Financial Literacy Skills Research Articles

A comparative analysis of financial literacy levels and initiatives among students in five European countries

Given the expected advantages for individuals and societies, financial literacy is high on the policy agenda in many countries. This paper reports the results from a unique survey conducted on a sample of 13–16-year-old students in five European countries, aimed at measuring and comparing their level of financial literacy skills. The results indicate significant differences in the level of financial literacy across countries that are interpreted in the light of the differences in the countries’ educational policies and experiences with financial education. The findings suggest that supra-national coordinated action is needed to guarantee better financial knowledge and safeguard economic stability in future crises. JEL-classification: I21; G53; O57; O16.

Entrepreneurial Self-efficacy and Financial and Calculation Skills Can Shape Different Profiles of Venture Intentions

The complexity of finances and access to financial markets is one of the main challenges facing an entrepreneur. However, not many studies examine the effect of financial skills on entrepreneurial intentions. Our research describes venture intentions, considering motivations, contextual factors and personal traits in different clusters, based on the strong sense of entrepreneurial self-efficacy and the levels of financial literacy and numeracy skills. Results demonstrate that financial and numeracy skills and self-efficacy shape different profiles of potential entrepreneurs. The study shows that social motivations exert a favourable impact on entrepreneurial intentions only for those who firmly believe in their abilities or have high financial and numeracy skills. For those without outstanding skills or high self-efficacy, contextual factors play a key role in the decision to launch a new venture.

Organisational Support for High-Performance Athletes to Develop Financial Literacy and Self-Management Skills

This paper reports the results of analysing desk-based data on organisational support for high performance athletes to develop their financial literacy and self-management skills when transitioning out of sport. There are two research questions: (1) Do sport organisations provide support schemes or other interventions such that high-performance athletes develop their financial literacy and self-management skills? and (2) Do sport organisations provide financial support schemes for high-performance athletes’ retirements? If so, what do they involve? Desk-based data collection was applied to 23 sporting organisations; these comprised 21 national organisations representing 19 countries, the International Olympic Committee (IOC) and the Oceanic National Olympic Committee (ONOC). Fifteen of the 23 organisations, representing 14 countries, provided some support or interventions on financial planning and self-management within their career assistance programmes. The findings also indicate that most organisations in 17 different countries did not provide any financial support for athletes’ retirements. While a number of sport organisations have developed appropriate interventions to assist high-performance athletes to develop financial literacy and self-management skills, such schemes appear only to be provided to high-performance athletes who have competed at the highest level e.g., Olympics, world championships, etc. Support for athletes at lower levels should also be developed and delivered by national governments, or by national sport organisations.

Impact of Financial Management Practices on Sustainable Growth of SMEs: A Case of Catering Organizations in Bulawayo Metropolitan Province

The study was conducted to establish the impact of financial management practices on the perdomance of SMEs in Zimbabwe. The problem statement identified lack of business growth of SMEs. The objectives of the study were to establish the impact of financial management practices on the sustainable growth of SMEs. The study was based on a sample of 101 SMEs from the Catering Industry that were selected through random sampling. Data analysis was done through SPSS version 2.2. The findings revealed that SMEs used mostly four financial management practices: capital budgeting, working capital management, Capital structure, and financial reporting analysis. The challenges faced by SMEs in implementing prudent financial management practices were mainly poor management skills, lack of business registration and lack of financial literacy skills. The results of the study implied that most challenges faced by SMEs were internally localised. The study recommended a model for growth of SMEs in which the government was the major supporter of SMES through financial literacy training and provision of financial support. SMEs were recommended to use equitable financial management practices.

Survival Strategy During the Covid-19 Pandemic: Research on the Sustainability of MSME

E-commerce is a popular business solution for most people to increase income and maintain business sustainability during this Covid-19 pandemic. This study aims to determine the effect of e-commerce and financial literacy on the performance and sustainability of MSMEs. This study uses primary data by distributing questionnaires to 160 MSMEs owners in Gunungkidul Regencies. The sampling method used is purposive sampling with specific criteria. The hypothesis test used is SEM-PLS. This study is a development of several previous studies using a linear regression model. In contrast, this study uses a structural model because this method can detect more complicated models. The results of hypothesis testing indicate that e-commerce and financial literacy affect performance, and performance affects business sustainability. The results of this study can provide ideas to MSMEs owners to improve their financial literacy skills and use e-commerce to survive in an uncertain environmental situation. In addition, support from the government is needed in the form of an infrastructure network so that MSMEs access is more accessible.

Empowering Women in Finance through Developing Girls' Financial Literacy Skills in the United States.

This study examines the effectiveness of a financial literacy program, Invest in Girls (IIG), in promoting financial capability among high school girls. Using a quasi-experimental separate-samples pretest-posttest design and a longitudinal qualitative study, the study aims to assess the program efficacy and investigate the perspectives of the female students on its impact on their knowledge, behavior, and future goals and aspirations. The results indicated that the participants had significantly higher confidence for engaging in financial literacy after the program. The findings from the longitudinal study also suggested that that the program was influencing the students in positive ways, increasing their financial capability and leading them to consider wide occupational pathways available in finance. Given the lack of female leaders in the world of finance, the IIG program aims to address gender disparity in financial knowledge and highlight the importance of building financial literacy skills among girls.

Financial literacy among Finnish adolescents in PISA 2018: the role of financial learning and dispositional factors

The aim or the present study was to examine the relative importance of financial education in school and families and dispositional factors (competitiveness, work mastery, meta-cognition) in predicting financial literacy among Finnish adolescents. The data on the 4328 Finnish 15-year-olds was drawn from the PISA 2018 assessment. Financial literacy was measured by tests, and financial education and dispositional factors were assessed by adolescent questionnaires. First, the results showed that financial education in school was positively associated with adolescents’ financial literacy skills, whereas parental involvement in financial matters did not relate or related negatively to financial literacy scores. Second, dispositional factors, such as competitiveness, work mastery, and meta-cognition (effective strategies to understand/remember information, to summarize information, and to evaluate source credibility) were the strongest positive predictors of the financial literacy scores. Overall, the present study emphasizes that certain social factors (schools and families) and especially dispositional characteristics (personality/motivation and critical thinking/learning strategies) may shape the development of the financial skills of adolescents.

Effects of actual and perceived financial literacy skills on financial well-being at retirement

THE AIMS OF THE PAPER
 Studies have not explained fully how financial literacy, decision making skills and the diverse forms of financial literacy overconfidence interact with each other to explain households’ actual and perceived financial well-being at retirement. This study aims to map the interactions among these constructs within the elderly population.
 METHODOLOGY
 In the framework of a larger assessment on subjective well-being and its antecedents at retirement, three hundred retired people between the age of 65 and 85 filled out a questionnaire in their home in Hungary in March 2019.
 MOST IMPORTANT RESULTS
 Elderly people are overconfident in their financial literacy skills both on absolut and relative levels. Percieved financial literacy is a better predictor of financial situation than actual financial literacy. However, financial literacy overconficence relative to others harms elderly people’s financial situation. Subjective financial well-being is mainly driven by the actual financial situation. Decision making skills play an important role in the calibration of financial literacy skills and have an additional direct effect on the subjective level of financial well-being. Our outcomes reinforce that it is indeed worth promoting programs helping elderly people acquiring domain-specific financial knowledge. These programs may lead to better financial situation and higher self-efficacy. Moreover, our findings imply that it would be worthwhile for programs to concentrate on the calibration of financial knowledge vis-á-vis others.
 RECOMMENDATIONS
 To complement the mainstream literature, the study examines the forms of overconfidence and their effects on financial well-being separately and concentrates on the elderly population.
 Acknowledgements: The project was financed by the European Social Fund: Comprehensive Development for Implementing Smart Specialization Strategies at the University of Pecs (EFOP-3.6.1.- 16-2016-00004). Declarations of interest: none.

Pengembangan Bahan Ajar Untuk Meningkatkan Kemampuan Literasi Finansial Siswa SD

In the 21st century, one of the life skills that students must master is financial literacy. However, the facts on the ground show that financial literacy material has not yet been included in learning in elementary schools. This study aims to develop teaching materials to improve the financial literacy skills of elementary school students. Based on the analysis of the social studies curriculum in grade IV elementary schools, there is no editorial related to financial literacy. One solution is the development of teaching materials. This teaching material was developed using the Design and Development method with the Richey Klein model. This model consists of planning, production, and evaluation stages. Data collection techniques used are literature study and expert validation. The research instruments needed are AMP sheets, teaching material structure sheets, and questionnaire sheets.

The effectiveness of a financial literacy and job-readiness curriculum for youth from low-income households

Intergenerational poverty and scarce financial resources can create and sustain detrimental behaviors and outcomes among adolescents. Efforts to increase financial literacy and job-related skills, however, can offer youth from low-income households knowledge, skills, and opportunities otherwise unavailable to them. Targeted interventions that combine financial literacy and job-readiness components may help adolescents disrupt the cycle of intergenerational poverty by increasing economic awareness, adaptive financial behaviors, and work-related skills. Drawing on career construction and asset theory, the present study examined changes in financial knowledge and labor skills among youth from low-income households (N = 111) over the course of their participation in the Road to Success curriculum as well as how changes varied across demographic characteristics of participants. Data analysis included descriptive statistics, t-test analyses, and MANCOVA. Results indicated several improvements from Wave 1 to Wave 2 as students developed job-readiness and financial literacy knowledge. Potential educational and policy implications are discussed.

LEVELS OF FINANCIAL LITERACY IN TERMS OF THE ETHNICITY, GENDER, RELIGION AND LOCUS OF CONTROL OF COLLEGE STUDENTS

During the pandemic, people must be adept in managing their private finances. Good money management skills are determined by the individual’s financial literacy. This research has five purposes. The first is to describe the level of financial literacy of college students. The second is to evaluate and analyze the different levels of financial literacy in terms of ethnicity. The third is to evaluate and analyze the different levels of financial literacy in terms of gender. The fourth is to evaluate and analyze the different levels of financial literacy in terms of religion. The fifth is to evaluate and analyze the different levels of financial literacy in terms of locus of control. This research samples 212 respondents majoring in English teacher training and education in four private universities. Because of this, this research evaluates the T value on the following variables: ethnicity, gender, religion, and locus of control. This research reveals a difference of financial literacy skills in terms of gender and locus of control. No different levels of financial literacy were found in terms of ethnicity and religion. In the future, there needs to be an improvement of financial literacy through formal and informal efforts. Keywords: ethnicity, Gender, religion, locus of control, financial literacy

The forms of financial literacy overconfidence and their role in financial well‐being

AbstractOverconfidence in financial literacy (FL) is defined and assessed in various ways, and results regarding the effects of FL overconfidence on financial well‐being are inconsistent. Therefore, this study aims to develop our understanding of the processes by which overconfidence in FL influences the financial well‐being of consumers; that is to separately examine the effects of the different forms of FL overconfidence on financial well‐being. In order to map the associations between FL, the forms of FL overconfidence, and financial well‐being, the data of 506 randomly selected Hungarian test‐takers were collected by a self‐report questionnaire. According to the results, FL and its overestimation (OE) are positively linked to households' financial outcomes. Hence, perceived FL is a better predictor of financial well‐being than actual FL skills. Moreover, the results add to the existing body of literature by showing that the effects of the different forms of overconfidence are divergent: overprecision and OE may be damaging. Thus, the paper provides evidence that FL overconfidence is a multifaceted construct, and its different forms affect financial well‐being differently.

Financial literacy in Turkish preschool education

Financial literacy is one of the basic skills of the 21st-century. It is an important skill to survive in the complex economies of the modern era. It is better to develop financial literacy skills at early ages. This study aims to examine the current state of FL education in preschool education in Turkey. For this aim, in this qualitative study, the Turkish preschool education curriculum was examined and the interviews were conducted with 20 preschool teachers constituting the study group. The data collected from document analysis were subjected to descriptive analysis and the data collected by interviews were subjected to content analysis. Results of the study show that Turkish preschool education is not supportive of financial literacy both in terms of curriculum and the teachers. For a strong foundation of FL in Turkey, the Turkish preschool education curriculum should be revised and the preschool teachers must be supported in terms of the development of FL skills at early childhood.

‘My Sport Won’t Pay the Bills Forever’: High-Performance Athletes’ Need for Financial Literacy and Self-Management

This paper investigates high-performance athletes’ development of their financial literacy and self-management skills and the related organisational support available to them during their athletic careers. The data were collected from 20 retired high-performance athletes (10 male and 10 female) representing six different countries (Japan, Mexico, Portugal, Singapore, South Korea, and the UK). Thematic analysis was applied to the processing of the data and five themes emerged: (1) Funding battles: financial challenges and misjudgements; (2) Coping Strategies; (3) Support from sponsors, parents, and sport organisations; (4) Development of Financial Literacy; and (5) Life After Sport. The data indicates that athletes experienced financial challenges due to a lack of organisational support, reduced or terminated funding, and limited opportunities to access sponsorship. Typically, athletes developed their financial literacy and self-management skills by ‘self-help’ or ‘trial and error’. The findings contribute to both literature and practice by providing empirical evidence on the coping strategies adopted by athletes in order to overcome financial challenges and on the methods used in order to develop their financial literacy and self-management skills. These findings inform sport organisations and governing bodies to develop support schemes for high-performance athletes as well as deepen our knowledge of athletes’ career development and transitions focusing on the financial aspect.

Financial Literacy Education in Ontario: An Exploratory Study of Elementary Teachers' Perceptions, Attitudes, and Practices

Politicians are pushing school boards to do more to ensure students leave school with the financial literacy skills they will need to navigate an increasingly complex financial marketplace. Financial literacy education must start early to achieve this goal, yet there has been very little Canadian research on financial literacy education at the elementary level. This exploratory study used an anonymous, online survey to gain a preliminary understanding of full-time Ontario elementary teachers’ perceptions, attitudes, and practices with respect to financial literacy education. Respondents overwhelmingly favour teaching financial literacy in elementary school. Almost half of respondents currently incorporate financial literacy into their classroom practice. These teachers rely primarily on free, online resources. With respect to barriers to teaching financial literacy, respondents cited the lack of an appropriate curriculum and lack of support from schools and school boards. Respondents identified professional development as the main type of support they would like to see schools and school boards provide to support them in teaching financial literacy going forward.

Financial Literacy Education in Ontario: An Exploratory Study of Elementary Teachers’ Perceptions, Attitudes, and Practices

Politicians are pushing school boards to do more to ensure students leave school with the financial literacy skills they will need to navigate an increasingly complex financial marketplace. Financial literacy education must start early to achieve this goal, yet there has been very little Canadian research on financial literacy education at the elementary level. This exploratory study used an anonymous, online survey to gain a preliminary understanding of full-time Ontario elementary teachers’ perceptions, attitudes, and practices with respect to financial literacy education. Respondents overwhelmingly favour teaching financial literacy in elementary school. Almost half of respondents currently incorporate financial literacy into their classroom practice. These teachers rely primarily on free, online resources. With respect to barriers to teaching financial literacy, respondents cited the lack of an appropriate curriculum and lack of support from schools and school boards. Respondents identified professional development as the main type of support they would like to see schools and school boards provide to support them in teaching financial literacy going forward.
 
 Keywords: financial literacy, financial education, elementary teachers

"We Made Math!"

Black parents are often presumed to be uninvolved in their children’s education, especially in mathematics. These stereotypes are arguably sustained by White, middle-class expectations for parent engagement. This qualitative study challenges the dominant narrative by exploring the ways eight Black parents support their elementary-aged children’s mathematical identities. Although many scholars have examined the relationship between mathematics identity and academic outcomes, few have explored the role parents play in this identity development. Drawing on Martin’s (2000) mathematics identity framework and McCarthy Foubert’s (2019) Racial Realist Parent Engagement framework, the author argues that Black parents’ experiential knowledge of race and racism in mathematical spaces positions them to teach their children about the everyday importance and usefulness of mathematics. Using parent interviews and family observations, the author’s findings suggest the parents supported their children’s mathematics identities using four approaches: 1) pragmatic (emphasizing financial literacy and basic life skills), 2) aspirational (promoting math-intensive careers), 3) affirmational (sharing words of encouragement), and 4) race-conscious (applying mathematical concepts to lessons in Black history, culture, and anti-Blackness). Implications for educators are discussed, as parent identity support strategies may be useful for reform-oriented teachers seeking to foster positive mathematical identities in Black children.

Financial Literacy and Financial Performance of Small and Medium-sized Enterprises

"Research Aims: The study aims to examine the influence of financial literacy on the performance of small and medium-sized enterprises (SMEs) in Malaysia. Design/methodology/approach: The data were obtained from questionnaires distributed to 200 SME managers/owners. Multiple regression analysis was applied to test the influence of financial literacy on SMEs performance by controlling manager profile and SME-specific characteristics. Research Findings: Multiple regression results prove that financial literacy has a positive and significant impact on SMEs' performance. Managers/owners with financial literacy skills understand business-related financial concepts, including debt, savings, takaful, insurance, and investment, which ensure the good performance of their business. Theoretical Contribution/Originality: Similar research has been conducted outside Malaysia. However, there is a need to validate the financial literacy and SME performance relationship in the Malaysian environment due to differences in culture; ways of thinking; and legal, business, and political situations. These differences lead to different responses which then contribute to the way the effect of financial literacy on SME performance is explained. In addition, this study improves the consistency of the existing evidence on SME performance and expands the scope of the Resource-Based View (RBV) from the perspective of SMEs Research limitation & implications: Government agencies such as SME Corporation recognise the importance of financial literacy among entrepreneurs. Therefore, proactive efforts need to be accelerated to provide an adequate level of financial literacy among entrepreneurs. Furthermore, entrepreneurial finance can be introduced in formal and non-formal education to ensure that every layer of society enjoys the benefits regardless of their economic status."

Board Game “Making Financial Decisions” in the System of Teaching the Mathematical Foundations of Financial Literacy

The aim of this article is to present the theoretical model for the construction of tasks in improving financial literacy in algebra course at school and to submit the economic and mathematical game based on the developed model. At the state level, a number of important documents have been adopted on the formation of financial literacy of schoolchildren, various measures are being implemented to solve this problem. Despite this, today the tasks presented in the school mathematics course do not fully solve the issue of increasing the level of financial literacy. In the course of work on the creation of a theoretical model for Teaching mathematical foundations of financial literacy, an analysis of Russian textbooks on mathematics was carried out, federal regulations and international standards were studied. Our analysis allows us to assert that there are not enough tasks for the formation of financial literacy skills in the school course of mathematics. In addition, these tasks form initial knowledge in the financial sector. Also, the tasks are of the same type and often affect only two areas of handling finance. These are purchases and loans. Also, the tasks of the school mathematics course correspond only to the first level of the PISA standard. Thus, it became obvious that it was necessary to develop a theoretical model for the construction of tasks in improving financial literacy in algebra course at school according with the System (frame) financial capability for school age pupils and PISA diagnostic model.

Financial literacy in the Ohio K–2 classroom: a mixed methods study

ABSTRACT Financial literacy is a concept widely recognised in the middle and high school grade levels, but what does it mean to a primary elementary teacher? This study was a two-phase, mixed-methods research approach that explored Ohio’s kindergarten through second grade teachers’ perceptions regarding the curriculum and instruction of financial literacy. The findings indicated that K–2 teachers see value in teaching financial literacy concepts and skills in their classroom, but they are unsure of the expectations for implementation. Though teachers’ knowledge of financial literacy expectations is limited, teachers were still incorporating money concepts and skills into their classrooms by employing strategies they deemed appropriate. These results indicate a need to inform teachers about the written curriculum regarding financial literacy and ways that they can integrate the content into their current classroom practices.