Demographic characteristics influencing financial wellbeing: a multigroup analysis

PurposeThe study attempts to understand the factors impacting the financial wellbeing of IT employees in India using confirmatory factor analysis (CFA). It utilizes well-established survey instruments to assess the impact of financial literacy, financial behaviour and financial stress on financial wellbeing. The study also attempts to understand the role of demographic factors (age, gender, monthly income, job category and work experience) in determining financial wellbeing through multigroup analysis.Design/methodology/approachStructured equation modelling (SEM) is used to study the link between the determinants. The study also attempts to understand the role of demographic factors (age, gender, monthly income, job category and work experience) in determining financial wellbeing through multigroup analysis. Data used for the analysis covers 237 employees working in the IT sector.FindingsWhile financial literacy and financial behaviour have a significant positive impact on financial wellbeing, financial stress has a significant negative impact. Financial behaviour and financial stress were found to have a mediating role in the relationship between financial literacy and financial wellbeing. The demographic variables significantly moderate the relationship between the factors leading to financial wellbeing.Originality/valueThe results show the need for financial wellbeing programs to focus on enhancing financial knowledge and improving financial planning. Further, it suggests offering customized financial wellbeing programs based on the employee's demographic characteristics rather than following a “one program, fits all” approach.

Mapping the Literature on Financial Behavior: a Bibliometric Analysis Using the VOSviewer Program

Objective of the article is to study the current state of researches of financial behaviour. The article is conceptual and based on the use of the methodology of the bibliometric analysis. The analysis is based on the data retrieval functionalities of Scopus and Web of Science platforms. Is used the toolkit of the VOSviewer program, network visualization of keywords in scientific publications. Findings: The number of publications that directly study the nature and features of the financial behavior formation of various economic agents is insignificant, but is constantly growing. An important role in this process is played by digitalization processes of financial services, which have an important impact on the models transformation of both financial behavior of economic agents, and changes in the model of the financial services provision to customers by financial institutions.

The factors affecting Arabica coffee farmers behaviour in Aceh Tengah Regency

Arabica coffee is one of the leading export commodities that have high economic value. The study aims to describe the financial behaviour of arabica coffee farmers and to find out what factors influence the financial behaviour of arabica coffee farmers in Aceh Tengah Regency. The sample in this study was 147 samples taken by simple random sampling. This study uses descriptive statistics and ordinal logistic regression. The results of descriptive statistics show that the financial behaviour of arabica coffee farmers in Aceh Tengah Regency is good enough, with a percentage of 57%. This condition is not optimal in managing their finances because of the 9 statements used to measure financial behaviour, only 5 statements have been fulfilled. The results of the ordinal logistic regression have a significant effect at the 5% level (< 0.05), namely the variable financial knowledge in the low category (X1)1 0.0034, financial attitude in the fairly good category (X3)2 0.006, an elementary school education (X4)1, 0.012 junior high schools (X4)3 0.011 and high school (X4)4 0.002 on financial behaviour and income variable (X2) > 0.05, so it does not significantly affect the financial behaviour of arabica coffee farmers in Aceh Tengah Regency.

The Effect of Islamic Financial Literacy and Financial Inclusion toward Financial Planning among Millennial: Financial Behaviour as an Intervening Variable

Islamic financial literacy and financial inclusion are important for improving the living condition of people. Combination of Islamic financial literacy understanding and high financial inclusion index will affect the behavioral ability of people in making financial planning. In Indonesia, Islamic financial literacy and inclusion are still low, not only for youngsters but also among adults. Even though good knowledge and access to Islamic finance will help millennials to be able to identify financial products and services as their financial planning. The aim of this study is to describe the influence of Islamic financial literacy and financial inclusion on financial planning by using financial behaviour as a intervening variable. This study is descriptive quantitative research. 96 respondents are involved in the study directly through a survey method. This study used 2 (two) stages of analysis. The first stage is to find the level of respondent Islamic financial literacy. The last stage is path analysis to determine the influence of each variable. Analysis results have shown that Islamic financial literacy has no direct impact on financial planning. However, Islamic financial literacy and financial inclusion have a significant impact on financial behaviour. Furthermore, the financial behaviour has mediated the relationship between Islamic financial literacy and financial inclusion with financial planning. It shows this affects toward financial planning is 26,4%.

The Impact of Financial Knowledge, Financial Self-Efficacy, and Saving Behaviour on Junior High School Students: A Case Study of Rural and Urban Area Students

Financial knowledge, financial behaviour, financial self-efficacy, and financial behaviour are needed to make the right financial decisions. This study determines the differences in rural and urban junior high school students’ financial knowledge, financial behaviour, financial self-efficacy, and saving behaviour. This study also finds the influence of financial knowledge, financial self-efficacy, and saving behaviour on students’ financial behaviour. This study used the t-test, independent t-test and multiple linear regression methods to analyse the data obtained in the survey. The respondent of the survey is junior high school students aged 11 to 15 years. Data were obtained from the results of questionnaires filled in online by students. The results showed differences in financial knowledge, financial behaviour, and financial self-efficacy in rural and urban junior high school students. The findings in this study show that the financial behaviour of junior high school students in rural and urban areas shows the same results. Our research shows that demographics, financial knowledge, and financial self-efficacy influence students’ financial behaviour. However, financial behaviour is not influenced by students’ saving behaviour.

The Level of Financial Literacy among Muslim Millennial Students

Millenials, also known as Generation Y, are a demographic cohort who were born between early 1980’s and late 1990’s and are reportedly to be active users of FinTech. At the same time, recent research documents the problems Millenials are prone to inadequate financial knowledge, an unsatisfactory current financial situation, and misuse of retirement accounts. The last segment is particularly very important since life expectancy today is rising, while pension and social welfare systems are being strained. In this paper we examine the level of financial literacy among millennial students who at the same time active users of financial technology. The data was collected via questionnaire distribution to International Islamic University Malaysia (IIUM) students in the campus. From all collected responses 217 which matches the research criteria such as students who belong to Millennial generation were selected for analysis. To measure financial literacy level, we use the “Big Three” method designed by Lusardi and Mitchell (2011). In our study where respondents are university students, findings suggest that 47% out of all 217 respondents has a satisfactory level of financial literacy. The level of financial literacy is higher among post-graduate students and engineering students. Mobile payment users comprise 64% of respondents and only 24% among them is financially literate. It is also noteworthy that 93% of respondents do not have a retirement account. These findings are very important since the study is conducted in a university environment where 100% of the respondents are involved in higher education. It is crucial to teach finance subjects in all faculties and there is a dire need to establish an institution which will regularly conduct a nationwide survey to access the level of financial literacy and financial behaviour of youth to avoid the financial collapse of Generation Y.

FINANCIAL ADVICE, LITERACY, INCLUSION AND RISK TOLERANCE: THE MODERATING EFFECT OF UNCERTAINTY AVOIDANCE

The aim of this paper is to investigate the determinants of financial advice with a special focus on the cultural role in the influence of risk tolerance on seeking advice for financial issues. Financial literacy is covered by financial attitude, behaviour and knowledge. Financial inclusion is the other factor considered in the conceptual framework, as an indicator which can enhance both financial behaviour and financial advice. The research is based on primary data collected in two European nations, manifesting differences in culture, which gives the possibility to test the uncertainty avoidance role in the above relationship. This particular focus is the novelty of this work, as it sheds light on the importance of culture while designing policies with the aim to enhance individuals’ financial literacy and advice. The hypotheses are tested by using Partial Least Square- Structural Equation Modelling (PLS-SEM) method. It was found that financial behaviour improves as financial inclusion gets better, along with financial attitude and knowledge. Furthermore, financial advice is positively influenced by financial inclusion and risk tolerance and partly by financial literacy. Additionally, findings demonstrate that culture does matter in explaining differences between countries. Culture in this paper is represented by uncertainty avoidance, as one of the Hofstede’s culture dimension. Individuals from countries that manifest a very high preference for avoiding uncertainty reflect a negative relationship between risk tolerance and financial advice. The paper offers useful insights for policymakers and industry leaders in understanding the most influential factors on financial advice. This enables them to scheme policies and services aimed at equipping citizens with knowledge and skills to make the best use of their financial resources.