Level Of Financial Literacy Research Articles

Comparative Analysis of Financial Literacy and Behavioural Control on the Household Wealth of Generation Y with Special Reference to Bhavnagar

This study investigates the impact of financial literacy and behavioral control on the household wealth of Generation Y in Bhavnagar, employing a primary questionnaire method. As financial literacy becomes increasingly critical in managing personal finances and achieving financial stability, understanding its influence on wealth accumulation is essential, particularly for the younger generation facing complex financial environments. The study utilized 215 structured questionnaires distributed to a representative sample of Generation Y residents in Bhavnagar. The questionnaire covered various aspects of financial literacy, including budgeting, saving, investing, and understanding financial products, along with behavioral control metrics such as impulse buying, financial planning, and risk-taking tendencies. Data analysis involved both descriptive and inferential statistics to identify significant relationships and draw comparisons between different levels of financial literacy and behavioral control and their impact on household wealth suing Friedman test appropriate. The findings contribute to the broader understanding of personal finance management and its implications for wealth accumulation among young adults in urban area.

Development of Marketing Strategy to Improve AFX Market Penetration in Indonesia

In this paper, we examine the marketing strategy of AFX, a pseudonym for a real forex trading platform. This alias helps us discuss the company’s strategies without disclosing its identity. Our focus is on AFX’s efforts to expand its market presence in Indonesia. Despite the rapid growth of the global fintech sector, AFX has not effectively reached the young Indonesian market due to low financial literacy levels. This study uses both qualitative and quantitative research methods to explore the factors that affect AFX’s position in the market and its strategic marketing actions. We apply the 7P Marketing Mix and STP (Segmentation, Targeting, Positioning) frameworks to analyze AFX’s internal processes and external challenges. The goal is to propose strategies that could increase the platform’s Monthly Active Users (MAU).

Analisis Faktor-Faktor Yang Mempengaruhi Tingkat Literasi Keuangan Pegawai di Kantor Sekretariat Daerah Kabupaten Nias

Employees at the Nias Regency Regional Secretariat Office have different understandings about financial literacy. Some employees are trapped in fraudulent investments and there are still many employees who have consumerist habits, namely buying things based on desire, not need. This research aims to determine the influence of age, gender, education and income factors on the level of financial literacy of employees at the District Regional Secretariat Office. The data collection method in this research uses primary data obtained from filling out questionnaires with 51 employee respondents at the Nias Regency Regional Secretariat office as well as secondary data obtained from journals related to this research. The data analysis methods used are validity test, reliability test, correlation coefficient test, determinant coefficient test, normality test, heteroscedasticity test, multiple linear regression test, T test and F test. The results of this study show that the factors of age and education have a positive and significant effect on the level of financial literacy of employees at the Regional Secretariat Office of Nias Regency, while the factors of gender and income do not have a positive and significant effect on the level of financial literacy of employees at the Regional Secretariat Office of Nias Regency. Simultaneously, the factors age, gender, education and income have a 76.4% influence on the level of employee financial literacy, while the other 23.6% is influenced by other variables not included in the research.

Assessing the Financial Literacy of Madrasah Principals in Formulating Revenue and Expenditure Budget Plans

This research aims to analyze and understand the level of financial literacy of Madrasah Principals in preparing the Madrasah Revenue and Expenditure Budget Plan (RAPBM) in Raudlatul Athfal (RA) Pasuruan Regency, East Java. The formulation of the problem in this research is whether there is an influence on the financial literacy of Madrasah Principals in preparing the Madrasah Revenue and Expenditure Budget Plan (RAPBM). This research uses a quantitative approach. The data source comes from Madrasah Principals. With data collection techniques through questionnaires and documentation. Then tested with simple linear regression analysis. The results found the regression coefficient value of 0.18 (positive), the correlation value was 0.029, the R square value was 0.116 (11.6%), and the significance value was 0.029 0.05, meaning that there was an effect of the financial literacy level of the Madrasah Principals in develop a Madrasah Revenue and Expenditure Budget Plan (RAPBM) in Raudlatul Athfal (RA) of East Java Pasuruan Regency. Thus, the better financial literacy, the better the preparation of the RAPBM.

Exploring the Relationship between Home Economics Competencies and Financial Literacy among High School Learners

This study examined the relationship between Home Economics Competencies and Financial Literacy among high school learners, focusing on Grade 7 learners at Davao City National High School. Employing a descriptive correlational research design, the research utilized a survey method to collect data, with the sample selected through simple quota sampling. The survey measured learners ' competencies in various aspects of Home Economics, including practical skill application, integration of theoretical knowledge with practical execution, and adaptability to changing household dynamics, alongside their understanding and management of financial literacy. Statistical analysis of the data involved calculating mean scores, Pearson-r correlation, and conducting regression analysis. The findings revealed a significant positive correlation between Home Economics competencies and financial literacy (R: 0.59, p<0.05). Regression analysis further demonstrated the impact of specific components of Home Economics education on financial literacy levels. These results suggest that proficiency in Home Economics is closely linked to financial literacy, indicating that comprehensive education in Home Economics could enhance learners ' financial understanding and capabilities. The study highlights the importance of integrating Home Economics and financial education to equip learners with essential life skills for their future.

Analysis of the Effect of Financial Literacy and Financial Technology on the Sustainability of Micro, Small and Medium Enterprises (MSMEs) in the Tourism Village of Kota Pari Mangrove Forest, Pantai Cermin District

The problem that occurs in the Kota Pari Village community is the lack of knowledge related to finance, especially in terms of Financial Literacy and Financial Technology. Financial Literacy is very important in everyday life. The higher the level of financial literacy in each individual, it will encourage an increase in financial performance. Entering the industrial revolution 5.0, many challenges and opportunities are presented. One of them is the existence of innovations in the financial sector, namely Financial Technology (Fintech). Fintech is present with the aim of facilitating services for the community to carry out economic activities more effectively and efficiently. The purpose of this study was to analyze the effect of Financial Literacy and Fianncial Technology (Fintech) on the business sustainability of micro, small and medium enterprises (MSMEs) in Kota Pari Village. The population in this study were all MSMEs in Kota Pari Village. The success of this implementation is expected to have a positive impact on the economic development and welfare of the Kota Pari Village community.

DETERMINANTS OF CUSTOMER SATISFACTION IN RETAIL BANKING: EMPIRICAL EVIDENCE FROM JAPANESE BANK CUSTOMERS

As a consumer-oriented service industry, the quality of customer service provided by banks and their customers' overall satisfaction with their services are becoming increasingly important. This study examines the factors influencing customer satisfaction with banking services provided by Japanese regional banks. Using data from the Japan Financial Institution Customer Ratings METER® of about 200,000 cases, we estimated the factors affecting customer satisfaction using an ordered probit model. The results indicate a positive correlation between direct financial services from regional banks and customer satisfaction. This relationship is solid when customers hold investment-related products. Additionally, we observed that individual customer satisfaction tends to decline with increasing financial asset holdings and increase as customers become more financially literate. Furthermore, we noticed that customer satisfaction tends to be higher for females than males, younger people than the elderly, and occupied customers than for unoccupied customers. The findings of this study suggest that customers may be more attracted to regional banks that provide investment information and advice tailored to their circumstances. It may be beneficial for regional banks to understand better factors that influence customer satisfaction, such as the age and gender of their customers, their level of financial Literacy, and the amount of financial assets they have. It would be beneficial for regional banks to consider these factors and enhance the quality of their direct interactions with customers and the customer service provided by their staff and call centers. This could help regional banks build long-term, ongoing relationships with their customers.

Needs Analysis for The Development of Financial Literacy Model in Mathematics Education for B40 Malaysia Secondary School Students

Financial literacy is a form of basic skills and understanding related to financial concepts. Individuals need to have a good foundation of financial literacy to face the increasingly complex and challenging global economic environment. Studies on the level of financial literacy of secondary school students, especially the B40 group, were not explored much. As a result, this research identified the need to develop a financial literacy model for Malaysian B40 secondary school students. The data were analyzed through descriptive statistics based on percentages, mean values, and standard deviations. The findings indicated that school leaders perceived that the financial literacy model is needed and important for B40 Malaysian secondary school students. A strong foundation of financial literacy will provide the students with the knowledge and skills to confidently make financial decisions and manage personal finances efficiently and wisely in choosing the best financial products and services.

Measuring financial divide in the rural environment. The potential role of the digital transformation of finance

Financial inclusion, which means the promotion of an affordable, timely and adequate access to a wide range of regulated financial products and services, as well as its use by all the segments of the society, is a high potential tool that may contribute to the development of the rural environment, while its absence could in turn cause a major harm. The availability of a sufficient level of financial literacy, which can be defined as the ability to understand financial concepts and risks, as well as the motivation and trust to use it when making financial decisions, is frequently deemed to be a need to reach financial inclusion by the academic literature. Financial literacy is, in turn, influenced by different variables, such as the degree of rural or urban predominance, the level of education and the available income in the household. This paper analyses the impact of such factors on financial literacy. The degree of financial literacy tends to be lower in rural environments, with limited incomes and poorer educational backgrounds, which creates a vicious circle that potentially worsens the situation of what has been called the empty Spain. Considering the importance of financial literacy to reach financial inclusion, we remark the potential of digital transformation as a valuable tool to break this negative trend in the less populated Spanish regions, and so, a cornerstone for the regenerative development of the Spanish rural areas.

The Effect of Green Intellectual Capital and Financial Literacy on Sustainable Financial Performance of Tofu Factory SMEs in Karawang Regency

Sustainable financial performance is one of the main objectives of SMEs, but achieving optimal sustainable financial performance needs to be supported by the ability of resources owned by SMEs, both from the level of green intellectual capital and financial literacy. Hence, this research aims to determine the effect of green intellectual capital and financial literacy on sustainable financial performance. This research uses a quantitative descriptive method. Data is collected in the form of primary data through the distribution of questionnaires. The study population consisted of all Tofu Factory SMEs in Karawang Regency, as many as 105 SMEs, using a Purposive Sampling Strategy Criteria; thus, the final sample used was 90 respondents. Data processing techniques were carried out using PLS with SmartPLS 3.0 software through three data testing stages: the outer model, the inner model, and the hypothesis. The results found a positive and significant influence of green intellectual capital on the sustainable financial performance of Tofu Factory SMEs. Sustainable financial performance is also positively and significantly influenced by the financial literacy of Tofu Factory SMEs. Suggestions for further researchers are expected to add variables of green product innovation, creativity capital, and green financing, because those who examine these variables are still very limited; thus, they can create a more accurate model based on the actual conditions in SMEs.

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

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

Literasi Keuangan Bagi Keluarga Masyarakat Desa Kabufin: Mengapa Penting?

In order to realize public welfare in Indonesia, one of the government's top priorities is financial literacy. The government considers that it will be easier to achieve inclusive development, community welfare and financial system stability through financial literacy. Several people in Kabufin Village, one of the communities in North Aru Sub-district, have lost their jobs due to the COVID-19 outbreak, and the selling price of seaweed has decreased. Therefore, education is needed to improve the community's financial literacy level. Kabufin villagers learned more about financial literacy through this socialization activity, so they can make better financial plans.

Financial literacy, farmland mortgage financing, and household entrepreneurship: Empirical evidence from rural China

Farmland mortgage financing policy has been actively carried out and intertwined with mass entrepreneurship strategy in China in recent years. Using survey data of 1947 rural households in pilot counties of farmland mortgage loans (FMLs), we contribute to the literature by examining the impact of financial literacy on rural households’ entrepreneurship with considering the heterogeneity between agricultural and non-agricultural entrepreneurship and exploring how financial literacy affects entrepreneurship through FMLs. The results show that financial literacy has a significant and positive impact on both rural households’ agricultural and non-agricultural entrepreneurship. Moreover, households with higher level of financial literacy show a higher probability in the application for and approval of more FMLs. This study provides strong evidence that the impact of financial literacy on farm households’ agricultural entrepreneurship is partially mediated by FMLs, while that impact on their non-agricultural entrepreneurship is partially suppressed by FMLs. We further find that financial literacy can also increase rural households’ entrepreneurial income through their approval of FMLs. These findings suggest that systematical financial literacy training programs are needed to popularize FML products and services and facilitate rural households’ entrepreneurship.

How Does Parental Education Affect Consumer Financial Literacy? Evidence from the USA

This study explores the impact of parental education on consumer financial literacy, while simultaneously scrutinizing the mediating role of early financial education in this nexus. Leveraging the insights garnered from the 2021 National Financial Capability Survey, this inquiry employs the techniques of OLS and ordered probit regression to posit that parental education exerts a significant and positive influence on consumer financial literacy. Additionally, the investigation unveils that early financial education functions as a partial mediator in the linkage between parental education and the extent of consumer financial literacy. The findings indicate that early financial education can contribute to bridging the divide between parental financial literacy levels, thereby affording all children the opportunity to acquire financial knowledge and skills. This research underscores the importance of investing in early financial education as a pivotal means to augment financial literacy and foster broader financial inclusion.

Relationship between parental income and financial literacy level among students

Financial literacy has become an important element in improving the quality of individual, familial, societal, and national well-being. This study aims to find the relationship between parental income and financial literacy level among students at Universiti Pendidikan Sultan Idris. The research employed a quantitative method using a closed-ended questionnaire to collect the data for the analysis. The research sample was selected using a stratified sampling technique and simple random sampling that consists of 366 undergraduate education students. The result indicates that parental income has a weak and significant positive relationship with financial literacy levels among students. Based on the regression analysis, the father’s income explains about 2.76% of the variance in financial literacy, while the mother’s income explains 10.8% of the variance in financial literacy. The results of this study show that parental income has a relationship with student’s financial literacy level. This finding of this study will help to understand more about the factor that can affect financial literacy.

A Study of Retirement Preparedness among Malaysian Female Millennials

The purpose of this study is to examine the effect of financial literacy, financial stress, financial management practices, saving behaviour, household size and income adequacy, on Malaysian female millennials’ retirement preparedness. A total of 268 questionnaires were self-administered and collected from Malaysian female millennials residing and working in the Klang Valley aged between 26 to 41 years old using a purposive stratified sampling method. Regression analyses were performed using SPSS software to determine the influence of variables investigated on retirement preparedness. Findings indicate that financial literacy level (β = 0.154, t-statistic = 2.669), financial stress level (β = 0.108, t-statistic = 2.207), saving behaviour (β = 0.281, t-statistic = 5.713) and household size (β = 0.242, t-statistic = 2.616), have significant positive effects on retirement preparedness. Income adequacy (β = – 0.298, t-statistic = – 2.595) on the other hand, is significantly and negatively associated with retirement preparedness, while financial management practices are found to have no influence. This study contributes to extant literature by examining the increasingly significant segment of the working population in our country. Hence, our findings should provide more insights to interested stakeholders in designing new or improving existing financial planning programs or mechanisms, particularly those related to retirement to better promote sound retirement planning among Malaysian female millennials.

АНАЛИЗ ВОВЛЕЧЁННОСТИ ОБРАЗОВА-ТЕЛЬНЫХ ОРГАНИЗАЦИЙ СФО В ПРОЦЕСС ПОВЫШЕНИЯ ФИНАНСОВОЙ ГРАМОТНОСТИ

The question of leveling up the financial lit-eracy of the population is attracting increas-ing attention from economic institutions of the state. In recent years, the government has actively supported initiatives to develop financial literacy, recognizing the importance of this aspect for the economic development of the country. Higher education institutions play an important role in improving the finan-cial literacy of the population. However, the degree of their involvement in this process may vary. Some universities are actively introducing educational programs on financial literacy into the educational process, conducting seminars, lectures and master classes for students and the general public. Other schools may pay less attention to this topic or may not have specialized financial literacy courses. This article is devoted to the analysis of the involvement of educational organizations in the process of improving financial literacy. To assess the current level of involvement, monitoring of the websites of universities in the Siberian Federal District was carried out, since the level of financial literacy of residents of this territory can be considered as a problematic link that requires additional attention and effort on the part of educational institutions, government bodies and public organizations to increase the awareness and skills of the population in the field finance. The results of the study made it possible to assess the involvement of higher education institutions in the Siberian Federal District in the process of increasing the financial literacy of the population, identify the main problem areas in this area, and offer recommendations for increasing the degree of participation of educational organizations in increasing the level of financial literacy of the population.

The Impact of Financial Literacy, Investment Knowledge, and Investment Motivation on Investment Decisions

This study investigates the relationship between management students' investment decisions and their financial literacy, knowledge, and motivation at Dr. Soetomo University in Surabaya. A total of 308 students from this academic program were chosen for the study using purposive sampling techniques, guaranteeing that the study's population is representative of the student body. We distributed carefully crafted questionnaires for data collection through Google Forms as part of the methodology used in this study. Purposive sampling methods are used to ensure the student body is well represented. We meticulously examined the gathered data using a variety of statistical methods. Among these were evaluations of reliability and validity, analyses of multiple linear regression, tests of classical assumptions, evaluations of correlation coefficients, and F and t-tests. This study uncovered insightful relationships between students' financial literacy, investment knowledge, motivation, and investment decisions. The study found no statistically significant impact of financial literacy on investment decisions, contrary to expectations. The results of the study, however, highlighted the importance of respondents' unique investment knowledge and motivation in molding their investment choices. Students' level of financial literacy, investment knowledge, and investment motivation significantly impacted their investment decisions as a whole. By considering these factors in context, we can better understand the complex dynamics at work when management students at Dr. Soetomo University make investment decisions.

PENGARUH MENTAL ACCOUNTING DAN LITERASI KEUANGAN TERHADAP FINANCIAL BEHAVIOUR DENGAN DIMEDIASI GAYA HIDUP KONSUMTIF MAHASISWA AKTIF DI DKI JAKARTA

This research explores the influence of Mental Accounting and Financial Literacy on Financial Behavior, mediated by Consumer Lifestyle, using a sample of active students in DKI Jakarta. SmartPLS 4 is utilized to analyze the research model, with SEM (Structural Equation Modeling) employed to test the hypotheses. The study involves 217 respondents from active students in DKI Jakarta. The research examines three variables: Mental Accounting and Financial Literacy as independent variables, Financial Behavior as the dependent variable, and Consumer Lifestyle as the mediating variable. The objective is to understand how students' mental accounting practices and financial literacy levels impact their financial behaviors, with consumer lifestyles influencing these relationships. Findings are expected to provide insights into the financial decision-making processes of young adults in an educational setting, contributing to more effective financial education programs and interventions. This study emphasizes the significant role of lifestyle in shaping financial behaviors, offering a comprehensive view of the factors affecting financial behavior among students, and aims to enhance financial behavior through targeted improvements in financial literacy and lifestyle awareness.

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

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