Basic Financial Literacy Research Articles

Teaching Justice-Involved Adolescents Basic Financial Literacy Skills: A Preliminary Investigation

Teaching Justice-Involved Adolescents Basic Financial Literacy Skills: A Preliminary Investigation

Peningkatan Literasi Finansial Berkelanjutan Melalui Edukasi Dan Pendampingan Dalam Pengelolaan Keuangan Masyarakat Desa Jayaraga

Financial literacy is an essential skill that the community needs to possess in order to achieve economic well-being. However, there are still many people in rural areas with low financial literacy levels, including in Jayaraga Village. This research aims to enhance financial literacy sustainably through seminars, workshops, case studies, and focus group discussions. The method used in this research is a participatory approach, where the community is actively involved in every stage of the activities, from basic financial literacy training to assistance in implementing good financial practices. The results of the study indicate an increase in the community's understanding of basic financial concepts, including budgeting, debt management, and simple investments. In addition, this program has also succeeded in raising public awareness about the importance of financial literacy in achieving family economic stability. With continuous education and guidance, it is hoped that the financial literacy of the people in Jayaraga Village can continue to develop and have a positive impact on the local economy.

The Relation between adolescents' Basic Needs Satisfaction and Financial Literacy

The Relation between adolescents' Basic Needs Satisfaction and Financial Literacy

The Implication of Financial Literacy Education Integration for Pupils at Primary School in Cambodia

Key Messages The project Cha-Ching “Basic Financial Literacy” has been successful in equipping pupils at primary schools with the necessary knowledge and skills for managing money from an early age. Integration of financial literacy into educational curricula at primary schools, ensuring students are equipped with practical financial skills emphasizing the concepts of Earn, Save, Spend, and Donate to prepare for 21st Century Skills before entering adulthood and support to local life skills needed. Training and support for teachers and pre-service teacher to enhance their understanding of financial concepts and effective teaching methodologies, enabling them to deliver high-quality financial education for pupils at primary school in Cambodia. The Provincial Department of Education, Youth and Sport and the District office of Education, Youth and Sport should consider promoting financial literacy to other schools (public and private schools) and continue to work with the target schools throughout the capacity building and follow-up to ensure newly enrolled pupils received the financial education. The Ministry of Education, Youth and Sport (MoEYS): 1.) should consider promoting financial literacy by developing a legal framework and guidelines adopting financial literacy into the life-skill curriculum for primary schools. 2.) Consider allocating an annual budget for capacity building and printing of teaching and learning books, and allocating the yearly budget for printing and distributing Cha-Ching’s books for pupils nationwide. The Prudence Foundation or other donors should consider promoting financial literacy and supporting to implementation of the Cha-Ching Money Smart Kids “basic financial literacy” widely at primary schools in Cambodia.

Reforming Financial Literacy General Education in Colleges and Universities: Measurement of Financial Literacy level and Training Path of College Students in Higher Vocational Colleges in China

This study aims to evaluate the financial literacy levels of higher vocational college students in China through a questionnaire survey approach. It seeks to determine the overall financial literacy level and delve into the nuances of gender and family background heterogeneity. Drawing on existing methodological ideas for measuring financial literacy levels, this paper uses a questionnaire survey method to calculate the overall financial literacy level of higher vocational college students in my country. It also conducted an in-depth analysis of the characteristics of college students’ financial literacy levels from the perspectives of gender heterogeneity and family background heterogeneity. The results found that the overall financial literacy level of current college students in China is not high, with a quantitative score of only 39.18 points; regardless of basic financial literacy level, advanced financial literacy level, and overall financial literacy level, male college students' scores are generally higher than female college students. This difference is significant at the 1% level; college students in the financial group who have at least one parent with a financial degree or industry background have a higher financial literacy than college students in the non-financial group. The huge difference in the financial literacy of the two groups of college students is in the level of advanced financial literacy. It is more obvious. The research results suggest that colleges and universities should not only add general education to enhance financial literacy in general education courses but also set up financial literacy education courses at different stages based on students’ gender heterogeneity and family background heterogeneity.

Formation of financial literacy of schoolchildren by teaching solving problems with economic content

This article examines the problem of developing financial literacy among the population, especially among students in secondary schools. The need and methods for improving financial literacy are discussed, with particular emphasis on the subject of mathematics. The article emphasizes the relevance of including the formation of basic financial literacy skills as an important aspect of educating the new generation in the curricula of various school subjects. Ways to integrate financial literacy skills into mathematics instruction are also explored. In the context of mathematics lessons, tasks with real financial and economic content are proposed, aimed at developing basic financial literacy skills among students in grades 5-6. These tasks contribute to the development of basic financial and economic concepts that reflect key aspects of financial relations, as well as the development of practical skills and competencies. Because mathematics and finance share common aspects, using math problems with a financial context helps expand students' understanding of the real-life applications of mathematics in everyday life. The article also demonstrates that knowledge of basic financial concepts and their application in practice contribute to the development of understanding that can contribute to the development of thrift and sound money management skills. The effectiveness of this process is confirmed by the results of experiments conducted in the article.

FINANCIAL INCLUSION AND POVERTY ALLEVIATION: RETHINKING THEORY AND INTERVENTION STRATEGIES BASED ON RURAL PRACTICE IN CHINA

This study argues that poverty is not only a lack of income and consumption for individuals and families, but also a lack of opportunities and rights, particularly in terms of financial access and capability. Therefore, to comprehensively address the issue of poverty, it is necessary to increase individuals' opportunities to access financial services, improve their financial literacy and enhance their financial health and overall financial well-being. Although China has set a target of eradicating absolute poverty in rural areas by 2020, poverty reduction efforts in China still face a more challenging situation. First, the majority of families lifted out of absolute poverty are dependent on government subsidies and lack independent sources of income and livelihoods, making them extremely vulnerable to falling back into poverty; second, the economic gap between urban and rural areas is widening; third, rural residents face challenges in increasing wage income and household business income, while asset-based income remains low; finally, the severe ageing of the rural population and the lack of human capital have resulted in slow economic growth in rural areas. In order to alleviate rural poverty and promote balanced and integrated urban-rural development, the Chinese government has adopted a strategy of tilting financial resources towards rural areas and is continuing to develop financial inclusion in rural China. However, as rural residents in China typically lack basic financial literacy and are unfamiliar with the variety of financial products and services available, combining financial services with social services is necessary to enhance the poverty alleviation effectiveness of financial inclusion. Social work plays a valuable role in improving the financial literacy of rural residents and promoting the use of financial inclusion products and services in rural China.

An Assessment of Financial Inclusion Challenges Among Women Vendors at the Bulawayo Vegetable Market

In the vibrant markets of Bulawayo, Zimbabwe, where women entrepreneurs thrive, a critical challenge persists: financial inclusion remains low. However, Mobile Financial Services (MFS) digital platforms have the potential to revolutionize access to affordable financial solutions for women entrepreneurs. Our study delved into the experiences of women vendors at the bustling Bulawayo Vegetable Market during the period from 2016 to 2023. Through a descriptive survey design, we aimed to uncover the hurdles faced by these enterprising women as they navigated the realm of MFS. Findings revealed that many women were unaware of the existence and benefits of MFS. The lack of knowledge hindered their participation. Proper documentation essential for accessing financial services remained elusive for some. Without it, women faced barriers in utilizing MFS. Limited education posed a significant obstacle. Basic financial literacy and digital skills were prerequisites for effective MFS adoption. The absence of digital skills impeded women from confidently using mobile platforms for financial transactions. Scarce availability of mobile money agents in the market area restricted women’s access to MFS. To bridge this gender gap and empower women entrepreneurs, we recommend Financial Institutions to Collaborate with MFS providers to offer targeted training programs. These sessions should focus on MFS awareness, digital literacy, and documentation procedures. NGOs Community Initiatives should launch awareness campaigns specifically tailored for women vendors. These campaigns can demystify MFS, emphasize its benefits, and address common concerns. By dismantling these barriers, we can unlock the full potential of MFS, enabling women entrepreneurs to thrive and contribute significantly to sustainable development in Zimbabwe.

Exploring Challenges Faced by Secondary School Students in Understanding Taxation: An Expert Perspective Using the Nominal Group Technique

Taxation is financial knowledge that all workers in various sectors worldwide need to know. The introduction of the subject of taxation in several countries is aimed at increasing the understanding of students who are future workers to increase awareness among young people. This study explores the challenges faced by secondary school students in understanding taxation concepts, using the Nominal Group Technique (NGT) to gather insights from expert mathematic teachers. Through learning, students tend to struggle to comprehend various important tax laws and procedures. Although tax education is vital for enhancing future tax obedience, a major difficulty arises from the fact that while the topics mentioned above are covered in the Malaysian secondary school curriculum, basic financial literacy is low, and tax content is rather abstract. Based on NGT sessions, five experienced teachers with more than fifteen years of teaching experience in mathematics at the tertiary level engaged themselves in finding out the issues and challenges of the students. The discoveries identified eight significant areas of challenge in regard to the concepts of tax, and these were due to the difficulty in understanding more conceptuality, inadequate focused curriculum and mode of delivery by lecturers/facilitators, and lack of adequate interactivity in the teaching process. Therefore, this research emphasizes the need to provide systematic financial literacy training and to supplement the curriculum with attention-grabbing examples that would make the students more interested in taxation.

Validating the Financial Literacy Construct - Impressions and Reflections

Financial literacy (FL) literature has gained momentum in the last one and half decades in the Indian context with the government’s active role. FL encompasses knowledge of financial instruments and practices in its scope. The current study aims to measure FL by collecting primary data from the students, salaried class, traders and businessmen of two towns of Tripura, a North Eastern Indian state. For executing the study, it prefers a cross-sectional research design. Data from 160 respondents were collected using a self-administered interview-schedule applying disproportionate stratified random sampling technique. A pre-test with randomly chosen 30 respondents affirms its wording, content validity and ordering. The tool’s reliability and validity further support applying inferential statistics. Significant cross tabulation results affirm impacts of demographics on the levels of FL. For assessing the perceptional differences in FL basics between the two groups of respondents, that is, students-salaried class and traders-businessmen, it applies WPG analysis indicating significant perceptional differences about basic FL, and FL awareness levels. For evaluating whether the four types of sample respondents classified based on their occupations have any significantly differential influences on FL awareness, the Pearson Correlation Coefficient results affirm the same. Policy implications, limitations and scope of further research also indicated.

Financial Literacy and its Determinants: A Case of Professionals in Colombo District Sri Lanka

This observation intends to examine the financial literacy level of professionals working in the professions of Medicine (Doctors), Engineering (Engineers), Management (Managers), Law (Lawyers) inclusive Aviation and Navigation (Captains and Pilots), and its determinants. The methodology was a quantitative survey approach involving a sample of 300 respondents from the Colombo district. The analysis revealed that Basic and Advanced financial literacy among professionals is at a medium level. However, the level of financial literacy was not at a satisfactory level among non-management professionals, particularly doctors and lawyers. The results of the Regression analysis revealed that Economic and financial education, self-analytical skills, the field of employment, and monthly income level as influential determinants of financial literacy. The professions with less exposure to economic and financial education have low financial literacy. Findings demonstrate the growing importance of implementing a national strategy to improve financial and economic educational programmes, particularly for individuals who are not working in the professions related to management.

Financial literacy competencies of women in agribusiness and their financial experiences during a pandemic

Background: Women have generally lower levels of financial literacy than their male counterparts, regardless of country of origin. This financial literacy gender gap makes women more vulnerable to the effects of pandemics, like the coronavirus disease 2019 (COVID-19) pandemic.Aim: This study sought to examine financial literacy competencies of women in agribusiness and their financial experiences during the COVID-19 pandemic.Setting: The study was carried out in five agricultural districts namely, Gweru, Masvingo, Mutoko, Mount Darwin, and Mutare. The districts represented Zimbabwean agricultural regions.Methods: An embedded mixed methods research design was adopted where both qualitative and quantitative data were collected for analysis. Data were successfully collected from 216 women in agribusiness and follow-up interviews were conducted with 15 informants.Results: Women in agribusiness have poor financial literacy competencies. Most women in agribusiness practised only a range of 2–3 good financial behaviours out of the eight examined concepts, with only 10% scoring above the minimum expected score of six. During the pandemic, women in agribusiness lost income and failed to take care of household and business expenses.Conclusion: Women in agribusiness do not practise vital financial literacy competencies required for financial wellbeing and financial resilience. Therefore, the study recommends the implementation of training programmes that capacitate women with basic financial literacy competencies such as budgeting, saving, and retirement planning.Contribution: Financial literacy competencies were conceptualised together with financial experiences during a pandemic for the first time. More so, in the agribusiness sector which is crucial for economic development.

Table Banking and Women Economic Empowerment in Nakuru County, Kenya

This publication is part of a wider study which aims at evaluating Women Economic Empowerment programme, which is being implemented by the Women Empowerment Link (WEL) in several counties across Kenya, since 2015. In Nakuru the programme targeted grassroot women in table banking. To make the evaluation comprehensive in determining the level of women economic empowerment, this study adopted Kabeer’s (2005) theoretical framework for measuring women’s empowerment. The objective of the study was to establish the extent to which table banking had increased women economic empowerment in Nakuru County. Specifically, the study sought to assess the extent to which; the WEL’s project had enhanced women’s participation in county governance, women’s participation in the project had increased access to services and resources; and finally Identify success stories, lessons learnt and challenges that women in the project encountered. The study reached a total of 206 out of the 473 women who had been trained on basic financial literacy from 35 table banking groups. In each of the selected groups, three officials (the chairperson, secretary and the treasurer) and three members participated in the study. Key informants, 2 gender officers, 1 gender champion also participated. Data analysis revealed that 80% of the women were business owners, 10.21% were employed while 6.6% were domestic workers. The study’s findings revealed that WEL’s programme on Strengthening Inclusive Leadership had mixed results in enhancing participation of women in leadership and governance. Only half of the women at 49.51% had offered themselves for leadership and governance positions yet their capacities and availability to participate in leadership and governance were rated very high. The study also found that women’s participation in the WEL’s project had increased access to services, resources and women’s participation in governance opportunities to a large extent. Finally, the study appreciated that the WEL project in Nakuru targeted most vulnerable, low income i.e., economically vulnerable grassroots women. Among the obstacles found to be hindering Women Economic Empowerment were poverty, high level of illiteracy and lack of information. Among other recommendations, women requested additional seed capital from either WEL or County Government to increase their borrowing power within their groups and expand adult literacy programme by the County Government. The study also recommended concerted campaign to include more women in leadership and governance.

Improving the Quality of Life for the Elderly Group through Basic Financial Literacy Education Program

Purpose: This research paper explores the significance of enhancing financial literacy among the elderly. It focuses on a community program in Gundih Village, Surabaya, conducted in August 2022, aiming to improve the elderly's quality of life through primary financial education.
 Method: The study employed a comprehensive approach, including workshops and assessments to teach critical financial concepts. Data was collected through surveys, interviews, and observations analyzed quantitatively and qualitatively to gauge the program's impact.
 Practical Applications: The study's findings have practical implications. By equipping the elderly with financial knowledge, particularly in retirement planning, savings, and loans, the program empowers them to make informed financial decisions, reducing potential burdens on their families.
 Conclusion: This research underscores the importance of financial literacy for the elderly. The program in Gundih Village serves as a successful model, demonstrating that improving financial knowledge enhances the elderly's financial independence, benefiting both them and their families.

The Effect of Financial Literacy Mediated Financial Behavior on Decisions Millennial Investment

In general, although the financial literacy index in Indonesia has increased, this figure illustrates that not all Indonesians are included in the well-literate category, even the percentage is still far below 50 percent. With conditions like this, it is suspected that the Indonesian people do not fully have sufficient knowledge about Basic Financial Literacy which is the basic ability of financial literacy with the dimensions of numeracy, interest compounding, inflation, time value of money, and money illusion and does not fully have knowledge of Advanced Financial Literacy is an advanced ability of financial literacy that includes an understanding of investments (stocks, bonds, mutual funds, crypto assets) as well as risks and returns. In addition to Basic Financial Literacy and Advanced Financial Literacy, the financial behavior of the millennial generation can also be analyzed as a mediating variable to determine its effect on millennial generation investment decisions. Keywords: Basic Financial Literacy Advanced Financial Litration, Behavioral Finance, Investment Decisions.

Ruscombe Artisan Food & Drink Ltd: business dilemmas

Research methodology This case is based on primary data collected via interviews with the CEO of the company. The authors obtained the case release form to publish this case. Case overview/synopsis Various stakeholders, regulators, environmental activists and public awareness have increased companies’ pressure to contribute to environmental issues. However, the pressure seems to be more on large-scale companies to make progress and have an elaborate vision and goals related to environmental issues than small and medium enterprises (SMEs). This case deals with the sustainability focus of the CEO of Ruscombe Artisan Food & Drink Ltd. (Made for Drink), an SME in the UK with a voluntary environmental impact investment proposal under consideration while having losses since 2017. The case integrates the financial aspects and environmental considerations into this strategic investment evaluation process for making a capital investment decision. The case provides the actual financials of the company, including the income statement, balance sheet and cash flow statement of the company since its inception in 2017. The case information enables students to comprehend and evaluate the consequences of doing a voluntary environmental capital investment project. The students will have the opportunity to apply simple capital investment methods and consider the external and less tangible environmental benefits in their final decision-making. Complexity academic level The case is suitable for undergraduate accounting or management modules, mainly introductory modules such as Managing Financial Resources, International Accounting, Finance, Introductory Corporate Finance, Basic Financial Literacy and Entrepreneurship.

Financial Literacy's Influence on Investment Decisions

Objective – This study examines how financial literacy affects Indonesia's millennial generation's financial behavior and investment decisions. This study will also look at the influence of financial literacy as mediated by financial behavior on the millennial generation's investment decisions. Methodology/Technique – This research utilizes quantitative methods. The demography for this study is the millennial generation in Jakarta, Indonesia, which comprises 15,575 people. A non-probability and purposive sampling strategy were used to sample 100 people. The analytical tool makes use of path analysis and Smart-PLS. Result - According to the study's findings, basic financial literacy does not impact the millennial age's investment decisions or financial behavior. Advanced financial literacy cannot impact the investment decisions of the millennial generation in Jakarta, but it can influence their financial behavior. The millennial generation's financial behavior might impact investing decisions. Basic financial knowledge does not influence Millennial investing decisions as mediated through financial behavior. Advanced financial literacy can influence Millennial investing decisions as mediated through financial behavior. Novelty - This research is expected to be a reference for the millennial generation in making investment decisions. The millennial generation is expected to increase financial literacy and improve financial behavior in making investment decisions. Type of Paper: Empirical JEL Classification: G2, G23 Keywords: Basic Financial Literacy, Millennial Generation, Financial Behavior, Investment Decisions Reference to this paper should be referred to as follows: Riwayati, H.E; Cahaya,Y.F; Markonah, M. (2023). Financial Literacy's Influence on Investment Decisions, Acc. Fin. Review, 8(1), 27 – 35. https://doi.org/10.35609/afr.2023.8.1(1)

STUDENTS’ FINANCIAL LITERACY KNOWLEDGE RESEARCH: THE CASE OF KAUNO KOLEGIJA HIGHER EDUCATION INSTITUTION

A person feels more confident and secure with good financial skills and knowledge in the face of increased inflation, energy crisis and geopolitical uncertainty. Therefore, financial literacy is one of the most important skills necessary for a modern person. The basics of financial literacy are included in the programs of primary and secondary schools in Lithuania. So, students of Higher Education Institutions should have basic financial literacy knowledge and skills. The purpose of this study is to assess student’s level of financial literacy. For this reason, a survey of 1st year students of Kauno kolegija Higher Education Institution Technologies and Business Faculties was carried out in May – June of 2022. The survey consisted of questions and knowledge test tasks which were divided into four groups: budget, credits and debts, savings and investments, financial responsibility. The collected data were processed using the SPSS 29 software. It was assessed that the level of financial literacy of Kauno kolegija Higher Education Institution students is adequate. The quartile width of the financial literacy index of all respondents was about half of the total spread. That means that the spread of values between the quartiles is similar. It was observed that earning respondents are more tend to save than non-earning respondents when evaluating the differences in the context of saving habits. In addition, two-thirds of working students cut back on spending when money is tight. It was observed that the vast majority of working students do not tend to borrow from family or friends. A statistically reliable difference was obtained between the groups of working and non-working respondents when evaluating an investment, i.e. one third of working people tend to invest. Respondents named the main reasons for not investing: lack of knowledge and insufficient amount of money. Respondents who invest their savings usually choose to invest in cryptocurrencies, real estate, investment funds or their own business. Even four-fifths of unemployed students said that they wanted to learn more about money management when assessing their financial skills. The study found out that goal setting has a direct impact on reducing their expenses. In addition, a better financial situation makes it possible to regularly save and evaluate the financial situation before buying an expensive item. What is more, the ability to manage your finances directly depends on deepening your financial knowledge, encouraging you to compare prices when buying something, compare the conditions of different credit institutions. The received results show that the majority of Kauno kolegija Higher Education Institution students have a sufficient amount of general financial literacy knowledge, for example, they tend to plan their personal budget, borrow efficiently, correctly assess investment risks, inflation and interest rates, and have long-term financial goals.

A Study on Association Between Basic Financial Literacy and Societal Factors

Abstract: Financial literacy is the holding of the set of skills and knowledge that allows an individual to be financially literate enough to make effective decisions. Financial Literacy is becoming a priority area all across the world in present time. The present scenario has made it essential for individuals to be well aware with the basic financial knowledge in order to use their financial resources in an optimum way. The study examines the association between basic financial literacy with demographic factors by using a questionnaire. The data were collected from 65 respondents to test the association. The findings shows that above 50% of the total respondents demonstrate higher basic financial literacy. Although the majority of the people possess basic financial knowledge and manifest positive financial behaviour and remaining respondents exhibit reluctant financial attitude. However, analysis of the demographic factors reveals that certain factors may prevent persons from being more financially literate.

Accounting and finance literacy and entrepreneurship: An exploratory study

The aim of this study is to investigate whether the level of financial literacy differs significantly among entrepreneurs in three European countries: Italy, Spain, and the UK. Moreover, I analyze whether financial literacy fosters or hinders entrepreneurial resilience and success. I find that the level of basic financial literacy is significantly lower among entrepreneurs in the UK. I provide an explanation based on job opportunities arguing that basic financial literacy increases the chances of survival of a business, whereas advanced financial literacy decreases it. I propose a taxonomy linking levels of financial literacy with different approaches to financial management. I conclude that a “conservative” approach to financial management (cash based, debt-averse and diversified) is more likely to guarantee survival even if it is not necessarily the best way to maximize firm value.