Financial Educators Research Articles

The Impact of Financial Planning on Financial Well-Being with a mediating role of Tax Planning among salaried employees: An empirical study

In this study, the author explores how financial planning and tax planning impact individuals' financial well-being, while also examining the relationship between these two factors with the mediating role of tax planning. The research focuses on 274 salaried employees, gathering data using questionnaires distributed to salaried employees in Chennai City. In order to test the suggested correlations, the respondents' data was examined using the ‘Partial Least Square Structural Equation Modeling (PLS-SEM)’ technique. The analysis reveals that financial planning significantly influences individuals' financial well-being. Additionally, tax planning is found to play a crucial and positive mediating role in these relationships. The paper emphasizes the importance of tax planning in enhancing financial well-being. Key findings indicate strong positive correlations between proactive financial planning and improved financial well-being, with tax planning acting as a key mediator. The research shows that individuals who practice systematic financial planning and effective tax management enjoy greater financial stability, lower financial stress, and better long-term wealth accumulation. This study offers evidence-based insights for creating more comprehensive financial planning frameworks that include tax optimization strategies. By connecting conceptual model with practical applications, the study serves as a guide for individuals, financial professionals, and policymakers aiming to improve financial well-being through strategic planning and tax optimization. The key implications suggest that organizations and financial educators should focus on holistic financial literacy programs that cover both broad financial planning strategies and specific tax optimization techniques.

Exploring Factors Influencing Millennial Generation Investment Decisions in Indonesian Capital Market

Research Aims: This study explores the factors influencing millennial generation investment decisions in the Indonesian capital market through a phenomenological approach, focusing on understanding how digital technology, social media, cultural factors, and financial knowledge shape their investment behavior. Design/methodology/approach: The study employs a qualitative phenomenological research design with 20 millennial investors aged 27-42 years. Data collection involved semi-structured interviews, three focus group discussions, and investment journal reviews. Analysis utilized Colaizzi's seven-step phenomenological method to identify emergent themes and patterns. Research Findings: The study revealed five major themes: (1) sophisticated integration of multiple digital platforms in investment activities, (2) strong influence of social media and online communities mediated by local cultural values, (3) evolution of risk management approaches combining technological tools with cultural considerations, (4) transformation of financial knowledge acquisition through digital platforms, and (5) significant impact of cultural-economic context on investment decisions. Theoretical Contribution/Originality: This research extends existing investment behavior theories by providing a comprehensive framework for understanding millennial investment decisions in emerging markets. It uniquely combines technological, social, and cultural perspectives, demonstrating how traditional investment theories need modification to accurately reflect millennial investment patterns in the Indonesian context. Research limitation and implication: The study's limitations include its focus on urban millennial investors and potential regional bias within Indonesia. However, the findings provide valuable insights for investment platform developers, financial educators, and policymakers in adapting their approaches to better serve millennial investors in emerging markets.

Are Women More Risk Averse? A Sequel

This paper reexamines the question of gender differences in financial relative risk aversion using updated methods and data. Specifically, the paper revisits the 1998 work “Are women more risk averse?” by Jianakoplos and Bernasek, suggests refinements in their model in relation to the database used, namely the U.S. Federal Reserve Board’s Survey of Consumer Finances (SCF), and performs new tests on the latest SCF from 2022. The suggested refinements pertain first to an enhanced computation of wealth, which includes additional categories of assets such as 401(k)s or other thrift savings accounts, and second to the more subtle handling and consideration of specific demographic data of the SCF respondents. Unlike the original study, which also included married couples, the new study focuses exclusively on single-headed (never-married) households. This eliminates ambiguity about the actual financial decision maker in households, enabling a clearer assessment of individual gendered behavior. Following the refinements, the new tests reveal a continuing pattern of decreasing relative risk aversion; however, contrary to the 1998 findings, there is no significant gender difference in financial relative risk aversion in 2022. This study also documents that education levels strongly influence risk-taking: single women with higher education levels are more likely to hold risky assets, while for men, higher education correlates with less risk-taking. The paper concludes by informing policymakers and financial educators so as to further tailor their strategies for promoting gender equality in financial decision-making.

Exploring Family Financial Socialisation Activities in Malaysia

Parents play a pivotal role as the first financial educators for children through family financial socialisation. The positive effects of family financial socialisation on young adults’ financial capabilities are well established in many studies. Given the importance of family financial socialisation, less is known about the factors that shape and determine the ways and the extent family financial socialisation is carried out in various families. The main purpose of this article is to explore the association of various factors such as parents’ characteristics, family demographics, and parents’ financial experience on the types and extent of family financial socialisation activities that take place in Malaysian families. Financial experiential learning, financial discussion, and demonstration of financial activities are the three-family financial socialisation activities explored in this study. Using a sample study from Pulau Pinang, it is found that parents’ socioeconomic status, age, family demographics, parents’ financial sophistication and parents’ financialmarital strain have significant associations and effects on types of family financial socialisation activities that take place in Malaysian homes.

Role of social comparison orientation on financial management behavior in a developing nation: examining the mediating role of financial self-efficacy and the moderating effect of financial socialization

Purpose This study aims to explore the impact of social comparison orientation (SCO) on financial management behavior (FMB) in a developing country with a collectivist culture. It examines how SCO is related to FMB directly and through financial self-efficacy (FSE) and how financial socialization (FS) moderates the SCO–FMB relationship. Design/methodology/approach Data was collected from 301 adults in Dhaka, Bangladesh, using self-administered survey questionnaires. Mediation and moderation analyses were performed using Smart PLS software. Findings The results indicate that SCO was positively associated with FMB. FSE mediates this relationship, enhancing SCO’s positive impact on FMB. Additionally, FS moderates the effect of SCO on FMB, with higher levels of FS strengthening this positive relationship. Research limitations/implications The primary implication of this research is the revelation that SCO can positively impact FMB, contrary to traditional views, particularly when FSE mediates the relationship and FS moderates it. The findings suggest that interventions aimed at enhancing FSE and promoting FS can improve FMB. These insights are valuable for financial educators, policymakers and individuals in developing countries seeking to improve financial behavior. Originality/value This study makes four significant contributions: first, it demonstrates a positive direct relationship between SCO and FMB. Second, it reveals that FSE mediates the relationship between SCO and FMB. Third, it shows that FS moderates the SCO–FMB relationship. Fourth, it focuses on a sample from the emerging middle class in a developing country representing a collectivist culture, providing unique insights into this dynamic segment.

Financial and Tax Literacy: A Child’s Early Exposure to Financial Concepts during the Educational Process

Aims: The viability of states today is largely based on the collection of tax revenues, which are considered as necessary for them to carry out their specific functions. Thus, the aim of this text is to discuss the development of citizens' tax culture, not as an isolated economic phenomenon but, as a phenomenon directly linked to their general financial literacy. Because it is the writer's belief that simply complying with the mandate to fulfill the tax obligation is not enough for the citizen to understand his contribution to the finances of his country, or, better, to appreciate this contribution in the context of understanding the ways in which the world moves financially. Methodology: It is a big question on how financially educated the modern man is and to what extent this financial education, his literacy or financial literacy, includes the concept of tax in its content to a sufficient extent to awaken consciences. In this text, the focus is on the exact age / educational stage at which this path to financial and tax literacy can begin, so that it can be integrated in a systematic way into the formal educational process. In order to draw conclusions about the appropriate stage for initiating financial awareness, the trends in the global financial literacy landscape were explored. This analysis aims to determine when it is considered appropriate to teach children financial concepts and how financial literacy is linked to making appropriate financial decisions and tax awareness at different age stages. An effort was carried out to evaluate the current financial and tax knowledge and behavior of Greeks. The research was exclusively bibliographic, i.e., a meta-analysis based on previous qualitative and quantitative studies. Results: Concerning the introduction of systematic financial and tax education for adolescents in schools, the studies accessed suggest that the age range of 12-14 marks a significant milestone for young people to begin delving into the more intricate concepts of the modern economy. Tax awareness among adolescents could arguably be attainable from around age 11 or 12, as they start demonstrating financial comprehension comparable to that of adults. Discussion: The findings of this research showed that the level of financial literacy in Greece depends on demographics, such as the geographical location and the gender of young people. Other factors are also important, but removing geographical and gender restrictions, combined with the provision of training programs already in the upper grades of Primary School, can improve financial awareness and develop the tax culture of citizens. This development requires the implementation of subjects in the curriculum, the training of the teachers so that they are able to teach children even 11 or 12 years old, the distinction of the concept of ethics from tax ethics and its teaching at an earlier age stage, and the drawing from international educational practices, i.e. leveraging successful financial literacy programs worldwide in order to obtain valuable insights for designing effective youth training initiatives.

Golden Horizons: Investigating Shariah-Compliant Gold Investment Awareness Among Youth

Gold has long been regarded as a reliable medium of exchange and a store of value, owing to its inherent traits and functions associated with money. In the context of Malaysia, gold investment emerges as a lucrative and secure asset category for investors. They have the option to either physically possess and safeguard gold or opt for a more modern approach by establishing a gold investment account. Over recent years, there has been a noticeable growth in awareness among the public and seasoned gold investors in Malaysia. However, this upward trend has not been as pronounced among the younger demographic. This research aims to investigate the extent of awareness regarding Shariah-compliant gold investment among the young Muslim population in Terengganu, Malaysia. Utilizing a quantitative research methodology, data was collected through a survey administered by researchers via a Google Form, disseminated across various social media platforms. The study successfully obtained data from a sample of 120 respondents. The findings of this study reveal that, on the whole, the young Muslim generation in Terengganu exhibits a high level of awareness regarding Shariah-compliant gold investment. The significance of this research lies in shedding light on the dynamics of gold investment awareness, particularly within the context of Shariah compliance, among the youth in a specific region of Malaysia. The results provide valuable insights for financial institutions, policymakers, and educators seeking to tailor their strategies to enhance financial literacy and promote Shariah-compliant investment practices among the younger population. As Malaysia continues to evolve as a financial hub, understanding and addressing the investment preferences and awareness levels of its diverse demographic groups become crucial for fostering a robust and inclusive financial landscape. Since this study was conducted with small sample size and focusing in Terengganu only, it is strongly recommended to expand the research to other states in Malaysia.

Bridging governmentality and economization: temporality as a financialization device

ABSTRACT Reflecting and reinforcing the financialization of everyday life, non-profit social service organizations, the primary deliverers of benefits and services in the US, are increasingly incorporating financial education and empowerment into their service repertoires. In this article, I examine and compare how financial educators in two organizations that target different populations/problems – women in (economic) transition and chronically/intergenerationally poor people – give financial advice to their clients. I draw a parallel between what Foucault calls the ‘repressive hypothesis’ and claims by personal finance experts and educators that we are silent about money. I suggest that these claims amount to a ‘money repressive hypothesis’ that gives experts what I call an ‘advisor’s benefit’: the appearance of being freed from silence about money and thus able to liberate others from silence and steer them toward financial wellness. I show that financial educators perform this benefit through temporal frames – meaningful ways of intersubjectively organizing experience in reference to time, that invite different levels and forms of attention to the past, present, and future – of their clients’ problems. Bridging literatures on governmentality and economization, I contend that these temporal frames are disciplinary financialization devices that act in connection with sociocultural constructions of populations/problems to assemble financial subjectivities.

Logistic Analysis on Financial Literacy and Its Determinants: An Empirical Evidence from Maichew Town of Tigray, Ethiopia

Financial literacy is increasingly recognized as a crucial factor for individual and societal well-being. This study investigates the determinants of financial literacy within a unique financial and economic context, focusing on civil servants in Maichew Town, Tigray. A mixed-methods approach was employed, combining quantitative and qualitative data collected through a self-administered questionnaire distributed to a random sample of 271 civil servants. The study employed a binary logistic regression model to examine the relationship between financial literacy, measured as a binary outcome, and a range of socio-demographic and economic variables. These variables included age, gender, income level, work experience, marital status, field of study, access to financial news, and the number of dependents in the household. The findings reveal that gender, field of study, access to financial news, and the presence of dependents significantly influence the financial literacy levels of the respondents. Notably, female civil servants, those with a background in fields related to finance and economics, individuals with access to financial news, and those with dependents demonstrated higher levels of financial literacy. Conversely, age, work experience, marital status, education level, and income level did not exhibit a statistically significant relationship with financial literacy. This study contributes valuable insights into the factors shaping financial literacy among civil servants in a specific Ethiopian context. The findings underscore the importance of targeted interventions and financial education programs that address the unique needs of different demographic groups, particularly women and those in professions not directly related to finance. By enhancing financial literacy, policymakers and educators can empower individuals to make informed financial decisions, ultimately fostering greater economic stability and well-being.

Influence of Digital Financial Literacy on Investment Behaviour of Nepali Investors

This study investigates the influence of digital financial literacy on individual investment behaviour of Nepali investors. In order to explore the influences of digital financial literacy on individual investment behaviour, causal-comparative research design was used and responses from 358 investors were collected through a survey questionnaire. The convenience sampling method ensured statistical reliability and diversity in perspectives. Questionnaires were distributed through various platforms, ensuring anonymity and confidentiality. Descriptive statistics, regression, reliability and correlation were some of the tools used for a thorough study of the data. These methods enabled non-parametric testing and multiple regressions by providing a quantitative comprehension of the variables. The research establishes that digital financial literacy significantly influences investment behaviour in Nepal. The statistical correlation matrix and regression analysis, with an R Square of 0.589, highlight the interconnectedness of digital financial proficiency, financial literacy, financial goal management and individual investment behaviour. Investment behaviour is significantly influenced by financial literacy, digital financial literacy and financial goal management, having the p-value less than 0.05. However, cyber security and awareness did not show a significant relationship with investment behaviour. Policymakers in Nepal are focusing on enhancing digital financial literacy to empower individuals and cultivate a financially literate society. Financial institutions and educators should leverage digital platforms to enhance financial education and prepare individuals for informed investment decisions in Nepal’s evolving stock market landscape. Examining the digital financial literacy of Nepali investors can help in making more informed decisions regarding investments by looking at structures, comparing findings with those from other developing nations and assessing the effects of educational efforts.

Rise From the Ashes: The Modeling–Compensation Hypothesis Applied to Parent Financial Socialization

According to family financial socialization theory and previous research, parent financial modeling (i.e., children learning financial matters by observing parental behavior) is positively associated with emerging adults’ financial behaviors and financial outcomes. However, qualitative evidence and the modeling–compensation hypothesis suggest that emerging adults can intentionally compensate for negative modeling (i.e., those whose parents performed bad financial behaviors can intentionally enact good behaviors themselves). Using a diverse sample of 4,182 US emerging adults, this study is the first to quantitatively explore the modeling–compensation hypothesis in the context of parent financial modeling. We identified four groups: Intergenerational Financial Flourishers (received positive modeling and were good money managers; 56.6%), Financial Phoenixes (received negative modeling and were good money managers; 21.6%), Socialization Squanderers (received positive modeling and were bad money managers; 15.9%), and Intergenerational Financial Flounderers (received negative modeling and were bad money managers; 5.9%). In terms of financial outcomes (financial independence, financial satisfaction, and financial distress), the Intergenerational Financial Flourishers were the best off, followed by the Financial Phoenixes. Thus, while high-quality parent financial modeling is ideal, there is hope for those who received negative modeling, and financial educators and practitioners can help.

The Relationship Between Self-Control Factors and Household Saving Behavior

We examined the effect of self-control factors on saving behavior based on the behavioral life cycle hypothesis, using the 2016 and 2019 Survey of Consumer Finances datasets. A model that included self-control factors (behavioral life cycle variables) had a more significant effect on saving behavior than a model that included only normative life cycle variables. Among self-control factors, having at least one saving rule was positively associated with saving behavior, but saving goals were not significantly associated with saving behavior. Having a foreseeable major expense was negatively associated with saving behavior. The findings of this study can assist financial planners, counselors, and educators in developing and implementing strategies related to self-control factors to enhance saving behavior.

Cryptocurrency Purchases Among Young Adults: Behaviors and Educational Opportunities

Consumers in many countries are at increased risks to financial scams through their use of digital technology. The number of consumers who own cryptocurrencies is rapidly increasing along with cryptocurrency-related scams. Financial education has not kept up with the rise in digital finance tools. In this article, we seek to answer why young adults in Australia are investing in cryptocurrencies and how they are being financially educated. We analyzed survey responses from 136 young Australians aged 18 to 24 who own cryptocurrencies. We identified why they are investing in cryptocurrencies and how they are being financially educated. Our findings show that most young people are purchasing Bitcoin from an exchange as a potential investment. We also found that they learn about cryptocurrencies and nonfungible tokens from social media and have concerns about storing their digital assets. Findings from this article point to opportunities for educators to reach young consumers through online financial education.

The drivers of adult financial literacy: Exploring the role of attitudes towards finance

AbstractThis study investigates the factors driving the financial literacy of adult population in Spain using a regression count model (specifically the latent class Poisson model). The paper pays special attention to the effect of certain financial attitudes and financial personality traits (such as financial myopia, risk aversion, attitude to financial planning and self‐perception of financial vulnerability) upon financial literacy. The results demonstrate a positive association between the financial skills, the sociodemographic characteristics and the attitudes and personality traits of individuals regarding finances. Furthermore, the analysis permits the conclusion that the effects of the financial attitudes analysed in the study vary among the different population groups, which suggests the need to adapt financial literacy promotional programs to the characteristics of the target group. Findings have implications for financial educators, practitioners and policymakers to help them recognize the proper financial program to be delivered on the basis of the FL levels and the sociodemographic composition of the individuals.

Behavioral Biases in Investment: Overconfidence, Disposition Effect, and Herding Behavior

This section introduces the research by outlining the importance of understanding behavioral biases in investment decisions, particularly within the context of retail investors in Pakistan. This research work primarily intends to find out the influence of behavioral biases over investors' investment decisions. The population of this research are individual investors investing in Pakistan Stock Exchange. The research design of this study is quantitative. The sample size of current research was 400 individual investors. The survey assessed several types of biases, including overconfidence, disposition effect, and herding behavior. The result outcome indicated that with an increased number of such biases present, it significantly influences the investment decisions of investors. This study specifically indicates that respondents are often subject to overconfidence, the disposition effect, and herding behavior, and finally the factors that lead to relatively poor investment decisions. These results underline the identification and need for tackling these biases within the financial decision-making domain. Financial professionals, comprising advisors and educators, are better placed with skills on how to design strategies that deter more adverse consequences of these biases. They can enhance investment quality in decision-making by well-directed training programs and advisory services. Therefore, this study underscores the pivotal role that behavioral finance plays in improving investor outcomes and calls for the rectification of behavioral bias to attain more informed and rational investment decisions.

Management Students' Perception Towards Investment in Equity Markets

The fascination with the equity market, which is renowned for its ability to generate exponential wealth, has captivated individuals from different generations. However, for those who are new to the financial landscape, the idea of investing can be overwhelming. This is especially true for management students who possess business acumen but have limited experience navigating the complexities of the stock market. As these students prepare to enter the professional world, where making personal financial decisions is crucial, it becomes essential to understand their perceptions of equity market investment. This research project aims to thoroughly explore the attitudes, beliefs, and concerns of management students regarding their participation in the equity market. By carefully examining their financial knowledge, risk tolerance, and motivations for investing, the project seeks to create a detailed understanding of how this important demographic perceives the dynamic and influential financial realm of equity markets. This exploration is vital as it provides valuable insights into potential obstacles and opportunities for stakeholders such as financial institutions, policymakers, and educators. The findings obtained from this study have the potential to guide specific interventions and initiatives in various fields. Armed with these insights, financial institutions can develop investment products and services that are tailored to the specific needs and preferences of management students. Policymakers can also benefit from these findings by using them to design targeted financial literacy programs that aim to empower future business leaders with the necessary knowledge and confidence to navigate the financial landscape responsibly. Additionally, educators can seamlessly incorporate the project's discoveries into their curriculum, ensuring that management students acquire the essential financial literacy skills needed to make informed and responsible investment choices. Ultimately, the goal of this research project is to make a significant contribution towards shaping a generation of financially knowledgeable individuals who can actively participate in and meaningfully contribute to the economic ecosystem. Key Words: · Equity Market · Management Students · Portfolio Decision-making · Financial Literacy · Investment Behavior

Investigation into the Interrelation Between Parenting Styles and Parental Financial Behavior

Parenting styles are an essential factor in how parents raise their children. More literature is needed about the role of parenting styles on parental financial socialization. How parents manage their finances is essential as children observe and imitate their parents' behavior. This study investigated the relationship between parenting styles and parental financial behavior. Parenting style was measured through authoritarian, neglectful, authoritative, and permissive. This study adopted a quantitative research approach and used a self-administered questionnaire to collect data from young adults in two provinces (Gauteng and Mpumalanga) in South Africa. Correlation analysis was used to analyze data. The results showed a significant positive relationship between authoritarian, neglectful, authoritative, and permissive parenting styles and parental financial behavior. Thus, it is concluded that a significant positive relationship exists between parenting styles and parental financial behavior. The study implies that parents should invest more time in understanding and evaluating their parenting styles and adopt authoritarian, authoritative, and permissive parenting styles as they were found to support and foster financial socialization. Financial educators and the government must design and implement financial programs to inform parents of different parenting styles. This study contributes to the existing body of knowledge by empirically testing the relationship between parenting styles and parental financial behavior.

The Assessment of Investment Habits Among College Students

The purpose of the research project is to look into college students’ financial practises. College Students’ investment preferences, practices, and attitudes towards various investment possibilities will be investigated in this study. With an emphasis on understanding college students’ financial habits in terms of their investment choices, risk tolerance, investment goals, and awareness of various investment possibilities, the research will be carried out through surveys and data analysis. The results of this study will advance knowledge of college students’ investment practises and offer guidance to financial institutions, educators, and regulators as they build plans and initiatives to encourage young investors to make responsible financial decisions.The project will investigate the elements-such as financial literacy, familial history, and investment knowledge-that affect college students’ investment choices. Additionally, the study will look at college students’ levels of knowledge and comprehension of the risks associated with investing as well as how they view the advantages and disadvantages of various investment options. The findings of this study will offer insightful information about college students’ investment practices, which may be utilized to create specialized financial education programs and investment methods to assist nascent investors in making wise financial decisions.

“What About the Children?”: College Students Simulating a Child’s Role During the Community Action Poverty Simulation

Research has shown that poverty simulations are an effective tool for teaching about the lived realities of poverty. In the Community Action Poverty Simulation, participants simulate the roles of adults, children, or community workers. This qualitative study analyzed college students’ reflection papers to assess their experiences simulating the child’s role. Three themes emerged from the analysis: helplessness, the impact of childhood poverty, and future actions based on the experience. Students who simulated the child roles reported feeling helpless, developed more compassionate attitudes toward poverty, and cited specific antipoverty actions they planned to take due to the experience. This study demonstrated the importance of experiencing a child’s perspective to help understand poverty and has implications for financial counselors, planners, and educators.

Improving women's financial literacy as a means of social inclusion

This article explains how much financial education has helped women become self-sufficient in handling family finances without consulting a male family member. In this research, we examine how well-informed urban, semi-urban, and college-educated women are about the many investing opportunities available to them. Given that the gender ratio in the United States is 933 women for every 1000 men and the female literacy rate is 60.6% compared to the male literacy rate of 81.3%, it is critical to educate women about money management in order to improve the economy. The ability to understand and manage one's finances is a crucial tool for surviving economic and emotional hardships, as it can shed light on the wide range of opportunities available for generating sustainable income. Women who are financially literate are in a position to make decisions based on a broad understanding of personal finance and a variety of practical considerations. Those that are financially educated are able to make sound decisions about their money, whether it be saving, investing, borrowing, or something else. Given the myriad ways in which financial literacy influences Behaviour, the process of financial education, the attainment of financial literacy, and monetary well-being (Lusardi and Mitchell, 2014), it is clear that improving financial literacy is crucial.