Financial Literacy Research Articles

The role of managerial competencies in managing resources for sustainable development strategy in SMEs

Purpose Grounded in upper echelon (UE) theory, this study aims to examine the role of managerial competencies (business experience, financial literacy and digital literacy) in sustainable development strategy, with resource management as a mediator. Design/methodology/approach The empirical data collection is conducted through a survey completed by 297 top management teams of small and medium-sized enterprises (SMEs) operating in Pakistan. Structural equation modelling in Smart PLS is used to substantiate the hypotheses. Findings The findings reveal that financially and digitally literate managers significantly contribute to the sustainable development strategies of SMEs. However, experienced managers do not focus significantly on sustainable development strategies. Resource management partially mediates the nexus between financial literacy and sustainable development strategy, as well as between digital literacy and sustainable development strategy. In contrast, resource management does not mediate the nexus between business experience and sustainable development strategy. Research limitations/implications This study recommends that SMEs should prioritize managers with digital and financial literacy over those with experience. SMEs led by a management team with digital and financial literacy are more effective in resource management for sustainable development practices, whereas experienced managers may not significantly prioritize managing resources for sustainability. Originality/value While research based on the UE theory significantly contributes to the body of knowledge on sustainable development, the role of managerial competencies, particularly business experience, financial literacy and digital literacy, in sustainable development strategy via resource management is neglected. This research fills this gap in the context of UE theory and thereby enriches the literature.

Accounting as a social and moral practice: bridging cultures, balancing indigenous factors, and fostering social accountability

Purpose This study aims to investigate accounting practices within a non-Western (indigenous) context and provide insights into alternative accounting approaches and perspectives. Design/methodology/approach This study adopts an interpretive research approach to gain an in-depth insight into the functioning of accounting in Solomon Islands’ unique cultural and social-political context. In-depth interviews were conducted to gain insights into the perceptions and meanings held by participants concerning Western accounting practices and their limitations. Findings The findings provide unique insights into different interpretations of accounting and accountability through two distinct cultural lenses – Western and non-Western. The complimentary and rival explanations on what accounting and accountability are doing and what accounting and accountability should be doing will help close the gap in knowledge and contribute to shaping a better world for indigenous people. Practical implications Implications for practice involve fostering collaborative efforts among individuals, communities, leaders and institutions to harness cultural strengths through accounting. Additionally, continuous capacity building and education are essential to develop accounting skills, enhance financial literacy, promote professional expertise and build a pool of skilled accountants with local knowledge to support indigenous communities. Originality/value This study is original and provides novel insights supporting the need for accounting to recognise the importance of indigenous perspectives, adapt to cultural sensitivity and integrate cultural norms and values into accounting practices to make an impact and achieve greater social and moral accountability.

Technological Innovations and Financial Literacy: Navigating Digital Investment Platforms

Technological Innovations and Financial Literacy: Navigating Digital Investment Platforms

Unveiling Financial Literacy: Perspectives from Individuals and the Global Stage

Unveiling Financial Literacy: Perspectives from Individuals and the Global Stage

An Investigation of the Impact of Financial Literacy on Households’ Financial Well-Being: An Emerging Market Study

An Investigation of the Impact of Financial Literacy on Households’ Financial Well-Being: An Emerging Market Study

FINTECH SERVICE BUSINESS IN INDIA TREND AND PRACTICE -A THEORETICAL OUTLOOK

Fintech (Financial Technology) an advance payment-based technology is a growing service in India. With the introduction of number of innovative payment platforms that are alternative to cash transactions, people are motivated to choose best of best payment options. Fintech technology adoption rate in India is noticed as 87 per cent compared to 64 per cent of the world average. Growth of fintech services is influenced by number of factors like: nation having huge underserved financially excluded population, rising youth population, educated and rapid urbanisation, easily available of workforce, supportive Government policies and scope for raising capital for investments. Digital payments and fintech service market is expected to grow multi-fold in the near future, with active support from the user, Government and financial institution. The financial market is found be less matured and large number of people are still uncovered by various financial service, through enhancing their knowledge on easy and safe mode of payment either for physical or online shopping or for money transfer with support the fintech services to growth in India. KEY WORDS: Fintech Services, Digital Payment, Financial Literacy of Fintech Service

The welfare impact of financial inclusion: a research agenda

PurposeThis paper provides a systematic review of literature pertaining to the welfare impact of financial inclusion. We identify the 50 most influential publications in the field that have evolved into three distinct categories, each of which we critically review to identify the main contributions of this research area.Design/methodology/approachBy conducting a state-of-the-art literature review, this paper identifies the most influential papers in the research fields on the welfare impact of financial inclusion. One caveat is that as newer publications generally have fewer citations, reviewing prior work can result in a misleading account of emerging trends and research directions. Manual assessment of publications after 2018 facilitates a discussion of important emerging research trends and their directions.FindingsThe three key research streams are identified as financial services and financial accessibility, financial capability, and financial literacy and household welfare. By assessing publications from 2018 to 2023, we also document four key emerging research trends: Fintech and digital financial inclusion, sustainability and climate change, growth, poverty, income inequality, financial stability, and Entrepreneurship. Drawing on these emerging trends, we highlight the opportunities for future research.Research limitations/implicationsKeyword searches have limitations as some papers might be overlooked if they do not match the specific search criteria, despite their relation and significance to the overall topic of the welfare impact of financial inclusion. To address this issue, we have expanded this review by incorporating more literature from other databases, such as the Scopus database which may alleviate this issue.Practical implicationsThe three key research streams contribute to a comprehensive understanding of the welfare impact of financial inclusion. The emerging trends integrate existing knowledge and leave the chance for innovative research to expand the research frontier.Originality/valueThis paper fulfils the systematic literature review streams in the welfare impact of financial inclusion and provides fruitful opportunities for future research.

CONCEPTUAL STUDY OF FINANCIAL LITERACY AND FINANCIAL INCLUSION: AMONG THE MILLENNIAL’S

In an evolving period of tremendous technological advancement and intensifying global competitiveness, an economy and its citizens need to operate with awareness, adaptability, and alignment with changes and development in order to stand ahead of and thrive with the dynamics. In spite of conventional and foundational work, modernism's recent introduction and its various benefits are something that one ought to weigh. It turns into a drive for improvement to make things now better in order to achieve the future better. In order to this, Financial Literacy is something which assist to gain meaningful insight and leads to decide more rationally in managing the finance. Hence Relationship between financial literacy and financial inclusion among millennials is examined in this study. Millennials have particular financial opportunities and challenges because they are the first generation grown up in the digital era. This research examines how financial literacy affects the millennials use and access to financial services through an extensive literature reviews and qualitative analysis. It also looks at how educational initiative and technology supports financial inclusion and literacy. The result highlights the significance of focused training programs and digital platforms in boosting millennials financial capacities by pointing to a favourable association between financial inclusion and financial literacy levels. Policy makers, financial institutions and educators must comprehend these dynamics in order to create specialized plans that enable millennials to engage fully in the financial system and make wise financial decisions. Keywords: Financial Inclusion, Financial Literacy, Millennials, Financial Skill, Financial Decisions.

An Assessment of the Critical Success Factors of Microfinance Institutions (MFIs) in Lusaka, Zambia

This research focuses on the critical success and failure factors of microfinance institutions (MFIs) in Lusaka, Zambia, addressing a vital aspect of the financial landscape that impacts small businesses and low-income individuals. Despite the positive role of MFIs in providing financial assistance to entrepreneurs, recent closures of six institutions in Zambia underscore the need to understand the factors influencing their success or failure. The problem statement highlights the potential consequences of MFI closures, such as negative impacts on women, increased poverty levels, income inequality, child labor, and barriers to sustainable local economic development. Notably, the study aims to fill a research gap by assessing factors affecting MFIs' operations in Zambia, particularly those leading to closures, which the Bank of Zambia has not yet addressed or documented. The research objectives are clear and specific, intending to assess both critical failure factors from MFIs that have closed in Lusaka and critical success factors for the functioning of MFIs in the region. Additionally, the study aims to suggest measures to enhance the application of these critical success factors. Moving into the research methodology, an exploratory research design is chosen, providing a foundation for assessing the critical success factors of MFIs in Zambia. The mixed-method approach, incorporating qualitative and quantitative strategies, enhances the comprehensiveness of the study. The target population comprises 29 registered MFIs in Lusaka, and a one-stage cluster sampling technique is applied to select 10 MFIs with 60 key informants. The use of questionnaires for data collection, both open and closed-ended, facilitates the gathering of both qualitative and quantitative information. Ethical considerations are diligently addressed, ensuring informed consent, confidentiality, justice, anonymity, and protection from harm. In the discussion of findings, a demographic analysis reveals important characteristics of the respondent base, emphasizing the predominantly male representation and the prevalence of tertiary education among participants. Objective one focuses on assessing critical failure factors, with limited access to funding, operational efficiency, and limited financial literacy emerging as primary challenges. Objective two delves into critical success factors, highlighting financial stability, marketing strategies, technology adoption, and outreach to the underserved population as significant considerations. Objective three provides insights into measures employed by MFIs, such as technology integration, capacity building, customer-centric approaches, and risk management systems. The recommendations emphasize diversification of funding sources, tailored financial literacy initiatives, operational efficiency optimization, and enhanced community engagement to address identified challenges. In summary, this study contributes valuable insights into the dynamics of MFIs in Lusaka, offering practical recommendations for their sustained success and impact on local communities.

Framing the digitally capable university

The proliferation of “literacies” in educational discourse reflect a diverse array of interests, encompassing computer, information, technical, media literacies, and also forms like academic, financial, and health literacies. As digital literacies have become a concern for the higher education curriculum, there has been a tendency to define it as a practical type of operational know-how. This paper sets out a university-wide, holistic and critical approach that breaks from the legacy of institutional framings that narrow digital literacies to a set of skills or competencies. In developing a Digital Literacies Framework, La Trobe University articulated a shared understanding of digital literacies as the capabilities and attitudes that are needed by staff and students ‘in a digitally connected world’. This marks a shift from strategies that primarily deploy institutional curriculum mapping and measurement approaches; rather it argues for an institutional approach that requires collaboration and strategic engagement of students and academic and professional staff in order to meet goals related to building digital capability. The La Trobe Digital Literacies Framework takes a whole of university perspective that integrates policy and practice, providing a rationale for the critical importance of digital literacies in domains of life, work and learning, addressing an implicit ‘Why?’ question from staff and students. The University Library coordinated the Framework development. It was a scholarly undertaking that gathered evidence and reviewed international best practice. In this endeavour, the La Trobe University Library is a leader in the implementation of a university-wide strategy for digital literacies in Australia.

A Study of Financial Planning on Young Individuals in Delhi NCR

This research paper investigates the significance of financial planning for young individuals in achieving long-term financial security and stability. With the increasing complexity of the financial landscape and the challenges posed by economic uncertainties, effective financial planning is indispensable for the younger generation. The paper examines various strategies and tools available for young individuals to manage their finances prudently, including budgeting, saving, investing, and debt management. Additionally, it explores the role of financial education and literacy in empowering young people to make informed decisions about their finances. Through a comprehensive review of existing literature and case studies, this paper highlights the importance of early financial planning in building wealth, mitigating risks, and achieving financial goals. Furthermore, it discusses the potential barriers and challenges faced by young individuals in implementing financial plans, such as student loans, low income, and lack of knowledge. Finally, the paper offers practical recommendations and actionable insights for young individuals to enhance their financial well-being and lay a strong foundation for a secure financial future. Monetary items function as a venture route, providing the financial supporters with the predefined monetary security and upholding the monetary items' gamble return profile. In the past traditionally, In India, banks (credit and store accounts), the Life Insurance Corporation (LIC), and the Post Office (repeating shop, National Saving Certificate, Kisan Vikas Patra) all displayed financial products. However, in recent times, as the financial services sector has advanced, new financial products have been introduced, including common stocks, shares, subordinates, annuity plans, children's education plans, life and non-extra security plans (Unit Linked Investment Plans, or ULIPs), common assets, and shares. Each person behaves differently when contributing, therefore each has a different predisposition towards speculation. A private person's investment behavior is influenced by his own circumstances. With the presumption of producing yields people invest in a few financial goods with the hope of earning sizable returns over time and with varying degrees of risk. The goal of the current analysis is to examine how salaried individuals speculate about financial goods that are supported by various segment elements.

Management of innovation and technology to guide financial education for guayaquil families

The work presented addresses the field of financial education and its necessity, starting from the identification of gaps within the surveyed population among families in the city of Guayaquil. There is a significant demand among young adults and those with lower incomes, indicating the urgency to provide tools and resources to improve personal financial management. Additionally, the widespread preference for interactive learning methods, such as applications and games, underscores the need to integrate technology and innovative approaches into financial education programs to increase participation and engagement. The diversity in educational and socioeconomic levels within the sample emphasizes the importance of designing programs that are accessible and adaptable to different demographic profiles, which implies offering a variety of resources and learning modalities to meet the individual needs of the population. Lastly, the low prior participation in financial education programs highlights the need to increase awareness and promotion of these programs among the population, involving implementing effective dissemination strategies to inform people about the availability and benefits of financial education. Taken together, these findings support the importance of developing financial education programs that are accessible, innovative, and tailored to the needs of the target population, in order to promote greater financial literacy and contribute to overall economic well-being.

Financial Education in Malaysian Primary Schools Curriculum

Statistics from the Insolvency Department of Malaysia (IDM), (2020) have stated that a total of 84,805 individuals have been declared bankrupt in the five years from 2015 to December 2019. Malaysian Ministry of Education (MOE) is responsible for developing young people who are financially literate and smart in managing personal finances through the Strategy initiative National Financial Literacy 2019-2023. In line with efforts to instill good values from a young age, MOE has integrated elements of Financial Education in the school curriculum gradually, systematically, and comprehensively since 2014. Financial Education contents were explicitly written in primary school Mathematics Standard-Based Curriculum and Assessment Document (DSKP).

Integrating financial literacy, regulatory technology, and decentralized finance: A new paradigm in Fintech evolution

This study investigates the implications of the interaction of financial literacy, regulatory technology, and decentralized finance applications for financial sector development. A two-step analytical regression approach on EViews 10 was used, which performs a one-factor analysis for each variable to identify the individual impact of each factor. A linear FMOLS approach was used to evaluate the cooperative effect of integration. The methodology was implemented on a dataset comprising 2,880 observations from 23 financial institutions in Jordan.The findings support the hypothesized dynamic interrelations between the essential Fintech factors relevant to the sustainable development of the financial sector, including significant and insignificant factors with the impact of inflation, which provides an adequate understanding of Fintech’s evolution. Additionally, the outcomes consider post-2017 regulatory changes that reflect the role of supervision and regulation for the financial sector’s flexibility and efficiency. Therefore, the results reveal the essential contribution of integrating decentralized finance applications, financial literacy, and regulatory technology to the development of Jordan’s financial sector. Financial literacy serves as a facilitator, regulatory technology is a compliance enabler, and decentralized finance applications are driving forces of innovation and financial inclusion, ensuring a robust and sustainable financial ecosystem. It is shown that the interaction of factors forces the sector’s development, reflecting the world’s trend in digital inclusion and viable financial development.

Using Excel to Teach Agri-business and Financial Literacy Concepts to 4-H Youth

Teaching youth agribusiness subject matter and financial literacy through 4-H livestock projects is an important task. This article discusses using Excel as a record keeping tool to expand knowledge and comprehension of financial concepts and profitability in the beef industry. A description of the Excel record book contents and parent feedback is presented. Using the Excel record book expanded conversations about the beef industry and proved to be a favorable tool for increasing youth understanding of critical agribusiness concepts.

СОВРЕМЕННЫЕ ПОДХОДЫ К ТРАНСФОРМАЦИИ ПОТРЕБИТЕЛЬСКОГО ПОВЕДЕНИЯ РАБОТНИКОВ УГОЛЬНОЙ ОТРАСЛИ НА РЫНКЕ МЕДИЦИНСКИХ И ФАРМАЦЕВТИЧЕСКИХ ТОВАРОВ И УСЛУГ

In modern conditions, for pharmacy, as an integral part of healthcare, new concepts and technologies of pharmaceutical services and, in general, pharmaceutical care, aimed at consumers of medicines of different categories and professional groups, have become a powerful incentive for further development. Important importance in working with consumers of medical and pharmaceutical goods and services is attached to marketing research of consumer behavior; the study of preferences in the selection of goods factors influencing the decision to purchase. Of particular importance is the consumer behavior of modern pharmacy customers, which is changing due to an imbalance between the state of the pharmacy system's customer base and existing methods of customer counseling. There is a need to focus on different segments of consumers, each of which requires specific client technologies that contribute to the transformation of consumer behavior from "standard" to individual, corresponding to the status, mentality, financial capabilities, level of information literacy, typology of the buyer. Studying the assessments and opinions of respondents helps to identify patterns in consumer behavior and makes it possible to develop a more thoughtful strategy for information and advisory work with employees of the coal industry, paying special attention to issues of pharmaceutical consulting, information, attentive service, the use of new forms and methods of work that would increase consumer interest in purchasing effective and safe medicines. The consumer's decision-making process is considered, as a rule, as part of the following stages: consumer awareness of the problem, information search, evaluation and selection of purchase alternatives, purchase, use of purchase and evaluation of the solution. The factors of consumer behavior or purchasing decisions in relation to the buyer are conditionally divided into internal and external. Pharmaceutical organizations that sell medicines seek to influence consumer behavior by building their activities based on the concept of marketing. Knowledge of the basics of marketing is necessary to manage consumer behavior in the market.

Women Investors and Financial Literacy in Nepal

Abstract Financial literacy refers to the ability to understand how money operates. The primary objective of this study is to investigate the factors influencing financial literacy among Nepalese women investors. The study aims to explore how financial attitudes, financial behaviors, subjective norms, intentions toward investment, and knowledge about investment products affect financial literacy among Nepalese women investors. Employing a descriptive and exploratory research design, this study considers all women who are investors in NEPSE as the population of interest. Among these women investors, a sample of 372 was randomly selected after preliminary observations were conducted to identify potential respondents. Data was collected through a set of questionnaires distributed to the respondents. The study revealed significant positive correlations among financial attitudes, financial behaviors, subjective norms, intentions toward investment, and knowledge about investment products as independent and financial literacy as dependent variable under study. Additionally, the regression analysis showed that financial attitudes, financial behaviors, subjective norms, intentions toward investment, and knowledge about investment products had a significant positive impact on financial literacy among Nepalese women investors.

Determinants Affecting Life Insurance Purchase Decision at Jhapa District

This paper aims to investigate the effect of determining factors like Customer Attitude, Insurance Awareness, Financial Literacy and Social Factor on purchase decision of life insurance policy in Jhapa district of Nepal. Primary data have been collected through structured questionnaire using online method i.e. Google Forms out of 384 life insurance policy holders resident of Jhapa district of Nepal. A descriptive Research and causal comparative design was used and sample was selected by purposive sampling method. Smart PLS 4 is used as a data analysis tool and various tests like descriptive analysis, Measurement Model Assessment, Convergent Validity and Discriminant Validity, Model Fit Assessment, Structural Model Assessment and Importance-Performance Map Analysis (IMPA) tests were conducted as analysis tool to assess the quantitative raw data. The study concludes that Customer Attitude, Financial Literacy, and Insurance Awareness has significant effect with the purchase decision of life insurance policy whereas Social Factor has no significant effect with the purchase decision of life insurance policy. Financial Literacy has the highest influence over purchase decision of life insurance. Thus, the marketers, policymakers and insurance companies must pay more attention in bringing more effective and fruitful programs to enhance the life insurance demand.

‘Getting addicted to it and losing a lot of money… it’s just like a hole.’ A grounded theory model of how social determinants shape adolescents’ choices to not gamble

BackgroundGambling abstinence when underage lowers the risk of harmful gambling in later life. However, little research has examined why many young people refrain from gambling, even though this knowledge can inform protective strategies and lower risk factors to reduce underage gambling and subsequent harm. This study draws on the lived experience of adolescent non-gamblers to explore how social determinants while growing up have shaped their reasons and choices to not gamble.MethodsFourteen Australian non-gamblers, aged 12–17 years, participated in an in-depth individual interview (4 girls, 3 boys) or online community (4 girls, 3 boys). Questions in each condition differed, but both explored participants’ gambling-related experiences while growing up, including exposure, attitudes and behaviours of parents and peers, advertising, simulated gambling and motivations for not gambling. The analysis used adaptive grounded theory methods.ResultsThe grounded theory model identifies several reasons for not gambling, including not being interested, being below the legal gambling age, discouragement from parent and peers, concern about gambling addiction and harm, not wanting to risk money on a low chance of winning, and moral objections. These reasons were underpinned by several social determinants, including individual, parental, peer and environmental factors that can interact to deter young people from underage gambling. Key protective factors were parental role modelling and guidance, friendship groups who avoided gambling, critical thinking, rational gambling beliefs, financial literacy and having other hobbies and interests.ConclusionsChoices to not gamble emanated from multiple layers of influence, implying that multi-layered interventions, aligned with a public health response, are needed to deter underage gambling. At the environmental level, better age-gating for monetary and simulated gambling, countering cultural pressures, and less exposure to promotional gambling messages, may assist young people to resist these influences. Interventions that support parents to provide appropriate role modelling and guidance for their children are also important. Youth education could include cautionary tales from people with lived experience of gambling harm, and education to increase young people’s financial literacy, ability to recognise marketing tactics, awareness of the risks and harms of gambling, and how to resist peer and other normalising gambling influences.

Exploring the interplay of financial literacy and financial well-being: Insights and strategies for augmenting overall financial satisfaction

This study investigates how financial literacy affects the financial health of Saudi Arabian banking industry workers in Saudi Arabia. The study uses a sample of 183 individuals and a comprehensive framework that includes components like financial behaviour, risk management, financial planning, financial knowledge, financial confidence, financial communication, and overall financial pleasure. The study finds strong positive correlations between many aspects of financial well-being and financial literacy through correlation and regression analysis. Notably, risk management, financial behaviour, overall financial contentment, and financial confidence are all positively impacted by financial literacy. The results underscore the multifaceted character of financial well-being and underscore the critical function of financial literacy in moulding favourable financial consequences. Furthermore, the study pinpoints particular domains in which focused financial literacy initiatives might be executed to augment the general financial welfare of banking industry staff members. The study sheds light on the relationship between financial literacy and well-being in a particular occupational context, which is significant information for both the academic and practical domains. The banking industry needs customized financial education programs because of the social and management ramifications. These programs will help the community’s overall financial health in addition to providing benefits to individual employees. In its conclusion, the study makes recommendations for other research directions, such as longitudinal studies and examinations of the function of digital financial literacy in the changing banking environment.