Development Of Financial Literacy Research Articles

The Influence of Financial Literacy on Financial Management in Small & Medium Enterprises (Case Study on Coffee Shop Management in Bandung City Period 2020 – 2021)

Introduction/Main Objectives: This study aims to determine how the development of financial literacy and management as well as to determine the effect of financial literacy on basic financial knowledge, savings and credit, investment and insurance on financial management at SMEs in the form of Coffee Shop in Bandung City. Background Problems: Financial literacy is a person's understanding or ability to measure financial concepts and has the ability to manage finances well. Financial literacy is very necessary for SMEs in managing their business finances. Research Methods: The method used is descriptive and verification analysis method with a quantitative approach. The technique of determining the sample using Nonprobability Sampling. Finding/Results: The results of the study found that literacy about basic financial knowledge has a significant effect on SME’s financial management, literacy about savings and credit has a significant effect on SME’s financial management, literacy about Investment has a significant effect on SME’s financial management and literacy about insurance also has a significant effect on SME’s financial management. Conclusion: The more literate on financial knowledge, savings and credit, investment and insurance, the more SME’s financial management increase.

Development of Financial Literacy Through a Self-advising Stock Investment Model: an Integration of Machine Learning and Business Intelligence Tools to Guide Novice Investors

Development of Financial Literacy Through a Self-advising Stock Investment Model: an Integration of Machine Learning and Business Intelligence Tools to Guide Novice Investors

The Status and Development of Financial Literacy in Hungary

This essay provides an overview of the measures implemented in the last ten years to improve financial literacy and awareness, presenting the steps taken by institutions, civil organisations and the government to promote and develop financial literacy and awareness, the specific topics addressed and the degree of success. Comparative international surveys indicate an improvement in the public’s financial awareness, mainly in terms of financial knowledge, but further progress is needed in the area of financial attitudes and the application of skills.

Influence of Financial Literacy, Risk Tolerance, Financial Efficacy on Investment Decisions and Financial Management Behavior

The problem in this study lies in the development of financial literacy in the age range of 18-25 years which has continued to decrease by 3 times in a row since the SNLIK (National Survey of Financial Literacy and Inclusion) was conducted. This age range is included in the Z generation category. SNLIK was first conducted in 2013, and the survey is conducted every 3 years by the OJK (Financial Services Authority). From this phenomenon, it can be a reference that there are many Generation Z people who are afraid or fail or have not made an investment decision. This study aims to determine how understandable and effective financial literacy, risk tolerance, financial efficacy are in making investment decisions and financial management behavior.The population of this study is generation Z of Indonesia with birth ranges from 1996 to 2009. The sampling technique was purposive sampling with a total sampling of 200 respondents. The type of data used is primary data and secondary data. The data collection method used is through an online questionnaire (google form). The analysis technique used is SEM with Smart pls 3.0 software. The results showed that: financial literacy has an effect on financial management behavior, risk tolerance has no effect on financial management behavior, financial efficacy has had an effect on financial management behavior, financial literacy has had an effect on investment decisions, risk tolerance has had an effect on investment decisions, financial efficacy has no effect on decisions Investment and financial management behavior influence investment decisions.

Financial literacy as a factor of ensuring fiscal sustainability, efficiency of public finance management and financial market development

The article examines the current state of the level of financial literacy of the population in Russia, as well as the main trends in the development of financial literacy in the context of ensuring fiscal sustainability, the effectiveness of public finance management, and the development of the financial market. The mechanism of increasing financial literacy of the population is analyzed. It is shown that financial literacy of the population is directly related to financial education, financial culture, financial behavior and financial activity of the population. Reasonable conclusions are made that measures to introduce the Concept of improving financial and budgetary literacy of the population through the implementation of proactive budgeting practices approved by the Ministry of Finance of the Russian Federation at the end of 2022 will contribute to improving the level of financial (including budgetary) literacy and financial culture that affect the provision of fiscal sustainability, the effectiveness of public finance management, and the development of the financial market. and the new Strategy for Improving Financial Literacy and Financial Culture in the Russian Federation until 2030, the draft of which is currently being considered by the main participants of the Strategy for Improving Financial Literacy in the Russian Federation for the period 2017–2023.

Financial inclusion as an indicator of national security

The prerequisites for forming national security based on the creation and use of financial inclusion are studied. The essence of the concept of financial inclusion as a component of national security is defined. The expediency of its implementation for all segments of the population is substantiated. It is emphasized that financial inclusion is one of the five directions of the Strategy for the Development of the Financial Sector of Ukraine until 2025 and has specific strategic goals and performance indicators that are related to the level of public confidence in the financial system, the level of financial literacy of the population, and is reflected through the ratio of non-cash card transactions (including P2P) to the total number of transactions and the ratio of cash to GDP. An analysis of the indicators of the level of financial inclusion, which forms the basis of the Strategy for the Development of Ukraine's Financial Sector until 2025, shows that the current values of the indicators do not correspond to their target values. The carried-out analysis made proposing options for developing financial inclusion possible, considering its strategic vectors. In dynamics, the level of public awareness of the use of financial products in Ukraine and other countries worldwide is analyzed. A forecast of the use of financial products by number and type for 2023 – 2024 is made. Positive changes in awareness of financial products in Ukraine have been noted. The expediency and necessity of applying financial inclusion to ensure national security are substantiated. It is noted that the issue of financial inclusion has become especially relevant in the context of the Russian-Ukrainian war. The Top 4 financial products in terms of recognition in the context of age groups are analyzed, and the difference by age categories is reflected. The methods of applying financial inclusion are allocated, and the main aspects that affect it are identified. The main aspects of the information platform on the National Bank of Ukraine website, which is the formation and development of financial literacy among all strata and age categories, are studied. It is noted that financial literacy measures, which the National Bank of Ukraine initiated, require the support of partners. Keywords: financial inclusion, financial service, financial product, financial literacy, protection of user rights, National Bank of Ukraine.

Addressing Financial Exclusion through Financial Literacy training programs: a Systematic Literature Review

The development of financial literacy (FL) is significantly influenced by financial literacy training programs (FLTPs), which aid in creating an ecosystem that is more inclusive and participative. This study reviewed 22 studies on FLTPs for marginalised women in developed and developing countries. It seeks to comprehend (a) the characteristics of FLTPs and (b) the impact of FLTPs on women’s financial behaviour. The findings highlight that existing research has demonstrated an overall improvement in post-training financial behaviour, particularly in bank ownership, savings, and expenditure. This indicates that FL programs and interventions can positively impact women’s financial inclusion and empowerment. However, the study also acknowledges the need for further research to delve into women’s specific challenges in various regions and contexts. Understanding these unique challenges is crucial for developing targeted strategies that address women’s particular needs and circumstances in different situations. This study provides valuable insights and guidance to various stakeholders – practitioners, academics, and policymakers – enabling them to make informed decisions and implement impactful measures to promote FL and inclusion among women.

ЦИФРОВА ФІНАНСОВА ГРАМОТНІСТЬ: КОМПОНЕНТИ ТА МЕТОДИ ПІДВИЩЕННЯ

This article is dedicated to the topic of financial literacy and its development in the context of the digitization of financial services. Traditional financial literacy is insufficient for effectively utilizing financial resources in today's digital world. The concept of digital financial literacy is introduced. It combines the skills of using financial services and the use of digital technologies. In the article is proposed authors’ definition of digital financial literacy by components, which include awareness of digital financial products and services, awareness of potential digital financial risks, control over them, and knowledge of the rights of consumers of financial services. These components are crucial for the development of digital financial literacy. The article highlights potential security risks, such as digital fraud, technical failures, and excessive reliance on digital services. The importance of understanding digital footprint and online reputation is emphasized. The article provides simple principles to help users protect their personal information and avoid fraud. It explains the need for understanding consumer rights and compensation procedures to enable individuals to protect their rights. Understanding these aspects of digital financial literacy is essential for effectively managing financial resources in today's digital world. Research conducted in 2021 showed that technology users have a higher level of financial literacy compared to those who do not use technology. However, the overall level of financial literacy in Ukraine is still insufficient for making informed financial decisions. The National Bank of Ukraine, the Ministry of Digital Transformation and other international, governmental, and non-governmental organizations are focusing on the development of financial literacy among the population. It is recommended to focus on the development of digital financial literacy, using communication campaigns, sharing information about providers of digital financial services, financial education initiatives, and awareness-raising about digital crimes and consumer rights in financial services.

Financial literacy in Hungarian libraries: Survey-based steps for implementation

In Hungarian libraries, the development of financial literacy (FL) is either not present at all or is very low in intensity. The Hungarian government strategy does not involve libraries in FL development. Based on the dissemination of information and digital literacy, there are numerous good examples worldwide proving that libraries, reaching all of their users, can effectively take part in financial education and, built thereon, business development and business information services. This can increase their social recognition and even supplement their funding. In 2022, for the first time in the country, the authors conducted a survey among Hungarian librarians to assess the current situation, to identify what hinders the expansion of services related to FL, and what tasks should be performed and what innovations should be introduced in libraries. The survey also seeks to define which fields of competence are to be acquired by librarians. It also reveals the forms of external professional cooperation that are necessary to organise library programmes strengthening financial awareness. The results provide valuable information not only for Hungary, but also internationally, since they showcase the challenges that the library system of a former socialist country in Europe faces after three decades of market economy in this current, market- and profit-oriented world.

УПРАВЛЕНИЕ КАЧЕСТВОМ ФИНАНСОВОЙ ГРАМОТНОСТИ В КОНТЕКСТЕ НОВЫХ ЭКОНОМИЧЕСКИХ ВЫЗОВОВ

The authors conduct a study of the current state of financial literacy quality management in the context of new economic challenges in the domestic economy, analyze the concept of financial literacy of the population, provide the opinions of experts in the national macroeconomic system, and analyze measures aimed at increasing financial literacy and the efficiency of the organization and the industry as a whole. The authors dwell in detail on the analysis of the main modern problems in the development of financial literacy, not only at the macroeconomic level, but also at the level of organizations, as well as the financial literacy of the population, and offer specific solutions and directions for further improving public policy in this area.

CLASSIFICATION OF STRUCTURAL PRODUCTS BY UNAIDED AND TRUST MANAGEMENT

The journal Young Scientist (2014) gave a classification of structural products. But with time and the development of financial literacy, there is a need for independent management, moreover, many structural products are given to trust management. Russian investors began to give more and more preference to ready-made products, so today the need to determine the correct diversification and types of management is only growing. The study raises the following questions: which structured products offer fiduciary management, and which are self-managed? The article proposes a classification that makes it possible to look at such a tool as a structural product from the other side. The first part deals with the existing classification according to goals and objectives, which formed the basis of modern theory. The second part describes the classification of structural products for independent and trust management. The positive and negative qualities that determine the principles of division for this classification are given. The final part is an example of self-creation of a structural product on the example of an offer already on the market. The comparative method proves the assumptions put forward in the previous part of the article.

Типологія чинників формування моделей кредитно-інвестиційної політики в національній економіці

The article considers the approaches to defining the concept of «credit and investment policy» and the factors influencing the formation of models of credit and investment policy in the national economy. The authors typologize all factors of influence in five groups: institutional, economic, sociopsychological, infrastructural and technological. The authors propose to include the following factors to the technological group: the share of non-cash transactions, the number of broadband Internet users and the level of use of information and communication technologies. It is also suggested to add to the existing factors the following: level of financial literacy and technical education of the population, existence of state and regional investment funds, open accreditation of investment advisers, penalties for violation of investment or lending conditions, regulation of investment funds and credit unions, public confidence in state bodies, the presence of active business angels, access to credit resources, investor protection, venture capital, the amount of savings in the population. It is worth noting that the level of financial literacy has a significant impact due to the fact that the population with a higher level of financial literacy will invest more in their own savings, which will lead to an increase in private investment in Ukraine. Developed countries have long introduced educational financial and investment programs to improve financial knowledge, thereby encouraging people to save more and, as a result, to invest. Another important aspect is the development of financial literacy in the younger generation, because, according to the Organization for Economic Cooperation and Development, the purchasing power of young people (up to 25 years) is growing every year. It is concluded that the process of developing models of credit and investment policy and methods of evaluating their effectiveness need further research. Particular attention should be paid to the development of practical tools and methods for developing the credit and investment potential of the state.

Преподавание финансовой грамотности в образовательных организациях Липецкой области: анализ результатов мониторинга

The article was devoted to a comparative analysis of the features of teaching financial literacy in preschool, general and professional educational organizations of the Lipetsk Region in Russia. The results of the monitoring of the place and role of aspects of teaching financial literacy in the educational practices of organizations in the Lipetsk Region showed a controversial picture. On the one hand, monitoring revealed the presence in the educational programs of most organizations of modules in the direction of financial literacy. On the other hand, the total amount of hours allocated for the development of financial literacy is not significant and is mainly implemented in extracurricular activities. It was concluded that the greatest problems are present at the level of general education, where the absence of separate financial literacy courses in educational practices is noticeable. Educational and outreach activities to improve financial literacy are actively implemented in the segments of educational and extracurricular activities, remaining in most organizations outside of elective courses. The results of the monitoring allow us to speak about the readiness of the education system in the Lipetsk Region to act as one of the institutions for improving the level of financial literacy, provided that the place of the financial literacy course in educational activities increases, as well as the formation of conditions for the continuity of topics and practices of teaching the course at all levels of education.

The Use of Payment Technology Through Financial Literacy

Payment technology has dominated the fintech sector in Indonesia. Optimizing the use of payment technology requires encouragement in the development of financial literacy. Indonesia still has a low level of financial literacy compared to financial inclusion in Indonesia. The low level of financial literacy will lead to abuse of the use of fintech products and services. This study aims to see the effects of financial literacy on payment technology adoption using the TAM approach in urban cities in Indonesia, Jakarta Raya, Bandung, D.I. Yogyakarta, Semarang and Surabaya. The result demonstrates that financial literacy not an essential factor in adopting payment technology in Indonesia.

Teachers’ Financial Literacy

The aim of the research is to explore the financial knowledge, attitudes, confidence, behaviour and motivations of teachers (N=752) teaching different subjects. The survey is particularly important because their knowledge, attitudes, and behaviours affect the financial awareness of the students they teach. The results indicate a higher level of financial literacy than assumed, revealing that teachers have a higher level of financial literacy than students in higher education. 86% of those surveyed have savings in addition to bank deposits, such as government bonds and other, more complex forms of savings, indicating a high level of financial awareness and inclusion. Teachers highly value their own financial literacy, and similar to those studying in higher education, are risk averse. Their vast majority consider the development of financial literacy in schools important. Financial literacy trainings have a measurably positive effect on the level of knowledge of the participants. Based on the results of the research, it is worthwhile to shape the curricula and the requirements based on the financial awareness and motivation of the teachers.

Формирование и совершенствование экономических знаний трудовых ресурсов как одно из важнейших направлений подготовки профессиональных кадров

This article discusses issues related to the need for constant formation and improvement of economic knowledge of labor resources. The main directions of development of financial literacy of employees of an enterprise (organization) are given. The position of improving the special economic knowledge of civil servants, in particular, employees of the departments of the electronic safety and industrial complex is substantiated. In the course of the study, it is concluded that the economic training of any category of labor resources is one of the main factors in increasing the level of economic potential of any state as a whole.

‘My Sport Won’t Pay the Bills Forever’: High-Performance Athletes’ Need for Financial Literacy and Self-Management

This paper investigates high-performance athletes’ development of their financial literacy and self-management skills and the related organisational support available to them during their athletic careers. The data were collected from 20 retired high-performance athletes (10 male and 10 female) representing six different countries (Japan, Mexico, Portugal, Singapore, South Korea, and the UK). Thematic analysis was applied to the processing of the data and five themes emerged: (1) Funding battles: financial challenges and misjudgements; (2) Coping Strategies; (3) Support from sponsors, parents, and sport organisations; (4) Development of Financial Literacy; and (5) Life After Sport. The data indicates that athletes experienced financial challenges due to a lack of organisational support, reduced or terminated funding, and limited opportunities to access sponsorship. Typically, athletes developed their financial literacy and self-management skills by ‘self-help’ or ‘trial and error’. The findings contribute to both literature and practice by providing empirical evidence on the coping strategies adopted by athletes in order to overcome financial challenges and on the methods used in order to develop their financial literacy and self-management skills. These findings inform sport organisations and governing bodies to develop support schemes for high-performance athletes as well as deepen our knowledge of athletes’ career development and transitions focusing on the financial aspect.

Knowledge About Past and Present Financial Crises in Relation to Financial Education

The crises of the past provide us aplenty of additional information to the understand the crises of the present. The crises in the past and the present have gone through very typical developmental phases in terms of their unfolding, which has already been highlighted in several studies. For this reason, it is important to know their development and operation, thus reducing the probability of future crises. It is also important to be able to distinguish the bubble from the crisis, which only occurs when the bubble bursts. However, when this happens, the effects directly or indirectly reach everyone. The level and the development of financial literacy has been a challenge not only in Hungary but also worldwide for many years. In this process, we try to understand the financial markets and to describe the tools, but how important is to discussing previous crises? In this study, we try to shed light on the knowledge of past and present crises and the related circumstances, paying a close attention on their effects in a connection of the previous financial studies with the results of a questionnaire survey conducted in 2020, basing it on extensive literature research. Our goal is to show the shortcomings of financial education, what is so important in identifying and managing crisis areas that are constantly present in the economy.

ПІДВИЩЕННЯ ФІНАНСОВОЇ ГРАМОТНОСТІ І ФІНАНСОВОЇ ІНКЛЮЗІЇ ДОМОГОСПОДАРСТВ У КОНТЕКСТІ РОЗВИТКУ НЕБАНКІВСЬКОГО СЕГМЕНТА ФІНАНСОВОГО СЕКТОРУ

The importance of household financial literacy improvement in Ukraine is the focus of public attention. Awareness of the link between the financial literacy level, financial inclusion, and financial well-being has become the engine for policy-decision making to improve it, in particular, the design of the National Strategy for the Development of Financial Literacy by the National Bank of Ukraine until 2025 by the representatives of the National Bank of Ukraine. In this context, special attention should be focused on such a component of financial literacy as borrowing. Aggressive advertising by non-bank financial institutions about the ease of obtaining consumer loans creates the illusion of a rapid increase in financial well-being, which can ultimately result in falling into a debt trap. Despite the positive shifts in the legal framework for the protection of the financial services consumer rights, in particular, credit services, there are several problems in the non-banking segment of the financial sector that need to be addressed, in particular, the lack of integrity in credit services provision (non-disclosure of complete information about services and their total cost before the agreement finalization), etc. It was found that financial regulators are taking measures to increase the transparency of this consumer lending market. Still, a comprehensive solution to the problem is possible only with a combination of efforts at two levels: at the level of financial regulators and the household level. Undoubtedly, it would be essential to include the level of non-bank financial institutions; however, so far, financial companies cannot be considered socially-oriented lenders since the usurious interest rates fully cover losses from the occurrence of problem loans. The most vulnerable groups of the households in the context of financial literacy are: by age – young people, older adults, by income – people with a low-income level, by education – people with incomplete and complete secondary education. Financial education of such vulnerable groups of the population should have two directions: first, increasing the general level of financial literacy; second, the formation of knowledge of the rights of users of financial services, already enshrined at the legislative level.

Some issues of the development of financial literacy of the population

Some issues of the development of financial literacy of the population