Financial Literacy Awareness Research Articles

A study of Rural women’s financial literacy and awareness level towards financial products and services in Kerala perspective with Special reference to Malappuram District

Financial literacy is crucial in empowering individuals, particularly rural women, to make informed financial decisions and achieve economic well-being. This study explores the financial literacy and awareness levels of rural women in the Malappuram district, focusing on the relationship between socio-demographic factors and financial literacy. The research, conducted through a cross-sectional descriptive study among 100 women, reveals that most respondents are young, educated, and possess a moderate level of awareness and knowledge of financial tasks and products. The study highlights significant barriers to financial literacy, including social and cultural issues, lack of education, income constraints, and gender discrimination. Despite these challenges, the penetration of financial products like bank accounts, debit cards, and mobile banking is relatively high among the participants. The study finds a significant relationship between age and financial literacy but no significant correlation between education or income levels and financial literacy awareness. The findings underscore the need for targeted financial education programs to enhance financial literacy among rural women, addressing identified barriers and focusing on age-specific strategies to improve their economic participation and contribute to national economic development.

SME Performance: Ability to prepare financial reports based on SAK ETAP and financial literacy (Empirical study of SMEs in the city of Serang)

The background of this research is that SME managers in preparing financial reports based on SAK ETAP, the managers are given training and assistance by the Department of Cooperatives, SMEs, Industry and Trade of Serang City, but the managers still focus on production without paying attention to recording financial transactions, thus hindering the managers in carrying out development, evaluation, and decision making. The formulation of the research problem is whether there is an influence between the ability to prepare financial reports based on SAK ETAP on the performance of SMEs and financial literacy as a moderating variable. The aim of this research is to test and analyze whether there is an influence between the ability to prepare financial reports based on SAK ETAP on performance and financial literacy as a moderating variable. The research method uses quantitative methods, the SMEs population in Serang City was taken using purposive sampling, hypothesis testing used PLS. The finding that the ability to prepare financial reports possessed by managers in Serang City affects performance, this is due to the intensive training and mentoring carried out by the cooperative, SMEs, industry and trade services but SMEs managers have not been able to prepare it. general financial reports with financial literacy awareness. This research concludes that the ability to prepare financial reports and financial literacy have a positive influence on SMEs performance, while the ability to prepare financial reports mediated by financial literacy has no effect on financial literacy.

Validating the Financial Literacy Construct - Impressions and Reflections

Financial literacy (FL) literature has gained momentum in the last one and half decades in the Indian context with the government’s active role. FL encompasses knowledge of financial instruments and practices in its scope. The current study aims to measure FL by collecting primary data from the students, salaried class, traders and businessmen of two towns of Tripura, a North Eastern Indian state. For executing the study, it prefers a cross-sectional research design. Data from 160 respondents were collected using a self-administered interview-schedule applying disproportionate stratified random sampling technique. A pre-test with randomly chosen 30 respondents affirms its wording, content validity and ordering. The tool’s reliability and validity further support applying inferential statistics. Significant cross tabulation results affirm impacts of demographics on the levels of FL. For assessing the perceptional differences in FL basics between the two groups of respondents, that is, students-salaried class and traders-businessmen, it applies WPG analysis indicating significant perceptional differences about basic FL, and FL awareness levels. For evaluating whether the four types of sample respondents classified based on their occupations have any significantly differential influences on FL awareness, the Pearson Correlation Coefficient results affirm the same. Policy implications, limitations and scope of further research also indicated.

Assessment of Financial Literacy and Its Impact on Investor’s Decisions in Saudi Arabia: A Study in the Context of Enabling Financial Planning to Strengthen Economic Development

The significance of financial literacy is increasing faster in today’s world. Financial literacy provides individuals with necessary and adequate financial knowledge and makes them professionally aware of managing their finances. It plays a vital role in the economic development of an economy. The study examines the impact of financial literacy on investors’ financial decisions, financial planning, selection of financial products, and financial literacy awareness program and its influence on investors’ investment decisions. In order to obtain information from the respondents, we employed a questionnaire that was both structured and self-administered. The investigation analyzes the survey responses from 360 respondents in Saudi Arabia. Various statistical methods such as descriptive statistics, correlation analysis, analysis of reliability, analysis of variance (ANOVA), and regression analysis were utilized to evaluate the data obtained. The results obtained in the study indicated that financial literacy has a significant impact on investors’ financial decisions, financial planning, and the selection of financial products that influence investors’ investment decisions. The research also found that financial literacy is affected by financial literacy awareness programs, which have a favorable influence on the investment decisions made by investors. The study’s findings will help prospective investors understand the importance of raising financial knowledge for their future financial goals.

Moderating effects of gender on financial literacy and loan repayment behaviour of Small and Medium Enterprises (SMEs) in Kano State, Nigeria

The purpose of this research is to examine the moderating effect of financial literacy and loan repayment behavior of small and medium enterprises (SMEs) in Kano State Nigeria. Previous studies suggested that many SME owners lack the financial literacy skills needed to run their business effectively and make accurate financial decisions and yet financial literacy skills help individuals to navigate the financial world and make informed decisions about their money and minimized the chances of being misled on the matters. Borrowers and business characteristics were used as indicators of loan repayment behavior. Financial literacy which is the independent variable for the study was analyzed in terms of book-keeping literacy, budgeting literacy and debt management literacy. Beneficiaries of financial literacy programme of three microfinance banks namely; Bichi MFB, Dawakin-Tofa MFB and Ungogo MFB were used. The population of the study is 900 beneficiaries that participated in financial literacy programmes but the sample size is chosen to be 90using Kothra technique of determining sample size. Convenient sampling technique was used to access the subjects in administering questionnaire. Data was analyzed using Structural Equation Model (SEM). In line with the expectation, the study established that gender has a positive moderating effect with book-keeping literacy while gender has negative moderating effect on budgeting literacy and debt management literacy in Kano State. On the basis of the findings, it can be concluded that financial literacy awareness need to be intensified to enable SME owners key into it to achieve their business objectives. Thus, it recommended that SME owners should consider enrolling in financial literacy programmes and other related programmes in and outside MFBs so as to enjoy the benefits of financial literacy.

Investigating The Mediating Role of Financial Literacy on The Relationship Between Women Entrepreneurs’ Behavioral Biases and Investment Decision Making

This study investigates the theoretical link between heuristic behavioral factors and the investment decision-making of women entrepreneurs, focusing on the impor­tance of financial literacy as a potential mediator shaping prudent decision-making. We argue that women’s financial literacy is an efficient way to apply behavioral considerations in wise decision making. Using the proportionate stratified sampling method, we collect­ed data from women entrepreneurs who were formally registered in Punjab Province, Pakistan. Owing to the complex model and small sample size, the smart PLS method was applied to analyze the structural relationship between the measured and latent con­structs. The results show that overconfidence and availability heuristics have a significant positive impact on investment decisions, while financial literacy plays an essential inter­vening role between the overconfidence heuristic, availability heuristic, and investment decision-making. Our results support the execution of financial literacy awareness among women entrepreneurs to stimulate their financial decision control and give them the in­dependence to make prudent financial decisions.

STOCK EXCHANGE MARKETING AS A FACTOR IN THE DEVELOPMENT OF INFORMATION PROVISION OF PRICE FORMATION MANAGEMENT IN GOODS EXCHANGING

It was researched the economic nature of the concept of “exchange marketing” and the levels of its management of exchange activities in this article. We analyzed the specifics of the exchange marketing, that conditioned due toexchange services. It was proved that exchange marketing is a factor in the development of information management of pricing in goods exchanging. The foreign experience of using exchange marketing as a method of management of exchange activity and as a method of research the market of exchange services was studied. The definition of «information support for the management of exchange pricing of commodities» was formulated. The conceptual model of balanced development of information support of pricing management in goods exchange includes: first of all it includes the conceptual basis that consist: 1) methodology: methods (costly, marketing and parametrical) and approaches (organizational, local, system (complex), functional, marketing, processing and resulting); 2) principles: systematicity, standardization, compatibility, data security, efficiency, reliability, adaptability, productivity, development, transparency and high standards of information disclosure; secondly, it includes tactical landmarks: 1) exchange system consolidation; 2) electronic securities and derivatives circulation streamlining; 3) the level of financial literacy awareness raising. It was proposed to use such a tool as Fillratio control to satisfy traders interests. It was turned out that the exchange gives the market makers a competitive advantage over traders by providing the last look system. It was determined that one of the goals of the exchange is to provide equal conditions for all market participants. It has been established if market makers given an opportunity to cancel any trader’s transaction, so they (market makers) will do that with the least market volatility and the least movement of the market price in a disadvantageous way for the market maker. It was substantiated that a large amount of turnover is occupied by algorithmic (automated) trading systems, the so-called trading robots of two types: arbitration and others among the investment-speculative operations.

Microfinance and Women’s Empowerment in Myanmar

Like in many other developing countries, microfinance programmes in Myanmar have become an avenue to reduce poverty. This research examines whether microfinance in Myanmar has empowered female clients compared to non-microfinance clients, in terms of: (i) general decision-making (children’s education, family planning, children’s marriage, health care); and (ii) financial decision-making (income utilisation, loan usage, savings, investment). Primary data was collected using a questionnaire survey to achieve the research objectives. The sample of the survey consists of two groups of women living in the Ayeyarwady region, Myanmar: (i) Beneficiaries of microfinance programmes, and (ii) non-beneficiaries of any microfinance institutions. Female clients either started a new business or expanded/diversified an existing business using microfinance, which helped to increase income and savings. Overall, 89.8% of microfinance clients have gained significant empowerment (in making general and financial decisions combined). The discriminant analysis based on four indicators - children’s education, children’s marriage, savings, and investment - shows that the decision-making power of microfinance clients has improved compared to non-clients. The government should actively promote a microfinance ecosystem through robust microfinance institutional frameworks including, microfinance institutions, intermediaries, and local government agencies. Financial literacy awareness campaigns should be organised frequently to promote wider women’s participation in microfinance programmes.

Spending Model under Financial Literacy

Aims: The study attempted to assess how family background, and peer role affect the spending decisions of working youth in Pakistan. Current study also tested effect of financial literacy as mediator between relationship of peer role and family back ground with spending decisions of working youth.
 Study Design: Cross sectional survey research (Quantitative)
 Place and Duration of Study: Different organization in Pakistan, between May- September-2019
 Methodology: Working youth among different organizations with total of 309 responses were usable out of total sample 574from Pakistan through stratified random sampling Structural equation modeling was applied through Smart PLS3.
 Results: The study found that the insignificant effect of peer role on spending, and significant effect on financial literacy. On other side family background shown insignificant effect on spending decisions but significant effect on financial literacy. Furthermore this study also found significant effect of financial literacy on spending decisions. Additionally this research also shown significant mediating effect of family background and peer role on spending decisions through financial literacy.
 Conclusion: Findings of this study shaded the light that how family background, peer role have influenced spending decisions under umbrella of relative income hypothesis and life cycle hypothesis, directly and indirectly through mediation by financial literacy. Further policy makers could design policies and arranging training workshops for financial literacy awareness among working youth.

Agent Banking And Poverty Reduction In Benue State, Nigeria

The study investigated the impact of agent banking on poverty reduction in Benue State, Nigeria. The study is hinged on the agency theory, risk management theory, the regulatory dialectic theory and the basic needs theory. Focusing on the agent banking activities of the First bank PLC, the study used the Taro Yammene’s formula to select 199 agents for investigation. Questionnaire was used for data collection but only 185 copies of the questionnaire were retrieved for analysis. The study employed descriptive tools such as tables and percentages and paired t-test as well as Foster, Greer and Thornbecke (FGT) index. Also, a logit regression model was employed to ascertain whether or not agent bank has the probability of reducing poverty in Benue State. The study found that engaging in agent banking has the probability of reducing poverty in Benue State which is typically an agrarian state with high poverty incidence among highly unbanked population. Agent banking in this unbanked State where only 11 local government areas out of 23 local government areas have the presence of banks has the potential of increasing financial inclusion and enhancing financial literacy. With the presence of agent banking in the state, it will enhance business sustainability and facilitate financial transactions. These will increase economic activities and increase employments and reduce poverty. Given the potentials of agent banking for socio-economic development in the state, it is recommended that financial literacy awareness should be created so that rural population who have long lived unbanked to accept banking services via the agent banking. Also, banks operating in the state should leverage on the opportunity of agent banking to penetrate the rural population with a view to achieving financial inclusion in line with the CBN’s revived National Financial Inclusion Strategy (NFIS) which places implementation focus on women, rural areas, youth, Northern Nigeria and MSMEs to achieve 95% financial inclusion rate by 2024.

Access to Credit and Households’ Borrowing Behavior in East Africa

The primary objective of this paper is to examine how the borrowing behavior of households in the East African region are influenced by their demographic characteristics- gender, age, income and education using Tobit regression. The paper employs survey data adapted from the World Bank's 2017 Global Findex. The results show that male-headed households borrow more often than female-headed households, and that older head of households are more likely to participate in borrowing activities than their younger counterparts. Generally, the results reveal that the household whose age is relatively small should be more indebted and will have a lower level of income, and consequently fewer physical assets. This is due to the life-cycle theory which suggests that younger households have expectations of their income to rise in the future as opposed to the older households, who are heading to retirement. So, they are more willing to borrow and acquire durables and other assets due to their hopes and expectation of getting more income in the future. On the other hand, the findings reveal that the education of the head of the household is the enabling factor for the household to borrow due to the financial literacy awareness one can derive from education. The income level of the household is also considered as the determining factor of the household's borrowing likely-hood. Since borrowing requires the guarantee in terms of borrower's income, the higher the income levels of the borrower the more likely the individual will receive the loan from the lenders. Despite household's education, age and income the results also show that the gender of the households influences the borrowing behavior of the households and that women may not have the borrowing power and ability as compared to their men counterparts. This may be due to their inability to have collateral and guarantees used as loan back-up, their poor financial education awareness, and lower business experience. Therefore, understanding households' borrowing behavior in East Africa is very important, and the results of the study may be of policy interest towards the strengthening of the East African Community financial inclusion agenda. Also, the study commends governments of the East African region to promote households' borrowing and increase opportunities for household investment in achieving intended economic growth.

FINANCIAL LITERACY AWARENESS AMONG SME’S IN WESTERN DIVISION OF FIJI

The purpose of this study is to measure the level of financial literacy awareness of the entrepreneurs of small and medium-sized enterprises (SMEs) in Western Division of Fiji. This study had used financial planning, analysis and control, book-keeping, understanding of funding sources, business terminology, finance and information skills and use of technology to measure the financial literacy awareness among the entrepreneurs. The data collection method was quantitative, closed ended questions were used rather than matrix questions. Data was gathered through the use self-administered questionnaire. A Likert scale questionnaire development method was used to gather data for analysis purpose. The results suggest a low level of financial literacy awareness by SMEs owners. Recommendations to improve financial literacy are suggested.

Spending Behaviour of a Case of Asian University Students

Recently, interest in exploring professional financial issues mainly money management was shown to be highly increased due to the societal awareness of its benefits. The skill of money management is a major tool in exercising control over them to obtain quality life as working adults. Stratified random sampling was used to examine the spending patterns of student population at one of Malaysia universities. Due to the habit of student expenditures on campus which was shown to influence the way money is managed through their lives. Taking a look at literatures from researchers outside Malaysia, it can be seen that financial literacy among students is required to restrain future problems that may arise from lack of knowledge on individual financial management. This study emphasizes the need on financial literacy awareness among the students looking into their background, financial awareness, attitude and family. Data analysis show that majority of the students do not put to practice correct skill in money management.