Financial Literacy Research Articles

Technology and happiness: the association between online budget planner and financial satisfaction

PurposeThis study examines the impact of online budget planning platforms (e.g. Goodbudget, Mint) on households’ financial satisfaction. Furthermore, the authors identify the channels and the cross-sectional heterogeneity of this impact based on households’ income, financial literacy and minority groups.Design/methodology/approachThis study utilizes data from the National Financial Capability Study (NFCS) for 2018 and 2021, which encompasses over 50,000 households. The authors apply logit and ordered logit regression techniques to examine the research questions and use propensity score matching and entropy balancing to address potential sample selection bias.FindingsThe authors find a substantial correlation between the adoption of financial budgeting tools and a notable improvement in households’ financial satisfaction, driven by the promotion of healthy financial behaviors and enhanced financial self-efficacy. The empirical findings underscore that the positive effects of online budget planners are more pronounced among low-income, financially illiterate and Black households.Originality/valueThis study is the first to examine the impact of online budget planners on household financial satisfaction. It contributes to the literature by offering valuable insights into how these tools influence financial satisfaction within households.

Pengaruh financial technology dan literasi keuangan digital terhadap pengembangan UMKM di Fakultas Ekonomi dan Bisnis Universitas Sam Ratulangi Manado

This study aims to examine the influence of financial technology and digital financial literacy on the development of MSMEs at Sam Ratulangi University. This type of research is quantitative research using a descriptive approach. The sampling technique used was the random sampling method and produced 35 MSMEs as research samples from 50 MSMEs. By using data collection techniques using questionnaires. The data analysis technique in this study is multiple linear regression using the JAMOVI v2.23.28 program. The results of the study partially show that financial technology has a significant and negative effect on the development of MSMEs, digital financial literacy has a significant and positive effect and financial technology and digital financial literacy together have a significant and positive effect on the development of MSMEs at Sam Ratulangi University.

The Influence of Education, Lifestyle, and Financial Awareness in Increasing Generation Z's Financial Literacy in Islamic Stock Investment in Indonesia

<p>Salah satu bentuk investasi yang mengikuti perkembangan digitalisasi 4.0 adalah pasar modal, merupakan tempat bertemunya pembeli dan penjual obligasi, reksa dana, saham, dan instrumen lainnya yang di dalamnya terdapat sistem atau mekanisme untuk memfasilitasi perdagangan efek atau instrumen keuangan jangka panjang. Perkembangan investasi dalam pasar modal di Indonesia tidak hanya terbatas hanya konvensional saja, namun juga berkembang pasar modal syariah. Tujuan dilakukannya penelitian ini adalah untuk mengetahui tentang cara gen Z dapat meningkatkan literasi keuangannya pada investasi saham syariah, diantaranya melalui peningkatan pendidikan, gaya hidup yang lebih bijak, dan kesadaran keuangan yang lebih tinggi. Penelitian ini merupakan penelitian literature review, dimana diperoleh kesimpulan bahwa education, life style, dan financial awareness mampu meningkatkan financial literacy terutama pada gen Z karena ketiga variabel tersebut memililiki peran krusial dalam membantu meningkatkan literasi keuangan.</p>

The Nexus Between Financial Literacy and Saving Performance: Implications for Creating Self‐Financing Society

ABSTRACTMaking informed and effective savings decisions requires adequate knowledge and skills about saving products. This knowledge and skills are acquired through financial literacy (FL) training. Despite the existence of various local financial institutions and their efforts to encourage saving mobilization, domestic savings in many developing countries remain low due to low levels of FL. Using a nonrandomized, quasi‐experimental design method, with a sample of 328 saving and credit cooperatives (SACCOs) from Ethiopia, we investigated whether SACCOs providing FL for their education and Savings Committee members report improved saving performance than their counterparts not offering FL. We used administrative data and conducted our analysis at the institutional level. Our result from a combination of difference‐in‐difference and propensity score matching (DiD‐PSM) estimations reveals that FL training plays a decisive role in boosting SACCOs' saving performance. The DiD‐PSM result further shows, compared to controlled SACCOs, treated SACCOs have been successful in acquiring new net saver members and encouraging current members to increase their deposits. Besides, the implications of our findings for financial self‐reliance are discussed. To improve saving performance, policy initiatives promoting FL training in SACCOs are required.

A Study of Financial Literacy of Rajkot District, Gujarat, India

Since the independence of our country, there has been major focus on policy development and financial reforms. Financial inclusion has become a priority for both the central government and the RBI. For a nation to achieve financial inclusion effectively, the population should be financially literate. A review of existing literature in this field reveals that most studies have focused on three key variables, viz., financial literacy, financial development and economic growth. To contribute to this existing body of research, this paper explores the distinction between ‘financial literacy’ and ‘financial awareness’ to better understand what can truly drive ‘financial inclusion’ in the country. Primary data from 130 respondents was collected from the district of Rajkot, Gujarat, of which 100 respondents were taken into consideration, followed by statistical analysis of the data. The study concludes that gender makes a significant impact on financial literacy, where males showed higher financial literacy as compared to females. Further, age and education of the people makes a significant impact of financial literacy of the population, which in turn, will lead to financial inclusion. There do exist a marginal correlation between financial awareness and financial literacy (r=0.054).

The Effect of Financial Literacy on Village Government Business Performance

This study was conducted to study the impact of financial literacy and financial management on the performance of Village government businesses (Village-Owned Enterprises) located in Lobuk Village, Bluto District, Sumenep Regency. As a village economic institution, Village government plays a strategic role in improving the progress and prosperity of the community. The level of financial literacy and effective financial management are considered to be able to influence the operational success of Village government, especially in making strategic decisions, optimizing the use of funds, and increasing profits. This study adopted a descriptive quantitative method involving all administrators, employees, and tenants of Pelangi Nusantara Village government kiosks in Lobuk Village as the population and sample. There are three variables studied, two of which are independent variables, namely Financial Literacy (X1) and Financial Management (X2), while the dependent variable is Village government Business Performance (Y). Data analysts use several techniques including data quality testing, multiple regression analysis and determination coefficient testing. Hypothesis testing was conducted through t-test (partial) and F-test (simultaneous) with the help of IBM SPSS software version 25. The research findings revealed that financial literacy does not affect Village Government Business Performance, financial management has a significant positive effect on Village Government Business Performance, financial literacy and financial management have a significant effect simultaneously on Village Government business performance.

Pandemic-Era Trends in US Automatic Payment Adoption: A 2022 Behavioral Analysis

Introduction: This study analyses the adoption trends of automated payment methods among different racial groups in the United States during the COVID-19 pandemic in 2022. It investigates the correlations among financial literacy, risk attitudes, customer sentiment, and the adoption of automated payment mechanisms for bill settlements. Method: An analysis of responses from a diverse demographic is conducted using logistic regression on data from the 2022 Survey of Consumer Finance. This analysis investigates the trends associated with subjective and objective financial literacy, consumer sentiment as evaluated by economic perceptions, and risk attitudes among several generations, taking into account race as well. Results: Initial results suggest disparities in the degrees to which financial literacy, risk attitudes, and consumer sentiment are connected with adoption rates among various racial groups. The statistical analysis highlights disparities in the adoption of automated payments among different racial and ethnic groups. Discussion: The findings underscore the complex interplay among socio-economic status, behavioral variables, and technology adoption in the period after the pandemic. This methodology aligns with current scholarly works on behavioral finance, which emphasize the need to consider both individual psychological aspects and wider social impacts in the process of making financial decisions. By incorporating racial diversity into the research, the study provides a valuable understanding of how cultural and demographic factors interact with behavioral aspects in the particular setting of financial technology adoption during a time of substantial economic transformation.

Entrepreneurship Skills needed by Youths for Entry into Oil Palm Production for Self-Employment and Job Creation in Delta State, Nigeria

This study focused on entrepreneurship skills needed by youths for entry into oil palm production in Delta State. Three research questions and two hypotheses were formulated and tested at 0.05 level of significance. The population of the study was one thousand five hundred(1500) youth farmers located in the three (3) senatorial districts in Delta State. The study adopted the use of descriptive survey method. Data was analyzed using frequency distribution, percentages, mean and standard deviation. The findings revealed that more males are involved in oil palm production than females. Also, that the combination of agricultural expertise, business skills, adaptability, and networking can empower youths in Delta State, Nigeria, to engage in oil palm production for self-employment, even while balancing other jobs. Findings also showed that combination of processing knowledge, operational skills, quality control, safety measures, resource management, and environmental considerations are needed. Findings from the research revealed that youth entrepreneurs in oil palm production have strong understanding of agronomy, including soil management, pest control and crop maintenance. The study recommended that Delta State youths can benefit from entrepreneurial education through formal programs and vocational trainings, focusing on oil palm production and self-employment. Special loan schemes and financial literacy training was also recommended.

Impact of financial literacy and education on breast and cervical cancer screening participation in Japan.

Despite government efforts, the uptake of screening for breast and cervical cancers among Japanese women remains low. This study employs financial literacy and financial education as proxies for rational decision-making to explore their potential to enhance cancer screening practices in Japan. Using data from Osaka University's Preference Parameters Study, mean comparison tests and probit regression models are utilized to examine the association between breast and cervical cancer screening and financial literacy and financial education. The results of probit regression show that individuals with higher levels of financial education tend to participate in both breast and cervical cancer screening. In contrast, individuals with higher financial literacy are likely to participate in breast cancer screening, whereas no significant impact is observed for cervical cancer screening. Furthermore, our findings reveal that financial education positively influences both breast and cervical cancer screening. Factors such as employment, marriage, higher education, increased household income, and greater assets demonstrate robust positive relationships with breast and cervical cancer screening. Meanwhile, psychological factors including happiness, a myopic view of the future, anxiety about later life, and perceived health status have no significant associations, except for a positive association between anxiety about life and cervical cancer screening. Our study suggests the development of targeted educational programs that leverage financial literacy and financial education to raise awareness about the importance of breast and cervical cancer screening.

Mediating effect of self-control on financial literacy and savings behaviour of rural women entrepreneurs

Background: Savings behaviour is crucial for any economic and investment activity. The ability of rural enterprises to save is difficult because of their ignorance of the benefits of savings, low-income levels and inability to commit personal savings, which falls to certain factors that include financial literacy (financial knowledge, financial attitude) and self-control.Aim: The article aims to examine the mediating effect of self-control on financial literacy (financial knowledge, financial attitude) and savings behaviour of rural women entrepreneurs in Mokwa Local Government, Niger State, Nigeria.Setting: The population comprised 340 rural women trained by the Department of Commerce on financial literacy applications in the 11 wards of Mokwa Local Government. A total of 175 respondents were identified using the Krejcie and Morgan sample size table.Methods: Primary quantitative data were collected using structured questionnaires and analysed using partial least square (PLS) path modelling.Results: The empirical results revealed that financial knowledge and financial attitude exerted a positive effect on the savings behaviour of rural women entrepreneurs.Conclusion: The conclusion drawn from the study is that the financial literacy of rural women entrepreneurs is empirically related to how they save.Contribution: Based on the research findings, the study recommends that government agencies supervising and coordinating the activities of entrepreneurs like SMEDAN and also financial institutions like Microfinance Banks should facilitate flexible, understandable and acceptable programmes that will enlighten rural entrepreneurs on the importance of savings for investment and the nation at large.

Unraveling Youth Indebtedness in China: A Case Study Based on the “Debtors Avengers” Community on Douban

Over-indebtedness is an increasingly serious issue among young people in China. Using Atlas.ti, this study analyzes textual data from the online community “Debtors Avengers” on Douban.com, applying a combined framework of life cycle and credit liberalization hypotheses. The findings reveal that youth indebtedness is not solely driven by irrational consumer behavior but is closely linked to economic activities during specific life stages. Structurally, it reflects sociofinancial digitization and normalized credit use. Factors such as life circumstances, financial literacy, labor market instability, and public safety risks contribute to a “debt spiral”. Addressing these challenges requires the refinement of financial policies, enhanced education, and intervention in financial aggression.

Investigating the adoption of building information modeling of small-medium sized organizations in the construction industry: from a configuration perspective

ABSTRACT Building Information Modeling (BIM) is considered to be one of the most promising innovations in the construction industry, and the building industry is beginning to use and benefit from it. However, the full adoption of BIM in the construction industry is still challenging as small and medium-sized organizations (SMOs) are lagging in BIM adoption. Although existing studies have explored many influencing factors of BIM adoption, most of them are focused on a single relationship and cannot explain why certain factor that works for one organization fails in others. This study aims to respond to the research gap in previous studies on BIM adoption in SMOs by highlighting the importance of the combination of influencing factors rather than single correlations, thereby clarifying the realization mechanisms of BIM adoption in SMOs. Using the qualitative comparative analysis (QCA) approach and fsQCA3.0, this study connects the factors from technological, organizational, and environmental aspects under the technology-organization-environment (TOE) framework, five configurations leading to the high BIM adoption and two configurations leading to the low BIM adoption are identified with 36 SMO cases through the configurational lens. As one of the earliest attempts to investigate SMOs’ BIM adoption decisions using the QCA method, this study expects to offer a holistic understanding of BIM adoption in SMOs and contribute to the full BIM diffusion in the construction industry by providing valuable suggestions to industry practitioners. Highlights BIM adoption in SMOs results from a combination of technological, organizational, and environmental conditions, and no necessary conditions lead to BIM adoption behavior. More than one configuration is leading to high or low BIM adoption in SMOs. Under specific contexts, BIM capability can substitute for financial capability, while financial capability will substitute for government pressure. When conditions are missing on both the technological and organizational aspects, government or market pressure alone cannot lead to BIM adoption behavior in SMOs.

Consumer Awareness and Perception of Life Insurance: A Descriptive Analysis of Influencing Factors

This study investigates consumer perceptions of life insurance, examining the factors that influence individuals' attitudes, preferences, and decision-making processes. Despite the critical role of life insurance in financial planning, many consumers remain hesitant or misinformed about its benefits. Key findings indicate that while awareness of life insurance has increased, misperceptions and distrust still hinder its adoption. The study also highlights the role of financial literacy, brand reputation, and advisory services in shaping positive consumer perceptions. These insights underscore the need for more targeted, transparent, and informative marketing strategies by insurers to address consumer concerns and improve the overall appeal of life insurance products. The paper concludes with recommendations for insurers to build trust and tailor policies to meet the specific needs of diverse consumer groups.

Digital financial literacy and financial well-being – evidence from India

PurposeThis study aims to examine the influence of digital financial literacy (DFL) on the financial well-being (FWB) of students in Andhra Pradesh, specifically exploring the factors of impulsivity and self-control. Both DFL and FWB are treated as multi-dimensional constructs in the study. The research delves into the impact of DFL dimensions, viz. digital financial knowledge, digital financial experience and digital financial skills, on both impulsivity and self-control. Subsequently, the study assesses the effects of impulsivity and self-control on financial well-being.Design/methodology/approachTo gather data, a questionnaire-based survey method was employed, reaching 475 university students through purposive sampling. The study utilizes confirmatory factor analysis for scale validation and structural equation modeling for hypothesis testing.FindingsThe results reveal a significantly negative influence of digital financial knowledge (DFK), digital financial experience (DFE) and digital financial skills (DFS) on impulsivity, while demonstrating a significantly positive impact on self-control. Additionally, the study finds that impulsivity negatively affects financial well-being, whereas self-control has a positive impact. Focusing on higher education institutions in Andhra Pradesh, the research highlights students’ limited concern for long-term financial planning.Originality/valueThis study underscores the relevance of understanding the crucial role of digital financial literacy in enhancing their financial well-being. The implications of these research findings are substantial and can be utilized to shape educational programs for students in higher education institutions. Such programs can guide institutions in imparting knowledge and skills related to personal finance management, particularly in the context of the increasing digitalization of financial transactions.

Building Financial Wellness: Randomized Controlled Trial of a Financial Education and Support Intervention.

Many people receiving services for psychiatric disorders live on low incomes, navigate complex financial situations, and have limited economic security. The authors sought to determine whether a financial wellness intervention delivered virtually by peers would increase financial literacy, reduce economic strain, and improve financial competency. One hundred participants receiving services for psychiatric disorders were recruited from community programs and via social media and were randomly assigned (1:1) to receive either an intervention called Building Financial Wellness (N=51) or services as usual (N=49). The intervention involved six virtual 1.5-hour group sessions, followed by three virtual one-on-one booster sessions. Outcomes were assessed with the Consumer Financial Protection Bureau's Financial Well-Being Scale (primary), Financial Strain Questionnaire, Financial Capability Scale, and Financial Self-Sufficiency Scale. Knowledge regarding money management was measured with a financial literacy assessment based on class content. Intent-to-treat longitudinal multivariable analysis included random-effects linear and logistic regression models. Overall, 86% of the study participants either lived in poverty (46%) or met the federal definition of low income (40%). Participants assigned to the intervention had greater improvement over time in financial well-being, capability, strain, self-sufficiency, and literacy. Satisfaction with the intervention was high. Reports from participants receiving booster sessions indicated that ongoing support facilitated their achievement of longer-term financial goals. Provision of financial education and support improved monetary well-being, competence, and literacy. With poverty long considered to be an intractable problem associated with psychiatric disorders, peer-taught financial education focused on financial wellness can help people acquire money management skills and manage economic stressors.

Examining the Financial Literacy of Healthcare Professionals: A Research on a Provincial Health Directorate.

This research aimed to assess the financial literacy levels of healthcare professionals working at a Provincial Health Directorate and examine their relationships with various financial domains. The study utilized a cross-sectional online survey. The financial literacy scale was employed to assess the financial knowledge and compentencies of healthcare professionals, providing a structured evaluation of their understandig across various financial domains. Statistical analyses, including correlation analysis, independent samples t-test, and one-way ANOVA, were performed using SPSS-25 and R programs. A total of 240 participants took part, comprising 52.1% males and 47.9% females, aged between 20 and 65 years. Younger healthcare professionals (p=.017) and males (p=.001) demonstrated higher financial literacy levels. Significant correlations were found between financial literacy and domains such as investment instruments, debt and risk management, and personal finance management. Weak but positive relationships were observed between financial literacy and digital assets, indicating emerging trends in digital finance awareness. For instance, males exhibited higher proficiency in investment instruments and debt management, while younger professionals displayed higher knowledge in investment areas. The findings underscore the importance of targeted financial education for healthcare professionals, highlighting the need for sector-specific training programs. Enhanced financial literacy is essential for improving financial decision-making, ultimately benefiting both personal financial well-being and professional performance in the healthcare sector.

Financial behavior between male and female: a systematic literature review

Finance is an essential aspect of existence. Handling it is reflected in one’s financial behavior. Poor financial decisions have consequences, therefore it's critical for people of both genders, men and women, to be financially informed in making financial decisions. A synthesis of the differences in financial behavior between men and women is the aim of this systematic literature review. Twenty-seven papers (27) published papers between 2014 and 2024 were extracted from the database using the Preferred Reporting Items for Systematic Review (PRISMA) framework. The findings showed that, in comparison to women, men are more financially knowledgeable; they have a greater risk appetite than women, which allows then to take advantage of financial products and services. Contrarily, females with their risk aversion attitude, leaves them financially susceptible because it prevents them from taking advantage of financial products and services like optimizing the potential for money growth. In terms of spending, women are more conservative, and are price sensitive than men. The findings also indicates that women are more vulnerable to financial misconduct; yet, financial literacy will mitigate this risk. Therefore, programs for gender-sensitive financial education should be taken into consideration to close the gap in financial literacy and give women more power in making financial decisions. With this, it would promote financial inclusion and aid in the realization of Sustainable Development Goals (SDG) 5 and 10 or Gender Equality and Reduce inequalities respectively. Future studies may focus on how financial technology affects gendered financial behavior to promote more equal economic outcomes.

FACTORS INFLUENCING INVESTMENT DECISION-MAKING IN GENERATION Z

This study aims to provide empirical evidence about the factors that affect investment decision-making in generation Z. The sampling method used is a non-probability purposive sampling method with generation Z students as a research sample. The age range included in the category of generation Z students is those aged 18-26 years. The analysis method used is Partial Least Square (PLS). The results of the study show that financial literacy, attitude towards investment, and risk perception have a significant influence on investment decision-making among Generation Z students. Financial literacy and attitude towards investment have a positive effect, while risk perception has a negative effect on investment decisions. Although herding does not have a direct effect on investment decision-making, it does affect attitudes towards investment, which then influences investment decisions. This shows that the investment trends and investment decisions of others can shape students' investment attitudes, which ultimately influences their decision to invest. Technological advances and broad access to information, particularly through social media, seem to reduce the direct influence of herding but increase the role of influencers in shaping investment attitudes.

The Influence of Financial Literacy and Islamic Business Ethics on Investment in Islamic Financial Instruments: The Mediating Role of Risk Attitude and the Moderating Role of Religious Knowledge

Current challenges in the Islamic banking sector highlight the urgent need to understand the factors influencing ethical and informed investment decisions. This study aims to analyze the impact of financial literacy and Islamic business ethics on investment in Islamic financial instruments, focusing on the mediating role of risk attitude and the moderating role of religious knowledge. Data were collected through a primary method by distributing questionnaires to 300 bank customers and students in Aceh, Indonesia. The model employed is Structural Equation Modeling-Partial Least Squares (SEM-PLS) using Smart PLS software. The findings reveal that financial literacy significantly positively impacts investment decisions and risk attitudes. Islamic business ethics also significantly influence both investment decisions and risk attitudes. Religious knowledge positively affects investment decisions, while risk attitude has a positive impact on investments. However, the moderating effects of risk attitude and religious knowledge on investment are not significant. Risk attitude serves as a crucial mediator in the relationship between financial literacy and investment, as well as between Islamic business ethics and investment. The study underscores the importance of financial literacy, Islamic business ethics, religious knowledge, and risk attitude in shaping investment behavior in the Islamic finance sector, and highlights the need for integrating ethical practices to enhance investment outcomes.

Beyond the counter: unveiling the financial informality dynamics of female entrepreneurs in Lima’s Bodega sector

PurposeThis study examines the interrelations among educational level, financial literacy, financial inclusion and informal financial business practices of female entrepreneurs in Lima, Peru, focusing on their intentions toward business formalization. Additionally, it explores the influence of legal formalization on both business formality and tendencies toward informality intentions.Design/methodology/approachThe methodology involved a self-administered survey among 118 female entrepreneurs in the small vendor “Bodega” sector, with statistical analysis conducted via partial least structural equation modeling.FindingsThe study’s outcomes validated the significant role of financial literacy and inclusion as mediators between educational level and formalization intentions. Notably, legal formalization did not significantly alter these dynamics.Research limitations/implicationsLimitations arise from the study’s explanatory power and lack of predictive capability for all dependent variables, likely due to sample specificity. Additionally, the quantitative research approach does not allow for a deeper understanding of these phenomena.Practical implicationsWe advocate reevaluating prevailing attitudes toward legal formality and informal practices, emphasizing tailored public policies for older female entrepreneurs and access to formal financing independent of legal registration. This underscores the need for enhanced educational levels for young women and coordinated efforts among institutional actors to more effectively promote formality.Originality/valueThis research contributes original insights into the emphasis on informal practices over mere legal registration, especially pertinent to female entrepreneurship. It also highlights the counterintuitive significant inverse relationship between age and formalization intentions, enriching the discourse on entrepreneurial motivation.