Financial Knowledge Research Articles

Financial Behavior and Financial Satisfaction of Non-Teaching Personnel in a City Schools Division in Negros Occidental

Financial behavior and financial satisfaction are two essential elements in the lives of the human being like non-teaching personnel. Hence, this study assessed the financial behavior of non-teaching personnel in a city schools division in Negros Occidental in terms of spending habits, borrowing practices, repayment practices, savings, and investments relative to age, sex, civil status, position level, and net take-home pay. Likewise, it determined their financial satisfaction in terms of financial solvency and financial knowledge relative to the demographics. Also, it compared their financial behavior and financial satisfaction when grouped according to the demographics. Lastly, it correlated their financial behavior and financial satisfaction. The study utilized the descriptive-comparative and correlational research design. It was responded by 106 non-teaching personnel and was determined using stratified random sampling. The instruments used were adopted-modified questionnaires. In analyzing the data, mean, standard deviation, Mann Whitney U test, and Spearman rank correlation were employed. Meanwhile, the researcher adhered to the guidelines established by the Philippine Health Research Ethics Board (PHREB). Generally, they have a very high financial behavior and high financial satisfaction. In comparing their financial behavior when grouped according to the demographics, only the net take-home pay has the significant difference. In terms of the financial satisfaction, all demographics resulted no significant differences. Regarding the relationship between the two constructs, there was a significant relationship between their financial behavior and financial satisfaction. Hence, to improve their satisfaction financially, their behavior towards finances should be given attention.

What financial topics do people search for? An analysis of search queries using text mining

Billions of web searches are recorded every day; however, little is known about the types of financial information that users search for. While many studies have investigated information exchanges in financial forums, this is the first study to identify the financial information needs of Internet users in Malaysia through an analysis of search queries. We identified financial topics and discovered subtopics of interest using text mining. We found that topics with high search volume were related to financial products and services, and very little was related to concepts and information that would increase financial knowledge. The results of this study can be used to develop more strategic online financial education content that not only meets users’ financial information needs but also increases their financial knowledge, especially when the financial knowledge of the global population has remained low over the years.

Exploring the interplay of financial literacy and financial well-being: Insights and strategies for augmenting overall financial satisfaction

This study investigates how financial literacy affects the financial health of Saudi Arabian banking industry workers in Saudi Arabia. The study uses a sample of 183 individuals and a comprehensive framework that includes components like financial behaviour, risk management, financial planning, financial knowledge, financial confidence, financial communication, and overall financial pleasure. The study finds strong positive correlations between many aspects of financial well-being and financial literacy through correlation and regression analysis. Notably, risk management, financial behaviour, overall financial contentment, and financial confidence are all positively impacted by financial literacy. The results underscore the multifaceted character of financial well-being and underscore the critical function of financial literacy in moulding favourable financial consequences. Furthermore, the study pinpoints particular domains in which focused financial literacy initiatives might be executed to augment the general financial welfare of banking industry staff members. The study sheds light on the relationship between financial literacy and well-being in a particular occupational context, which is significant information for both the academic and practical domains. The banking industry needs customized financial education programs because of the social and management ramifications. These programs will help the community’s overall financial health in addition to providing benefits to individual employees. In its conclusion, the study makes recommendations for other research directions, such as longitudinal studies and examinations of the function of digital financial literacy in the changing banking environment.

Financial well-being of internal migrant labours: the role of financial socialisation, financial knowledge and financial behaviour

PurposeThe primary purpose of the research is to examine the impact of financial socialisation (FS) on the financial well-being (FWB) of unskilled internal migrant labourers, particularly focusing on the intervening roles of financial knowledge (FK) and financial behaviour (FB).Design/methodology/approachUsing a cross-sectional research design, primary data from 269 unskilled internal migrant labourers were collected, applying the purposive sampling method. Using the data, the direct and mediated effects are examined through a three-path mediation model with structural equation modelling (SEM).FindingsDirect relationship analysis of FS on FWB exhibits an insignificant relationship, and FK also does not mediate the relationship; instead, FB acts as a potent mediator in both relationships.Research limitations/implicationsThe study enriches existing literature as it contributes to understanding the FWB of internal migrant labour, highlighting the pivotal role of FS and FB. Further, it provides insights for policymakers to enhance FWB through targeted interventions and inclusive policies, promoting social inclusion, economic empowerment and inclusive development.Originality/valueDespite the significant economic role of unskilled internal migrant labours, studies have not focused on their FWB. Hence, the study delves into their FWB through FS directly as well as indirectly using a three-path mediation model for achieving sustainable development.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2024-0044

Behavioral and contextual determinants of different stages of saving behavior

IntroductionSaving is a journey, beginning with the critical decision to initiate the process, take that pivotal first deposit step, and persistently commit to ongoing savings. However, a lot of saving plans fail already before any deposit is made, and even if the first deposit is made, long-run success of savings is far from guaranteed. In this study, we investigate both individual and saving-goal-specific determinants of successful savings.MethodWe use real-life savings data (N = 2,619 saving goals of 808 individuals) from a FinTech company in Sweden that helps individuals save for their goals. In addition, we collect a wide range of individual characteristics related to financial behavior: individuals' objective and subjective financial knowledge, self-control, and information avoidance.Results and discussionOur analysis uncovered distinctive patterns at different stages of the saving process. While objective financial knowledge didn't correlate with how much one saves, it was significantly related to the likelihood of making the first deposit. Furthermore, individuals with high self-control exhibited greater savings, though self-control was not related to the initiation of saving. Interestingly, subjective financial literacy and information avoidance showed no significant association with overall savings behavior. Additionally, our study indicated that the attainability of goals plays a crucial role in depositing funds, with more achievable goals having higher deposit likelihoods. Conversely, ambitious goals, despite their challenging nature, tended to attract more substantial savings. Our findings, grounded in real-life data, provide valuable insights into the intricate mechanisms influencing successful saving behaviors, shedding light on the complexities of financial decision-making and goal pursuit.

Exploring Large-Scale Financial Knowledge Graph for SMEs Supply Chain Mining

Exploring Large-Scale Financial Knowledge Graph for SMEs Supply Chain Mining

The mediating role of locus of control: Financial knowledge and financial attitude on financial management behavior

Purpose-Currently, individual behavior in managing finances, especially in the younger generation, needs attention. The ease of financial access can provide both positive and negative aspects. This study aimed to ascertain how financial knowledge and attitudes through locus of control can influence financial management behavior. Design/Methodology/Approach-Modeling structural equations using Smart PLS 4.0 are the data processing techniques used in this study. This study examines the impact of the indicators of each of these variables on the objects of students of the Faculty of Economics and Business in Yogyakarta, Indonesia. By distributing questionnaires, the researchers were able to collect data from up to 98 respondents. Findings-The study's findings suggest that although financial attitudes have a direct impact on financial behavior management, financial knowledge has no direct impact on financial behavior management behavior. Financial attitudes and knowledge have been demonstrated to directly affect locus of control. It has also been demonstrated that locus of control directly affects money management behavior. Furthermore, it has been demonstrated that locus of control mediates the relationship between financial knowledge and financial management behavior, but not the relationship between financial attitudes and financial management conduct. Research limitations/implications-The findings of this research are expected to be a reference and basis for knowledge, especially for the younger generation, who are expected to understand that to foster good financial management behavior, there are many things that must be considered. This study shows that financial knowledge, financial attitudes, and locus of control are elements that can influence financial management behavior. Originality/value-There is still very little research on financial management behavior in the younger generation, especially among students of the Faculty of Economics and Business in Yogyakarta, Indonesia. This study revealed factors that allegedly had an impact on the financial management behavior of students of the Faculty of Economics and Business in Yogyakarta, Indonesia.

Empowering Financial Inclusion: The Crucial Role of Public Sector Banks in Implementing Pradhan Mantri Jan-Dhan Yojana (PMJDY)

Abstract: The role of public sector banks (PSBs) in advancing the Pradhan Mantri Jan Dhan Yojana (PMJDY) is critical to achieving financial inclusion in India. PSBs play a pivotal role in ensuring the success of PMJDY by facilitating universal access to banking services, empowering individuals with financial knowledge, providing credit and insurance services, promoting digital financial transactions, and contributing to the overall economic development and well-being of marginalized populations. Their proactive involvement and strategic interventions are essential in building a more inclusive and resilient financial ecosystem in India. This paper examines the multifaceted contributions of PSBs towards PMJDY, including account opening initiatives, integration with Direct Benefit Transfer (DBT) schemes, financial literacy programs, promotion of microinsurance and credit facilities, encouragement of digital payments, and robust monitoring and reporting mechanisms

Exploration of Financial Management Curriculum Reform in Vocational College

As the core course of finance and accounting major, the study of financial management knowledge plays a positive role in promoting students’ understanding of the whole financial work and enriching financial knowledge. This paper analyzes the necessity of financial management curriculum reform, from the design ideas, teaching content, teaching mode, and teaching methods of several aspects of vocational college financial management curriculum reform work carried on the preliminary thinking, hoping to improve the teaching quality of this course will be helpful.

Proposed Financial Education Program for Selected Rice Farmers in The Municipality of Bongabong

ABSTRACT Purpose – The study determined the relationship of their profile, level of financial literacy, and extent of financial literacy practices to the level of financial standing of the selected rice farmers in Municipality of Bongabong. Methodology/approach – The study surveyed 84 selected rice farmers in Municipality of Bongabong. The study used descriptive-correlational research design, and percentage, weighted mean, and multiple regression for the treatment of data. A survey questionnaire, interview and focus group discussion were made in data gathering. Findings – The study revealed that selected rice farmers have remarkably high levels of financial literacy in terms of budgeting, savings, and debt management. Also, the selected rice farmers have strong financial position in terms of income, indicating that rice farming and their other sources of income generate a lot of money. However, it was found to be low in terms of social security, financial risk management, and investing. Moreover, their ability to cope with farming and household expenses, as well as savings, are limited. The study concluded that income and financial literacy knowledge in terms of borrowing had a positive influence on rice farmers' financial standing; thus, increased income generation and financial knowledge are essential to sound financial well-being. Novelty/value – Based on the findings, the researcher proposed a financial education program tailored to the needs and circumstances of rice farmers. With this, issues in financial constraints of the rice farmers could be addressed through the community extension focused on financial education.

Measurement Scales on Investment Decision-making. Empirical Evidence Based on MiFID Questionnaires.

The MiFID European directive regulates the provisions of investment services and improves the protection of retail investors. To know the financial knowledge and experience of investors, this directive uses basically two types of questionnaires: appropriateness and suitability tests in which are employed different measurement scales. Since some sub-fields of Behavioral Finance are focused on the study of perception biases, the main objective of this paper is to analyze some advantages and drawbacks of numerical and verbal rating scales, and to examine their effects on investors’ perceptions. To do that, it was carried out an empirical study based on different measurement scales: verbal, numerical rating scale, and verbal scale considering proximities. In this contribution, the concept of ordinal proximity measure is employed to collect the individuals’ perceptions about ordinal scales.

Peran Mediasi Faktor Demografi pada Pengaruh Financial Attitude, Locus of Control dan Financial Knowledge Terhadap Personal Financial Management Behavior: Study Kasus pada Pegawai Tetap Universitas Muhammadiyah Sumatera Utara

Research aims to testing the influence of financial attitudes, Locus of Control, financial knowledge on the behavior of personal financial management through the role of mediation factors of demographics focusing on age and working period of respondents studied. The population of this research is the remaining employee of the University of Muhammadiyah North Sumatra, which amounted to about 300. SPRESSING SCHAMED ABDER 75 respondents with Slovin formula to know the number of respondents is the employee remains University of Muhammadiyah North Sumatra. Methods of data collection wears a questionnaire. Data analysis using SmartPLS 4.1.0.0. The results of research, financial knowledge has a positive effect on demographic factors, financial knowledge has a positive effect on personal financial management behavior, and Locus of Control has a positive effect on behavior of personal financial management. Private personnel behavior is very important in life. Each individual has a certain level of financial knowledge to help apply the behavior of personal financial management. In addition, each individual is endowed with intelligence and level of personal financial knowledge that enables them to perform activities in financial management. Financial knowledge greatly has an effect on personal financial management behavior. The better financial knowledge, the better also financial management. A person's decision in financial management is also inseparable from the role of demographic factors of age and work. Age also affects the decision in the behavior of personal financial management. The higher the age and effort of individuals will be better as well as in the management of personal finances and can be more focus in the short-term and long-term personal management of the applicable appearance in the form of behavior

Empowering futures: A financial literacy assessment among graduate students at Tribhuvan university

The purpose of this study is to assess the level of financial literacy among graduate students. The focus is on exploring the relationship between financial literacy and three key factors: financial attitude, financial knowledge, and financial behavior. The study targeted graduate students at Tribhuvan University's Faculty of Management (FOM) in Kathmandu valley with 710 students receiving a structured questionnaire. Total of 427 valid responses were received, establishing the sample for analysis. Descriptive and relational research designs was adopted for the analysis. Data was collected through a structured questionnaire, reflecting participants' financial attitudes, knowledge, and behaviors. The study concludes that there exists a positive association between the levels of students' financial attitudes, knowledge, and behaviors with their financial literacy. Additionally, the research findings reveal a significant and positive impact of financial attitude, knowledge, and behavior on financial literacy. Government authorities will utilize findings of the study for the development of policies aimed at enhancing financial literacy programs in Nepal. Banking and Financial Institutions (BFIs), Microfinance Institutions (MFIs) as well as regulators can use the insights to modify financial literacy programs that address the specific needs identified in the study. Professors, teachers, and trainers can incorporate with the study's results for curriculum planning, designing courses to foster financial attitudes, knowledge, and behaviors among graduate and post-graduate students.

Mediating Role of Perceived Behavioral Control on the Relationship Between Financial Knowledge and Saving Intention

Young people, particularly university students, are often believed to desire a lifestyle associated with complete enjoyment, leading to money saving issues. The purpose of this study was to examine the effect of financial knowledge on the saving intention of Generation Z university students majoring in  business and economics in Vietnam, as well as the mediating role of perceived behavioral control in this relationship. Quantitative and qualitative methods were used. The primary data was collected from respondents (N = 625) majoring in business and economics and in Vietnam and analyzed. The results indicated that while financial knowledge did not exert a direct influence on saving intention, perceived behavioral control mediated the relationship between financial knowledge and saving intention. Additionally, there were differences in saving intention among demographic groups, namely, gender, income, financial support from family, and household living arrangement. The results have relevance for educational institutions, financial organizations, and individuals, especially students in the disciplines of business and economics.

Financial Knowledge, Behavior, and Attitude on The Financial Well-Being of The Sustainable Livelihood Program Associations

Research Objective: This study evaluates and develop a predictive model on the financial well-being, financial knowledge, behavior, and attitudes of Sustainable Livelihood Program Association (SLPA) officers and members, a program of the Department of Social Welfare and Development (DSWD) under the Pantawid Pamilyang Pilipino Program (4Ps).   Theoretical Framework: The study is grounded in the Sustainable Livelihood Program (SLP) Theory of Change, which seeks to understand how institutional initiatives such as policies, strategies, programs, or projects contribute to progressive and sustainable outcomes (Acosta & Avalos, 2018). The financial competencies of Sustainable Livelihood Program Associations (SLPAs), particularly in spending, are strongly influenced by Modigliani and Brumberg's Life Cycle Theory of Consumption and Spending.   Methodology: This is a quantitative study using descriptive- correlational design. There are 209 participants consisting of officers and members from selected SLPAs in Malaybalay City.   Results: Findings revealed that SLPA officers and members have a moderate level of financial knowledge and attitude. However, financial well-being requires improvement, underscoring a discrepancy between current and desired financial conditions within the association. Moreover, significant relationships exist among financial well-being, financial knowledge, attitude, and behavior.   Implications: The communicated findings to DSWD Region X contributes for the enhancement of the implementation of the SLPA. The results on the level of financial well-being will be enhanced when focused is made on the financial knowledge and attitude. The materials for financial education may be revised.   Originality or Value: This study contributes to the literature on financial literacy and well-being of the government supported associations to ensure that upliftment on the financial well-being of members.

Mitigating local bias in equity crowdfunding: a financial ecology perspective

Abstract This study analyses the relationship between geographic space, social networks, and financial knowledge in interregional equity crowdfunding flows based on the concept of financial ecology. Using data from a leading Dutch equity crowdfunding platform, we find that interregional crowdfunding investment decreases with geographic distance. Furthermore, the negative effect of distance is weaker if interregional social networks are strong and if the investor region has a high concentration of the financial industry. The results extend the conceptual foundation of financial ecology by explaining how individual behaviors affect the macro-level output of a financial ecology.

A STUDY ON GENDER DIFFERENCES IN FINANCIAL LITERACY

Financial Literacy is the basic understanding of personal finance. With the increase in complexity of the financial market the need for financial literacy has become more and more important. Financial literacy helps an individual to make informed financial decision. The study aims to identify the differences in financial literacy level of the male and female respondents. KEYWORDS: Financial Literacy, Financial Knowledge, Financial Behaviour, Financial Attitude

Navigating Disability Insurance Uptake: The Complex Interplay of Consumer Confidence, Human Capital, And Financial Perceptions

This study investigates factors associated with purchasing disability income insurance in the United States, emphasizing consumer confidence, perceived financial knowledge, and human capital. The research contextualizes disability income insurance as pivotal to financial stability, addressing the shortfall in personal safety nets and economic equilibrium. The prevalence of disabilities from common illnesses necessitates a thorough understanding of insurance mechanisms. Methods: Using the 2022 Survey of Consumer Finance data, the study employs logistic regression to evaluate the relationship between consumer confidence, financial knowledge, human capital, and sociodemographic characteristics. The methodology intricately controls for age, employment status, marital status, and race, ensuring nuanced analysis. Results: Significant differences across racial groups were identified. Asian participants exhibited the most substantial reluctance towards insurance, whereas a positive correlation between financial knowledge and insurance acquisition was found among Black individuals. Generational analysis indicated varied perceptions, with a marked decrease in insurance propensity among older White and Latino generations. Discussion: The study emphasizes the importance of financial education that caters to various communities. It highlights the significance of cultural and societal norms in financial decision-making, especially among different racial groups. The study also spotlights the role of human capital in accessing insurance, calling for policy interventions that cater to the population’s unique needs. In conclusion, this analysis affirms the significance of consumer confidence in financial decisions and advocates for culturally responsive financial education and policy-making. It also identifies critical areas for enhancing the reach and efficacy of disability income insurance to foster economic resilience and well-being.

Determinants of Access to Financial Services among Adults in Tanzania: The Evidence from FinScope Tanzania Survey (2017)

There is low financial inclusion across developing countries, especially those in Sub-Saharan Africa (SSA) including Tanzania. Almost three quarter of the SSA citizens don’t hold any form of account with a formal financial institution. East African countries have poor access to financial services especially the highly populated rural areas. The study examined the determinants of access to financial inclusion among adults in Tanzania. The study used a longitudinal research design to access data collected from 9459 respondents who were selected from the FinScope Tanzania 2017 which were   weighted by NBS. Data were analyzed using both descriptive and Binary Logistic Model as inferential statistics with aid of STATA version 16. The study was able to find out that individual savings as a key determinant to financial inclusion was relatively low this being due to income gap, education and access to technology. Most of the respondents were willing to save but many-faced constraints to save. finally, the determinants of access to financial services in Tanzania among adults was identified to be age, education level and income. The study concluded that financial inclusion (access to financial services) among adults in Tanzania was mainly determined by age, education and income. Therefore, the effort should be made by the government to stimulate technological adoption so as to enhance variety of service delivery mechanism and provide financial knowledge to the society to inform people to make proper decisions regarding their financial well-being.

Financial literacy and risk-taking behavior: a study of graduates and undergraduates

PurposeThis study examines the relationship between financial literacy and risk-taking behavior in the stock market for both graduates and undergraduates.Design/methodology/approachThis study conducted two surveys on two groups: graduates and undergraduates. The questionnaires were sent to the two groups via “Google Form”. The surveys were undertaken from March to October 2021, with final data on 500 undergraduates and 400 graduates. The three techniques used are multiple linear regression (MLR), structural equation model (SEM) and ordinal logit regression (OLR) to examine the causal relationships.FindingsBased on survey data on 400 graduate and 500 undergraduate students, our results show that financial literacy is positively associated with risk-taking behavior (i.e. use of debt and willingness to use debt) after controlling for demographics. Graduates with higher levels of financial literacy are more likely to use debt. Undergraduates with higher levels of financial literacy are more willing to use debt. In addition, parental education has a significant moderating effect on the association between financial literacy and debt use among undergraduate students. The results are robust compared to the alternatives.Research limitations/implicationsAlthough this study finds a positive association between financial literacy and risk-taking behavior among graduates and undergraduates, and these results are robust to the alternatives, the scope of this study is limited and only focuses on Vietnam. Hence, it needs to be expanded overseas. Next, graduates may make investment decisions based on stock prices or valuations, and as a result, the link between financial literacy and stock valuations should be investigated in subsequent research. Last but not least, further studies should also examine the digital financial literacy level of the younger generation, as it plays an important role in the digital age.Practical implicationsFirst, this study finds that higher financial literacy tends to use more debt, implying that financially literate people know how to use debt smartly to earn more profits. Second, students with higher-educated parents are less likely to use debt for stock investment, meaning that parents help students avoid possible risks while in the university. Finally, female graduates and college students all perform lower in financial literacy than their male counterparts. This can create a larger gender gap in financial literacy between women and men, particularly, in a society in which men often play the leading role in the family. As a result, it calls for policymakers, educators and parents to pay more attention to improving financial literacy among girls and women in general.Originality/valueThis study has three contributions. First, this is the first study to examine the impact of financial literacy on risk-taking behavior between two groups of graduates and undergraduates. The results show that individuals with a higher level of financial literacy are more likely to engage in risk-taking behavior (i.e. debt use) in terms of the stock market. Recent research, for example, Phung et al. (2022), examines investors’ informal debt (from families and friends), while this study investigates graduates’ debt use (from brokerage firms). Second, parental education is a significant mediator between college students’ financial literacy and debt use. The literature on parental socialization mainly documents parents’ direct influence on children’s financial knowledge and performance (Shim et al., 2010; Phung, 2023). Unlike previous research, this study finds that parental education plays a moderating role between college students’ financial literacy and their risk-taking behavior. Finally, three methods and multiple models are used to test causal relationships. The results are robust compared to the alternatives.