Financial Education Initiatives Research Articles

Evaluating the Impact of Education Policy Reforms on Financial Literacy: A Meta-Analysis of Financial Education Initiatives in U.S. Schools

This meta-analysis aims to evaluate the impact of U.S. education policy reforms on financial literacy outcomes through the implementation of financial education initiatives in schools. A comprehensive search was conducted across multiple databases, identifying relevant studies published between 2000 and 2023. After removing duplicates and screening based on pre-defined inclusion criteria, 35 studies were included in the final analysis. Data were extracted on key variables such as policy intervention types, student demographics, curriculum content, and assessment methods. The results were synthesized using random-effects meta-analysis, revealing significant improvements in financial literacy scores following policy reforms. However, variations in effectiveness were observed based on socioeconomic status and geographic regions. The findings highlight the critical role of well-structured education policies in enhancing financial literacy among students and offer recommendations for future policy directions to ensure equitable access and outcomes across diverse student populations. There was no financial support for this study.

Financial literacy and small and medium enterprises performance: the moderating role of financial access

Purpose The current study examines the relationship between financial literacy and small and the performance of medium enterprises (SMEs), focusing on the moderating role of financial access. Design/methodology/approach The population of this study consists of present SMEs in Kuwait, from whom a sample of 155 businesses was chosen. This study adopted a cross-sectional time frame and analyzed the collected data using partial least square structural equation modeling, and Smart-pls 4 software was applied for calculation. Findings This research reveals that financial literacy significantly influences SME performance, consistent with previous studies, showing that higher financial literacy promotes entrepreneurs' financial management capabilities and enhances business outcomes. Also, the study supports that financial access significantly moderates this relationship, pointing out that adequate access to financial services boosts the benefits of financial literacy. Research limitations/implications Major implications of this study compromise the urgent need for customized financial literacy programs and policies promoting financial thoroughness, particularly in enhancing economies. The study recognizes limitations such as its cross-sectional design, small sample size and reliance on self-reported measures, suggesting further research use longitudinal approaches, a larger sample and objective measures. Practical implications The authors’ recommendations contain comprehensive financial literacy training, development of targeted financial education initiatives, promotion of sound financial management practices and policies to enhance financial access and inclusion, all aimed at boosting SME performance and contributing to economic growth. Originality/value To the best of the authors’ knowledge, this study is Kuwait’s first of its sort. Thus, the research is even more critical in Kuwait, where social and corporate values differ significantly. Therefore, this study aimed to investigate the relationship between financial literacy and the performance of Kuwait’s SMEs moderated by financial access.

A case study of the role of strategic communication in promoting business growth through financial literacy in underserved communities

This study explores the role of strategic communication in promoting business growth through enhanced financial literacy in underserved communities. The primary objective is to assess how tailored communication strategies can improve financial literacy among small business owners and contribute to economic development in marginalized areas. Using a case study approach, the research focuses on three diverse communities: Detroit, Michigan; the South Bronx, New York; and Native American reservations. Data were collected through interviews, surveys, and analysis of program reports to evaluate the effectiveness of various communication strategies. The results indicate that culturally relevant communication, community engagement, and multi-channel dissemination are critical in overcoming barriers to financial literacy. These strategies led to measurable improvements in financial behaviors, including better budgeting, increased savings, and access to credit, which in turn facilitated business growth. The discussion highlights the importance of trust-building and cultural sensitivity in financial education initiatives, suggesting that strategic communication is a key driver in the economic empowerment of underserved communities. Keywords: Strategic Communication, Financial Literacy, Business Growth, Underserved Communities, Economic Development, Case Study

Current status, challenges and analysis of financial investment for students: A case study of Vietnam

In the dynamic landscape of global finance, the necessity for financial literacy has become increasingly prominent, especially among younger generations who face unprecedented financial risks and complexities. The paper outlines the critical role of financial education within school curricula, emphasizing its importance in preparing youth to navigate the complexities of financial products and services effectively. As financial responsibilities and decision-making increasingly shift from institutions to individuals, the need for comprehensive financial education from an early age is more pronounced than ever. The paper explores various aspects of implementing financial education in schools, addressing the challenges of integrating such programs into existing curricula, securing necessary resources, and adequately training educators. Through a review of successful case studies from different countries, such as Australia, Brazil, and the United States, effective strategies and practices are highlighted. Particularly, we focus on the analysis the financial case studies of Vietnamese students. These examples demonstrate the importance of political support, stakeholder involvement, and sustainable program implementation to ensure the longevity and impact of financial education initiatives. Additionally, the paper provides a comparative analysis of financial education learning frameworks, which illustrates the diverse approaches tailored to specific educational and national contexts. This analysis underscores the importance of adapting financial education to meet local needs while aligning with broader educational goals. Furthermore, some key policy recommendations are offered to guide schools in supporting and committing to financial education. These include developing clear, measurable objectives for financial literacy programs, creating high-quality teaching materials, and fostering collaborations among governments, educational institutions, and financial experts. Lastly, the paper discusses methods for monitoring and evaluating the effectiveness of financial education programs. It stresses the need for both quantitative and qualitative assessments to ensure these initiatives meet their goals and contribute to the overall financial well-being of students. The conclusion calls for a sustained commitment to financial education, advocating for its integration into national educational policies and curricula. This strategic approach aims to leverage significant economic events to reinforce the value of financial literacy, ensuring that future generations are equipped to make informed financial decisions and contribute positively to the economy.

Financial Literacy on Banking Sector Credit Usage: Evidence from Sri Lanka

This study uses quantitative analysis to investigate the relationship between financial literacy and credit usage in the banking sector in Sri Lanka. A sample of 210 respondents from various regions, including the rural Welioya and urban Colombo Fort, was selected to provide diverse perspectives on financial behaviours. Financial literacy, the independent variable, was assessed through respondents' knowledge in critical areas: interest compounding, inflation, time value of money, returns, and risk management. These components represent the fundamental financial understanding necessary for informed credit decisions. The dependent variable, banking sector credit usage, included various forms of credit such as personal loans, credit cards, and mortgages. Data were collected through structured interviews and questionnaires, comprehensively capturing respondents' financial knowledge and credit usage behaviours. The data were analyzed using SPSS software, facilitating robust statistical analysis. Descriptive statistics showed satisfactory financial literacy and banking sector credit usage levels, indicating basic financial proficiency and active engagement with banking credit facilities. Further inferential analysis using correlation and regression tests revealed a significant positive correlation between financial literacy and banking sector credit usage. Individuals with higher financial literacy were likelier to utilize banking credit effectively and responsibly. These findings underscore the critical role of financial literacy in enhancing banking sector credit usage. Improved financial literacy leads to better understanding and management of credit, contributing to more stable personal finances and overall economic well-being. For policymakers and educators in Sri Lanka, these insights highlight the importance of financial education initiatives. By investing in programs that boost financial literacy, it is possible to foster more informed and prudent credit usage, ultimately contributing to the stability and growth of the national economy.

FINANCIAL LITERACY, INFORMALITY, AND SMALL BUSINESS OPERATIONAL PERFORMANCE IN ZIMBABWE

Introduction: The exponential growth of small and medium enterprises (SMEs) in many developing economies is a well-documented phenomenon in business literature. However, research indicates that the expansion of most SMEs is hindered by financial illiteracy and high levels of informality, posing significant challenges to their performance and long-term sustainability. Concerns arise from the fact that only a small fraction of these enterprises successfully transition into larger firms. This study sought to address these issues by investigating the levels of financial literacy among 120 SMEs operating in Harare and Bindura, taking into account the pervasive informality within the sector. The research also aimed to evaluate the relationship between financial literacy and SME operational performance. Methods: Employing a quantitative approach within an explanatory research design, data collection was facilitated through a structured questionnaire. To capture the diverse landscape of SMEs operating in an informal context, both purposive and convenience sampling methods were utilized to select participants for the survey. Descriptive and inferential analyses were conducted using SPSS software. Results: The findings of the study revealed a significant positive impact of financial literacy on SME operational performance, indicating that advanced financial literacy can contribute to enhanced business outcomes. Moreover, the research observed an improvement in financial literacy within SME operations, evidenced by increased awareness and application of financial management skills. Conclusion and suggestion: The study recommends that efforts to promote financial literacy among SMEs should be intensified through advanced financial education initiatives, awareness campaigns, and enhanced financial inclusion strategies. Financial service providers are encouraged to play a proactive role in supporting SME growth by investing in financial awareness programs, funding educational initiatives, and actively engaging SMEs in key economic policy frameworks. Ultimately, SMEs are urged to fully embrace financial literacy as a fundamental pathway for achieving sustainable growth and long-term business success amidst the challenges of informality.

Optimizing financial decision-making for emerging adults: A compact Python-based personalized financial projection approach

The financial decisions made by emerging adults significantly influence their long-term financial well-being. To make effective decisions, they need both financial literacy and a forward-looking mindset. However, existing literature lacks tailored financial interventions for this demographic. Addressing this gap, our study implemented and evaluated a Python-based Personalized Financial Projection (PFP) among emerging adults in Hong Kong. Our findings indicate that the Python-based PFP effectively promoted prudent financial behaviors by enhancing participants’ perceived financial literacy and future time perspectives. This represents a significant advancement, providing the first empirical evidence supporting the integration of computer programming into financial education initiatives. In an era of interactive Artificial Intelligence (AI) for financial guidance, the Python-based PFP stands out as a pivotal resource capable of leveraging interactive AI to enhance financial decision-making processes.

FINANCIAL FITNESS: A GUIDE TO BOOSTING YOUR MONEY MANAGEMENT SKILLS

This research investigates the relationships between financial literacy, budgeting practices, financial behavior, and money management skills among individuals at BCA KCU Bandung. Using quantitative methods and path analysis, the study examines direct and indirect effects to uncover how these variables interact. The findings highlight significant direct relationships, such as the impact of effective budgeting on financial behavior and money management skills. Indirectly, financial literacy and budgeting practices contribute to improved money management skills through fostering responsible financial behaviors. These insights underscore the importance of promoting financial education and practical budgeting strategies to empower individuals in making informed financial decisions and enhancing their financial well-being. This study contributes to the field by offering actionable insights for financial education initiatives aimed at fostering financial stability and competence among diverse populations.

Youth in individualistic countries have higher financial literacy: Evidence from PISA

AbstractFinancial literacy is an important life skill, but to date, it is mostly studied on the individual level. To investigate the role of national culture in financial literacy, we analyze data from 20 countries participating in the Program for International Student Assessment (PISA) 2018 financial literacy assessment with four approaches to measuring national culture: Hofstede, Schwartz, Inglehart–Welzel, and Minkov–Kaasa cultural dimension frameworks. This is the first study that links PISA financial literacy scores to these four culture models simultaneously, filling a gap in research on youth financial literacy. We find that culture explains an important part of within‐country variance in financial literacy. The results indicate that individualism is positively associated with youth financial literacy scores, with the Schwartz embeddedness dimension remaining consistent after a set of control variables. Therefore, financial education initiatives need to consider in their design and implication the cultural context of the participants.

Unraveling the Future: Emerging Trends of Financial Literacy in the Digital Age

Financial literacy plays a pivotal role in navigating the intricacies of contemporary finance, and as the financial landscape undergoes transformation, so do the trends in financial literacy. This theoretical paper delves into the emerging trends in financial literacy, focusing on their potential implications for both individuals and economies. The dynamic definition of financial literacy now encompasses a range of essential components, including digital literacy, sustainable investments, and comprehension of intricate financial instruments. Personalization and technology are facilitating tailored financial education, while the application of behavioural economics principles and nudging techniques is molding positive financial behaviours. Additionally, gamification and edutainment strategies are proving effective in engaging and motivating learners, thereby enhancing knowledge retention. Inclusive financial literacy initiatives are being developed to address the needs of underserved populations, contributing to the promotion of economic growth. Moreover, the relevance of education on digital currencies and blockchain is escalating as these innovations gain prominence, and investor education is gaining significance in response to the surge in retail investing. Concurrently, integrating financial literacy into educational institutions is equipping students early in life with essential financial skills. By comprehending these emerging trends, societies can design more efficacious financial education initiatives, empowering individuals to make well-informed financial decisions and bolstering economic resilience.

Relationship between Financial Literacy and Investment Behavior among Millennials

Purpose: The aim of the study was to assess the relationship between financial literacy and investment behavior among millennials. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Several studies have highlighted a significant relationship between financial literacy and investment behavior among millennials. Findings suggest that millennials with higher levels of financial literacy tend to exhibit more proactive investment behaviors, such as saving for retirement, diversified portfolio allocation, and increased participation in the stock market. Additionally, greater financial literacy correlates with better understanding of investment products and associated risks, leading to more informed decision-making. Conversely, those with lower financial literacy are more prone to behavioral biases, such as overconfidence or risk aversion, which can hinder their investment activities. These findings underscore the importance of promoting financial education initiatives targeted at millennials to enhance their investment knowledge and ultimately improve their financial well-being. Implications to Theory, Practice and Policy: Behavioral finance theory, human capital theory and social learning theory may be use to anchor future studies on assessing the relationship between financial literacy and investment behavior among millennials. Financial institutions, educational institutions, and employers should collaborate to develop tailored financial education programs targeting millennials. Policymakers should advocate for the integration of financial literacy into formal education curricula at both the secondary and tertiary levels.

Factors Influencing Investment Decisions among College Students: A Comparative Analysis Between India & Nigeria

Investment is done for the purpose to gain profitable returns. Investing in a well-diversified portfolio offers a multitude of benefits, including capital appreciation to grow wealth over time. As a student, managing finance can be challenging, but exploring opportunities for passive income can make a significant difference in financial stability and independence. This study endeavors to comparatively analyze the factors influencing investment decisions among college students in India and Nigeria. Demographics play a pivotal role in shaping investment choices, and understanding the differences in the attitude of these countries is vital for effective financial education initiatives. The study reveals that there is a positive relationship between different factors that students consider when making these decisions. Factors such as financial security, return on investment (ROI), and risk minimization are found to have a significant impact on their choices.

Understanding the intrinsic and extrinsic factors in financial literacy of the Orang Asli in Malaysia

Purpose: This study aims to examine the financial literacy of the indigenous people known as Orang Asli in Malaysia and examines the intrinsic and extrinsic factors that may influence financial literacy among the Orang Asli in Banting, Selangor, Malaysia. Four factors are chosen namely, financial attitude and financial knowledge which represent the intrinsic factors and parental socialization and peer influence which represent the extrinsic factors.
 Methodology: The researchers approached the village chief of the Orang Asli in Kampong Tadom, Banting to seek his assistance in conducting the questionnaire survey. The researchers came to the village and distributed the questionnaires to 102 Orang Asli.
 Findings: According to the findings of this study, only financial knowledge influences the financial literacy of Orang Asli in Banting, Selangor. As a result, JAKOA can implement a few tactics to improve their financial understanding and their financial literacy such as delivering financial education programmes and teaching financial awareness at an early age. However, this factor contributes 60% to the financial literacy of the Orang Asli despite the fact that only financial knowledge significantly influences the financial literacy of the Orang Asli.
 Practical Implication: The findings of this study provide insights and recommendations to enhance financial education initiatives targeted specifically at Malaysian Orang Asli.
 Contribution to Literature: The findings of this study contribute to the existing literature on the financial literacy of the Orang Asli.

Impact of Inflation on Savings and Investments of Cooperative Societies in Awka South Local Government Area

This study is to ascertain the impact of inflation on savings and investments of cooperative societies in Awka South local government area. The researcher set to determine the effect of inflation on member’s savings, member’s investment and roles of cooperatives in addressing issue of inflation in the study area. To guide this study, three research questions and two hypotheses were formulated in line with the objectives of the study. The study was anchored on International Fisher Effect Theory by Irving Fisher (1930). The study employed a descriptive survey design, the instrument for data collection was questionnaire constructed for the study and calibrated with the 5-point Likert ordinal measurement and rating scale. The population of the study was 268 selected cooperatives members in Awka South local Government Area of Anambra State. The sample size used was 161 cooperative members using Taro Yamane formular. Adopting a judgmental sampling technique, 161 questionnaires was distributed, and 127 copies of questionnaire were completed and returned and used for this study which represent 78.9% response rate. Research hypotheses were tested using Z-Test. The finding revealed that there is a significant effect of inflation on member’s savings in the study area, had a p-value 0.0107 (p < 0.05). With a p-value 0.0170 (p < 0.05) indicating there is a significant effect of inflation on member’s investment in the study area. In view of the findings, the study therefore, recommends that stakeholders and cooperative societies in the study area carefully consider and actively manage the impact of inflation on members’ savings. Implementing strategies such as diversified investments, inflation-adjusted interest rates, and financial education initiatives can help mitigate the adverse effects of inflation, ensuring the preservation and growth of members’ savings over time. Cooperative societies should adopt proactive measures to safeguard and enhance investment portfolios. Strategies may include diversifying investments across asset classes, regularly reviewing and adjusting investment policies in response to inflationary trends and providing members with financial literacy programs to empower them in making informed investment decisions resilient to the challenges posed by inflation and also, to sustain and enhance these initiatives.

The Effects of Financial Literacy Programs on Retirement Planning and Preparedness among Middle-Aged Adults in Oyo State

This research study investigates the effects of financial literacy programs on retirement planning and preparedness among middle-aged adults in Oyo State. The study aims to determine the relationship between financial literacy and retirement planning and preparation among middle-aged adult teachers in Oyo State secondary schools, with a specific focus on male and female teachers. A descriptive survey research design is employed to observe and describe the behavior of the population without manipulation. The study sample consists of 1,125 public secondary school teachers, including 417 males and 708 females, selected through a multi-stage sampling approach. Data collection is done using a self-designed research instrument called the Financial Literacy and Retirement Planning Behavior (FLRPB) Scale. The FLRPB Scale demonstrates high internal consistency reliability with a Cronbach Alpha coefficient of 0.89. simple percentage for research questions, linear regression and univariate regression respectively use to test hypotheses one and two. The Oyo State study indicates a positive impact of financial literacy programs on middle-aged adults’ retirement planning, with 75% reporting increased knowledge and understanding and 60% enhanced confidence. Factors influencing participation include convenient schedules, relevant topics, accessible locations, and program effectiveness (65% agreement). Hypothesis testing confirms a significant association between financial literacy participation and retirement planning, explaining 66.1% of the variance. The study also highlights a moderating effect, suggesting that financial literacy participation influences the impact of gender on retirement planning. The adjusted R-squared value of 18.4% underscores the combined effects of gender and financial literacy, emphasizing the impactful role of financial literacy in shaping retirement readiness among middle-aged adults in Oyo State. It was concluded that The findings stress the importance of tailored financial education initiatives for empowering middle-aged adults and highlight the need for gender-specific considerations in program design for enhanced inclusivity and effectiveness. The research outcomes will have implications for policymakers, educators, and financial institutions in designing effective financial literacy programs tailored to the needs of middle-aged adults. The research also establishes a foundation for future studies in this field and underscores the significance of financial education in promoting financial well-being during the middle-aged adult stage of life.

Financial Literacy and Behavioral Bias Towards Consumptive Behavior: Evidence from Bandung, Indonesia

Bandung is a city with a notably elevated per capita spending rate. It denotes a considerable degree of consumptive behavior, which can be attributed to various factors. This research delves into the impact of financial literacy and behavioral bias on consumptive behavior within the productive-age population of Bandung. Employing a quantitative methodology, the study gathered data by administering surveys to 400 participants using the Slovin formula and purposive sampling methods. The data analysis was conducted through multiple linear regression. It reveals that financial literacy and behavioral bias possess significant partial and simultaneous influences on consumptive behavior. The study's results suggest that the Financial Services Authority (OJK) needs to enhance financial education initiatives among the productive-age population. Its implications for future research involve supplementary independent variables, such as framing bias and demographic factors.

Financial Literacy and Behavioral Bias Towards Consumptive Behavior: Evidence from Bandung, Indonesia

Bandung is a city with a notably elevated per capita spending rate. It denotes a considerable degree of consumptive behavior, which can be attributed to various factors. This research delves into the impact of financial literacy and behavioral bias on consumptive behavior within the productive-age population of Bandung. Employing a quantitative methodology, the study gathered data by administering surveys to 400 participants using the Slovin formula and purposive sampling methods. The data analysis was conducted through multiple linear regression. It reveals that financial literacy and behavioral bias possess significant partial and simultaneous influences on consumptive behavior. The study's results suggest that the Financial Services Authority (OJK) needs to enhance financial education initiatives among the productive-age population. Its implications for future research involve supplementary independent variables, such as framing bias and demographic factors.

Long-Term Effects Of Financial Education Initiatives In Shaping The Financial Capability Of Indian Adolescents.

In an endeavor to bridge the gap in financial literacy among Indian adolescents, I spearheaded a comprehensive survey and subsequent workshop aimed at high school teenagers. Over the course of two impactful days, our team engaged with students, imparting invaluable insights into the realm of finance

A Study of the Impact of Mobile Payment on the Enhancement of Consumption Structure and Pattern of Chinese Rural Households

Amidst China’s economic transition towards high-quality development, the latent potential of the rural consumer market has been significantly unlocked, rendering the evolution of rural household consumption patterns a pivotal area of research. In this paper, we empirically investigate the influence of mobile payment on the transformation of consumption patterns within Chinese rural households, utilizing data from the China Household Finance Survey 2017 and China Household Finance Survey 2019. This study’s findings reveal the following key points: Firstly, mobile payment significantly contributes to the enhancement of the consumption structure within rural households. Secondly, the mechanistic analysis demonstrates that mobile payment plays a pivotal role in alleviating mobility constraints and optimizing the consumption environment, thereby facilitating the improvement of rural households’ consumption patterns. Lastly, the heterogeneity analysis indicates that mobile payment has a more pronounced effect on the upgrading of consumption structures among rural households with older household heads and higher education levels. In light of these findings, this paper suggests advancing the development of mobile payment infrastructure in rural areas, enhancing the proliferation of smartphones in rural regions, and bolstering financial education initiatives within rural communities.

Financial Capability and Saving Behavior: Evidence From Industrial Workers in Thailand

This article uses unique survey data to examine the determinants and potential impacts of financial capability on the savings decisions of Thai industrial workers. A random sample of 352 individuals was interviewed, using the questionnaire to gather information on demographics and financial capability. It finds that less than half of the respondents were able to handle an emergency expense of 1 month’s income without borrowing. The results indicate that socioeconomic factors including education level, household income, and age are the key determinants of financial capability. Migrant workers from remote regions of the country are more likely to have a lower financial capability, especially in the financial knowledge component. An instrumental variable approach is used to investigate its potential impact on saving behavior. Overall, the strong and positive association between financial capability and savings adequacy suggests that financial education initiatives should place a strong emphasis on household budgeting and savings.