An exploratory analysis of visualization techniques and tools for financial education

Forte, K. S., Taylor, E. W., & Tisdell, E. J. (Eds.). (2014). Financial Literacy and Adult Education. New Directions for Adult and Continuing Education, 141. San Francisco, CA: Jossey-Bass. 112 pp. ISBN: 978-1118-85003-9 (paperback) With the recent economic downturn, high unemployment rates, changes in employer retirement plans, increased health care costs, and decreased savings, it is now more important than ever that individuals be financially literate. The purpose of Financial Literacy and Adult Education, edited by Forte, Taylor, and Tisdell (2014), is to highlight how adult education theories and ideas can be utilized to teach financial literacy, thus improving an individual's financial stability. They draw from scholars in the fields of adult education and financial literacy to illuminate the opportunity to inform one another. The first four chapters highlight factors that affect financial learning. In Chapter 1, Forte encourages financial educators to consider sociocultural issues when developing adult financial education programs. She suggests financial educators engage in culturally responsive teaching, which emphasizes learning about learners, matching the materials and lessons to learners' needs, demonstrating cultural caring, and building a learning community. Buckland, in Chapter 2, examines how financial exclusion (e.g., being unable to rely on mainstream banks for financial services) creates structural barriers that can reinforce poverty. He illustrates how situated learning theory could provide a foundation for understanding adults' learning and recommends improving community relationships, providing greater access to mainstream banks and financial tools to create a better learning experience and ultimately assist low-income individuals. In Chapter 3, Way explores the theory of reasoned action, the theory of planned behavior, and the transtheoretical model of change as tools to assist educators in structuring financial education to yield more productive results. Way details the impact of financial interventions focusing on interpersonal interactions, community and organizational settings, and policy and systems, and presents an ecological model that illustrates how interventions can modify behavior. Jarecke, Taylor, and Hira, in Chapter 4, explore financial literacy education for women and suggest instructional strategies to meet their unique needs. English, in Chapter 5, urges adult educators to examine their own assumptions and to critically reflect on financial education programs. …

PurposeThis study examines the association between financial education and budgeting behavior among college students. Under the guidance of the extended theory of planned behavior, we use a comprehensive measure of budgeting behavior and explore mediating factors between financial education and budgeting behavior.Design/methodology/approachFinancial education was measured by both frequency and intensity of taking courses in finance and economics in college. Data from a sample of college students across China were analyzed using structural equation modeling and serial mediation analysis to explore the mediating roles of attitudes, subjective norms, perceived control and budgeting intentions in this relationship between financial education and budgeting behavior.FindingsBudgeting intentions alone did not mediate the relationship between financial education and budgeting behavior. However, the serial mediation involving attitudes, subjective norms and budgeting intentions was significant.Practical implicationsThe findings of this study have significant implications for financial educators, universities, governments and families. Financial educators should prioritize budgeting in curricula and aim to enhance students’ budgeting attitudes and intentions. Universities should enhance their financial education offerings, while governments and families should foster supportive environments and positive norms and attitudes around budgeting.Originality/valueThis research contributes a nuanced measurement of budgeting, analyzes the link between financial education and budgeting behavior among college students and highlights the roles of various components of the theory of planned behavior. It extends the theory by identifying how financial attitudes, subjective norms and budgeting intentions mediate the relationship between financial education and budgeting behavior.

The Intergenerational Transfer of Money Attitudes and Behaviors

Financial literacy involves learning to be an informed and effective financial decision maker, requiring adaptable skills that can adjust to age, health, income, wealth, needs, and personal goals. Financial education can provide financial knowledge which can inform financial literacy. Research shows that women test as less financially literate than men (Prast & van Soest, 2016). As women control the majority of wealth and make the majority of financial decisions, this study explored the financial advisors? and financial services companies? practice of providing financial education to women. The stakeholders of focus were financial advisors who had client facing practices where financial education for women was a part of their business model. The purpose of this study was to explore the knowledge, motivation, and organizational influences that impact financial advisors? ability to provide financial educational programing to female clients. The study explored the professional practices of financial advisors to determine how client access to financial education best fit into their business models, and if there was ongoing engagement in financial education by female clients. The study also explored the impact of organizational support from financial services companies for financial education for women. The study methodology was qualitative and consisted of interviews with financial advisors, interviews with financial services executive leadership, and analysis of relevant artifacts and documents. The study culminated with recommendations to support financial advisors in their practice of delivering financial education to women with the goal of improving their financial literacy, illuminating the role of private sector financial services providers.

The purpose of this report is to provide resources to financial educators working with consumers surrounding intergenerational influences in the development of financial attitudes and behaviors. Financial decisions are influenced by our attitudes, which are highly influenced by cultural issues, including family, ethnicity, gender, and socioeconomic status. Understanding these influences is important as financial educators implement effective intervention techniques. This paper was completed under contract with the Consumer Financial Protection Bureau's Office of Financial Education, in support of its mission to improve the effectiveness of financial education. According to the CFPB, financial educators are unclear how to implement soft skills into practice due to a lack of experiential training. This report outlines strategies financial planners and educators can incorporate into their practice to assist clients in identifying the intergenerational patterns of money attitudes and behaviors.

This study investigated the relationship between financial stress and financial technology and included the mediating role of financial knowledge based on the ABC-X model. This study used the 2018 National Financial Capability Study to construct financial stress and the use of financial technology and tested the proposed model with two subgroups: one group with financial education and the other group without financial education. We used confirmatory factor analysis and structural equation modeling to evaluate our model. Results show that respondents with a greater level of financial stress generally tended to more engage in financial technology. When the role of financial knowledge was considered in the model, the relationship between financial stress and the use of financial technology varied by the type of financial knowledge. Although this study did not identify the onset of the coping process directly, the direct effect of financial stress on the use of financial technology in each subgroup regardless of their financial education experience confirms efforts of looking for coping when facing and responding to financially stressful situations. Thus, this study sheds light on the new technology for financial services as a potential tool for better financial management and as a coping mechanism for those with financial stress. Results from this study provide insights for financial practitioners and educators who help US households manage their financial stress.

Application of situational stimuli for examining the effectiveness of financial education: A behavioral finance perspective

Brazilian society is increasingly seeing financial education as a very important issue. In the past, the population viewed this topic with fear. Currently, the Brazilian economic scenario is different and the environment is favorable for investments, which contributes to problematizing new discussions on the subject. This research will be carried out using the bibliographical method, with the object of study being the article "Financial Education as a Strategy for Including Young People in the Stock Market". The main objective of the research is to show the importance of financial education for young people, and how these teachings should be passed on to everyone from childhood. This examination is justified by the fact that financially educated young people can be the greatest vector for accumulating assets, given their longevity. The main bibliographical contribution is the article "Financial Education as a Strategy for the Inclusion of Young People in the Stock Market", by Diniz Pires, Olga Lima, Roberto Dalongaro, Patrícia Sampaio and João Silveira. As partial results, the research has provided the student supervised in this work with more knowledge about quality of life, personal development and professional progress.

Purpose: The main objective of the text is to explore and determine the impact of financial education on the indebtedness of Peruvian households. Theoretical framework: As for the theoretical framework, reference is made to several previous theories and studies, such as Kahneman and Tversky's prospect theory, Modigliani and Brumberg's life-cycle theory, and Friedman's permanent income hypothesis, among others, to support the importance of financial literacy and financial decision-making under conditions of uncertainty and expectations of future income. Design/Methodology/Approach: To address this objective, a quantitative, applied, and non-experimental methodology was used, with a cross-sectional design and a descriptive-correlational approach, surveying 300 Peruvian households. Results: The results revealed that 68% of the participants have a regular level of financial knowledge and 60% have a regular level of household indebtedness. In addition, a significant positive correlation of 0.891 was found between financial literacy and household indebtedness. Practical and social implications: The practical and social implications of the study are notable, highlighting the need to improve financial education, given the prevalence of fair and low financial knowledge and skills among participants. The implementation of financial education programs from an early age and in communities especially vulnerable to financial instability is proposed. In addition, the creation of a certification program for financial educators and the continuous training of financial sector professionals is suggested. Originality/value: In terms of originality and value, the proposals address various areas, such as academic, professional, social, political, economic, and strategic. The idea of seeding financial education from the early years of education and exploring the effectiveness of various financial education strategies is proposed. In addition, the creation of funds for financial innovation and the promotion of fintech companies is proposed, as well as the strategic implementation of partnerships with international organizations, NGOs, and the private sector. It is also suggested to use technology and digital platforms to expand the reach of financial education programs.

Purpose: The main objective of the text is to explore and determine the impact of financial education on the indebtedness of Peruvian households. Theoretical framework: As for the theoretical framework, reference is made to several previous theories and studies, such as Kahneman and Tversky's prospect theory, Modigliani and Brumberg's life-cycle theory, and Friedman's permanent income hypothesis, among others, to support the importance of financial literacy and financial decision-making under conditions of uncertainty and expectations of future income. Design/Methodology/Approach: To address this objective, a quantitative, applied, and non-experimental methodology was used, with a cross-sectional design and a descriptive-correlational approach, surveying 300 Peruvian households. Results: The results revealed that 68% of the participants have a regular level of financial knowledge and 60% have a regular level of household indebtedness. In addition, a significant positive correlation of 0.891 was found between financial literacy and household indebtedness. Practical and social implications: The practical and social implications of the study are notable, highlighting the need to improve financial education, given the prevalence of fair and low financial knowledge and skills among participants. The implementation of financial education programs from an early age and in communities especially vulnerable to financial instability is proposed. In addition, the creation of a certification program for financial educators and the continuous training of financial sector professionals is suggested. Originality/value: In terms of originality and value, the proposals address various areas, such as academic, professional, social, political, economic, and strategic. The idea of seeding financial education from the early years of education and exploring the effectiveness of various financial education strategies is proposed. In addition, the creation of funds for financial innovation and the promotion of fintech companies is proposed, as well as the strategic implementation of partnerships with international organizations, NGOs, and the private sector. It is also suggested to use technology and digital platforms to expand the reach of financial education programs.

This study investigated the role of financial education on a basic level of estate planning of U.S. households. Results from the 2018 National Financial Capability Study (NFCS) dataset showed that financial education is positively associated with one's basic estate planning, proxied by having a will. Multiple exposures to financial education over time had stronger positive associations with having a will. One notable finding was that those receiving financial education offered by an employer only or jointly by an employer and other sources (high school and/or college) were more likely to have a will. In addition, among those who received financial education, the number of hours and the overall quality were positively associated with the likelihood of having a will. Additional analyses from Propensity Score Matching (PSM) and similar regressions across generations reveal that results were robust. The results provide meaningful insights for financial educators and practitioners.

The main focus of this study is to identify the level of financial literacy and its determinants among professionals engaged in the fields of Medicine (Doctors), Engineering (Engineers), Management (Managers), Law (Lawyers) and other fields such as Aviation and Navigation (Captains and Pilots) as they can be considered as strategic decision makers of different fields in the country. Further they are assumed to be having accumulated wealth or excess funds for buying investment products. So, it is important to know whether they have the knowledge in effective utilization of their wealth. Study employed a descriptive survey design. A sample of 300 respondents from Colombo district was selected as it has the highest level of service sector employability. For the purpose of collecting data, a well-designed questionnaire was distributed under stratified random sampling technique based on a way that all 13 divisional secretariats in Colombo district were represented. The analysis (One-way ANOVA test results) revealed that, basic financial literacy (knowledge on time value of money, inflation, interest rates and real values) as well as the advanced financial literacy (knowledge on stocks, bonds, mutual funds, stock market, and portfolio diversification) among the respondents are at medium level, except doctors, lawyers, captains and pilots. Therefore, results concluded that all educated people are not financially literate. Linear regression results indicated that economic and financial education, self-analytical skills, monthly income level and the field of employment are as significant determinants of financial literacy. Those who are in the professions where there is lack of touch in economic and financial education are possessed with low financial knowledge. Therefore, it is important to implement a national strategy of improving economic and financial educational programmes especially for those who are not engaged in the fields of management.
 Keywords: Financial literacy, Financial and Economic education, Self-analytical skills

This article reviews the theories and literature in intrahousehold financial decisions, spousal partners and financial decision making, family system and financial decision process, children, and financial decisions. The article draws conclusions from the literature review and discusses directions for future research and educational programs. Most financial education and counseling takes place at the individual level, whereas financial decisions take place at household and intrahousehold levels. Family members, spouses/partners, children, and others play a key role in individuals’ financial decisions. The article proposes the key programmatic implications for financial professionals and educators that need to be integrated into financial education and counseling. Understanding the unique dynamics of family financial decision making would help create effective educational and counseling strategies for the whole families.

Young people today need to be financially literate, which depends in large part on being able to apply mathematics principles correctly to make real-world decisions. Therefore, it is not surprising that mathematics and financial education organizations and educators recognize the value of teaching real-world financial exercises (Jump$tart 2015; Lusardi 2012; NCTM 2000, 2016; CCSSI 2010; Sole 2014). Although educators recognize the importance of financial education in high school, students are not learning these skills (Bortz 2012). Only seventeen states require that students take a course in personal finance in high school (Council of Economic Education [CCE] 2016). College students also have gaps in their understanding of finance (Chen and Volpe 1998; Sole 2014). Given how valuable these life skills are, it is surprising that when 36 percent of millennials were given the opportunity in high school, college, or on the job to learn about finance, only 22 percent took advantage of this opportunity (Mottola 2014).

The mismatch between financial objective and subjective knowledge that occurs in youth and adolescents has been understudied in the literature. Based on objective and subjective financial literacy scores, this study categorizes financial literacy into four types: financial literacy overconfidence, underconfidence, competence, and naïvete in a sample of adolescents. Data were collected from 330 students aged around 15 years old in six middle schools in Hong Kong. The results indicate that adolescents who are overconfident about their financial literacy are more likely to engage in risky financial behavior and report higher levels of financial autonomy. A randomized experimental trial was conducted to assess whether financial education could change the mismatch between financial objective and subjective knowledge. The results show a significant increase in underconfidence after the financial education intervention, but no significant change in the other three categories. The findings highlight the same type of financial literacy overconfidence in both adolescents and adults and has implications for financial counselors and educators who would improve the financial engagement of adolescents.