playing. Research has shown that nowadays fraudsters have become so convincing that it is very difficult to distinguish between them from the real employees of financial institutions. The «Financial Fraudsters» board game enables players to learn specific communicative skills necessary to avoid various types of financial fraud, therefore the authors substantiate the methodology of enacting it. The article considers the peculiarities of playing the «Economy is Alive» board game, which is designed to demonstrate the human impact on the environment and the need for conservation of resources. The game makes it possible to master the comprehension of the relationships between objects and phenomena and creates the basis for environmentally conscious upbringing of children by satisfying their curiosity and involving them in active observation of the environment. Approbation of these games has shown that they organically combine the theory that makes learning exciting and the practice that clarifies the knowledge acquired by the educational process participants. In view of the research results, it is determined that under modern conditions edutainment must become a significant supplement to the classical methods of teaching financial literacy within the system of general secondary education in Ukraine.

Struggling to make ends meet: can consumer financial behaviors improve?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lisa K. Meneau ◽  
Janakiraman Moorthy
Keyword(s):  
Financial Literacy ◽  
Financial Management ◽  
Group Analysis ◽  
Self Control ◽  
Thinking Styles ◽  
Financial Health ◽  
Content Type ◽  
Financial Behaviors ◽  
Financial Products ◽  
The Impact

PurposeThe purpose of the study is to examine the following two research objectives. The first was to examine the predictive relationships that consumer characteristics of financial literacy, thinking styles and self-control have with a consumer's financial behaviors. The second goal was to ascertain financial management products' ability to aid those consumers who need it the most by weakening the predictive effects of consumer traits on financial behaviors.Design/methodology/approachThe study employed a web-based survey to gather information. The measurement and structural models were analyzed using generalized structured component analysis (GSCA), a component-based structural equation model. The mediation effect of self-control is assessed using the GSCA. The conditional mediation of demographic variables and use of personal financial management products are evaluated using multi-group analysis (MGA) in GSCA.FindingsAntecedents, financial literacy, thinking styles and self-control consumer characteristics are predictors of financial behaviors. However, self-control plays a more prominent role as a mediator between the other variables, strengthening the overall relationship. Also, financial products can have a beneficial moderation effect assisting those consumers who need them the most.Practical implicationsThese insights help in creating target specific financial literacy strategies to influence consumers' financial behaviors. Also, there is a need to develop mechanisms to influence a consumer's self-control and thinking styles to improve financial behavior. In conjunction with other initiatives, the impact of financial literacy has a greater effect on financial behaviors. Further, the insights assist financial institutions and financial technology firms in offering and creating products to help customers make better financial decisions and improve their financial behaviors.Social implicationsThe research addressed a significant global issue – consumer financial health. The Great Recession and the COVID-19 recession highlight the need to focus on the consumer and efforts to improve their financial health.Originality/valueThis research highlighted the mediating role of self-control and suggested that existing and future financial products can positively influence consumer behavior drivers.

scholarly journals Approaches Of Increasing Financial Literacy Of The Population During The Economic Digitalization In Uzbekistan

2021 ◽  
Vol 58 (1) ◽  
pp. 86-91
Author(s):  
Farkhod Ozodovich Abdullaev, Nurulla Bakhromovich Fayzullaev
Keyword(s):  
Financial Literacy ◽  
Developed Countries ◽  
Digital Economy ◽  
Literacy Level ◽  
Developing And Developed Countries

This article analyzes the importance of financial literacy of the population in the process of transition to the digital economy. The article also analyzes people's behavior with financial activities and processes, the level of financial literacy in developing and developed countries and gives recommendations and proposals which are directing at increasing the financial literacy level within the country.

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