Financial Knowledge Research Articles

The Influence of Islamic Financial Literacy and Social Environment on Saving Intentions in Islamic Banking: A Case Study of Economics and Business Students at Universitas Sumatera Utara

This study examines the influence of Islamic financial literacy and social environment on students' interest in saving at Islamic banks in Indonesia. A quantitative survey of 100 students at Universitas Sumatera Utara, analyzed using Structural Equation Modeling (SEM) based on Partial Least Squares (PLS), reveals that both Islamic financial literacy and social factors, including religiosity, peer influence, and societal norms, significantly impact saving behavior, with social factors having a stronger effect. The research highlights challenges in improving students' Islamic financial knowledge and advocates for targeted educational programs. It suggests that aligning Islamic banking services with students' social and religious values can enhance saving intentions. The findings contribute to understanding how education and social environments shape financial behavior in the Islamic banking sector and propose strategies to enhance financial literacy for inclusive growth.

Solo Raya Young Muslims Generation Decision to Invest in Sharia Stocks and Green Investment

The younger generation, particularly Muslims, faces concerns about an uncertain future, particularly regarding job opportunities. The unemployment rate in Indonesia has shown an increase, predominantly among the younger generation. This study aims to examine the impact of financial literacy, perceived risk, and high self-confidence on the decision to invest in stocks, particularly Islamic stocks. The research was conducted in the Solo Raya area with 125 Muslim youth investors as respondents, consisting of millennials and Generation Z. The analysis technique used was multiple regression, conducted using SPSS software version 24. The regression results, with a significance value below 0.05, indicate a significant influence of financial literacy, perceived risk, and high self-confidence on the investment decisions of young Muslim investors. Good financial knowledge encourages the younger generation to invest in stocks with confidence, anticipating substantial profits in the future. Perception of risk remains a consideration, leading young investors to delay investment decisions until they feel highly confident.

Digital Financial Capability Scale

Financial digitization is an irreversible phenomenon. The objective of this study is to construct the Digital Financial Capability Scale (DFCS). Starting with the development of a definition, we created a multidimensional scale composed of digital financial knowledge, digital financial behavior, and digital financial confidence. The validation process involved a qualitative stage, consisting of focus groups, expert validation, and pre-testing, and a quantitative stage, with exploratory and confirmatory factor analyses and structural equation modeling. The DFCS assesses an individual’s perception of their ability to apply financial knowledge, adopt appropriate financial behaviors, and feel confident in making financial decisions in a digital environment. The final version of the DFCS consists of a set of 33 items divided into the three dimensions. The scale can be very useful for researchers who wish to study financial capability in the digital environment, for financial agents to evaluate clients, and for assessing the outcomes of public policies aimed at enhancing the financial capability of the population.

PENGARUH KEMAJUAN TEKNOLOGI (SOSIAL MEDIA), LITERASI KEUANGAN TERHADAP MINAT INVESTASI MAHASISWA FAKULTAS EKONOMI DAN BISNIS UNIVERSITAS MATARAM

Technology is a symbol of progress in the development of the era. Technology changes the pattern of activities in a person's daily life. Many people use and manage their finances online because of its convenience, starting from savings, buying and selling transactions, In the field of investment, there is a lot of fraud due to lack of knowledge and people who are easily tempted by the returns offered, these reasons underlie the need for each individual to understand financial literacy before taking investment action. The purpose of this study was to examine how Social Media and financial literacy affect investment interest of FEB UNRAM students. With 96 respondents, this study used an associative quantitative methodology using a questionnaire for data collection and SPSS program for data processing. The results showed that financial knowledge and technology (Social Media) have a positive and substantial influence on investment interest. Furthermore, technology and financial literacy factors have an influence of 35% of the total influence, while the rest is influenced by other variables.

Beyond Knowledge: The Interplay of Financial Knowledge, Overconfidence, Under-confidence and Demographic Factors in Personal Financial Decision Making

Beyond Knowledge: The Interplay of Financial Knowledge, Overconfidence, Under-confidence and Demographic Factors in Personal Financial Decision Making

Preferences for government regulation of pensions: What I want for myself and what I want for others

This paper analyzes how financial literacy and the perception of own eccentricity in pension preferences relates to citizens’ desire to make own choices or to delegate these to the government. It also considers how these factors relate to what regulation citizens want for their co-citizens, and to what extent the regulation they want for themselves relates to the regulation they want for others. We find that respondents with more financial knowledge want less government regulation. Furthermore, those that perceive themselves as having different preferences than the average population want less government regulation. The amount of regulation that respondents want for themselves is highly correlated with what they want for others. However, some respondents hold different preferences for themselves than for others. Specifically, those that want less government regulation for themselves and have more financial knowledge want, on average, more government regulation for others.

Financial Management Behavior with Locus of Control as an Intervening Variable: Impact of of Financial Knowledge and Income Level

Micro, Small, and Medium-Sized Enterprises (MSMEs) are business sectors that offer a range of goods and services and play a significant role in developing new industries as a solution to the unemployment issue. MSMEs have a huge potential to boost local economic activity and provide the majority of people with a source of income, which would improve welfare. MSMEs are still growing, but it is not slow and stagnant growth because of issues including capital constraints, a lack of utilization of information and technology, and poor financial literacy in managing company finances. The primary data for this study came from questionnaire surveys that were conducted directly. The results of the study allow for several inferences: The degree of income and financial literacy has a significant impact on where control is placed. The way people handle their money has a huge bearing on their financial knowledge. The majority of the time, people's financial management is unrelated to their degree of income. The behavior of financial management is significantly influenced by the locus of control. Financial knowledge has a significant impact on financial management behavior through the locus of control. The placement of control is substantially influenced by income and financial literacy levels. The way people handle their money has a huge bearing on their financial knowledge. The way people manage their finances is mostly independent of their income level. The behavior of financial management is significantly influenced by the locus of control. Financial knowledge has a significant impact on financial management behavior through the locus of control.

Integrating a Personal Finance Workshop to Enhance Financial Literacy Among Senior Medical Students: A Single Institution's Experience.

Graduating medical students frequently start their training burdened with substantial financial debt and minimal savings, especially in comparison to their peers in other professional fields. A lack of financial literacy can result in increased debt, decreased job satisfaction and contribute to physician burnout. Enhancing financial education could improve both the financial stability and emotional well-being of future medical professionals. In this study, a basic personal finance workshop was conducted for 4th year medical students at a single institution. The aim of the study was to determine the impact of the personal finance workshop on improving financial literacy. An introduction to basic personal finance workshop was open to enrollment for all 4th year medical students at The Alpert Medical School at Brown University. A 40-question survey to evaluate financial literacy was administered to all participants before and 6-months after the workshop. The topics covered included student loan management, basics of retirement accounts, investing, budgeting, saving and consensus surrounding financial topics. The results were analyzed using student paired t-test and Chi-square test of independence. Overall, an improvement in financial literacy was reported 6 months after the personal finance workshop (62% vs 54%, p = 0.004). Students subjectively reported an increase in confidence in their personal finance knowledge (16% vs 44%) and general knowledge regarding retirement savings (7% vs 55%). More than 92% of students agreed or strongly agreed that a basic personal finance education should be included as part of the medical school curriculum. A personal finance workshop for medical students nearing graduation increases awareness and confidence in financial knowledge. The incorporation of basic financial education in the medical school curriculum may help young physicians establish better financial habits that will improve their financial wellbeing.

Analysis of Financial Literacy and Overconfidence on Investment Decision with Risk Tolerance Mediation and Gender as Moderator (Case Study of Generation Z Investors in Bandung City)

Financial literacy and overconfidence are important investment considerations due to market complexity. This study examines how Financial Literacy, Overconfidence, Risk Tolerance, and Gender affect investment decisions in Bandung generation Z investors. This study uses a descriptive quantitative methodology to survey 121 Generation Z investors via questionnaire. SEM- PLS provides further evidence that financial literacy positively affects risk tolerance at a 5% significance level. At 5% significance, financial literacy positively affects investing decisions. Risk tolerance also positively affects investing decisions at a 10% significance level. Additionally, there is evidence that the impact of financial literacy on investment decisions is mediated by risk tolerance, with a significance level of 10%. Gender positively influences financial literacy and risk tolerance, with a 5% significance level. In addition, a significance level of 5% indicates that overconfidence has a substantial and advantageous effect on risk tolerance. With a 5% significance threshold, overconfidence positively affects investing decisions. Overconfidence and investing decisions are mediated by risk tolerance at 10%. Lastly, gender moderate overconfidence's effect on risk tolerance with a 5% significance threshold. For overconfidence, gender has minimal impact. The complete analytical framework of this study combines financial knowledge, overconfidence, risk tolerance, and gender to explain individual investing decisions. This study seeks to help investors, particularly generation Z, make more logical and successful investment decisions by improving their financial literacy, regulating their overconfidence, and considering risk tolerance and gender.

Student Organization Funds at A University: Utilization of Descriptive-Correlational Analysis to Determine Factors in Budgeting

Budgeting guarantees that an organization has enough resources to accomplish its objectives. There are various studies that have been published related to budgeting. The budgeting of student organization funds in university remains an understudied domain; thus, this research seeks to fill this gap by contributing to the existing body of knowledge while elucidating the allocation processes to enhance transparency and accountability. The objective of this study was to determine the factors affecting the budgeting of student organization funds in university in Philippines. The study utilized descriptive-correlational analysis supported by survey data gathered through a total enumeration of 16 student organizations, employing a hybrid (online and offline) data collection, identified a statistically significant and positively correlated linear relationship between financial-related factors and managerial-related factors. The study revealed that student organization officers have strong financial knowledge and skills. High scores in financial skills and budgetary planning escalate the effective management in achieving goals, aligning with functional leadership theory. However, there is a need for better training programs to address gaps, particularly in using budgets as forecasts. The study also found that improving interpersonal skills can enhance financial management, and the relationship between financial and managerial skills is consistently positive across different groups. Aside from a discussion of the findings considering the relevant reviewed literature, there are recommendations to academics and practitioners, as well as proposals for further study in this field. Along with these results, it is best for universities to consider integrating budget-related training and seminars if they want to have well- rounded student leaders who are indeed capable of leading and providing good-quality service to their fellow students.

Moderation Effect of Lifestyle on the Relationship between Financial Knowledge and Attitude on Financial Management Behavior among Young Adults

Moderation Effect of Lifestyle on the Relationship between Financial Knowledge and Attitude on Financial Management Behavior among Young Adults

Enhancing small business success through financial literacy and education

Financial literacy and education are critical components for the success and sustainability of small businesses. This paper explores the importance of equipping small business owners and their teams with comprehensive financial knowledge and skills. By understanding financial concepts, effectively managing finances, and making informed decisions, small businesses can improve their chances of long-term success and growth. Financial literacy involves the ability to understand and use various financial skills, including budgeting, investing, borrowing, and financial analysis. For small business owners, having a strong grasp of these concepts is essential for effective financial planning and management. Financial education programs tailored to small businesses can cover key areas such as cash flow management, financial statement analysis, tax planning, and strategic financial planning. One of the primary benefits of financial literacy is improved cash flow management. Small businesses often struggle with cash flow issues, which can lead to insolvency if not properly addressed. By understanding cash flow cycles, forecasting cash needs, and implementing effective cash management strategies, business owners can ensure they have sufficient liquidity to meet their obligations and invest in growth opportunities. Financial literacy also enables better decision-making. Business owners who are financially literate can analyze financial statements to assess the health of their business, identify areas for improvement, and make data-driven decisions. This includes making informed choices about financing options, investment opportunities, and cost management. With a solid financial foundation, small businesses can navigate economic uncertainties and adapt to changing market conditions. Tax planning is another critical area where financial literacy can make a significant impact. Understanding tax obligations and leveraging tax benefits can reduce the overall tax burden on the business. This allows small businesses to retain more of their earnings for reinvestment and growth. Furthermore, strategic financial planning, supported by financial literacy, helps businesses set realistic goals, allocate resources efficiently, and track progress. Financial education empowers business owners to develop long-term strategies that align with their vision and market dynamics. In conclusion, enhancing financial literacy and education among small business owners and their teams is vital for fostering success and sustainability. By equipping them with the necessary financial skills and knowledge, small businesses can improve cash flow management, make informed decisions, plan for taxes effectively, and develop strategic plans that drive growth and resilience in a competitive market.

KUALITAS SDM DAN LITERASI KEUANGAN PADA UMKM DI ERA DIGITALISASI: SYSTEMATIC LITERATURE REVIEW

This research aims to examine the quality of human resources (HR) and the level of financial literacy in micro, small and medium enterprises (MSMEs) in the era of digitalization through a systematic literature review. The method used is a systematic review of scientific literature published in the last five years. In the era of digitalization, increasing financial literacy is crucial for the sustainability of MSMEs, especially in terms of digital financial management and the use of financial technology. This research also identifies several challenges and opportunities in efforts to improve the quality of human resources and financial literacy of MSMEs in the digital era. These findings provide important implications for policy makers and practitioners in designing effective HR capacity and financial literacy development programs for the MSME sector in the era of digitalization. This literature study shows that the quality of human resources, MSME players are required to be creative and innovative, easily adapt to new technology, have digital skills in various work sectors, and have a high entrepreneurial spirit, as well as being able to deal with automation and artificial intelligence. Meanwhile, financial literacy also has an important role in encouraging the digitalization of MSMEs. MSME players are required to have financial knowledge related to money management, financial knowledge to assess performance periodically, financial behavior in budgeting, and attitudes towards future plans, and financial behavior regarding monthly spending budgets.

The Influence of Financial Inclusion on Stock Market Participation in Nepal: Exploring the Mediating Effect of Financial Knowledge

This paper focuses on financial inclusion (FI), a fast-embracing topic with potential drivers of economic growth and the improvement of individual financial well-being. This study contributes to the existing literature by analysing how financial inclusion influences stock market participation (SMP) in Nepal, explicitly emphasising the intermediary role of economic knowledge. The study employed a causal-comparative research design, and the data were collected from 403 individual investors actively participating in the Nepal Stock Exchange (NEPSE) trading. The statistical tools used to meet the objectives of this research are descriptive statistics, factor analysis, and structure equation modelling. The study results show that FI and knowledge influence individual investor participation in the stock market. The result also indicates that FI is positively related to stock market activity, while it is essential to enhance citizens' FK significantly. Further, mediation analysis shows that FK partially mediates the relationship between FI and SMP. This suggests its pivotal role in narrowing the gap between access to financial services and actual investment behaviour. These findings underscore the critical role of FI in creating an inclusive and participatory financial ecosystem within Nepal. Longitudinal data in future research can capture the evolving dynamics of FI and its long-term impact on SMP.

Characteristics, Causes and Countermeasures for Victims of Financial Fraud

With the rapid development of Internet technology and the increasing popularity of smart phone applications, the problem of financial fraud has become increasingly prominent, and people of different ages are at risk, which has caused serious impact on society. Victims of financial fraud are usually affected by herd mentality, loss aversion, confirmation bias, etc., while scammers use false publicity to induce investors to make their assets suffer losses. After in-depth analysis of the causes of fraud, this study believes that improving public financial literacy and strengthening financial education become the key to prevent fraud in the whole society. Specifically, college students should deepen their understanding of financial knowledge, and middle-aged and elderly people should improve their awareness of network security and basic knowledge of financial management. Through in-depth research and comprehensive policies, it is expected to build a safe and honest financial environment, ensure the property safety of people of all ages, and promote stable and healthy economic development.

Effectiveness of Live Webinars to Teach Financial Literacy: A Case Study Among Public Employees

In the wake of economic downturns, a global pandemic, and changes to work-based benefits, the need for financial education is evident as adults continue to show low levels of financial literacy. To address these issues, a financial wellness program for working adults consisting of six 1-hour webinars taught by area experts and business professionals was created among public employees in Nebraska, the United States. The sample for this case study program analysis includes 424 participants who participated in all six live webinars and completed both a pre- and post-assessment of financial knowledge, behavior, and attitudinal questions. An estimatedttest showed an 11-percentage point increase from pre- to post-assessment on the knowledge questions. Additionally, participants reported positive changes in attitude regarding their finances. Regression results showed that individuals with the lowest income benefited the most, answering 1.8117–2.1176 more questions correctly, suggesting that the webinars were especially beneficial for people who might be struggling the most financially. The positive findings from this study show that impactful financial education can be delivered online via live webinar format. This is useful for providers who develop and plan financial literacy programs for adults.

Pengelolaan Keuangan ditinjau dari Perspektif Self Efficacy dan Financial Knowledge

Everyone must learn to manage their own finances, including students. Students have the latest attitudes to meet primary and secondary needs. This must be done to avoid failure in managing personal finances with financial knowledge. The aim of this research is to find out how financial knowledge and financial independence impact the personal financial management of Bachelor of Accounting students. The primary and secondary data used in this research are qualitative data which were quantified using a Likert scale. The data collection method is through distributing questionnaires via Google Forms. Classical assumption tests, multiple linear regression analysis, and hypothesis testing were used to analyze the data. Study results from processed data

Consumers’ Financial Knowledge in Central European Countries in the Light of Consumer Research

Consumers’ Financial Knowledge in Central European Countries in the Light of Consumer Research

Pengaruh Supply Chain Management Terhadap Firm Performance Melalui Information Technology Pada Virtual Hotel Operator (VHO) Kota Malang

This research aims to determine the influence of financial knowledge, income, financial attitude, and personality on financial management behavior among owners of Micro, Small, and Medium Enterprises (MSMEs) in the village of Tawang, with a focus on the production of woven lurik fabric. All owners of MSMEs specializing in woven lurik fabric in the village of Tawang were included in this study, and the sampling method applied was saturation sampling. Primary data were obtained through the distribution of questionnaires to 86 respondents who are owners of MSMEs. Data was analyzed using multiple regression analysis methods. The results of the study indicate that financial knowledge has a positive and significant influence on financial management behavior among owners of MSMEs specializing in woven lurik fabric in the village of Tawang. Income has a positive and significant influence on financial management behavior among owners of MSMEs specializing in woven lurik fabric in the village of Tawang. Financial attitude has a positive and significant influence on financial management behavior among owners of MSMEs specializing in woven lurik fabric in the village of Tawang. Personality has a positive and significant influence on financial management behavior among owners of MSMEs specializing in woven lurik fabric in the village of Tawang.

Teachers’ Knowledge, Behavior, Attitude and Practices on Pillars of Financial Literacy Across Opol East District

The study examines the financial literacy of teachers in the Opol East District, focusing on their knowledge, behavior, attitude, and practices related to financial management. The research involved 262 respondents, using an adapted questionnaire and universal sampling technique. The study aimed to assess the respondents' level of financial literacy across key pillars like spending, earning, saving, budgeting, donating, investing, and protecting. It also sought to identify significant relationships between their knowledge, behavior, and practices, and to explore differences based on demographic factors such as age and civil status. The findings revealed that the respondents generally possess a very high level of financial knowledge, behavior, attitude, and practices. There was a significant relationship between the respondents' knowledge, behavior, and attitude, and their financial practices. However, differences in knowledge were observed based on age and civil status, while behavior and attitude showed no significant differences when grouped by these factors. The study recommends that teachers pursue advanced degrees and certifications to enhance their career prospects and remain competitive in the evolving educational landscape. These qualifications can help them improve their financial literacy and, in turn, their financial stability and career advancement.